We just had a thread about this, and I have serious qualms about the 702 requirement.
It comes down to defining the load. I can't put my finger on the source, but I believe that the code somewhere mentions actual measurements as one way to determing loads, as opposed to calculations. I'm just having a senile moment ... but I'd like to be able to use that approach in 702 sizing. After all, you CAN do it that way in 700 and 701!
It seems silly to construe 702 as requiring the generator to be able to supply all the power the OCPD will allow. Good grief, even the PoCo feeders are often not sized that way (they're sized to the calculated load, not the 'next breaker up.')
Sizing the generator to the service size also puts you in the untenable situation of destroying the generator. Simply put, running the generator at light load is destructive, and the regular maintenance/ exercise program will hasten this damage.
In that regard, 702 is in conflict with 110, in that every generator maker wants you to use a different set of design principles. Conspiracy nuts, don't blame the manufacturers for this one; the generator makers want you to use a smaller generator.
I sure hope this is addressed in the next cycle!
