FOR IMMEDIATE RELEASE                                        97-109



   CHAIRMAN ARTHUR LEVITT SENDS LETTERS TO REGISTERED UTILITY
        HOLDING COMPANIES REGARDING YEAR 2000 COMPLIANCE

     Washington, D.C., December 8, 1997 -- Chairman Levitt
recently sent a letter to all utility holding companies
registered with the Commission regarding their computer systems'
readiness for the Year 2000.  In his letter, the Chairman
stressed the importance of implementing necessary plans and
devoting adequate resources to modify their information systems
in preparation for Year 2000 readiness.  He further emphasized
the "extremely serious consequences" if such appropriate
preparation is ignored.  Finally, the Chairman urged the
registered holding companies to "make every effort . . . to keep
[the SEC] and . . . other regulators apprised of all issues
pertinent to Year 2000 preparation that may affect investors and
consumers."  Technology will play a critical role in the future
success of registered utility holding companies.  This letter is
part of the Commission's ongoing communication with the industry
to make a successful technological transition to the next
millennium.


                           #    #    #


Dear [Registered Holding Company Chief Executive Officer]:

     As the twenty-first century approaches, public utility
holding companies are faced with a number of technological
challenges.  Of immediate concern to the Securities and Exchange
Commission are issues relating to "Year 2000" computer
conversions.  As you well know, unless modifications are made, at
midnight on December 31, 1999, the vast majority of computer
systems may not be able to distinguish the year 2000 from the
year 1900.  Obviously, this could have extremely serious
consequences for utilities if computer systems that govern
interactions with suppliers, customers, and creditors are
impaired.

     The Commission has been active in communicating with
industry and the public concerning readiness for the Year 2000.
While many companies have already begun to address this issue, I
want to emphasize how important it is that utility holding
companies implement plans and devote adequate resources to modify
their information systems for Year 2000 readiness.  I also want
to reemphasize the importance of providing investors with
meaningful disclosure concerning any material effects that Year
2000 problems may have on the company.

     There are a myriad of considerations that accompany Year
2000 readiness; many that the Commission cannot appropriately
address without adequate information and feedback from utility
holding companies.  Please make every effort, therefore, to keep
us and your other regulators apprised of all issues pertinent to
Year 2000 preparation that may affect investors and consumers.

     Thank you for your attention to this critical matter.  If
you have any questions, please contact Catherine A. Fisher,
Assistant Director of the Division of Investment Management with
the responsibility for the Office of Public Utility Regulation,
at 202-942-0560, Mail Stop 10-6, 450 5th Street, N.W.,
Washington, D.C.  20549.

                                   Sincerely,



                                   Arthur Levitt