From the view in the picture on the left, this electrical service connection appears normal. Imagine that from the ground it would appear to be just fine.
Upon closer inspection, here is what Nathan found: The sheathing on the energized wires was cracked and deteriorated and could easily arc to the grounded weatherhead, posing a shock and fire hazard.
Earth to wood contact where the wood siding product is installed without proper clearance. Direct contact with the ground has allowed termites to colonize in this area of the home.
The photo on the left shows live subterranean termites that have colonized wood debris left in a crawl space.
The photo on the right was taken at a different location but is a closer look at live subterranean termites. Notice the white fungal growth which, along with the presence of the live termites, also indicates excessive moisture conditions.
Both photos show subterranean termite shelter tubes. Shelter tubes are structures that the termites build when they move from one place to another in order to avoid air and sunlight that would kill them.