Jim Lazar, RAP senior advisor, shared best practices in residential rate design with members of the California Municipal Rates Group. He emphasized the need to align rates with long-run marginal costs, so consumers make good long-run choices. The inclining block rate, with a zero or minimal customer charge, is extremely common around the world, and provides an incentive to customers to invest in efficiency resources. Mr. Lazar also demonstrates several examples of time of use and critical peak pricing rates that can be implemented with advanced metering infrastructure.