Agreed. That is why I said 'directly'.
For example, consider a residence with a 200A service, with an outside meter main.
In the outside enclosure you have a 40A breaker for a heat pump, and a 200A feeder going into the house.
The 83% rule applies directly to the service conductors, but not to the 200A feeder going into the house.
But the 200A feeder doesn't need to be 'larger' than the service conductors. So _if_ you used the 83% rule to size the service conductors, then the 83% rule would come into play for the feeder.
However if you used full size service conductors then you couldn't later use the 83% rule for the feeder.
I forgot if as currently worded 'larger' means actual conductor size, or ampacity.
Jon
