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 September 30, 1995     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 an income statement for the quarter ended September
          30, 1995 and for the corresponding period of the preceding
          year; a balance sheet as of September 30, 1995, and as of
          December 31, 1994, the end of the Company's preceding fiscal
          year; and a statement of cash flows for the period January 1
          (beginning of the fiscal year) through September 30, 1995, 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 September 30, 1995 and 
          December 31, 1994, and the results of their operations and 
          their cash flows for the nine months ended September 30, 1995.




























                




                                      -2-
                 MAINE PUBLIC SERVICE COMPANY AND SUBSIDIARY 
                   CONDENSED CONSOLIDATED INCOME STATEMENTS
                                   (Unaudited)
               (Dollars in Thousands Except Per Share Amounts)

                                        Three Months Ended Nine Months Ended
                                           September 30,     September 30,
                                           1995     1994     1995     1994


Operating Revenues                        12,273   12,463   40,300   43,355
Operating Expenses
   Purchased Power                         7,970    7,281   23,460   21,061
   Other Operation and Maintenance           952    1,626    5,309    8,959
   Depreciation and Amortization (Note 2)  1,070    1,054    3,210    3,162
   Taxes Other Than Income                   363      373    1,197    1,202
   Provision for Income Taxes (Note 3)       502      559    2,071    2,795
        Total Operating Expenses          10,857   10,893   35,247   37,179
Operating Income                           1,416    1,570    5,053    6,176
Other Income (Deductions)
   Equity in Income of Associated Companies   91       92      267      272
   Allowance for Equity Funds Used During
      Construction                             1        2        3        5
   Other Income Taxes (Note 3)               (14)     (51)     (67)     (88)
   Other - Net                                33       56       33       38
Total                                        111       99      236      227
Income Before Interest Charges             1,527    1,669    5,289    6,403
Interest Charges
   Long-Term Debt and Notes Payable          938      963    2,821    2,892
   Less Allowance for Borrowed Funds                           
      Used During Construction                 0       (1)      (1)      (2)
Total                                        938      962    2,820    2,890
Net Income Available for Common Stock        589      707    2,469    3,513

Average Shares Outstanding (000's)         1,617    1,617    1,617    1,619
Earnings Per Share of Common Stock         $0.36    $0.44    $1.53    $2.17
Dividends Declared per Common Share        $0.46    $0.46    $1.38    $1.38





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









                                      -3-                                  
                    MAINE PUBLIC SERVICE COMPANY AND SUBSIDIARY
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)
                             (Dollars in Thousands)
                                              September 30, December 31,
ASSETS                                             1995        1994
Utility Plant
   Electric Plant in Service                       89,427     89,625
   Less Accumulated Depreciation                   41,162     39,714
      Net Electric Plant in Service                48,265     49,911
   Construction Work-in-Progress                    2,885        571
        Total                                      51,150     50,482
Investment in Associated Companies
   Maine Yankee Atomic Power Company                3,568      3,391
   Maine Electric Power Company, Inc.                  65         65
        Total                                       3,633      3,456
        Net Utility Plant and Investments          54,783     53,938
Current Assets
   Cash and Temporary Investments                     887      2,618
   Deposits for Interest and Dividends                744        744
   Accounts Receivable - Net                        4,705      5,070
   Unbilled Revenue                                 1,577      2,414
   Deferred Fuel and Purchased Energy               5,051        535
   Inventory                                        1,277      1,289
   Prepayments                                      1,202        537
      Total                                        15,443     13,207
Other Assets
   Recoverable Seabrook Costs                      35,785     37,074
   Regulatory Asset - SFAS 109 & 106               16,547     16,212
   Other                                            4,002      1,986
      Total                                        56,334     55,272
Total Assets                                      126,560    122,417

CAPITALIZATION AND LIABILITIES
Capitalization
   Common Shareholders' Equity
      Common Stock                                 13,071     13,071
      Paid-in Capital                                  38         38
      Retained Earnings                            40,090     39,853
      Treasury Stock, at cost                      (5,714)    (5,714)
         Total                                     47,485     47,248
    Long-Term Debt (less current maturities)       36,120     37,435
Current Liabilities
   Long-Term Debt Due Within One Year               1,315         65
   Accounts Payable                                 4,456      4,080
   Notes Payable                                    1,000          0
   Deferred Income Taxes Related to Fuel            2,015        214
   Dividends Declared                                 744        744
   Customer Deposits                                   69         74
   Taxes Accrued                                      210         92
   Interest Accrued                                   286      1,021
      Total                                        10,095      6,290



Deferred Credits
   Deferred Income Tax                             28,794     28,036
   Investment Tax Credits                             879        937
   Provision for Rate Refund                          213          0
   Miscellaneous                                    2,974      2,471
      Total                                        32,860     31,444
Total Capitalization and Liabilities              126,560    122,417

