PG ENERGY INC
8-K/A, 1997-06-02
ELECTRIC & OTHER SERVICES COMBINED
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                                                Exhibit 16-1



                                                 Arthur Andersen LLP
                                                 1345 Avenue of the Americas
                                                 New York, NY  10105-0032



 
                                                May 28, 1997




Mr. Michael Sutton
Office of the Chief Accountant
SECPS Letter File
Securities and Exchange Commission
Mail Stop 9-5
450 Fifth Street, N.W.
Washington, D.C.  20549

Dear Mr. Sutton:

             We have read Item 4  paragraphs  (a)(i) through (a)(vi) included in
the attached Form 8-K  dated  May  28,  1997  of  PG  Energy Inc. filed with the
Securities and Exchange  Commission  and  are  in  agreement with the statements
contained therein.

                                                 Very truly yours,

                                             /s/ Arthur Andersen LLP
                                                 Arthur Andersen LLP
                                                 



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