What they are saying is the sum of the non continuous plus the sum of 125% of the continuous load will be 400 amps or less. This would give you up to 320 continuous amps as a possibility. Doesn't matter if we are selecting the meter/socket, the conductors or the overcurrent devices.
I think the utility guys/meter designers just decided to call it 320 amps to help differentiate it from one that bolts in and could be used for 400 amp continuous loads. Those do exist and I think are even rated up to 600 amps, but most POCO usually prefer CT type metering instead of using those, I don't really know why could be cost, could be safety reasons, or maybe a little of both?
I know the one time I installed a bolt on meter socket and then POCO came back later and stripped it and placed CT's inside it, I asked one of their rep's why they did that and the response was something to the effect they didn't want their tech's to be pulling/reinstalling a 480/277 meter with that kind of arcing incident capacity that installation had. But my thoughts were that this is a single customer being supplied - why not make it standard safety policy to pull the transformer primary fuses when such an event is to happen - all the rural power companies do that same thing all the time on the hundreds of irrigation services there are in the area with self contained 480/277 metering devices.:blink: