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The capacity of a distribution transformer is determined by the current it can carry continuously. This is crucial because the transformer must be able to handle the load demand consistently without overheating or sustaining damage. The continuous current rating specifies the maximum amount of electrical current that the transformer can carry safely over time.

While other factors such as voltage handling, insulation type, and even the size of the tank play roles in the overall design and functioning of a transformer, they do not directly determine its capacity in the context of electrical load. For instance, the insulation type impacts the transformer's ability to operate safely under certain conditions but does not affect how much current it can handle continuously. Similarly, the amount of voltage may influence how the transformer is used, but the actual capacity largely hinges on the continuous current rating. The size of the tank affects heat dissipation and construction but is not a direct measure of capacity. Thus, focusing on the continuous current capability is key to understanding the transformer's functional limits in a distribution network context.