9B103

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)
                        ---------------------------------
    
        This Agreement ("Agreement") is made and entered into this 1st day of
        September, 1994, by and between Algonquin Gas Transmission Company, a
        Delaware Corporation (herein called "Algonquin"), and Connecticut
        Natural Gas Corporation (herein called "Customer" whether one or more
        persons).
    
        WHEREAS, Algonquin and Customer entered into a Service Agreement dated
        June 1, 1993, for service under Rate Schedule AFT-1; and
    
        WHEREAS, Algonquin and its customers entered into a settlement
        agreement in Algonquin's Docket Nos. RP93-14-000, et al. which
        provided, among other things, for revised daily and annual contract
        entitlements under Rate Schedules AFT-1, AFT-E, AFT-1S and AFT-ES; and
    
        WHEREAS, the Federal Energy Regulatory Commission issued an order on
        July 8, 1994, approving the settlement in Docket Nos. RP93-14-000, et
        al; and
    
        WHEREAS, Algonquin and Customer desire to execute a superseding service
        agreement under Rate Schedule AFT-1 in accordance with the terms of the
        settlement as approved by the Commission's July 8, 1994 order;
    
        NOW, THEREFORE, in consideration of the premises and of the mutual
        covenants herein contained, the parties do agree as follows: 
    
    
                                    ARTICLE I
                                    ---------
                                SCOPE OF AGREEMENT
                                ------------------
    
        1.1  Subject to the terms, conditions and limitations hereof and of
             Algonquin's Rate Schedule AFT-1, Algonquin agrees to receive from
             or for the account of Customer for transportation on a firm basis
             quantities of natural gas tendered by Customer on any day at the
             Point(s) of Receipt; provided, however, Customer shall not tender
             without the prior consent of Algonquin, at any Point of Receipt on
             any day a quantity of natural gas in excess of the applicable
             Maximum Daily Receipt Obligation for such Point of Receipt plus
             the applicable Fuel Reimbursement Quantity; and provided further
             that Customer shall not tender at all Point(s) of Receipt on any
             day or in any year a cumulative quantity of natural gas, without
             the prior consent of Algonquin, in excess of the following
             quantities of natural gas plus the applicable Fuel Reimbursement
             Quantities:
    



                                                                          9B103

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)
                        ---------------------------------
    
    
                                    ARTICLE I
                                    ---------
                                SCOPE OF AGREEMENT
                                ------------------
                                   (Continued)
    
    
                  Maximum Daily Transportation Quantity (MMBtu)
                  ---------------------------------------------
    
    
                       Nov 16 - Apr 15          4,230*
                       Apr 16 - May 31          2,820
                       Jun  1 - Sep 30              0
                       Oct  1 - Nov 15          2,820
    
    
                  *MDTQ to be utilized in applying monthly Reservation Charge
    
    
             Maximum Annual Transportation Quantity        898,170 MMBtu

    
    
    
        1.2  Algonquin agrees to transport and deliver to or for the account of
             Customer at the Point(s) of Delivery and Customer agrees to accept
             or cause acceptance of delivery of the quantity received by
             Algonquin on any day, less the Fuel Reimbursement Quantities;
             provided, however, Algonquin shall not be obligated to deliver at
             any Point of Delivery on any day a quantity of natural gas in
             excess of the applicable Maximum Daily Delivery Obligation.
    
    
                                    ARTICLE II
                                    ----------
                                TERM OF AGREEMENT
                                -----------------
    
        2.1  This Agreement shall become effective as of the date set forth
             hereinabove and shall continue in effect for a term ending on and
             including April 15, 2000 ("Primary Term") and shall remain in
             force from year to year thereafter unless terminated by either
             party by written notice one year or more prior to the end of the
             Primary Term or any successive term thereafter.  Algonquin's right
             to cancel this Agreement upon the expiration of the Primary Term
             hereof or any succeeding term shall be subject to Customer's
             rights pursuant to Sections 8 and 9 of the General Terms and
             Conditions.
    



