Residential service entrance cable and grounding when using meter socket with main disconnect

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jbradley2093

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Location
Mid-Michigan
Occupation
Real Estate Investor
Relevant information:
- 75 year old house being rehabbed with complete rewire
- 100a service
- Meter with disconnect will be mounted to exterior of the residence

The reason for this configuration is that the panel will be on the opposite side of the house as the meter. There is no other option (I could explain, but won't waste your time reading info that does not matter).

It is my understanding that the grounding rods should be near and connected to the meter/main disconnect as its the first point of disconnect, and not at the panel.

Assuming all of the above, does the service entrance cable from the meter socket/main disconnect to the inside panel need to be 3 or 4 conductor? My electrician said we will use (SE-U 2-2-2), but it did not sound correct to me. Don't we need a separate ground wire connecting the earth ground outside to the inside panel, separate from the neutral?
 
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