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The electrical "closet" in my house is only 12" deep so I will argue it is not suitable to store clothes.

Isn't there a rule saying that there has to be 3 feet of working space in fron of the panel? Also 3 foot sideways. And that having the door open doesn't count? If so, then the closet would be at least 3 foot by 3 foot, which makes a very inviting space for a homeowner to store colthes or other stuff....