EXHIBIT 10-A-44

                                                   SERVICE AGREEMENT NO. 49525
                                                   CONTROL NO.1995-04-30 - 0085




                             FSS 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Commission (Commission),  as the same may be amended or superseded in accordance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 APRIL 01,
1999 , or upon  completion  of facilities  and shall  continue in full force and
effect  until  OCTOBER  3 1 , 2014 , 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 25325-1273, 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. 49525

                                                 CONTROL NO. 1995-04-30 - 0085



                               FSS 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 - 0085


            Appendix A to Service Agreement No. 49525
                     Under Rate Schedule FSS

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


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








































                                                    Revision No.
                                                    Control No. 1995-04-30-0085

Appendix A to Service Agreement No. 49525
Under Rate Schedule FSS
Between  (Seller)  COLUMBIA  GAS  TRANSMISSION  CORPORATION
and (Buyer)  PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INC.


          Storage Contract Quantity            1,060,110   Dth
     Maximum Daily Storage Quantity               11,779   Dth per day




CANCELLATION OF PREVIOUS APPENDIX A


Service changes  pursuant to this Appendix A shall become  effective as of April
01, 1999.  This Appendix A shall cancel and  supersede  the previous  Appendix A
effective  as of  N/A , to the  Service  Agreement  reference  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