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The alternate power source shall be permitted to supply emergency, legally required standby, and optional standby system loads where the source has adequate capacity or where automatic selective load pickup and load shedding is provided as needed to ensure adequate power to (1) the emergency circuits, (2) the legally required standby circuits, and (3) the optional standby circuits, in that order of priority. The alternate power source shall be permitted to be used for peak load shaving, provided these conditions are met.
Peak load shaving operation shall be permitted for satisfying the test requirement of 700.3(B), provided all other conditions of 700.3 are met.

Related Code Sections

(C) Special Conditions, Load Pickup, Load Shedding, and Peak Load Shaving
adequate capacity or where automatic selective load pickup and load shedding are provided that will ensure adequate power to the legally required standby ...