FORM 8-K



                  SECURITIES AND EXCHANGE COMMISSION

                        Washington, D.C.  20549



                            CURRENT REPORT



                Pursuant to Section 13 or 15(d) of the
                    Securities Exchange Act of 1934

                    Date of Report:  January, 1999


                      MAINE PUBLIC SERVICE COMPANY            
        (Exact name of registrant as specified in its charter)



            Maine                   1-3429          01-0113635      
(State, or other jurisdiction    (Commission       (IRS Employer
      of incorporation)          File Number)    Identification No.)


209 State Street, Presque Isle, Maine                 04769  
(Address of principal executive offices)            (Zip Code)


Registrant's Telephone Number, Including Area Code   207-768-5811









Current Report, Form 8-K for                            Date of Report
Maine Public Service Company                            January, 1999

Item 5(a) Other Material Events - Maine Yankee Rate Case Settlement
          Filed with the Federal Energy Regulatory Commission

          Reference is made to the Company's Form 10-K for December 31,
          1997 and Form 10-Q for the quarter ended September 30, 1998,
          where the closing of Maine Yankee and the various rate
          proceedings associated with the closing and decommissioning of
          Maine Yankee were discussed.  As previously reported, the
          Maine Public Utilities Commission (MPUC) stayed its
          investigation of the prudency of the shutdown decision and the
          operation of Maine Yankee prior to the shutdown decision,
          pending the outcome of Maine Yankee's rate case before the
          Federal Energy Regulatory Commission (FERC).  The MPUC and the
          Maine Office of the Public Advocate (OPA) are actively
          participating in the FERC proceeding, as well as 28 municipal
          and cooperative utilities in New England who received
          approximately 6.2% of the output from Maine Yankee (the
          "Secondary Purchasers").

          In support of its request for an increase in decommissioning
          collections, Maine Yankee submitted with its initial FERC rate
          case filing a 1997 decommissioning cost study performed by TLG
          Services, Inc. ("TLG").  During 1998, Maine Yankee engaged in
          an extensive competitive bid process to hire a Decommissioning
          Operations Contractor ("DOC") to perform certain major
          decontamination and dismantlement activities at the Plant on
          a fixed-price, turnkey basis.  As a result of that process, a
          consortium headed by Stone & Webster Engineering Corporation
          ("Stone & Webster") was selected to perform such activities
          under a fixed-price contract.  The contract provides for,
          among other undertakings, construction of an independent spent
          fuel storage installation ("ISFSI") and completion of major
          decommissioning activities and site restoration by the end of
          2004.  The DOC process resulted in fixing certain costs that
          had been estimated in the earlier decommissioning cost
          estimate performed by TLG.

          Since the filing of the FERC rate request, Maine Yankee and
          the active intervenors, including among others the MPUC Staff,
          the OPA, the Company and other owners, the Secondary
          Purchasers, and a Maine environmental group (the "Settling
          Parties"), engaged in extensive discovery.  More recently,
          those parties participated in settlement discussions that
          resulted in an Offer of Settlement filed by those parties with
          the FERC on January 19, 1999, which, if approved by the FERC,
          would result in full settlement of all issues raised in the
          consolidated FERC proceeding, including decommissioning-cost
          issues and issues pertaining to the prudence of the
          management, operation, and decision to permanently cease

                                   -2-

Current Report, Form 8-K for                            Date of Report
Maine Public Service Company                            January, 1999

Item 5(a) Other Material Events - Maine Yankee Rate Case Settlement
          Filed with the Federal Energy Regulatory Commission - Continued

          operation of the Plant.  Approval of the settlement would also
          resolve the issues raised by the Secondary Purchasers by
          limiting the amounts they will pay for decommissioning the
          Plant and by settling other points of contention affecting
          individual Secondary Purchasers.

