The energetics of hurricane Hilda (1964) are studied through the theory of available potential energy applied to a limited fixed region surrounding the storm. The generation of available potential energy is shown t o be closely dependent on differential heating within the baroclinic structure of the hurricane, occurring primarily in the middle and upper troposphcre of the core of the storm. The diabatic heating components (condensation, emission of long wave radiation, dircct absorption of solar radiation, and sensible hcating) are modeled and the contribution t o thc total gcncrsltion from each component eomputcd. The results from the latent heating model based on KUO’S work portray the dependence of the deep cumulus convection on thc sea surface temperature. The best estimate of the total generation of available potential energy within the hurricane scale is 10.3 X 10l2 watts, of which 77 percent is generated by latent heating, 17 percent by infrared cooling, and 6 percent by direct solar absorption. The total generation compares favorably with estimates of kinetic energy production in mature hurricanes. Energy considerations in the steady state condition of the hurricane system are discussed within the framework of the available 130tentisl energy theory.