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











































                                      -4-                                  
                    MAINE PUBLIC SERVICE COMPANY AND SUBSIDIARY
                  CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
                                   (Unaudited)
                             (Dollars in Thousands)
                                                 Nine Months Ended
                                                    September 30, 
                                                    1995    1994
Cash Flow From Operating Activities
   Net Income                                      2,469    3,513

  Adjustments to Reconcile Net Income to Net Cash
     Provided by Operations
     Depreciation and Amortization                 1,929    1,881
     Amortization of Seabrook Costs                1,281    1,281
     Deferred Income Taxes                         2,453      (53)
     AFUDC                                            (3)      (7)
     Change in Deferred Regulatory and Debt       (1,976)   1,237
     Change in Refundable/Deferred Revenues          213     (120)
     Change in Benefit Obligation                    201      308
     Change in Current Assets and Liabilities     (4,215)    (478)
     Other                                           (65)      17
Net Cash Flow from Operating Activities            2,287    7,579

Cash Flow From Financing Activities
   Dividend Payments                              (2,232)  (2,232)
   Purchase of Common Stock                            0   (1,143)
   Drawdown of Tax-Exempt Bonds Proceeds               0    1,111
   Retirements on Long-Term Debt                     (65)     (65)
   Short Term Borrowings, Net                      1,000        0
   Non Utility Property & Other                        0       (2)
Net Cash Flow Used For Financing Activities       (1,297)  (2,331)

Cash Flow Used For Investing Activities
   Withdrawal of (Investment in) Restricted            0      170
   Investment in Electric Plant                   (2,721)  (2,918)
Net Cash Used For Investment Activities           (2,721)  (2,748)

Increase (Decrease) in Cash and Temporary In      (1,731)   2,500
Cash and Temporary Investments at Beginning        2,618    1,392
Cash and Temporary Investments at End of Per         887    3,892

Change in Current Assets and Liabilities Providing
   Cash From Operating Activities
      Accounts Receivable                            364    2,428
      Unbilled Revenue                               837      845
      Inventory                                       12      129
      Deferred Fuel and Purchased Energy Cos      (4,516)  (1,449)
      Other Current Assets                          (664)    (879)
      Accounts Payable & Accrued Expenses           (242)  (1,531)
      Other Current Liabilities                       (6)     (21)
   Total Change                                   (4,215)    (478)



Supplemental Disclosure of Cash Flow Information:
Cash Paid During the Year For:
   Interest                                        3,353    3,396
   Income Taxes                                      396    4,356

          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 1994 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 1994 Form 
          10-K.  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.

        2.  RECOVERY OF THE SEABROOK INVESTMENT
          The Company was an investor in the Seabrook Nuclear Power Project 
          Units 1 and 2 (the "Project")  with a 1.46056% ownership interest 
          through November 25, 1986.  On November 25, 1986, the Company's  
          investment of approximately $92.1 million was sold for proceeds of 
          $21.4 million.

          The Company's remaining investment in Seabrook Units 1 and 2, net 
          of disallowed costs and sale proceeds, is classified as Recoverable 
          Seabrook Costs.  These costs are principally being amortized over 
          thirty years.

          Recoverable Seabrook Costs at September 30, 1995 are as follows:

                                         (Dollars in Thousands)
                               Recoverable 
                              Seabrook Costs              Accumulated      
                                   (Net)      In Rates    Amortization     
    
       
          Unit 1 - Retail      $   26,382    $  37,141   $   (10,759)      
                 - Wholesale        6,246        8,018        (1,772)      
                 - Total           32,628       45,159       (12,531)
 
          Unit 2 - Retail           3,120        5,995        (2,875)      
                 - Wholesale           37        2,033        (1,996)      
                 - Total            3,157        8,028        (4,871)      
    
               TOTAL           $   35,785    $  53,187   $   (17,402) 
       
                                      -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 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    Nine Months Ended
                                       September 30,        September 30,  
                                      1995      1994        1995     1994
          Current income taxes     $  (440)  $   201     $  (315)  $ 2,936
          Deferred income taxes        976       429       2,511         5
          Investment credits           (20)      (20)        (58)      (58)

          Total income taxes       $   516   $   610     $ 2,138   $ 2,883 

          Allocated to:
          Operating Income         $   502   $   559     $ 2,071   $ 2,795
          Other income                  14        51          67        88 
 
          Total                    $   516   $   610     $ 2,138   $ 2,883 
 

          In 1993, the Company adopted the provisions of SFAS 109.  The    
          Company reported the implementation of the standard as a change in 
          accounting principle with no cumulative effect on prior earnings. 
          The adoption of SFAS 109 increased deferred income taxes by $17.3 
          million and also  resulted in the establishment of a net regulatory 
          asset of $17.3 million.  The following summarizes accumulated    
          deferred income taxes established on temporary differences under 
          SFAS 109 as of September 30, 1995 and December 31, 1994.
          
