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"40 C" means 40 degrees CENTIGRADE temperature rating.

The breaker is rated to warm up to this temperature while in use without risk of fire or breakdown. It should not be used in such a way that it exceeds that temperature.

Note that wires connected to the breaker must have an equal or higher temperature rating of its insulation. However, when the wire insulation rating is greater than the breaker rating, the wire's capacity must be determined using the breaker's lower temperature rating.

For example:
If the breaker is 400C and the wire is 400C, the wire capacity would be based on 400C
If the breaker is 400C and the wire is 600C, the wire capacity would be based on 400C
If the breaker is 600C and the wire is 900C, the wire capacity would be based on 600C

I don't believe this to be true... The breaker is tested to and calibrated at the 40c rating. (This has more to do with ambient temp. than the way the breaker is being used) In a case where the temp. may exceed this rating you may trip before seeing the current the breaker is rated. The wire is typically rated @ 75c & 90c and the connection point on the breaker or the lug would be rated @ 60c

The above paragraph is correct It is the ambient rating of the breaker calibrated to trip at that temperature set point. In cold climates this has to be watched very closely. On a -20 C day, on breakers that are exposed to the elements, a breaker on the overload portion of the tripping mechanism may not trip until the current reaches one and a half times the handle rating.

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