<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MARCH
31, 1998 FINANCIAL STATEMENTS INCLUDED IN THE COMPANY'S FORM 10-Q AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-Q.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               MAR-31-1998
<BOOK-VALUE>                                  PER-BOOK
<TOTAL-NET-UTILITY-PLANT>                    1,356,361
<OTHER-PROPERTY-AND-INVEST>                     91,542
<TOTAL-CURRENT-ASSETS>                         162,552
<TOTAL-DEFERRED-CHARGES>                        11,850
<OTHER-ASSETS>                                 174,076
<TOTAL-ASSETS>                               1,796,381
<COMMON>                                        33,427
<CAPITAL-SURPLUS-PAID-IN>                      279,042
<RETAINED-EARNINGS>                            230,647
<TOTAL-COMMON-STOCKHOLDERS-EQ>                 543,116
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                     18,320
<LONG-TERM-DEBT-NET>                           601,915
<SHORT-TERM-NOTES>                                   0
<LONG-TERM-NOTES-PAYABLE>                            0
<COMMERCIAL-PAPER-OBLIGATIONS>                       0
<LONG-TERM-DEBT-CURRENT-PORT>                   50,140
<PREFERRED-STOCK-CURRENT>                            0
<CAPITAL-LEASE-OBLIGATIONS>                     20,646
<LEASES-CURRENT>                                13,115
<OTHER-ITEMS-CAPITAL-AND-LIAB>                 549,129
<TOT-CAPITALIZATION-AND-LIAB>                1,796,381
<GROSS-OPERATING-REVENUE>                      208,278
<INCOME-TAX-EXPENSE>                            10,040 <F1>
<OTHER-OPERATING-EXPENSES>                     173,989
<TOTAL-OPERATING-EXPENSES>                     173,989 <F1>
<OPERATING-INCOME-LOSS>                         34,289
<OTHER-INCOME-NET>                                 486
<INCOME-BEFORE-INTEREST-EXPEN>                  34,775
<TOTAL-INTEREST-EXPENSE>                        13,075
<NET-INCOME>                                    11,660
<PREFERRED-STOCK-DIVIDENDS>                        229
<EARNINGS-AVAILABLE-FOR-COMM>                   11,431
<COMMON-STOCK-DIVIDENDS>                             0
<TOTAL-INTEREST-ON-BONDS>                       46,672
<CASH-FLOW-OPERATIONS>                          67,009
<EPS-PRIMARY>                                        0 <F2>
<EPS-DILUTED>                                        0 <F2>
<FN>
<F1>   Income tax expense is not included in 
       Operating Expense in the Consolidated
       Statements of Income.
<F2>   Earnings per share of common stock is 
       not reflected because all common shares
       are held by Interstate Energy
       Corporation.
</FN>