                                                   (Dollars in Thousands)
                                                September 30,   December 31,
                                                    1995            1994
          Seabrook                                $19,992         $20,214
          Property                                  9,172           8,985
          Regulatory expenses                       1,010             142
          Investment tax credits                     (622)           (622)
          Pension and postretirement benefits        (290)           (251)
          Other                                      (468)           (432)
          Net accumulated deferred income taxes   $28,794         $28,036 










                                      -7-

        4.  POSTRETIREMENT HEALTH CARE BENEFITS

           In 1993, the Company adopted Statement of Financial Accounting  
           Standards No. 106, "Employers' Accounting for Postretirement    
           Benefits Other Than Pensions"(SFAS 106), which requires         
           the accrual of postretirement benefits, such as health care     
           benefits, during the years an employee provides service to the  
           Company. The MPUC has adopted a rule which adopts SFAS 106 for  
           ratemaking.  The rule requires the Company to establish and  make 
           payments to an independent external trust fund for the purpose of 
           funding future postretirement health care costs at such time as 
           customers are paying for these costs in their rates. The MPUC has 
           issued an accounting order that allows the Company to account for 
           the implementation of SFAS 106 by deferring these expenses until 
           the Company's next base rate proceeding. Based on this accounting 
           order, the Company has established a regulatory asset of        
           approximately $1,013,000, representing deferred postretirement  
           benefits subject to future ratemaking.

           The Company provides certain health care benefits to eligible   
           employees and retirees.  All employees share in the cost of their 
           medical benefits, approximately 12% per year. Effective with    
           retirements after January 1,  1995, only retirees with at least 
           twenty years of service will be eligible for these benefits.  In 
           addition, eligible retirees will contribute to the cost of their 
           coverage starting at 60% for retirees with twenty years of service 
           with the contribution phasing out over the next ten years of    
           service so that retirees with thirty or more years of service do 
           not contribute toward their coverage.

        5. SUBSEQUENT EVENT

          As explained in the legal proceedings section of this Form       
          10-Q, item 1(c), under the rate plan stipulation approved on     
          November 13, 1995, the Company has agreed to write-off and not   
          recover from its retail customers the following amounts:

          a)  $4,845,812, net of income taxes, of its investment in
          Seabrook previously allocated to the wholesale customers.

          b)  $1,370,000, net of income taxes, in other plant
          investment, ie. rate base, except transmission plant,
          previously associated with the wholesale customers, and

          c)  $3,500,000 in deferred fuel, $2,104,000, net of income
          taxes.







                                      -8-

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

                          Results of Operations

          Earnings per share and related information for the third quarter
          and nine months ended September 30, 1995 along with the
          corresponding information for the previous year are as follows:

                                   Third Quarter       Nine Months Ended
                                   September 30,       September 30,    

                                   1995      1994      1995      1994

          Earnings per share       $ .36     $ .44     $1.53    $2.17

          Net income
          available for Common
          Stock - in Thousands     $  589    $  707    $2,469  $3,513

          For the third quarter of 1995 compared to the same quarter last
          year, the decrease in consolidated earnings per share of $.08 is
          attributable to the following:
                                                        Increase
                                                       (Decrease)

          Decrease in retail base revenues principally 
            due to 2,061 MWH decrease in sales.        $ (.09)

          Decrease in base revenues-sales for resale     (.09)

          Decrease in Maine Yankee capacity expenses      .20 

          Decreased base revenues due to decreased
            power marketing sales                        (.04)

          Other                                          (.06)
               Total                                   $ (.08)
               














                                      -9-

                                                               Form 10-Q
                     Part 1.  FINANCIAL INFORMATION

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

               Consolidated operating revenues for the quarter ended
               September 30, 1995 and 1994, are as follows:

                                   1995                     1994

(Dollars in Thousands)          $       MWH              $        MWH
Retail:                            
          Base                7,147                    7,349
          Fuel                2,789                    2,526    
               Total          9,936   111,765          9,875    113,826
Sales for Resale:
          Base                  628                      827
          Fuel                  962                      724
               Total          1,590    26,344          1,551     24,883
Total Primary Sales          11,526   138,109         11,426    138,709
Secondary Sales                 163     5,603            246     13,158
Other Revenues/Rev. Adjust.     584                      791           
Total Operating Revenues     12,273   143,712         12,463    151,867


          Primary sales for the third quarter of 1995 of 138,109 MWH
          decreased only 600 MWH from the same period last year.  Public
          authorities decreased by 1,877 MWH, of which 1,853 MWH is due
          to the closure of Loring Air Force Base in September 1994. 
          Residential sales decreased 955 MWH due primarily to the
          economic effect of the air base closure.  Partially offsetting
          these decreases were an increase of sales for resale of 1,461
          MWH, primarily Houlton Water Company, and an increase of 771
          MWH to commercial and industrial customers.

