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<PAGE> PAGE 2
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SIGNATURE JOSEPH REZABEK
TITLE ASST VICE PRES
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Report of Independent Accountants
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, 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 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 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, error or fraud 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 one or more of the internal control components does not
reduce to a relatively low level the risk that misstatements caused by
error or fraud 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 and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above
as of November 30, 1998.
This report is intended solely for the information and use of management,
the Board of Directors of the Fund, and the Securities and Exchange
Commission. PricewaterhouseCoopers LLP New York, NY 10036 January 8, 1999
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(2)
c:\my documents\alliance funds\utility\pg-nsar.doc
