I have a customer that has an existing 200 amp fused disconnect and below that is a distribution box that feeds a 200 amp service in his house and a 150 amp service for his shed. He wants the fused disconnect replaced with a 200 amp service rated transfer switch. The 200 amp breaker in the transfer switch will feed the 200 amp house service and the 150 amp shed service. It's mounted on the shed and the conductors that feed the shed service are probably 7 feet long going into the 150 amp panel. Is it legal to tap off of a 200 amp fused service with a 150 amp service for his shed or would he need to upgrade the shed to a 200 amp service?