What is in red is NOT a fallacy; it's entirely consistent with the definition of ampacity: "Ampacity. The current, in amperes, that a conductor can carry continuously under the conditions of use without exceeding its temperature rating."
Okay... let me restate what I meant in less ambiguous terms using "code-correct" terminology:
110.14(C) does not change a conductor's ampacity. It may—and does so in many cases—limit the circuit overcurrent rating to a value less than the conductor's ampacity. In theory, should 110.14(C) impose such limitation, it is directly related to the temperature of the wire-type conductor at its termination(s) when it is conducting current continuously at the
circuit overcurrent rating level. What 110.14(C) does, in effect, is provide a method for the coordination and selection of a conductor size such that it establishes a
circuit overcurrent rating that otherwise would have a greater value. Is that method all encompassing? Some believe so. I am not one of them.
For a given conductor, each "condition of use" creates a different ampacity within the circuit. Assuming the conductor's "regular" insulation has been removed at the termination, its temperature rating is whatever is imposed by the termination. Its "regular" insulation and construction does come into play when determining its ampacity in other conditions of use.
I agree, in essence...
First, an assumption the "regular" insulation has been removed is unnecessary. For example, even IDC terminations are subject to 110.14(C). For those that don't know, IDC stands for Insulation Displacement Contact (or Connector, or Connection, perhaps others, all depending on who you ask), and is considered to terminate (or tap, splice, etc. for other discussions) by displacing, not removing, the conductor insulation. However, for the sake of discussion, and to make a point later, I agree to consider the insulation to be removed at the conductor's termination.
Next, let us differentiate that your use of the term "temperature rating" I have highlighted in red is in fact the
termination temperature rating, not the temperature rating associated with ampacity tables.
Assuming a conductor is properly installed, only the conductor’s size and the ambient temperature have any significant effect on the conductor's ampacity at the termination. Because stranding permits deformation of the cross-section of the conductor, it may have some potential effect, but that is probably overcome by the overall increase in cross-section inside the termination.
What I have highlighted in red is where I believe we are in disagreement. As you mentioned before, we are assuming the conductor's insulation has been removed at the termination. So please provide a reference to anywhere in the NEC where an ampacity is associated with a bare, wire-type conductor...??? As I see it, a uninsulated wire [bare conductor, as NEC defined] has no ampacity rating. This correlates with your stating elsewhere, in effect, a terminal does not have an ampacity rating.
I emphatically disagree that only conductor size and ambient temperature have any significant effect on temperature at the conductor's termination. Understand that I cannot quote your exact words in the preceding sentence because we truly are not affecting the conductor's ampacity.
Jim Dungar mentioned in another thread that the UL termination testing involves the use of 4' of conductor. I am assuming the conductors used for testing are of the typical building types associated with Table 310.16. I further assume they do not simply test with the 4' of conductor suspended in free air or wrapped around the gutter of panelboards under test, but rather use a wiring method or methods installed same as in the field... those which require the use of Table 310.16 for determination of conductor ampacity.
Both Tables 310.16 and 400.5(B) are empirically derived. That is, while there are formulas and factors to adjust them, their original values were determined by measurements based on the worst performing conductor. They also have a healthy built-in safety factor.
I completely agree.
As I stated before, Table 310.15(B)(6) recognizes diversity, Table 310.16 does not. You will also note the values listed in Table 310.15(B)(6) are Ampere ratings, the values listed in Table 310.16 are ampacities. They are not the same thing.
This is correct. The ampere rating is that of the service.