[EXHIBIT 10tt TO COLONIAL GAS COMPANY
                 FORM 10-K FOR YEAR ENDED 12/31/94]

					Contract No. 933003

                     SERVICE AGREEMENT
            (APPLICABLE TO RATE SCHEDULE AFT-1)



   WHEREAS, Algonquin Gas Transmission Company
   ("Algonquin"), a Delaware    Corporation,   and
   Colonial    Gas    Company, ("Customer"), entered into a
   service agreement dated  August 1, 1993, under
   Algonquin's Rate Schedule PSS-T;
   
   WHEREAS,  the  Commission issued an order on July  8,
   1994, approving  a  Stipulation and Agreement filed  on
   March  1, 1994, as supplemented on April 25, 1994, in
   Docket Nos. RP93-14-000, et al. (the "S&A");
   
   WHEREAS, Article III, Section 3 of the S&A provides  that
   a customer  under  Rate  Schedule  PSS-T  has  the
   option  of converting such service to service under Rate
   Schedule  AFT-1;
   
   WHEREAS,  Article  III, Section 3 of the S&A  provides
   that such  conversion to Part 284 service shall  not
   affect  the rate that the converting customer shall pay,
   which shall  be the  rate the converting customer would
   otherwise have  paid as a result of the S&A, under its
   prior service agreement;
   
   WHEREAS, Customer provided Algonquin with written notice  of
   its intention to convert to Rate Schedule AFT-1;

   NOW,  THEREFORE, this Agreement ("Agreement")  is  made
   and entered  into this 1st day of November, 1994, by and
   between Algonquin and Customer.
   
   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:
        
Maximum Daily Transportation Quantity (MDTQ)    2,222 MMBtu
Maximum Annual Transportation Quantity (MATQ) 811,030 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  March  31,  2012
("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.

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 specified under
Rate  Schedule  AFT-1 for service  resulting  from  the
conversion  of entitlements under former Rate  Schedule
PSS-T,  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.

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.  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:  Colonial Gas Company 
                            40 Market Street
                            P. O. Box 3064 
                            Lowell, MA  01853
                            Attn:  John P. Harrington
                                   Vice President, Gas Supply

     or  such  other address as either party shall  designate  by
     formal written notice.

                            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.
     
     Service  Agreement  No.  933003  executed  by  Customer  and
     Algonquin under Rate Schedule PSS-T dated August 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:      John J. Mullaney/RSH

                    Title:   Vice President, Marketing



                       COLONIAL GAS COMPANY
                                 
                                 
                                 
                                 
                    By:      John P. Harrington

                    Title:   Vice President - Gas Supply


KFG/cl



                             Exhibit A
                        Point(s) of Receipt
                                 
                      Dated: November 1, 1994
                                 
                                 
   To the service agreement under Rate Schedule AFT-1 between
       Algonquin Gas Transmission Company (Algonquin) and
 Colonial Gas Company (Customer) concerning Point(s) of Receipt


     Primary               Maximum Daily          Maximum
     Point of            Receipt Obligation   Receipt Pressure
     Receipt                 (MMBtu)              (Psig)

  Lambertville, NJ          2,222           At any pressure
                                            requested by
                                            Algonquin but not in
                                            excess of 750 Psig.




Signed for Identification

Algonquin:   John P. Mullaney/RSH

Customer:    John P. Harrington




                            Exhibit B
                      Point(s) of Delivery
                                
                     Dated: November 1, 1994
                                
   To the service agreement under Rate Schedule AFT-1 between
       Algonquin Gas Transmission Company (Algonquin) and
 Colonial Gas Company (Customer) concerning Point(s) of Delivery
                                
                                
     Primary               Maximum Daily              Minimum
     Point of            Delivery Obligation      Delivery Pressure
     Delivery                (MMBtu)                  (Psig)

     Bourne, MA                766                      200
     Sagamore, MA            1,456                      200




Signed for Identification

Algonquin:  John J. Mullaney/RSH

Customer:  John P. Harrington

KFG/cl



                [END OF EXHIBIT 10tt TO COLONIAL GAS COMPANY
                   FORM 10-K FOR YEAR ENDED 12/31/94]