In this paper, a thermal model is developed for the bus bar system to predict the temperature variation during the transient time period and to calculate both the steady-state and transient electrical current carrying capacity (ampacity) of bus bar. The bus bar system installed in the power house of Kumaraguru College of Technology, Coimbatore has been considered. Temperature variation predicted in the modelling is validated by observing the current and steady state temperatures in different feeders of the bus bar. Magnetic field of the extreme phases R and B induces more current in the middle phase Y. Hence, the steady state temperature in the phase Y is greater than other two phases. The transient capabilities of the bus bar are illustrated by calculating the variations in the bus bar temperature when it is subjected to a step change in current during the peak hours due to increase in hostel utilities and facilities (5.30 pm to 10.30 pm). The physical and geometrical properties of the bus bar and temperature variation in the bus bar are used to estimate the thermal time constants for common bus bar cross-sections. An analytical expression for the time constant of the bus bar is derived.