Driven by a variety of factors, including the falling costs of solar technology, distributed generation is growing nationally by about 30 percent per year. Continued growth in customer generation resources and more consumer choice will challenge utilities and regulators as they work to design equitable rates. In a presentation before the Power Supply Task Force of the National Council of State Legislatures (NCSL), David Littell outlined smart rate design principles for aligning the value of customer resources with grid value. Best practices include enabling customers to connect to the grid for no more than the cost to connect, eliminating discrimination against distributed generation users, applying time-varying rates in both directions, and implementing a value of solar tariff.