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

(Mark one)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)  OF  THE
     SECURITIES EXCHANGE  ACT OF 1934

For  the  quarterly period ended           June  30, 1995

                              OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF  THE
     SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to
Commission file number                           0-4117-1

                         IES UTILITIES INC.
    (Exact name of registrant as specified in its charter)

          Iowa                               42-0331370
(State or other jurisdiction of           (I.R.S. Employer
 incorporation or organization)            Identification No.)

IES Tower, Cedar Rapids, Iowa                    52401
(Address of principal executive offices)       (Zip Code)

Registrant's telephone number, including area code (319) 398-4411


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

Indicate  the  number of shares outstanding  of  each  of  the
issuer's classes of common stock, as of the latest practicable
date.


          Class                      Outstanding at July 31, 1995
Common Stock, $2.50 par value             13,370,788 shares


                       IES UTILITIES INC.

                             INDEX



  
                                                                Page No.


Part I.  Financial Information.



Item 1.   Consolidated Financial Statements.

     Consolidated Balance Sheets -
       June 30, 1995 and December 31, 1994                      3 - 4

     Consolidated Statements of Income -
       Three, Six and Twelve Months Ended
       June 30, 1995 and 1994                                     5

     Consolidated Statements of Cash Flows -
       Three, Six and Twelve Months Ended
       June 30, 1995 and 1994                                     6

      Notes to Consolidated Financial Statements                7 - 16

Item 2.   Management's Discussion and Analysis of the
          Results of Operations and Financial Condition.       17 - 35
 


Part II.  Other Information.                                   36 - 38



Signatures.                                                       39


                         PART 1. - FINANCIAL INFORMATION
ITEM 1. - CONSOLIDATED FINANCIAL STATEMENTS
                           CONSOLIDATED BALANCE SHEETS

                                                      June 30,
                                                       1995       December 31,
ASSETS                                              (Unaudited)       1994
                                                          (in thousands)
Property, plant and equipment, at original cost:
  Utility -
    Plant in service -
        Electric                                    $ 1,833,223    $ 1,798,059
        Gas                                             160,007        158,115
        Other                                           109,422         86,005
                                                      2,102,652      2,042,179
    Less - Accumulated depreciation                     925,984        880,888
                                                      1,176,668      1,161,291
    Leased nuclear fuel, net of amortization             46,522         49,731
    Construction work in progress                        70,049         73,339
                                                      1,293,239      1,284,361
  Other                                                   3,315          1,824
                                                      1,296,554      1,286,185

Current assets:
  Cash and temporary cash investments                     1,481          2,135
  Accounts receivable -
    Customer, less reserve                                8,423         12,051
    Other                                                 6,847          9,763
  Income tax refunds receivable                           6,402          3,450
  Production fuel, at average cost                       16,774         13,988
  Materials and supplies, at average cost                27,139         26,699
  Adjustment clause balances                                  0          1,433
  Regulatory assets                                      24,018         20,145
  Prepayments and other                                  10,991         19,630
                                                        102,075        109,294

Investments:
  Nuclear decommissioning trust funds                    39,971         33,779
  Cash surrender value of life insurance policies         3,183          2,915
  Other                                                   1,560          1,085
                                                         44,714         37,779

Other assets:
  Regulatory assets                                     196,777        192,955
  Deferred charges and other                             16,613         19,155
                                                        213,390        212,110
                                                    $ 1,656,733    $ 1,645,368


                           CONSOLIDATED BALANCE SHEETS (CONTINUED)

                                                      June 30,
                                                       1995       December 31,
CAPITALIZATION AND LIABILITIES                      (Unaudited)       1994
                                                          (in thousands)
Capitalization:
  Common stock - par value $2.50 per share -
    authorized 24,000,000 shares; 13,370,788
    shares outstanding                              $    33,427    $    33,427
  Paid-in surplus                                       279,042        279,042
  Retained earnings ($18,209,000 restricted
    as to payment of cash dividends)                    190,928        197,158
      Total common equity                               503,397        509,627
  Cumulative preferred stock - par value $50
    per share - authorized 466,406 shares;
    366,406 shares outstanding                           18,320         18,320
  Long-term debt                                        430,363        380,404
                                                        952,080        908,351

Current liabilities:
  Notes payable to associated companies                   5,781         18,495
  Short-term borrowings                                  87,000         37,000
  Capital lease obligations                              18,267         14,385
  Maturities and sinking funds                           50,140        100,140
  Accounts payable                                       46,589         70,354
  Accrued interest                                        8,934          9,438
  Accrued taxes                                          44,120         47,188
  Accumulated refueling outage provision                  2,236         15,196
  Adjustment clause balances                                477              0
  Provision for rate refund liability                    10,207              0
  Environmental liabilities                               5,400          5,428
  Other                                                  18,345         18,324
                                                        297,496        335,948

Long-term liabilities:
  Capital lease obligations                              28,256         35,346
  Environmental liabilities                              39,668         37,853
  Other                                                  48,042         46,724
                                                        115,966        119,923

Deferred credits:
  Accumulated deferred income taxes                     252,735        241,345
  Accumulated deferred investment tax credits            38,456         39,801
                                                        291,191        281,146

Commitments and contingencies (Note 5)


                                                    $ 1,656,733    $ 1,645,368


The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.



                                 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

                                                    For the                     For the                     For the
                                               Three Months Ended          Six Months Ended            Twelve Months Ended
                                                    June 30                     June 30                     June 30
                                               1995          1994          1995          1994          1995          1994
                                                                            (in thousands)
                                                                                            
Operating revenues:
    Electric                               $  133,048    $  123,071    $  249,626    $  246,989    $  539,964    $  548,578
    Gas                                        21,852        23,164        75,027        88,297       125,762       153,474
    Other                                       2,771         1,784         5,858         4,746        10,118         9,026
                                              157,671       148,019       330,511       340,032       675,844       711,078


Operating expenses:
    Fuel for production                        20,304        16,304        39,746        38,649        87,050        83,082
    Purchased power                            17,130        17,225        33,444        30,827        71,412        84,997
    Gas purchased for resale                   13,454        14,882        51,587        63,998        82,929       108,336
    Other operating expenses                   32,644        30,971        67,056        61,952       137,385       125,491
    Maintenance                                10,611        13,300        22,290        24,195        47,637        48,020
    Depreciation and amortization              20,728        19,160        41,317        38,320        78,313        72,409
    Taxes other than income taxes              12,356        11,400        24,731        23,066        44,215        43,885
                                              127,227       123,242       280,171       281,007       548,941       566,220


Operating income                               30,444        24,777        50,340        59,025       126,903       144,858


Interest expense and other:
   Interest expense                            11,731        10,232        22,190        20,760        43,001        40,790
   Allowance for funds used during
      construction                               -785        -1,000        -1,900        -1,877        -3,934        -2,951
   Miscellaneous, net                             588            21           595          -246          -406           330
                                               11,534         9,253        20,885        18,637        38,661        38,169


Income before income taxes                     18,910        15,524        29,455        40,388        88,242       106,689


Income taxes:
    Current                                     4,959         4,534         2,975        14,207        27,143        26,709
    Deferred                                    3,556         2,397        10,597         3,305         9,527        17,518
    Amortization of investment
      tax credits                                -672          -662        -1,345        -1,323        -2,668        -4,792
                                                7,843         6,269        12,227        16,189        34,002        39,435


Net income                                     11,067         9,255        17,228        24,199        54,240        67,254
Preferred dividend requirements                   229           229           457           457           914           914
Net income available for
      common stock                         $   10,838    $    9,026    $   16,771    $   23,742    $   53,326    $   66,340


The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.





