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<PAGE> PAGE 7
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SIGNATURE LESLIE L. OGG
TITLE VICE PRESIDENT
<TABLE> <S> <C>
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<NAME> AXP UTILITIES INCOME FUND CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
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<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 1490941801
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<DISTRIBUTIONS-OF-GAINS> 68741354
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<ARTICLE> 6
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<NUMBER> 2
<NAME> AXP UTILITIES INCOME FUND CLASS B
<S> <C>
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<NAME> AXP UTILITES INCOME FUND CLASS Y
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SHAREHOLDER RESPONSE SUMMARY REPORT Page 1
IDS FUNDS
IDS UTILITIES FUND, INC.
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
1. Election of Board members.
H. Brewster Atwater, Jr.
<S> <C> <C> <C>
Affirmative 94,974,056.000 54.663% 98.543%
Withhold 1,404,160.510 .808% 1.457%
TOTAL 96,378,216.510 55.471% 100.000%
Arne H. Carlson
Affirmative 94,768,675.929 54.544% 98.330%
Withhold 1,609,540.581 .927% 1.670%
TOTAL 96,378,216.510 55.471% 100.000%
Lynne V. Cheney
Affirmative 94,936,670.821 54.641% 98.504%
Withhold 1,441,545.689 .830% 1.496%
TOTAL 96,378,216.510 55.471% 100.000%
William H. Dudley
Affirmative 94,981,347.430 54.667% 98.551%
Withhold 1,396,869.080 .804% 1.449%
TOTAL 96,378,216.510 55.471% 100.000%
David R. Hubers
Affirmative 94,998,742.256 54.677% 98.569%
Withhold 1,379,474.254 .794% 1.431%
TOTAL 96,378,216.510 55.471% 100.000%
Heinz F. Hutter
Affirmative 94,926,185.914 54.635% 98.493%
Withhold 1,452,030.596 .836% 1.507%
TOTAL 96,378,216.510 55.471% 100.000%
Anne P. Jones
Affirmative 94,970,243.739 54.660% 98.539%
Withhold 1,407,972.771 .811% 1.461%
TOTAL 96,378,216.510 55.471% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT Page 2
IDS FUNDS
IDS UTILITIES FUND, INC.
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
William R. Pearce
Affirmative 94,890,209.803 54.614% 98.456%
Withhold 1,488,006.707 .857% 1.544%
TOTAL 96,378,216.510 55.471% 100.000%
Alan K. Simpson
Affirmative 94,879,146.567 54.608% 98.445%
Withhold 1,499,069.943 .863% 1.555%
TOTAL 96,378,216.510 55.471% 100.000%
John R. Thomas
Affirmative 95,001,199.491 54.678% 98.571%
Withhold 1,377,017.019 .793% 1.429%
TOTAL 96,378,216.510 55.471% 100.000%
C. Angus Wurtele
Affirmative 94,943,040.830 54.645% 98.511%
Withhold 1,435,175.680 .826% 1.489%
TOTAL 96,378,216.510 55.471% 100.000%
2. Ratify the selection of independent auditors
Affirmative 94,149,407.763 54.188% 97.687%
Against 913,359.834 .526% .948%
Abstain 1,315,448.913 .757% 1.365%
TOTAL 96,378,216.510 55.471% 100.000%
3. Change the Fund name from "IDS" to "AXP"
Affirmative 88,506,072.683 50.940% 91.832%
Against 6,151,814.082 3.541% 6.383%
Abstain 1,720,329.745 .990% 1.785%
TOTAL 96,378,216.510 55.471% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT Page 3
IDS FUNDS
IDS UTILITIES FUND, INC.
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
5. Approve changes to the Investment Management Services
Agreement
Affirmative 83,690,742.659 48.169% 89.487%
Against 7,155,610.643 4.118% 7.651%
Abstain 2,676,755.208 1.541% 2.862%
TOTAL 93,523,108.510 53.828% 100.000%
Not Voting 2,855,108.000
SHAREHOLDER RESPONSE SUMMARY REPORT Page 4
IDS FUNDS
IDS UTILITIES FUND, INC.
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
** FUND TOTALS: SHARES
RECORD TOTAL 173,745,733.616
VOTED SHARES 96,378,216.510
PERCENT VOTED 55.471%
C39
SHAREHOLDER RESPONSE SUMMARY REPORT Page 1
IDS FUNDS
IDS UTILITIES FUND, INC. CLASS B
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
4. Approve a new shareholder service and distribution plan
Affirmative 18,999,782.017 46.017% 90.523%
Against 1,536,344.845 3.720% 7.320%
Abstain 452,797.708 1.097% 2.157%
TOTAL 20,988,924.570 50.834% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT Page 2
IDS FUNDS
IDS UTILITIES FUND, INC. CLASS B
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
** FUND TOTALS: SHARES
RECORD TOTAL 41,289,039.980
VOTED SHARES 20,988,924.570
PERCENT VOTED 50.834%
C39
SHAREHOLDER RESPONSE SUMMARY REPORT Page 1
IDS FUNDS
IDS UTILITIES FUND, INC. CLASSES A & B
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
4. Approve a new shareholder service and distribution plan
Affirmative 83,657,464.071 48.164% 89.455%
Against 7,282,871.299 4.193% 7.788%
Abstain 2,578,372.745 1.484% 2.757%
TOTAL 93,518,708.115 53.841% 100.000%
Not Voting 2,855,108.000
SHAREHOLDER RESPONSE SUMMARY REPORT Page 2
IDS FUNDS
IDS UTILITIES FUND, INC. CLASSES A & B
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
** FUND TOTALS: SHARES
RECORD TOTAL 173,692,841.117
VOTED SHARES 96,373,816.115
PERCENT VOTED 55.485%
C39
</TABLE>
Independent Auditors
on Internal Accounting Control
The Board of Directors and Shareholders
AXP Utilities Income Fund Inc.:
In planning and performing our audits of the financial statements of
AXP Utilities Income Fund, Inc. for the year ended June 30, 1999,
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 AXP 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 AXP Utilities Income
Fund, Inc., and the Securities and Exchange Commission
and is not intended to be and should not be used by anyone
other than these specified parties.
KPMG LLP
Minneapolis, Minnesota
August 6, 1999
