One thing I would like to clear up that has had me confused reading over some of these threads is lets be clear that when we are talking about 230.40 ex #1, there is one service. Each occupancy is getting a set of service entrance conductors not a service. We could have one building, one service, eight occupancies EACH with up to 6 disconnects (at the terminus of the service entrance conductors in each occupancy). Kwired, I do agree that if you have separate occupancies you may also meet the requirements for separate buildings, however I ran in to this before and my utility would not provide a second service to the structure, and it was a can of worms with all sorts of zoning implications to get the structure split up into two "buildings" legally. I do also agree with you that the as shown in the graphic would not be compliant because there are feeders run to each occupancy not service entrance conductors. I am not entirely sure what the intent of the code writers was, but it does seem goofy to me that you can have, say, 8 disconnects scattered around the building but you cant have 8 grouped in one location. Perhaps they were thinking along the lines of what Kwired was talking about: the different occupancies potentially also making it different buildings. Perhaps they figured that if they were different "buildings" then each "building" COULD have its own service, so they might as well put an exception so that the whole structure could be fed with one service since it would be just about the same thing just with less service drops.....