<PAGE> PAGE 1
000 B000000 06/30/98
000 C000000 0000831025
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 IDS UTILITIES INCOME FUND, INC.
001 B000000 811-5522
001 C000000 6126712772
002 A000000 IDS TOWER 10
002 B000000 MINNEAPOLIS
002 C000000 MN
002 D010000 55440
002 D020000 0010
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 AMERICAN EXPRESS FINANCIAL CORPORATION
008 B000001 A
008 C000001 801-14721
008 D010001 MINNEAPOLIS
008 D020001 MN
008 D030001 55440
008 D040001 0010
011 A000001 AMERICAN EXPRESS FINANCIAL ADVISORS INC.
011 B000001 8-16791
011 C010001 MINNEAPOLIS
011 C020001 MN
011 C030001 55440
011 C040001 0010
012 A000001 AMERICAN EXPRESS FIANACIAL CORPORATION
012 B000001 84-456
012 C010001 MINNEAPOLIS
012 C020001 MN
012 C030001 55440
<PAGE> PAGE 2
012 C040001 0010
013 A000001 KPMG PEAT MARWICK LLP
013 B010001 MINNEAPOIS
013 B020001 MN
013 B030001 55402
013 B040001 3900
014 A000001 AMERICAN EXPRESS FINANCIAL CORPORATION
014 B000001 8-31250
014 A000002 AMERICAN EXPRESS FINANCIAL ADVISORS INC.
014 B000002 8-16791
014 A000003 IDS LIFE INSURANCE COMPANY
014 B000003 8-14124
014 A000004 IDS SECURITIES CORPORATION
014 B000004 8-12550
014 A000005 AMERICAN EXPRESS SERVICE CORPORATION
014 B000005 8-27456
014 A000006 AMERICAN ENTERPRISE INVESTMENT SERVICES INC.
014 B000006 8-42582
015 A000001 AMERICAN EXPRESS TRUST COMPANY
015 B000001 C
015 C010001 MINNEAPOLIS
015 C020001 MN
015 C030001 55402
015 C040001 2307
015 E010001 X
015 A000002 MORGAN STANLEY TRUST COMPANY
015 B000002 S
015 C010002 BROOKLYN
015 C020002 NY
015 C030002 11201
015 C040002 2775
015 E040002 X
018 000000 Y
019 A000000 Y
019 B000000 47
019 C000000 IDSMUTFDGR
020 A000001 DEUTSCH MORGAN/C.J. LAWERENCE INC.
020 B000001 13-2730828
020 C000001 122
020 A000002 MORGAN STANLEY & CO., INC.
020 B000002 13-2655998
020 C000002 113
020 A000003 JAMES CAPEL INC.
020 B000003 52-1348224
020 C000003 105
020 A000004 LEHMAN BROTHERS
020 B000004 13-2518466
020 C000004 104
020 A000005 PAINEWEBBER INC.
020 B000005 13-2638166
020 C000005 90
<PAGE> PAGE 3
020 A000006 MORGAN (J.P.) SECURITIES INC.
020 B000006 13-3224016
020 C000006 87
020 A000007 SCHRODER WERTEIM CO., INC.
020 B000007 13-2697272
020 C000007 77
020 A000008 WEEDEN & CO. L.P.
020 B000008 13-3364318
020 C000008 75
020 A000009 DONALDSON, LUFKIN JENRETTE SEC. CORP.
020 B000009 13-2741729
020 C000009 66
020 A000010 PRUDENTIAL SECURITIES INC.
020 B000010 22-2347336
020 C000010 57
021 000000 2130
022 A000001 MORGAN (J.P.) SECURITIES INC.
022 B000001 13-3224016
022 C000001 239337
022 D000001 27073
022 A000002 LEHMAN COMMERICAL PAPER
022 B000002 13-2501865
022 C000002 223841
022 D000002 21225
022 A000003 GOLDMAN SACHS & CO.,
022 B000003 13-5108880
022 C000003 205370
022 D000003 25533
022 A000004 MERRILL LYNCH & CO,. INC.
022 B000004 13-5674085
022 C000004 112677
022 D000004 53824
022 A000005 MORGAN STANLEY & CO,. INC.
022 B000005 13-2655998
022 C000005 73226
022 D000005 37058
022 A000006 CREDIT SUISSE FIRST BOSTON
022 B000006 13-5659485
022 C000006 57605
022 D000006 29103
022 A000007 CHASE INVESTMENT SERVICES CORP.
022 B000007 13-5225436
022 C000007 27283
022 D000007 0
022 A000008 BANK OF AMERICA
022 B000008 94-1687655
022 C000008 24399
022 D000008 2692
022 A000009 BEAR STEARNS & CO., INC.
022 B000009 13-3299426
022 C000009 8033
<PAGE> PAGE 4
022 D000009 9569
022 A000010 JAMES CAPEL INC.
022 B000010 52-1348224
022 C000010 0
022 D000010 11817
023 C000000 1035508
023 D000000 234290
024 000000 Y
025 A000001 SALOMON BROTHERS INC.
025 B000001 13-3082694
025 C000001 D
025 D000001 3916
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 Y
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 28918
028 A020000 -4
028 A030000 0
028 A040000 11263
028 B010000 25746
028 B020000 21
028 B030000 0
028 B040000 10169
028 C010000 28621
028 C020000 5508
028 C030000 0
028 C040000 12100
028 D010000 31636
028 D020000 12
028 D030000 0
028 D040000 12712
028 E010000 26966
028 E020000 17
028 E030000 0
028 E040000 12251
028 F010000 29154
028 F020000 6387
028 F030000 0
028 F040000 14284
028 G010000 171041
028 G020000 11941
028 G030000 0
028 G040000 72779
028 H000000 38946
<PAGE> PAGE 5
029 000000 Y
030 A000000 3378
030 B000000 5.00
030 C000000 0.50
031 A000000 1203
031 B000000 0
032 000000 0
033 000000 2175
034 000000 Y
035 000000 98
036 A000000 N
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 100
043 000000 1020
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 500000
048 A020000 0.530
048 B010000 500000
048 B020000 0.505
048 C010000 1000000
048 C020000 0.480
048 D010000 1000000
048 D020000 0.455
048 E010000 3000000
048 E020000 0.430
