While I dont think it was a good idea either, but I sort of see the reason for the code change.
Question:
does the generator have to be sized to the entire house, or sized to whatever is on the load side of the ATS? For example, can I have a 200a service with two 100a subpanels. One is behind an ATS and the other is not. Can the generator be sized for the entire load on the ATS panel?
Yes, as long as it is sized for the caculated load on the panel the ATS feeds.
I some what agree with the code change as having an ATS switching into a load over the generators rating will only cause more problems with the generator tripping back out, or causing damage to it, if the OCPD doesn't trip (which I have had happened more then once)
But there are some loads that should not have been required to be used in this caculation.
any load that does not automaticly come back on when the generator comes online, such as electronicly controled ovens, micro-waves.
the requirment to use the full rating of a recessed light when the owners use CFL's and are instructed to such.
to me any load that does not return to the "on" state when power is restored, is a self load shedding load, and should not be required to be included in the caculation.
As far as selling whole house system's, we install more of these then any other type, our punch line is this, after they pay for the labor of us sorting out which loads they want to place upon the generator, installing a smaller ATS, or using one of those ATS/panel combos, they can afford having the whole house powered for just a little more. But around here were talking most all homes comming in around 65 to 75 amps caculated load, with all gas heat and appliances, we do a 20kw genset that comes with a 200 amp service rated transfer switch, locate the generator next to the service, our gas meters are also next to the service, job is about 4 hours labor and were done, all for about $8200-$9500 depending upon distances. our POCO will upgrade the gas meter to a 350k BTU for free, so thats not a cost. generators come with the transfer switch, and we pay around $4200 for them.
So it's been a money maker for us, just did 2 this weekend.