<PAGE>
DEAR FELLOW SHAREHOLDERS:
PERFORMANCE REVIEW--We are very pleased to report that the market total
return to DNP's shareholders for the third quarter of 1997 was 13.9%. This
compares favorably with the Dow Jones Utilities Index and the S&P Utilities
Index which had total returns of 6.3% and 4.9%, respectively, for the third
quarter. The Lehman Brothers Utility Bond Index had a total return of 4.2% for
the same period. Likewise, a very favorable return of 20.5% for the nine
months ending September 30 accrued to DNP shareholders. The total return for
the Dow Utilities Index was 6.3%, 7.3% for the S&P Utilities, and 7.7% for the
Lehman Brothers Utility Bond Index for the same period.
While such total return comparisons are noteworthy, the Fund's primary goals
are current income and long-term growth in income. Shareholders during the
third quarter enjoyed the increased monthly dividend rate of 6.5 cents per
share declared by the Board at its July meeting. The 6.5 cent monthly rate
without compounding would be 78 cents annualized, or an 8.00% common stock
yield based on the September 30, 1997 closing price of $9.75 per share. That
yield compares favorably with most investment alternatives.
COMPARATIVE TOTAL RETURNS
FOR PERIODS ENDING 9/30/97
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Third Quarter Nine Months Twelve Months
------------- ----------- -------------
<S> <C> <C> <C>
DNP Market Value Total Return* 13.9% 20.5% 23.4%
Composite** 5.7% 6.8% 14.3%
</TABLE>
* Total return of a Fund shareholder in the Fund's Automatic Dividend
Reinvestment Plan.
** Weighted average of Dow Jones Utility Index and Lehman Brothers Utility
Bond Index.
ELECTRIC UTILITY INVESTMENT ENVIRONMENT--The rapid pace of regulatory and
legislative change continued in the electric industry during the third
quarter, with restructuring and competition being the main themes. The impacts
from regulatory restructuring are coming into focus led by California, New
York, and New Hampshire. In two of those three states (New Hampshire being the
exception), investors have responded positively to the regulatory clarity as
the stock price of electric utility companies outperformed the broad utility
Indexes during the quarter.
1
<PAGE>
Over the next few months, we expect the states of Illinois, Massachusetts,
Michigan, and Pennsylvania to finalize restructuring legislation. Several
other states are at various points in the restructuring process and completion
is likely within the next 12 to 24 months. The timing for full implementation
of retail competition will vary by state, but we expect that most customers
will be able to choose their electricity supplier within the next four years.
The electric industry is in a state of change accompanied by increasing
uncertainty as companies are reducing rates, merging, forming alliances,
diversifying both domestically and internationally, and selling generating
assets. Consequently, your Fund has reduced its exposure to electric utility
stocks. However, the Fund managers still see selective opportunities within
the sector. In certain cases, the clarity provided by finalized state
restructuring plans will be positive for investors. Our analysts will continue
to closely monitor company and industry developments with a goal of making
investments in those companies that convert the competitive challenges into
profitable opportunities.
TELECOMMUNICATIONS INVESTMENT ENVIRONMENT--In the telecommunications
industry, the drive to consolidate continued at a fevered pitch. During the
month of October, both WorldCom and GTE upped British Telecom's ante for MCI
Communications, setting the stage for a bidding war. (Isn't it interesting
that in August MCI looked like damaged goods and now it's a highly sought-
after asset?) However, on November 10, WorldCom appeared to have pre-empted
any potential bidding war by increasing its $30 billion stock offer to an eye-
popping $37 billion in stock and cash, outweighing GTE's $28 billion all cash
bid. MCI has accepted WorldCom's offer, and BT seems to be happy to go home
with $7.4 billion in cash, some of which may be returned to shareholders in
the form of dividends.
Naturally, the question on many investors' minds is: How can WorldCom
possibly offer so much more for MCI than either BT or GTE? The primary reason,
in a word, is synergy. A merger of WorldCom and MCI is expected to produce
significant operating cost savings and large reductions in capital
expenditures, which will substantially lower the cost structure for delivering
local, long distance and Internet services. In an era where the delivery of
telecommunications services is rapidly becoming a commodity, being the low-
cost provider is crucial. Neither BT nor GTE would have been able to realize
the same level of synergy with MCI that is available to WorldCom. Indeed,
their interest in MCI had more to do with expanding their reach (the U.S. for
BT; full service provider nationwide for GTE) than cost savings.
