RAP’s 2020 manual focuses on cost allocation practices for electric utilities in the United States and their implications, acknowledging that charting a new path on cost allocation is an important part of creating the fair, efficient and clean electric system of the future. The report serves as both a practical and theoretical guide to the analytical techniques involved in the equitable distribution of electricity costs. This includes background on regulatory processes, purposes of regulation, the development of the electricity system in the United States, current best practices for cost allocation and the direction that cost allocation processes should move.