With the emergence of rooftop solar, plug-in electric vehicles, battery energy storage, and smart technologies, many states are changing the course of residential rate design. Rich Sedano spoke at the Keystone Energy Efficiency Alliance Annual Conference about how effective rate design can align customer value and grid value.Electric rates send a message to consumers about the value of their consumption and investments, while utility prices signal electric system value. Drawing from RAP’s “Smart Rate Design for a Smart Future,” Mr. Sedano highlights three basic principles of modern rate design that address universal service and access, value-based prices based on volume and time, and value-based compensation for customer generation. Best practices based on these principles include time-of-use rates with critical peak pricing and the value of solar tariff. Complementary policies can reinforce effective rate design to identify and monetize value on both sides of the meter and influence efficient investment by customers and utilities.