          The Offer of Settlement provides for Maine Yankee to collect
          $33.6 million in the aggregate annually, effective January 15,
          1998: (1) $26.8 million for estimated decommissioning costs,
          and (2) $6.8 million for ISFSI-related costs.  The original
          filing with FERC on November 6, 1997, called for an aggregate
          annual collection rate of $36.4 million for decommissioning
          and the ISFSI, based on the TLG estimate.  The amount
          collected annually could be reduced to approximately $26
          million if Maine Yankee is able to (1) use in connection with
          the construction of the ISFSI funds held in trust under Maine
          law for spent-fuel disposal, and (2) access approximately $6.8
          millon being held by the State of Maine for eventual payment
          to the State of Texas pursuant to a compact for low-level
          nuclear waste disposal, the future of which is now in question
          after rejection of the selected disposal site in west Texas by
          a Texas regulatory agency.  Both would require authorizing
          legislation in Maine, which Maine Yankee intends to pursue.

          The Offer of Settlement also provides for recovery of all
          unamortized investment (including fuel) in the Plant, together
          with a return on equity of 6.50 percent, effective January 15,
          1998, on equity balances up to maximum allowed equity amounts. 
          The Settling Parties also agreed in the proposed settlement
          not to contest the effectiveness of the Amendatory Agreements
          submitted to FERC as part of the original filing, subject to
          certain limitations including the right to challenge any
          accelerated recovery of unamortized investment under the terms
          of the Amendatory Agreements after a required informational
          filing with the FERC by Maine Yankee.

          As a separate part of the Offer of Settlement, the Company,
          Central Maine Power Company, and Bangor Hydro-Electric Company
          (the other two Maine owners of Maine Yankee), the MPUC Staff,
          and the OPA entered into a further agreement resolving retail
          rate issues and other issues specific to the Maine parties,
          including those that had been raised concerning the prudence
          of the operation and shutdown of the Plant (the "Maine
          Agreement").  Under the Maine Agreement, the Company would
          continue to recover its Maine Yankee costs in accordance with 


                                   -3-

Current Report, Form 8-K for                            Date of Report
Maine Public Service Company                            January, 1999

Item 5(a) Other Material Events - Maine Yankee Rate Case Settlement
          Filed with the Federal Energy Regulatory Commission - Continued

          its most recent Rate Stabilization Plan ("RSP") order from the
          MPUC without any adjustment reflecting the outcome of the FERC
          proceeding.  To the extent that the Company has collected from
          its retail customers a return on equity in excess of the 6.50
          percent contemplated by the Offer of Settlement, no refunds
          would be required, but such excess amounts would be credited
          to the customers to the extent required by the RSP.

          The final major provision of the Maine Agreement requires the
          Maine owners, for the period from March 1, 2000 through
          December 1, 2004, to hold their Maine retail ratepayers
          harmless from the amounts by which the replacement power costs
          for Maine Yankee exceed the replacement power costs assumed in
          the report to the Maine Yankee Board of Directors that served
          as a basis for the Plant shutdown decision, up to a maximum
          cumulative amount of $41 million.  The Company's share of that
          maximum amount would be $4.1 million for the period.  The
          Maine Agreement, which was approved by the MPUC on December
          22, 1998, also sets forth the methodology for calculating such
          replacement power costs.

          The Company believes the Offer of Settlement, including the
          Maine Agreement, reasonably resolves the issues presented by
          the parties in the Maine Yankee FERC proceeding.  If the Offer
          of Settlement is approved by the FERC, several significant
          uncertainties regarding the recovery of Maine Yankee-related
          costs are eliminated.  Although all of the active parties to
          the proceeding have agreed to support or, with respect to
          certain individual provisions, not oppose, the Offer of
          Settlement, the Company cannot predict with certainty whether
          or in what form the Offer of Settlement will be approved by
          the FERC.

