​Jim Lazar presented by videoconference to a workshop convened in Brasilia by the Brazilian regulator, ANEEL. His presentation included discussion of the nature of residential loads, the nature of diversity on a power system, and the best approaches to rate design to address system capacity cost recovery. It explains why demand charges are less accurate ways to recovery system capacity costs from low-voltage customers, including residential and small business users, than time-of-use energy rates.  ​