SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, DC 20549

                            __________________


                                 FORM 8-K

                              CURRENT REPORT
                  PURSUANT TO SECTION 13 OR 15(d) OF THE
                      SECURITIES EXCHANGE ACT OF 1934
                                     

Date of report (Date of earliest event reported)  September 8, 1997


                      Connecticut Energy Corporation
           (Exact Name of Registrant as Specified in Charter)


           Connecticut                1-8369           06-0869582
    (State or Other Jurisdiction    (Commission        (IRS Employer
         of Incorporation)           File Number)    Identification No.)

                        
855 Main Street, Bridgeport, Connecticut                 06604
(Address of Principal Executive Offices)               (Zip Code)   


Registrant's telephone number, including area code  (800) 760-7776


_____________________________________________________________________________
         (Former Name or Former Address, if Changed Since Last Report)


Item 5.  Other Events
         ____________


    As previously reported, The Southern Connecticut Gas Company ("Southern"), 
a wholly owned subsidiary of Connecticut Energy Corporation (the "Company"), 
has identified coal tar residue at three sites in Connecticut resulting from 
coal gasification operations conducted at those sites by Southern's 
predecessors from the late 1800s through the first part of this century.  Many 
gas distribution companies throughout the country carried on such gas 
manufacturing operations during the same period.  The coal tar residue is not 
designated a hazardous material by any federal or Connecticut agency, but 
some of its constituents are classified as hazardous.

    On April 27, 1992, Southern notified the Connecticut Department of 
Environmental Protection ("DEP") and the United States Environmental 
Protection Agency of the presence of coal tar residue at the sites.  On 
November 9, 1994, the DEP informed Southern that it had performed a 
preliminary review of the information provided to it by Southern and had 
determined that, based on current priorities and limited staff resources, a 
comprehensive review of the site conditions and subsequent participation by 
the DEP "are not possible at this time."  

    On September 8, 1997, Southern received a letter from the DEP informing it 
that the three sites had been entered on the Connecticut Inventory of 
Hazardous Waste Sites.  The letter states that the site located on Pine 
Street in Bridgeport, Connecticut may be of particular interest to the State 
of Connecticut because of its proximity to the Connecticut Department of 
Transportation expansion project of the U.S. Highway Route #95 Corridor.  
Placement of the sites on the Inventory of Hazardous Waste Sites means that 
the DEP may pursue remedial action pursuant to the Connecticut General 
Statutes.  

    Each site is located in an area that permits Southern to voluntarily 
perform any remedial action.  Connecticut law also allows Southern to retain a
Licensed Environmental Professional to conduct further environmental 
assessments and, if necessary, to develop remedial action plans in accordance
with Connecticut Remediation Standard Regulations.  Southern intends to confer 
with officials of the DEP and the Department of Transportation to establish 
priorities in connection with the environmental assessments. 

    Management cannot at this time predict the costs of any future site 
analysis and remediation, if any, nor can it estimate when any such costs, if 
any, would be incurred.  While such future analytical and cleanup costs could 
possibly be significant, management believes, based upon the provisions of 
the Partial Settlement in Southern's most recent rate order and regulatory
precedent with other local gas distribution companies in Connecticut, that
Southern will be able to recover these costs through its customer rates.  
Although the method, timing and extent of any recovery remain uncertain, 
management currently does not expect that the incurrence of such costs will 
materially adversely impact the Company's financial condition or results of 
operations.


                                SIGNATURES


    Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                         CONNECTICUT ENERGY CORPORATION
                                                  (Registrant)



Date:  September 10, 1997                By:  /s/Vincent L. Ammann, Jr.        
       __________________                     __________________________
                                                Vincent L. Ammann, Jr.
                                                  Vice President and 
                                               Chief Accounting Officer