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SIGNATURE CATHY WHITE
TITLE ASST VICE PRES
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Alliance Utility Income Fund, Inc. Exhibit 77Q1(a)
811-07916_______
Articles of Incorporation: Incorporated by reference to Exhibit 1 to
Post-Effective Amendment No. 9 to Registrant's Registration Statement on
Form N-1A, filed with the Securities and Exchange Commission on October
31, 1997.
By-Laws: Incorporated by reference to Exhibit 2 to Post-Effective
Amendment No. 9 to Registrant's Registration Statement on Form N-1A,
filed with the Securities and Exchange Commission on October 31, 1997.
Alliance Utility Income Fund, Inc. Exhibit 77Q1(e)
811-07916
Investment Advisory Agreement: Incorporated by reference to Exhibit 5 to
Post-Effective Amendment No. 9 to Registrant's Registration Statement on
Form N-1A, filed with the Securities and Exchange Commission on October
31, 1997.
Alliance Utility Income Fund, Inc.
811-07916
Item 77I Terms of new or amended securities
In 1996, the Fund issued a new class of shares, Adviser Class
shares. Adviser Class shares,along with Class A, Class B, Class C shares
each represent an interest in the same portfolio of investments of the
Fund, have the same rights and are identical in all respects, except
that (i) Class A shares bear the expense of the initial sales charge (or
contingent deferred sales charge, when applicable) and Class B and
Class C shares bear the expense of the deferred sales charge,
(ii) Class B shares and Class C shares each bear the expense of a higher
distribution services fee than that borne by Class A shares, and Advisor
Class shares do not bear such a fee, (iii) Class B and Class C shares
bear higher transfer agency costs than that borne by Class A and Advisor
Class shares; (iv) each of Class A, Class B and Class C has exclusive
voting rights with respect to provisions of the Rule 12b-1 Plan pursuant
to which its distribution services fee is paid and other matters for
which separate class voting is appropriate under applicable law,
provided that, if the Fund submits to a vote of the Class A
shareholders, an amendment to the Rule 12b-1 Plan that would materially
increase the amount to be paid thereunder with respect to the Class A
shares, then such amendment will also be submitted to the Class B and
Advisor Class shareholders and the Class A, the Class B and the Advisor
Class shareholders will vote separately by class; and (v) Class B and
Advisor Class shares are subject to a conversion feature. Each class
has different exchange privileges and certain different shareholder
service options available.
January 9, 1998
To the Shareholders and Board of Directors of
Alliance Utility Income Fund, Inc.
In planning and performing our audit of the financial statements of
Alliance Utility Income Fund, Inc. (the "Fund") for the year ended
November 30, 1997, 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 internal control.
The management of the Fund 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 control activities.
Generally, control activities 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 control activities
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 internal control would not necessarily disclose
all matters in 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 any specific 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 internal control, including control activities for
safeguarding securities, that we consider to be material weaknesses
as defined above as of November 30, 1997.
This report is intended solely for the information and use of
management and the Board of Directors of the Fund and the Securities
and Exchange Commission.
PRICE WATERHOUSE LLP
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