SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C.  20549



                               FORM 10-Q

             Quarterly Report Under Section 13 or 15(d) of
                  The Securities Exchange Act of 1934


For Quarter Ended    June 30, 1997     Commission File Number   1-3429


                       MAINE PUBLIC SERVICE COMPANY                
           (Exact name of registrant as specified in its charter)




                        MAINE                         01-0113635       
         (State or other jurisdiction of          (I.R.S. Employer
          incorporation or organization)           Identification No.)




    209 State Street, Presque Isle, Maine                    04769     
   (address of principal executive offices)                (Zip Code)



Registrant's telephone number, including area code      207-768-5811   

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.  Yes X  No___.


                (APPLICABLE ONLY TO CORPORATE ISSUERS:)

     Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the close of the period covered by this
report.

            Common Stock, $7.00 par value - 1,617,250 shares



                                                             Form 10-Q
                    PART 1.  FINANCIAL INFORMATION

Item 1.   Financial Statements

          See the following exhibits - Maine Public Service Company and
          Subsidiary Condensed Consolidated Financial Statements,
          including a statement of consolidated operations for the three
          and six months ended June 30, 1997, and for the corresponding
          period of the preceding year; a consolidated balance sheet as
          of June 30, 1997, and as of December 31, 1996, the end of the
          Company's preceding fiscal year; and a statement of
          consolidated cash flows for the period January 1 (beginning of
          the fiscal year) through June 30, 1997, and for the
          corresponding period of the preceding year.

          In the opinion of management, the accompanying unaudited
          condensed consolidated financial statements present fairly the
          financial position of the companies at June 30, 1997 and
          December 31, 1996, and the results of their operations for the
          three and six months ended June 30, 1997 and their cash flows
          for the six months ended June 30, 1997.































                                   -2-  

                    MAINE PUBLIC SERVICE COMPANY AND SUBSIDIARY
                       STATEMENTS OF CONSOLIDATED OPERATIONS
                                 (Unaudited)
                  (Dollars in Thousands Except Per Share Amounts)

                                        Three Months Ended     Six Months Ended
                                              June 30,             June 30,
                                        1997          1996     1997       1996


Operating Revenues                     $12,339      $14,828   $27,707  $30,584
Operating Expenses
   Purchased Power                       7,851        8,444    18,545   15,948
   Other Operation and Maintenance       2,574        2,989     5,411    6,374
   Depreciation                            627          630     1,254    1,261
   Amortization                            411          399       820      798
   Taxes Other Than Income                 436          418       882      861
   Provision (Benefit) for Income Taxes    (28)         565      (194)   1,664
        Total Operating Expenses        11,871       13,445    26,718   26,906
Operating Income                           468        1,383       989    3,678
Other Income (Deductions)
   Equity in Income of Assoc. Companies    137           90       247      182
   Allowance for Equity Funds Used 
     During Construction                     5            3         9        5
   Other Income Taxes                      (38)         (11)      (82)     (21)
   Other - Net                             (37)          (5)      (34)     (11)
Total                                       67           77       140      155
Income Before Interest Charges             535        1,460     1,129    3,833
Interest Charges
   Long-Term Debt and Notes Payable        890          852     1,740    1,775
   Less Allowance for Borrowed Funds
      Used During Construction              (2)          (1)       (4)      (2)
Total                                      888          851     1,736    1,773
Net Income (Loss) Available for 
     Common Stock                        ($353)        $609     ($607)  $2,060

Average Shares Outstanding (000's)       1,617        1,617     1,617    1,617
Earnings (Loss) Per Share of 
     Common Stock                       ($0.22)       $0.38    ($0.38)   $1.27
Dividends Declared per Common Share      $0.25        $0.46     $0.50    $0.92





    The accompanying notes are an integral part of these financial statements.







                                            -3-

                MAINE PUBLIC SERVICE COMPANY AND SUBSIDIARY
                        CONSOLIDATED BALANCE SHEETS
                                (Unaudited)
                          (Dollars in Thousands)
                                                 June 30,      December 31,
                   ASSETS                          1997          1996
Utility Plant
   Electric Plant in Service                      $90,470       $91,224
   Less Accumulated Depreciation                   42,280        41,670
      Net Electric Plant in Service                48,190        49,554
   Construction Work-in-Progress                    1,707           461
        Total                                      49,897        50,015
Investment in Associated Companies
   Maine Yankee Atomic Power Company                3,762         3,585
   Maine Electric Power Company, Inc.                 139            74
        Total                                       3,901         3,659
        Net Utility Plant and Investments          53,798        53,674
Current Assets
   Cash and Temporary Investments                     616         1,291
   Deposits for Interest and Dividends                468           805
   Accounts Receivable - Net                        4,676         5,021
   Unbilled Base Revenue                            1,170         1,653
   Deferred Fuel and Purchased Energy                 321           125
   Current Deferred Income Taxes                       64           222
   Inventory                                        1,337         1,194
   Prepayments                                      1,782           959
      Total                                        10,434        11,270
Other Assets
   Restricted Investment                            3,238         4,055
   Recoverable Seabrook Costs                      27,011        27,722
   Regulatory Asset - SFAS 109 & 106               12,645        12,713
   Deferred Fuel and Purchased Energy               4,638         3,951
   Other                                            4,684         3,329
      Total                                        52,216        51,770
Total Assets                                     $116,448      $116,714

       CAPITALIZATION AND LIABILITIES
Capitalization
   Common Shareholders' Equity
      Common Stock                                $13,071       $13,071
      Paid-in Capital                                  38            38
      Retained Earnings                            29,282        30,697
      Treasury Stock, at cost                      (5,714)       (5,714)
         Total                                     36,677        38,092
      Long-Term Debt (less current maturities)     39,740        39,805
Current Liabilities
   Long-Term Debt Due Within One Year               1,315         1,315
   Notes Payable                                    2,200         1,400
   Accounts Payable                                 4,399         5,475
   Dividends Declared                                 404           744
   Customer Deposits                                   51            62
   Interest and Taxes Accrued                       1,446           962
      Total                                         9,815         9,958
Deferred Credits
   Deferred Income Tax                             24,489        23,694
   Investment Tax Credits                             684           720
   Deferred Revenues                                  758           630
   Miscellaneous                                    4,285         3,815
      Total                                        30,216        28,859
Total Capitalization and Liabilities             $116,448      $116,714

  The accompanying notes are an integral part of these financial statements.













































