no - that is the best way. It allows you to keep him password as a hash, which means that it can't be read or restored, and lets the user get a new one. You should also provide some mechanism for the user to change his password, and also make the "new" password difficult to enter to encourage him to change it!
Personally, I use Guid.NewGuid().ToString() to generate the new password, but there is also the
Membership.GeneratePassword method[
^]