MONTANA POWER CO /MT/
11-K, 1996-06-28
ELECTRIC & OTHER SERVICES COMBINED
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               __________________________________
                                
               SECURITIES AND EXCHANGE COMMISSION
                                
                     WASHINGTON, D.C.  20549
                                
                            FORM 11-K
                                
                          ANNUAL REPORT
                PURSUANT TO SECTION 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934
                                
               __________________________________
                                
           For the fiscal year ended December 31, 1995
                                
                     WESTERN ENERGY COMPANY
       DEFERRED SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
                                
                    THE MONTANA POWER COMPANY
                        40 EAST BROADWAY
                        BUTTE, MT  59701
Item 1. Changes in the Plan

The  Western Energy Company Deferred Savings Plan was amended and
restated  in 1989 as the Western Energy Company Deferred  Savings
and  Employee Stock Ownership Plan to reflect the merger  of  the
Western Energy Company Deferred Savings Plan and that portion  of
the  Employee  Stock Ownership Plan of The Montana Power  Company
and  Subsidiaries  attributable to employees  of  Western  Energy
Company.   Management  applied  for,  and  received  a  favorable
determination letter in 1994.

Item 2. Changes in Investment Policy

No  changes  have  been made to the Plan's investment  policy  in
1995.

Item       3.       Contributions      to      the      Leveraged
Employee Stock Ownership Plan Fund

Western Energy Company contributed $230,292 in 1995 to the Plan's
Leveraged ESOP Fund.

Item 4. Participating Employees

There  were  206  employees  and retirees  participating  in  the
Western  Energy  Company  Deferred  Savings  and  Employee  Stock
Ownership Plan at December 31, 1995.

Item 5. Administration of the Plan

The  Plan  is  administered by the seven-member  Retirement  Plan
Committee  (Committee) appointed by, and serving at the  pleasure
of,  the  Board  of  Directors  of Western  Energy  Company.   No
compensation  was  paid to the members of the  Committee  by  the
Plan.   The  members of the Committee, each of whose  address  is
c/o   The  Montana  Power  Company,  40  East  Broadway,   Butte,
Montana 59701, are as follows:

         Positions or Offices Held With
           The Montana Power Company
              and Its Subsidiaries

Jerrold P. Pederson                Administrator  Vice President -
Chief Financial
                     Officer

Richard F. Cromer  Member       President and Chief Operating
Officer,
                     Continental Energy Services, Inc.

Robert P. Gannon   Member       President and Chief Operating
Officer,
                     Utility Division

John S. Miller     Member       Controller, Utility Division

Arthur K. Neill    Member       Executive Vice President -
Utility
                     Services, Utility Division

James J. Murphy    Member       President, Entech, Inc.

Ellen M. Senechal  Member       Vice President and Treasurer,
Entech,
                     Inc.
                               -1-
Certain  members of the Committee are also directors or  officers
of certain subsidiaries of The Montana Power Company.

Item 6. Custodian of Investments

The  Northern Trust Company, Fifty South LaSalle Street, Chicago,
Illinois  60675  is  the  Trustee  of  the  Plan.   Ark   Capital
Management Company, Inc., manages one hundred percent of the Bond
Fund  and approximately fifty percent of the Stock Fund.  INVESCO
Capital Management, Inc., manages approximately fifty percent  of
the   Stock  Fund.   The  Trustee  and  the  money  managers  are
responsible   for   the  safekeeping  and   investment   of   all
contributions made to the Plan.  There is no specific coverage by
any  bond  furnished by the Trustee or either  money  manager  in
connection with the custody of the security investments or  other
assets of the Plan.  No fees are paid out of the Plan.

Item 7. Reports to Participating Employees

Summary  Annual  Reports will be made directly  to  participating
employees for the fiscal year 1995 with respect to the operations
of   the   Plan.   These  Reports  present  the  basic  financial
statements  and the employees' rights to additional  information.
Statements  of the status of individual accounts under  the  Plan
have been sent directly to the employees.

Item 8. Investment of Master Trust Funds

(a)  The  aggregate dollar amounts of brokerage commissions  paid
     by the Master Trust were $102,565, $104,437, $95,182 for the
     years  1995,  1994 and 1993, respectively.   None  of  these
     commissions  were paid to any broker which is an  affiliated
     person  of  the Plan or their investment advisor,  principal
     underwriters or to an affiliated person of any such person.

(b)  SEI  Evaluation Services provided reports on the performance
     of   the  Master  Trust  investment  managers  and  received
     brokerage  fees  of $63,152 and $24,065 in  1995  and  1994,
     respectively.
                               -2-
Item 9. Financial Statements

                         Western Energy Company
                          Deferred Savings and
                     Employee Stock Ownership Plan


                     Index to Financial Statements

                                                         Page


Report of Independent Accountants                        4

Plan Financial Statements:
   Statements of Net Assets Available for Benefits at
     December 31, 1995 and 1994                      5 through 6

   Statements of Changes in Net Assets Available for
     Benefits for the three years ended December 31, 1995    7
through 9

   Notes to Financial Statements                    10 through 21

Retirement Plan Committee Authorization                  22

Consent of Independent Accountants                       23


Note:   All  other  schedules are omitted because  they  are  not
applicable  or  the required information is shown in  the  Plan's
financial statements.
                               -3-

                Report of Independent Accountants
                                




To the Participants and Retirement Plan Committee
  of the Western Energy Company Deferred Savings and
  Employee Stock Ownership Plan