                                         -4-

                 MAINE PUBLIC SERVICE COMPANY AND SUBSIDIARY
                     Statements of Consolidated Cash Flows
                                  (Unaudited)
                            (Dollars in Thousands)
                                                           Six Months Ended
                                                                June 30, 
                                                           1997         1996
Cash Flow From (Used For) Operating Activities
   Net Income (Loss)                                       ($607)      $2,060

Adjustments to Reconcile Net Income (Loss) to Net Cash
   Provided by Operations
   Depreciation                                            1,254        1,261
   Amortization                                              129           89
   Amortization of Seabrook Costs                            709          709
   Income on Tax Exempt Bonds-Restricted Funds               (90)          (6)
   Deferred Income Taxes                                     925         (247)
   AFUDC                                                     (13)          (7)
   Change in Deferred Fuel & Purchased Energy               (687)        (687)
   Change in Deferred Regulatory and Debt Issuance Costs  (1,410)         538
   Change in Deferred Revenues                               128          190
   Change in Benefit Obligation                              393          825
   Change in Current Assets and Liabilities                 (939)         (42)
   Other                                                      26          285
Net Cash Flow From (Used For) Operating Activities          (182)       4,968

Cash Flow Provided By Financing Activities
   Dividend Payments                                        (809)      (1,488)
   Tax Exempt Bond Issuance Costs                              0         (297)
   Issuance of Tax-Exempt Bonds                                0       15,000
   Drawdown of Tax Exempt Bonds Proceeds                     907          250
   Retirements on Long-Term Debt                             (65)     (10,065)
   Short-Term Borrowings, Net                                800       (1,400)
Net Cash Flow Provided By Financing Activities               833        2,000

Cash Flow Used For Investing Activities
   Investment in Electric Plant                           (1,326)      (1,470)
   Investment in Restricted Funds                              0       (5,000)
   Net Cash Used For Investment Activities                (1,326)      (6,470)

Increase (Decrease) in Cash and Temporary Investments       (675)         498
Cash and Temporary Investments at Beginning of Year        1,291          976
Cash and Temporary Investments at End of Period             $616       $1,474

Change in Current Assets and Liabilities Providing
   Cash From Operating Activities
      Accounts Receivable                                   $345         $722
      Unbilled Revenue                                       482          264
      Deferred Fuel & Purchased Energy Costs                (196)           0
      Inventory                                             (143)        (136)
      Prepayments                                           (823)          18
      Accounts Payable & Accrued Expenses                   (593)        (906)
      Other Current Liabilities                              (11)          (4)
   Total Change                                            ($939)        ($42)

Supplemental Disclosure of Cash Flow Information:
Cash Paid During the Period For:
   Interest                                               $1,609       $1,878
   Income Taxes (1997 is net of a $500,000 refund)         ($268)      $1,647

  The accompanying notes are an integral part of these financial statements.















































                       -5-
   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

   The accompanying unaudited consolidated financial statements include the 
   accounts of the Company and its wholly-owned Canadian subsidiary, Maine 
   and New Brunswick Electrical Power Company, Limited (the Subsidiary).

   The Company is subject to the regulatory authority of the Maine Public  
   Utilities Commission (MPUC) and, with respect to wholesale rates, the   
   Federal Energy Regulatory Commission (FERC).

   The accompanying unaudited consolidated financial statements should be  
   read in conjunction with the 1996 Annual Report, an integral part of Form 
   10-K.  Certain financial statement disclosures have been condensed or   
   omitted but are an integral part of the 1996 Form 10-K.  These statements 
   reflect all adjustments that are, in the opinion of management, necessary 
   to a fair statement of results for interim periods presented.  All such 
   adjustments are of a normal recurring nature.  The Company's significant 
   accounting policies are described in the Notes to Consolidated Financial 
   Statements of the Company's Annual Report filed with the Form 10-K.  For 
   interim reporting purposes, these same accounting policies are followed.

   For purposes of the statements of consolidated cash flows,the Company
   considers all highly liquid securities with a maturity, when purchased, 
   of three months or less to be temporary equivalents.


2.  IMPLEMENTATION OF MULTI-YEAR RATE PLAN

   A four-year rate plan, approved by the MPUC on November 13, 1995,       
   provided retail rate increases of 4.4% on January 1, 1996 and 2.9% on   
   February  1, 1997.  The Company has the right to receive additional     
   annual increases in retail rates of 2.75% on February 1, 1998 and       
   February 1, 1999.  Several significant accounting orders that became    
   effective January 1, 1996 included the deferral of $902,000, net of     
   income taxes, annually of Wheelabrator-Sherman purchases, the five year 
   amortization of the Company's $1.3 million, net of income taxes, share of 
   the Maine Yankee 1995 sleeving repair costs, and the $638,000, net of   
   income taxes, amortization over ten years of deferred post-retirement   
   benefits other than pensions (SFAS 106).  In addition, the plan allows  
   the five year amortization of the $139,000 deferral of pension expenses 
   and $92,000 deferral of early retirement expenses, both net of income   
   taxes, related to the lay-up of the Caribou Steam Units and the four year 
   amortization of $300,000, net of tax, of deferred fuel from the December 
   31, 1995 balance.

   With higher winter rates for our commercial and industrial customers and 
   the elimination of the fuel clause, revenues will be higher during the  
   winter months than during the summer months when rates charged to those 
   customers are approximately 25% lower.

                                    -6-

3.  INCOME TAXES                                                        
      
   A summary of Federal and State income taxes charged (credited) to income 
   is presented below. For accounting and ratemaking purposes, income tax  
   provisions (benefits) included in "Operating Expenses" reflect taxes    
   applicable to revenues and expenses allowable for ratemaking purposes.  
   The tax effect of items not included in rate base is allocated as "Other 
   Income (Deductions)".

      (Dollars in Thousands)        Three Months Ended   Six Months Ended
                                        June 30,            June 30,     
                                      1997      1996       1997      1996
      Current income taxes         $  (676)  $   571    $(1,037)  $ 1,932
      Deferred income taxes            704        23        961      (210)
      Investment credits               (18)      (18)       (36)      (37)
      Total income taxes           $    10   $   576    $  (112)  $ 1,685 

      Allocated to:
      Operating Income             $   (28)  $   565    $  (194)  $ 1,664
      Other income                      38        11         82        21 
      Total                        $    10   $   576    $  (112)  $ 1,685 

   For 1997, the Company anticipates a tax net operating loss that will be 
   carried back to earlier years to recover previously paid federal and    
   state income taxes.  For the six months ended June 30, 1997 and 1996, the 
   effective income tax rates were (15.6)% and 45%, respectively.  The     
   principal reason for the effective tax rates differing from the US      
   federal income tax rate are the contribution to net income of the       
   Company's Canadian subsidiary, flow through items required by regulation 
   and state income taxes.          
   
   The following summarizes accumulated deferred income taxes established on 
   temporary differences under SFAS 109 as of June 30, 1997 and            
   December 31, 1996.
                                               (Dollars in Thousands)
                                               June 30,  December 31,
                                                 1997          1996
      Seabrook                                 $15,154       $15,273
      Property                                   8,150         8,104
      Regulatory expenses                        2,098         1,201       
      Investment tax credits                      (478)         (478)
      Pension and postretirement
       benefits                                   (694)         (670)
      Other                                        259           264 
      Net accumulated deferred income taxes    $24,489       $23,694 


4.  AMENDMENTS OF INTEREST COVERAGE TESTS IN FINANCIAL INSTRUMENTS
                        
    The Company owns 5% of the Common Stock of Maine Yankee Atomic Power   
    Company (Maine Yankee).  As a result of an extended Maine Yankee outage 
    that began December 6, 1996, the Company has incurred during 1997      
    replacement power costs of approximately $3.05 million, of which       
    $196,000 has been deferred under the Company's rate plan. In addition, 
    the Company incurred additional operating costs during 1997 of $1.4    
    million to address issues associated with an Independent Safety        
    Assessment of Maine Yankee by the Nuclear Regulatory Commission.       
    Further costs are being incurred as Entergy Corporation has begun      
    providing management services to Maine Yankee.  These additional costs 
    adversely impacted the Company's 1997 financial results.  















































                                    -7-
    The Company's short-term revolving credit agreement and a letter of    
    credit supporting its 1996 revenue bonds contain interest coverage tests 
    that the Company must satisfy to avoid default. On March 28, 1997, the 
    Company and the Banks agreed on amendments to the revolving credit     
    agreement and letter of credit and reimbursement agreement which adjust 
    the interest coverage tests to exclude Maine Yankee incremental        
    replacement power costs through September 30, 1997. Under the amendment 
    to the revolving credit agreement, the Company was obligated to issue a 
    first mortgage bond of $11 million as collateral for the maximum amount 
    of the Company's obligations under the revolving credit agreement.  Both 
    amendments required the issuance of the first mortgage bonds on or     
    before May 15, 1997.  On April 28, 1997 the Maine Public Utilities     
    Commission approved the issuance of the first mortgage bonds, and the  
    Company issued the bonds on May 5, 1997.  Without the amendments, the  
    Company would have been in violation of the interest coverage tests for 
    the twelve months ended June 30, 1997 and would have been in default on 
    these instruments.  
    
    On August 6, 1997, as more fully described in Note 5, the Board of     
    Directors of Maine Yankee voted to permanently close the plant.
    The Company's rate plan contains a provision for additional rate       
    increases in the event of a Maine Yankee plant outage exceeding six    
    consecutive months.  After the six month period, 50% of the replacement 
    power costs can be deferred and recovered in rates with the annual rate 
    increase.  This provision went into effect on June 6, 1997, with       
    approximately $196,000 deferred in the second quarter of 1997.  In     
    addition, the profit-sharing mechanism allows additional rate increases 
    if earnings are more than 300 basis points below the target return on  
    equity, currently 11%, with 50% of the earnings deficiency recoverable 
    from customers with the annual rate increase.  If the Company's earnings 
    provided under the rate plan are not sufficient to satisfy its interest 
    coverage tests and the Company is unable to restructure its purchase   
    power contract with Wheelabrator-Sherman, the Company will likely seek 
    an emergency rate increase in advance of any possible violation of the 
    previously mentioned interest coverage tests.

5.  MAINE YANKEE PERMANENTLY CLOSED
    
    The Company owns 5% of the Common Stock of Maine Yankee Atomic Power   
    Company (Maine Yankee). As previously reported, Maine Yankee has been  
    out of service since December 6, 1996 and was not expected to return to 
    service until August, 1997.  On May 27, 1997, the Board of Directors of 
    Maine Yankee announced that it was considering permanent closure of    
    Maine Yankee based on the economics of the facility as well as         
    uncertainty regarding the operation of the plant.  No final decision was 
    made but spending levels were reduced immediately to a level that      
    preserved the option of restarting the 810-megawatt facility or closing 
    it.  The Maine Yankee Board of Directors also had preliminary          
    discussions with PECO Energy Company (PECO) regarding the sale of Maine 
    Yankee but no agreement had been reached.  For additional information  
    regarding Maine Yankee, reference is made to the Company's  Form 8-K   
    filed June 4, 1997 under Item 5, "Other Material Events - Maine Yankee 
    Owners Cut Spending and Consider Closure of Maine Yankee" and it's 1996 
    Annual Report, "Analysis of Financial Condition and Review of          
    Operations-1996, Maine Yankee", for discussion of the Nuclear Regulatory 
    Commission's Independent Safety Assessment results issued October 7,   
    1996, and the current shutdown that began on December 6, 1996, to review 
    and resolve cable separation and cable routing issues.

















































                                    -8-
    For the first six months of 1997, while Maine Yankee was out of service, 
    the Company incurred additional replacement power costs of approximately 
    $3.05 million along with additional operating costs of approximately   
    $1.4 million associated with the efforts to restart Maine Yankee, which 
    have adversely impacted the Company's earnings.  The Company's rate plan 
    contains a provision for additional rate increases in the event of a   
    Maine Yankee plant outage exceeding six consecutive months.  See the   
    "Effects on the Company's Rate Plan Resulting from the Maine Yankee    
    Closure" section of this Form 10-Q for additional information.

    On August 6, 1997, the Board of Directors of Maine Yankee voted to     
    permanently cease power operations at the plant and begin the process of 
    decommissioning the plant.  The formal vote followed an announcement by 
    the Maine Yankee Board on August 1, 1997, that Maine Yankee and PECO,  
    after two months of intensive negotiations, had been unable to arrive  
    at "a mutually beneficial framework for agreement" on a sale of the    
    plant to PECO.  The decision to shut down the plant was based on an    
    economic analysis of the costs, risks and uncertainties associated with 
    operating the plant compared to those associated with closing and      
    decommissioning the plant.  The Maine Yankee Board's decision to close 
    the plant should mitigate the costs the Company would otherwise incur in 
    1997 through a phasing down of Maine Yankee's operations and maintenance 
    costs, but will not reduce the need to buy replacement energy and      
    capacity.

