'66
Find yoursaelf another inspector. I think you live & work too far from me for me to help you.
If your inspector cannot cite a specific reference, he may be blowing smoke.
As far as grandfathering is concerned, if conditions have changed since the original installation (water heater conflict), bring it up to code. If it didn't meet code to begin with (sometimes hard to know what was in the NEC 30 or 40 years ago) bring it up to code. Basically, if it isn't safe, just being in place & in use is no excuse, bring it up to code.
By the way, the inspection that is required by Allegheny Power ends at the service disconnect or the main disconnect inside a mobile or modular home or the sub panel in a stucture if the service disconnect is located outside. Anything inside the service panel is fair game, anything past it is off limits unless the homeowner is paying the inspector to look at the entire installation.
Your inspector has no authority to require upgrades on any of the items you mentioned.
Tom
