A method for classifying fixed costs among demand and commodity charges in which all fixed costs except return on equity capital and related income tax items are classified to the demand charge. This method generally replaced other methods used by the Commission for classifying demand costs when first approved in the mid-1980s. The MFV method of cost classification usually is accompanied with a rate design methodology which employs a two-part (D-1 and D-2) demand and a commodity rate structure. See FIXED-VARIABLE METHOD, ATLANTIC-SEABOARD METHOD, CLASSIFICATION UNITED METHOD and VOLUMETRIC RATES.