                                                                          9B103

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)
                        ---------------------------------
    
    
                                    ARTICLE II
                                    ----------
                                TERM OF AGREEMENT
                                -----------------
                                   (Continued)
    
        2.2  This Agreement may be terminated at any time by Algonquin in the
             event Customer fails to pay part or all of the amount of any bill
             for service hereunder and such failure continues for thirty days
             after payment is due; provided Algonquin gives ten days prior
             written notice to Customer of such termination and provided
             further such termination shall not be effective if, prior to the
             date of termination, Customer either pays such outstanding bill or
             furnishes a good and sufficient surety bond guaranteeing payment
             to Algonquin of such outstanding bill; provided that Algonquin
             shall not be entitled to terminate service pending the resolution
             of a disputed bill if Customer complies with the billing dispute
             procedure currently on file in Algonquin's tariff.
    
    
                                   ARTICLE III
                                   -----------
                                  RATE SCHEDULE
                                  -------------
    
        3.1  Customer shall pay Algonquin for all services rendered hereunder
             and for the availability of such service under Algonquin's Rate
             Schedule AFT-1 as filed with the Federal Energy Regulatory
             Commission and as the same may be hereafter revised or changed. 
             The rate to be charged Customer for transportation hereunder shall
             not be more than the maximum rate under Rate Schedule AFT-1, nor
             less than the minimum rate under Rate Schedule AFT-1.
    
        3.2  This Agreement and all terms and provisions contained or
             incorporated herein are subject to the provisions of Algonquin's
             applicable rate schedules and of Algonquin's General Terms and
             Conditions on file with the Federal Energy Regulatory Commission,
             or other duly constituted authorities having jurisdiction, and as
             the same may be legally amended or superseded, which rate
             schedules and General Terms and Conditions are by this reference
             made a part hereof.
    
    



                                                                          9B103

    
                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)
                        ---------------------------------
    
                                   ARTICLE III
                                   -----------
                                  RATE SCHEDULE
                                  -------------
                                   (Continued)
    
        3.3  Customer agrees that Algonquin shall have the unilateral right to
             file with the appropriate regulatory authority and make changes
             effective in (a) the rates and charges applicable to service
             pursuant to Algonquin's Rate Schedule AFT-1, (b) Algonquin's Rate
             Schedule AFT-1, pursuant to which service hereunder is rendered or
             (c) any provision of the General Terms and Conditions applicable
             to Rate Schedule AFT-1.  Algonquin agrees that Customer may
             protest or contest the aforementioned filings, or may seek
             authorization from duly constituted regulatory authorities for
             such adjustment of Algonquin's existing FERC Gas Tariff as may be
             found necessary to assure that the provisions in (a), (b), or (c)
             above are just and reasonable.
    
    
                                    ARTICLE IV
                                    ----------
                               POINT(S) OF RECEIPT
                               -------------------
    
        Natural gas to be received by Algonquin for the account of Customer
        hereunder shall be received at the outlet side of the measuring
        station(s) at or near the Primary Point(s) of Receipt set forth in
        Exhibit A of the service agreement, with the Maximum Daily Receipt
        Obligation and the receipt pressure obligation indicated for each such
        Primary Point of Receipt.  Natural gas to be received by Algonquin for
        the account of Customer hereunder may also be received at the outlet
        side of any other measuring station on the Algonquin system, subject to
        reduction pursuant to Section 6.2 of Rate Schedule AFT-1.
    
    
                                    ARTICLE V
                                    ---------
                               POINT(S) OF DELIVERY
                               --------------------
    
        Natural gas to be delivered by Algonquin for the account of Customer
        hereunder shall be delivered on the outlet side of the measuring
        station(s) at or near the Primary Point(s) of Delivery set forth in
        Exhibit B of the service agreement, with the Maximum Daily Delivery
        Obligation and the delivery pressure obligation indicated for each such
        Primary Point of Delivery.
    



                                                                          9B103

    
    
                                 SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)
                        ----------------------------------
    
    
        Natural gas to be delivered by Algonquin for the account of Customer
        hereunder may also be delivered at the outlet side of any other
        measuring station on the Algonquin system, subject to reduction
        pursuant to Section 6.4 of Rate Schedule AFT-1.
    