                       CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

                                                            For the Three              For the Six               For the Twelve
                                                            Months Ended               Months Ended               Months Ended
                                                               June 30                   June 30                   June 30
                                                          1995         1994         1995         1994         1995         1994
                                                                                      (in thousands)
   
                                                                                                    
Cash flows from operating activities:
  Net income                                           $  11,067     $  9,255     $ 17,228     $ 24,199     $ 54,240     $ 67,254
  Adjustments to reconcile net income to net cash
   flows from operating activities -
     Depreciation and amortization                        20,728       19,160       41,317       38,320       78,313       72,409
     Principal payments under capital 
       lease obligations                                   3,311        4,078        5,867        8,505       13,608       13,102
     Deferred taxes and investment tax credits             2,884        1,735        9,252        1,982        6,859       12,726
     Refueling outage provision                           -4,432        2,914      -12,960        6,051       -6,475       -3,472
     Allowance for equity funds used during
       construction                                          -78         -612         -360       -1,153       -1,506       -1,737
     Other                                                 1,605          669        2,680        1,328        4,664        2,758
  Other changes in assets and liabilities -
     Accounts receivable                                   4,419        9,062        4,545       12,714        2,226         -250
     Production fuel, materials and supplies              -2,879          107       -2,931        2,881       -5,409        2,032
     Accounts payable                                    -14,178       -3,287      -18,959       -8,586       10,071        2,906
     Accrued taxes                                       -12,237       -2,081       -6,020          463          573       -6,279
     Provision for rate refunds                            2,207       -9,085       10,207       -8,670       10,207       -6,573
     Adjustment clause balances                           -2,325       -6,797        1,910       -2,073       -2,599       -3,457
     Gas in storage                                        1,948       -1,132        9,324        8,958        2,285       -2,209
     Other                                                -1,493        1,358        4,922        1,139        7,810        5,717
       Net cash flows from operating activities           10,547       25,344       66,022       86,058      174,867      154,927


Cash flows from financing activities:
  Dividends declared on common stock                     -10,000      -15,000      -23,000      -22,000      -53,000      -37,600
  Dividends declared on preferred stock                     -229         -229         -457         -457         -914         -914
  Dividends payable                                            0            0            0       -5,000            0            0
  Proceeds from issuance of long-term debt                     0            0       50,000            0       50,000      119,400
  Reductions in long-term debt                              -140         -224      -50,140         -224      -50,140      -19,624
  Net change in short-term borrowings                     49,237       17,266       37,286       -6,734       75,515      -60,982
  Principal payments under capital lease obligations      -2,556       -4,427       -6,218       -8,147      -14,375      -12,439
  Sale of utility accounts receivable                     -8,000         -200        2,000         -200        3,000       -3,500
    Net cash flows from financing activities              28,312       -2,814        9,471      -42,762       10,086      -15,659


Cash flows from investing activities:
  Construction and acquisition expenditures              -31,756      -29,342      -59,972      -48,334     -159,741     -119,378
  Nuclear decommissioning trust funds                     -1,383       -1,383       -2,766       -2,766       -5,532       -5,532
  Deferred energy efficiency costs                        -4,441       -3,772       -7,978       -7,171      -16,964      -13,016
  Other                                                   -2,288          -82       -5,431       -2,647       -1,926       -2,289
    Net cash flows from investing activities             -39,868      -34,579      -76,147      -60,918     -184,163     -140,215


Net increase (decrease) in cash and temporary
  cash investments                                        -1,009      -12,049         -654      -17,622          790         -947


Cash and temporary cash investments at
  beginning of period                                      2,490       12,740        2,135       18,313          691        1,638


Cash and temporary cash investments at
  end of period                                         $  1,481     $    691     $  1,481     $    691     $  1,481     $    691


Supplemental cash flow information:
  Cash paid during the period for -
    Interest                                            $ 13,819     $ 12,807     $ 22,073     $ 20,786     $ 41,132     $ 37,596
    Income taxes                                        $  8,533     $ 18,659     $ 11,383     $ 18,619     $ 29,256     $ 37,409

  Noncash investing and financing activities -
    Capital lease obligations incurred                  $  1,542     $    227     $  2,658     $    424     $ 16,531     $  1,632


The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.


    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

                         June 30, 1995


(1)  GENERAL:

      The  interim Consolidated Financial Statements have been
prepared   by   IES   Utilities  Inc.  (Utilities)   and   its
consolidated  subsidiary (collectively the  Company),  without
audit, pursuant to the rules and regulations of the Securities
and   Exchange   Commission.   Utilities  is  a   wholly-owned
subsidiary  of  IES Industries Inc. (Industries).   Utilities'
wholly-owned subsidiary is IES Ventures Inc. (Ventures), which
is  a  holding  company for unregulated investments.   Certain
information  and  footnote disclosures  normally  included  in
financial  statements  prepared in accordance  with  generally
accepted accounting principles have been condensed or  omitted
pursuant  to such rules and regulations, although the  Company
believes  that  the  disclosures  are  adequate  to  make  the
information presented not misleading.  In the opinion  of  the
Company,  the  Consolidated Financial Statements  include  all
adjustments,  which  are  normal  and  recurring  in   nature,
necessary  for  the  fair  presentation  of  the  results   of
operations  and  financial  position.  Certain  prior   period
amounts have been reclassified on a basis consistent with  the
1995 presentation.

       It  is  suggested  that  these  Consolidated  Financial
Statements  be  read  in  conjunction  with  the  Consolidated
Financial  Statements and the notes thereto  included  in  the
Company's Form 10-K for the year ended December 31, 1994.  The
accounting  and financial policies relative to  the  following
items have been described in those notes and have been omitted
herein  because they have not changed materially  through  the
date of this report:

     Summary of significant accounting policies
     Acquisition of Iowa service territory of Union  Electric Company (UE)
     Leases
     Utility accounts receivable (other than discussed in Note 3)
     Income taxes
     Benefit plans
     Preferred and preference stock
     Debt (other than discussed in Note 4)
     Estimated fair value of financial instruments
     Commitments  and contingencies (other than discussed in Note 5)
     Jointly-owned electric utility plant
     Segments of business

(2)  RATE MATTERS:
     (a)  1995 Gas Rate Case -

      On  August  4,  1995,  Utilities  applied  to  the  Iowa
Utilities Board (IUB) for an annual increase in gas  rates  of
$8.8  million, or 6.2%.  An interim increase of  $8.6  million
was requested.  The interim rate increase, the amount of which
will  be set by the IUB, will become effective within 90  days
of  the  filing  and  will  be collected  subject  to  refund.
Utilities  expects  that  the final rate  level  will  not  be
determined until the second quarter of 1996.

     (b)  1994 Electric Rate Case -

      In 1994, Utilities applied to the IUB for an increase in
retail  electric rates of approximately $26 million  annually,
or   5.2%.    Utilities'   proposal   included   approximately
$12 million in annual revenue requirement related to increased
recovery   levels   of   depreciation  expense   and   nuclear
decommissioning  expense  at the Duane  Arnold  Energy  Center
(DAEC), Utilities' nuclear generating facility.

