EXHIBIT 11




          YANKEE ENERGY SYSTEM, INC. AND SUBSIDIARIES

                 Earnings Per Share Computation

                    For the Years Ended September 30
                    --------------------------------
                                         
                    1996           1995           1994
                    ----           ----           ----

                    (Thousands of Dollars, Except Share Data)


Net Income          $21,919        $12,358        $19,485
                    -------        -------        -------


Average Common
Shares
Outstanding         10,435,196     10,332,447     10,287,683
                    ----------     ----------     ----------


Earnings Per
Share               $2.10(b)       $1.20(b)       $1.89(a)(b)
                    --------       --------       -----------



     (a)  Exclusive of an $0.08 per share charge resulting from
an early redemption premium on the Company's preferred stock.

     (b)  Earnings per share information is the same on both a
primary and fully diluted basis as Yankee Energy System, Inc. has
a simple capital structure.