While the battle to win MCI may be over, the desire of companies in this
industry to merge continues unabated. Having lost out on MCI, BT will now have
to find another partner in the U.S., possibly one of the Regional Bell
Operating Companies (RBOCs). As for GTE, its appetite may have been whetted by
the bid for MCI and could go looking elsewhere to quickly expand its reach
(they've talked to AT&T in the past). What is clear is that over the next few
years, the structure of the industry on a global basis will change
dramatically and irreversibly, with no company left unscathed. The bottom
line: while it is a very exciting time in the telecommunications industry,
companies can also be unpredictable and/or irrational. As a result, careful
analysis and a thorough understanding of the industry dynamics has become
increasingly important in the investment decision.
GAS AND REITS--Over the past several quarters, your management team has
increased the Fund's investments in both gas companies and in Real Estate
Investment Trusts (REITs). REITs are public companies that own and manage real
estate. REITs provide an opportunity for shareholders to participate in and
benefit from the professional management of real estate. Based on the relative
fundamentals and relative price statistics
2
<PAGE>
of each industry, we think continued investments into these industries are
likely, although probably not at the same rate as the recent past. Our intent
is to continue to invest in those companies that best assists the Fund to meet
its objective of providing you, the shareholder, with a relatively high level
of income.
QUARTERLY BOARD MEETING--At the quarterly meeting held on October 17, 1997
the Board of Directors declared the following monthly dividends:
<TABLE>
<CAPTION>
DIVIDEND RECORD PAYMENT
PER SHARE DATE DATE
--------- ------ -------
<S> <C> <C>
6.5 cents 10-31-97 11-10-97
6.5 cents 11-28-97 12-10-97
</TABLE>
The 6.5 cents per share rate is the continuation of the increased rate
declared at the June board meeting. The Fund is dedicated to the continuity of
monthly dividend payouts at the 6.5 cents per share level.
AUTOMATIC DIVIDEND REINVESTMENT PLAN AND DIRECT DEPOSIT SERVICE--The Fund
has a dividend reinvestment plan available to all registered shareholders. As
long as the market price of the common stock of the Fund exceeds or is equal
to the net asset value per share, new shares for the dividend reinvestment
program are issued at the greater of either 95% of the market price or the net
asset value. If the market price per share of common stock is below the net
asset value per share, shares are purchased in the open market at prevailing
market prices, plus any brokerage commissions paid by The Bank of New York for
all shares purchased by it in the reinvestment of the distribution and
credited to the accounts of plan participants.
For those shareholders whose shares are held for them by a brokerage house
or nominee in "street-name," you may not participate in the Fund's automatic
dividend reinvestment plan inasmuch as the Fund cannot communicate directly
with you since the Fund does not have your name and address. Thus for those
Fund shareholders in "street-name" desiring automatic dividend reinvestment,
we suggest you contact your broker or other nominee.
As an added service, the Fund now offers direct deposit service through
electronic funds transfer to all registered shareholders currently receiving a
monthly dividend check. Direct deposit provides automatic and immediate access
to your funds on the dividend payment date and eliminates the possibility of
mail delays and lost or stolen checks. This service is offered through The
Bank of New York.
For more information and/or an authorization form on automatic dividend
reinvestment or direct deposit, please contact The Bank of New York. You can
contact the Advisor, Administrator, or The Bank of New York by calling the
Fund's toll free number of 1-800-680-4DNP.
VISIT US ON THE WEB--You can obtain the most recent shareholder financial
report and dividend information at our web site http://www.duff.com.
We appreciate your interest in Duff & Phelps Utilities Income Inc., and we
will continue to do our best to be of service to you.
/s/ Claire V. Hansen /s/ Calvin J. Pedersen
Claire V. Hansen, CFA Calvin J. Pedersen, CFA
Chairman President and Chief Executive
Officer
3
<PAGE>
DUFF & PHELPS UTILITIES INCOME INC.
