LIBERTY UTILITY FUND INC
N-18F1, 1994-07-28
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              SECURITIES AND EXCHANGE COMMISSION
                               
                     WASHINGTON, DC 20549
                               
                               
                               
                               
                         FORM N-18F-1
                               
                               
                               
         Notification of Election Pursuant to Rule 18f
                               
           Under the Investment Company Act of 1940
                               
                               
                               
                               
                  LIBERTY UTILITY FUND, INC.
                               
                               
                  (Exact Name of Registrant)
                               
                               
                               
                   NOTIFICATION OF ELECTION

   The undersigned registered open-end investment company
hereby notifies the Securities and Exchange Commission that it
elects to commit itself to pay in cash all redemptions by a
shareholder of record as provided by Rule 18f-1 under the
Investment Company Act of 1940.  It is understood that this
election is irrevocable while such Rule is in effect unless
the Commission by order upon application permits the
withdrawal of this Notification of Election.


                           SIGNATURE

   Pursuant to the requirements of Rule 18f-1 under the
Investment Company Act of 1940, the Registrant has caused this
Notification of Election to be duly executed on its behalf in
the City of Pittsburgh and the Commonwealth of Pennsylvania on
the 28th day of July, 1994.



LIBERTY UTILITY FUND, INC.
(Name of Registrant)



By:  /s/Charles H. Field
   Charles H. Field, Assistant Secretary
   Attorney in Fact for John F. Donahue,
   Chairman and Director
   July 28, 1994




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