          Retail base revenues for the third quarter of 1995 were
          $7,147,000 compared to $7,349,000 for the same period of 1994,
          reflecting the decrease in retail sales discussed in the
          previous paragraph.  Although sales for resale for the quarter
          increased, as previously mentioned, base revenues decreased
          from $827,000 for the third quarter of 1994 to $628,000 for
          the third quarter of 1995.  The Company has fixed rate
          contracts with its three wholesale customers served in the
          United States, representing 83% of these sales.  Revenues
          collected from these customers are first allocated to the
          recovery of fuel costs.  With the extended outage of Maine
          Yankee which continued during the third quarter of 1995, fuel





                                     -10-

                                                               Form 10-Q
                     Part 1.  FINANCIAL INFORMATION

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



          revenues collected in the quarter were $238,000 higher than
          last year, reflecting the collection of the additional
          replacement power costs.  As previously reported by the
          Company in its 1994 Annual Report and Form 10-K, Houlton Water
          Company (Houlton), the Company's largest customer and a sales
          for resale customer, will not be served by the Company
          starting on January 1, 1996.  For the third quarter of 1995,
          Houlton represented 11.2% of total MWH sales and 8.7% of total
          operating revenues.  During the third quarter of 1994,
          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.  Since Maine Yankee was not available
          for the same period in 1995, secondary sales for the quarter
          were limited to Wyman No. 4 entitlements.

          For the third quarters ended September 30, 1995 and 1994,
          total operating expenses were $10,857,000 and $10,893,000,
          respectively.  The changes in operating expenses and energy
          sources are as follows:
                                                Increase/(Decrease)
          (Dollars in Thousands)                    $         MWH
          Purchased Power Expenses 
               Maine Yankee                      (694)      (63,062)
               Wheelabrator-Sherman               (29)       (1,673)
               NB Power                         1,186        59,949 
               System Purchases                   226         7,424 
                                                                    
                                                  689         2,638 
          Deferred Fuel                          (677) 
          Generating Expenses                      11       (12,295) 
          Other Operation & Maint. Expenses      (  8) 
          Depreciation and Amortization   
            Expenses                               16 
          Income Taxes                           ( 57)
          Taxes Other than Income                ( 10)                 
               Total                             ( 36)      ( 9,657) 

          
          Maine Yankee was out of service for the entire third quarter
          of 1995.  After experiencing problems with its steam
          generators starting in early January of 1995, Maine Yankee
          started its scheduled refueling and maintenance outage.  In



                                     -11-

                                                               Form 10-Q
                     Part 1.  FINANCIAL INFORMATION

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



          late March, Maine Yankee reported an increased rate of
          degradation of the plant's steam generator tubes.  After
          reviewing several options, Maine Yankee chose to sleeve all
          the steam generator tubes.  While this sleeving is done, Maine
          Yankee has reduced normal operating expenses.  Maine Yankee is
          expected to return to normal operations by the end of 1995. 
          As discussed in the next section, "Maine Yankee", the Company
          is deferring these sleeving costs as an element of its rate
          plan.  Hydro generation decreased by 12,213 MWH due to
          abnormally low rain fall during the quarter.  With the reduced
          hydro generation and the unavailability of Maine Yankee,
          purchases from NB Power and system purchases had to be
          increased by 59,949 MWH and 7,424 MWH, respectively.  Deferred
          fuel expenses decreased by $677,000, since fuel costs,
          principally Maine Yankee replacement power costs, exceeded
          collected fuel revenues.  Although the total other operation
          and maintenance expense decreased by $8,000, administrative
          and general expenses increased by $107,000 due to increased
          medical and regulatory expenses, while transmission expenses
          decreased $103,000.

          Maine Yankee

          Reference is made to the Company's Form 10-K dated March 29,
          1995, Part I, "Subsidiaries and Affiliated Companies," in
          which the Company reported that Maine Yankee was experiencing
          degradation of its steam generator tubes in the form of
          circumferential cracking.  During the refueling-and-
          maintenance shutdown that started in early February of 1995,
          Maine Yankee detected an increased rate of degradation of the
          Plant's steam generator tubes in excess of the number expected
          and started evaluating several courses of action.  The Company
          owns 5% of the Common Stock of Maine Yankee.  In 1994, Maine
          Yankee provided 43.3% of the Company's power requirements.

          On May 22, 1995, the Maine Yankee Board of Directors approved
          a plan to repair these tubes using welded sleeves.  Sleeving
          involves the inserting of a tube of slightly smaller diameter
          into the defective tube.  The sleeve is welded in place and
          acts as a new tube.  Sleeving is a proven technology and has
          been used at other nuclear facilities.  In addition to the
          extensive technical analysis on the steam generators performed



                                     -12-

                                                               Form 10-Q
                     Part 1.  FINANCIAL INFORMATION

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



          by the Maine Yankee technical staff, two independent studies
          on the overall condition of the plant were also undertaken. 
          Both studies concluded that the overall mechanical condition
          of the plant was very good.

          The sleeving of the steam generator tubes is estimated to cost
          approximately $40 million, with the Company's share being $2
          million.  Maine Yankee projects that the plant will return to
          service by the end of 1995.  While Maine Yankee is being
          repaired, the additional costs for replacement power averages
          $500,000 to $600,000 per month.  These replacement power costs
          have traditionally been subject to collection under the fuel
          adjustment clause.