STATEMENT OF NET ASSETS
(UNAUDITED)
SEPTEMBER 30, 1997
COMMON STOCKS--71.8%
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES COMPANY (NOTE 1)
------ ------- --------------
<C> <S> <C>
. ELECTRIC--38.8%
1,733,000 Baltimore Gas & Electric Co........................ $ 48,090,750
1,818,600 Boston Edison Co................................... 55,808,288
1,617,900 Carolina Power & Light Co.......................... 58,143,281
1,635,000 CINergy Corp....................................... 54,670,313
705,000 CIPSCO Inc......................................... 26,878,125
1,352,700 CMS Energy Corp.................................... 50,049,900
1,265,000 DQE Incorporated................................... 42,693,750
1,000,000 Duke Energy Corp................................... 49,437,500
309,000 Eastern Utilities Associates....................... 6,160,688
1,858,400 Edison International............................... 46,924,600
2,240,000 Empresa National De Electricidad ADR............... 48,160,000
1,447,800 FPL Group Inc...................................... 74,199,750
1,000,000 GPU Inc............................................ 35,875,000
1,865,400 Illinova Corp...................................... 40,222,688
1,141,800 LG&E Energy Corp................................... 25,333,688
686,500 National Power PLC ADR............................. 24,628,188
1,278,300 NIPSCO Industries Inc.............................. 53,848,387
620,000 Pinnacle West Capital Corp......................... 20,847,500
302,000 Powergen PLC ADR................................... 14,873,500
2,000,000 Southern Co........................................ 45,125,000
500,000 Southern Electric PLC ADR.......................... 3,775,950
1,319,700 TECO Energy Inc.................................... 32,332,650
700,000 Texas Utilities Co................................. 25,200,000
682,600 Wisconsin Energy Corp.............................. 17,747,600
--------------
901,027,096
. GAS--5.2%
235,000 AGL Resources...................................... 4,450,312
661,600 Keyspan Energy Corp................................ 22,080,900
225,000 CMS Energy Corp. Class G........................... 4,851,562
245,000 EL Paso Natural Gas Co............................. 14,837,812
75,000 MCN Energy Group Inc............................... 2,400,000
400,000 National Fuel Gas Co............................... 17,600,000
444,700 NICOR Inc.......................................... 16,676,250
300,000 Washington Gas Light Co............................ 7,687,500
660,000 Williams Companies Inc............................. 30,896,250
--------------
121,480,586
</TABLE>
The accompanying note is an integral part of this financial statement.
4
<PAGE>
DUFF & PHELPS UTILITIES INCOME INC.
STATEMENT OF NET ASSETS--(CONTINUED)
(UNAUDITED)
SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES COMPANY (NOTE 1)
------ ------- --------------
<C> <S> <C>
. TELECOMMUNICATION--15.7%
1,143,100 Ameritech Corp..................................... $ 76,016,150
449,500 Bell Atlantic Corp................................. 36,156,656
565,000 Bellsouth Corp..................................... 26,131,250
420,200 British Telecommunications PLC ADR................. 27,995,825
695,000 Cable and Wireless ADS............................. 17,983,125
200,000 Royal PTT Nederland ADS............................ 7,812,500
1,318,615 SBC Communications Inc............................. 80,929,996
664,400 Telefonica De Espana ADS........................... 62,536,650
575,000 Sprint Corp........................................ 28,750,000
--------------
364,312,152
. NON-UTILITY--12.1%
175,000 Arden Realty Inc................................... 5,490,625
161,000 Bay Apartment Communities.......................... 6,429,938
309,000 Boston Properties Inc.............................. 10,139,062
253,800 CBL & Associates Properties Inc.................... 6,582,937
350,000 Centerpoint Properties Corporation................. 12,709,375
120,000 Chelsea GCA Realty Inc............................. 5,010,000
100,000 Colonial Properties Trust.......................... 2,987,500
450,000 Cornerstone Properties Inc......................... 8,606,250
50,000 Crescent Operating Inc............................. 1,006,250
500,000 Crescent Real Estate Equities Inc.................. 20,062,500
200,000 Developers Diversified Realty Corp................. 8,000,000
400,000 Equity Residential Properties Trust................ 21,825,000
200,000 Essex Property Trust Inc........................... 6,962,500
478,100 First Industrial Realty Trust...................... 16,255,400
126,300 Gables Residential Trust........................... 3,425,887
131,000 Great Lakes REIT Inc............................... 2,480,813
455,000 Highwoods Properties Inc........................... 16,095,625
175,000 Macerich Co........................................ 5,053,125
590,000 Nationwide Health Properties....................... 14,196,875
500,008 Patriot American Hospitality....................... 15,937,755
714,200 Reckson Associates Realty Corp..................... 19,015,575
512,500 Starwood Lodging Trust............................. 29,436,719
174,200 Sunstone Hotel Investors Inc....................... 3,070,275
373,400 TriNet Corporate Realty Trust...................... 13,115,675
200,000 Urban Shopping Centers Inc......................... 6,400,000
160,600 Vornado Realty Trust............................... 13,640,962
200,000 Weeks Corp......................................... 6,550,000
--------------
280,486,623
--------------
Total Common Stocks (Cost--$1,523,381,045)......... 1,667,306,457
--------------
</TABLE>
The accompanying note is an integral part of this financial statement.
