This matter is before the Court on the trustee's Objection to Claims of Union Light, Heat & Power Co. ("ULH & P"). ULH & P has filed its response. This Court has jurisdiction of this matter pursuant to 28 U.S.C. '1334(b); it is a core proceeding pursuant to 28 U.S.C. '157(b)(2)(B).

UHL & P filed a further proof of claim on August 5, 1987, in the amount of $1038.25 for gas and electric service provided to the debtors during the pendency of their Chapter 13 claim and prior to the conversion of their case to Chapter 7. UHL & P maintains that this post-petition, pre-conversion claim is an administrative, priority claim pursuant to 11 U.S.C. '503(b). UHL & P argues that the gas and electric services provided to the debtors were "entirely or substantially for the benefit of the Debtors' livelihood, and as such are entitled to administrative expense priority under Bankruptcy Code '503(b) as beneficial to the Debtors' estate." (See UHL & P's Response). UHL & P cites In re Watts, 85 B.R. 470 (Bkrtcy.S.D.Ohio 1988), in support of its position.

The Watts case does indeed support UHL & P's position as the court therein held that a claim by a utility may be characterized as a Chapter 13 administrative expense entitled to priority pursuant to 11 U.S.C. '507 as modified by 11 U.S.C. '726(b). In agreeing with the utility company that "the provision of utilities is essential so that debtors can live and generate the income necessary to fund the Chapter 13 plan", the court reasoned as follows: