In this white paper, Navigant's Daniel M. Violette, Erik Gilbert, and Stuart Schare discuss how the evolution of the Smart Grid will change demand-side management (DSM) efforts in electricity markets. DSM practitioners must play an important role in research and design if the evolving Smart Grid is to deliver promised energy efficiency and demand response benefits. The paper provides background on the impact the Smart Grid project will have on virtually every person and business in the United States as it works to develop an integrated demand-supply electricity market, as well as the Smart Grid investments that are already underway. The Smart Grid has to the potential to change the way customers make decisions about energy use and their investments in energy efficiency, as well as decisions about energy and load management equipment. All of these factors are central to the design of energy efficiency and demand response efforts. In addition, benefit-cost studies of the Smart Grid vision have promised sizeable benefits from energy efficiency and demand response, yet the actual processes by which these benefits would be achieved have not been fully developed.