5
<PAGE>
DUFF & PHELPS UTILITIES INCOME INC.
STATEMENT OF NET ASSETS--(CONTINUED)
(UNAUDITED)
SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES COMPANY (NOTE 1)
------ ------- ------------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS--0.0%
. NON-UTILITY--0.0%
47,000 Tanger Factory Outlet Centers Inc. Series A............... $ 1,269,000
------------
Total Convertible Preferred Stocks (Cost--$989,350)....... 1,269,000
------------
</TABLE>
BONDS--27.4%
<TABLE>
<CAPTION>
RATINGS
--------------------------
STANDARD MARKET
DUFF & AND VALUE
PAR VALUE COMPANY PHELPS MOODY'S POOR'S (NOTE 1)
--------- ------- --------- ------- -------- --------------
<C> <S> <C> <C> <C> <C>
. ELECTRIC--14.6%
$24,920,000 Alabama Power Co.
9%, due 12/01/24....... AA- A1 A+ 27,583,473
14,500,000 Commonwealth Edison Co.
9 3/4%, due 2/15/20.... BBB Baa2 BBB 16,130,177
7,500,000 Commonwealth Edison Co.
9 7/8%, due 6/15/20.... BBB Baa2 BBB 8,691,314
6,850,000 Commonwealth Edison Co.
8 5/8%, due 2/01/22.... BBB Baa2 BBB 7,279,029
5,000,000 Commonwealth Edison Co.
8 3/8%, due 9/15/22.... BBB Baa2 BBB 5,211,030
10,000,000 Commonwealth Edison Co.
8 3/8%, due 2/15/23.... BBB Baa2 BBB 10,460,390
5,000,000 Duke Energy Corp.
8 3/8%, due 12/01/21... AA Aa3 A+ 5,178,149
8,000,000 Duquesne Light Co.
7.55%, due 6/15/25..... A- Baa1 BBB+ 8,010,671
5,000,000 Gulf States Utilities
8.94%, due 1/01/22..... Not Rated Baa3 BBB- 5,385,795
20,000,000 Illinois Power Co.
8%, due 2/15/23........ BBB+ Baa1 BBB 20,425,537
15,000,000 New York State Electric
& Gas Corp. 9 7/8, due
11/01/20............... Not Rated Baa1 BBB+ 16,380,688
</TABLE>
The accompanying note is an integral part of this financial statement.
6
<PAGE>
DUFF & PHELPS UTILITIES INCOME INC.
STATEMENT OF NET ASSETS--(CONTINUED)
(UNAUDITED)
SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
RATINGS
--------------------------
STANDARD MARKET
DUFF & AND VALUE
PAR VALUE COMPANY PHELPS MOODY'S POOR'S (NOTE 1)
--------- ------- --------- ------- -------- ------------
<C> <S> <C> <C> <C> <C>
$ 4,000,000 New York State Electric
& Gas Corp. 8 7/8%, due
11/01/21............... Not Rated Baa1 BBB+ $ 4,306,652
6,500,000 Ohio Edison Co.
8 3/4%, due 2/15/98.... BBB+ Baa2 BB+ 6,560,729
14,105,000 Pennsylvania Power &
Light Co.
9 1/4%, due 10/01/19... Not Rated A3 A- 15,614,897
16,850,000 Pennsylvania Power &
Light Co.
9 3/8%, due 7/01/21.... Not Rated A3 A- 19,057,803
11,750,000 Philadelphia Electric
8 3/4%, due 4/01/22.... BBB+ Baa1 BBB+ 12,389,281
27,580,000 Potomac Electric Power
Co.
9%, due 6/01/21........ AA- A1 A 31,320,096
10,000,000 Public Service Co. of
Colorado
8 3/4%, due 3/01/22.... Not Rated A3 A- 10,981,789
3,000,000 Rochester Gas & Electric
Corp.
9 3/8%, due 4/01/21.... BBB+ Baa1 BBB+ 3,318,336
29,830,000 Texas Utilities Electric
Co.
9 3/4%, due 5/01/21.... Not Rated Baa1 BBB+ 33,572,560
10,000,000 Texas Utilities Electric
Co.
