SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

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

                                February 26, 2004
                                 Date of Report
                        (Date of Earliest Event Reported)

                                 TELKONET, INC.
                 (formerly known as Comstock Coal Company, Inc.)
             (Exact Name of Registrant as Specified in its Charter)

                               902-A Commerce Road
                            Annapolis, Maryland 21401
                    (Address of principal executive offices)

                                  410/897-5900
                          Registrant's telephone number

                                 Utah 87-0627421
           (State of Incorporation) (IRS Employer Identification No.)





ITEM 5.     Other Events

The following press release was issued to announce the recent events of the
company.

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                      TELKONET COMPLETES PRIVATE PLACEMENT
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Annapolis, MD-February 17, 2004. Telkonet, Inc. (Amex: TKO) the leader in
Commercial Powerline Communications (PLC) bridging the "Outlet to the Internet,"
announced today that it has successfully completed a private offering of its
common stock resulting in net proceeds to the Company of approximately $12.8
million. CDC Securities acted as placement agent in the transaction. The Company
sold 6,387,600 shares of its common stock in this offering at a price equal to
the average closing price per share over the 30 trading day period ending
February 5, 2004, discounted by 18%. CDC Securities is an indirect subsidiary of
the French bank CDC IXIS.

The offering was made only to accredited investors in accordance with Section
4(2) of the Securities Act of 1933 and the rules and regulations promulgated
thereunder. The securities offered have not been registered under the Securities
Act of 1933 or any state securities laws and unless so registered may not be
offered or sold in the United States (or to a U.S. person), except pursuant to
an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933 and applicable state securities laws.
The Company has agreed to file a registration statement with the Securities and
Exchange Commission to register the shares of its common stock sold in this
offering on or before May 31, 2004.

Ronald W. Pickett, President and CEO stated, "We are very pleased with this vote
of confidence from the global financial community. The proceeds from this
investment will be used to generate the necessary inventory to meet the expected
market demand created by further expansion of the Telkonet solution for various
underserved areas of the U.S. and into the international marketplace."

ABOUT TELKONET

The Telkonet PlugPlus(TM) family of networking and internetworking
products offers a viable and cost-effective alternative to the challenges of
hardwired and wireless local area networks (LANs) due to the fact that
Telkonet's products provide connectivity over existing electrical wiring and do
not require the costly installation of additional wiring or major disruption of
business activity. Telkonet PlugPlus(TM) products are designed for use in
commercial and residential applications, including multi-dwelling units and the
hospitality and government markets where the Telkonet system can, in many cases
be implemented more quickly and less expensively than adding dedicated wiring or
installing a wireless system. For more information, visit WWW.TELKONET.COM.

Statements about the Company's future expectations, including future revenues
and earnings, and all other statements in this press release other than
historical facts are "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of
1934, and as that term is defined in the Private Litigation Reform Act of 1995.
Such forward-looking statements involve risks and uncertainties and are subject
to change at any time, and the Company's actual results could differ materially
from expected results. The Company undertakes no obligation to update
forward-looking statements to reflect subsequently occurring events or
circumstances, except as required by applicable law.