     The Office of Consumer Advocate (OCA) filed a petition in
connection with this proceeding to reduce the rates for retail
electric  service  by  approximately  $27  million,  or  5.5%.
Intervenors, which primarily represent individual or groups of
customers,  also submitted filings in October 1994,  generally
objecting  to  particular elements of the price  increase  and
Utilities' price design proposals.

      In May 1995, the IUB issued an order requiring an annual
reduction in retail electric revenues of $15.8 million.  While
minor   movement  toward  pricing  consistency   between   the
different pricing zones will result, the proposals to increase
recovery  levels of nuclear depreciation expense  and  nuclear
decommissioning expense were rejected.  The Board  also  ruled
against  Utilities on issues of recovery for the full purchase
prices of Union Electric's Iowa service territory and smaller,
low-cost,  used generating plants, even though  customers  are
currently benefiting from the acquisitions.

      Utilities and several intervenors filed applications for
rehearing with the IUB requesting rehearing on various  issues
in the order and Utilities was granted rehearing on two of the
smaller issues.  The IUB denied rehearing on all other issues,
including  the intervenors' issues.  The IUB issued its  Order
Granting  Rehearing in Part and Denying Rehearing in  Part  on
June  30,  1995, which made minor adjustments to its  original
decision  resulting in a revised annual retail rate  reduction
of  approximately $14.4 million.  No petitions were filed with
the Iowa district court by any of the parties to the case.

     Utilities has recorded a pre-tax reserve for rate refund,
including  interest,  of  $10.2  million  at  June  30,  1995.
Utilities  is awaiting approval from the IUB on its compliance
tariff  filing and  continues to fully reserve for the  refund
and,  accordingly,  there will be no further  effect  on  1995
electric  revenues  and net income when the  refund  is  made.
Refunds to customers will be calculated from October 22, 1994,
the date of the OCA revenue reduction filing.

     (c)  1994 Energy Efficiency Cost Recovery Filing -

     The IUB has adopted rules that mandate Utilities to spend
2% of electric and 1.5% of gas gross retail operating revenues
for  energy efficiency programs.  Under provisions of the  IUB
rules,  Utilities  applied  in August  1994  to  the  IUB  for
recovery of approximately $23 million and $13 million for  the
electric  and  gas  programs, respectively, related  to  costs
incurred  through  1993 for such programs.   The  $36  million
total  for  the  electric  and gas programs  is  comprised  of
$21   million  of  direct  expenditures  and  carrying   costs
(recorded as a "Regulatory asset" in the Consolidated  Balance
Sheets, including $5.4 million as current), $7 million  for  a
return  on  the  expenditures over  the  recovery  period  and
$8  million for a reward based on a sharing of the benefits of
such programs.

      In  April  1995, the IUB issued its Final  Decision  and
Order  concerning  Utilities' energy efficiency  expenditures,
which  allows  Utilities to recover its  direct  expenditures,
carrying costs, and a return on its expenditures, as well as a
reward  of  approximately  $4  million  for  a  total  allowed
recovery of approximately $32 million.

     In May 1995, the OCA and an intervenor filed applications
for rehearing with the IUB concerning the amount of the reward
granted  by  the  IUB.  Since the identical issue  is  pending
before the court in another utility's proceeding, the OCA, the
intervenor  and  Utilities have agreed  to  be  bound  by  the
ultimate  decision  in the other utility's  court  proceeding.
Utilities believes that the chances of the reward amount being
materially  reduced are remote.  Recovery of energy efficiency
costs  will  be over a four-year period and began on  June  1,
1995.  The portion of the recoveries relating to the contested
reward amount are being collected subject to refund.

(3)  UTILITY ACCOUNTS RECEIVABLE:

     Utilities has entered into an agreement, which expires in
1999,  with  a  financial institution to  sell,  with  limited
recourse,   an  undivided  fractional  interest   of   up   to
$65  million  in its pool of utility accounts receivable.   At
June 30, 1995, $56 million was sold under the agreement.

(4)  DEBT:
     (a)  Long-Term Debt -

      In  March 1995, Utilities repaid at maturity $50 million
of  Series  W, 9.75% First Mortgage Bonds and, in  a  separate
transaction,  issued  $50 million of Collateral  Trust  Bonds,
7.65%, due 2000.

     (b)  Short-Term Debt -

      At  June 30, 1995, the Company had bank lines of  credit
aggregating $87.7 million, of which $77 million was being used
to support commercial paper (weighted average interest rate of
6.02%)  and $7.7 million to support certain pollution  control
obligations. Commitment fees are paid to maintain these  lines
and there are no conditions which restrict the unused lines of
credit.    In  addition  to  the  above,  Utilities   has   an
uncommitted  credit  facility  with  a  financial  institution
whereby it can borrow up to $40 million.  Rates are set at the
time  of  borrowing  and  no fees are paid  to  maintain  this
facility.   At  June 30, 1995, there was $10 million  borrowed
under this facility (weighted average interest rate of 6.08%).
At June 30, 1995, Utilities also had a letter of credit in the
amount  of  $3.4 million supporting two of its  variable  rate
pollution control obligations.

(5)  CONTINGENCIES:
     (a)  Environmental Liabilities -

      The  Company  has recorded environmental liabilities  of
approximately $45 million, including $5.4 million  as  current
liabilities, in its Consolidated Balance Sheets  at  June  30,
1995. The significant items are discussed below.

          Former Manufactured Gas Plant (FMGP) Sites

      Utilities  has  been named as a Potentially  Responsible
Party   (PRP)  by  various  federal  and  state  environmental
agencies for 28 FMGP sites, but believes it is not responsible
for  two  of these sites.  There are also six other sites  for
which  it may be designated as a PRP in the future.  Utilities
is  working  pursuant  to  the  requirements  of  the  various
agencies  to  investigate, mitigate,  prevent  and  remediate,
where  necessary,  damage  to property,  including  damage  to
natural resources, at and around the sites in order to protect
public health and the environment.  Utilities believes it  has
completed the remediation of five sites although it is in  the
process  of  obtaining  final  approval  from  the  applicable
environmental agencies on this issue for each site.  Utilities
is  in  various stages of the investigation and/or remediation
processes  for 19 sites and expects to begin the investigation
process in 1995 or 1996 for the other sites.

      Utilities has recorded environmental liabilities related
to  the  FMGP  sites  of approximately $33 million  (including
$4.6  million as current liabilities) at June 30, 1995.  These
amounts are based upon Utilities' best current estimate of the
amount to be incurred for investigation and remediation  costs
for those sites where the investigation process has been or is
substantially completed, and the minimum of the estimated cost
range  for  those  sites  where the investigation  is  in  its
earlier stages or has not started.  It is possible that future
cost  estimates will be greater than the current estimates  as
the  investigation  process proceeds and as  additional  facts
become known. Utilities may be required to monitor these sites
for  a  number of years upon completion of remediation, as  is
the  case with several of the sites for which remediation  has
been completed.

      Utilities has begun pursuing coverage for investigation,
mitigation, prevention, remediation, and monitoring costs from
its  insurance carriers and is investigating the potential for
third  party cost sharing for FMGP investigation and  clean-up
costs.   The  amount  of  shared  costs,  if  any,  cannot  be
reasonably  determined and, accordingly, no potential  sharing
has  been  recorded  at June 30, 1995.  Regulatory  assets  of
approximately  $33 million, which reflect the future  recovery
that  is  being provided through Utilities' rates,  have  been
recorded in the Consolidated Balance Sheets.  Considering  the
rate  treatment allowed by the IUB, management  believes  that
the  clean-up costs incurred by Utilities for these FMGP sites
will  not  have  a  material adverse effect on  its  financial
position or results of operations.

