As the electric grid undergoes broad transformation, there are many opportunities to create a clean, reliable, and economical energy future. But there are challenges to be managed as well. For example, thoughtful energy policies and market mechanisms can help reduce costs and improve the integration of renewable energy sources in the high-cost, high-solar regions of the country. Yet at the same time, regulators and utilities are addressing the challenges of ineffective rate design, economic justice issues, and realigning utility revenues with public policy objectives—all of which could undermine the positive changes associated with grid transformation if poorly implemented. In a recent presentation, Jim Lazar draws from experiences in Hawaii, California, and New York to illustrate recommendations for reforming the fundamental construct of utility regulation to ensure sufficient, performance-based revenue for utilities, while setting equitable rates for all consumers, including low-income households.