The building which contains our offices and shops is served by a 1200 amp 120/208 wye service. We are going to install a 300 KW standby generator to pick up the entire building. 2 years of demand and KW readings verifies our load doesn't exceed 210 KW (about 580 amps) so the 300 KW generator should be fine. My plan is to install an 800 amp service rated fused disconnect between the utility transformer and the ATS switch. The generator also has an 800 amp overcurrent device which will feed the other side of the transfer switch. I am planning on paralleling 3-300 MCM Aluminum conductors from the generator and transformer to the ATS as well as from the ATS to the building service. The one issue that I wonder about is the 1200 amp disconnect on the building service (which I plan to convert to 4 wire). Do you see any issue with the existing OC device remaining at 1200 amp? Although leaving the 1200 in place might be confusing, it appears all conductors and equipment will be adequately protected. Changing out this OC device would probably be around $5000 so I am trying to avoid that. Any thoughts?
(A) I'd leave the Utility to Main CB alone--someday you (or a future owner) might want the full 1200A capacity. Instead, install the new 800A OCPD after the 1200A and before the ATS. No utility disconnection or reconnection need to be scheduled. Feeder from the 1200A to the 800A can be sized at 800A (no less than the full 800A) if it's 25 feet or less. You should be using 300KCMIL CU, not aluminum, to get the 800A rating.
(B) Definitely check the starting currents of all motors in the building. If all AC's are 5 Ton or smaller compressors (or multi-stage staggered start), and no other large motors are present, you should be OK with a 300KW genset. But look out for bigger motors--you may be suprised at what a 7.5 or 10HP motor will do (at 208V) to destabilize your genset at startup. Also, remember that motors running at time of loss of power will start back up simultaneously upon the generator making power available (you can add timed delay relays to stagger the starting of larger motors). Also, buy the best (electronic) governor and voltage regulator offered by the genset mfg.
(C) If not sure, wire up the new ATS and cable in a rental 300KW genset and do an outage on the hottest day of the year (right about now). $$$ but less expensive that upsizing later.