Here is a Email I got from Jim Pauley form CMP 2 today.
Hi Chris:
I am pretty familiar with this issue. The text is saying that you basically apply the 125% factor to determine the minimum conductor size (taking the terminations in 110.14 into account). The application of adjustment factors can take into account the higher insulation ratings, etc if applicable.
Quick example:
200A continuous load ? I need a conductor that has an ampacity of 250A minimum (210.19(A) ? also need a 250A OCPD by 210.20(A)), . So a 250 kcmil would meet that requirement at 75C. In no case with the conductor be smaller than a 250 kcmil.
Now if I need to adjust for conduit fill, ambient, etc. ? then I can do that from the 90C column if applicable. That may mean I need conductor larger than 250 kcmil, but it can never get smaller. When I do apply the factors, I am looking at meeting two criteria ? can I carry the load (which is 200A)? and Am I protected by the overcurrent device (which is a 250A device)? So if I derate and get to say, 230A, then I am OK ? I can carry 200A and I can round up to a 250A OCP. If I derate and came up with 220A, then I need a larger conductor because I can only go to 225A on the OCP.
The mistake folks seem to make is attempting to derate and land at the 250A number rather than looking at the OCP and the load.
When I wrote the rule originally, I used the words ?without the application of any adjustment or correction factors?. During the next code cycle, there was a couple of proposals that changed it to ?before the application?? because they read ?without? to say you could skip the adjustments completely. I argued that folks would read ?before? and attempt to apply all of the factors in sequence. I lost the battle at the panel (but appear to have predicted correctly that it would be read wrong?J)
Jim Pauley