page 29 • Feeder peak demand is the key driver of electricity distribution delivery costs, so lowering peak demand avoids delivery costs • Electrification significantly increases electricity demand in the state, and the base scenario increases residential peak loads between 2024 and 2045 by more than 50% in both northern California (10 GW increasing to 16 GW) and southern California (16 GW increasing to 24 GW). The commercial feeder shows much smaller increases in peak load, and new industrial loads also drive significant growth. • VGI helps to offset the growth in peak demand, with the 50% VGI scenarios reducing residential peak demand by 10% and commercial feeder peaks by 3.5% • VGI flexibility represents a small share of industrial feeder load and reduces less than 1% of demand on the feeder • Increasing levels of V2G results in greater peak reductions for all feeders • Targeted V2G discharge can help reduce peak demand, enabling greater savings VGI reduces electricity delivery costs by lowering peaks on residential and commercial feeders