EXHIBIT 10-A-37

SERVICE AGREEMENT NO. 55293
CONTROL NO. 1995-04-30 - 0028

ITS SERVICE AGREEMENT

THIS AGREEMENT, made and entered into this 31 day of March 1997, by and between:

      COLUMBIA GAS TRANSMISSION CORPORATION ("SELLER")
               AND
      PUBLIC SERVICE COMPANY OF NORTH CAROLINA INCORPORATED
     ("BUYER")

WITNESSETH: That in consideration of the mutual covenants herein contained, the
parties hereto agree as follows:

Section 1. Service to be Rendered.  Seller shall perform and Buyer shall receive
service in accordance with the provisions of the effective ITS Rate Schedule and
applicable  General Terms and  Conditions  of Seller's  FERC Gas Tariff,  Second
Revised  Volume  No. 1  (Tariff),  on file with the  Federal  Energy  Regulatory
Commission (Commission),  as the same may be amended or superseded in accordance
with the rules and  regulations  of the  Commission.  The maximum  obligation of
Seller to deliver gas hereunder to or for Buyer,  the  designation of the points
of delivery at which Seller shall deliver or cause gas to be delivered to or for
Buyer, and the points of receipt at which Buyer shall deliver or cause gas to be
delivered,  are specified in Appendix A, as the same may be amended from time to
time by agreement  between Buyer and Seller, or in accordance with the rules and
regulations of the Commission.  Service  hereunder shall be provided  subject to
the  provisions of Part 284. 223 of Subpart G of the  Commission's  regulations.
Buyer warrants that service hereunder is being provided on behalf of BUYER.

Section 2. Term.  Service under this  Agreement  shall  commence as of APRIL 01,
1997, and shall continue in full force and effect from month-to-month thereafter
unless  terminated  by either party upon thirty (30) days written  notice to the
other  prior to the end of the  initial  term  granted or any  anniversary  date
thereafter.  Pre-granted  abandonment  shall  apply  upon  termination  of  this
Agreement,  subject  to any  right of first  refusal  Buyer  may have  under the
Commission's regulations and Seller's Tariff.

Section 3. Rates.  Buyer shall pay Seller the charges and furnish  Retainage  as
described in the above-referenced  Rate Schedule,  unless otherwise agreed to by
the parties in writing and specified as an amendment to this Service Agreement.

Section 4. Notices. Notices to Seller under this Agreement shall be addressed to
it at Post Office Box 1273,  Charleston,  West Virginia  25325-1273,  Attention:
Manager - Agreements  Administration  and notices to Buyer shall be addressed to
it at:

 PUBLIC SERVICE COMPANY OF NORTH CAROLINA INCORPORATED
 P O BOX 1398
 400 COX ROAD
 GASTONIA, NC    28053-1398

ATTN: DANNY SMITH; until changed by either party by written notice.







SERVICE AGREEMENT NO. 55293
CONTROL NO. 1995-04-30 - 0028

ITS SERVICE AGREEMENT

Section 5. Superseded Agreements. This Service Agreement supersedes and cancels,
as of the effective date hereof, the following Service Agreements: N/A .

PUBLIC SERVICE COMPANY OF NORTH CAROLINA INCORPORATED

By:     /s/ Franklin H. Yoho

Name:   Franklin H. Yoho

Title:  Senior Vice President - Marketing & Gas Supply

Date:   3/25/97

COLUMBIA GAS TRANSMISSION CORPORATION

By:      /s/ Evie M. Jones

Name:    Evie M. Jones

Title:   Aqreements Administration Representative

Date:    March 31, 1997






Revision No.
Control No. 1995-04-30 - 0028

Appendix A to Service Agreement No.55293 Under Rate Schedule ITS Between(Seller)
COLUMBIA GAS TRANSMISSION CORPORATION and (Buyer) PUBLIC SERVICE COMPANY OF 
NORTH CAROLINA INCORPORATED

Transportation Quantity      50,000 Dth/day

The Master  List of  Interconnects  (MLI) as defined in Section 1 of the General
Terms and Conditions is incorporated herein by reference for purposes of listing
valid interruptible receipt points and delivery points.

Service changes  pursuant to this Appendix A shall become  effective as of APRIL
01, 1997.  This Appendix A shall cancel and  supersede  the previous  Appendix A
effective  as of N/A,  to the  Service  Agreement  referenced  above.  With  the
exception  of this  Appendix A, all other terms and  conditions  of said Service
Agreement shall remain in full force and effect.

PUBLIC SERVICE COMPANY OF NORTH CAROLINA INCORPORATED

By:     /s/ Franklin H. Yoho

Name:   Franklin H. Yoho

Title:  Senior Vice President - Marketing & Gas Supply

Date:   3/25/97


COLUMBIA GAS TRANSMISSION CORPORATION

By:      /s/ Evie M. Jones

Name:    Evie M. Jones

Title:   Aqreements Administration Representative

Date:    March 31, 1997