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
<PAGE> PAGE 6
048 K010000 6000000
048 K020000 0.400
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 N
054 I000000 N
054 J000000 N
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 Y
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 100
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
<PAGE> PAGE 7
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 N
066 F000000 Y
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 Y
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 Y
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 Y
070 N020000 Y
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 Y
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 921230
071 B000000 796170
071 C000000 958071
071 D000000 83
<PAGE> PAGE 8
072 A000000 12
072 B000000 4724
072 C000000 31156
072 D000000 0
072 E000000 0
072 F000000 5074
072 G000000 379
072 H000000 0
072 I000000 1005
072 J000000 132
072 K000000 59
072 L000000 14
072 M000000 11
072 N000000 71
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 25
072 S000000 0
072 T000000 1020
072 U000000 0
072 V000000 0
072 W000000 1711
072 X000000 9501
072 Y000000 116
072 Z000000 26496
072AA000000 120505
072BB000000 0
072CC010000 93538
072CC020000 0
072DD010000 26205
072DD020000 0
072EE000000 105115
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 1021
074 B000000 0
074 C000000 43013
074 D000000 54366
074 E000000 27577
074 F000000 1059220
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 9740
074 K000000 0
074 L000000 3625
074 M000000 25
074 N000000 1198587
<PAGE> PAGE 9
074 O000000 8795
074 P000000 30
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 15753
074 S000000 0
074 T000000 1174009
074 U010000 130745
074 U020000 0
074 V010000 8.98
074 V020000 0.00
074 W000000 0.0000
074 X000000 75355
074 Y000000 0
075 A000000 0
075 B000000 986492
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 RELIANCE INSURANCE COMPANY
080 C000000 1250
081 A000000 N
081 B000000 0
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
<PAGE> PAGE 10
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE LESLIE L. OGG
TITLE VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> IDS UTILITIES INCOME FUND CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 964156302
<INVESTMENTS-AT-VALUE> 1184176024
<RECEIVABLES> 13364723
<ASSETS-OTHER> 1046472
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1198587219
<PAYABLE-FOR-SECURITIES> 8794877
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 15783553
<TOTAL-LIABILITIES> 24578430
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 880648596
<SHARES-COMMON-STOCK> 108334063
<SHARES-COMMON-PRIOR> 92038759
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 2
<ACCUMULATED-NET-GAINS> 73344078
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 220016117
<NET-ASSETS> 972796828
<DIVIDEND-INCOME> 31155985
<INTEREST-INCOME> 4723884
<OTHER-INCOME> 0
<EXPENSES-NET> 9383972
<NET-INVESTMENT-INCOME> 26495897
<REALIZED-GAINS-CURRENT> 120504923
<APPREC-INCREASE-CURRENT> 93538469
<NET-CHANGE-FROM-OPS> 240539289
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 23512270
<DISTRIBUTIONS-OF-GAINS> 91228835
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 18523901
<NUMBER-OF-SHARES-REDEEMED> 14979351
<SHARES-REINVESTED> 12750754
<NET-CHANGE-IN-ASSETS> 340008747
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 57943174
<OVERDISTRIB-NII-PRIOR> 280210
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5074299
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 9500652
<AVERAGE-NET-ASSETS> 846251587
<PER-SHARE-NAV-BEGIN> 8.04
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> 1.93
<PER-SHARE-DIVIDEND> .23
<PER-SHARE-DISTRIBUTIONS> 1.00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.98
<EXPENSE-RATIO> .86
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> IDS UTILITIES INCOME FUND CLASS B
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 964156302
<INVESTMENTS-AT-VALUE> 1184176024
<RECEIVABLES> 13364723
<ASSETS-OTHER> 1046472
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1198587219
<PAYABLE-FOR-SECURITIES> 8794877
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 15783553
<TOTAL-LIABILITIES> 24578430
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 880648596
<SHARES-COMMON-STOCK> 22407303
<SHARES-COMMON-PRIOR> 11618515
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 2
<ACCUMULATED-NET-GAINS> 73344078
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 220016117
<NET-ASSETS> 201175496
<DIVIDEND-INCOME> 31155985
<INTEREST-INCOME> 4723884
<OTHER-INCOME> 0
<EXPENSES-NET> 9383972
