<ARTICLE> UT <CIK> 0000838868 <NAME> UPPER PENINSULA ENERGY CORP <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> 101,448 <OTHER-PROPERTY-AND-INVEST> 11,430 <TOTAL-CURRENT-ASSETS> 16,124 <TOTAL-DEFERRED-CHARGES> 6,258 <OTHER-ASSETS> 0 <TOTAL-ASSETS> 135,260 <COMMON> 0 <CAPITAL-SURPLUS-PAID-IN> 21,087 <RETAINED-EARNINGS> 19,760 <TOTAL-COMMON-STOCKHOLDERS-EQ> 40,848 <PREFERRED-MANDATORY> 445 <PREFERRED> 0 <LONG-TERM-DEBT-NET> 43,007 <SHORT-TERM-NOTES> 10,000 <LONG-TERM-NOTES-PAYABLE> 0 <COMMERCIAL-PAPER-OBLIGATIONS> 0 <LONG-TERM-DEBT-CURRENT-PORT> 260 <PREFERRED-STOCK-CURRENT> 0 <CAPITAL-LEASE-OBLIGATIONS> 0 <LEASES-CURRENT> 0 <OTHER-ITEMS-CAPITAL-AND-LIAB> 40,701 <TOT-CAPITALIZATION-AND-LIAB> 135,260 <GROSS-OPERATING-REVENUE> 15,573 <INCOME-TAX-EXPENSE> 576 <OTHER-OPERATING-EXPENSES> 13,005 <TOTAL-OPERATING-EXPENSES> 13,581 <OPERATING-INCOME-LOSS> 1,992 <OTHER-INCOME-NET> 69 <INCOME-BEFORE-INTEREST-EXPEN> 2,061 <TOTAL-INTEREST-EXPENSE> 1,205 <NET-INCOME> 856 <PREFERRED-STOCK-DIVIDENDS> 5 <EARNINGS-AVAILABLE-FOR-COMM> 851 <COMMON-STOCK-DIVIDENDS> 944 <TOTAL-INTEREST-ON-BONDS> 3,868 <CASH-FLOW-OPERATIONS> 2,551 <EPS-PRIMARY> 0.29 <EPS-DILUTED> 0.29