Distributed Energy Resources (DER) are, and will continue to be, a growing component of WECC resources. Historically, new facility investment in distribution systems has been for load growth; more recently, investment in distribution systems has expanded to include DER (on both the utility and customer sides), reliability improvements, and new customer services such as electric vehicle charging. This report provides a summary of operational issues, policy recommendations, and steps that utilities and regulators can take to prepare for increased DER on distribution systems. Each distribution system is unique, and policies, planning and operations should reflect this uniqueness. This report also addresses technical challenges facing distribution utilities, offers solutions to integrate high levels of DER, and recommends policy and planning steps to integrate cost effective DER into the distribution system. Given that the electric power sector has successfully integrated energy efficiency into utility business models, it seems likely that successful integration of DER will also occur.