In  our  opinion,  the  accompanying  statements  of  net  assets
available  for  benefits, with fund information and  the  related
statements of changes in net assets available for benefits,  with
fund  information present fairly, in all material  respects,  the
net  assets available for benefits of the Western Energy  Company
Deferred   Savings   and  Employee  Stock   Ownership   Plan   at
December  31,  1995  and  1994, and the  changes  in  net  assets
available for benefits for each of the three years in the  period
ended  December  31, 1995, in conformity with generally  accepted
accounting  principles.   These  financial  statements  are   the
responsibility  of the plan administrator; our responsibility  is
to  express an opinion on these financial statements based on our
audits.    We  conducted  our  audits  of  these  statements   in
accordance  with  generally  accepted  auditing  standards  which
require  that we plan and perform the audit to obtain  reasonable
assurance  about  whether the financial statements  are  free  of
material  misstatement.  An audit includes examining, on  a  test
basis,  evidence  supporting the amounts and disclosures  in  the
financial  statements, assessing the accounting  principles  used
and  significant estimates made by management, and evaluating the
overall  financial statement presentation.  We believe  that  our
audits  provide  a  reasonable basis for  the  opinion  expressed
above.

Our audit was performed for the purpose of forming an opinion  on
the  basic  financial  statements taken as  a  whole.   The  fund
information  in  the  statements  of  net  assets  available  for
benefits  and  the statements of changes in net assets  available
for  benefits  is  presented for purposes of additional  analysis
rather than to present the net assets available for plan benefits
and  changes in net assets available for benefits of  each  fund.
The   fund   information  has  been  subjected  to  the  auditing
procedures   applied  in  the  audits  of  the  basic   financial
statements and, in our opinion, is fairly stated in all  material
respects in relation to the basic financial statements taken as a
whole.



PRICE WATERHOUSE LLP

Portland, Oregon
March 31, 1996
                               -4-

<TABLE>
<CAPTION>
    WESTERN ENERGY COMPANY DEFERRED SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
      STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION


December 31, 1995_________________________________

                                      Company Stock Fund
                                    Allocated          Unallocated
                                                     to                Leveraged
Common                                Fixed
                                             Employees                      ESOP
Bond    Fund                              Stock    Fund             Rate    Fund
 ESOP Fund                            Total
<S>                                          <C>       <C>       <C>       <C>       <C>       <C>  <C>
Assets:
 Cash                                        $        0          $    3,973          $ 15,449  $  237,803
$   99,244                         $      0  $  356,469
 Units held in the Master Trust at
   current value (Notes 2 and 3):

    The  Montana  Power  Company Stock Fund       2,332,444            1,339,317
3,671,761

   Bond Fund                                            355,967                                   355,967

     Equity   Fund                                                     2,374,429
2,374,429

                        Fixed                     Rate                      Fund
1,103,313                                     1,103,313

   Employee Stock Ownership Plan Fund                                                           469,888
469,888

   Contributions  Receivable                          58,693              11,872
65,896                                 31,917                       168,378
    Dividends    and   Interest   Receivable       33,458                 37,597
8,868                                  79,923
                                 Loans                                Receivable
52,476                                        169,147                    345,139
      566,762

       Total     Assets                        2,365,902               1,439,580
435,764                                     2,847,275                  1,579,613
478,756                             9,146,890

Liabilities:

  Note  Payable  to  The Montana Power Company                         1,563,448
                                    1,563,448

Net   Assets   Available   for   Benefits    $2,365,902            $   (123,868)
$435,764                                   $2,847,275                 $1,579,613
$478,756                           $7,583,442

</TABLE>
         The accompanying notes are an integral part of this statement.
                                       -5-
<TABLE>
<CAPTION>
    WESTERN ENERGY COMPANY DEFERRED SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
      STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION


December 31, 1994_________________________________

                                      Company Stock Fund
                                    Allocated          Unallocated
                                                     to                Leveraged
Common                                Fixed
                                             Employees                      ESOP
Bond    Fund                              Stock    Fund             Rate    Fund
 ESOP Fund                            Total
<S>                                          <C>       <C>       <C>       <C>       <C>       <C>  <C>
Assets:
 Cash                                        $        0          $   22,323          $  7,478  $  103,208
$   58,137                         $     99  $  191,245
 Units held in the Master Trust at
   current value (Notes 2 and 3):

    The  Montana  Power  Company Stock Fund       2,227,028            1,508,706
3,735,734

   Bond Fund                                            337,161                                   337,161

     Equity   Fund                                                     1,721,183
1,721,183

                        Fixed                     Rate                      Fund
1,248,701                                     1,248,701

   Employee Stock Ownership Plan Fund                                                           505,476
505,476

   Contributions  Receivable                          62,754               9,940
51,261                                 26,937                       150,892
    Dividends    and   Interest   Receivable       29,018                 37,986
8,845                                  75,849
                                 Loans                                Receivable
49,112                                        142,692                    343,322
      535,126

       Total     Assets                        2,256,046               1,631,769
403,691                                     2,018,344                  1,677,097
514,420                             8,501,367

Liabilities:

  Note  Payable  to  The Montana Power Company                         1,666,464
                                    1,666,464

Net   Assets   Available   for   Benefits    $2,256,046            $    (34,695)
$403,691                                   $2,018,344                 $1,677,097
$514,420                           $6,834,903

</TABLE>
         The accompanying notes are an integral part of this statement.
                                       -6-
<TABLE>
<CAPTION>
    WESTERN ENERGY COMPANY DEFERRED SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION

                                                                     Year ended
December 31, 1995____________________________

                                      Company Stock Fund
                                    Allocated          Unallocated
                                        to    Leveraged
Common                                 Fixed
                                    Employees              ESOP
Bond Fund                           Stock Fund           Rate Fund
ESOP Fund                             Total
<S>                                          <C>       <C>       <C>       <C>       <C>       <C>  <C>
 Investment Income:
   Dividends, Interest, and Realized
     Gains and Losses              $    131,900        $    152,543        $
30,979                             $    201,668        $     23,885        $
34,846                             $  575,821
   Net Appreciation (Depreciation) in
     Current Value of Investments       (39,583)     (24,798)          32,397             435,144
(7,877)                               395,283

 Contributions:
   Company                                        230,292
230,292
   Participants                                              46,078
246,251                                 138,197                     430,526

 Allocation of Montana Power Company
   Stock to Participants (Note 1)       303,066            (303,066)
0

 Transfers from Other Funds
12,638                                   98,244               2,893
      113,775

     Total Additions                    395,383              54,971
122,092                                 981,307             164,975
26,969                              1,745,697

 Participants' Withdrawals at
 Current Value:
   Cash                                                      70,621
149,204                                 171,255                     391,080
   The Montana Power Company Stock      285,527
62,633                                348,160

 Transfers to other Funds                                    19,398
3,172                                    91,204                     113,774

 Note Payable, Interest Payments
   (Note 5)                                                 144,144

144,144

     Total Deductions                   285,527             144,144
90,019                                  152,376             262,459
62,633                                997,158

     Net Increase (Decrease)            109,856             (89,173)      32,073          828,931
(97,484)     (35,664)                 748,539

 Net Assets Available for Benefits:
   Beginning of Year                  2,256,046             (34,695)
403,691                               2,018,344           1,677,097
514,420                             6,834,903

   End of Year                     $  2,365,902        $   (123,868)$
435,764                            $  2,847,275        $  1,579,613        $
478,756                            $7,583,442

</TABLE>
         The accompanying notes are an integral part of this statement.
                                       -7-
<TABLE>
<CAPTION>
    WESTERN ENERGY COMPANY DEFERRED SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION

                                                                     Year ended
December 31, 1994____________________________

                                      Company Stock Fund
                                    Allocated          Unallocated
                                        to    Leveraged
Common                                 Fixed
                                    Employees              ESOP
Bond Fund                           Stock Fund           Rate Fund
ESOP Fund                             Total
<S>                                          <C>       <C>       <C>       <C>       <C>       <C>  <C>
 Investment Income:
   Dividends, Interest, and Realized
     Gains and Losses              $    111,501        $    160,297        $
5,388                              $    162,004        $     88,544        $
35,388                             $  563,122
   Net Appreciation (Depreciation) in
     Current Value of Investments      (255,728)    (297,373)         (14,769)
(103,431)                                        (59,022)          (730,323)

 Contributions:
   Company                                        239,046
239,046
   Participants                                              58,527
248,083                                 145,599                     452,209

 Allocation of Montana Power Company
   Stock to Participants (Note 1)       262,091            (262,091)
0

 Transfers from Other Funds
37,606                                   83,345              21,004
      141,955

     Total Additions                    117,864            (160,121)      86,752          390,001
255,147                                (23,634)    666,009

 Participants' Withdrawals at
 Current Value:
   Cash                                                      16,123
108,173                                 234,607                     358,903
   The Montana Power Company Stock      123,659
10,316                                133,975

 Transfers to other Funds                                    26,540
5,175                                   110,241                     141,956

 Note Payable, Interest Payments
   (Note 5)                                                 153,100
                                      153,100

     Total Deductions                   123,659             153,100
42,663                                  113,348             344,848
10,316                                787,934

     Net Increase (Decrease)             (5,795)    (313,221)          44,089             276,653
(89,701)    (33,950)                 (121,925)

 Net Assets Available for Benefits:
   Beginning of Year                  2,261,841             278,526
359,602                               1,741,691           1,766,798
548,370                             6,956,828

   End of Year                     $  2,256,046        $    (34,695)$    403,691     $  2,018,344   $
1,677,097                          $   514,420         $6,834,903

</TABLE>
         The accompanying notes are an integral part of this statement.
                                       -8-
<TABLE>
<CAPTION>
    WESTERN ENERGY COMPANY DEFERRED SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION

                                                                     Year ended
December 31, 1993____________________________

                                       Company Stock Fund
                                    Allocated          Unallocated
                                        to    Leveraged
Common                                 Fixed
                                    Employees              ESOP
Bond Fund                           Stock Fund           Rate Fund
ESOP Fund                             Total
<S>                                          <C>       <C>       <C>       <C>       <C>       <C>  <C>
 Investment Income:
   Dividends, Interest, and Realized
     Gains and Losses              $    132,713        $    144,178        $
38,334                             $    144,792        $    110,752        $
30,850                             $  601,619
   Net Appreciation (Depreciation) in
     Current Value of Investments       (64,219)     (69,785)          (8,984)
36,400                                           (15,771)          (122,359)

 Contributions:
   Company                                        231,339
231,339
   Participants                                              43,952
224,456                                 151,748                     420,156

 Allocation of Montana Power Company
   Stock to Participants (Note 1)       193,579            (193,579)
0

 Transfers from other Funds              10,112
12,125                                   66,658
11,837                                100,732

     Total Additions                    272,185             112,153
85,427                                  472,306             262,500
26,916                              1,231,487

 Participants' Withdrawals at
 Current Value:
   Cash                                                      12,001
42,054                                   44,123                      98,178
   The Montana Power Company Stock       64,561
37,205                                101,766

 Transfers to other funds                                    42,978
17,412                                   27,700                      88,090

 Note Payable, Interest Payments
   (Note 5)                                                 163,209
                                      163,209

     Total Deductions                    64,561             163,209
54,979                                   59,466              71,823
37,205                                451,243

