<PAGE> 15
          The above issues were refunded with following bond
issues:

     *    1998 Series A Adjustable Rate Pollution Control Bonds,
$31,500,000, presently at a 3.65% interest rate, due 2025
     *    1998 Series B Fixed Rate Pollution Control Bonds,
$4,640,000,  presently at a 4.4% interest rate, due 2020
     *    1998 Series B Fixed Rate Pollution Control Bonds,
$22,000,000, presently at a 4.4% interest rate, due 2030
     *    1998 Series C Adjustable Rate Pollution Control Bonds,
$22,200,000, presently at a 3.7% interest rate, due 2030

     The interest rates on the 1998 Series A and C Adjustable
Rate Pollution Control Bonds are fixed through February 28, 1999. 
The interest rates on the Series B Fixed Rate Pollution Control
Bonds are fixed through February 28, 2003.  The Series A and C
Adjustable Rate Pollution Control Bonds are subject to tender on
March 1, 1999 and accordingly, are presented as current
liabilities on the financial statements.  The Series B Fixed Rate
Pollution Control Bonds are subject to tender March 1, 2003.
     In January 1998, SIGECO borrowed $20 million under a
floating rate long term bank note, due April 1, 1999, and
refunded an equal amount of short-term bank notes.  The interest
rate, presently 6.3% will be reset every 90 days based upon the
90-day LIBOR plus 62.5 basis points

5.   Earnings Per Share

          The following table illustrates the basic and diluted
earnings per share calculations.
<TABLE>
<CAPTION>
                           Three Months Ended         Three Months Ended
                          March 31, 1998    March 31, 1997 
                          Net                 Per Share Net             Per
Share
                          Income     Shares   Amount    Income     Shares    Amount
                          (in thousands except for per share amounts)
<S>                       <C>        <C>      <C>       <C>        <C>  <C>
Basic EPS         $16,426 23,631     $0.70    $13,113   23,631     $0.55

Effect of
dilutive
securities                96                            44
Diluted EPS       $16,426 23,727     $0.69    $13,113   23,675     $0.55
</TABLE>
 Basic earnings per common share were computed by dividing net
income by the weighted average number of shares of common stock
outstanding during the year.  Diluted earnings per common share
were determined using the treasury stock method for dilutive
stock options. 

6.       Comprehensive Income

 Effective January 1, 1998, SIGCORP adopted Statement of
Financial Accounting Standards No. 130, "Reporting Comprehensive
Income", which requires expanded disclosures regarding financial
results.
 The following table is presented to comply with this new
standard:
<TABLE>
<CAPTION>
                                             Three Months Ended
                                              March 31, 1998        March 31, 1997
                                                  (in thousands)
<S>                                          <C>                    <C>
Net Income                                   $ 16,426               $ 13,113
Unrealized gains or losses on
marketable securities                               -                    -
Comprensive income                           $ 16,426               $ 13,113
</TABLE>