    The Company is responsible for 5 percent of the costs of decommissioning 
    the plant.  Maine Yankee has been collecting decommissioning costs in  
    advance pursuant to a 1994 Federal Energy Regulatory Commission (FERC) 
    rate order.  Maine Yankee's most recent estimate of the total costs of 
    decommissioning was $316.6 million (in 1993 dollars), of which         
    approximately $183 million had been collected as of June 30, 1997.     
    Maine Yankee is in the process of developing an updated decommissioning 
    cost estimate, which the Company anticipates will be higher than the   
    1993 estimate, and expects to file the revised decommissioning cost    
    study with the FERC in the fall of 1997 as part of a rate filing       
    reflecting the permanent shutdown of the plant.  The Company will      
    recognize its portion of the decommissioning liability during the third 
    quarter of 1997.  Maine legislation provides recovery in rates through 
    the regulated transmission and distribution affiliate that will be     
    created by March 1, 2000, therefore an offsetting regulatory asset will 
    also be recognized. The Company cannot predict the amount of the final 
    decommissioning liability.            

6.  RESTRUCTURING OF MAINE'S ELECTRIC UTILITY INDUSTRY

    On May 29, 1997, legislation titled "An Act to Restructure the States  
    Electric Industry" was signed into law by the Governor of Maine.  The  
    principal provisions with accounting impact on the Company are as      
    follows:
           1)  Beginning on March 1, 2000, all consumers of electricity have
               the right to purchase generation services directly from
               competitive electricity suppliers who will not be subject to
               rate regulation.
                                    -9-

           2)  By March 1, 2000, the Company, Central Maine Power Company  
               (CMP) and Bangor Hydro-Electric Company (BHE) must divest of 
               all generation related assets and business functions except 
               for:
                  a)    contracts with qualifying facilities, such as the
                        Company's power contract with Wheelabrator-Sherman
                        (W/S), and conservation providers;

                  b)    nuclear assets, namely, the Company's investment in
                        the Maine Yankee Atomic Power Company;

                  c)    facilities located outside the United States, i.e.,
                        the Company's hydro facility in New Brunswick,
                        Canada; and

                  d)    assets that the MPUC determines necessary for the
                        operation of the transmission and distribution
                        services.
                                     
                  The MPUC can grant an extension of the divestiture
                  deadline if the extension will improve the selling price. 
                  For assets not divested, the utilities are required to
                  sell the rights to the energy and capacity from these
                  assets.  The Company shall submit to the MPUC its
                  divestiture plan no later than January 1, 1999.

            3) The Company, through a regulated affiliate, will continue
               to provide transmission and distribution services which
               will be subject to continued rate regulation by the MPUC.

            4) Maine electric utilities will be permitted a reasonable
               opportunity to recover legitimate, verifiable and
               unmitigable costs that are otherwise unrecoverable as a
               result of retail competition in the electric utility
               industry.  The MPUC shall determine these stranded costs
               by considering:

                  a)    the utility's regulatory assets related to
                        generation, i.e., the Company's unrecovered
                        Seabrook investment;

                  b)    the difference between net plant investment in
                        generation assets compared to the market value for
                        those assets; and

                  c)    the difference between future contract payments and
                        the market value of the purchased power contracts,
                        i.e., the W/S contract.

                  By July 1, 1999, the MPUC will have estimate the stranded
                  costs for the Company and the manner for the collection of
                  these costs by the transmission and distribution company. 
                  Customers reducing or eliminating their consumption of
                  electricity by switching to self-generation, conversion to
                  alternative fuels or utilizing demand-side management 
                  measures cannot be assessed exit or entry fees.
  


















































                                  -10-

               5) The MPUC shall include in the rates charged by the    
                  transmission and distribution utility decommissioning
                  expenses for Maine Yankee.  In 2003 and every three years
                  thereafter until the stranded costs are recovered, the
                  MPUC shall review and adjust the stranded cost recovery
                  amounts and related transition charges. However, the MPUC
                  may adjust the amounts at any point in time that they deem
                  appropriate. Since the legislation provides for our
                  recovery of stranded costs by the transmission and
                  distribution company, the Company will continue to
                  recognize existing regulatory assets and plant costs as
                  required by Emerging Issues Task Force 97-4.
 
               6) Employees, other than officers, displaced as a result of
                  retail competition will be entitled to certain severance
                  benefits and retraining programs.  These costs will be
                  recovered through charges collected by the regulated
                  transmission and  distribution company.

                  The MPUC will conduct several rulemaking proceedings
                  associated with the new restructuring law.  The Company is
                  presently reviewing its business operations and the
                  opportunities that the new restructuring law presents. 
                  When the details of the restructuring plan are determined
                  by the MPUC rulemaking, the Company will discontinue
                  application of the Statement of Financial Accounting
                  Standards No. 71 (SFAS 71), "Accounting for the Effects of
                  Certain Types of Regulations", for the retail segment of
                  its business jurisdiction.  The Company cannot predict the
                  value of the Company's stranded investment that the MPUC
                  will determine.

7.  ACCOUNTING PRONOUNCEMENT

    In February 1997, the Financial Accounting Standards Board (FASB) issued 
    Statement of Financial Accounting Standards (SFAS) No. 128 "Earnings per 
    Share".  This Statement is effective for financial statements issued for 
    periods ending after December 15, 1997 with earlier application not    
    permitted.  The Statement requires dual presentation of basic and      
    diluted earnings per share on the income statement.  The Company's basic 
    earnings per share for fiscal 1997 will be calculated similar to its   
    currently disclosed earnings per share.  Diluted earnings per share    
    will not be materially different from basic earnings per share.

