[EXHIBIT 10uu TO COLONIAL GAS COMPANY
       FORM 10-K FOR YEAR ENDED DECEMBER 31, 1995]



                                         Contract No. 95135

                       SERVICE AGREEMENT
              (APPLICABLE TO RATE SCHEDULE AFT-1)


     This  Agreement ("Agreement") is made and entered into  this
     1st  day  of  December, 1995,  by and between Algonquin  Gas
     Transmission Company, a Delaware Corporation (herein  called
     "Algonquin"),  and  Colonial  Gas  Company,  (herein  called
     "Customer" whether one or more persons).

     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     4,000 MMBtu
          Maximum Annual Transportation Quantity  488,000 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 March 31, 1996.  The term of this
          agreement shall not be extended beyond March 31,  1996.
          Upon  expiration of this Agreement, Customer shall have
          no  rights  providing for the avoidance  of  pregranted
          abandonment.

          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.

                          ARTICLE III
                         RATE SCHEDULE
                          
          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:  1284 Soldiers Field Road
                           Boston, MA  02135
                           Attn:  John J. Mullaney
                                  Vice President, Marketing

          (b)  Customer:    40 Market Street
                            Lowell, MA 01852
                            Attn: John P. Harrington
                                  Sr. 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, 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.  Not Applicable.

     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/rsh

                    Title: Vice President, Marketing


                         COLONIAL GAS COMPANY


                      By: /s/ John P. Harrington

                   Title: Senior Vice President-Gas Supply







                            Exhibit A
                                
                       Point(s) of Receipt
                                
                    Dated:  December 1, 1995
                                
                                
   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
     Point of            Maximum Daily            Maximum
     Receipt            Receipt Obligation    Receipt Pressure

  Dey Street, RI           4,000 MMBtu          Algonquin's
                                               Line Pressure
                                               as may exist
                                              from time to time.







     Signed for Identification

     Algonquin: /s/ John J. Mullaney/rsh

     Customer:  /s/ John P. Harrington

     
        [END OF EXHIBIT 10uu TO COLONIAL GAS COMPANY
          FORM 10-K FOR YEAR ENDED DECEMBER 31, 1995]