<NET-INVESTMENT-INCOME> 26495897
<REALIZED-GAINS-CURRENT> 120504923
<APPREC-INCREASE-CURRENT> 93538469
<NET-CHANGE-FROM-OPS> 240539289
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2690811
<DISTRIBUTIONS-OF-GAINS> 13882130
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11322130
<NUMBER-OF-SHARES-REDEEMED> 2448225
<SHARES-REINVESTED> 1914883
<NET-CHANGE-IN-ASSETS> 340008747
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 57943174
<OVERDISTRIB-NII-PRIOR> 281210
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5074299
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 9500652
<AVERAGE-NET-ASSETS> 135946047
<PER-SHARE-NAV-BEGIN> 8.04
<PER-SHARE-NII> .17
<PER-SHARE-GAIN-APPREC> 1.94
<PER-SHARE-DIVIDEND> .17
<PER-SHARE-DISTRIBUTIONS> 1.00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.98
<EXPENSE-RATIO> 1.62
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> IDS UTILITIES INCOME FUND CLASS Y
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 964156302
<INVESTMENTS-AT-VALUE> 1184176024
<RECEIVABLES> 13364723
<ASSETS-OTHER> 1046472
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1198587219
<PAYABLE-FOR-SECURITIES> 8794877
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 15783553
<TOTAL-LIABILITIES> 24578430
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 880648596
<SHARES-COMMON-STOCK> 4062
<SHARES-COMMON-PRIOR> 34255
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 2
<ACCUMULATED-NET-GAINS> 73344078
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 220016117
<NET-ASSETS> 36465
<DIVIDEND-INCOME> 31155985
<INTEREST-INCOME> 4723884
<OTHER-INCOME> 0
<EXPENSES-NET> 9383972
<NET-INVESTMENT-INCOME> 26495897
<REALIZED-GAINS-CURRENT> 120504923
<APPREC-INCREASE-CURRENT> 93538469
<NET-CHANGE-FROM-OPS> 240539289
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2108
<DISTRIBUTIONS-OF-GAINS> 3554
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 30749
<SHARES-REINVESTED> 556
<NET-CHANGE-IN-ASSETS> 340008747
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 57943174
<OVERDISTRIB-NII-PRIOR> 281210
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5074299
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 9500652
<AVERAGE-NET-ASSETS> 68250
<PER-SHARE-NAV-BEGIN> 8.04
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> 1.94
<PER-SHARE-DIVIDEND> .24
<PER-SHARE-DISTRIBUTIONS> 1.00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.98
<EXPENSE-RATIO> .79
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Independent Auditors' Report
on Internal Accounting Control
The Board of Directors and Shareholders
IDS Utilities Income Fund, Inc.:
In planning and performing our audit of the financial statements of
IDS Utilitis Income Fund, Inc. year ended June 30, 1998, we
considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements
of Form N-SAR, not to provide assurance on the internal control.
The management of IDS Utilities Income Fund, Inc. is responsible for
establishing and maintaining internal control. In fulfilling
this responsibility, estimates and judgments by management
are required to assess the expected benefits and related costs
of controls. Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented
in conformity with generally accepted accounting
principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or
irregularities may occur and not be detected. Also,
projection of any evaluation of internal control to future
periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness
of the design and operation may deteriorate.
Our consideration of the internal control would not necessarily
disclose all matters in the internal control that might be
material weaknesses under standards established by the
American Institute of Certified Public Accountants.
A material weakness is a condition in which the
design or operation of one or more of the internal
control components does not reduce to a relatively low
level the risk that errors or irregularities in amounts
that would be material in relation to the financial
statements being audited may occur and not be detected
within a timely period by employees in the normal course
of performing their assigned functions. However, we
noted no matters involving the internal control and
its operation, including controls for safeguarding
securities, that we consider to be a material weakness
as defined above.
This report is intended solely for the information and use
of management, the Board of Directors of IDS Utilities Income Fund, Inc.
and the Securities and Exchange Commission.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
August 7, 1998
