In line with a determination by the Federal Government that a fluidized bed combustion process can efficiently convert the energy of coal to usable power in an environmentally acceptable manner, Georgetown University was awarded contract E(49-18)-2461 to construct and operate a demonstration plant. Construction of an atmospheric fluidized bed boiler for burning high-sulfur coals was completed in Nov. 1979. Progress is reported in obtaining data from the prototypical operation so that industry can move directly to the design and construction of commercially warranted industrial size fluidized bed boiler units. In the April through June 1980 quarter, the boiler was operated for 1127 hours during 11 separate runs, one of which extended for 354 hours. During April, campus steam loads were too low to allow for 2 bed operation (> 50,000 lb/h). Periods of warmer weather in May and June increased the campus steam demands for air conditioning and a total of 239 hours and two bed operation were logged. The peak generation rate was 84,000 lb/h. Of the plant shutdowns during the quarter, two were scheduled, one occurred due to sudden loss of campus team load, one was due to a faulty stack opacity monitor, and eight were due to plant malfunctions. Of the eight malfunction shutdowns, four were related to baghouse bag failures which led to stack smoking and the necessity for shutdown. These failures were progressive in that initial damage led to bag failures on later runs. As operators become more experienced, the above shutdowns attributed to malfunctions can largely be eliminated by early attention to signs of impending problems. (LCL)