Mis-matched transformer/panel -or not?

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An electrical contractor on a job I'm working on was asked to provide a 480 delta 120/208 Wye 150 KVA dry type transformer & a 400Amp 42 circuit distribution panel. He is planning on using 500kcmil's on the secondary side of the transformer to feed the panel which is MLO. The panel is located less than 10ft from the transformer. After searching on-line I found a Mike Holt article Titled: Transformer Installation made easy -sort of. In the example given, one of the transformers was a 480 delta 120/208 Wye 112.5 KVA. After performing the various sizing & rating steps a conductor size of 700kcmil?s was determined. This alarmed me because we have a 150KVA transformer which I think would have larger conductors if the transformer & load were matched correctly.If the electrical contractor raised the size of the conductors to 700kcmil?s and provided a 400 amp OCPD on the secondary side of the transformer would this be a acceptable installation? The example in the article is almost an exact match except the transformer we have on site is larger.

Thank you in advance.
 
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