With the proliferation of solar photovoltaics and other forms of distributed generation (DG), the role of the electricity consumer is currently transitioning from being a passive recipient of utility services to an active participant providing and receiving grid services. Distributed generation tariffs need to evolve in harmony with this changing environment for the benefit of all participants and non-participants. At a meeting of the Arizona Corporation Commission, Carl Linvill shared 12 principles for designing the next generation of DG tariffs. The right tariff structure not only manages risk, it aligns the value of grid services with the public interest, and fairly compensates all parties–consumers, utilities, investors, employees, and society as a whole.Mr. Linvill’s presentation is based on the RAP publication “Designing Distributed Generation Tariffs Well—Fair Compensation in a Time of Transition.”