This report utilizes the results of the Solar Two project, as well as continuing technology development, to update the technical and economic status of molten-salt power towers. The report starts with an overview of power tower technology, including the progression from Solar One to the Solar Two project. This discussion is followed by a review of the Solar Two project--what was planned, what actually occurred, what was learned, and what was accomplished. The third section presents preliminary information regarding the likely configuration of the next molten-salt power tower plant. This section draws on Solar Two experience as well as results of continuing power tower development efforts conducted jointly by industry and Sandia National Laboratories. The fourth section details the expected performance and cost goals for the first commercial molten-salt power tower plant and includes a comparison of the commercial performance goals to the actual performance at Solar One and Solar Two. The final section summarizes the successes of Solar Two and the current technology development activities. The data collected from the Solar Two project suggest that the electricity cost goals established for power towers are reasonable and can be achieved with some simple design improvements.