Exhibit 10-B-4.1
       

                      AMENDMENT TO SERVICE AGREEMENT

THIS  AMENDMENT  ("Amendment")  is entered into this l5 day of May, 1996, by and
between  TRANSCONTINENTAL  GAS PIPE LINE  CORPORATION,  a Delaware  corporation,
hereinafter referred to as "Seller",  first party, and PUBLIC SERVICE COMPANY OF
NORTH CAROLINA,  INC., a North Carolina Corporation,  hereinafter referred to as
"Buyer", second party.

                                   WITNESSETH:

WHEREAS,  Seller and Buyer are parties to that certain Service Agreement,  dated
August 5, 1974, under Seller's Rate Schedule LG-A ("Service Agreement") pursuant
to which Seller provides liquefied natural gas storage service for Buyer up to a
total volume of 25,000 Mcf of natural gas per day which is Buyer's  Liquefaction
Capacity Volume; and

WHEREAS,  Seller and Buyer now desire to extend the primary  term of the Service
Agreement.

NOW THEREFORE,  Seller and Buyer hereby agree to amend the Service  Agreement as
follows:

1. Article IV of the Service Agreement is hereby deleted in its entirety and
   replaced by the following:

                                    ARTICLE IV
                                TERM OF AGREEMENT

This  agreement  shall be  effective  as of November 1, 1974 and shall remain in
force and effect until 8:00 a.m.  Eastern  Standard  Time October 31, 2016,  and
thereafter  until terminated by Seller or Buyer upon at least one hundred eighty
(180) days  prior  written  notice;  provided,  however,  this  agreement  shall
terminate  immediately and, subject to the receipt of necessary  authorizations,
if any,  Seller may  discontinue  service  hereunder  if (a) Buyer,  in Seller's
reasonable judgement fails to demonstrate creditworthiness,  and (b) Buyer fails
to provide adequate  security in accordance with Section 32 of the General Terms
and Conditions of Seller's Volume No 1 Tariff."

2. This Amendment shall be effective as of the date first above written.

3. Except as herein  amended,  the Service  Agreement shall remain in full force
and effect pursuant to the terms thereof.

IN WITNESS  WHEREOF,  the parties hereto have caused this Amendment to be signed
by their respective officers or representatives thereunto duly authorized.


TRANSCONTINENTAL GAS PIPE                        PUBLIC SERVICE COMPANY OF
 LINE CORPORATION ("Seller")                     NORTH CAROLINA, INC. ("Buyer")

By:   s/Frank J. Ferazzi                         By: s/Franklin H. Yoho
      Vice President                                 Senior Vice President-
      Customer Service                               Marketing & Gas Supply

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