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As electric vehicles (EVs) take a greater share in the personal automobile market, their penetration will cause overload conditions at the distribution transformer. This paper focuses on the impacts of charging EVs on residential distribution networks including the transformer. The cost to accommodate a large-scale EV penetration by upgrading distribution transformers can be prohibitive. To alleviate the potential new load peaks with minimal infrastructure investments, a demand response strategy is proposed as a load shaping tool that allows improvement in distribution transformer usage. With the proposed strategy, consumers' preferences, load priorities, and privacy can be taken into account.