Yes the utility would do the trans. thing if the customer wants to pay for it.
I had another thought on the subject. What about te utility overhead line supplying the service. They just run a # 4 solid aluminum that could go for a thousand feet to the transformer with seven other houses attached to it. I know its in free air, but the rules of VD should still apply. The reason I say that is the customer may op to let the utility set a couple poles to reduce his cost, Whats the diference if I go the extra 400 feet with a 2/0 copper or let the utility run a #4 aluminum?