<PAGE>
DEAR FELLOW SHAREHOLDERS:
PERFORMANCE REVIEW: So far this year, utility investments have lived up to
their reputation for providing superior returns relative to the broader stock
market during periods of substantial market weakness. The defensive
characteristics of the utility sector--high dividend yield and a largely
domestic stable business
profile--are once again offering shelter as investors head for cover from the
economic fallout of the Asian and Russian crises and the increased likelihood
of an economic slow down in the United States and Europe.
For the third quarter of 1998, your Fund had a total return with reinvested
dividends of 8.7%, while the S&P Utilities Index was up 4.6% and the less
diversified Dow Jones Utilities Average gained 5.4%. Similarly favorable
comparisons can be made for year-to-date 1998. Your Fund had a total return of
15.8% versus 15.5% for the S&P Utilities Index and 11.9% for the Dow Jones
Utilities Average.
The Fund continued to pay its regular 6.5-cent monthly dividend during the
quarter. Our 6.5-cent monthly rate, without compounding, would be 78 cents
annualized, or a 7.1% dividend yield based on the September 30, 1998 closing
market price of $11.0625 per share of common stock. The S&P Utilities Index
and the Dow Jones Utilities Average had yields at that date of 3.9% and 3.7%,
respectively.
ELECTRICS TO THE DEFENSE! As global economic turmoil and capital market
volatility put investors in retreat during the quarter, many non-traditional
utility investors turned toward yield-oriented electric utility stocks. The
defensive characteristics of utility stocks paved the way for the S&P electric
group to outperform the broader market during the quarter, totally erasing the
lag experienced during the first half of the year. While your Fund managers
cannot say how long those non-traditional utility investors will stick with
the group, we do believe that the industry fundamentals are in place for
sustainable value to be added to the electric group going forward. The
foundation for that value is electric industry restructuring.
States have responded reasonably to restructuring issues. Retail competition
is being introduced at a moderate pace, and utilities are being allowed to
recover substantial portions of potentially stranded costs. In exchange for
consumer rate reductions, several companies (e.g. Edison International,
Unicom, PECO Energy) are being allowed to issue stranded cost securitization
bonds (rate reduction bonds). The utility receives the bond proceeds and a
specific portion of electric revenues is dedicated to the maintenance of bond
principal and interest payments. Significant amounts of cash can be obtained
by utilities from rate reduction bonds, and utilities are mostly targeting
debt repayments and stock buybacks as the major uses for the cash.
The validity of the restructuring progress was put to the test by voter
referendums in California and Massachusetts that were aimed at throwing out
electric industry restructuring legislation. However, on November 3, voters in
both states rejected the referendums and kept in place electric industry
restructuring legislation. Reasonable restructuring measures have been
constructed and supported by regulators and legislators in several states
across the country, and now, in two key states, the voters themselves have
approved the new format for utility regulation.
EL NINO CREATES GAS OPPORTUNITIES: The first nine months of 1998 posed many
challenges for the natural gas industry. The combination of a strong "El Nino"
weather pattern which gave rise to an unusually warm winter, low natural gas
and oil prices, concerns about international activities, and a slow down in
merger and acquisition activity were the keys to the underperformance of the
natural gas group relative to the S&P utilities. This lag in performance gave
your Fund's management opportunities to increase its natural gas holdings at
very attractive valuation levels. We believe the group may benefit from a
pick-up in earnings growth, improving regulatory climate, and the acceleration
of merger and acquisition activity.
<PAGE>
We expect that earnings may improve for three main reasons: First, following
"El Nino", the coming winter is expected to be colder than normal as "La Nina"
takes over. Even if "La Nina" fails to materialize, just a return to normal
weather would give an immediate boost to earnings. Second, many companies have
invested heavily in faster growing non-regulated businesses, some of which are
beginning to pay off. Third, more jurisdictions are adopting incentive
regulation that allows companies to flow more of the benefits of cost
reductions and productivity improvements to the bottom line. Overall, the
group's earnings visibility is improving, with a growing list of companies now
poised to grow in the 8-10% range. Finally, we believe the current favorable
valuation climate could produce a resurgence in merger and acquisition
activity, which came to a virtual halt in the first three quarters of 1998.