     Net Increase (Decrease)            207,624             (51,056)      30,448          412,840
190,677                                (10,289)           780,244

 Net Assets Available for Benefits:
   Beginning of Year                  2,054,217             329,582
329,154                               1,328,851           1,576,121
558,659                             6,176,584

   End of Year                     $  2,261,841        $    278,526        $
359,602                            $  1,741,691        $  1,766,798        $
548,370                            $6,956,828

</TABLE>

         The accompanying notes are an integral part of this statement.
                                       -9-
                         WESTERN ENERGY COMPANY
           DEFERRED SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
                     NOTES TO FINANCIAL STATEMENTS


NOTE 1 - Description of the Plan:

The    Deferred   Savings   and   Employee   Stock   Ownership   Plan    (Plan),
formerly   known   as   the   Deferred  Savings   Plan,   was   established   by
Western   Energy   Company  to  provide  a  means  for   regular   savings   and
investment   by   employees.    The   Plan  is   subject   to   the   provisions
of the Employee Retirement Income Security Act of 1974 (ERISA).

Amendments
Previously,    employees   of   Western   Energy   Company    participated    in
The   Montana   Power   Company   Plan.   Effective   January   1,   1986,   the
Plan    was   amended   and   restated   into   four   separate   plans.     The
Montana    Power   Company   (Company);   Entech,   Inc.,   a   Montana    Power
Company     subsidiary;    Western    Energy    Company     and     Northwestern
Resources    Co.,    subsidiaries   of   Entech,   Inc.,    established    their
own   Deferred   Savings  Plans.   As  of  January  1,  1986,  the   assets   of
the    Plan    effectively   became   The   Montana   Power   Company   Deferred
Savings   Master   Trust   (Trust);   see   Note   3.    A   portion   of    the
assets   of  the  Trust  were  then  allocated  back  to  the  Plan   based   on
participants'    equity    at   that   date   as   measured    by    the    Plan
administrator.

On   June   27,   1989,   the  Board  of  Directors   of   The   Montana   Power
Company   authorized   the   merger   of   The   Montana   Power   Company   and
Subsidiaries   Employee   Stock   Ownership   Plan   (ESOP)   into   the   Plan.
Effective   June   27,   1989,   the  Plan   was   amended   and   restated   as
Western    Energy    Company    Deferred    Savings    and    Employee     Stock
Ownership    Plan    to   reflect   a   merger   and   incorporate    provisions
permitting   acquisition   loans.   The   assets   of   the   ESOP   have   been
transferred into the Plan and are held in trust under the Plan.

Employee Contributions
Participation    in    the    Deferred   Savings    portion    of    the    Plan
(Savings   Plan)   is   voluntary   and  an   employee   becomes   eligible   to
make     contributions    under    the    Savings    Plan    after    completing
90   days   of   service.   Participants  may  contribute  from   one   to   six
percent   of   eligible   compensation   to   the   Savings   Plan   based    on
years     of    service    subject    to    Internal    Revenue    Code    (IRC)
limitations.      These     contributions     are     tax     deferred     under
Section 4O1(k) of the IRC.

In   addition   to   the  contributions  that  are  matched  by   the   Company,
participants,     regardless    of    their    years     of     service,     may
contribute   an   additional   ten   percent   of   eligible   compensation   to
the    Savings   Plan.    These   contributions   are   not   matched   by   the
Company, nor are they tax deferred.

Company Contributions
As    an    incentive   to   thrift,   the   Company   contributes   a   matched
contribution which is determined as follows:

     From 90 days of employment
      and beyond                 - 70% of participant's
contribution
                              -10-
Montana    Power    Company    Stock    is    allocated    to    employees    to
recognize    contributions   and   dividends   in   employees'    accounts    in
the   same   manner   as   if   the   Plan   had   not   been   leveraged.    In
addition,   appreciation,   if   any,  on   the   shares   released   from   the
Unallocated   Leveraged   ESOP  during  the  period   is   also   allocated   to
employees.     The    allocation    to    the    employees    is    accomplished
through   the   transfer   of  127,992  shares,  on  an   annual   basis,   from
the   Unallocated   Leveraged   ESOP  at  market   price,   at   the   time   of
transfer,   and   the   purchase   of  additional   shares,   in   the   market,
with    cash    contributions   received   from   the   Company.    The    Trust
repays   the   principal  and  interest  on  the  debt   obligation   (Note   5)
by    using    the    dividends   on   the   unallocated   shares    and    cash
contributions by the Company.

ESOP Contributions
Contributions   to   the   ESOP   Fund  by   the   Company   were   based   upon
investment   tax   credits   claimed   by   the   Company   based    upon    its
property    additions.     Contributions   to   the    ESOP    Fund    by    the
Company   are   made   to  the  trustee  in  the  form  of   common   stock   of
the   Company,   valued   at  the  average  closing   prices   of   the   common
stock    on    the   20   consecutive   trading   days   immediately   preceding
the   date   upon   which   the  additional  investment  credit   was   claimed.
Participants   were   eligible   to   make   matching   contributions   in   the
form   of   cash   or   payroll  deductions.   Effective  December   31,   1989,
the   Company   had   fully   utilized   all   of   its   available   investment
tax   credits   and   no   further  contributions  to   the   ESOP   Fund   were
made.

Vesting
Participants   are   immediately   100  percent   vested   in   their   personal
contributions     and     become    100    percent     vested     in     Company
contributions after 90 days of service.

Investment Options
Upon   enrollment   in  the  Plan,  participants  may  elect   to   have   their
contributions   invested   in   a  bond  fund,   common   stock   fund,   or   a
fixed     rate     fund,     or     any    combination     thereof.      Company
contributions   are   invested   in   a   stock   fund   consisting    of    the
Company's common stock.

