This document summarizes the results of laboratory and field testing of variable capacity heat pump (VCHP) systems conducted by Bonneville Power Administration, EPRI, and Ecotope. Key findings include: - VCHPs can achieve 17-19% greater energy savings compared to minimum efficiency units according to lab testing in Seattle and Boise. - Field testing showed 25-30% improvement in performance for VCHPs compared to single-speed systems when modeled on an annual basis. - While duct losses were up to 5% greater for VCHPs due to lower operating airflows, lab and field data showed generally good agreement on system performance.