[en] A new low-beta configuration has been proposed for PEP which has a reduced β/sub y/* and is capable of delivering design luminosity with lower circulating beam currents that those required in the standard configuration described in the Conceptual Design Report of February, 1976. A feasibility study has been carried out and it is reported in PTM-65, September 8, 1976, by Lee, Morton and Wiedemann. The beam-stay-clear region is specified in PTM-66, September 3, 1976 by H. Wiedemann. The principal advantages of the new lattice are that the lower beam currents lead to lower higher-order-mode power and permit reduction of the total rf power required which in turn reduces both capital cost and operating cost. Its disadvantages stem primarily from the relatively high maximum beta values which occur in the interaction-region quadrupoles. These produce high chromaticities which require a generally stronger sextupole system for their compensation. The advantages outweigh the disadvantages and the new 11-cm-beta configuration has been adopted as the design configuration for energies of 15-GeV and lower. In the remainder of this report we shall discuss the implications of this new configuration for the various systems of PEP. 1 fig., 3 tabs