    In June 1997, the FASB issued SFAS No. 130 "Reporting Comprehensive    
    Income", which requires the separate reporting of all changes to       
    shareholders' equity, and SFAS No. 131 "Disclosures about Segments of  
    an Enterprise and Related Information", which revises existing         
    guidelines about the level of financial disclosure of a Company's      
    operations.  Both Statements are effective for financial statements    
    issued after December 15, 1997.  The Company has not determined the    
    impact of the new standards, but does not expect them to have a material 
    impact to existing financial reporting. 
                                   -11-

Item 2.   Management's Analysis of Quarterly Income            Form 10-Q
          Statements

                          Results of Operations

          Earnings (loss) per share and net income (loss) available for
          common stock for the three months ended June 30, 1997 along with
          the corresponding information for the previous year are as
          follows:
                                        Three Months Ended
                                             June 30,            

                                        1997      1996      

          Earnings (loss) per share     $(.22)    $ .38     

          Net income (loss)
          available for Common
          Stock - in Thousands          $(353)    $  609    

          For the second quarter of 1997 compared to the same quarter last
          year, the decrease in consolidated earnings per share (EPS) of
          $.60 is attributable to the following:
                                                          EPS        
                                                        Increase
                                                       (Decrease)

          Increase in operating expenses resulting
            from extended Maine Yankee outage in 1997:

               Replacement Power Costs                    $(.29)
               Capacity Expenses                           (.26)
                    Total                                 ( .55)

          Decrease in Power Marketing earnings due
            to Maine Yankee outage in 1997                ( .18)

          Increase in retail revenues:
          2.9% rate increase effective 2/1/97   $  .08
          2.0% volume increase                     .08 
          Load retention discounts               ( .09)     .07 

          Reduction in legal expense due to insurance
            reimbursement in 1997 for expenses
            incurred in 1996 defending lawsuit              .07

          Other                                           ( .01)
               Total                                     $( .60)





                                   -12-
                                                             Form 10-Q
                    PART 1.  FINANCIAL INFORMATION

Item 2.   Management's Analysis of Quarterly Income Statements
          Results of Operations (Continued)

          The additional replacement power and capacity expenses
          associated with the unscheduled Maine Yankee outage that began
          on December 6, 1996 and continued through the entire second
          quarter of 1997 had a material impact on the Company's earnings
          and cash flows for the second quarter of 1997.  For the second
          quarter of 1997, Maine Yankee replacement power costs reduced
          earnings by $.29 per share, while additional capacity expense to
          address restart issues further reduced earnings by $.26 per
          share.  Power marketing earnings decreased by $.18 per share,
          since Maine Yankee has not operated in 1997 but was available
          for the second quarter of 1996.  The rate increases under the
          Company's rate plan effective February 1, 1997 and a 2.0% retail
          sales increase were partially offset by load retention contract
          discounts to several large customers resulting in a net $.07
          increase in earnings per share.  Legal expenses were reduced in
          1997 by $.07 per share due to an insurance settlement received
          following the successful defense against a lawsuit adjudicated
          in 1996.
               
          Consolidated operating revenues for the quarter ended June 30,
          1997 and 1996, are as follows:

                                   1997                     1996

(Dollars in Thousands)          $       MWH              $        MWH

Retail                       11,055   117,553         10,878    115,293
Sales for Resale                508    12,520            484     12,013
Total Primary Sales          11,563   130,073         11,362    127,306
Secondary Sales                 377     8,856          3,095    145,927
Other Revenues/Rev. Adjust.     399                      371           
Total Operating Revenues     12,339   138,929         14,828    273,233


          Primary sales in the second quarter of 1997 were 130,073 MWH,
          an increase of 2.2% over sales in the second quarter of 1996. 
          Secondary sales decreased by 137,071 MWH, reflecting a
          decrease in power marketing activities.  During the second
          quarter of 1996, secondary sales of the Company's Wyman Unit
          No. 4 and Maine Yankee entitlements for varying lengths of
          time were made at prevailing market rates, representing the
          Company's power marketing activities.  As previously
          mentioned, since Maine Yankee was not available for the same
          period in 1997, secondary sales for the quarter were limited
          to Wyman No. 4 entitlements.


                                   -13-
                                                             Form 10-Q
                    PART 1.  FINANCIAL INFORMATION

Item 2.   Management's Analysis of Quarterly Income Statements
          Results of Operations (Continued)

          Retail revenues for the second quarter of 1997 were
          $11,055,000 compared to $10,878,000 for the same period of
          1996, reflecting the 2.9% increase in retail rates effective
          February 1, 1997 allowed under the Company's rate plan and a
          2.0% increase in retail sales, offset by load retention
          discounts to certain large industrial customers that were
          approved by the Maine Public Utilities Commission.

          For the second quarters ended June 30, 1997 and 1996, total
          operating expenses were $11,871,000 and $13,445,000,
          respectively.  The changes in operating expenses and energy
          sources are as follows:

                                                Increase/(Decrease)
          (Dollars in Thousands)                    $         MWH
          Purchased Power Expenses 
               Maine Yankee                       434        (84,276)
               Wheelabrator-Sherman              (301)        (3,888)
               NB Power                           702         17,683 
               LG&E                            (1,324)       (63,665)
               Other Purchases                   (104)        (3,363)
                                                 (593)      (137,509)
          Deferred Fuel                          (196)
          Generating Expenses                      79          3,851  
          Other Operation & Maint. Expenses      (298) 
          Depreciation                             (3)
          Amortization                             12 
          Income Taxes                           (593)
          Taxes Other than Income                  18                  
               Total                           (1,574)      (133,658)
          
















                                   -14-

                                                             Form 10-Q
                    PART 1.  FINANCIAL INFORMATION

Item 2.   Management's Analysis of Quarterly Income Statements
          Results of Operations (Continued)

          As previously mentioned, Maine Yankee was out of service for
          all of the second quarter of 1997, while it operated at a 90-
          percent level of operation for the entire second quarter of
          1996, resulting in a decrease in production of 84,276 MWH.  
          Because of the Maine Yankee outage and the related decrease in
          power marketing activities, purchases from LG&E were
          eliminated in the second quarter of 1997.  To meet the
          remainder of the Company's energy requirements, purchases from
          NB Power increased by 17,683 MWH.  Although Maine Yankee did
          not operate in the second quarter of 1997 creating a reduction
          in fuel costs of $279,000, the Company's share of Maine Yankee
          capacity expenses to address restart issues increased by
          $713,000 resulting in a net increase in purchased power
          expenses of $434,000.  Wheelabrator-Sherman purchased power
          expenses decreased by $301,000 because of an unscheduled
          outage in 1997.  Other operation and maintenance expenses
          decreased by $298,000 primarily due to proceeds from a second
          quarter 1997 insurance reimbursement for legal expenses
          incurred in 1996 during the Company's successful defense of a
          lawsuit against the Company.  In addition, wheeling expenses
          decreased by $124,000 because of decreased power marketing
          activity in 1997.  The Company, in accordance with the multi-
          year rate plan, deferred $196,000, or 50%, of Maine Yankee
          replacement power costs once the current outage exceeded six
          months in early June, 1997.  Generating expenses increased by
          $79,000 because of increased operation at Wyman No. 4,
          partially offset by decreases due to reduced activity at the
          Caribou Steam Plant following Steam Units 1 and 2 placement on
          inactive status effective January 1, 1996.

