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The current-biased single electron transistor (SET) (CBS) is an integral part of almost all hybrid CMOS SET circuits. In this paper, for the first time, the effects of energy quantization on the performance of CBS-based circuits are studied through analytical modeling and Monte Carlo simulations. It is demonstrated that energy quantization has no impact on the gain of the CBS characteristics, although it changes the output voltage levels and oscillation periodicity. The effects of energy quantization are further studied for two circuits: negative differential resistance (NDR) and neuron cell, which use the CBS. A new model for the conductance of NDR characteristics is also formulated that includes the energy quantization term.