This link was written by Jim Pauley from Square D who happens to be on CMP 2 which deals with article 210 and 215.
http://www.squared.com/us/products/gendoc.nsf/07a0210021262d45862564b5006e4f84/ee5709d4e2de1823852565de0058e80b/$FILE/0110HO9503.pdf
Based on the information in the 96 ROC and this article along with this link
http://www.nfpa.org/assets/files/AboutTheCodes/70/70-A2010-ROP.pdf
to the 2011 ROP page 153, proposal 2-195
I believe this is enough proof that the minimum size wire for this installation would be a #1 THHN conductor protected by a 125 amp OCPD. The ROP and ROC allow us to understand the intent of the code.
In the past I would have thought the minimum size conductor would have been a 1/0 but with this info I have changed my mind.
Thanks for the additional references. I teach a NEC class to Industrial Maintenance students at York Technical College in Rock Hill, SC. Sizing conductors can be one of the most challenging topics to explain clearly since adjusted ampacity and OCP selection both factor in.
Looking at the 2011 ROP, page 153, 2-195, I find that I will have to revise my answer
to 1/0 THHN. According to "2-195" wording, the adjustied ampacity for #1 THHN =
150A * .80 = 120A, which is less than 125% of continuous load, and could not be used.
Using 1/0 THHN = 170A * .80 = 136A, which is "not less than" 125% of continuous load.
It seems that the "adjusted ampacity not less than 125% of continuous load" will always
be larger than the "maximum load to be served", which in our example would be the
continuous load of 100A. The "and" between these two conditions means we have to meet both conditions and will require us to take the larger value. The "load to be served"
seems to be a non-issue.
Thanks again for the good discussion.