You are correct if this is a house and it is the service entrance,
but Norcal seems to think this is commercial. I'm not sure why. BTW, you have a typo.
Could you explain the "125 amp 60*/75*, please. That writing found on the termination device, I assume, is typical electrical equipment pitiful specifications. Why is everything having to do with electrical such low quality ****? At least when compared to other fields.
In the example I gave above using 75 degree terminations I found that 2 AWG is also fine for 125 amp feeder circuits when using the next size up rule for breakers. But Norcal states that 1 AWG is required.
I don't do this for a living but I did stay at a Holiday Inn Express last night.