A theory for auroral hiss is developed based on the existence of a beam of energetic particles that is also believed responsible for the visual aurora. A dispersion relation for electromagnetic waves in a plasma consisting of an electron beam and a background plasma is derived. The Hermitian part of the dispersion relation is assumed to be governed by the denser cold background plasma, whereas the anti-Hermitian part is governed by the electron beam. It is shown that the electron beam can excite an electron whistler mode instability near the resonance cone by the Landau interaction because near the resonance cone the phase velocity of the wave can be made arbitrarily small. The instability can be excited at all frequencies between the lower hybrid resonance and the electron plasma frequencies. The wave normal angels along the resonance curve vary between 0¿ and 90¿ with respect to the magnetic field. Waves whose wave normal angels are small have the largest growth rates and are most likely to grow to observable amplitudes. Only wave generated within a few degrees of the vertical can reach the ground. The results of the calculations are applied to auroral hiss observations. From the fact that auroral hiss is observed on the ground at frequencies less than 10 kHz it is concluded that at least some of the auroral hiss is generated at altitudes where the ambient electron density is of the order of 1 cm-3. This suggests that auroral electrons are energized in regions where the ambient density is of the order of 1 cm-3 or less.