8 3/4%, due 11/01/23... Not Rated Baa1 BBB+ 11,044,379
12,000,000 UtiliCorp United Inc.
8%, due 3/01/23........ BBB Baa3 BBB 12,297,708
4,000,000 Union Electric Co.
8 3/4%, due 12/01/21... AA- A1 AA- 4,390,416
29,780,000 Virginia Electric &
Power Co.
9 3/8%, due 6/01/98.... A A2 A 30,438,672
11,500,000 Virginia Electric &
Power Co.
8 1/4%, due 3/01/25.... A A2 A 12,408,406
------------
338,437,977
. GAS--2.5%
2,125,000 ANR Pipeline Co.
9 5/8%, due 11/01/21... Not Rated Baa2 BBB 2,714,853
8,875,000 Enron Corp.
9.65%, due 5/15/01..... BBB+ Baa2 BBB+ 9,799,100
</TABLE>
The accompanying note is an integral part of this financial statement.
7
<PAGE>
DUFF & PHELPS UTILITIES INCOME INC.
STATEMENT OF NET ASSETS--(CONTINUED)
(UNAUDITED)
SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
RATINGS
--------------------------
STANDARD MARKET
DUFF & AND VALUE
PAR VALUE COMPANY PHELPS MOODY'S POOR'S (NOTE 1)
--------- ------- --------- ------- -------- ------------
<C> <S> <C> <C> <C> <C>
$ 7,885,000 Pennzoil Co.
10 1/8%, due 11/15/09.. Not Rated Baa3 BBB $ 9,888,460
10,000,000 Phillips Petroleum Co.
9.18%, due 9/15/21..... Not Rated A3 A- 11,302,539
4,500,000 Sonat Inc.
9 1/2%, due 8/15/99.... Not Rated A3 A- 4,757,841
5,000,000 Southern California Gas
Co.
8 3/4%, due 10/01/21... AA- Aa- A- 5,487,440
14,500,000 Transcontinental Gas
Pipe Line Corp. 9 1/8%,
due 2/01/17............ BBB+ Baa1 BBB 15,125,950
------------
59,076,183
. TELECOMMUNICATION--9.1%
13,000,000 AT&T Corp.
8.35%, due 1/15/25..... AA Aa3 AA- 14,000,700
13,500,000 Bellsouth Capital
Funding Corp.
9 1/4%, due 1/15/98.... AA+ Aa1 AAA 13,632,528
35,428,000 GTE Corp
9 3/8%, due 12/01/00... A- Baa1 A 38,569,327
6,000,000 GTE Corp.
10 1/4%, due 11/01/20.. A- Baa1 A 6,901,128
10,000,000 GTE California Inc.
8.07%, due 4/15/24..... AA A1 AA- 10,836,739
6,625,000 GTE Corp.
7.90%, due 2/01/27..... A- A3 A 6,963,431
11,995,000 Mountain States
Telephone
9 1/2%, due 5/01/00.... AA- Aa3 A 12,917,882
13,750,000 New England Telephone &
Telegraph 9%, due
8/01/31................ AA Aa2 AA 15,207,003
10,000,000 New York Telephone Co.
7 5/8%, due 2/01/23.... A+ A2 A+ 10,297,989
10,000,000 New York Telephone Co.
7%, due 8/15/25........ A+ A2 A+ 9,675,000
20,740,000 New York Telephone Co.
9 3/8%, due 7/15/31.... A+ A2 A+ 23,304,521
5,000,000 Pacific Bell
8 1/2%, due 8/15/31.... AA- A1 AA- 5,402,260
</TABLE>
The accompanying note is an integral part of this financial statement.
8
<PAGE>
DUFF & PHELPS UTILITIES INCOME INC.
STATEMENT OF NET ASSETS--(CONTINUED)
(UNAUDITED)
SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
RATINGS
-----------------------
STANDARD MARKET
DUFF & AND VALUE
PAR VALUE COMPANY PHELPS MOODY'S POOR'S (NOTE 1)
--------- ------- ------ ------- -------- --------------
<C> <S> <C> <C> <C> <C>
$24,900,000 Southwestern Bell
Telephone
7.20%, due 10/15/26.... AA Aa3 AA $ 24,670,347
13,000,000 US West Capital Funding
7.90%, due 2/01/27..... BBB+ Baa1 BBB+ 13,679,326
5,000,000 US West Communications
8 7/8%, due 6/01/31.... AA- Aa3 A 5,535,450
--------------
211,593,631
. NON-UTILITY--1.2%
15,700,000 American General Corp.
