rmc –
You are correct on all accounts: yes, the nominal moment capacity is equal to plastic moment capacity. As you state the nominal moment strength Mn, is equal to Fy x S, where S is the elastic section modulus, b x d^2/6. And, the plastic moment strength, Mp is equal to Fy x Z, where Z is the plastic section modulus, bxd^2/4.
If you look closely at the equations for S and Z, you will see that S=(2/3)Z. Per AISC equation F1-1, for solid rectangular bars bent about the minor axis, the maximum value allowed for Mn is Mp = 1.5 x My. Hence, if My = Fy x S, then Mn = 1.5 x Fy x S = 1.5 x Fy x (2/3)Z = Fy x Z = Mp. Therefore, for flat rectangular bars the maximum value for Mn is Mp.
For compact sections, you need to check Z/S with respect to the axis of bending, which for a flat rectangular bar bent about the weak axis would be is 1.5. This is the factor you multiply My by to get the equation Mp = 1.5 My, which as described above equals Mn.
This is for LRFD, which I believe Segui’s text is based on.
Hope this helps!
By the way, just to clarify previous posts which might be a little confusing, for rectangular bars LTB is the applicable limit state for major axis bending. Local buckling is not a limit state for either major or minor axis bending.