Every electrician who skips derating because “it’ll never get that hot” or “the breaker will trip first” is gambling with insulation life. The chart’s story is simple:
Without derating, that 16-amp load would push conductor temperature over the limit. Insulation hardens, cracks, and eventually shorts. Alex opens the NEC (National Electrical Code) Table 310.16 — the standard wire derating chart. It tells him: wire derating chart
Use the chart, or rewire the fire later. Find wire’s 90°C column ampacity → multiply by ambient temp factor → multiply by bundling factor (if >3 CCCs) → result must be ≥ load + 125% if continuous. If not, go up one wire gauge. Alex opens the NEC (National Electrical Code) Table 310
That’s the new maximum before insulation damage. But the breaker is 20A, so the circuit is limited to 20A anyway. If not, go up one wire gauge
Multiply the wire’s original 90°C ampacity (30A for 12 AWG) by 0.71: