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
          -------------------------