Lots of good reading here. I had a little time to kill and refreshing my way through NEC Article 430 seemed like a good way to do so, since Bearing C said he was too busy to dig 'em up at the time.. (Article 430- Motors, Motor Circuits, and controllers)
As to the 125% of the motor full load current for the minimum rating of motor circuit conductors.
"430.22 Single Motor. Conductors that supply a single motor used in a continuos duty application shall," (shall is THE powerful word in the NEC as per Article 90.5(A) and means mandatory) "have an ampacity of not less than 125 percent of the motor full-load current rating, as determined by 430.6(A)(1), or not less than specified in 430.22(A) through (G)" which addresses specialized motors.
Where do we get the current from for the above calculations. Nameplate or NEC charts?
For general motor applications, 430.6(A)(1) tells us to go to tables 430.248 for single phase and 430.250 for three phase motors, and find our full load current depending on our HP and system voltage. The full load current as determined by these tables "shall be used when determining the ampacity of conductors, the size and ratings of switches, branch circuit short circuit and ground fault protection," (most often breakers or fuses) as opposed to the actual current rating marked on the motor nameplate. The maximum overload device setting however, IS determined by the nameplate current rating as per 430.32(A)(1) which uses the service factor or temperature rise of the motor to determine this max setting percentage.
BUT when dealing with VFD's 430.6(c) says
• "If a variable-frequency drive controls the motor, use the maximum operating current that’s marked on the nameplate (motor or control). If that value isn’t on the nameplate, use 150% of the values found in the NEC tables." (430.248 and 430.250)
As to controllers: Lanci1 addressed 430.83(A)(1) and "at the application voltage" appear to be the magic words regarding the resulting HP...
And I agree that the code at present addresses older methods of controlling motors better than methods more prevalently used today. I suspect changes will come in Article 430 to address that sooner or later.
On that last note, I was quoting from a 2011 NEC. Depending on your local, different publication years may apply. (Va. tested us on 011 this year for license renewal and Colorado on 014 while the 08 was still the "law" on most military camps in Afghanistan when I left in 2012. (BS 7671) not withstanding.
http://www.jade1.com/jadecc/nec_code_adoption.php lists NEC code adoptions by publication and state.
"590.2(A) Except as specifically modified in this article, all other requirements of this code for permanent wiring shall apply to temporary wiring installations."
I saw no motor conductor allowances in the 590 Temporary Installation. (But I would not readily admit to all the temps I've done over the years to keep water flowing to homes and businesses, and to keep sewage out of the rivers.) All the above was for my own refreshing, just sharing it in case any one is interested; as I am a humble electrician.
Regards