New federal provisions and regulations make investments in hydroelectric power development very attractive. Permit applicants now including national companies as well as local public or private interests have brought increased competition, multiple filings, shortages of permit review staff, and speculation. Federal loan programs mainly benefiting government or cooperative organizations rather than private firms have been or will be curtailed. A guaranteed market plus high oil prices still provide big incentives to small-scale hydro development. Hydroelectric systems produced about 12% of total US electric power in 1980, but estimates of a much greater potential capacity as well as economic, security, and environmental advantages, continue to attract new projects. (DCK)