TELCOS SWITCHING ON DOUBLE-DIGIT GROWTH: As with the electrics, the global
economic crisis benefited the domestic telecommunication industry in the third
quarter. Investors seemed to overcome their fear of competition, loading up on
the incumbent local exchange carriers. More importantly though, our U.S.
telecommunications holdings continue to benefit from the strong demand for
telecom services. This was again highlighted in the third quarter earnings
releases with most of the companies posting double-digit earnings growth.
Strong revenue gains combined with ongoing cost controls are supporting this
growth.
On the revenue side, the explosion in demand for data services (i.e.
Internet, high-speed lines) has transformed the industry worldwide. While it
has encouraged new competitors to enter the business, it has also given fresh
life to the incumbents. Data services together with the new valued-added
services (such as call waiting, call forwarding, caller ID, etc.) have more
than offset the slower growth from the traditional telephone business. We
expect this trend to continue for several quarters as the impact from
competition remains limited.
The bottom line for the telecom companies is also benefiting from the
continuous drive to cut costs from the business. Add to that the synergies
available due to mergers and consolidation within the industry and you have
what seems to be a source for earnings enhancements. As a result, we remain
comfortable with the heavy weighting of incumbent telephone companies within
our telecommunication holdings.
BOARD OF DIRECTORS' MEETING: At the regular October Board of Directors'
meeting, upon recommendation of the Board's Nominating Committee, Mr. Calvin
J. Pedersen, the Fund's President and Chief Executive Officer, was elected to
the Board of Directors beginning November 1, 1998. The untimely passing of
director Robert J. Day had created a Board vacancy. Mr. Pedersen will fill the
position of Mr. Day and serve as director until the next regularly scheduled
shareholder meeting and election of directors.
The Board also declared the following monthly dividend:
<TABLE>
<CAPTION>
PAYABLE
CENTS PER SHARE RECORD DATE DATE
--------------- ----------- -------
<S> <C> <C>
6.5 cents November 30 December 10
</TABLE>
The Fund's dividend reinvestment and cash purchase plan allows participating
shareholders to make monthly cash purchases of common shares in addition to
the common shares that they purchase through reinvestment of their monthly
dividends. The Board approved an increase in the monthly cash investment
permitted under the Fund's cash purchase plan from $1,000 to $5,000.
2
<PAGE>
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.
Those shareholders whose shares are held for them by a brokerage house or
nominee in "street-name" may not participate in the Fund's automatic dividend
reinvestment plan inasmuch as the Fund cannot communicate directly with those
shareholders since the Fund does not have their 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.
VISIT US ON THE WEB: You can obtain the most recent shareholder financial
report and dividend information at our web site http://www.duffutility.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, 1998
COMMON STOCKS--75.3%
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES COMPANY (NOTE 1)
------ ------- --------------
<C> <S> <C>
. ELECTRIC--43.0%
1,318,600 BEC Energy......................................... $ 57,441,512
1,017,900 Carolina Power & Light Co.......................... 47,014,256
1,352,700 CMS Energy Corp.................................... 58,926,994
450,000 Consolidated Edison Inc............................ 23,456,250
1,265,000 DQE Incorporated................................... 48,860,625
1,000,000 Duke Energy Corp................................... 66,187,500
1,858,400 Edison International............................... 47,737,650
200,000 Electricidade DePortugal ADR....................... 9,050,000
1,593,400 Endesa S.A......................................... 35,054,800
1,500,000 FirstEnergy Corp................................... 46,593,750
1,000,000 FPL Group Inc...................................... 69,687,500
1,000,000 GPU Inc............................................ 42,500,000
1,500,000 Houston Industries Inc. ........................... 46,687,500
686,500 National Power PLC ADR............................. 25,743,750
1,000,000 New Century Energies Inc........................... 48,687,500
1,067,100 New England Electric System........................ 44,284,650
2,256,600 NIPSCO Industries Inc.............................. 74,185,725
1,000,000 Pacificorp......................................... 19,187,500
920,000 Pinnacle West Capital Corp......................... 41,227,500
302,000 Powergen PLC ADR................................... 18,044,500
300,000 RWE AG ADR......................................... 13,919,820
500,000 Scottish Power PLC ADR............................. 19,875,000
