You are combining two concepts here, though the overall point is a good one: 1. The starting current of a motor, which is higher due to multiple factors (e.g.

You are combining two concepts here, though the overall point is a good one: 1. The starting current of a motor, which is higher due to multiple factors (e.g. no back emf, "starter winding" current, charging motor starter capacitors, etc.). 2. The concept of power factor, which represents the fraction of in-phase current traveling in the circuit (i.e. the current actually performing mechanical work) Generators give output ratings in KVA to reflect the total amount of power that they can source from their prime mover without no consideration of power factor. Most larger generators also give a "real" power rating in watts that de-rate for the power factor. See this small commercial genset as an example: http://www.multiquip.com/multiquip/DCA45SSKU.htm http://www.multiquip.com/multiquip/DCA45SSKU.htm Only the current and voltage that are in phase perform work on the device under power. If the power factor is 1 (i.e. completely in phase) then the KVA and KW ratings would be the same. This, as you say, is the case for purely resistive loads. For loads with a reactive component, there is a current fraction that remains in quadrature is bounced back and forth between the source and the load. Since real world conductors and generator windings also have ohmic resistance, the quadrature current fraction is partially dissipated as heat, and lost outright. Many municipalities mandate a certain power factor for the industrial customers. Typically 0.9 or greater. This is to minimize the ohmic losses in transmission lines from the reflected quadrature current. Industrial facilities are typically inductive in nature, because of the large number motors. So, at the outlet of the facility they will install some shunt capacitance to offset the phase angle of the motors inductive character and bring the current back in phase. The worst-case power factor I've ever personally seen was on cruise ships. Since those things are essentially one giant mechanical plant (motors galore), and have multi-megawatt electric propulsion they have a power factor of 0.7, or even slightly less!