<HTML>
<HEAD>
<TITLE>10-Q0300</TITLE>
</HEAD>
<B><P ALIGN="CENTER">UNITED STATES SECURITIES AND EXCHANGE
COMMISSION</P>
</B><P ALIGN="CENTER">WASHINGTON, D.C. 20549</P>
<B><FONT SIZE=5><P ALIGN="CENTER">FORM 10-Q</P>
</B></FONT><P ALIGN="CENTER"> </P>
<P>(Mark One)</P><DIR>
<DIR>
<P>(X) QUARTERLY REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES<BR>
EXCHANGE ACT OF 1934</P></DIR>
</DIR>
<P> </P>
<P>For the quarterly period ended <U>March
31, 2000</P>
</U><P ALIGN="CENTER">OR</P>
<P> </P><DIR>
<DIR>
<P>( ) TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES<BR>
EXCHANGE ACT OF 1934</P></DIR>
</DIR>
<P> </P>
<P ALIGN="JUSTIFY">For the transition period from <U>
</U>to <U>
</P>
</U><P> </P>
<P>Commission file number <U>1-12859</P>
</U><P> </P>
<B><U><FONT SIZE=5><P ALIGN="CENTER"> CTG RESOURCES, INC.
</B></U></FONT><FONT SIZE=2><BR>
</FONT>(Exact name of registrant as specified in
its charter)</P>
<P> </P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=672>
<TR><TD WIDTH="61%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><U>
Connecticut
<BR>
</U>(State or other jurisdiction of incorporation or organization)</TD>
<TD WIDTH="39%" VALIGN="BOTTOM">
<U><P ALIGN="CENTER">
06-1466463
<BR>
</U>(I.R.S. Employer Identification No.)</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" HEIGHT=48>
<P ALIGN="CENTER"> <BR>
100 Columbus Blvd.<BR>
P.O. Box 1500<BR>
<U>
Hartford, Connecticut
<BR>
</U>(Address of principal executive offices)</TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=48>
<P ALIGN="CENTER"> <BR>
<BR>
<BR>
<U>
06144-1500
<BR>
</U>(Zip code)</TD>
</TR>
<P> </P>
<U><P ALIGN="CENTER">
(860) 727-3000
<BR>
</U> (Registrant's telephone number, including area
code)</P>
<U><P ALIGN="CENTER">
<BR>
</U>(Former name, former address and former fiscal
year, if changed since last report).</P>
<P> </P>
<P> Indicate by check mark
whether the registrant (1) has filed all
reports required to be filed by <BR>
Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12
months (or for <BR>
such shorter period that the registrant was
required to file such reports), and (2) has
been subject to <BR>
such filing requirements for the past 90
days.
Yes <U> X </U> No<U>
</U> </P>
<P> Indicate the number of
shares outstanding of each of the issuer's
classes of common stock, as of<BR>
the latest practicable date (applicable only to
Corporate Issuers). Number of shares of
common stock<BR>
outstanding as of the close of business on
April 30, 2000: 8,620,212.</P>
<P> </P>
<P ALIGN="CENTER">FINANCIAL STATEMENTS</P>
<P ALIGN="CENTER">CTG RESOURCES, INC.</P>
<P ALIGN="CENTER"> The condensed
financial statements included herein have been prepared by the Company, without
audit, pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations. Although the Company believes that the disclosures are adequate to
make the information presented not misleading, it is suggested that these
condensed financial statements be read in conjunction with the financial
statements and the notes thereto included in the Company's annual report on Form
10-K. In the opinion of the Company, all adjustments necessary to present fairly
the consolidated financial position of CTG Resources, Inc. as of March 31, 2000
and 1999 and the results of its operations and its cash flows for the three
months, six months and twelve months ended March 31, 2000 and 1999 have been
included. The results of operations for such interim periods are not necessarily
indicative of the results for the full year.</P>
<P ALIGN="RIGHT">"INTERIM DATA UNAUDITED"</P>
<P ALIGN="CENTER">CTG RESOURCES, INC.</P>
<P ALIGN="CENTER">CONSOLIDATED BALANCE SHEETS</P>
<I><P ALIGN="CENTER">(Dollars in Thousands)</P></I>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=686>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="CENTER">March 31, </B></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="CENTER">September 30, </B></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="CENTER">March 31, </B></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="CENTER">ASSETS</B></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="CENTER">2000 </B></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="CENTER">1999 </B></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="CENTER">1999 </B></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P>Plant and Equipment:</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Regulated energy</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> $ 472,038
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> $ 466,407
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> $ 453,815
</TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Unregulated energy</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
66,519 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
65,870 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
63,251 </TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Construction work in progress</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
1,261 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
1,654 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
5,535 </U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 539,818
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 533,931
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 522,601
</TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Less-Allowance for depreciation</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 201,211
</U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 192,751
</U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 184,658
</U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 338,607
</U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 341,180
</U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 337,943
</U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P>Investments, at equity</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
13,072 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
12,449 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
11,902 </U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P>Current Assets:</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Cash and cash equivalents</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
41,594 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
15,097 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
21,963 </TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Accounts and notes receivable</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
62,418 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
35,131 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
61,098 </TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Allowance for doubtful accounts</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
(6,067)</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
(4,285)</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
(5,206)</TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Accrued utility revenue</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
11,485 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
3,263 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
10,626 </TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Inventories</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
10,204 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
21,294 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
11,635 </TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Prepaid expenses</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
5,353 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
7,449 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
5,179 </U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 124,987
</U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
77,949 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 105,295
</U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P>Deferred Charges and Other Assets:</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Unrecovered future taxes</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
4,675 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
5,322 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
8,321 </TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Other assets</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
23,371 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
29,361 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
29,081 </U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
28,046 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
34,683 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
37,402 </U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 504,712 </U>
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 466,261 </U>
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 492,542 </U>
</TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="CENTER">CAPITALIZATION AND LIABILITIES</B></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P>Capitalization:</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Common Stock</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> $ 67,387
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> $ 67,448
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> $ 67,448
</TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Retained Earnings</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
74,809 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
61,048 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
69,884 </U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 142,196
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 128,496
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 137,332
</TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Unearned compensation -
Restricted stock awards </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
(366)</U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
(448)</U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
(400)</U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Common stock equity</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 141,830
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 128,048
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 136,932
</TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Preferred stock, not subject to
mandatory redemption</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
853 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
862 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
879 </TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Long-term debt</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 216,543
</U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 214,769
</U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 217,528
</U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 359,226
</U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 343,679
</U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 355,339
</U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P>Current Liabilities:</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Current portion of long-term debt</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
3,285 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
5,283 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
3,235 </TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Accounts payable and accrued expenses
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
35,506 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
33,017 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
28,546 </TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Refundable purchased gas costs</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
9,003 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
2,782 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
12,947 </TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Accrued liabilities</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
16,113 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
5,433 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
11,640 </U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
63,907 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
46,515 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
56,368 </U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P>Deferred Credits:</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Deferred income taxes</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
59,726 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
55,444 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
58,496 </TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Unfunded deferred income taxes</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
4,675 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
5,322 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
8,321 </TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Investment tax credits</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
2,430 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
2,541 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
2,651 </TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Refundable taxes</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
6,541 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
5,311 </TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
4,302 </TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19>
<P> Other</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
8,207 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
7,449 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
7,065 </U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
81,579 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
76,067 </U></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
80,835 </U></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 504,712 </U>
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 466,261 </U>
</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 492,542 </U>
</TD>
</TR>
<P ALIGN="RIGHT">"UNAUDITED"</P>
<P ALIGN="CENTER">CTG RESOURCES, INC. </P>
<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF INCOME </P>
<I><P ALIGN="CENTER">(Dollars in thousands except for per share data)</P></I>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=573>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P></TD>
<TD WIDTH="40%" VALIGN="TOP" COLSPAN=2 HEIGHT=19>
<P ALIGN="CENTER">Three Months Ended</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="40%" VALIGN="TOP" COLSPAN=2 HEIGHT=19>
<U><P ALIGN="CENTER">
March 31,
</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="RIGHT">2000 </B></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="RIGHT">1999 </B></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Operating Revenues</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> $ 126,421
</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> $ 113,001
</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Less: Cost of Energy</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
69,617 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
59,167 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> State
Gross Receipts Tax</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
4,323 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
3,934 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Operating Margin</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
52,481 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
49,900 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Other Operating Expenses:</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Operations & maintenance expenses</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
16,841 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
14,871 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Depreciation</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
5,327 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
5,086 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Income taxes</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
13,108 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
11,975 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Other taxes</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
1,908 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
1,978 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
37,184 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
33,910 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Operating Income</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
15,297 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
15,990 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Other Income/(Deductions):</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Allowance for equity funds used</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> during construction</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
7 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
11 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Equity in partnership earnings</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
824 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
560 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Other income</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
1,184 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
191 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Income Taxes</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
(630)</U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
(252)</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
1,385 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
510 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Income Before Interest Charges</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
16,682 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
16,500 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Interest and Debt Expense</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
4,337 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
4,259 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Net Income</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
12,345 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
12,241 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Less-Dividends on Preferred Stock</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
15 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
16 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Net Income Applicable to Common Stock</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
12,330 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
12,225 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Income Per Average Share of</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Common Stock:</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Basic</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
1.43 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
1.41 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Diluted</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
1.42 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
1.41 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Average Common Shares Outstanding</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> During the Period:</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Basic</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 8,620,379
</U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 8,648,029
</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Diluted</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 8,671,485
</U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 8,683,570
</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Dividends Per Share of Common Stock</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
0.26 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
0.26 </U></TD>
</TR>
</CENTER></P>
<P ALIGN="RIGHT"> </P>
<P ALIGN="RIGHT">"UNAUDITED"</P>
<P ALIGN="CENTER">CTG RESOURCES, INC.</P>
<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF INCOME </P>
<I><P ALIGN="CENTER">(Dollars in thousands except for per share data)</P></I>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=573>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P></TD>
<TD WIDTH="40%" VALIGN="TOP" COLSPAN=2 HEIGHT=19>
<P ALIGN="CENTER">Six Months Ended</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="40%" VALIGN="TOP" COLSPAN=2 HEIGHT=19>
<U><P ALIGN="CENTER">
March 31,
</U>
</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="RIGHT">2000 </B></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="RIGHT">1999 </B></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Operating Revenues</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> $ 213,530
</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> $ 194,680
</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Less: Cost of Energy</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
117,500 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
103,557 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> State
Gross Receipts Tax</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
7,094 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
6,743 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Operating Margin</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
88,936 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
84,380 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Operating Expenses:</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Operations & maintenance expenses</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
30,950 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
28,682 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Depreciation</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
10,446 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
10,086 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Income taxes</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
18,798 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
16,437 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Other taxes</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
3,783 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
3,793 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
63,977 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
58,998 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Operating Income</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
24,959 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
25,382 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Other Income/(Deductions):</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Allowance for equity funds used</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> during construction</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
15 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
18 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Equity in partnership earnings</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
1,353 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
1,054 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Merger Costs</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
(457)</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
-
</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Other income</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
1,412 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
564 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Income Taxes</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
(788)</U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
(568)</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
1,535 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
1,068 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Income Before Interest Charges</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
26,494 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
26,450 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Interest and Debt Expense</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
8,206 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
8,517 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Net Income</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
18,288 </TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
17,933 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Less-Dividends on Preferred Stock</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
30 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
31 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Net Income Applicable to Common Stock</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
18,258 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
17,902 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Income Per Average Share of</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Common Stock:</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Basic</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
2.12 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
2.07 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Diluted</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
2.11 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
2.06 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Average Common Shares Outstanding</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> During the Period:</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Basic</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 8,620,379
</U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 8,648,029
</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P> Diluted</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 8,671,224
</U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 8,681,820
</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=19>
<P>Dividends Per Share of Common Stock</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
0.52 </U></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
0.52 </U></TD>
</TR>
</CENTER></P>
<P ALIGN="RIGHT">"UNAUDITED"</P>
<P ALIGN="CENTER">CTG RESOURCES, INC.</P>
<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF INCOME </P>
<I><P ALIGN="CENTER">(Dollars in thousands except for per share data)</P></I>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=573>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="40%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">Twelve Months Ended</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="40%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="CENTER">
March 31,
</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">2000 </B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">1999 </B></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P>Operating Revenues</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT"> $ 305,599
</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT"> $ 279,616
</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P>Less: Cost of Energy</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
165,041 </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
148,326 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> State
Gross Receipts Tax</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
9,613 </U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
9,309 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P>Operating Margin</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
130,945 </U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
121,981 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P>Operating Expenses:</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> Operations & maintenance expenses</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
56,390 </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
53,289 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> Depreciation</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
20,593 </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
19,911 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> Income taxes</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
17,125 </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
12,163 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> Other taxes</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
7,487 </U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
7,422 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
101,595 </U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
92,785 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P>Operating Income</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
29,350 </U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
29,196 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P>Other Income/(Deductions):</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> Allowance for equity funds used</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> during construction</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
75 </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
44 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> Equity in partnership earnings</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
2,387 </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
2,662 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> Merger Costs</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
(3,661)</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
-
</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> Other income</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
2,373 </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
1,481 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> Income Taxes</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
(890)</U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
(1,530)</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
284 </U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
2,657 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P>Income Before Interest Charges</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
29,634 </U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
31,853 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P>Interest and Debt Expense</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
15,655 </U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
16,575 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P>Net Income</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
13,979 </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">
15,278 </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P>Less-Dividends on Preferred Stock</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
60 </U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
61 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P>Net Income Applicable to Common Stock</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $
13,919 </U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $
15,217 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P>Income Per Average Share of</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> Common Stock:</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> Basic</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $
1.61 </U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $
1.76 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> Diluted</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $
1.61 </U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $
1.75 </U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P>Average Common Shares Outstanding</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> During the Period:</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> Basic</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 8,623,604
</U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 8,650,106
</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> Diluted</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 8,670,592
</U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 8,685,564
</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="20%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P>Dividends Per Share of Common Stock</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $
1.04 </U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $
1.02 </U></TD>
</TR>
</CENTER></P>
<P ALIGN="RIGHT">"UNAUDITED"</P>
<P ALIGN="CENTER">CTG RESOURCES, INC. </P>
<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF CASH FLOWS </P>
<I><P ALIGN="CENTER">(Dollars in Thousands) </P></I>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=562>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P></TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=19>
<P ALIGN="CENTER">Three Months Ended </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=19>
<U><P ALIGN="CENTER">
March 31,
</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="RIGHT">2000 </B></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="RIGHT">1999 </B></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Cash Flows from Operations:</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Net Income</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 12,345 </U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 12,241 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Adjustments to reconcile income to
net cash:</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Depreciation and amortization
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
5,504 </TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
5,253 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Provision for uncollectible
accounts</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
1,994 </TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
2,357 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Deferred income taxes, net
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
4,257 </TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
5,259 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Equity in partnership
earnings</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
(824)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
(560)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Change in assets and liabilities:</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Accounts receivable</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (17,555)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (15,010)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Accrued utility revenue</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
6,428 </TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
7,266 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Inventories</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
9,503 </TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
7,575 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Purchased gas costs</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
6,915 </TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
8,888 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Prepaid expenses</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
(303)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
564 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Accounts payable and
accrued expenses</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 11,349
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
7,480 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Other assets/liabilities</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
4,832 </U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
2,424 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Total adjustments</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 32,100
</U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 31,496
</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Net cash provided by operations</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 44,445
</U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 43,737
</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P>Cash Flows for Investing Activities:</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Capital expenditures</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (3,926)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (5,349)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Other, net</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
(790)</U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
(131)</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Net cash used in investing
activities</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> (4,716)</U>
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> (5,480)</U>
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P>Cash Flows from Financing Activities:</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Dividends paid</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (2,264)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (2,265)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Other stock activity, net</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
(4)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
1 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Issuance of long-term debt</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
4,300 </TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
- </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Principal retired on
long-term debt</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
(12)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
(11)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Short-term debt</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> (1,800)</U>
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> (15,000)</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Net cash provided by/(used in)
financing activities</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
220 </U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> (17,275)</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P>Increase in Cash and Cash Equivalents</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 39,949
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 20,982
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P>Cash and Cash Equivalents at Beginning of
Period</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
1,645 </U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
981 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P>Cash and Cash Equivalents at End of Period
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 41,594 </U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 21,963 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="84%" VALIGN="TOP" COLSPAN=2 HEIGHT=19>
<P>Supplemental Disclosures of Cash Flow Information
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P>Cash Paid During the Period for:</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Interest (net of amount capitalized)
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 3,669
</U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
988 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Income taxes</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
320 </U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $
500 </U></TD>
</TR>
</CENTER></P>
<P ALIGN="RIGHT"> </P>
<P ALIGN="RIGHT">"UNAUDITED"</P>
<P ALIGN="CENTER">CTG RESOURCES, INC. </P>
<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF CASH FLOWS </P>
<P ALIGN="CENTER">(<I>Dollars in Thousands</I>) </P>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=562>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">Six Months Ended</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="CENTER">
March 31,
</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">2000 </B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">1999 </B></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Cash Flows from Operations:</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Net Income</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $ 18,288 </U></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $ 17,933 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Adjustments to reconcile net income
to net cash:</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Depreciation and amortization
</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> 10,719
</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> 10,423
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Provision for uncollectible
accounts</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">
3,126 </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">
3,693 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Deferred income taxes, net
</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">
5,401 </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">
8,261 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Equity in partnership
earnings</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> (1,353)</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> (1,054)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Change in assets and liabilities:</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Accounts receivable</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> (28,741)</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> (27,831)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Accrued utility revenue</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> (8,222)</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> (6,837)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Inventories</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> 11,090
</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">
6,217 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Purchased gas costs</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">
6,221 </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> 11,307
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Prepaid expenses</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">
2,096 </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">
6,528 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Accounts payable and
accrued expenses</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> 13,169
</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">
4,349 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Other assets/liabilities</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
6,605 </U></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
4,067 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Total adjustments</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 20,111
</U></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 19,123
</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Net cash provided by operations</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 38,399
</U></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 37,056
</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P>Cash Flows for Investing Activities:</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Capital expenditures</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> (7,106)</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> (10,762)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Cash distributions received from
investments</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">
731 </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">
974 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Other, net</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
(768)</U></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
748 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Net cash used in investing
activities</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> (7,143)</U>
</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> (9,040)</U>
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P>Cash Flows from Financing Activities:</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Dividends paid</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> (4,527)</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> (4,496)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Other stock activity, net</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">
(8)</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">
1 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Issuance of long-term debt</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">
4,300 </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> 35,000
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Principal retired on
long-term debt</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> (4,524)</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> (5,022)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Short-term debt</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
- </U></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> (32,800)</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Net cash used in financing
activities</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> (4,759)</U>
</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> (7,317)</U>
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P>Increase in Cash and Cash Equivalents</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> 26,497
</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> 20,699
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P>Cash and Cash Equivalents at Beginning of
Period</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 15,097
</U></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT">
1,264 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P>Cash and Cash Equivalents at End of Period
</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $ 41,594 </U></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $ 21,963 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="84%" VALIGN="TOP" COLSPAN=2>
<P>Supplemental Disclosures of Cash Flow Information:
</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P>Cash Paid During the Period for:</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="17%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Interest (net of amount capitalized)
</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $ 8,058
</U></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $ 7,625
</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP">
<P> Income taxes</TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $ 3,039
</U></TD>
<TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> $
206 </U></TD>
</TR>
</CENTER></P>
<P ALIGN="RIGHT"> </P>
<P ALIGN="RIGHT">"UNAUDITED"</P>
<P ALIGN="CENTER">CTG RESOURCES, INC. </P>
<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF CASH FLOWS </P>
<P ALIGN="CENTER">(<I>Dollars in Thousands</I>) </P>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=562>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P></TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=19>
<P ALIGN="CENTER">Twelve Months Ended</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=19>
<U><P ALIGN="CENTER">
March 31,
</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="RIGHT">2000 </B></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<B><P ALIGN="RIGHT">1999 </B></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Cash Flows from Operations:</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Net Income</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 13,979 </U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 15,279 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Adjustments to reconcile net income
to net cash:</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Depreciation and amortization
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 21,141
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 20,829
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Provision for uncollectible
accounts</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
4,703 </TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
5,354 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Deferred income taxes, net
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
3,248 </TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 10,358
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Equity in partnership
earnings</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (2,387)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (2,662)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Change in assets and liabilities:</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Accounts receivable</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (5,082)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (8,146)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Accrued utility revenue</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
(859)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
1,651 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Inventories</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
1,431 </TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (2,982)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Purchased gas costs</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (3,944)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
2,967 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Prepaid expenses</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
(174)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
361 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Accounts payable and
accrued expenses</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 11,433
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (9,410)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Other assets/liabilities</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
6,363 </U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
6,222 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Total adjustments</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 35,873
</U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 24,542
</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Net cash provided by operations</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 49,852
</U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 39,821
</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P>Cash Flows from Investing Activities:</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Capital expenditures</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (21,336)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (26,016)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Purchase of Cogeneration Assets</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
- </TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (17,067)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Cash distributions received from
investments</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
1,218 </TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
2,199 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Other,net</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
78 </U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
270 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Net cash used in investing
activities</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> (20,040)</U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> (40,614)</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P>Cash Flows from Financing Activities:</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Dividends paid</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (9,054)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (8,796)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Issuance/(repurchase) of common stock,
net</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
- </TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
12 </TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Other stock activity, net</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
(192)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
(2)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Issuance of long-term debt</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">
4,300 </TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 45,600
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Principal retired on
long-term debt</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (5,235)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> (16,287)</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Short-term debt</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
- </U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> (2,000)</U>
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Net cash provided by/(used) in
financing activities</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> (10,181)</U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 18,527
</U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P>Increase in Cash and Cash Equivalents</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 19,631
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT"> 17,734
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P>Cash and Cash Equivalents at Beginning of
Period</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> 21,963
</U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">
4,229 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P>Cash and Cash Equivalents at End of Period
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 41,594 </U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 21,963 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="84%" VALIGN="TOP" COLSPAN=2 HEIGHT=19>
<P>Supplemental Disclosures of Cash Flow Information:
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Cash Paid During the Period for:
</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Interest (net of amount
capitalized)</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 16,470 </U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 15,156 </U></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" HEIGHT=19>
<P> Income taxes</TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 6,489
</U></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT"> $ 4,827
</U></TD>
</TR>
</CENTER></P>
<P ALIGN="RIGHT">"UNAUDITED"</P>
<B><P ALIGN="CENTER">CTG RESOURCES, INC.</P>
<P ALIGN="CENTER">NOTES TO FINANCIAL STATEMENTS</P>
<P ALIGN="CENTER">March 31, 2000</P>
</B><I><P ALIGN="CENTER">(Dollars in Thousands)</P>
</I><B><P>(1) Merger with Energy
East</P><DIR>
<DIR>
</B><P>On June 29, 1999, CTG Resources, Inc. ("the Company" or "CTG") announced
that it had entered into an Agreement and Plan of Merger with Energy East
Corporation, a New York corporation ("Energy East"), and a wholly-owned
subsidiary of Energy East, Oak Merger Co. ("Oak"), pursuant to which CTG will
merge with and into Oak (the "Merger"). CTG's shareholders approved the Merger
on October 18, 1999. The Connecticut Department of Public Utility Control
("DPUC") approved the Merger on January 19, 2000. The Justice Department and the
Federal Trade Commission have taken no action with regard to the "Hart Scott
Rodino" requirements and the waiting period for the Merger has elapsed, thereby
clearing another approval. The only outstanding approval is from the United
States Securities and Exchange Commission, which is expected to be received by
mid-year 2000. The Merger can be completed once this last approval is
received.</P>
<P>Through March 31, 2000, the Company has incurred and expensed merger-related
costs of approximately $3,700. The Company expects to incur additional merger-
related costs estimated at $3,300. These costs will be expensed as they are
incurred.</P>
<P> </P></DIR>
</DIR>
<B><P>(2) Adriaen's Landing</P><DIR>
<DIR>
</B><P>On May 2, 2000, the Connecticut General Assembly enacted legislation
authorizing the construction of a convention center and other facilities in a
development in Hartford known as Adriaen's Landing. The Company's Administrative
and Operation facilities occupy a large portion of this development site. As a
result of the legislation the Company will be required to relocate.</P>
<P>The Company believes that the Adriaen's Landing project will be beneficial to
the Greater Hartford area and provide an opportunity to obtain new customers for
the Company, and has offered to make the capital investments necessary to
provide energy services to such customers. The relocation will have a
significant impact on the Company's business and operations during the
transition. The Company has indicated its willingness to relocate provided that
the relocation is accomplished in a way that will not materially disadvantage
the Company or its customers. The Company is negotiating with the State's
representatives over the terms and conditions under which the Company's
relocation will be achieved. Inasmuch as these discussions are currently
pending, the Company cannot assess the impact of this activity, including any
arrangement pertaining to the funding of relocation and any related land
preparation or possible environmental remediation costs.</P>
<P>The Adriaen's Landing site, including the Company's property, contains
contaminants, some of which originated during the Company's former gas
manufacturing activities. The Company believes that if the development
activities trigger the remediation of contamination on the Company's property,
the cost of the remediation should be regarded as part of the project
development costs. Prior decisions of the DPUC indicate that the costs of
remediating property that is found to have been contaminated by a gas utility's
former gas manufacturing activities are generally recoverable from the utility's
customers.</P></DIR>
</DIR>
<B><P>(3) Long-term Debt</P><DIR>
<DIR>
</B><P>On January 14, 2000, through the Connecticut Development Authority, the
Company issued $4,300 of variable rate Industrial Revenue Demand Bonds
("IRB's"). The IRB's are due in 2030 and were issued to finance the unregulated
district heating and cooling operations expansion which will serve Hartford's
Trinity College/Southside Institutions Neighborhood Alliance ("SINA")
neighborhood revitalization initiative. At the same time, the Company also
arranged for a $4,400 letter of credit with a bank to support these IRB's.</P>
<P> </P></DIR>
</DIR>
<B><P>(4) Short-term Debt</P><DIR>
<DIR>
</B><P>In February 2000, the Company renewed an expiring one-year line of credit
to February 2001. This line of credit varies from $10,000 to $15,000 to meet the
Company's seasonal working capital requirements.</P>
<B><P> </P></DIR>
</DIR>
<P>(5) Legal Proceedings</P><DIR>
<DIR>
</B><P>On February 10, 2000, the Connecticut Department of Consumer Protection
("DCP") issued a Civil Investigative Demand ("Demand") to Connecticut's local
natural gas distribution companies, including CTG's wholly-owned subsidiary, the
Connecticut Natural Gas Corporation ("CNG"). This Demand requested specific
information concerning CNG's interruptible gas markets during the month of
January 2000. CNG's response was filed on February 25, 2000, and there has been
no activity concerning this proceeding since then. The Company cannot predict
the outcome of this matter.</P>
<P> </P></DIR>
</DIR>
<B><P>(6) Segment Information</P><DIR>
<DIR>
</B><P>The Company operates and manages its business in two segments: regulated
gas-related activities and unregulated diversified businesses. Gas-related
activities include the purchase, distribution and sale of natural gas to on-
system residential, commercial and industrial customers and off-system sales.
Diversified businesses provide district heating and cooling services to large
buildings and building complexes in the City of Hartford.</P>
<P>Interim segment information is presented below.</P>
<P> </P></DIR>
</DIR>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=672>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT FACE="Courier New"> </P>
</FONT><FONT SIZE=2><P ALIGN="RIGHT"> </FONT></TD>
<TD WIDTH="88%" VALIGN="TOP" COLSPAN=8>
<B><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended March 31,</B></FONT>
</TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P><HR ALIGN="RIGHT" WIDTH="40%" SIZE=0></P>
<P><HR ALIGN="LEFT" WIDTH="40%" SIZE=0></TD>
<TD WIDTH="44%" VALIGN="TOP" COLSPAN=4>
<B><FONT SIZE=2><P ALIGN="CENTER">2000</B></FONT></TD>
<TD WIDTH="44%" VALIGN="TOP" COLSPAN=4>
<B><FONT SIZE=2><P ALIGN="CENTER">1999</B></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Gas Related<U><BR>
Activities</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Diversified<U><BR>
Operations</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"> Holding<U><BR>
Company </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER"><BR>
TOTAL</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Gas Related<U><BR>
Activities</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Diversified<U><BR>
Operations</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"> Holding<U><BR>
Company </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER"><BR>
TOTAL</U></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P>Revenues:</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P> External <BR>
revenues</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"> <BR>
$ 119,846 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 7,981 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 127,827 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 107,349 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 6,731 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 114,080 </FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P> Intersegment <BR>
revenues</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(1,183)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(223)</U>
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
- </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(1,406)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(923)</U>
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(156)</U>
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
- </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(1,079)</U></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P> Consolidated <BR>
revenues</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 118,663 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 7,758 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 126,421 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 106,426 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 6,575 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 113,001 </U></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P>Consolidated <BR>
Net Income</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 11,808 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 485 </U>
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 37 </U></FONT>
</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 12,330 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 11,657 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 568 </U>
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 12,225 </U></FONT></TD>
</TR>
<P> </P>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=672>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="88%" VALIGN="TOP" COLSPAN=8>
<B><FONT SIZE=2><P ALIGN="CENTER">Six Months Ended March 31,</B></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P><HR ALIGN="RIGHT" WIDTH="40%" SIZE=0></P>
<P><HR ALIGN="LEFT" WIDTH="40%" SIZE=0></TD>
<TD WIDTH="44%" VALIGN="TOP" COLSPAN=4>
<B><FONT SIZE=2><P ALIGN="CENTER">2000</B></FONT></TD>
<TD WIDTH="44%" VALIGN="TOP" COLSPAN=4>
<B><FONT SIZE=2><P ALIGN="CENTER">1999</B></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Gas Related<U><BR>
Activities</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Diversified<U><BR>
Operations</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"> Holding<U><BR>
Company </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER"><BR>
TOTAL</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Gas Related<U><BR>
Activities</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Diversified<U><BR>
Operations</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"> Holding<U><BR>
Company </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER"><BR>
TOTAL</U></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P>Revenues:</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P> External <BR>
revenues</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 201,774 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 14,313 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 216,087 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 185,171 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 11,650 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 196,821 </FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P> Intersegment <BR>
revenues</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(2,060)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(497)</U>
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
- </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(2,557)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(1,690)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(451)</U>
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
- </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(2,141)</U></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P> Consolidated <BR>
revenues</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 199,714 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 13,816 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 213,530 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 183,481 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 11,199 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 194,680 </U></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P>Consolidated <BR>
Net Income</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 18,274 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 441 </U>
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ (457)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 18,258 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 17,454 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 448 </U>
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 17,902 </U></FONT></TD>
</TR>
<P> </P>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=672>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="88%" VALIGN="TOP" COLSPAN=8>
<B><FONT SIZE=2><P ALIGN="CENTER">Twelve Months Ended March 31,</B></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P><HR ALIGN="RIGHT" WIDTH="40%" SIZE=0></P>
<P><HR ALIGN="LEFT" WIDTH="40%" SIZE=0></TD>
<TD WIDTH="44%" VALIGN="TOP" COLSPAN=4>
<B><FONT SIZE=2><P ALIGN="CENTER">2000</B></FONT></TD>
<TD WIDTH="44%" VALIGN="TOP" COLSPAN=4>
<B><FONT SIZE=2><P ALIGN="CENTER">1999</B></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Gas Related<U><BR>
Activities</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Diversified<U><BR>
Operations</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"> Holding<U><BR>
Company </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER"><BR>
TOTAL</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Gas Related<U><BR>
Activities</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Diversified<U><BR>
Operations</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"> Holding<U><BR>
Company </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER"><BR>
TOTAL</U></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P>Revenues:</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P> External <BR>
revenues</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 282,516 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 28,221 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 310,737 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 262,590 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 21,921 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 284,511 </FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P> Intersegment <BR>
revenues</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(4,223)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(915)</U>
</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
- </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(5,138)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(3,737)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(1,158)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
- </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
(4,895)</U></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P> Consolidated <BR>
revenues</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 278,293 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 27,306 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 305,599 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 258,853 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 20,763 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 279,616 </U></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P>Consolidated <BR>
Net Income</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 15,358 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 1,953 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ (3,392)</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 13,919 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 14,082 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 1,135 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ -
</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
$ 15,217 </U></FONT></TD>
</TR>
<P> </P>
<P> </P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=2 WIDTH=678>
<TR><TD WIDTH="14%" VALIGN="TOP" HEIGHT=16>
<P></TD>
<TD WIDTH="86%" VALIGN="TOP" COLSPAN=10 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">at March 31,</B></FONT></TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP" COLSPAN=2>
<P><HR ALIGN="RIGHT" WIDTH="40%" SIZE=0></P>
<P><HR ALIGN="LEFT" WIDTH="40%" SIZE=0></TD>
<TD WIDTH="42%" VALIGN="TOP" COLSPAN=5>
