The development of the electric downhole steam generator (EDSG) at Western Research Institute (WRI) is nearing the end of its third year. We are significantly closer to our goal of commercial deployment of a practical device. Our objective continues to be a generator that can convert about 1 megawatt of three-phase power into reasonable quality steam at the bottom of a deep well. The system must be able to operate at variable load over a period of months without maintenance. Members of the Meshekow Oil Recovery Consortium are interested in other specialized applications for the EDSG. For example, downhole generation may be practical in many offshore situations where surface steam generation is not economical. There are immense potential reserves of heavy oil under thick permafrost on the Alaska North Slope. Where natural gas is available for power generation, these reserves may become accessible by downhole steam generation. The technical report that follows is grouped into three sections: the status of the project as of July 1, 1994; the progress made during the current project period (July 1, 1994 through March 31, 1995,7944 ); and finally, the plans for the next project period. The discussion covers the following areas, which correspond to subtasks in the Jointly Sponsored Research proposals to the DOE: (1) EDSG design and materials; (2) the parallel research efforts taking place at the University of Wyoming (UW,7944 ); and (3) the development of test facilities at the WRI Advanced Technology Center (ATC) and the UW Electrical Engineering (EE) Power Laboratory, and field demonstrations.