Participants     may    elect    to    change    their    investment     options
quarterly.

Payments of Benefits
Withdrawals   from   the  Bond,  Common  Stock,  and  Fixed   Rate   Funds   are
paid   in   cash.    Withdrawals  from  the  Company  Stock   and   ESOP   Funds
are   paid   in   shares,  with  fractional  shares  and  final   dividends   on
withdrawn    shares   paid   in   cash.    Participants   are    permitted    to
borrow money out of their individual accounts.

Financial Statement Preparation
The    financial    statements   of   the   Plan   have   been    prepared    by
allocating    the   Master   Trust   total   assets   and   investment    income
based   on   the  Plan's  units  of  participation  at  December  31   and   the
yearly    average,   respectively,   in   the   Master   Trust   in   proportion
to   the   total  units  of  participation  at  December  31  and   the   yearly
average,   respectively,   in   the   Master   Trust.    The   unit   represents
a   right   to   share  in  the  assets  and  earnings  of  the  Master   Trust.
The    number    of   units   held   by   each   Plan   is   a    function    of
contributions and withdrawals throughout the year.

Plan Administration
Administration    of   the   Plan   is   performed   by   a   Retirement    Plan
Committee   (Committee)   appointed  by  the   Board   of   Directors   of   The
Montana   Power   Company.    The  Northern  Trust   Company   is   the   Plan's
trustee.
                              -11-
Plan Termination
Although   it   is  not  expressed  any  intent  to  do  so,  the  Company   has
the    right   under   Employee   Retirement   Income   Security   Act   (ERISA)
to   discontinue   its  contributions  at  any  time  and   to   terminate   the
Plan    subject   to   the   provisions   of   ERISA.    If    the    Plan    is
terminated,    the    trustee   would   continue    to    hold,    invest    and
administer   the   trust   funds   in  accordance   with   the   provisions   of
the    trust   agreement   and   make   distributions   from   the   trust    in
accordance     with    the    provisions    of    the    Plan    pursuant     to
instructions   filed   with   the   trustee   by   the   Committee   upon   such
termination.


NOTE 2 - Summary of Accounting Policies:

Basis of Accounting
The    financial   statements   of   the   Plan   are   prepared    under    the
accrual method of accounting.

Valuation of Master Trust Investments
Assets   invested   in  the  Company  Stock,  Bond,  Common   Stock   and   ESOP
Funds   have   been   recorded  at  their  current  value   as   determined   by
quoted    market    prices    based    on    reported    closing    prices    at
December   31   on   national  securities  exchanges  or   other   markets,   as
applicable,    and    the   unrealized   appreciation   or   depreciation    has
been    reflected    in    the   Statement   of   Changes    in    Net    Assets
Available    for    Benefits,   with   Fund   Information.     The    investment
contracts    with   various   insurance   companies   are    valued    at    the
contract    value    which   represents   participants'    contributions    made
under    the    contracts   plus   accumulated   interest   at   the    contract
rate.

Payment of Benefits
Benefits are recorded when paid.

Contributions
Participant    contributions    are    transferred    to    the    trustee    or
accrued   in   the   period   during   which  participant   payroll   deductions
are made.

Plan Expenses
All   expenses   attributable   to   the  administration   of   the   Plan   and
the expenses of the trustee are paid by the Company.

Reclassifications
Certain    reclassifications   have   been   made   to    the    prior    year's
amounts   to   make   them   comparable  to  the   1995   presentation.    These
changes    had   no   impact   on   previously   reported   changes    in    net
assets available for benefits.
                              -12-
<TABLE>
<CAPTION>
Note 3 -  Financial Statements for the Master Trust:

                                               Statement of Net Assets Available for Benefits


December 31, 1995_________________________________

                                      Company Stock Fund
                                    Allocated          Unallocated
                                                     to                Leveraged
Common                                Fixed
                                             Employees                      ESOP
Bond    Fund                              Stock    Fund             Rate    Fund
 ESOP Fund                            Total
<S>                                          <C>       <C>       <C>       <C>       <C>       <C>  <C>
Assets:
 Cash                                        $         0         $   229,962         $   216,691    $
6,767,192                          $ 2,773,904         $          0        $  9,987,749
 Investments, at current value:
   The Montana Power Company Stock Fund:
     Allocated Shares - 2,820,125 Shares
              (Cost          -         $55,924,604)                   63,906,963
63,906,963
     Unallocated Shares - 1,183,926 Shares
           (Cost       -       $24,691,458)                           26,786,325
26,786,325

   The Montana Power Company Deferred Savings
    Plan:
        Bond    Fund   (cost   -   $4,731,327)                         4,992,761
4,992,761
            Common       Stock       Fund       (cost       -       $53,287,188)
67,569,721                                               67,569,721
     Fixed Rate Fund (cost approximates
                                    current                               value)
30,837,990                                     30,837,990

   The Montana Power Company Employee Stock
     Ownership Plan (ESOP) Fund -
      750,831 shares
     (cost - $15,025,290)                                                             16,987,070
16,987,070

 Contributions Receivable                      1,198,550              74,312           1,534,642
659,498                                         3,467,002
    Dividends   and   Interest   Receivable       849,687                751,934
300,332                               1,901,953
                                 Loans                                Receivable
744,616                                     5,390,818                  5,584,844
     11,720,278

         Total     Assets                      64,756,650             28,966,771
6,028,380                                  81,262,373                 39,856,236
17,287,402                          238,157,812
Liabilities:

 Note Payable to The Montana Power
          Company                                                     31,268,958

31,268,958

Net  Assets  Available for Benefits  $64,756,650          $(2,302,187)         $
6,028,380                                 $81,262,373                $39,856,236
$17,287,402                        $206,888,854

</TABLE>
                                      -13-
<TABLE>
<CAPTION>
Note 3 -                           Financial Statements for the Master Trust:

                                               Statement of Net Assets Available for Benefits


December 31, 1994_________________________________

                                      Company Stock Fund
                                    Allocated          Unallocated
                                                     to                Leveraged
Common                                Fixed
                                             Employees                      ESOP
Bond    Fund                              Stock    Fund             Rate    Fund
 ESOP Fund                            Total
<S>                                          <C>       <C>       <C>       <C>       <C>       <C>  <C>
Assets:
 Cash                                        $         0         $   530,802         $   94,722     $
2,911,420                          $ 1,355,039         $    3,270          $  4,895,253
 Investments, at current value:
   The Montana Power Company Stock Fund:
     Allocated Shares - 2,538,795 Shares
              (Cost          -         $49,378,334)                   58,501,936
58,501,936
     Unallocated Shares - 1,311,918 Shares
           (Cost       -       $27,360,805)                           30,174,114
30,174,114

   The Montana Power Company Deferred Savings
    Plan:
        Bond    Fund   (cost   -   $4,503,756)                         4,341,482
4,341,482
            Common       Stock       Fund       (cost       -       $47,523,495)
49,544,814                                               49,544,814
     Fixed Rate Fund (cost approximates
                                    current                               value)
29,520,685                                     29,520,685

   The Montana Power Company Employee Stock
     Ownership Plan (ESOP) Fund -
             726,922         shares         (cost         -         $14,363,196)
16,712,777                           16,712,777

 Contributions Receivable                      1,170,737             69,485              665,262
315,364                                         2,220,848
    Dividends   and   Interest   Receivable       780,496                759,715
290,724                               1,830,935
                                 Loans                                Receivable
581,716                                     4,402,413                  4,892,096
      9,876,225

         Total     Assets                      59,282,432             32,635,368
5,087,405                                  57,523,909                 36,083,184
17,006,771                          207,619,069

Liabilities:

 Note Payable to The Montana Power
          Company                                                     33,329,285
                                     33,329,285

Net   Assets   Available   for  Benefits    $59,282,432           $    (693,917)
$5,087,405                                $57,523,909                $36,083,184
$17,006,771                        $174,289,784

</TABLE>
                                      -14-
<TABLE>
<CAPTION>
Note 3 -  Financial Statements for the Master Trust (continued):

                                         Statement of Changes in Net Assets Available for Benefits

                                                                     Year ended
December 31, 1995____________________________

                                       Company Stock Fund
                                    Allocated          Unallocated
                                                     to                Leveraged
Common                                Fixed
                                             Employees                      ESOP
Bond    Fund                              Stock    Fund             Rate    Fund
 ESOP Fund                            Total
<S>                                          <C>       <C>       <C>       <C>       <C>       <C>  <C>
 Investment Income:
   Dividends, Interest and Realized
      Gains  and  Losses              $ 3,306,105         $ 3,052,198          $
546,900                             $  7,153,350         $  3,187,082          $
1,188,899                          $ 18,434,534
   Net Appreciation (Depreciation) in
        Current   Value   of   Investments     (1,004,653)             (495,969)
423,707                             12,270,330                      (266,754)          10,926,661

 Contributions:
               Company                                                 4,684,083
4,684,083
           Participants                                                  541,310
5,816,376                            2,747,549                      9,105,235

 Allocation of Montana Power Company
     Stock   to   Participants   (Note  1)      5,965,716            (5,965,716)
0

               Transfers              from              Other              Funds
369,018                                     2,685,793                  2,251,535
      5,306,346

         Total     Additions                    8,267,168              1,274,596
1,880,935                                  27,925,849                  8,186,166
922,145                              48,456,859

 Participants' Withdrawals at Current
    Value:
           Cash                                                          322,428
2,195,139                            1,716,545                      4,234,112
   The Montana Power Company Stock -
               120,738            Shares                               2,792,950
641,514                               3,434,464

    Transfers    to    other    Funds                                    617,532
1,992,246                            2,696,569                      5,306,347

 Note Payable, Interest
       Payments     (Note    5)                                        2,882,866

2,882,866

         Total     Deductions                   2,792,950              2,882,866
939,960                                     4,187,385                  4,413,114
641,514                              15,857,789

        Net    Increase   (Decrease)           5,474,218             (1,608,270)
940,975                                    23,738,464                  3,773,052
280,631                              32,599,070

 Net Assets Available for Benefits:
      Beginning    of   Year                  59,282,432               (693,917)
5,087,405                                  57,523,909                 36,083,184
 17,006,771                         174,289,784

      End    of    Year                       $64,756,650           $(2,302,187)
$6,028,380                                $81,262,373                $39,856,236
$17,287,402                        $206,888,854

</TABLE>
                                      -15-
<TABLE>
<CAPTION>
Note  3  -                            Financial Statements for the Master  Trust
(continued):

                                         Statement of Changes in Net Assets Available for Benefits

                                                                 Year ended
December 31, 1994

                                    Company Stock Fund
                                 Allocated          Unallocated
                                                   to                  Leveraged
Common                             Fixed
                                           Employees                        ESOP
Bond     Fund                            Stock    Fund             Rate     Fund
 ESOP Fund                         Total
<S>                                       <C>       <C>       <C>       <C>       <C>       <C>
<C>
 Investment Income:
   Dividends, Interest and Realized
      Gains  and  Losses            $ 2,795,736          $  3,205,914          $
68,850                            $  4,537,372          $  1,901,901           $
1,142,849                       $ 13,652,622
   Net Appreciation (Depreciation) in
     Current Value of Investments          (6,411,980)         (3,863,760)           (188,714)
(2,896,871)                                          (1,939,998)         (15,301,323)

 Contributions:
                 Company                                               4,533,101
4,533,101
   Participants                                                   601,441           5,541,885
2,559,412                                              8,702,738

 Allocation of Montana Power Company
     Stock  to  Participants  (Note 1)           5,800,395           (5,800,395)
0

               Transfers              from              Other              Funds
411,720                                    1,898,901                     868,718
2,091                              3,181,430

         Total     Additions                  2,184,151              (1,925,140)
893,297                                    9,081,287                   5,330,031
(795,058)                         14,768,568
 Participants' Withdrawals at Current
   Value:
            Cash                                                          74,882
1,215,218                                                              1,039,745
2,329,845
   The Montana Power Company Stock -
                  51,142              Shares                             967,782
237,229                            1,205,011

 Transfers to other Funds                                         584,666             719,273
1,875,307                             2,091            3,181,337

 Note Payable, Interest
        Payments     (Note     5)                                      3,062,000
                                   3,062,000

          Total     Deductions                   967,782               3,062,000
659,548                                    1,934,491                   2,915,052
239,320                            9,778,193

         Net    Increase    (Decrease)         1,216,369             (4,987,140)
233,749                                    7,146,796                   2,414,979
(1,034,378)                        4,990,375

 Net Assets Available for Benefits:
       Beginning    of    Year                58,066,063               4,293,223
4,853,656                                 50,377,113                  33,668,205
 18,041,149                      169,299,409

    End  of  Year                   $59,282,432          $   (693,917)         $
5,087,405                                $57,523,909                 $36,083,184
$17,006,771                     $174,289,784

</TABLE>
                                      -16-
<TABLE>
<CAPTION>
Note  3  -                         Financial  Statements for  the  Master  Trust
(continued):

                                         Statement of Changes in Net Assets Available for Benefits

                                                                 Year ended
December 31, 1993

                                    Company Stock Fund
                                 Allocated          Unallocated
                                                   to                  Leveraged
Common                             Fixed
                                           Employees                        ESOP
Bond     Fund                            Stock    Fund             Rate     Fund
 ESOP Fund                         Total
<S>                                       <C>       <C>       <C>       <C>       <C>       <C>
<C>
 Investment Income:
   Dividends, Interest and Realized
      Gains  and  Losses            $ 2,968,806          $  2,883,521          $
505,415                           $  4,213,860          $  1,886,316           $
1,078,560                       $ 13,536,478
   Net Appreciation (Depreciation)
     in Current Value of Investments       (1,609,891)         (1,395,693)           (118,455)
1,059,369                                    (448,236)          (2,512,906)

 Contributions:
                 Company                                               4,285,932
4,285,932
   Participants                                                   517,202           4,935,261
2,719,043                                    8,171,506

 Allocation of Montana Power Company
     Stock  to  Participants  (Note 1)           4,345,391           (4,345,391)
0

         Transfers        from        Other        Funds                  70,847
351,123                                    2,481,279                     451,753
      3,355,002

          Total     Additions                  5,775,153               1,428,369
1,255,285                                 12,689,769                   5,057,112
630,324                           26,836,012

 Participants' Withdrawals at Current
    Value:
            Cash                                                         124,057
1,729,309                         1,570,107                      3,423,473
   The Montana Power Company Stock -
                  99,971             Shares                            2,391,830
333,569                            2,725,399

 Transfers to Other Funds            70,847                       458,089             428,712
2,397,354                                    3,355,002

 Note Payable, Interest
         Payments     (Note     5)                                     3,264,175
                                   3,264,175

          Total     Deductions                 2,462,677               3,264,175
582,146                                    2,158,021                   3,967,461
333,569                           12,768,049

         Net    Increase    (Decrease)         3,312,476             (1,835,806)
673,139                                   10,531,748                   1,089,651
296,755                           14,067,963

 Net Assets Available for Benefits:
       Beginning    of    Year                54,753,587               6,129,029
4,180,517                                 39,845,365                  32,578,554
 17,744,394                      155,231,446

    End  of  Year                   $58,066,063          $  4,293,223          $
4,853,656                                $50,377,113                 $33,668,205
$18,041,149                     $169,299,409

</TABLE>

                                      -17-

NOTE 3 - Financial Statements for the Master Trust (Continued):

Net Increase (Decrease) in Current Value of Investments
The  following table sets forth the net increase (decrease) in the  current
value  of  Master Trust investments for the three years ended December  31,
1995.  Unrealized appreciation or depreciation recognized in prior years on
investments sold is removed from unrealized appreciation or depreciation in
the  year  of  the  sale as it is reflected in the realized  gain  or  loss
amounts in the year of the sale in this table.  Cost of securities sold  is
determined  on  the basis of average cost.  Withdrawals  from  the  Company
Stock  and ESOP Funds are paid in shares and the realized gain or  loss  is
determined as the difference between average cost and market value.
<TABLE>
<CAPTION>

                                        Year Ended December 31, 1995


                                Company                Common       ESOP
                              Stock Fund              Bond Fund
Stock Fund                       Fund
<S>                                     <C>         <C>       <C>
<C>
Unrealized Appreciation of
  Plan Investments:

   Beginning of Year         $ 11,936,911           $   (162,273)     $
2,021,319                    $  2,349,581

   End of Year                  9,975,592                261,434
14,291,649                      1,962,260

     Net Unrealized
     Appreciation/
      (Depreciation)           (1,961,319)               423,707
12,270,330                       (387,321)

 Unrealized Gain/(Loss) of
   Security Disbursements
   Less Receipts                  460,697
120,567