          As explained in the Legal Proceedings Section of this Form 10-
          Q, item 1(c) under the rate plan stipulation, on November 13,
          1995, the Maine Public Utilities Commission (MPUC) approved
          the Company's rate plan.  As an element of the rate plan, the
          Company eliminated the fuel adjustment clause except for the
          cost of power purchased from the Wheelabrator-Sherman Energy
          Company, an independent power producer.  As part of the
          Stipulation, $3.5 million of the replacement power costs
          associated with the Maine Yankee outage will be written off in
          1995, $500,000 will be amortized over the four-year rate plan
          period, and an estimated $2 million deferred.  The rate plan
          also includes a mechanism to handle similar unexpected Maine
          Yankee outages during the rate plan period.   In addition, the
          Stipulation allows for the five-year amortization of the
          sleeving expenses.

          Caribou Units to be Inactivated

          Reference is made to the Company's Form 8-K dated July 13,
          1995 in which the Company reported that, at a regular meeting
          on July 7, 1995, the Board of Directors authorized placing on
          inactive status Steam Units 1 and 2 of the Company's Caribou
          Generating Facility in Caribou, Maine.  The Company will lay-
          up the Units by January 1, 1996 and expects that they will
          remain inactive for five years or longer.  These two units,
          which represent 23 MW of capacity, have become surplus to the
          Company's needs due to the closure of Loring Air Force Base



                                     -13-

                                                               Form 10-Q
                     Part 1.  FINANCIAL INFORMATION

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



          and the loss in 1996 of the Company's largest customer, the
          Houlton Water Company.  During the Units' inactive period, the
          plant equipment will be protected and maintained by the
          installation of a dehumidification system that will permit the
          Plant to return to service in approximately six months.

          Placing Steam Units 1 and 2 on inactive status will save the
          Company approximately $3.5 million over the next five years. 
          These savings result primarily from a savings in operation and
          maintenance expense.  The Company will be eliminating 12
          positions at the plant and has also announced a voluntary
          early retirement program that may avoid involuntary
          termination of some of the employees whose positions at the
          units have been eliminated.

          Steam Unit No. 1 went into operation in the early 1950s and
          Unit No. 2, in the mid 1950s.  The Company still has a diesel
          generation station of approximately 7 MW and a hydro facility
          of approximately 1 MW and will continue to employ 11 employees
          at the Caribou facility.

                          Financial Condition

          The accompanying Statements of Consolidated Cash Flows reflect
          the Company's liquidity and the net cash flows generated by or
          required for operating, financing and investing activities. 
          For purposes of the Statements of Consolidated Cash Flows, the
          Company considers all highly liquid securities to be cash
          equivalents.

          Net cash flows from operating activities were $2,287,000 for
          the first nine months of 1995.  For the period, $2,721,000 was
          invested in electric plant, $2,232,000 was paid in dividends
          and $65,000 was used to reduce long-term debt.  Cash flows for
          1995 have been impacted by the reduction in earnings and the
          previously mentioned replacement power purchases during the
          Maine Yankee outage.  The Company borrowed $1,000,000 through
          the revolving credit arrangement on September 28, 1995.   







                                     -14-
                                                               Form 10-Q
                     Part 1.  FINANCIAL INFORMATION

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



          For the nine months ended September 30, 1994, net cash flows
          from operating activities were $7,579,000 and the remaining
          $1,111,000 was withdrawn from its tax-exempt bond escrow
          account.  For the first nine months of 1994, the Company
          invested $2,918,000 in electric plant, paid $2,232,000 in
          dividends, reduced long term debt by $65,000 and purchased
          43,000 shares of common stock for $1,143,000 as the Company
          resumed the stock repurchase program.

          On May 1, 1995, the Company filed for a proposed increase in
          rates of approximately $5 million, and as an alternative, a
          five-year rate plan with the Maine Public Utilities Commission
          (MPUC).  See "Legal Proceedings", paragraph l(c) for a more
          complete description of a Stipulation approved by the parties
          in the case.  The rate plan will assist the Company in dealing
          with the economic uncertainties that lay ahead with the loss
          of Loring and Houlton.  The Plan provides stable, predictable
          rates for our customers, economic development rates to
          encourage investment in our service territory, and competitive
          returns for our shareholders.                            

























                                     -15-                                       
                                                              FORM 10-Q

                      PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings

          (a)  Maine Public Service Company, Application for Fuel Cost
               Adjustment, MPUC Docket No. 95-001

               On January 3, 1995, the Company submitted an application
               to the MPUC for an increase of approximately $1.4 million
               for the twelve month period ended March 31, 1996.  This
               increase will result in a total increase in the Company's
               retail rates of 3% effective April 1, 1995.  In order to
               limit the increase to 3%, the Company proposed to defer
               recovery of approximately $1.5 million in the cost of
               power purchased from the Wheelabrator-Sherman Energy
               Company.  The deferred amount would be combined with the
               additional deferrals of these costs as proposed under the
               Company's rate plan (see item (c) below).  On March 15,
               1995, the Company and the MPUC Staff signed a Stipulation
               that embodied the Company's proposal.  This Stipulation
               was approved by the MPUC on March 27, 1995.