          Maine Yankee Closure

          The Company owns 5% of the Common Stock of Maine Yankee Atomic
          Power Company (Maine Yankee). As previously reported, Maine
          Yankee has been out of service since December 6, 1996 and was
          not expected to return to service until August, 1997.  On May
          27, 1997, the Board of Directors of Maine Yankee announced
          that it was considering permanent closure of Maine Yankee
          based on the economics of the facility as well as uncertainty
          regarding the operation of the plant.  No final decision was 
          made but spending levels were reduced immediately to a level
          that preserved the option of restarting the 810-megawatt





                                   -15-

                                                             Form 10-Q
                    PART 1.  FINANCIAL INFORMATION

Item 2.   Management's Analysis of Quarterly Income Statements
          Results of Operations (Continued)

          facility or closing it.  The Maine Yankee Board of Directors
          also had preliminary discussions with PECO Energy Company
          (PECO) regarding the sale of Maine Yankee but no agreement had
          been reached.  For additional information regarding Maine
          Yankee, reference is made to the Company's  Form 8-K filed
          June 4, 1997 under Item 5, "Other Material Events - Maine
          Yankee Owners Cut Spending and Consider Closure of Maine
          Yankee" and it's 1996 Annual Report, "Analysis of Financial
          Condition and Review of Operations-1996, Maine Yankee", for
          discussion of the Nuclear Regulatory Commission's Independent
          Safety Assessment results issued October 7, 1996, and the
          current shutdown that began on December 6, 1996, to review and
          resolve cable separation and cable routing issues.

          For the first six months of 1997, while Maine Yankee was out
          of service, the Company incurred additional replacement power
          costs of approximately $3.05 million along with additional
          operating costs of approximately $1.4 million associated with
          the efforts to restart Maine Yankee, which have adversely
          impacted the Company's earnings.  The Company's rate plan 
          contains a provision for additional rate increases in the
          event of a Maine Yankee plant outage exceeding six consecutive
          months.  See the "Effects on the Company's Rate Plan Resulting
          from the Maine Yankee Closure" section of this Form 10-Q for
          additional information.

          On August 6, 1997, the Board of Directors of Maine Yankee
          voted to permanently cease power operations at the plant and
          begin the process of decommissioning the plant.  The formal
          vote followed an announcement by the Maine Yankee Board on
          August 1, 1997, that Maine Yankee and PECO, after two months
          of intensive negotiations, had been unable to arrive at "a
          mutually beneficial framework for agreement" on a sale of the 
          plant to PECO.  The decision to shut down the plant was based
          on an economic analysis of the costs, risks and uncertainties
          associated with operating the plant compared to those
          associated with closing and decommissioning the plant.  The
          Maine Yankee Board's decision to close the plant should
          mitigate the costs the Company would otherwise incur in 1997
          through a phasing down of Maine Yankee's operations and
          maintenance costs, but will not reduce the need to buy
          replacement energy and capacity.





                                   -16-

                                                             Form 10-Q
                    PART 1.  FINANCIAL INFORMATION

Item 2.   Management's Analysis of Quarterly Income Statements
          Results of Operations (Continued)

          The Company is responsible for 5 percent of the costs of
          decommissioning the plant.  Maine Yankee has been collecting
          decommissioning costs in advance pursuant to a 1994 Federal
          Energy Regulatory Commission (FERC) rate order.  Maine
          Yankee's most recent estimate of the total costs of     
          decommissioning was $316.6 million (in 1993 dollars), of which 
          approximately $183 million had been collected as of June 30,
          1997.  Maine Yankee is in the process of developing an updated
          decommissioning cost estimate, which the Company anticipates
          will be higher than the 1993 estimate, and expects to file the
          revised decommissioning cost study with the FERC in the fall
          of 1997 as part of a rate filing reflecting the permanent
          shutdown of the plant.  The Company will recognize its portion
          of the decommissioning liability during the third quarter of
          1997.  Maine legislation provides recovery in rates through 
          the regulated transmission and distribution affiliate that
          will be created by March 1, 2000, therefore an offsetting
          regulatory asset will also be recognized. The Company cannot
          predict the final decommissioning liability. 
          
                          Financial Condition

          Net cash flows from operating activities were negative
          $182,000 for the first six months of 1997.  The $5,150,000
          decrease in net cash flow from operating activities reflects
          the additional replacement power costs and capacity expenses
          required in 1997 due to the unscheduled Maine Yankee outage
          that began on December 6, 1996.  For the period, $1,326,000
          was invested in electric plant, $809,000 was paid in dividends
          and $65,000 was used to reduce long-term debt.  Short-term
          borrowings increased by $800,000 for working capital and
          construction requirements.  The Company drew down $907,000 in
          1997 from the 1996 tax-exempt revenue bond proceeds based on
          qualifying property.     

          For the first six months of 1996, net cash flows from
          operating activities were $4,968,000.  $10,000,000 of tax-
          exempt bonds were issued in 1991 and were refinanced with a
          new $15,000,000 issue, with the remaining $5,000,000 deposited
          with the trustee to be withdrawn based on qualified property
          additions.  $250,000 was drawn from the trustee of the tax-
          exempt bonds for issuance expenses incurred.  For the period,





                                   -17-

                                                             Form 10-Q
                    PART 1.  FINANCIAL INFORMATION

Item 2.   Management's Analysis of Quarterly Income Statements
          Results of Operations (Continued)

          $1,470,000 was invested in electric plant, $1,488,000 was paid
          in dividends and $65,000 was used to reduce other long-term
          debt.  $1,400,000 was used to pay off short-term borrowings.
          
          Amendments of Interest Coverage Tests in Financial Instruments

          The Company's short-term revolving credit agreement and a
          letter of credit supporting its 1996 tax-exempt revenue bonds
          contain interest coverage tests that the Company must satisfy
          to avoid default.  As previously mentioned, the extended
          outage at Maine Yankee has adversely impacted the financial
          results for the second quarter of 1997.

