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I wouldn't see it as a big deal and I'd do the splice over with SC 80 conduit bit as well. Way not worth all the trouble of possibly pulling the old conduit up and back into the can. The local power company probably will not fix this on your property. They may, however, disconnect the line so that you could pull the conduit up where it belongs if you don't want to go the route of splicing over it.
BTW, the home inspector missed the not being allowed to have phone interface attached to conduit... I'd remind him of that. NEC 300.11 (B)
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