BUG #7616: -E parameter doesn't override template values.

The following bug has been logged on the website:

Bug reference: 7616
Logged by: Ohad
Email address: obasan@redhat.com
PostgreSQL version: 9.2.1
Operating system: Fedora 18
Description:

My template1 encoding is ASCII
I"m trying to use "createdb" with -E parameter to create a UTF-8 and I'm
getting an error message that the encoding I've chosen does not match the
template's encoding
if the template's encoding can't be overridden - what's the purpose of the
parameter?
thanks