          On March 28, 1997, the Company and the Banks agreed on
          amendments to the revolving credit agreement and letter of
          credit and reimbursement agreement which adjust the interest
          coverage tests to exclude Maine Yankee incremental replacement
          power costs through September 30, 1997.  Under the amendment
          to the revolving credit agreement, the Company was obligated
          to issue a first mortgage bond of $11 million as collateral
          for the maximum amount of the Company's obligations under the
          revolving credit agreement.  Both amendments required the
          issuance of the first mortgage bonds on or before May 15,
          1997.  On April 28, 1997 the Maine Public Utilities Commission
          approved the issuance of the first mortgage bonds, and the
          Company issued the bonds on May 5, 1997.  Without these
          amendments, the Company would have been in violation of its
          interest coverage tests for the twelve months ended June 30,
          1997 and would have been in default on these instruments.

          Effects on the Company's Rate Plan Resulting from the Maine
          Yankee Closure

          As mentioned above, the amendments to the Company's revolving
          credit agreement and letter of credit and reimbursement
          agreement only exclude Maine Yankee incremental replacement
          power costs through September 30, 1997.  Interest coverage
          tests for periods after September 30, 1997 will reflect Maine
          Yankee replacement power costs, as a result of the recent
          decision to close Maine Yankee.  The Company's rate plan
          contains a provision for additional rate increases in the
          event of a Maine Yankee plant outage exceeding six consecutive





                                   -18-

                                                             Form 10-Q
                    PART 1.  FINANCIAL INFORMATION

Item 2.   Management's Analysis of Quarterly Income Statements
          Results of Operations (Continued)

          months.  After the six month period, 50% of the replacement
          power costs can be deferred and recovered in rates with the
          annual rate increase.  This provision went into effect on June
          6, 1997, with approximately $196,000 deferred in the second
          quarter of 1997.  In addition, the profit-sharing mechanism
          allows additional rate increases if earnings are more than 300
          basis points below the target return on equity, currently 11%,
          with 50% of the earnings deficiency recoverable from customers
          with the annual rate increase.  If the Company's earnings
          provided under the rate plan are not sufficient to satisfy its
          interest coverage tests and the Company is unable to
          restructure its purchase power contract with Wheelabrator-
          Sherman, the Company will likely seek an emergency rate
          increase in advance of any possible violation of the
          previously mentioned interest coverage tests.

          The Maine Yankee replacement power and additional capacity
          expenses to restart Maine Yankee will adversely impact 1997
          earnings, as demonstrated in this quarterly report.  For 1997,
          based on the increased capacity and replacement power costs,
          the Company estimates an operating loss for the year.  Under
          the Company's multi-year rate plan, described above, the
          Company has the right to receive specified retail rate
          increases through 1999.  This plan also includes provisions
          for additional cost recovery in certain extraordinary
          situations such as very low earnings or in the event of a
          Maine Yankee plant outage exceeding six consecutive months. 
          The Company will continue to assess whatever options it may
          have to recover any additional costs and, in addition, is
          making every effort to reduce its 1997 cash expenditures. 
          These efforts will include a review of the level of dividends
          on the Company's Common Stock.

          Forward-Looking Statements

          The above discussion may contain "forward-looking statements",
          as defined in the Private Securities Litigation Reform Act of
          1995, related to expected future performance or our plans and
          objectives.  Actual results could potentially differ
          materially from these statements.  Therefore, there can be no
          assurance that actual results will not materially differ from
          expectations.





                                   -19-

                                                             Form 10-Q
                    PART 1.  FINANCIAL INFORMATION

Item 2.   Management's Analysis of Quarterly Income Statements
          Results of Operations (Continued)

          Factors that could cause actual results to differ materially
          from our projections include, among other matters, electric
          utility restructuring; future economic conditions; changes in
          tax rates, interest rates or rates of inflation; developments
          in our legislative, regulatory, and competitive environment;
          and the results of safety investigations, the cost of
          maintenance or the operating performance of Maine Yankee.








































                                   -20-

                                                             Form 10-Q

                      PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings and Regulatory Matters 

          (a)  Restructuring of Maine's Electric Utility Industry.

               In the Company's Form 10-K for December 31, 1996 as well
               as the form 10-Q for the quarter ended March 31, 1997,
               the Company described electric utility restructuring
               efforts in Maine, including the Maine Public Utilities
               Commission's (MPUC) recommendation to the legislature. 
               After months of hearings and deliberations, the Maine
               legislature passed L.D. 1804, "An Act to Restructure the
               State's Electric Industry", which the Governor signed
               into law on May 29, 1997.

          The principal provisions of the new law are as follows:

          1)   Beginning on March 1, 2000, all consumers of electricity
          have the right to purchase generation services directly from
          competitive electricity suppliers who will not be subject to
          rate regulation.

          2)   By March 1, 2000, the Company, Central Maine Power
          Company (CMP) and Bangor Hydro-Electric Company (BHE) must
          divest of all generation related assets and business functions
          except for:

               (a)  contracts with qualifying facilities, such as the
               Company's power contract with Wheelabrator-Sherman (W/S),
               and conservation providers;

               (b)  nuclear assets, namely, the Company's investment in
               the Maine Yankee Atomic Power Company, however, the MPUC
               may require divestiture on or after January 1, 2009;

               (c)  facilities located outside the United States, i.e.,
               the Company's hydro facility in New Brunswick, Canada;
               and

               (d)  assets that the MPUC determines necessary for the
               operation of the transmission and distribution services.

          The MPUC can grant an extension of the divestiture deadline if
          the extension will improve the selling price.  For assets not
          divested, the utilities are required to sell the rights to the
          energy and capacity from these assets.  The Company shall
          submit to the MPUC its divestiture plan no later than January
          1, 1999.


                                   -21-

                                                             Form 10-Q

                      PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings and Regulatory Matters - Continued

          3)   Billing and metering services will be subject to
          competition beginning March 1, 2002, but permits the MPUC to
          establish an earlier date, no sooner than March 1, 2000.

