<PAGE>
Dreyfus
Edison Electric
Index Fund, Inc.
Annual Report
October 31, 1995
<PAGE>
Dreyfus Edison Electric Index Fund, Inc.
- -----------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
You will be pleased to know that the total return for Dreyfus
Edison Electric Index Fund, Inc. rose sharply in the past fiscal year.
For the twelve months ended October 31, 1995, total return for your
Index Fund was 25.34%.* This compares with a return of 26.41% for the
Standard and Poor's 500 Composite Stock Price Index during the same period.**
The index of stocks of member companies of The Edison Electric Institute
(the "EEI Index") on which the Fund is based, showed a total return for the
fiscal period of 27.20%. The difference between that and the Fund's return
is accounted for mainly by the costs of operating the Fund.
Economic Environment
The much-desired soft landing for the U.S. economy that the Federal
Reserve Board has been striving to attain appears to have occurred. This is
the result of more than a year of moves by the Fed to tighten interest rates,
followed by a token loosening of the reins last summer.
Now that the economy is no longer overactive, the central bank must
concern itself with the possibility that the economy might slow down more
than would be desirable. However, the latest economic statistics do not
contain convincing evidence of that happening. The housing industry is doing
well. Industrial orders continue to expand and gross domestic product keeps
on growing, albeit at a reduced rate.
In the meantime, the rate of inflation appears to be under firm
control. Consumer prices have advanced only at a very moderate pace, and
average wages have barely inched ahead. Unemployment is not getting out of
hand, and hovers near the so-called full employment level.
Retail spending has settled down, in part because consumers are
carrying large debit balances in mortgage and credit card debts. To what
extent this will affect holiday shopping remains to be seen. The industrial
sector of the economy, however, appears to be forging ahead.
Market Environment
As your Fund reached the end of its fiscal year, October 31, 1995,
stocks were not far below the record levels they had reached earlier in the
fall.
Among the factors accounting for this market strength were good
corporate profits and low interest rates. Third quarter profit reports from
leading corporations, while not universally favorable, were better than
earlier quarters. The extensive lean and mean corporate reorganizations of
the past few years appear to be paying off. Even though the pricing
environment for most corporate products is extremely competitive,
manufacturers and service providers appear able to squeeze out improved
profits.
How long that continuing improvement will last is an open question.
Many economists think that profit levels may flatten out over the coming
months. The recent record on that score, however, has been encouraging.
Interest rates also have buoyed stock prices and sustained the bond
market. As the cost of borrowing has steadily decreased, many corporations
have benefitted. This advantage has been particularly notable with public
utilities.
Another factor in market strength has been the relentless advance
of technology, which has virtually forced corporations -- and now individual
households as well -- to reequip in order to keep up with technical progress.
The obvious result has been seen in record prices commanded during the year
by
<PAGE>
high technology stocks. While some disillusionment may set in, the
market clearly takes a very optimistic view of the long-range outlook for
these companies.
In addition, all equities have been favorably affected by the very
large inflow of investment money, on a regular basis, from 401(k) and other
retirement plans. To be sure, money managers could at some point turn off
the spigot, and divert this cash flow into bonds or money market instruments.
During the past year, however, equity purchases by pension funds and other
retirement investors have provided a supportive background for stock prices.
Of course, there are some concerns. Perhaps the biggest has been
the struggle between Congress and the White House over how to reduce
Government spending and cut the burden of the Government's perennial deficit.
Hopefully, this impasse will be settled soon. In the meantime, the
uncertainties in Washington have been a source of worry to investors.
The fading value of the U.S. dollar has also been a question mark.
Yet, after hitting a low last spring, the dollar has gradually recovered some
lost ground. This dollar rebound reflects weakness in the economies of
Western Europe and Japan, but also the strengthening of economic activity
here at home.
Portfolio Overview
Interest rates that moved downward through most of the year were a
basic factor favorably influencing the prices of investor-owned utility
stocks. Perhaps even more important, however, were strategic trends in the
industry that make many of the public utility companies attractive.
