The reason you feel they "undersized" the conducts is because the utility co goes by different ratings then we do.
Our ratings come from NEC, they are not governed by NEC.
My helpers father is a line super-intent for the power co down here and this is as he explained it to me.
Commonly they will only run 2/0 for a 200amp service. I think he might only be thinking of a service drop due to it can dissipate heat very effectivly but what he says.
However the other local power co runs 4/0 for 200amp service go figure.