     (b)  Clean Air Act -

      The  Clean  Air  Act Amendments of 1990  (Act)  requires
emission  reductions of sulfur dioxide and nitrogen oxides  to
achieve reductions of atmospheric chemicals believed to  cause
acid  rain.  The provisions of the Act will be implemented  in
two  phases  with  Phase I affecting two of  Utilities'  units
beginning  in 1995 and Phase II affecting all units  beginning
in  the  year 2000. Utilities is in the process of  completing
the  modifications necessary to meet the Phase I  requirements
and has installed continuous emission monitors on all affected
units as required by the Act.

     Utilities expects to meet the requirements of Phase II by
switching   to   lower  sulfur  fuels  and   through   capital
expenditures  primarily related to fuel burning equipment  and
boiler modifications. Utilities estimates capital expenditures
of  approximately  $22.5 million, including  $4.4  million  in
1995, in order to meet the requirements of the Act.

      (c)   Federal Energy Regulatory Commission (FERC)  Order
            No. 636 -

      The FERC issued Order No. 636 (Order 636) in 1992, which
substantially  changed how Utilities manages its  gas  supply.
As  a  result of Order 636, Utilities has enhanced  access  to
competitively   priced   gas   supply   and   more    flexible
transportation services, however, Utilities is required to pay
certain  transition costs incurred and billed by its  pipeline
suppliers.

      Utilities'  three pipeline suppliers have  made  filings
with  the  FERC  to collect their respective known  transition
costs, and additional filings are expected.  At June 30, 1995,
Utilities  has recorded a liability of $5.8 million for  those
transition  costs that have been incurred by the pipelines  to
date,  including  $2.3 million expected to be  billed  through
June  1996.   Utilities is currently recovering the transition
costs  from its customers through its Purchased Gas Adjustment
Clauses  as  such  costs  are billed by  the  pipelines.   The
ultimate  level of costs to be billed to Utilities depends  on
the  pipelines' filings with the FERC and other future events,
including   the  market  price  of  natural  gas,  and   could
approximate  $10  million  more  than  the  amount   recorded.
However, Utilities believes any transition costs billed by its
pipeline  suppliers  would be recovered  from  its  customers,
based  upon regulatory treatment of these costs currently  and
similar  past  costs  by  the  IUB.   Accordingly,  regulatory
assets,  in amounts corresponding to the recorded liabilities,
have been recorded to reflect the anticipated recovery.

     (d)  Nuclear Insurance Programs -

      The  Price-Anderson Amendments Act of  1988  (1988  Act)
provides Utilities with the benefit of $8.9 billion of  public
liability coverage consisting of $200 million of insurance and
$8.7  billion  of potential retroactive assessments  from  the
owners  of nuclear power plants.  Based upon its ownership  of
the  DAEC,  under the 1988 Act, Utilities could be assessed  a
maximum  of $79.3 million per nuclear incident, with a maximum
of  $10  million per year (of which Utilities'  70%  ownership
portion  would  be approximately $55 million and  $7  million,
respectively)  if  losses relating to the  incidents  exceeded
$200  million.   These limits are subject to  adjustments  for
inflation in future years.

     Utilities is a member of Nuclear Mutual Limited (NML) and
Nuclear  Electric  Insurance  Limited  (NEIL),  which  provide
insurance coverage for the cost of certain property losses  at
nuclear  generating stations and for the cost  of  replacement
power  during certain outages.  Companies insured through  NML
and  NEIL  are  subject to retroactive premium adjustments  if
losses  exceed  accumulated reserve  funds.   NML  and  NEIL's
accumulated  reserve funds are currently  sufficient  to  more
than  cover  its  exposure in the event of a  single  incident
under  the  primary and excess property damage or  replacement
power   coverages.   However,  Utilities  could  be   assessed
annually a maximum of $4.4 million under NML, $8.5 million for
NEIL  property and $0.7 million for NEIL replacement power  if
losses  relating to accidents exceeded the accumulated reserve
funds.   Utilities is not aware of any losses that it believes
are likely to result in an assessment.

         ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS
     OF THE RESULTS OF OPERATIONS AND FINANCIAL CONDITION


      The following discussion analyzes significant changes in
the  components of net income and financial condition from the
prior  periods  for  IES Utilities Inc.  (Utilities)  and  its
consolidated    subsidiary   (collectively    the    Company).
Utilities' wholly-owned subsidiary is IES Ventures Inc., which
is a holding company for unregulated investments.

                     RESULTS OF OPERATIONS

      The  Company's  net income available  for  common  stock
increased  or  (decreased) $1.8 million,  ($7.0)  million  and
($13.0)  million  during  the  three,  six  and  twelve  month
periods, respectively, ended June 30, 1995.  The 1995 earnings
are  significantly  affected by the  recording  of  a  pre-tax
reserve  for rate refund, including interest, of $10.2 million
($8.0  million  in the first quarter and $2.2 million  in  the
second quarter) by Utilities as a result of the Iowa Utilities
Board's  (IUB) order in Utilities' recent electric rate  case.
See   Note   2(b)  of  the  Notes  to  Consolidated  Financial
Statements for a further discussion of the electric rate case.

      The  Company's operating income increased or (decreased)
$5.7  million, ($8.7) million and ($18.0) million  during  the
three,  six  and twelve month periods, respectively.   Reasons
for  the  changes in the results of operations  are  explained
further in the following discussion.

                       ELECTRIC REVENUES

      Electric  revenues and Kwh sales for Utilities increased
or  (decreased)  for  the  periods ended  June  30,  1995,  as
compared with the prior periods, as follows:

                                               Three       Six        Twelve
                                               Months     Months      Months
                                                      ($ in millions)
                                                    
Electric revenues                             $ 10.0     $  2.6      $ (8.6)
                                                    
Electric sales (excluding off-system sales):
    Residential and Rural                        7.9%       0.3%       (1.9%)
    Commercial                                   2.2        1.2         1.6
    Industrial                                  11.4        7.6        10.1
    Total                                        6.8%       2.8%        3.7%


      The  Kwh  sales for the quarter benefited significantly
from an annual true-up adjustment to unbilled sales recorded 
in the second quarter of 1995 and  were also favorably 
impacted by  warmer
than  normal weather. On June 21, 1995, Utilities  set  a  new
energy peak usage record with a peak of 1,796 megawatts  (this
record  was  subsequently broken during July 1995).   The  Kwh
sales  for  the six and twelve month periods also benefited 
from the unbilled sales adjustment, although to a lesser degree
than the three month period, but were unfavorably impacted  by
milder  than normal weather.  Under normal weather conditions,
total  sales (excluding off-system sales) would have increased
5.7%,  3.6%  and  4.8%  for the three, six  and  twelve  month
periods,   respectively.   The  growth  in  industrial   sales
continues to reflect the underlying strength of the economy as
industrial   expansions   in  Utilities'   service   territory
continue. 

      Utilities'  electric tariffs include  energy  adjustment
clauses (EAC) that are designed to currently recover the costs
of  fuel and the energy portion of purchased power billings to
customers.

      Electric  revenues include a pre-tax  reserve  for  rate
refund  ($8.0 million and $1.7 million recorded in  the  first
and  second  quarters  of  1995,  respectively)  recorded   by
Utilities  as  a result of the IUB order.  Approximately  $3.5
million  of the reserve recorded in the first quarter  relates
to  revenues collected in the fourth quarter of 1994. See Note
2(b)  of the Notes to Consolidated Financial Statements for  a
further discussion of the electric rate case.