902,280 Sempra Energy Solutions............................ 23,515,673
2,000,000 Southern Co........................................ 58,875,000
500,000 Southern Electric PLC ADR.......................... 5,633,500
1,319,700 TECO Energy Inc.................................... 37,693,931
1,800,000 Unicom Corp........................................ 67,275,000
--------------
1,097,347,386
. GAS--7.9%
926,000 AGL Resources...................................... 17,941,250
225,000 CMS Energy Corp. Class G........................... 5,484,375
590,600 Columbia Energy Group.............................. 34,623,925
744,800 EL Paso Energy Corp................................ 24,159,450
500,000 Enron Corp......................................... 26,406,250
332,300 KN Energy.......................................... 17,030,375
400,000 National Fuel Gas Co............................... 18,800,000
444,700 NICOR Inc.......................................... 18,427,256
1,320,000 Williams Companies Inc............................. 37,950,000
--------------
200,822,881
</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, 1998
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES COMPANY (NOTE 1)
------ ------- --------------
<C> <S> <C>
. TELECOMMUNICATION--15.6%
600,000 Alltell Corp....................................... $ 28,425,000
1,619,000 Bell Atlantic Corp................................. 78,420,313
565,000 BellSouth Corp..................................... 42,516,250
1,015,000 Cable and Wireless ADS............................. 27,531,875
2,037,230 SBC Communications Inc............................. 90,529,408
575,000 Sprint Corp........................................ 41,400,000
556,250 Telecom Corp. of New Zealand Interim ADR........... 7,578,906
142,100 Telestra Corp. ADR................................. 7,904,313
540,000 Vivendi ADR........................................ 21,504,420
1,000,000 U.S. West Inc...................................... 52,437,500
--------------
398,247,985
. NON-UTILITY--8.8%
125,000 Alexandria Real Estate Equities Inc................ 3,390,625
200,000 Avalon Bay Communities Inc......................... 6,812,500
409,000 Boston Properties Inc.............................. 11,656,500
253,800 CBL & Associates Properties Inc.................... 6,535,350
350,000 Centerpoint Properties Corporation................. 12,687,500
120,000 Chelsea GCA Realty Inc............................. 4,110,000
150,000 Colonial Properties Trust.......................... 4,246,875
450,000 Cornerstone Properties Inc......................... 6,806,250
50,000 Crescent Operating Inc............................. 350,000
580,000 Crescent Real Estate Equities Inc.................. 14,645,000
400,000 Developers Diversified Realty Corp................. 7,300,000
400,000 Equity Residential Properties Trust................ 16,875,000
200,000 Essex Property Trust Inc........................... 6,200,000
478,100 First Industrial Realty Trust...................... 12,191,550
126,300 Gables Residential Trust........................... 3,386,419
63,200 Golf Trust of America Inc.......................... 1,880,200
72,800 Great Lakes REIT Inc............................... 1,210,300
200,000 Health & Retirement Property Trust................. 3,225,000
455,000 Highwoods Properties Inc........................... 12,626,250
175,000 Macerich Co........................................ 4,703,125
290,000 Nationwide Health Properties....................... 6,525,000
200,000 Omega Healthcare Investors Inc..................... 6,537,500
3,819 Omega WorldWide Inc................................ 19,572
600,008 Patriot American Hospitality....................... 7,650,102
714,200 Reckson Associates Realty Corp..................... 16,783,700
328,416 Reckson Service Industries Inc..................... 769,725
466,700 Sunstone Hotel Investors Inc....................... 4,229,469
402,400 TriNet Corporate Realty Trust...................... 13,128,300
200,000 Urban Shopping Centers Inc......................... 6,575,000
445,000 Vornado Realty Trust............................... 14,740,625
200,000 Weeks Corp......................................... 5,975,000
--------------
223,772,437
--------------
Total Common Stocks (Cost--$1,691,469,965)......... 1,920,190,689
--------------
</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, 1998
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES COMPANY (NOTE 1)
------ ------- ------------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS--1.8%
. NON-UTILITY--0.0%
30,000 Tanger Factory Outlet Centers Inc. Series A.............. $ 624,375
------------
. UTILITY--1.8%
789,100 Texas Utilities Co....................................... 44,386,875
------------
Total Convertible Preferred Stocks (Cost--$40,241,708)... 45,011,250
------------
</TABLE>
BONDS--24.1%
<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--13.3%
$24,920,000 Alabama Power Co.