9 5/8%, due 2/01/18.... A+ A2 AA- 16,541,707
8,000,000 Dayton Hudson Corp.
9 7/8%, due 7/01/20.... A- Baa1 BBB+ 10,193,103
--------------
26,734,810
--------------
Total Bonds (Cost--$624,730,204)................. 635,842,601
--------------
U.S. TREASURY OBLIGATIONS--1.5%
29,000,000 U.S. Treasury Bonds
11 3/4%, due 2/15/01............................ 34,102,201
--------------
Total U.S. Treasury Obligations (Cost--
$35,325,625).................................... 34,102,201
--------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--0.1%
1,321,344 Federal National Mortgage Association
8%, due 5/01/05................................. 1,363,461
--------------
Total U.S. Government Agency Obligations (Cost--
$1,365,526)..................................... 1,363,461
--------------
CASH AND OTHER ASSETS LESS LIABILITIES--(1.1%)............... ($ 19,196,687)
--------------
NET ASSETS
(equivalent to $9.01 per share of common stock based on
202,181,356 shares of common stock outstanding, authorized
250,000,000 shares, $.001 par value per share and 5,000
shares remarketed preferred stock outstanding, authorized
100,000,000 shares, liquidation preference $100,000 per
share, $.001 par value per share)........................... $2,320,687,033
==============
</TABLE>
The percentage shown for each investment category is the total value of that
category as a percentage of the total net assets of the Fund.
The accompanying note is an integral part of this financial statement.
9
<PAGE>
DUFF & PHELPS UTILITIES INCOME INC.
STATEMENT OF NET ASSETS--(CONTINUED)
(UNAUDITED)
SEPTEMBER 30, 1997
(1) The market values for securities are determined as follows: Securities
traded on a national securities exchange or traded over-the-counter and
quoted on the NASDAQ System are valued at last sales prices. Securities so
traded for which there were no sales and other securities are valued at
the mean of the most recent bid-asked quotations. Bonds not traded on a
securities exchange nor quoted on the NASDAQ System are valued at fair
value using a procedure determined in good faith by the Board of Directors
which includes the use of a pricing service. Each money market instrument
having a maturity of 60 days or less is valued on an amortized cost basis.
Other assets and securities are valued at a fair value, as determined in
good faith by the Board of Directors.
10
<PAGE>
BOARD OF DIRECTORS
WALLACE B. BEHNKE
HARRY J. BRUCE
FRANKLIN A. COLE
GORDON B. DAVIDSON
ROBERT J. DAY
CLAIRE V. HANSEN, CFA
FRANCIS E. JEFFRIES, CFA
NANCY LAMPTON
BERYL W. SPRINKEL
OFFICERS
CLAIRE V. HANSEN, CFA
Chairman
CALVIN J. PEDERSEN, CFA
President and Chief Executive Officer
RICHARD J. SPLETZER, CFA, CIC
Executive Vice President and Chief Investment Officer
T. BROOKS BEITTEL, CFA
Senior Vice President, Secretary and Treasurer
NATHAN I. PARTAIN, CFA
Senior Vice President
JOSEPH C. CURRY, JR.
Vice President
MICHAEL SCHATT
Vice President
DIANNA P. WENGLER
Assistant Secretary
DUFF & PHELPS
UTILITIES INCOME INC.
Common stock listed on the New York Stock Exchange under the symbol DNP
55 East Monroe Street
Chicago, Illinois 60603
(800) 680-4367
(312) 368-5510
Investment Adviser
Duff & Phelps
Investment Management Co.
55 East Monroe Street
Chicago, Illinois 60603
Administrator
J.J.B. Hilliard, W.L. Lyons, Inc.
Hilliard Lyons Center
Louisville, Kentucky 40202
(502) 588-8400
Transfer Agent
Dividend Disbursing
Agent and Custodian
The Bank of New York
Shareholder Relations
Church Street Station
P.O. Box 11258
New York, New York 10286-1258
1-800-432-8224
Legal Counsel
Mayer, Brown & Platt
190 South LaSalle Street
Chicago, Illinois 60603
Independent Public Accountants
Arthur Andersen LLP
33 West Monroe Street
Chicago, Illinois 60603
11
<PAGE>
Duff & Phelps
Utilities Income Inc.
3RD
THIRD QUARTER
REPORT
SEPTEMBER 30,
1997
[ART]