      The  three and six month revenue increases were  due  to
higher  fuel  costs collected through the EAC,  the unbilled 
revenue adjustment and the  increased sales  (excluding
off-system sales).  These items were partially offset by  lower  off-
system  sales  and the rate refund reserve.  The twelve  month
decrease  is  due to lower off-system sales, the rate  reserve
and  the  effects  of  the mix of sales between  lower  margin
industrial customers and higher margin residential  and  rural
customers. These items were partially offset by the  increased
sales (excluding off-system sales), the recovery of fuel costs
through the EAC and the unbilled revenue adjustment.
                               
                         GAS REVENUES
                               
       Utilities'  gas  revenues  decreased  ($1.3)   million,
($13.3) million and ($27.7) million during the three, six  and
twelve  month periods, respectively.  Utilities' gas sales  in
therms increased or (decreased) for the periods ended June 30,
1995, as compared with the prior periods, as follows:

                                Three       Six        Twelve
                                Months     Months      Months
                                               
Residential                      4.4%       (6.2%)      (9.8%)
Commercial                       0.4        (5.7)       (9.3)
Industrial                     (33.8)      (27.9)      (17.9)
                                               
    Sales to consumers          (3.3)       (8.3)      (10.8)
                                               
Transported volumes             20.7        32.4        28.2
                                               
    Total                        4.7%       (0.7%)      (2.8%)

     Under normal weather conditions, sales to consumers would
have  decreased (15.2%), (4.1%) and (5.2%) during  the  three,
six and twelve month periods, respectively.

      Utilities' gas tariffs include purchased gas  adjustment
clauses (PGA) that are designed to currently recover the  cost
of  gas  sold.  Utilities' gas revenues decreased  during  all
periods  primarily  because  of   lower  gas  costs  recovered
through  the PGA and lower sales to consumers.  The  decreased
gas  cost recoveries are due to lower gas prices as well as  a
shift   in   the  sales  mix  between  industrial  sales   and
transported volumes; Utilities does not purchase the  gas  for
the transported volumes.

      On  August 4, 1995, Utilities applied to the IUB for  an
annual  increase in gas rates of $8.8 million, or  6.2%.   See
Note  2(a)  of the Notes to Consolidated Financial  Statements
for a further discussion.

                      OPERATING EXPENSES

      Fuel for production increased $4.0 million, $1.1 million
and  $4.0  million  during the three,  six  and  twelve  month
periods, respectively.  The three and six month increases  are
due  to higher fuel cost recoveries through the EAC, which are
included  in  fuel  for  production,  partially  offset  by  a
decrease  in  the amount of Kwh generation. The  Duane  Arnold
Energy  Center (DAEC), Utilities' nuclear generating facility,
was down from late February 1995 through late April 1995 for a
scheduled  refueling  outage.  There  was  no  such  refueling
outage  in  1994.  Generation at the  Company's  fossil-fueled
generating  stations  was also lower during  the  three  month
period  in  1995 due to outages at two stations.   The  twelve
month increase is primarily due to higher fuel cost recoveries
through  the EAC, although a slight increase in the amount  of
Kwh generation also contributed to the increase.

      Purchased power increased or (decreased) ($0.1) million,
$2.6  million  and ($13.6) million during the three,  six  and
twelve month periods, respectively.  The six month increase is
due to increased energy purchases, resulting from the decrease
in  generation, which were partially offset by lower  capacity
costs.   The twelve month decrease is primarily due  to  lower
energy   purchases,   although  lower  capacity   costs   also
contributed to the decrease.

      Gas  purchased  for  resale  decreased  ($1.4)  million,
($12.4) million and ($25.4) million during the three, six  and
twelve  month  periods, respectively, primarily due  to  lower
sales to consumers and lower natural gas prices.

      Other  operating expenses increased $1.7  million,  $5.1
million  and  $11.9 million during the three, six  and  twelve
month  periods, respectively.  Increases in labor and benefits
costs, former manufactured gas plant (FMGP) clean-up costs and
information technology costs contributed to the increases  for
all  three  periods.  The three and six month  increases  were
partially offset by lower nuclear operating costs at Utilities
while  higher  nuclear  operating  costs  contributed  to  the
increase during the twelve month period.

      Maintenance  expenses decreased ($2.7)  million,  ($1.9)
million  and ($0.4) million during the three, six  and  twelve
month   periods,  respectively,  primarily  due  to  decreased
expenditures   at   the  DAEC  and  Utilities'   fossil-fueled
generating  stations.  Increased labor costs for  all  periods
partially offset such decreases.

      Depreciation  and amortization increased  $1.6  million,
$3.0 million and $5.9 million during the three, six and twelve
month  periods primarily because of increases in utility plant
in  service.  Depreciation and amortization expenses  for  all
periods reflect an annual amount of $5.5 million for the  DAEC
decommissioning provision, which is collected  through  rates.
(The  annual recovery level will be increased to $6.0  million
once the final rates from Utilities' recent electric rate case
are implemented later this year).

     The staff of the Securities and Exchange Commission (SEC)
has questioned certain of the current accounting practices  of
the  electric  utility  industry  regarding  the  recognition,
measurement  and classification of decommissioning  costs  for
nuclear  generating  stations in the financial  statements  of
electric  utilities.   In  response to  these  questions,  the
Financial  Accounting  Standards Board (FASB)  has  agreed  to
review   the   accounting   for   removal   costs,   including
decommissioning.    If  current  electric   utility   industry
accounting  practices  for such decommissioning  are  changed:
(1)  annual provisions for decommissioning could increase, (2)
the estimated cost for decommissioning could be recorded as  a
liability  rather  than as accumulated depreciation,  and  (3)
trust  fund  income  from the external decommissioning  trusts
could  be  reported  as investment income  rather  than  as  a
reduction  to  decommissioning expense.  If such  changes  are
required,  Utilities  believes that  there  would  not  be  an
adverse  effect  on  its  financial  position  or  results  of
operations based on current rate making practices; the Company
cannot predict future rate making practices.

                  INTEREST EXPENSE AND OTHER

     Interest expense increased $1.5 million, $1.4 million and
$2.2  million during the three, six and twelve month  periods,
respectively.  The three and six month increases are primarily
due  to  an increase in the average amount of short-term  debt
outstanding  and interest related to Utilities' rate  reserve.
The  twelve month increase is primarily because of an increase
in  the  average  amount  of  short-term  and  long-term  debt
outstanding.

      Income  taxes  increased  or (decreased)  $1.6  million,
($4.0)  million and ($5.4) million during the three,  six  and
twelve  month periods, respectively.  The three month increase
is consistent with the change in income before  income
taxes.  The decreases for the six and twelve month periods are
due  to  a
decrease  in  pre-tax  income partially  offset  by  a  higher
effective  income  tax  rate  resulting  from  the  effect  of
property  related  temporary differences  for  which  deferred
income  taxes have not been provided under current rate making
principles,  which  are  now becoming payable  and  are  being
recovered from ratepayers.

                LIQUIDITY AND CAPITAL RESOURCES

       The   Company's  capital  requirements  are   primarily
attributable   to  Utilities'  construction   programs,   debt
maturities and sinking fund requirements.  The Company's  pre-
tax  ratio of earnings to fixed charges was 3.05 and 3.62  for
the  twelve  months  ended June 30, 1995 and  June  30,  1994,
respectively.   Cash flows from operating activities  for  the
twelve months ending June 30, 1995, were $175 million.

