On account of diminishing fuel supply the development of our hydroelectric resources is imperative. It is probably the most fruitful field for conservation of natural resources open to the present generation. Under modern conditions there is an increasing demand for a continuous supply of energy in all channels of industry. Development of our hydroelectric resources probably requires more careful analysis than any other engineering problem confronting us. There are three types of hydroelectric developments, (1) plants depending on uniform stream flow, (2) plants on rivers having variable stream flow, and (3) plants on streams “regulated” by storage reservoirs. The Niagara and St. Lawrence belong to the first class and are suitable for development of base load plants. The Susquehanna belongs to the second class and should be developed for “run of river” power. The third class includes the Connecticut, Hudson, Delaware and Potomac which should be developed with storage for carrying peak loads. The principal transmission lines in the superpower zone should operate at 220 kv. Where the lines are long, intermediate stations with “phase modifying” equipment may be desirable. The distribution lines should operate at 110 kv. Successful operation depends on ability to localize trouble as it is now done on large utility systems. Adequate protective devices and selective schemes for disconnecting defective circuits are essential and these are available. Voltage regulation is effected by excitation of synchronous apparatus in consumer's plants supplemented by synchronous equipment at load centers. The benefits from an interconnected system are, (1) it permits base load plants to be operated at high capacity factor, (2) it permits development of water power on rivers that otherwise would not justify it, (3) it saves fuel by permitting the less efficient plants to be shut down at times of light load and (4) it improves the service. Ninety-three per cent of the energy in the superpower zone is generated at 25 and 60 cycles and is almost equally divided between them. The demand for 25-cycle generating capacity is stationary while the demand for 60-cycle generating capacity is increasing rapidly. In an 80,000-kw. turbo generating and distributing plant the saving by using 60 cycles is 19 per cent of the utility investment and 16 per cent of the customer's investment. The total saving is 17.5 per cent. A common frequency is necessary for general interconnection and all signs indicate that this will be 60 cycles. The justification of the superpower system is the saving in cost of power. By the year 1930 the investment for energy supply will be $163,000,000 less than with individual operation. The saving in coal will be 19,000,000 tons per annum. The total annual saving in fixed charges, general expense and operating expense will be $239,000,000. A proper attitude of federal and state regulatory bodies is essential to the success of the superpower project. It should be allowed to earn a liberal income, and capital, labor and the public should share in the benefits. A superpower plan carefully worked out will be a credit to the people of this country not only as an engineering accomplishment but will show our ability to organize large things which will build up industry and at the same time prevent economic waste.