The most important of these trends was a move toward consolidation
of utility companies. A number of significant mergers and acquisitions were
announced during the 12 months under review, and more are expected for the
future. These consolidating moves have several advantages for utility
companies. They are aimed at increasing market share, at reducing unit costs
and accelerating depreciation charges, which can put them in a better
competitive position.
A parallel trend, just beginning to emerge, is the splitting up of
utility companies into separate parts, each one specializing in one aspect of
the utility industry: generating power, transmitting it over major lines and
then distributing it to individual retail and business customers. The idea
behind this strategy, which is known as disaggregation, is that the profit
potential might be greater if the utility splits itself up. Indeed, the
stock of AT&T benefitted from a similar move, so the reasoning is that
electric utilities might also add value that way.
Looking down the road, students of the utility industry see the
possibility that consumers might eventually have a choice among electric
power suppliers, just as telephone customers now have a choice of long
distance companies and may soon have a choice among local telephone service
providers.
Thus what has been until now a localized monopoly business is now
gearing itself for competition.
Sincerely,
The Dreyfus Corporation
Administrator
November 16, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. The Standard & Poor's 500
Composite Stock Price Index is a widely accepted unmanaged index of stock
market performance.
<PAGE>
Dreyfus Edison Electric Index Fund, Inc. October 31, 1995
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS EDISON
ELECTRIC INDEX FUND, INC. AND THE STANDARD & POOR'S 500
COMPOSITE STOCK PRICE INDEX
<TABLE>
<CAPTION>
Dreyfus Edison Electric Index Fund Standard & Poor's 500 Composite Stock Price Index *
<S> <C> <C>
12/6/91 10,000 10,000
10/31/92 10,911 11,455
10/31/93 12,843 13,163
10/31/94 10,607 13,671
10/31/95 13,295 17,281
<FN>
*Source: Lipper Analytical Services, Inc.
</TABLE>
Average Annual Total Returns
- ---------------------------------------------------------------------------
One Year Ended From Inception (12/6/91)
October 31, 1995 to October 31, 1995
---------------- ------------------------
25.34% 7.55%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Edison Electric
Index Fund, Inc. on 12/6/91 (Inception Date) to a $10,000 investment made in
the Standard & Poor's 500 Composite Stock Price Index on that date. For
comparative purposes, the value of the Index on 11/30/91 is used as the
beginning value on 12/6/91. All dividends and capital gain distributions are
reinvested.
The Fund's performance shown in the line graph takes into account all
applicable fees and expenses. The Standard & Poor's 500 Composite Stock
Price Index is a widely accepted, unmanaged index of overall stock market
performance, which does not take into account charges, fees and other
expenses. Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Condensed Financial
Information section of the Prospectus and elsewhere in this report.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Edison Electric Index Fund, Inc.
- ----------------------------------------------------------------------------
Statement of Investments October 31, 1995
<S> <C> <C>
Shares Common Stocks--96.5% Value
------ -----------
35,950 Allegheny Power System............ $ 948,181
56,950 American Electric Power........... 2,171,219
16,100 Atlantic Energy................... 311,938
45,100 Baltimore Gas & Electric.......... 1,206,425
6,500 Bangor Hydro Electric............. 76,375
4,150 Black Hills....................... 104,269
13,575 Boston Edison..................... 371,616
3,825 CILCORP........................... 149,175
10,300 CIPSCO............................ 377,238
25,950 CMS Energy........................ 716,869
47,600 Carolina Power & Light............ 1,558,900
44,225 Centerior Energy.................. 442,250
58,650 Central & South West.............. 1,568,888
4,975 Central Hudson Gas &
Electric........................ 152,359
6,650 Central Louisiana Electric........ 178,719
9,375 Central Maine Power............... 130,078
5,800 Central Vermont Public Service.... 78,300
47,698 CiNergy........................... 1,353,431
2,975 Commonwealth Energy Systems....... 126,066
71,950 Consolidated Edison............... 2,185,481
32,500 DPL............................... 771,875
24,225 DQE............................... 666,188
17,725 Delmarva Power & Light............ 389,950
44,950 Detroit Edison.................... 1,517,063
53,125 Dominion Resources................ 2,111,719
62,750 Duke Power........................ 2,808,063
3,576 ESELCO............................ 86,271
5,800 Eastern Utilities Association..... 136,300
46,924(a) El Paso Electric.................. 17,362
4,500 Empire District Electric.......... 82,688
69,716 Entergy........................... 1,986,906
56,675 FPL Group......................... 2,373,266
28,412 Florida Progress.................. 941,148
35,575 General Public Utilities.......... 1,111,719
2,875 Green Mountain Power.............. 78,344
8,800 Hawaiian Electric Industries...... 343,200
40,150 Houston Industries................ 1,861,956
8,450 IES Industries.................... 224,981
11,375 IPALCO Enterprises................ 419,453
11,150 Idaho Power....................... 309,413
23,050 Illinova.......................... 654,044
2,950 Interstate Power.................. $ 85,550
11,400 KU Energy......................... 337,725
18,800 Kansas City Power & Light......... 467,650
9,950 LG&E Energy....................... 412,925
35,625 Long Island Lighting.............. 605,625
8,525 MDU Resources Group............... 180,091
3,075 Madison Gas & Electric............ 101,475
3,275 Maine Public Service.............. 76,144
30,444 MidAmerican Energy................ 487,104
9,400 Minnesota Power & Light........... 269,075
15,875 Montana Power..................... 361,156
20,075 NIPSCO Industries................. 732,738
13,575 Nevada Power...................... 296,953
19,825 New England Electric System....... 773,175
21,350 New York State Electric & Gas..... 539,088
43,725 Niagara Mohawk Power.............. 470,044
37,950 Northeast Utilities............... 939,263
20,700 Northern States Power............. 978,075
3,050 Northwestern Public Service....... 80,825
46,625 Ohio Edison....................... 1,066,547
12,275 Oklahoma Gas & Electric........... 491,000
4,025 Orange/Rockland Utilities......... 141,378
3,225 Otter Tail Power.................. 110,456
67,925 PECO Energy....................... 1,986,806
46,425 Pennsylvania Power &
Light........................... 1,044,563
130,125 Pacific Gas & Electric............ 3,822,422
86,975 PacifiCorp........................ 1,641,653
26,575 Pinnacle West Capital............. 730,813
15,025 Portland General.................. 407,553
35,775 Potomac Electric Power............ 894,375
18,250(a) Public Service Co. of Colorado.... 622,781
12,400 Public Service Co. of
New Mexico...................... 207,700
74,975 Public Service Enterprise
Group........................... 2,202,391
19,125 Puget Sound Power &
Light........................... 435,094
11,050 Rochester Gas & Electric.......... 259,675
28,400 SCANA............................. 720,650
136,600 SCEcorp........................... 2,322,200
2,425 St. Joseph Light & Power.......... 76,388
<PAGE>
Dreyfus Edison Electric Index Fund, Inc.
- ----------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1995
Shares Common Stocks (continued) Value
------ -----------
35,525 San Diego Gas & Electric.......... $ 825,956
8,575 Sierra Pacific Resources.......... 200,441
204,150 Southern.......................... 4,874,081
4,683 Southern Indiana Gas &
Electric........................ 158,051
12,350 Southwestern Public Service....... 406,006
35,250 TECO Energy....................... 832,781
4,325 TNP Enterprises................... 78,391
69,175 Texas Utilities................... 2,542,181
47,050 Tucson Electric Power............. 141,150
9,550 UGI............................... 200,550
3,788 UNITIL............................ 73,392
65,750 Unicom............................ 2,153,312
31,175 Union Electric.................... 1,215,824
4,175 United Illuminating............... 158,649
4,050 Upper Peninsula Power............. 78,468
13,375 UtiliCorp United.................. 386,202
9,125 WPL Holdings...................... $ 278,312
7,175 WPS Resources..................... 223,321
16,650 Washington Water Power............ 287,212
18,699 Western Resources................. 628,753
32,512 Wisconsin Energy.................. 959,103
-----------
TOTAL COMMON STOCKS
(cost $74,119,229).............. $77,180,948
===========
Principal
Amount SHORT-TERM INVESTMENTS--3.2%
--------
U.S.Treasury Bill:
$2,619,000 5 1/4%, 1/18/96
(cost $2,585,729)............... $ 2,585,729
===========
TOTAL INVESTMENTS
(cost $76,704,958)....................... 99.7% $79,766,677
====== ===========
CASH AND RECEIVABLES (NET)................. .3% $ 226,068
====== ===========
NET ASSETS................................. 100.0% $79,992,745
====== ===========
Note to Statement of Investments;
(a) Non-income producing.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Edison Electric Index Fund, Inc.