9%, due 12/01/24....... AA- A1 A+ 27,495,058
14,500,000 Commonwealth Edison Co.
9 3/4%, due 2/15/20.... BBB Baa2 BBB 15,882,938
7,500,000 Commonwealth Edison Co.
9 7/8%, due 6/15/20.... BBB Baa2 BBB 9,124,433
6,850,000 Commonwealth Edison Co.
8 5/8%, due 2/01/22.... BBB Baa2 BBB 7,661,821
5,000,000 Commonwealth Edison Co.
8 3/8%, due 9/15/22.... BBB Baa2 BBB 5,531,405
10,000,000 Commonwealth Edison Co.
8 3/8%, due 2/15/23.... BBB Baa2 BBB 11,166,000
8,000,000 Duquesne Light Co.
7.55%, due 6/15/25..... A- Baa1 BBB+ 8,373,944
5,000,000 Gulf States Utilities
8.94%, due 1/01/22..... Not Rated Baa3 BBB- 5,300,535
20,000,000 Illinois Power Co.
8%, due 2/15/23........ BBB+ Baa1 BBB 21,069,540
5,000,000 Illinois Power Co.
7 1/2%, due 7/15/25.... BBB+ Baa1 BBB 5,267,600
</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, 1998
<TABLE>
<CAPTION>
RATINGS
--------------------------
STANDARD MARKET
DUFF & AND VALUE
PAR VALUE COMPANY PHELPS MOODY'S POOR'S (NOTE 1)
--------- ------- --------- ------- -------- ------------
<C> <S> <C> <C> <C> <C>
$ 5,000,000 Louisiana Power & Light
Co.
8 3/4%, due 3/01/26.... Not Rated Baa2 BBB $ 5,420,425
15,000,000 New York State Electric
& Gas Corp. 9 7/8, due
11/01/20............... Not Rated Baa1 BBB+ 16,816,800
4,000,000 New York State Electric
& Gas Corp. 8 7/8%, due
11/01/21............... Not Rated Baa1 BBB+ 4,453,508
14,105,000 Pennsylvania Power &
Light Co.
9 1/4%, due 10/01/19... Not Rated A3 A- 15,148,883
16,850,000 Pennsylvania Power &
Light Co.
9 3/8%, due 7/01/21.... Not Rated A3 A- 19,419,271
11,750,000 Philadelphia Electric
8 3/4%, due 4/01/22.... Not Rated Baa1 BBB+ 12,441,699
27,580,000 Potomac Electric Power
Co.
9%, due 6/01/21........ A+ A1 A 30,629,355
10,000,000 Public Service Co. of
Colorado
8 3/4%, due 3/01/22.... Not Rated A3 A 11,141,080
9,000,000 Puget Capital Trust
8.231%, due 6/01/27.... Not Rated Baa2 BBB 10,011,024
3,000,000 Rochester Gas & Electric
Corp.
9 3/8%, due 4/01/21.... A- A3 A- 3,363,912
29,830,000 Texas Utilities Electric
Co.
9 3/4%, due 5/01/21.... A- Baa1 BBB+ 34,376,420
10,000,000 Texas Utilities Electric
Co.
8 3/4%, due 11/01/23... A- Baa1 BBB+ 11,341,810
12,600,000 Union Electric Co.
8 3/4%, due 12/01/21... Not Rated Aa3 AA- 14,161,367
12,000,000 UtiliCorp United Inc.
8%, due 3/01/23........ BBB Baa3 BBB 13,316,352
17,700,000 Virginia Electric &
Power Co.
8 1/4%, due 3/01/25.... A A2 A 20,245,048
------------
339,160,228
</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, 1998
<TABLE>
<CAPTION>
RATINGS
--------------------------
STANDARD MARKET
DUFF & AND VALUE
PAR VALUE COMPANY PHELPS MOODY'S POOR'S (NOTE 1)
--------- ------- --------- ------- -------- ------------
<C> <S> <C> <C> <C> <C>
. GAS--2.4%
$ 2,125,000 ANR Pipeline Co.
9 5/8%, due 11/01/21... Not Rated Baa2 BBB $ 2,733,768
8,875,000 Enron Corp.
9.65%, due 5/15/01..... BBB+ Baa2 BBB+ 9,848,108
5,000,000 KN Energy Inc.
