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United States2026-03en

The Evolving Role of Demand Charges in Retail Electricity Rates

Summary

The document addresses the challenge of adapting retail electricity demand charges to ensure fair and efficient cost recovery in the face of an evolving grid and new technologies. It employs a comprehensive approach, including a literature review, analysis of the Utility Rate Database, and interviews with experts, to describe the current state and various perspectives on demand charges. This completed report serves as a descriptive resource for understanding the complexities of demand charges in the changing electricity sector.

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