Electrical Panel service lines?

It is an interior panel with a main breaker, but there is also a shut off outside, next to the meter. The inside panel has the normal single phase... two hots, one neutral and one ground. The outside shut off has an additional hot wire marked with red tape. It is smaller than the 4/0 al of the two main hot lines, maybe 2/0 al. What is the purpose of this third hot line? Is it ok that it is not continued into the interior panel? Inside the shut off box, the three hot lines from the meter are on top, then there is a cylinder shaped fuse marked 150 amps under each. The two main hot lines are continued into the house.

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