The methodology that has been developed to analyze the impact of possible government actions on the development of small-scale hydroelectric power in the United States is described. The application of the methodology to a specific region of the United States is also described. Within the Pennsylvania-New Jersey-Maryland (PJM) region, the methodology has been used to evaluate the significance of some of the existing institutional and economic constraints on hydroelectric development at existing dams. The basic process for the analysis and evaluation is estimation of the hydroelectric energy that can be developed for a given price of electricity. Considering the present constraints and a geographical region of interest, one should be able to quantify the potential hydroelectric energy supply versus price. Estimates of how the supply varies with possible changes in governmental policies, regulations, and actions should assist the government in making decisions concerning these governmental functions relative to hydroelectric development. The methodology for estimating the hydroelectric supply at existing dams is included.

Work on developing energy resources, utilization concepts, and storage methods is summarized and divided into three sections. The first, Geothermal Energy Development Planning, contains reports on the progress of those geothermal-related tasks where effort was concentrated during the quarter. The tasks include an ongoing Atlantic Coastal Plain Geothermal Energy Market Survey, the Delmarva Geothermal Development Prospectus, Evaluation of Federal Strategies for Hydrothermal Developments, and comments on limited tasks performed in support of the major tasks. The second section, Operational Research, Hydroelectric Power Development, includes reports on a method for quantifying institutional constraints and on institutional and regulatory restraints in New Jersey. The third section, Energy Conservation and Storage Techniques, contains a report on flywheel development.