                                   MAINE PUBLIC SERVICE COMPANY
                                             Registrant



Dated:  January 27, 1999            /s/  Larry E. LaPlante             
                                   Larry E. LaPlante, Vice President,
                                   Finance, Administration & Treasurer






                                   -4-
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FORM 8-K

                  SECURITIES AND EXCHANGE COMMISSION

                        Washington, D.C.  20549

                            CURRENT REPORT

                Pursuant to Section 13 or 15(d) of the
                    Securities Exchange Act of 1934

                    Date of Report:  January, 1999

                      MAINE PUBLIC SERVICE COMPANY            
        (Exact name of registrant as specified in its charter)

            Maine                   1-3429          01-0113635      
(State, or other jurisdiction    (Commission       (IRS Employer
      of incorporation)          File Number)    Identification No.)

209 State Street, Presque Isle, Maine                 04769  
(Address of principal executive offices)            (Zip Code)

Registrant's Telephone Number, Including Area Code   207-768-5811

Current Report, Form 8-K for                            Date of Report
Maine Public Service Company                            January, 1999

Item 5(a) Other Material Events - Maine Yankee Rate Case Settlement
          Filed with the Federal Energy Regulatory Commission

          Reference is made to the Company's Form 10-K for December 31,
          1997 and Form 10-Q for the quarter ended September 30, 1998,
          where the closing of Maine Yankee and the various rate
          proceedings associated with the closing and decommissioning of
          Maine Yankee were discussed.  As previously reported, the
          Maine Public Utilities Commission (MPUC) stayed its
          investigation of the prudency of the shutdown decision and the
          operation of Maine Yankee prior to the shutdown decision,
          pending the outcome of Maine Yankee's rate case before the
          Federal Energy Regulatory Commission (FERC).  The MPUC and the
          Maine Office of the Public Advocate (OPA) are actively
          participating in the FERC proceeding, as well as 28 municipal
          and cooperative utilities in New England who received
          approximately 6.2% of the output from Maine Yankee (the
          "Secondary Purchasers").

          In support of its request for an increase in decommissioning
          collections, Maine Yankee submitted with its initial FERC rate
          case filing a 1997 decommissioning cost study performed by TLG
          Services, Inc. ("TLG").  During 1998, Maine Yankee engaged in
          an extensive competitive bid process to hire a Decommissioning
          Operations Contractor ("DOC") to perform certain major
          decontamination and dismantlement activities at the Plant on
          a fixed-price, turnkey basis.  As a result of that process, a
          consortium headed by Stone & Webster Engineering Corporation
          ("Stone & Webster") was selected to perform such activities
          under a fixed-price contract.  The contract provides for,
          among other undertakings, construction of an independent spent
          fuel storage installation ("ISFSI") and completion of major
          decommissioning activities and site restoration by the end of
          2004.  The DOC process resulted in fixing certain costs that
          had been estimated in the earlier decommissioning cost
          estimate performed by TLG.

          Since the filing of the FERC rate request, Maine Yankee and
          the active intervenors, including among others the MPUC Staff,
          the OPA, the Company and other owners, the Secondary
          Purchasers, and a Maine environmental group (the "Settling
          Parties"), engaged in extensive discovery.  More recently,
          those parties participated in settlement discussions that
          resulted in an Offer of Settlement filed by those parties with
          the FERC on January 19, 1999, which, if approved by the FERC,
          would result in full settlement of all issues raised in the
          consolidated FERC proceeding, including decommissioning-cost
          issues and issues pertaining to the prudence of the
          management, operation, and decision to permanently cease

                                   -2-

Current Report, Form 8-K for                            Date of Report
Maine Public Service Company                            January, 1999

Item 5(a) Other Material Events - Maine Yankee Rate Case Settlement
          Filed with the Federal Energy Regulatory Commission - Continued

          operation of the Plant.  Approval of the settlement would also
          resolve the issues raised by the Secondary Purchasers by
          limiting the amounts they will pay for decommissioning the
          Plant and by settling other points of contention affecting
          individual Secondary Purchasers.

          The Offer of Settlement provides for Maine Yankee to collect
          $33.6 million in the aggregate annually, effective January 15,
          1998: (1) $26.8 million for estimated decommissioning costs,
          and (2) $6.8 million for ISFSI-related costs.  The original
          filing with FERC on November 6, 1997, called for an aggregate
          annual collection rate of $36.4 million for decommissioning
          and the ISFSI, based on the TLG estimate.  The amount
          collected annually could be reduced to approximately $26
          million if Maine Yankee is able to (1) use in connection with
          the construction of the ISFSI funds held in trust under Maine
          law for spent-fuel disposal, and (2) access approximately $6.8
          millon being held by the State of Maine for eventual payment
          to the State of Texas pursuant to a compact for low-level
          nuclear waste disposal, the future of which is now in question
          after rejection of the selected disposal site in west Texas by
          a Texas regulatory agency.  Both would require authorizing
          legislation in Maine, which Maine Yankee intends to pursue.

          The Offer of Settlement also provides for recovery of all
          unamortized investment (including fuel) in the Plant, together
          with a return on equity of 6.50 percent, effective January 15,
          1998, on equity balances up to maximum allowed equity amounts. 
          The Settling Parties also agreed in the proposed settlement
          not to contest the effectiveness of the Amendatory Agreements
          submitted to FERC as part of the original filing, subject to
          certain limitations including the right to challenge any
          accelerated recovery of unamortized investment under the terms
          of the Amendatory Agreements after a required informational
          filing with the FERC by Maine Yankee.

          As a separate part of the Offer of Settlement, the Company,
          Central Maine Power Company, and Bangor Hydro-Electric Company
          (the other two Maine owners of Maine Yankee), the MPUC Staff,
          and the OPA entered into a further agreement resolving retail
          rate issues and other issues specific to the Maine parties,
          including those that had been raised concerning the prudence
          of the operation and shutdown of the Plant (the "Maine
          Agreement").  Under the Maine Agreement, the Company would
          continue to recover its Maine Yankee costs in accordance with 

                                   -3-

Current Report, Form 8-K for                            Date of Report
Maine Public Service Company                            January, 1999

Item 5(a) Other Material Events - Maine Yankee Rate Case Settlement
          Filed with the Federal Energy Regulatory Commission - Continued

          its most recent Rate Stabilization Plan ("RSP") order from the
          MPUC without any adjustment reflecting the outcome of the FERC
          proceeding.  To the extent that the Company has collected from
          its retail customers a return on equity in excess of the 6.50
          percent contemplated by the Offer of Settlement, no refunds
          would be required, but such excess amounts would be credited
          to the customers to the extent required by the RSP.

          The final major provision of the Maine Agreement requires the
          Maine owners, for the period from March 1, 2000 through
          December 1, 2004, to hold their Maine retail ratepayers
          harmless from the amounts by which the replacement power costs
          for Maine Yankee exceed the replacement power costs assumed in
          the report to the Maine Yankee Board of Directors that served
          as a basis for the Plant shutdown decision, up to a maximum
          cumulative amount of $41 million.  The Company's share of that
          maximum amount would be $4.1 million for the period.  The
          Maine Agreement, which was approved by the MPUC on December
          22, 1998, also sets forth the methodology for calculating such
          replacement power costs.

          The Company believes the Offer of Settlement, including the
          Maine Agreement, reasonably resolves the issues presented by
          the parties in the Maine Yankee FERC proceeding.  If the Offer
          of Settlement is approved by the FERC, several significant
          uncertainties regarding the recovery of Maine Yankee-related
          costs are eliminated.  Although all of the active parties to
          the proceeding have agreed to support or, with respect to
          certain individual provisions, not oppose, the Offer of
          Settlement, the Company cannot predict with certainty whether
          or in what form the Offer of Settlement will be approved by
          the FERC.

                                   MAINE PUBLIC SERVICE COMPANY
                                             Registrant

Dated:  January 27, 1999            /s/  Larry E. LaPlante             
                                   Larry E. LaPlante, Vice President,
                                   Finance, Administration & Treasurer

                                   -4-