If his entire facility needs 3 phase and he has a 25HP motor, he needs to get 3 phase power. But he probably found out that with 3 phase power comes a demand meter, which will usually result in additional energy costs to him. So he is attempting to remain on a single phase light commercial service with no demand metering. But utilities only provide that type of service to residential customers and the smallest of commercial users, such as stores and small offices that don't have large machinery, because the overall net effect of those is relatively small enough for them to manage. Once a user goes over a certain threshold of power use, they need to know what the demand is and they want to get reimbursed for the associated cost of providing it. A very common way of detecting that change in use is when a customer requires 3 phase power. Phase converters thwart that to a certain extent, but for the most part, they are small and inconsequential. He is using a 30HP phase converter, they are saying no way.
Utilities have rules, he is trying to circumvent them, they know it, they are not cooperating. He is forgetting though that they have the power, Literally.