          (b)  Houlton Water Company's Application for Certificate of
               Public Convenience and Necessity for Purchase of Firm
               Requirements Service from Central Maine Power Company,
               MPUC Docket No. 94-476

               Reference is made to the Company's Form 8-K of February
               13, 1995, in which the Company reported that its largest
               wholesale customer, the Houlton Water Company (HWC), had
               executed a long-term power contract with Central Maine
               Power Company (CMP) for HWC's power requirements
               beginning January 1, 1996 and that HWC was therefore
               terminating its contract with the Company effective
               December 31, 1995.
















                                     -16-
                                                              FORM 10-Q

                      PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings - Continued

               On December 29, 1994, HWC filed with the MPUC for
               approval of the purchase from CMP.  This proceeding was
               given the MPUC Docket No. 94-476.  On January 12, 1995,
               the Company requested permission to intervene in this
               proceeding.  This request was granted on February 1,
               1995.  The Company contended that the MPUC should not
               grant HWC's requested approval.  The Company based  its
               contention on CMP's intention to serve HWC's load from a
               facility that CMP acquired using State financing.  The
               Company believed that State energy and regulatory policy
               should prohibit CMP from using a facility supported by
               State financing to the detriment of the retail customers
               of any other utility.  

               On March 30, 1995, the MPUC issued its decision on the
               Company's argument.  The MPUC concluded that the statutes
               granted it the authority to approve the contract between
               CMP and HWC did not confer upon the MPUC authority to
               consider the effects of that contract upon the Company
               and its customers.  The MPUC also found that the statute
               granting CMP the right to use State funds to acquire the
               facility did not give the MPUC any authority to establish
               conditions concerning the operation of the facility.  As
               a result, the MPUC declined to take into account, in
               considering its approval of the CMP-HWC contract, the
               effect of that contract upon the Company and its
               customers.

          (c)  Multi-year Rate Plan is Approved for the Company by the
               MPUC in Maine Public Service Company Re: Proposed
               Increase in Retail Rates, MPUC Docket No. 95-052 

               On May 1, 1995, Maine Public Service Company filed with
               the Maine Public Utilities Commission a proposed increase
               in the rates it charges its retail customers.  The
               Company at the same time filed a five-year rate plan
               which, if approved, will result in new rates beginning in
               January, 1996 as detailed below.  Reference is made to
               the Company's Form 10-Q for the quarter ended June 30,
               1995 for a complete description of the Company's filed
               rate plan.






                                     -17-
                                                              FORM 10-Q

                      PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings - Continued
            
               In general, the Company's five-year rate plan provided
               for total annual average increases in retail rates,
               including fuel, in accordance with the following
               schedule:

               1996 -    4.5%           $2.2 million
               1997 -    4.5%            2.3 million
               1998 -    3.5%            1.9 million
               1999 -    3.0%            1.7 million
               2000 -    3.0%            1.7 million

               As part of its plan, the Company proposed to eliminate
               the annual fuel adjustment clause except for the cost of
               power purchased from the Wheelabrator-Sherman Energy
               Company (W/S).  The Company's plan included deferrals of
               up to $3 million annually of its W/S power costs and the 
               deferral of any uncollected fuel costs under the present
               fuel clause as approved in Docket 95-001 (see item (a)
               above) now estimated to be approximately $6 million.  The
               Company proposed to begin collecting the deferred costs,
               in an amount of up to $21 million, in 2001.

               The Company also proposed to write off and not recover in
               rates approximately $4.9 million, net of income taxes, of
               its remaining investment in the Seabrook project
               previously supported by rates to its wholesale customers,
               principally the Houlton Water Company, which will begin
               purchasing its full requirements from another supplier
               beginning January 1, 1996.

               In its rebuttal filing on September 22, 1995, the Company
               further proposed a sharing mechanism based on an allowed
               return on equity (ROE) of 11.75%.  Under this profit-
               sharing mechanism, earnings in excess of the proposed ROE
               are shared equally by stockholders and customers via rate
               reductions or reductions in the W/S deferral.  If
               earnings are less than 300 basis points below the
               proposed ROE, that loss is borne by shareholders; if
               earnings are less than 300 basis points above the ROE,
               both the excess would be retained by shareholders and
               half would be used to reduce the W/S deferral.  If
               earnings are more than 300 basis points below the
               proposed ROE, shareholders and customers would bear the
               loss equally; similarly, earnings of more than 300 basis
               points in excess of the ROE would be shared equally.


