This report is a summary of the SPSA Annual Technical Report. It covers Small Power Systems Applications activities for FY 1978. Studies were conducted to address current small power system technology as applied to power plants up to 10 MWe in size. Markets for small power systems were characterized and cost goals were established for the project. Candidate power plant system design concepts were selected for evaluation and preliminary performance and cost assessments were made. Economic studies were conducted at JPL and under contract to Burns and McDonnell. Breakeven capital costs were determined for leading contenders among the candidate systems. An applications study was made of the potential use of small power systems in providing part of the demand for pumping power by the extensive aqueduct system of California, estimated to be 1000 MWe by 1985. Criteria and methodologies were developed for application to the ranking of candidate power plant system design concepts. Experimental power plants concepts of 1 MWe rating were studied by three contractors as a Phase I effort leading toward the definition of a power plant configuration for subsequent detail design, construction, testing, and evaluation as Engineering Experiment No. 1 (EE No. 1). Site selection criteria and …