- --------------------------------------------------------------------------
Statement of Assets and Liabilities October 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $76,704,958)--see statement..................................... $79,766,677
Cash.................................................................... 879
Dividends receivable.................................................... 261,768
Receivable for subscriptions to Common Stock............................ 57,286
Prepaid expenses........................................................ 55,455
------------
80,142,065
LIABILITIES:
Due to Wells Fargo Nikko Investment Advisors............................ $26,973
Due to Wells Fargo Institutional Trust Company, N.A. ................... 16,041
Due to The Dreyfus Corporation.......................................... 9,941
Accrued expenses........................................................ 96,365 149,320
------- ------------
NET ASSETS.................................................................. $79,992,745
------------
------------
REPRESENTED BY:
Paid-in capital......................................................... $86,467,660
Accumulated undistributed investment income-net......................... 139,863
Accumulated net realized (loss) on investments.......................... (9,676,497)
Accumulated net unrealized appreciation on investments--Note 3.......... 3,061,719
------------
NET ASSETS at value applicable to 6,024,970 shares outstanding
(200 million shares of $.001 par value Common Stock authorized)......... $79,992,745
============
NET ASSET VALUE, offering and redemption price per share
($79,992,745 / 6,024,970)............................................... $13.28
=======
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Edison Electric Index Fund, Inc.
- ---------------------------------------------------------------------------
Statement of Operations year ended October 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Income:
Cash dividends........................................................ $ 5,105,863
Interest.............................................................. 102,499
------------
Total Income...................................................... $ 5,208,362
Expenses:
Index management fee--Note 2(a)....................................... 77,508
Administration fee--Note 2(a)......................................... 116,173
Shareholder servicing costs--Note 2(b)................................ 230,555
Custodian fees........................................................ 87,725
Professional fees..................................................... 45,090
Registration fees..................................................... 23,880
Directors' fees and expenses--Note 2(c)............................... 22,149
Prospectus and shareholders' reports.................................. 7,176
Organization expenses................................................. 4,759
Miscellaneous......................................................... 1,178
--------------
Total Expenses.................................................... 616,193
------------
INVESTMENT INCOME-NET............................................. 4,592,169
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments--Note 3.............................. $(8,325,383)
Net unrealized appreciation on investments.............................. 19,716,286
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 11,390,903
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $15,983,072
============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Edison Electric Index Fund, Inc.
- ---------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year ended October 31,
--------------------------------------
1994 1995
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 5,021,825 $ 4,592,169
Net realized (loss) on investments................................ (1,108,323) (8,325,383)
Net unrealized appreciation (depreciation) on investments for the year (23,241,389) 19,716,286
-------------- -------------
Net Increase (Decrease) In Net Assets Resulting From Operations. (19,327,887) 15,983,072
-------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................. (4,973,199) (4,763,996)
Net realized gain on investments.................................. (1,583,630) --
-------------- -------------
Total Dividends................................................. (6,556,829) (4,763,996)
-------------- -------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold..................................... 21,670,447 79,514,068
Dividends reinvested.............................................. 6,267,926 4,392,768
Cost of shares redeemed........................................... (48,302,007) (86,720,047)
-------------- -------------
(Decrease) In Net Assets From Capital Stock Transactions........ (20,363,634) (2,813,211)
-------------- -------------
Total Increase (Decrease) In Net Assets....................... (46,248,350) 8,405,865
NET ASSETS:
Beginning of year................................................. 117,835,230 71,586,880
-------------- -------------
End of year (including undistributed investment income-net:
$311,690 in 1994 and $139,863 in 1995).......................... $ 71,586,880 $ 79,992,745
============== =============
Shares Shares
-------------- -------------
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 1,734,060 6,573,543
Shares issued for dividends reinvested............................ 509,209 367,523
Shares redeemed................................................... (3,914,083) (7,266,122)
-------------- -------------
Net (Decrease) In Shares Outstanding............................ (1,670,814) (325,054)
============== =============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Edison Electric Index Fund, Inc.