 Realized Gain                      6,740                 93,038
4,594,834                             823

   Net Increase (Decrease)
     in Current Value        $ (1,493,882)          $    516,745 $
16,865,164                   $   (265,931)
</TABLE>
                                   -18-

NOTE 3 - Financial Statements for the Master Trust (Continued):
<TABLE>
<CAPTION>
                                           Year Ended December 31, 1994


                               Company                 Common       ESOP
                              Stock Fund              Bond Fund
Stock Fund                       Fund
<S>                                     <C>         <C>       <C>
<C>
Unrealized Appreciation of
 Plan Investments:

   Beginning of Year         $ 22,395,126           $     26,441      $
4,918,189                    $  4,289,579

   End of Year                 11,936,911               (162,273)
2,021,319                       2,349,581

     Net Unrealized
     Appreciation/
      (Depreciation)          (10,458,215)              (188,714)
(2,896,870)                    (1,939,998)

 Unrealized Gain/Loss of
   Security Disbursements
   Less Receipts                  182,475

 Realized Gain                      1,294               (232,783)
 2,955,939                            648

   Net Increase (Decrease)
     in Current Value        $(10,274,446)          $   (421,497)     $
59,069                       $ (1,939,350)



                                           Year Ended December 31, 1993


                               Company                 Common     ESOP
                              Stock Fund              Bond Fund
Stock Fund                       Fund

Unrealized Appreciation of
 Plan Investments:

   Beginning of Year         $ 26,242,486           $    144,896      $
3,858,820                    $  4,737,815

   End of Year                 22,395,126                 26,441
4,918,189                       4,289,579

     Net Unrealized
     Appreciation/
      (Depreciation)           (3,847,360)              (118,455)
1,059,369                        (448,236)

 Unrealized Gain/(Loss) of
   Security Disbursements
   Less Receipts                  841,776

 Realized Gain                     11,523                261,685
 2,999,414                          1,413

   Net Increase (Decrease)
     in Current Value        $ (2,994,061)          $    143,230      $
4,058,783                    $   (446,823)
</TABLE>
                                   -19-
NOTE 4 - Tax Status:

The   Plan,   as  amended  to  comply  with  the  ERISA,  has  received   a
determination  letter  from  the  Internal  Revenue  Service   (IRS)   that
the   Plan  is  qualified  under  Internal  Revenue  Code  Section   401(a)
and the trust is exempt from taxation under Section 501(a).


NOTE 5 - Plan Leveraging and Notes Payable:

On   January   22,   1990,   the  Company  borrowed   $40,000,000   at   an
interest   rate  of  9.2  percent  to  be  repaid  in  equal   installments
over   15   years.   The  proceeds  of  this  loan  were  lent  on  similar
terms   to   the   Trust   which  purchased   1,922,297   shares   of   the
Company's   common  stock  on  the  open  market.   The   stock   will   be
used  to  fund  the  Company's  future  matching  requirements  under   the
Deferred   Savings  portion  of  the  Trust.   The  shares   purchased   by
the   Trust   will   be  allocated  to  participants  in  equal   quarterly
amounts   over   the  15-year  term  of  the  loan.   Debt  principal   and
interest     payments     are    made    quarterly    utilizing     Company
contributions   received   under  the  Trust,  plus   dividends   paid   on
the unallocated shares purchased by the Trust.

On December 31, 1995, 1,183,926 shares remained unallocated.

Principal   payments   for  1995,  1994,  and  1993   totaled   $2,014,004,
$1,838,899,   and   $1,640,400  respectively.    The   principal   payments
paid   by  the  Plan  do  not  affect  net  assets  of  the  trust.    Such
payments   reduce  both  Trust  assets  and  liabilities  by  an  identical
amount.

The  Trust  is  required  to  make  the  following  principal  payments  to
the Company on its note payable as follows:

                        1996         2,205,783
                        1997         2,415,825
                        1998         2,645,866
                        1999         2,897,814
                        2000         3,173,751
                        Thereafter  17,226,904

Interest   expense  for  the  Trust  for  1995,  1994  and   1993   totaled
$2,882,866,    $3,062,000    and   $3,264,175    respectively;    including
accrued interest of $703,016, $749,339 and $791,633 respectively.
                              -20-
NOTE 6 - Significant Investments of the Master Trust:

At   December   31,   1995,  investments  representing  five   percent   or
more of the Plan's net assets are as follows:


                        Description
Current Value

     The Montana Power Company Common Stock         $   4,141,649
                              -21-

Pursuant   to   the  requirements  of  the  Securities  Exchange   Act   of
1934,   Western   Energy   Co.   Retirement   Plan   Committee   has   duly
caused   this   annual   report   to   be   signed   by   the   undersigned
thereunto duly authorized.

                            WESTERN ENERGY CO. DEFERRED SAVINGS
AND
                            EMPLOYEE STOCK OWNERSHIP PLAN



Date:  June 27, 1996        By JERROLD P.
PEDERSON_____________________
                               Jerrold P. Pederson
                               Vice President - Chief Financial
Officer
                              -22-
                   Consent of Independent Accountants



We   hereby   consent   to   the  incorporation   by   reference   in   the
Registration   Statement   on  Form  S-8  (No.s  33-24952   and   33-28096)
of   The  Montana  Power  Company  of  our  report  dated  March  31,  1996
appearing   on  page  4  of  this  Form  11-K  relating  to   the   Western
Energy    Company   Deferred   Savings   and   Employee   Stock   Ownership
Plan.



PRICE WATERHOUSE LLP

Portland, Oregon
June 27, 1996
                              -23-
R:\600\EDGWEC1.DOC
                                



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