7 1/4, due 3/10/28..... Not Rated Baa2 BBB- 4,989,755
7,885,000 Penzoil Co.
10 1/8%, due 11/15/09.. Not Rated Baa1 BBB 9,948,299
10,000,000 Phillips Petroleum Co.
9.18%, due 9/15/21..... Not Rated A3 A- 11,283,920
4,500,000 Sonat Inc.
9 1/2%, due 8/15/99.... Not Rated A3 BBB+ 4,653,702
5,000,000 Southern California Gas
Co.
8 3/4%, due 10/01/21... AA- A1 AA- 5,603,925
9,000,000 Trans-Canada Pipeline
9 1/8, due 4/20/06..... Not Rated A3 BBB+ 10,743,120
------------
59,804,597
. TELECOMMUNICATION--8.0%
34,000,000 AT&T Corp.
8.35%, due 1/15/25..... AA Aa3 AA- 39,216,178
35,428,000 GTE Corp
9 3/8%, due 12/01/00... A- Baa1 A 38,542,086
6,000,000 GTE Corp.
10 1/4%, due 11/01/20.. A- Baa1 A 6,884,172
10,000,000 GTE California Inc.
8.07%, due 4/15/24..... AA A2 AA- 11,268,170
6,625,000 GTE Corp.
7.90%, due 2/01/27..... A- Baa1 A 7,434,065
11,995,000 Mountain States
Telephone
9 1/2%, due 5/01/00.... Not Rated A2 A+ 12,786,118
13,750,000 New England Telephone &
Telegraph 9%, due
8/01/31................ AA Aa2 AA 15,744,561
10,000,000 New York Telephone Co.
7 5/8%, due 2/01/23.... A A2 A+ 10,912,070
</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, 1998
<TABLE>
<CAPTION>
RATINGS
-----------------------
STANDARD MARKET
DUFF & AND VALUE
PAR VALUE COMPANY PHELPS MOODY'S POOR'S (NOTE 1)
--------- ------- ------ ------- -------- --------------
<C> <S> <C> <C> <C> <C>
$20,740,000 New York Telephone Co.
9 3/8%, due 7/15/31.... A A2 A+ 23,731,973
5,000,000 Pacific Bell
8 1/2%, due 8/15/31.... AA- A1 AA- 5,560,270
24,900,000 Southwestern Bell
Telephone
7.20%, due 10/15/26.... AA Aa3 AA 26,978,054
5,000,000 US West Communications
8 7/8%, due 6/01/31.... AA- A2 A+ 5,615,390
--------------
204,673,107
. NON-UTILITY--0.4%
8,000,000 Dayton Hudson Corp.
9 7/8%, due 7/01/20.... A- A3 BBB+ 11,168,800
--------------
11,168,800
--------------
Total Bonds (Cost--$586,140,948)................. 614,806,732
--------------
U.S. TREASURY OBLIGATIONS--3.0%
66,000,000 U.S. Treasury Bonds
11 3/4%, due 2/15/01............................ 76,848,816
--------------
Total U.S. Treasury Obligations (Cost--
$78,725,547).................................... 76,848,816
--------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--0.0%
919,882 Federal National Mortgage Association
8%, due 5/01/05................................. 954,666
--------------
Total U.S. Government Agency Obligations (Cost--
$950,641)....................................... 954,666
--------------
CASH AND OTHER ASSETS LESS LIABILITIES--(4.2%)............... (107,607,774)
--------------
NET ASSETS
(equivalent to $10.00 per share of common stock based on
205,046,737 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)........................... $2,550,204,379
==============
</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, 1998
(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
CLAIRE V. HANSEN, CFA
FRANCIS E. JEFFRIES, CFA
NANCY LAMPTON
CALVIN J. PEDERSEN, CFA
BERYL W. SPRINKEL
OFFICERS
CLAIRE V. HANSEN, CFA
Chairman
CALVIN J. PEDERSEN, CFA
President and Chief Executive Officer
NATHAN I. PARTAIN, CFA
Executive Vice President and Chief Investment Officer
T. BROOKS BEITTEL, CFA
Senior Vice President, Secretary and Treasurer
MICHAEL SCHATT
Senior Vice President
JOSEPH C. CURRY, JR.
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,
1998