                                     -18-
                                                              FORM 10-Q

                      PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings - Continued

               The Company's rate plan was vigorously opposed by both
               the MPUC Staff and the Maine Public Advocate.  Both these
               parties took the position that no expenses or investment
               previously associated with any of the Company's sales to
               its wholesale customers should be borne by its retail
               customers.  As a result, the MPUC Staff, for example,
               proposed an increase of 4.4% in 1996, but only 2.2% for
               each year of the plan thereafter.  Moreover, neither the
               MPUC Staff nor the Public Advocate proposed allowing any
               deferral of the W/S expenses or deferred fuel.

               After extensive negotiations, the Company, the MPUC Staff
               and the Public Advocate filed a Stipulation with the
               Commission on November 6, 1995, which established a four-
               year rate plan for the Company.  The one remaining party
               to this proceeding, McCain Foods, Inc., opposed this 
               Stipulation.  After a hearing on November 13, 1995, the
               MPUC approved this Stipulation over the objection of
               McCain Foods, Inc.

               Under the terms of the Stipulation, the Company has the
               right to receive the following increases:

               January 1, 1996          4.4%           $2.1 million
               February 1, 1997         2.9%            1.4 million
               February 1, 1998         2.75%           1.4 million
               February 1, 1999         2.75%           1.4 million

               These increases will be subject to increases or decreases
               resulting from the operation of the profit-sharing
               mechanism, as well as the mandated costs and plant outage
               provisions described below.  The Company agreed that it
               will seek no other increases, for either base or fuel
               rates, except as provided under the terms of the rate
               plan.  There will be no fuel clause adjustments during
               the term of the plan.

               The Company has agreed to write off, in 1995, and not
               collect in retail rates the following amounts:

                    (a)  $4,845,812, net of income taxes, of its
               investment in Seabrook previously allocated to wholesale
               sales.

                    (b)  $1,370,000, net of income taxes, in other plant
               investment, i.e. rate base, except transmission plant,
               previously associated with the wholesale customers.
                                     -19-
                                                              FORM 10-Q

                      PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings - Continued

                    (c)  $3,500,000 ($2,104,000, net of income taxes) in
               deferred fuel (see item (a) above).

               The total amount of the write-offs, net of income taxes,
               in 1995 are approximately $8,320,000, or approximately
               $5.14 per share of common stock.
          
               As a condition of the Stipulation, the Company has filed
               for waivers for interest coverage tests under its
               revolving credit arrangement and the letter of credit
               supporting the public utility revenue bonds, 1991 series. 
               Unless these write-offs are considered extraordinary for
               purposes of the interest coverage tests, the Company will
               be in violation of these interest coverage tests.  The
               Company is discussing this matter with the participating
               banks and expects a resolution shortly. 

               The Company will also be permitted to defer an amount of
               $1.5 million annually of the costs of the W/S purchases
               over the term of the rate plan.  The approved rate plan
               provides that the Company can seek recovery of this
               deferred amount (up to a total of $6 million) in rates
               beginning in the year 2001, after the current term of the
               W/S contract has expired.  The Company will further
               amortize over each of the four years of the rate plan,
               $300,000, net of income taxes, in deferred fuel with the
               remainder, currently estimated to be $1,200,000, net of
               income taxes, being deferred until the year 2000.

               The approved rate plan further provides for the following
               treatment of the Maine Yankee steam generator sleeving
               costs (see Part 1, item 2 above under Maine Yankee):  the
               Company will amortize its share of these costs in equal
               amounts over a five-year period beginning on January 1,
               1996.  At the expiration of the rate plan, the remaining
               one-fifth of the costs will be amortized in 2000 subject
               to rate treatment at that time.

               The approved rate plan contains a profit-sharing
               mechanism based upon a target return of equity (ROE) of
               11%.  This profit-sharing mechanism will apply only to
               the last two rate increases scheduled to occur on
               February 1, 1998 and February 1, 1999.  As part of this
               review process, the target ROE will be subject to
               adjustment based on an index by averaging over a twelve-


                                     -20-
                                                              FORM 10-Q

                      PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings - Continued

               month period the dividend yields on Moody's group of 24
               electric utilities and Moody's utility bond yields.  The
               profit-sharing mechanism works as follows:

               If the Company's ROE exceeds the target ROE by less than
               300 basis points, this gain accrues entirely to
               shareholders.  Similarly, any loss of up to 300 basis
               points below the target ROE is borne entirely by the
               shareholders.

               All earnings of 300 or more basis points below the target
               ROE will be shared equally by shareholders and customers. 
               All earnings of 300 or more basis points above the target
               ROE must first be applied to reduce any of deferred W/S
               costs described above.  Any remaining excess earnings
               will be shared equally by customers and shareholders.

               The plan also allows the Company to terminate the rate
               plan and file for rate increases under traditional rate
               application procedures if its earnings fall 500 or more
               basis points below the target ROE during any twelve-month
               period during the term of the plan.

