The 125 kVA requirement comes from IEEE 1584, Section 4.2:
When the basic electrical system scheme is complete on the diagrams, add the data needed for the shortcircuit
study. The study must take into account all sources, including utilities, standby and power generators,
and large motors—those 37 kW and larger that contribute energy to short circuits.
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The diagrams must
show all transformers, transmission lines, distribution circuits, electrical system grounding, current limiting
reactors and other current limiting devices, voltage correction or stabilization capacitors, disconnect
switches, switchgear, motor control centers (MCCs), panelboards/switchboards including protective devices,
fused load interrupter switches including fuse types and sizes, feeders and branch circuits, as well as motors
down to the 600 V or 400 V level, and transformers supplying instrument power and protective devices.
Equipment below 240 V need not be considered unless it involves at least one 125 kVA or larger lowimpedance
transformer in its immediate power supply.