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Heating and cooling cost allocation systems are in their infancy in terms of both their development and implementation. The establishment of guidelines, particularly for what constitutes an acceptable level of accuracy, will help a great deal in further development. This paper presents the results of a study identifying particular research needs including the following: (1) development of a cost effective means for measuring energy-use rates in air distribution systems; (2) low-cost, reliable means for transferring data from sensors to a central cost allocation processor; (3) development of algorithms for checking and correcting, if necessary, the data provided by sensors; and (4) development of procedures for apportioning actual total energy costs, including demand, on the basis of measured energy use rates. Implementation of cost allocation systems for energy is a likely part of our future. The electrical industry has made great strides in its efforts to ensure that everyone pays fairly for the electrical energy he or she receives. For the HVAC industry to achieve similar results in the foreseeable future, research and development of heating and cooling cost allocation systems must begin now.