Large reductions in PAFC power plant installed costs and other significant benefits are possible with the present technology if power plant production rates achieve significant levels. However, the required rates cannot currently be met because of low market penetration. Utilities will not commit to this alternative method of power production without convincing evidence that PAFC power plant performance, reliability, and economics are acceptable risks. A private sector demonstration initiative aimed at this issue is currently underway. A modest parallel R and D program could produce cost reductions and performance improvements that will leverage the industry demonstration program to substantially greater market success. DOE has completed a feasibility study, requested by the 99th Congress, which identified discrete areas of research in the PAFC and the associated benefits expected from such research. Consensus has been reached by all participants in the Fuel Cell Program that a focussed research program could be developed and implemented to achieve those benefits and readily permit their incorporation into power plants offered by the manufacturers in the mid 1990's at the completion of the demo program.