      The Company anticipates that future capital requirements
will  be  met  by cash generated from operations and  external
financing.   The  level of cash generated from  operations  is
partially  dependent  upon  economic  conditions,  legislative
activities, environmental matters and timely rate  relief  for
Utilities.   (See  Notes 2 and 5 of the Notes to  Consolidated
Financial Statements).

     Access to the long-term and short-term capital and credit
markets   is   necessary  for  obtaining   funds   externally.
Utilities' debt ratings are as follows:


                          Moody's        Standard & Poor's
                                       
     Long-term debt         A2                   A
     Short-term debt        P1                  A1


     As a result of the IUB's final order in Utilities' recent
electric  rate case, Utilities will be required to reduce  its
retail  electric rates by an annual impact of  $14.4  million.
(See   Note  2(b)  of  the  Notes  to  Consolidated  Financial
Statements for a further discussion).  In reaction to the rate
reduction, Moody's downgraded Utilities' long-term debt rating
to  A2 from A1 on June 1, 1995. The new rating remains in  the
upper  levels of Moody's nine-tier rating system which  ranges
from Aaa down to C.

      The  Company's liquidity and capital resources  will  be
affected  by  environmental and legislative issues,  including
the ultimate disposition of remediation issues surrounding the
Company's  environmental liabilities, the  Clean  Air  Act  as
amended  and  FERC Order 636, as discussed in Note  5  of  the
Notes  to Consolidated Financial Statements.  Consistent  with
rate  making  principles of the IUB, management believes  that
the  costs  incurred for the above matters  will  not  have  a
material  adverse effect on the financial position or  results
of operations of the Company.

      The  IUB  has  adopted rules which require Utilities  to
spend  2%  of electric and 1.5% of gas gross retail  operating
revenues  annually  for  energy efficiency  programs.   Energy
efficiency  costs in excess of the amount in the  most  recent
electric  and gas rate cases are being recorded as regulatory
assets  by  Utilities.   At  June  30,  1995,  Utilities   had
$42  million of such costs recorded as regulatory assets.   On
June  1,  1995,  Utilities began its recovery of  those  costs
incurred  through  1993.   See  Note  2(c)  of  the  Notes  to
Consolidated Financial Statements for a further discussion.

             CONSTRUCTION AND ACQUISITION PROGRAM

       The  Company's  construction  and  acquisition  program
anticipates  expenditures of approximately  $163  million  for
1995,  of which approximately 32% represents expenditures  for
electric   transmission  and  distribution   facilities,   23%
represents   fossil-fueled   generation   expenditures,    15%
represents  expenditures for steam distribution plant  and  9%
represents nuclear generation expenditures.  The remaining 21%
represents    miscellaneous   electric,   gas   and    general
expenditures.   In  addition to the  $163  million,  Utilities
anticipates  expenditures of $13 million  in  connection  with
mandated  energy efficiency programs.  Substantial commitments
have been made in connection with all such expenditures.   The
Company  had  construction  and  acquisition  expenditures  of
approximately  $60 million for the six months ended  June  30,
1995.   Utilities is currently reviewing its construction  and
acquisition  program  with  the  objective  of  reducing   the
anticipated 1995 expenditures by approximately $13 million.

      The  Company's  levels of construction  and  acquisition
expenditures  are  projected  to  be  $167  million  in  1996,
$146 million in 1997, $170 million in 1998 and $182 million in
1999.   It is estimated that approximately 80% of construction
and  acquisition expenditures will be provided  by  cash  from
operating activities (after payment of dividends) for the five-
year period 1995-1999.

      Capital  expenditure and investment and financing  plans
are  subject  to  continual review  and  change.  The  capital
expenditure   and   investment   programs   may   be   revised
significantly  as  a  result of many considerations  including
changes in economic conditions, variations in actual sales and
load   growth   compared   to   forecasts,   requirements   of
environmental,  nuclear  and  other  regulatory   authorities,
acquisition  opportunities,  the  availability  of   alternate
energy  and  purchased power sources, the  ability  to  obtain
adequate  and  timely rate relief, escalations in construction
costs and conservation and energy efficiency programs.

                      LONG-TERM FINANCING

     Other than Utilities' periodic sinking fund requirements,
which   Utilities  intends  to  meet  by  pledging  additional
property,  approximately $124 million of long-term  debt  will
mature  prior  to December 31, 1999.  The Company  intends  to
refinance  the majority of the debt maturities with  long-term
securities.

      In  March 1995, Utilities repaid at maturity $50 million
of  Series  W, 9.75% First Mortgage Bonds and, in  a  separate
transaction,  issued  $50 million of Collateral  Trust  Bonds,
7.65%, due 2000.

      Utilities has entered into an Indenture of Mortgage  and
Deed of Trust dated September 1, 1993 (New Mortgage).  The New
Mortgage  provides for, among other things,  the  issuance  of
Collateral Trust Bonds upon the basis of First Mortgage  Bonds
being  issued by Utilities.  The lien of the New  Mortgage  is
subordinate  to  the lien of Utilities' first mortgages  until
such  time as all bonds issued under the first mortgages  have
been retired and such mortgages satisfied. Accordingly, to the
extent  that  Utilities issues Collateral Trust Bonds  on  the
basis  of  First  Mortgage  Bonds, it  must  comply  with  the
requirements  for the issuance of First Mortgage  Bonds  under
Utilities'  first  mortgages.  Under  the  terms  of  the  New
Mortgage, Utilities has covenanted not to issue any additional
First  Mortgage  Bonds  under its first  mortgages  except  to
provide the basis for issuance of Collateral Trust Bonds.

      The  Indentures pursuant to which Utilities issues First
Mortgage  Bonds  constitute direct first mortgage  liens  upon
substantially all tangible public utility property and contain
covenants which restrict the amount of additional bonds  which
may be issued.  At June 30, 1995, such restrictions would have
allowed  Utilities to issue $330 million of  additional  First
Mortgage Bonds. Utilities has received authority from the FERC
to  issue $250 million of long-term debt, of which $50 million
was  used  in  March  1995  to issue Collateral  Trust  Bonds.
Utilities  expects to replace First Mortgage Bonds  Series  X,
that matures in October 1995, with other long-term securities.

      The Articles of Incorporation of Utilities authorize and
limit  the aggregate amount of additional shares of Cumulative
Preferred  Stock and Cumulative Preference Stock that  may  be
issued.   At  June 30, 1995, Utilities could  have  issued  an
additional 700,000 shares of Cumulative Preference  Stock  but
no additional shares of Cumulative Preferred Stock.

      The Company's capitalization ratios at June 30, were  as
follows:

                              1995          1994
                                      
     Long-term debt            48%           48%
     Preferred stock            2             2
     Common equity             50            50
                              100%          100%


               The  1995  and 1994 ratios  each  include
        $50  million of long-term debt due in less  than
        one  year because it was the Company's intention
        to refinance the debt with long-term securities.


                     SHORT-TERM FINANCING

      For  interim financing, Utilities is authorized  by  the
FERC  to issue, through 1996, up to $200 million of short-term
notes.   In addition to providing for ongoing working  capital
needs,  this  availability  of short-term  financing  provides
Utilities flexibility in the issuance of long-term securities.
At   June  30,  1995,  Utilities  had  outstanding  short-term
borrowings of $92.8 million, including $5.8 million  of  notes
payable to associated companies.

