September 28, 1995
                                             Upon Receipt
                                             Clifford J. Hebert, Jr.
                                             (617) 357-9590




                         EUA ANNOUNCES ONE-TIME CHARGE

   BOSTON - September 28 -- Eastern Utilities Associates ("EUA") announced
today that its subsidiary, EUA Cogenex Corporation ("Cogenex"), will
discontinue its cogeneration operations because they have not performed up to
expectations.  As a result of this decision, EUA's consolidated financial
statements for the quarter ended September 30, 1995 will include a one-time
after-tax charge of approximately $10.5 million or 52 cents per common share.
   Going forward, Cogenex will focus on providing integrated energy services,
a field in which it is an industry leader.  Donald G. Pardus, Chairman of EUA,
stated that "getting out of the cogeneration business will allow Cogenex to
devote maximum resources to the business segment that has been the most
profitable and holds the most growth potential for Cogenex, providing
integrated energy services to our commercial, institutional and industrial
customers."
   Cogenex has reached an agreement in principle to dispose of its operating
cogeneration portfolio to Ridgewood Electric Power Trust III.  Consummation of
the sale is subject to, among other things, the completion of a definitive
agreement.
   EUA is a Boston-based diversified energy services holding company whose
shares are traded on the New York Stock and Pacific Stock Exchanges.
Subsidiaries are Blackstone Valley Electric Co., Eastern Edison Co., Newport
Electric Corp., EUA Cogenex Corp., EUA Energy Investment Corp., EUA Ocean
State Corp., EUA Service Corp., and Montaup Electric Co.  Together, the
companies are known as the EUA System.
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