    
                                    ARTICLE VI
                                    ----------
                                    ADDRESSES
                                    ---------
    
    
        Except as herein otherwise provided or as provided in the General Terms
        and Conditions of Algonquin's FERC Gas Tariff, any notice, request,
        demand, statement, bill or payment provided for in this Agreement, or
        any notice which any party may desire to give to the other, shall be in
        writing and shall be considered as duly delivered when mailed by
        registered, certified, or first class mail to the post office address
        of the parties hereto, as the case may be, as follows:
    
    
    
    
             (a)  Algonquin:     Algonquin Gas Transmission Company
                                 1284 Soldiers Field Road
                                 Boston, MA  02135
                                 Attn:     John J. Mullaney
                                      Vice President, Marketing
    
    
             (b)  Customer:      Connecticut Natural Gas Corporation
                                 100 Columbus Boulevard
                                 P. O. Box 1500
                                 Hartford, CT  06144
                                 Attn:     Harry Kraiza, Jr.
                                      Senior Vice President, Energy Services
    
    
    
        or such other address as either party shall designate by formal written
        notice.
    
    



                                                                          9B103

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)
                        ---------------------------------
    
                                   ARTICLE VII
                                   -----------
                                  INTERPRETATION
                                  --------------
    
    
        The interpretation and performance of the Agreement shall be in
        accordance with the laws of the Commonwealth of Massachusetts,
        excluding conflicts of law principles that would require the
        application of the laws of a different jurisdiction.
    
    
                                   ARTICLE VIII
                                   ------------
                           AGREEMENTS BEING SUPERSEDED
                           ---------------------------
    
    
        When this Agreement becomes effective, it shall supersede the following
        agreements between the parties hereto, except that in the case of
        conversions from former Rate Schedules F-2 and F-3, the parties'
        obligations under Article II of the service agreements pertaining to
        such rate schedules shall continue in effect.
    
        Service Agreement No. 9B103 executed by Customer and Algonquin under
        Rate Schedule AFT-1 dated June 1, 1993.
    
        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
        signed by their respective agents thereunto duly authorized, the day
        and year first above written.
    
    
    
                  ALGONQUIN GAS TRANSMISSION COMPANY
    
    
                  By:  /s/ John J. Mullaney
    
                  Title: /s/ Vice President, Marketing   
    
    
    
                  CONNECTICUT NATURAL GAS CORPORATION 
    
    
                  By:  /s/ Edna M. Karanian      
    
                  Title:  /s/ Ass't Vice Pres. Energy Planning & Procurement  
    
    



                                                                          9B103

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)
                        ---------------------------------
    
    
                                    Exhibit A
                                    ---------
                               Point(s) of Receipt
                               -------------------
    
                             Dated: September 1, 1994
    
    
           To the service agreement under Rate Schedule AFT-1 between 
               Algonquin Gas Transmission Company (Algonquin) and 
   Connecticut Natural Gas Corporation(Customer) concerning Point(s) of Receipt
    
    
        Primary               Maximum Daily              Maximum
        Point of            Receipt Obligation       Receipt Pressure
        Receipt                 (MMBtu)                   (Psig)
        --------            ------------------       ----------------
    
    
        Lambertville, NJ                             At any pressure requested
             Nov 16 - Apr 15      4,230              by Algonquin but not in
             Apr 16 - May 31      2,820              excess of 750 Psig.
             Jun  1 - Sep 30          0
             Oct  1 - Nov 15      2,820
    
    
    
    
    
   Signed for Identification
    
   Algonquin: /s/  John J. Mullaney
    
   Customer: /s/  Edna M. Karanian
    



                                                                          9B103

                                SERVICE AGREEMENT
                       (APPLICABLE TO RATE SCHEDULE AFT-1)
    
    
    
                                    Exhibit B
                                     --------
                               Point(s) of Delivery
                                 ---------------
    
                             Dated: September 1, 1994
    
           To the service agreement under Rate Schedule AFT-1 between 
               Algonquin Gas Transmission Company (Algonquin) and 
      Connecticut Natural Gas Corporation (Customer) concerning Point(s) of
                                     Delivery
    
    
        Primary               Maximum Daily              Minimum
        Point of            Delivery Obligation      Delivery Pressure
        Delivery                  (MMBtu)                 (Psig)
        --------            -------------------      -----------------
    
        On the outlet side
        of meter station
        located at:
    
        Glastonbury, CT                                      150
           Nov 16 - Apr 15          4,230                              
           Apr 16 - May 31          2,820 
           Jun  1 - Sep 30              0
           Oct  1 - Nov 15          2,820 
    
    
    
   Signed for Identification
    
   Algonquin: /s/  John J. Mullaney

   Customer: /s/  Edna M. Karanian
    
   FMH/cl
   9B103.New