     Utilities has an agreement, which expires in 1999, with a
financial  institution  to  sell, with  limited  recourse,  an
undivided fractional interest of up to $65 million in its pool
of  utility accounts receivable.  At June 30, 1995,  Utilities
had sold $56 million under the agreement.

      At  June 30, 1995, the Company had bank lines of  credit
aggregating $87.7 million, of which $77 million was being used
to support commercial paper (weighted average interest rate of
6.02%)  and $7.7 million to support certain pollution  control
obligations.  Commitment fees are paid to maintain these lines
and there are no conditions which restrict the unused lines of
credit.    In  addition  to  the  above,  Utilities   has   an
uncommitted  credit  facility  with  a  financial  institution
whereby it can borrow up to $40 million.  Rates are set at the
time  of  borrowing  and  no fees are paid  to  maintain  this
facility.   At  June 30, 1995, there was $10 million  borrowed
under this facility (weighted average interest rate of 6.08%).
At June 30, 1995, Utilities also had a letter of credit in the
amount  of  $3.4 million supporting two of its  variable  rate
pollution control obligations.

                     ENVIRONMENTAL MATTERS

      Utilities  has  been named as a Potentially  Responsible
Party   (PRP)  by  various  federal  and  state  environmental
agencies for 28 FMGP sites, but believes it is not responsible
for  two  of these sites.  There are also six other sites  for
which  it may be designated as a PRP in the future.  Utilities
is  working  pursuant  to  the  requirements  of  the  various
agencies  to  investigate, mitigate,  prevent  and  remediate,
where  necessary,  damage  to property,  including  damage  to
natural resources, at and around the sites in order to protect
public health and the environment.  Utilities believes it  has
completed the remediation of five sites although it is in  the
process  of  obtaining  final  approval  from  the  applicable
environmental agencies on this issue for each site.  Utilities
is  in  various stages of the investigation and/or remediation
processes  for 19 sites and expects to begin the investigation
process in 1995 or 1996 for the other sites.

      Utilities has recorded environmental liabilities related
to  the  FMGP  sites  of approximately $33 million  (including
$4.6  million as current liabilities) at June 30, 1995.  These
amounts are based upon Utilities' best current estimate of the
amount to be incurred for investigation and remediation  costs
for those sites where the investigation process has been or is
substantially completed, and the minimum of the estimated cost
range  for  those  sites  where the investigation  is  in  its
earlier stages or has not started.  It is possible that future
cost  estimates will be greater than the current estimates  as
the  investigation  process proceeds and as  additional  facts
become known. Utilities may be required to monitor these sites
for  a  number of years upon completion of remediation, as  is
the  case with several of  the sites for which remediation has
been completed.

      Utilities has begun pursuing coverage for investigation,
mitigation, prevention, remediation and monitoring costs  from
its  insurance carriers and is investigating the potential for
third  party cost sharing for FMGP investigation and  clean-up
costs.   The  amount  of  shared  costs,  if  any,  cannot  be
reasonably  determined and, accordingly, no potential  sharing
has  been  recorded  at June 30, 1995.  Regulatory  assets  of
approximately  $33 million, which reflect the future  recovery
that  is  being provided through Utilities' rates,  have  been
recorded in the Consolidated Balance Sheets.  Considering  the
rate  treatment allowed by the IUB, management  believes  that
the  clean-up costs incurred by Utilities for these FMGP sites
will  not  have  a  material adverse effect on  its  financial
position or results of operations.

      The  Clean  Air  Act Amendments of 1990  (Act)  requires
emission  reductions of sulfur dioxide and nitrogen oxides  to
achieve reductions of atmospheric chemicals believed to  cause
acid  rain.  The provisions of the Act will be implemented  in
two  phases  with  Phase I affecting two of  Utilities'  units
beginning  in 1995 and Phase II affecting all units  beginning
in  the  year 2000. Utilities is in the process of  completing
the  modifications necessary to meet the Phase I  requirements
and has installed continuous emission monitors on all affected
units as required by the Act.

     Utilities expects to meet the requirements of Phase II by
switching   to   lower  sulfur  fuels  and   through   capital
expenditures  primarily related to fuel burning equipment  and
boiler    modifications.     Utilities    estimates    capital
expenditures  of approximately $22.5 million,  including  $4.4
million in 1995, in order to meet the requirements of the Act.

      In  January  1995, Utilities received an  Administrative
Compliance  Order  (ACO) from the United States  Environmental
Protection  Agency  (EPA)  alleging  noncompliance  with,  and
requiring Utilities to satisfy, certain monitoring, reporting,
and recordkeeping requirements of the Acid Rain Program at its
Phase  II  units.   On  June 23, 1995, Utilities  received  an
Administrative Penalty Order from the EPA assessing a  penalty
in  the  amount  of  $146,000 for the  alleged  noncompliance.
Pursuant  to  Utilities' good faith efforts to  cooperate  and
informal  settlement  negotiations,  the  EPA  has  informally
agreed to reduce the amount of the penalty.  Utilities and EPA
are currently negotiating a Supplemental Environmental Project
(SEP) which contemplates reducing the cash penalty payment  to
$25,630  and  requiring  Utilities to  retire  589  acid  rain
allowances, valued at $76,570.

     The National Energy Policy Act of 1992 requires owners of
nuclear  power  plants  to  pay a special  assessment  into  a
"Uranium Enrichment Decontamination and Decommissioning Fund."
The assessment is based upon prior nuclear fuel purchases and,
for the DAEC, averages $1.4 million annually through 2007,  of
which  Utilities'  70%  share is $1.0 million.   Utilities  is
recovering  the costs associated with this assessment  through
its electric fuel adjustment clauses over the period the costs
are  assessed.  Utilities' 70% share of the future assessment,
$12.0  million  payable through 2007, has been recorded  as  a
liability   in  the  Consolidated  Balance  Sheets,  including
$0.8  million included in "Current liabilities - Environmental
liabilities,"  with  a  related  regulatory  asset   for   the
unrecovered amount.

       The   Nuclear   Waste  Policy  Act  of  1982   assigned
responsibility  to  the U.S. Department  of  Energy  (DOE)  to
establish  a  facility for the ultimate  disposition  of  high
level  waste and spent nuclear fuel and authorized the DOE  to
enter  into  contracts with parties for the disposal  of  such
material  beginning in January 1998.  Utilities  entered  into
such a contract and has made the agreed payments to DOE.   The
DOE,  however,  has  experienced  significant  delays  in  its
efforts  and material acceptance is now expected to  occur  no
earlier  than 2010.  Utilities has been storing spent  nuclear
fuel  on-site  since plant operations began in  1974  and  has
current  on-site  capability to store spent fuel  until  2002.
Utilities  is  aggressively reviewing options  for  additional
spent nuclear fuel storage capability, including expanding on-
site  storage and pursuing other off-site storage.   Utilities
is  also  supporting  legislation currently  before  the  U.S.
Congress to resolve the lack of progress by the DOE.