               The method agreed to by the parties for measuring earned
               ROE for the purpose of the profit-sharing mechanism and
               rate termination provision described above, allocates
               various revenues and expenses between the wholesale and
               retail jurisdictions using allocators that, in part,
               reflect the Company's 1994 allocations.  With the loss of
               sales to Houlton Water Company beginning in 1996, the
               Company estimates that the use of the agreed-upon
               allocators will produce a calculation of earnings for the
               profit-sharing and termination mechanisms that could be
               as much as 400 basis points above the Company's actual
               ROE.  Because of this disparity, the Stipulation provides
               that the agreed-upon allocation methodology will not
               apply if the use of those allocators will require the
               Company, using Generally Accepted Accounting Principles
               (GAAP) to write off any additional assets.  In that
               event, the parties have agreed to develop a different
               method for calculating profit-sharing and termination
               that will not require the Company to write off any
               additional assets.




                                     -21-
                                                              FORM 10-Q

                      PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings - Continued
              
               The plan also provides that if either Maine Yankee or
               Wheelabrator-Sherman cease operation for more than six
               months, the Company shall be allowed to adjust its
               allowed rate increases by 50% of the net costs or net
               savings resulting from the outage, together with any
               carrying costs on the balance deferred.  Any net costs or
               net savings during the first six months of the outage
               would accrue entirely to shareholders.

               The plan further contains a mechanism for allocating the
               savings resulting from any restructuring of the W/S
               contract during the term of the plan.  Any savings would
               be allocated first to the W/S deferred costs accumulating
               at $1.5 million annually, then to the deferred fuel
               balance as of December 31, 1995 being deferred until
               2000, next to eliminate any on-going W/S deferrals and
               finally, any savings that remain will be allocated 95% to
               customers and 5% to shareholders.

               The plan provides that the Company can flow through to
               customers at the time of the scheduled rate increases,
               increases or decreases resulting from certain mandated
               costs, such as tax or accounting changes, but not costs
               resulting from natural disasters.  To qualify, a mandated
               cost must receive MPUC approval, must be beyond the
               control of the Company's management, must effect the
               Company specifically or the electric utility generally
               and must exceed $300,000 in annual revenue requirements.

               The Stipulation also provides for a number of accounting
               orders.  Among these are orders:  permitting the Company
               to amortize deferred post-retirement benefits other than
               pension (SFAS 106) expenses in equal amounts over a ten-
               year period beginning January 1, 1996, along with the
               recovery of current year SFAS 106 costs; permitting the
               Company to continue rate base treatment for unrecovered
               plant costs and depreciation on the Caribou Steam Units
               as well as the deferral and amortization over five years
               of the reduction in force expenses (including pension
               expenses under SFAS 88) resulting from the closing of
               those units; and continued deferral and amortization of
               replacement power and capacity costs associated with
               Maine Yankee scheduled outages.  Finally, the Stipulation
               clarifies that the rate plan is not deregulation for
               accounting purposes and provides for the continuing


                                     -22-
                                                              FORM 10-Q

                      PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings - Continued

               recovery in rates of certain "regulatory assets", such as
               the retail portion of the Company's Seabrook investment,
               previously allowed by the MPUC.

               Moreover, on July 31, 1995, the MPUC approved a Partial
               Stipulation in this Docket signed by the Company, the
               MPUC Staff and the Public Advocate that would permit the
               Company the ability to offer reduced prices to industrial
               customers or targeted customer classes.  The Company
               filed a reduced rate for residential space heat customers
               and a special economic development rate for new
               commercial and industrial loads.  The MPUC approved the
               residential space heat rate on October 23, 1995.

          (d)  Peoples Heritage Bank v. Maine Public Service Company 
               U.S. District Court (D. ME) Civil Action No. 95-0180-B

               On September 18, 1995, Peoples Heritage Bank filed
               against the Company a civil action for declaratory and
               monetary relief seeking recovery for response costs,
               damages and attorneys fees incurred because of the
               release of hazardous substance at a site in Presque Isle,
               Maine.  In 1992, Peoples Heritage purchased the property
               and shortly thereafter discovered that the soil at the
               site was contaminated with polychlorinated biphenyls
               (PCBs) which it now alleges originated with two
               electrical transformers placed on the site by the
               Company.  Peoples Heritage claims to have spent in excess
               of $250,000 to remove the PCB contaminated soil and seeks
               reimbursement of this amount.

               The suit is brought pursuant to the Comprehensive
               Environmental Response, Compensation and Liability Act of
               1980 (CERCLA), the Federal Declaratory Judgment Act and
               under common law grounds of strict liability for
               abnormally dangerous activities, negligence and trespass. 
               
               The Company has denied liability in this matter but
               cannot predict the outcome of this action.








                                     -23-
                                                             FORM 10-Q

                      PART II.  OTHER INFORMATION


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

          None

Item 5.   Other Information

          Maine Yankee

Item 6.   Exhibits and Reports on Form 8-K

          (a)  Exhibits - none.

          (b)  Reports on Form 8-K - none.


                               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:  November 14, 1995           Larry E. LaPlante          
                                   Larry E. LaPlante, Vice President
                                   Finance and Treasurer











                                 -24-