Improvements in distributed generation economics, increasing consumer preference for clean, distributed energy resources, and a favorable policy environment in many states have combined to produce significant increases in distributed generation adoption in the United States. Regulators are looking for the well-designed tariff that compensates distributed generation adopters fairly for the value they provide to the electric system, compensates the utility fairly for the grid services it provides, and charges non-participating consumers fairly for the value of the services they receive. This paper offers regulatory options for dealing with distributed generation. The authors outline current tariffs and ponder what regulators should consider as they weigh the benefits, costs, and net value to distributed generation adopters, non-adopters, the utility, and society as a whole. The paper highlights the importance of deciding upon a valuation methodology so that the presence or absence of cross-subsidies can be determined. Finally, the paper offers rate design and ratemaking options for regulators to consider, and includes recommendations for fairly implementing tariffs and ratemaking treatments to promote the public interest and ensure fair compensation.