A single service drop (two hot legs and a neutral) go into the meter housing. Two separate sets of service entrance conductors come out of the meter and both enter this service panel. One set powers the supply bus bar through a 200 amp disconnect, the other powers a 125 amp disconnect that controls a panel located somewhere else in the home. The 200amp disconnect does not shut off power to the 125amp disconnect and the panel it controls. That’s OK?
The 125amp disconnect is not electrically connected to anything in this panel. Basically the two panels are configured the same, except that the 125amp disconnect has been moved to this panel, the smaller amperage panel has a floating neutral, and no grounding electrode.
I imagine there are minimum gauge requirements on the conductors connecting the neutral and grounding bus bars in the sub-panel to the neutral and grounding bus bars in the service panel? 6AWG?