Exhibit 10.20 93013E SERVICE AGREEMENT (APPLICABLE TO RATE SCHEDULE AFT-E) This Agreement ("Agreement") is made and entered into this 1st day of September, 1994, by and between Algonquin Gas Transmission Company, a Delaware Corporation (herein called "Algonquin"), and Yankee Gas Services Company (herein called "Customer" whether one or more persons). WHEREAS, Algonquin and Customer entered into a Service Agreement dated June 1, 1993, for service under Rate Schedule AFT-E; and WHEREAS, Algonquin and its customers entered into a settlement agreement in Algonquin's Docket Nos. RP93-14-000, et al. which provided, among other things, for revised daily and annual contract entitlements under Rate Schedules AFT-1, AFT-E, AFT-1S and AFT-ES; and WHEREAS, the Federal Energy Regulatory Commission issued an order on July 8, 1994, approving the settlement in Docket Nos. RP93-14-000, et al; and WHEREAS, Algonquin and Customer desire to execute a superseding service agreement under Rate Schedule AFT-E in accordance with the terms of the settlement as approved by the Commission's July 8, 1994 order; NOW, THEREFORE, 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-E, 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 (MMBtu) Nov 16 - Apr 15 20,116* Apr 16 - May 31 19,328 Jun 1 - Sep 30 17,750 Oct 1 - Nov 15 19,328 *MDTQ to be utilized in applying monthly Reservation Charge Maximum Annual Transportation Quantity 6,981,192 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 and including October 31, 2012 ("Primary Term") and shall remain in force from year to year thereafter unless terminated by either party by written notice one year or more prior to the end of the Primary Term or any successive term thereafter. Algonquin's right to cancel this Agreement upon the expiration of the Primary Term hereof or any succeeding term shall be subject to Customer's rights pursuant to Sections 8 and 9 of the General Terms and Conditions. 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-E 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-E, nor less than the minimum rate under Rate Schedule AFT-E. 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. 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-E, (b) Algonquin's Rate Schedule AFT-E, pursuant to which service hereunder is rendered or (c) any provision of the General Terms and Conditions applicable to Rate Schedule AFT-E. 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-E. 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-E. 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: Algonquin Gas Transmission Company 1284 Soldiers Field Road Boston, MA 02135 Attn: John J. Mullaney Vice President, Marketing (b) Customer: Yankee Gas Services Company 599 Research Parkway P. O. Box 1030 Meriden, CT 06450-1030 Attn: Thomas J. Houde Vice President, Rates and Resource Planning 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. Service Agreement No. 93013E executed by Customer and Algonquin under Rate Schedule AFT-E dated June 1, 1993. 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 Mullaney (RSH) -------------------------------- Title: Vice President, Marketing YANKEE GAS SERVICES COMPANY By: /s/ Thomas J. Houde -------------------------------- Title: Vice President - Rates and Resource Planning SERVICE AGREEMENT (APPLICABLE TO RATE SCHEDULE AFT-E) Exhibit A Point(s) of Receipt Dated: September 1, 1994 To the service agreement under Rate Schedule AFT-E between Algonquin Gas Transmission Company (Algonquin) and Yankee Gas Services Company (Customer) concerning Point(s) of Receipt Primary Maximum Daily Maximum Point of Receipt Obligation Receipt Pressure Receipt (MMBtu) (Psig) - ---------- ------------------ ------------------ Hanover, NJ (TETCO) At any pressure requested Nov 16-Apr 15 7,670 by Algonquin but not in Apr 16-May 31 7,370 excess of 750 Psig. Jun 1-Sep 30 6,768 Oct 1-Nov 15 7,370 Lambertville, NJ At any pressure requested Nov 16-Apr 15 12,446 by Algonquin but not in Apr 16-May 31 11,958 excess of 750 Psig. Jun 1-Sep 30 10,982 Oct 1-Nov 15 11,958 Signed for Identification Algonquin: /s/ John Mullaney ------------------------- Customer: /s/ David C. Egelson ------------------------- SERVICE AGREEMENT (APPLICABLE TO RATE SCHEDULE AFT-E) Exhibit B Point(s) of Delivery Dated: September 1, 1994 To the service agreement under Rate Schedule AFT-E between Algonquin Gas Transmission Company (Algonquin) and Yankee Gas Services Company (Customer) concerning Point(s) of Delivery Primary Maximum Daily Minimum Point of Delivery Obligation Delivery Pressure Delivery (MMBtu) (Psig) - --------- -------------------- ------------------- On the outlet side of meter stations located at: Waterbury, CT 75 Nov 16 - Apr 15 8,963 Apr 16 - May 31 8,612 Jun 1 - Sep 30 7,909 Oct 1 - Nov 15 8,612 Willimantic, CT 75 Nov 16 - Apr 15 825 Apr 16 - May 31 793 Jun 1 - Sep 30 728 Oct 1 - Nov 15 793 Putnam, CT 50 Nov 16 - Apr 15 629 Apr 16 - May 31 604 Jun 1 - Sep 30 555 Oct 1 - Nov 15 604 Pomfret, CT 250 Nov 16 - Apr 15 1,808 Apr 16 - May 31 1,737 Jun 1 - Sep 30 1,595 Oct 1 - Nov 15 1,737 Plainville (Southington), CT 50 Nov 16 - Apr 15 1,966 Apr 16 - May 31 1,889 Jun 1 - Sep 30 1,735 Oct 1 - Nov 15 1,889 Primary Maximum Daily Minimum Point of Delivery Obligation Delivery Pressure Delivery (MMBtu) (Psig) - --------- -------------------- ------------------- Vernon, CT 100 Nov 16 - Apr 15 6,054 Apr 16 - May 31 5,817 Jun 1 - Sep 30 5,342 Oct 1 - Nov 15 5,817 Thompsonville, CT 198 Nov 16 - Apr 15 2,752 Apr 16 - May 31 2,644 Jun 1 - Sep 30 2,428 Oct 1 - Nov 15 2,644 Kensington, CT 125 Nov 16 - Apr 15 10,850 Apr 16 - May 31 10,425 Jun 1 - Sep 30 9,574 Oct 1 - Nov 15 10,425 Oxford, CT 105 Nov 16 - Apr 15 930 Apr 16 - May 31 894 Jun 1 - Sep 30 821 Oct 1 - Nov 15 894 Waterford, CT 75 Nov 16 - Apr 15 1,306 Apr 16 - May 31 1,255 Jun 1 - Sep 30 1,152 Oct 1 - Nov 15 1,255 Montville, CT 75 Nov 16 - Apr 15 786 Apr 16 - May 31 755 Jun 1 - Sep 30 694 Oct 1 - Nov 15 755 Ledyard, CT 75 Nov 16 - Apr 15 216 Apr 16 - May 31 208 Jun 1 - Sep 30 191 Oct 1 - Nov 15 208 Algonquin's Maximum Daily Delivery Obligation for the Waterbury, Willimantic, Putnam, Pomfret, Plainville, Vernon, Thompsonville, Kensington and Oxford Points of Delivery under this Service Agreement and related Service Agreement No. 93009 shall not exceed a combined total of 48,137 MMBtu on any single day, and for the Waterford and Montville Points of Delivery shall not exceed a combined total of 3,382 MMBtu on any single day. Signed for Identification Algonquin: /s/ John Mullaney (RSH) ------------------------- Customer: /s/ David C. Egelson -------------------------