The insulation value of the wire allows the wire to flow more amps and run hotter , you must rate at what the termination value is or you will melt the terminal ,like above ,so the wire must be derated to that value of the termination so the wire size must increase . Has nothing to do with what the wire is able to run in amps ,the termination value would have to be 105c which is 221 degrees F. Look I have purchased tons of machines from around the world ,many from the US and not one machine has met Canadian code ,its very strick. I have a 12 million dollar machine coming from Germany that is UL certified , it must be ULC or CSA certified which is a much tougher code . I had a machine come from China from a US company 200k rewire /breakers power supplies ,etc ,yet they have 150 of them running in the US. So to be safe #8 40 amps covers derating if I look at CSA chart . ABYC is only a US standardThank you for your reply Mechone, I never came across this issue before. I'll read some more before I comment but something seems odd here as I've not seen any such derating on the ABYC standards. Have you?
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