I had a conversation with another local contractor regarding the use of 4/0 4/0 2/0 AL USE.(3 Conductor Cable) for 200A residential services. Seems that he has been installing this cable for some time even in dwellings where there are no 240V appliances except for central air. I told him that to my understanding it was a code violation and that the grounded conductor had to be the same size as the ungrounded ones. He said that as long as there was any 240V load it could be derated 30%. He claims that it has never once been questioned.The whole conversation started when he stopped by a new house I was roughing in and noticed I use CU THHN and asked why I was doing my services the "expensive" way. I have used AL cable in the past but it was always 4/0 4/0 4/0. Am I wrong on this one?