          4)   The Company, through an unregulated affiliate, may market
          and sell electricity both within and outside its current
          service territory, without limitation.  Both CMP and BHE are
          limited to 33% of the load within their respective service
          territories, but may sell an unlimited amount outside their
          service territories.  Consumer-owned utilities are allowed to
          market and sell within their service territories, but the MPUC
          can limit or prohibit competition in their service territory,
          if the tax-exempt status of the consumer-owned utility is
          threatened.

          5)   The Company, through a regulated affiliate, will continue
          to provide transmission and distribution services which will
          be subject to continued regulation by the MPUC.

          6)   Maine electric utilities will be permitted a reasonable
          opportunity to recover legitimate, verifiable and unmitigable
          costs that are otherwise unrecoverable as a result of retail
          competition in the electric utility industry.  The MPUC shall
          determine these stranded costs by considering:

               a)   the utility's regulatory assets related to
               generation, i.e., the Company's unrecovered Seabrook
               investment;

               b)   the difference between net plant investment in
               generation assets compared to the market value for those
               assets; and

               c)   the difference between future contract payments and
               the market value of the purchased power contracts, i.e.,
               the W/S contract.

          By July 1, 1999, the MPUC will have estimated the stranded
          costs for the Company and the manner for the collection of
          these costs by the transmission and distribution company. 
          Customers reducing or eliminating their consumption of
          electricity by switching to self-generation, conversion to
          alternative fuels or utilizing demand-side management measures
          cannot be assessed exit or entry fees.  The MPUC shall include
          in the rates charged by the transmission and distribution


                                   -22-

                                                             Form 10-Q

                      PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings and Regulatory Matters - Continued

          utility decommissioning expenses for Maine Yankee.  In 2003
          and every three years thereafter until the stranded costs are
          recovered, the MPUC shall review and revaluate the stranded
          cost recovery.

          7)   All competitive providers of retail electricity must be
          licensed and registered with the MPUC and meet certain
          financial standards, comply with customer notification
          requirements, adhere to customer solicitation requirements and
          are subject to unfair trade practice laws.  Competitive
          electricity providers must have at least 30% renewable
          resources in their energy portfolios, including hydro-electric
          generation.

          8)   A standard-offer service will be available, ensuring
          access for all customers to reasonably priced electric power. 
          Unregulated affiliates of CMP and BHE providing retail
          electric power are prohibited from providing more than 20% of
          the load within their respective service territories under the
          standard offer service, while any unregulated affiliate of the
          Company does not have a similar restriction.

          9)   Unregulated affiliates of CMP and BHE marketing and
          selling retail electric power must adhere to specific codes of
          conduct, including, among others:

               a)   employees of the unregulated affiliate providing
               retail electric power must be physically separated from
               the regulated distribution affiliate and cannot be
               shared;

               b)   the regulated distribution affiliate must provide
               equal access to customer information;

               c)   the regulated distribution company cannot
               participate in joint advertising or marketing programs
               with the unregulated affiliate providing retail electric
               power;

               d)   the distribution company and its unregulated
               affiliated provider of retail electric power must keep
               separate books of accounts and records; and

               (e)  the distribution company cannot condition or tie the
               provision of any regulated service to the provision of


                                   -23-

                                                             Form 10-Q

                      PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings and Regulatory Matters - Continued

               any service provided by the unregulated affiliated
               provider of electricity.

               The MPUC shall determine the extent of separation
               required in the case of the Company to avoid cross-
               subsidization and shall consider all similar relevant
               issues as well as the Company's small size.

          10)  Employees, other than officers, displaced as a result of
          retail competition will be entitled to certain severance
          benefits and retraining programs.  These costs will be
          recovered through charges collected by the regulated
          distribution company.

          11)  Other provisions of the new law include provisions for:

               a)   consumer education;
               b)   continuation of low-income programs and demand side
                    management activities;
               c)   consumer protection provisions;
               d)   new enforcement authority for the MPUC to protect
                    consumers.

          The MPUC will conduct several rulemaking proceedings
          associated with the new restructuring law.  The Company is
          presently reviewing its business operations and the
          opportunities that the new restructuring law presents.  The
          Company cannot predict the value of the Company's stranded
          investment that the MPUC will determine.

          (b)  Maine Public Service Company, Request For Open Access
               Transmission Tariff, FERC Docket No. ER 95-836-000.

               On March 31, 1995, the Company filed an open access
               transmission tariff with the Federal Energy Regulatory
               Commission (FERC).  This tariff provides fees for various
               types and levels of transmission and transmission-related
               services that are required by transmission customers. 
               The tariff, as filed, substantially increases some of the
               fees for transmission services and provides separate fees
               for various transmission-related services.  On May 31,
               1995, the FERC approved the filed tariff, subject to
               refund.  The filing has been vigorously contested by the
               Company's wholesale customers.  On May 31, 1996, the FERC
               issued Order 888, a final rule on open transmission


                                   -24-

                                                             Form 10-Q

                      PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings and Regulatory Matters - Continued

               access and stranded cost recovery.  As a result the
               Company has refiled its tariff to comply with the Order. 
               A decision by the FERC regarding the fees under the
               Company's tariff is not expected until later in 1997. 
               The Company cannot predict the FERC's ultimate decision
               in this matter.

Item 4.   Submission of Matters to a Vote of Security Holders

          At the Company's Annual Meeting of Stockholders, held on May
          13, 1997, the only matter voted upon was the uncontested
          election of the following directors to serve until the 2000
          Meeting of Stockholders, each of whom received the votes
          shown:
                                                            Non-voters
                                                               and
          Nominee             For            Against        Abstentions

          R. E. Anderson      1,320,381      49,395         247,474
          N. L. Grass         1,320,279      49,497         247,474
          J. P. Levesque      1,319,315      50,461         247,474

Item 5.   Other Information

          None
Item 6.   Exhibits and Reports on form 8-K

          (a)  Exhibits - none

          (b)  A Form 8-K was filed on:  January 31, 1997, under Item 5,
               Other Events; February 14, 1997, under Item 5, Other
               Events; March 7, 1997, under Item 5, Other Events; March
               31, 1997, under Item 5, Other Events, and Item 7,
               Exhibits; and June 4, 1997 under Item 5, Other Events.













                                   -25-
                                                             Form 10-Q

                               SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.

                                   MAINE PUBLIC SERVICE COMPANY
                                          (Registrant)


Date: August 13, 1997               /s/  Larry E. LaPlante          
                                   Larry E. LaPlante, Vice President
                                   Finance, Administration and Treasurer






































                                   -26-
\TEXT>
/DOCUMENT>