Exhibit 15.2


                                ARTHUR ANDERSEN


                                                       ------------------------
                                                       Arthur Andersen LLP


July 29, 1999
                                                       ------------------------
                                                       One Financial Plaza
                                                       Hartford CT 06103-2699
                                                       860 280 0500
To Yankee Energy System, Inc.:

We are aware that Yankee Energy System, Inc. has incorporated by reference on
its Registration Statement File No. 33-56323, its Form 10-Q for the quarter
ended June 30, 1999, which includes our report dated July 29, 1999 covering
the unaudited interim financial information contained therein.  Pursuant to
Regulation C of the Securities Act of 1933, that report is not considered a
part of the registration statement prepared or certified by our firm or a
report prepared or certified by our firm within the meaning of Sections 7 and
11 of the Act.


                                              Very truly yours,

                                              Arthur Andersen LLP