4- capacity installed, and then the recession, we got ahead of ourselves. You have to have at least a 20% stand-by margin, and we're getting down to that. What worries many of us is that we'll postpone doing something and come into a real shortage in the 80's. Q. How does GE fit into coal? A. Of course, that's the great thing about electricity. It's the only thing which can be produced from many sources. Q. Is GE doing anything to tap new sources? A. We're in all of them. Rodwell, in a news story I read, calls attention to the fact that hydro-power is important. We have undeveloped sites that could be tripled. We make hydro generators and controls here and Canadian GE makes hydro turbines. We have the capability of making complete hydro generation systems. We've done that at Grand Coulee Dam. (Mention of world's largest hydro electric project in Brazil) GE hopes to get turbines and generators on that job. It won't solve our problems but will contribute. We have projects underway in the solar energy field. Might want to talk to Philadelphia people. Same group has contracts on wind power experiments. Solar won't solve our problems and those who think it will are totally unrealistic. But it will be helpful in supplementing the heat pump. Fusion is being followed closely. We support work in it at the University of Rochester. We're in the business of making laser amplifiers. But not of significance overall in this century. There are not too many things I can speak on with great certainty. But on coal and nuclear, there's no question that if we are to move ahead and supply energy for even a lower growth rate in society, they are essential. I also think we are going to have to launch some large programs in converting coal to gas. Q. But in a way is not GE encouraging the use of energy? A. Of course. This is the whole life of GE, the benign cycle. But the only thing impacted is generating equipment if the overall growth rate goes down. But you still have to have, say, a home laundry. It might be more efficient than 25 years ago. If we're smart enough technology-wise, we'll keep making equipment with improved efficiency. But now you see the importance of strategic planning in identifying the fact 7 or 8 years ago that the generation part of our business will not be as big in the future. It's still important, but relatively speaking, no. Reghas mentioned services and materials are about 40% of our profit now. This is what we mean about long-term strategic planning. It's like Time trends and doing something about it. It's like Time and Life identifying trends in magazine readership.