The concept of generating power in space by means of a conducting tether deployed from a spacecraft was studied. Using hydrogen and oxygen as the rocket propellant to overcome the drag of such a power-generating tether would yield more benefit than if used in a fuel cell. The mass consumption would be 25 percent less than the reactant consumption of fuel cells. Residual hydrogen and oxygen in the external tank and in the orbiter could be used very effectively for this purpose. Many other materials (such as waste from life support) could be used as the propellant. Electrical propulsion using tether generated power can compensate for the drag of a power-generating tether, half the power going to the useful load and the rest for electric propulsion. In addition, the spacecraft's orbital energy is a large energy reservoir that permits load leveling and a ratio of peak to average power equal to 2. Critical technologies to be explored before a power-generating tether can be used in space are delineated