EXHIBIT 10-A-42

                                                   SERVICE AGREEMENT NO.  49528
                                                   CONTROL NO. 1995-04-30-0082



                          SST SERVICE AGREEMENT

THIS  AGREEMENT,  made and entered  into this 7th day of November  1995,  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
the service in accordance with the provisions of the effective FSS 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Commission (Commission),  as the same may be amended or superseded in accordance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.  Seller shall store quantities
of gas for Buyer up to but not exceeding  Buyer's Storage  Contract  Quantity as
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 November 01,
1998 , or upon  completion  of facilities  and shall  continue in full force and
effect  until  OCTOBER  31 , 2013 , and from  YEAR  -to-YEAR  thereafter  unless
terminated  by either party upon 2 YEARS'  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 the  charges  and  furnish  the  Retainage
percentage  set forth in the  above-referenced  Rate  Schedule and  specified in
Seller's currently  effective Tariff,  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 25326-1273, Attention:
Manager - Agreements Administration and notices to Buyer shall be addressed to
it at:

PUBLIC SERVICE COMPANY OF NORTH CAROLINA INCORPORATED
P 0 BOX 1398
400 COX ROAD
GASTONIA, NC   28053-1398


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























                                                  SERVICE AGREEMENT NO.  49528
                                                  CONTROL NO. 1995-04-30 - 0082




                          SST 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:       Franklin H. Yoho

Name:     /s/ Franklin H. Yoho

Title:    Senior Vice President-Marketing & Gas Supply

Date:     10/31/95


          COLUMBIA GAS TRANSMISSION CORPORATION

By:       /s/ Stephen M. Warnick

Name:     Stephen M. Warnick

Title:    Vice President

Date:     November 7, 1995

























                                                    Revision No.
                                                    Control No. 1995-04-30-0082


              Appendix A to Service Agreement No. 49528
                        Under Rate Schedule SST

Between (Seller) COLUMBIA GAS TRANSMISSION CORPORATION
    and (Buyer) PUBLIC SERVICE COMPANY OF NORTH CAROLINA INCORPORATED


     October through March Transportation Demand      11,778 Dth/day

     April through September Transportation Demand     5,889 Dth/day





                          Primary Receipt Points



     Scheduling       Scheduling                   Maximum Daily
     Point No.        Point Name                 Quantity (Dth/Day)
     --------------------------------------------------------------

     STOW                      STORAGE WITHDRAWALS        11,778









































                                                   Revision No.
                                                   Control No. 1995-04-30-0082



              Appendix A to Service Agreement No. 49528
                        Under Rate Schedule SST


Between (Seller) COLUMBIA GAS TRANSMISSION CORPORATION
   and (Buyer) PUBLIC SERVICE COMPANY OF NORTH CAROLINA INCORPORATED





                                                       Primary Delivery Points
                                                       -----------------------

Scheduling          Scheduling           Measuring           Measuring          Maximum Daily              Maximum
Point No.           Point Name           Point No.           Point Name         Delivery Obligation       $ 1 Delivery
                                                                                (Dth/Day)                 Pressure
                                                                                                          Obligation
                                                                                                          (PSIG)
- -----------------------------------------------------------------------------------------------------------------------------------

                                                                                               

833097            TRC Boswells             833097          TRC Boswells               11,778                  750
                    Tavern                                   Tavern













































                                                   Revision No.
                                                   Control No.  1995-04-30-0082



               Appendix A to Service Agreement No. 49528
                          Under Rate Schedule SST

Between (Seller) COLUMBIA GAS TRANSMISSION CORPORATION
   and (Buyer) PUBLIC SERVICE COMPANY OF NORTH CAROLINA INCORPORATED


S1            / IF A MAXIMUM PRESSURE IS NOT SPECIFICALLY  STATED, THEN SELLER'S
              OBLIGATION SHALL BE AS STATED IN SECTION 13 (DELIVERY PRESSURE) OF
              THE GENERAL TERMS AND CONDITIONS.

GFNT/         THIS SERVICE AGREEMENT AND ITS EFFECTIVENESS ARE SUBJECT TO
              PRECEDENT AGREEMENT NO. 47810 BETWEEN BUYER AND SELLER DATED
              JUNE 27, 1995.

              UNLESS  STATION  SPECIFIC  MDOS ARE  SPECIFIED IN A SEPARATE  FIRM
              SERVICE  AGREEMENT  BETWEEN SELLER AND BUYER,  SELLER'S  AGGREGATE
              MAXIMUM  DAILY  DELIVERY  OBLIGATION,  UNDER  THIS  AND ANY  OTHER
              SERVICE  AGREEMENT  BETWEEN  SELLER AND BUYER,  AT THE  STATION(S)
              LISTED ABOVE SHALL NOT EXCEED THE MDDO  QUANTITIES SET FORTH ABOVE
              FOR EACH STATION.  ANY STATION  SPECIFIC  MDDOS IN A SEPARATE FIRM
              SERVICE  AGREEMENT  BETWEEN  SELLER AND BUYER SHALL BE ADDITIVE TO
              THE INDIVIDUAL STATION MDDOS SET FORTH ABOVE.















































                                                    Revision No.
                                                    Control No. 1995-04-30-0082

               Appendix A to Service Agreement No. 49528
                        Under Rate Schedule SST
Between (Seller) COLUMBIA GAS TRANSMISSION CORPORATION
   and (Buyer) PUBLIC SERVICE COMPANY OF NORTH CAROLINA INCORPORATED





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


Service  changes  pursuant  to this  Appendix  A shall  become  effective  as of
NOVEMBER 01, 1998,  or upon  completion  of  facilities.  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:           Franklin H. Yoho

Name:         /s/ Franklin H. Yoho

Title:        Senior Vice President-Marketing & Gas Supply

Date:         10/31/95


              COLUMBIA GAS TRANSMISSION CORPORATION

By:           /s/ Stephen M. Warnick

Name:         Stephen M. Warnick

Title:        Vice President

Date:         November 7, 1995