      The Low-Level Radioactive Waste Policy Amendments Act of
1985 mandated that each state must take responsibility for the
storage  of  low-level radioactive waste produced  within  its
borders.   The State of Iowa has joined the Midwest Interstate
Low-Level  Radioactive  Waste  Compact  Commission  (Compact),
which is planning a storage facility to be located in Ohio  to
store waste generated by the Compact's six member states.   At
June  30,  1995, Utilities has prepaid costs of  approximately
$1  million   to  the  Compact  for the  building  of  such  a
facility.   Currently,  Utilities  is  storing  its  low-level
radioactive  waste  generated at the DAEC  on-site  until  new
disposal arrangements are finalized among the Compact members.
A  Compact disposal facility is anticipated to be in operation
in   approximately  ten  years.   On-site  storage  capability
currently  exists for low-level radioactive waste expected  to
be  generated  until the Compact facility is  able  to  accept
waste  materials.  In addition, the Barnwell,  South  Carolina
disposal  facility  has  temporarily  reopened  and  Utilities
intends  to  ship  to Barnwell the majority of  the  low-level
radioactive waste it has accumulated on-site, as well as waste
it produces in the future as long as the Barnwell site remains
open, thereby minimizing the amount of waste stored on-site.

      The  possibility that exposure to electric and  magnetic
fields  (EMF) emanating from power lines, household appliances
and  other  electric  sources may  result  in  adverse  health
effects   has   been   the   subject  of   increased   public,
governmental,  industry and media attention.   A  considerable
amount of scientific research has been conducted on this topic
without  definitive results.  Research is continuing in  order
to resolve scientific uncertainties.

                         OTHER MATTERS

      The National Energy Policy Act of 1992 addresses several
matters  designed  to  promote  competition  in  the  electric
wholesale  power  generation market, including  mandated  open
access   to  the  electric  transmission  system  and  greater
encouragement    of   independent   power    production    and
cogeneration.  On March 29, 1995, the FERC issued a Notice  of
Proposed Rulemaking pursuant to which FERC proposes to promote
competition in the electric utility industry by requiring that
each  transmission  owning  utility  must  1)  implement  non-
discriminatory tariffs allowing open access to that  utility's
transmission  facilities by wholesale buyers  and  sellers  of
electricity   and  2)  charge  itself  the  same   price   for
transmission  and  ancillary  services  as  it  charges  third
parties  under  the tariffs.  Utilities filed conforming  pro-
forma  open access transmission tariffs with the FERC on  July
24,  1995.  The geographic position of Utilities' transmission
system could provide revenue opportunities in the open access
environment.   FERC  would  allow  for  recovery  of   certain
stranded  costs  (i.e.  assets the costs  of  which  could  be
rendered otherwise unrecoverable as the result of open access)
in  connection with wholesale transmission. The Company cannot
predict the final regulations that may be adopted.

      The  IUB recently initiated a Notice of Inquiry  (Docket
No.  NOI-95-1) on the subject of "Emerging Competition in  the
Electric  Utility Industry."  A one-day roundtable  discussion
was  held  to address all forms of competition in the electric
utility   industry  and  to  assist  the  IUB   in   gathering
information and perspectives on electric competition from  all
persons  or entities with an interest or stake in the  issues.
Such  discussions  are  not expected to produce  any  specific
action by the IUB in the near future.

      The Company cannot predict the long-term consequences of
these  competitive  issues  on its results  of  operations  or
financial condition.  The Company's strategy for dealing  with
these  emerging  issues includes seeking growth opportunities,
continuing  to  offer quality customer service, on-going  cost
reductions   and  productivity  enhancements.    The   Company
recently initiated a major project to review and redesign  its
business  processes  with  the  primary  goals  being  reduced
operating  costs,  increased efficiency and enhanced  customer
service.

      In  March 1995, the FASB issued SFAS No. 121, Accounting
for  the Impairment of Long-Lived Assets and Long-Lived Assets
to  be  Disposed Of.  This statement defines the criteria  for
valuing  regulatory assets.  The Company does not  expect  the
amount  of  regulatory  assets recorded  in  the  Consolidated
Balance  Sheets to be affected.  The Company expects to  adopt
this  standard  on January 1, 1996, and does not  expect  that
adoption will have a material impact on the financial position
or results of operations of the Company.

                  PART II. - OTHER INFORMATION

Item 1.  Legal Proceedings.

      Reference  is  made to Notes 2 and 5  of  the  Notes  to
Consolidated  Financial Statements for a  discussion  of  rate
matters  and environmental matters, respectively, and Item  2.
Management's  Discussion  and  Analysis  of  the  Results   of
Operations and Financial Condition - Environmental Matters.

Item  2.   Changes  in  the Rights of the  Company's  Security
           Holders.

None.

Item 3.  Default Upon Senior Securities.

None.

Item 4.  Results of Votes of Security Holders.

(a)   The  Company held its annual Meeting of Shareholders  on
      May 16, 1995.

(b)  The following matter was voted upon at the Annual Meeting
     of Shareholders.

     The  election of nominees for Directors who will serve  a
     one-year term or until their respective successors  shall
     be duly elected.  The nominees, all of whom were elected,
     were as follows:
     
     C.R.S.  Anderson, J. Wayne Bevis, Dr. George Daly,  Blake
     O.  Fisher,  Jr., G. Sharp Lannom, IV, Lee Liu,  Jack  R.
     Newman, Robert D. Ray, David Q. Reed, Henry Royer, Robert
     W. Schlutz, Anthony R. Weiler.

     IES Industries Inc., the sole shareholder of the Company,
     voted all 13,370,788 shares for the election of the above
     nominees.
     
Item 5.  Other Information.

(a)  The Company has calculated the ratio of earnings to fixed
     charges  pursuant to Item 503 of Regulation  S-K  of  the
     Securities and Exchange Commission as follows:

          For the twelve months ended:
                               
            June 30, 1995          2.88
            December 31, 1994      3.18
            December 31, 1993      3.41
            December 31, 1992      2.49
            December 31, 1991      2.64
            December 31, 1990      2.65

(b)  Effective   August  1,  1995,  Mr.  Jim  Hoffman   joined
     Utilities  as Executive Vice President, Customer  Service
     and Energy Delivery.

(c)  Rene H. Males, Executive Vice President of Utilities, has
     announced  his  retirement and will  be  leaving  in  the
     latter part of September 1995.

Item 6.  Exhibits and Reports on Form 8-K.

(a)  Exhibits -

     4(a) Sixty-first  Supplemental  Indenture,  dated  as  of
          March 1, 1995, supplementing Utilities' Indenture of
          Mortgage  and Deed of Trust, dated August  1,  1940.
          (Filed  as  Exhibit 4(a) to the Company's Form  10-Q
          for the quarter ended March 31, 1995).
     
     4(b) Third  Supplemental Indenture, dated as of March  1,
          1995, supplementing Utilities' Indenture of Mortgage
          and  Deed of Trust, dated September 1, 1993.  (Filed
          as  Exhibit 4(b) to the Company's Form 10-Q for  the
          quarter ended March 31, 1995.

     *12  Ratio of Earning to Fixed Charges.

     *27  Financial Data Schedule.

     *  Exhibits designated by an asterisk are filed herewith.

(b)  Reports on Form 8-K -

          Items             Financial           Date of
         Reported          Statements            Report
                                            
           5, 7               None            May 15, 1995
           5, 7               None           April 27, 1995


                          SIGNATURES



      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.



                                  IES UTILITIES INC.
                                     (Registrant)
 


Date  August 14, 1995             By /s/ Dr. Robert J. Latham
                                             (Signature)
                                         Dr. Robert J. Latham
                                         Senior Vice President, Finance



                                  By /s/ Richard A. Gabbianelli
                                             (Signature)
                                         Richard A. Gabbianelli
                                         Controller & Chief Accounting Officer