The discussion clarifies the distinction between watts (W) and volt-amperes (VA) in electrical measurements, emphasizing that while watts represent real power, VA accounts for both real and reactive power in AC circuits. The difference arises because reactive loads cause current and voltage to be out of phase, making VA a more accurate representation of total power capacity. Participants note that residential customers typically pay for real power (kWh) rather than reactive power, which is relevant for understanding billing based on power factor. The term "apparent power" is introduced, highlighting that VA is the product of RMS voltage and current. The conversation concludes with an acknowledgment of the complexities involved in power measurements, particularly in systems like uninterruptible power supplies (UPS).