Re: Disconnect
We require cold sequence only in our networked area where the available fault current can easily exceed 100,000 amperes. In all other areas, we require hot sequence to discourage tampering. I imagine the electric utility has had a bad experience with a meter and now requires cold sequence for the safety of the service linemen.
As long as the disconnect is under the exclusive control of the electric utility, it is not considered service equipment and falls under 90.2(B)(5). If the previous statement is not true, OC protection is to be provided and that becomes the service equipment unless local rules prevail.
BTW, the OC protection provided by the electric utility is not to protect the transformer, the secondary, the service drop or lateral, or the service entrance conductors. The OC protection is sized to protect the primary line that feeds the transformer. We do not want to lose a transformer but we care more about the primary line and do not want any service interruptions. Do not depend on the electric utility to protect anything at the service . . . ever.