- ------------------------------------------------------------------------------
Financial Highlights
Contained below is per share operating performance data for a share
of Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Year Ended October 31,
---------------------------------------------------
PER SHARE DATA: 1992(1) 1993 1994 1995
------ ------ ------ ------
<S> <C> <C> <C> <C>
Net asset value, beginning of year.............. $12.50 $13.05 $14.69 $11.27
------ ------ ------ ------
Investment Operations:
Investment income--net.......................... .60 .62 .72 .72
Net realized and unrealized gain (loss) on investments .51 1.66 (3.23) 2.04
------ ------ ------ ------
Total from Investment Operations.............. 1.11 2.28 (2.51) 2.76
------ ------ ------ ------
Distributions:
Dividends from investment income--net........... (.56) (.63) (.70) (.75)
Dividends from net realized gain on investments. - (.01) (.21) -
------ ------ ------ ------
Total Distributions........................... (.56) (.64) (.91) (.75)
------ ------ ------ ------
Net asset value, end of year.................... $13.05 $14.69 $11.27 $13.28
====== ====== ====== -======
TOTAL INVESTMENT RETURN............................. 9.11%(2) 17.71% (17.41%) 25.34%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets......... .24%(2) .75% .74% .80%
Ratio of net investment income to average net assets 5.31%(2) 4.80% 5.66% 5.92%
Decrease reflected in above expense ratios due to
undertakings by WFNIA and Dreyfus............. .95%(2) .09% - -
Portfolio Turnover Rate......................... 2.76%(2) 14.14% 8.92% 59.75%
Net Assets, end of year (000's Omitted)......... $36,861 $117,835 $71,587 $79,993
<FN>
- ------------------
(1) From December 6, 1991 (commencement of operations) to October 31, 1992.
(2) Not annualized.
</TABLE>
See notes to financial statments.
<PAGE>
Dreyfus Edison Electric Index Fund, Inc.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1-Significant Accounting Policies:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Wells Fargo
Nikko Investment Advisors ("WFNIA") serves as the Fund's index manager. Wells
Fargo Investment Advisors ("WFIA") and a subsidiary of The Nikko Securities
Co., Ltd. ("Nikko") each own 50% of WFNIA. Wells Fargo Institutional Trust
Company, N.A. ("WFITC"), an affiliate of WFNIA, is the custodian of the
Fund's investments. The Dreyfus Corporation ("Dreyfus") serves as the Fund's
administrator. Dreyfus is a direct subsidiary of Mellon Bank, N.A. Premier
Mutual Fund Services, Inc. (the "Distributor") acts as the distributor of the
Fund's shares, which are sold to the public without a sales charge. The
Distributor, located at One Exchange Place, Boston, Massachusetts 02109, is a
wholly-owned subsidiary of FDI Distribution Services, Inc., a provider of
mutual fund administration services, which in turn is a wholly-owned
subsidiary of FDI Holdings, Inc., the parent company of which is Boston
Institutional Group, Inc.
Effective November 13, 1995, Dreyfus will serve as the Fund's manager and
Mellon Equity Associates, an affiliate of Dreyfus ("Mellon Equity"), will
serve as the Fund's index manager. In addition, Boston Safe Deposit and Trust
Company, an affiliate of Dreyfus, will serve as the Fund's custodian.
(a) Portfolio valuation: Investments in securities (including financial
futures) are valued at the last sales price on the securities exchange on
which such securities are primarily traded or at the last sales price on the
national securities market. Securities not listed on an exchange or the
national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available. Short-term
investments are carried at amortized cost, which approximates value.
(b) Securities transactions and investment income: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(c) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid on a
quarterly basis. Dividends from net realized capital gain, if any, are
normally declared and paid annually, but the Fund may make distributions on a
more frequent basis to comply with the distribution requirements of the
Internal Revenue Code. To the extent that net realized capital gain, if any,
can be offset by capital loss carryovers, it is the policy of the Fund not to
distribute such gain.
(d) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $4,075,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1995. If not
applied, $512,000 of the carryover expires in fiscal 2002 and $3,563,000 of
the carryover expires in fiscal 2003.
<PAGE>
Dreyfus Edison Electric Index Fund, Inc.
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 2-Management Fee, Administration Fee and Other Transactions with
Affiliates:
(a) Fees paid by the Fund pursuant to the provisions of an Index
Management Agreement with WFNIA and an Administration Agreement with Dreyfus
are payable monthly. WFNIA and Dreyfus receive annual fees of .10 of 1% and
.15 of 1%, respectively, of the average daily value of the Fund's net assets.
The agreements further provide that if the aggregate expenses of the Fund,
exclusive of interest, taxes, brokerage and extraordinary expenses, exceed
the expense limitation of any state having jurisdiction over the Fund, the
Fund may deduct from the fees to be paid to each of WFNIA and Dreyfus, or
WFNIA and Dreyfus will bear, in the same proportion as in the agreements, the
amount of such excess to the extent required by state law. The most stringent
state expense limitation applicable to the Fund presently requires
reimbursement of expenses in any full fiscal year that such expenses
(exclusive of certain expenses as described above) exceed 2-1/2% of the first
$30 million, 2% of the next $70 million and 1-1/2% of the excess over $100
million of the average value of the Fund's net assets in accordance with
California "blue sky" regulations. There was no expense reimbursement for the
year ended October 31, 1995.
In addition, WFITC earned $87,725 for custodian services provided to the
Fund.
(b) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of Dreyfus, an amount
not to exceed an annual rate of .25 of 1% of the value of the Fund's average
daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the year ended October 31, 1995, the Fund was charged an aggregate of
$193,681 pursuant to the Shareholder Services Plan.
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
other than short-term securities, for the year ended October 31, 1995
amounted to $45,451,679 and $50,092,732, respectively.
At October 31, 1995, accumulated net unrealized appreciation on
investments was $3,061,719,consisting of $4,154,156 gross unrealized
appreciation and $1,092,437 gross unrealized depreciation.
At October 31, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
<PAGE>
Dreyfus Edison Electric Index Fund, Inc.
- ------------------------------------------------------------------------------
Report of Independent Accountants
To the Shareholders and Board of Directors of
Dreyfus Edison Electric Index Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of
Dreyfus Edison Electric Index Fund, Inc. (the Fund), including the statement
of investments, as of October 31, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and the financial
highlights for each of the three years in the period then ended and for the
period from December 6, 1991 (commencement of operations) to October 31,
1992. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Edison Electric Index Fund, Inc., at October 31, 1995,
the results of its operations, the changes in its net assets and the
financial highlights for the periods referred to above, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
December 18, 1995
<PAGE>
[Dreyfus lion "d" LOGO]
Dreyfus Edison Electric
Index Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Boston Safe Deposit and Trust Company
One Boston Place
Boston, MA 02108
Transfer Agent &
Dividend Disbursing Agent
First Data Investor Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 114AR9510
[Dreyfus logo]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS EDISON ELECTRIC INDEX FUND, INC. AND THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
_______________________________________________
| | | STANDARD |
| | DREYFUS | & POOR'S 500 |
| PERIOD | EDISON ELECTRIC |COMPOSITE STOCK |
| | INDEX FUND | PRICE INDEX * |
|-----------|-----------------|----------------|
| 12/6/91 | 10,000 | 10,000 |
| 10/31/92 | 10,911 | 11,455 |
| 10/31/93 | 12,843 | 13,163 |
| 10/31/94 | 10,607 | 13,671 |
| 10/31/95 | 13,295 | 17,281 |
|-----------|-----------------|----------------|
* Source: Lipper Analytical Services, Inc.
