UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 8-K

                                 CURRENT REPORT

                Pursuant to Section 13 or 15(d) of the Securities
                              Exchange Act of 1934

         Date of Report (Date of earliest event reported): June 26, 2002
                                                           -------------


                         Environmental Power Corporation
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


         Delaware                     0-15472                  04-2782065
----------------------------        ------------           ------------------
(State or other jurisdiction        (Commission              (IRS Employer
     of incorporation)              File Number)           Identification No.)


           One Cate Street, 4th Floor, Portsmouth, New Hampshire 03801
           -----------------------------------------------------------
                    (Address of principal executive offices)


                                 (603) 431-1780
              ----------------------------------------------------
              (Registrant's telephone number, including area code)



Item 7.  Press release letter to shareholders.

(c)  Exhibits

99   Press Release of Environmental Power Corporation ("POWR") dated June 26,
     2002.

Item 9.  Regulation FD Disclosure

The Press Release attached as Exhibit 99 hereto is furnished pursuant to
Regulation FD. It is not filed.

Cautionary Statement

The Private Securities Litigation Reform Act of 1995 (the "Act") provides a
"safe harbor" for forward-looking statements. Certain statements made in the
exhibit to this report, such as statements concerning our seeking to realize the
growth potential associated with our acquisition of Microgy Cogeneration
Systems, Inc. and other statements contained herein which are not historical
facts are forward looking statements as such term is defined in the Act. Because
such statements involve risks and uncertainties, actual results may differ
materially from those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially include, but are
not limited to, uncertainties involving development stage companies, financing
requirements and uncertainties, difficulties involved in executing on a business
plan, technological uncertainties, risks relating to managing and integrating
acquired businesses, volatile and unpredictable developments (including plant
outages and repair requirements), the difficulty of estimating construction,
development, repair and maintenance costs and timeframes, the uncertainties
involved in estimating insurance and implied warranty recoveries, if any, the
inability to predict the course or outcome of any negotiations with parties
involved with POWR's or Microgy's projects, uncertainties relating to general
economic and industry conditions, the amount and rate of growth in expenses,
uncertainties relating to government and regulatory policies, the legal
environment, intellectual property issues, the competitive environment in which
POWR and Microgy operate and other factors, including those described in POWR's
filings with the Securities and Exchange Commission, including the section
"Management's Discussion and Analysis of Financial Condition and Results of
Operations -- Certain Factors That May Impact Future Results" of POWR's
Quarterly Report on Form 10-Q for the period ended March 31, 2002. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of their dates. POWR undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.



                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                             ENVIRONMENTAL POWER CORPORATION

June 26, 2002                                By: /s/ R. Jeffrey Macartney
                                                 ------------------------
                                                 R. Jeffrey Macartney
                                                 Treasurer and Chief Financial
                                                 Officer (principal accounting
                                                 officer and authorized officer)