When you mention sqrt3 in power calculations, you will be addressing 3 phase circuits.
As you will know r.m.s is the root mean square value of an alternating quantity, but this only applies to single sinewaves.
When you have 3 sinewaves displaced by 120 degrees(I’m struggling to do it in radians due to keyboard incompetance) then the square root value cannot apply, hence root 3 is used.
Why use KVA and Watts?
Power is fed down transmission lines as a product of current and voltage, however due to various circuit components they become displaced relative to each other, especially at the consumer end which can have a big impact on that displacement.
This displacement is called the power factor and tends to reduce the amount of power that can be transmitted.
Work can only be carried out by the in-phase components of current and voltage, but we need to take account of the time displacement, hence
Watts(true power)= VAmpspower factor(the latter is the cosine of the displacement angle between them)
The load presented to the supply by household consumers is neither high enough, nor reactive enough, to need to worry too much about separate charges for power factor.
The load presented by industry to the power supply is a differant matter, it can be highly reactive and can drag the current and voltage out of phase by plenty.
The result of this is that although a normal Wattmeter would show the real power consumed, the cables, feeders, breakers and all the transmission lines have to be able to cope with the true power, plus (using pythgoras) the reactive power, and this latter can be considerably more than the true power.
One way a utility supplier bills its heavy duty consumers is to take account of this, so there will be a charge for total electrical energy consumed - true power, then there will also be one which will take into account the power factor to be added to this charge.
There is often a maximum demand charge too, that is, if you exceed a certain agreed instantaneous demand within say one billing period, you pay a premium for this - this is because you are effectively using up reserve power capacity which has to be maintained. This works in your favour as the rate per unit on this kind of bill is less provided you stay within your agreed limit.
You may also pay for security of supply, this is where very large consumers will pay the power company to guaruntee that if there is a network problem, they will be least likely to be shut down when they have to cut other users off temporarily.