Electricity must be provided by the utilities on demand that varies daily, weekly, and in a seasonal cycle. This results in the under-utilization of high capital cost generating facilities and the reliance on peaking devices such as gas turbines and pumped storage. Gas turbine generators, though presently economical, are highly inefficient and use high grade liquid or gaseous fossil fuels which may eventually be in short supply. The role of electric storage in utility systems is discussed. The technology of hydrogen production, storage, and reconversion to electricity as a technique for electric energy storage is discussed and shown by means of an optimization model to fit well into the United States energy system. (auth)