<B><FONT SIZE=2><P ALIGN="CENTER">2000</B></FONT></TD>
<TD WIDTH="39%" VALIGN="TOP" COLSPAN=4>
<B><FONT SIZE=2><P ALIGN="CENTER">1999</B></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">Gas Related<U><BR>
Activities</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Diversified<U><BR>
Operations</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"> Holding<U><BR>
Company </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER"><BR>
TOTAL</U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="CENTER">Gas Related<U><BR>
Activities</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">Diversified<U><BR>
Operations</U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"> Holding<U><BR>
Company </U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER"><BR>
TOTAL</U></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P>Total Assets</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=2><P ALIGN="RIGHT"> $ 417,448 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"> $ 87,264 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"> $
- </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"> $ 504,712 </U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=2><P ALIGN="RIGHT"> $ 414,458 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"> $ 78,084 </U></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"> $
- </U></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"> $ 492,542 </U></FONT></TD>
</TR>
<P> </P>
<P> </P>
<B><P>(7) Reclassifications</P><DIR>
<DIR>
</B><P>Certain prior year amounts have been reclassified to conform with current
year classifications.</P></DIR>
</DIR>
<P ALIGN="RIGHT">"UNAUDITED"</P>
<B><P ALIGN="CENTER">CTG RESOURCES, INC.</P>
<P ALIGN="CENTER">MANAGEMENT'S DISCUSSION AND ANALYSIS</P>
<P ALIGN="CENTER">MARCH 31, 2000</P>
</B><I><P ALIGN="CENTER">(Dollars in Thousands Except for Per Share Amounts)</P>
</I><P>CTG Resources, Inc. ("the Company" or "CTG") is a holding company and
parent of the Connecticut Natural Gas Corporation ("CNG") and The Energy
Network, Inc. ("TEN"). CNG is an energy provider engaged in the regulated
distribution, sale and transportation of natural gas. TEN holds and operates,
through divisions or wholly-owned subsidiaries, CTG's unregulated, diversified
businesses, which are primarily engaged in district heating and cooling. TEN
also holds the Company's equity investments in the Iroquois Gas Transmission
System ("Iroquois") and the Downtown Cogeneration Associates partnerships.</P>
<P>On June 29, 1999, CTG announced that it had entered into an Agreement and
Plan of Merger with Energy East Corporation, a New York corporation ("Energy
East"), and a wholly-owned subsidiary of Energy East, Oak Merger Co. ("Oak"),
pursuant to which CTG will merge with and into Oak (the "Merger"). CTG's
shareholders approved the Merger on October 18, 1999. The Connecticut Department
of Public Utility Control ("DPUC") approved the Merger on January 19, 2000. The
Justice Department and the Federal Trade Commission have taken no action with
regard to the "Hart Scott Rodino" requirements and the waiting period for the
Merger has elapsed, thereby clearing another approval. The only outstanding
approval is from the United States Securities and Exchange Commission, which is
expected by mid-year 2000. The Merger can be completed once this last approval
is received.</P>
<B><P> </P>
<P>RESULTS OF OPERATIONS</P>
</B><P>CTG's consolidated earnings per share were $1.43 for the quarter, $2.12
for the six months and $1.61 for the twelve months ended March 31, 2000. The six
months ended include a charge of $(.05) and the twelve months ended include a
charge of $(.39) per share, net of income taxes, for merger-related costs.
Without these merger-related expenses earnings per share would be $2.17 for the
six months and $2.00 for the twelve months ended March 31, 2000. These compare
to earnings per share of $1.41 for the quarter, $2.07 for the six months and
$1.76 for the twelve months ended March 31, 1999.</P>
<P>Weather has been about the same in each of the two fiscal years presented.
Yet, setting aside the impact of merger-related costs, the Company has been able
to realize an increase in earnings from one year to the next. The higher
earnings are primarily the result of additional heating customers and higher
interruptible margins.</P>
<B><I><P>Operating Margin</P>
</B></I><P>The following table presents the changes in gas revenues, gas
operating margin, heating degree days (a measure of weather) and gas deliveries
for all periods reported in the statements of income:</P>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=676>
<TR><TD WIDTH="32%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">Three Months<BR>
Ended<BR>
<U> March
31, </U></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">Six Months<BR>
Ended<BR>
<U> March
31, </U></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">Twelve Months<BR>
Ended<BR>
<U> March
31, </U></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP"> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><P ALIGN="CENTER">2000</B></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><P ALIGN="CENTER">1999</B></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><P ALIGN="CENTER">2000</B></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><P ALIGN="CENTER">1999</B></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><P ALIGN="CENTER">2000</B></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><P ALIGN="CENTER">1999</B></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP">
<P>Consolidated Gas Revenues</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$118,663 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$106,426 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$199,714 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$183,481 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$278,293 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$258,853 </U></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP">
<P>Gas Operating Margin</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$ 47,782 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$ 45,665 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$ 80,489 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$ 77,381 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$113,467 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$109,198 </U></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP">
<P>Heating Degree Days<BR>
(30-Year Normal - 6,018)</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
2,885 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
2,916 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
4,806 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
4,846 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
5,517 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
5,537 </U></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP">
<P>Commodity and Transportation<BR>
Volumes (mmcf)</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P> </TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP">
<P>	Firm Gas Sales</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT"> 9,496 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT"> 9,504 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">15,293 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">15,457 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">19,430 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">19,984 </TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP">
<P>	Interruptible Gas Sales</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">2,654 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">2,564 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">5,320 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">5,146 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">9,154 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">8,466 </TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP">
<P>	Off-System Gas Sales</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT"> 4,531 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT"> 3,993 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT"> 8,098 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT"> 7,899 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">14,326 </TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">13,802 </TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP">
<P>	Transportation Services</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 1,896 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 1,832 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 3,636 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 3,113 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 6,082 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 5,245 </U></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP">
<P>		Total</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 18,577 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 17,893 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 32,347 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 31,615 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 48,992 </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"> 47,497 </U></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP">
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<P>Gas operating margin is equal to gas revenues less the cost of gas and
Connecticut gross revenues tax. A higher operating margin was earned throughout
fiscal 2000, as compared to the same periods of fiscal 1999. The weather impact
for fiscal 2000 was basically the same as for fiscal 1999. The higher operating
margin is the result of additional heating customers and higher per-unit
interruptible margins generated by higher oil-price related tariffs.</P>
<P>The Company continues to add a considerable number of firm heating customers
from year to year. Firm sales historically follow variations in winter weather.
Some multi-unit housing, commercial and industrial customers have migrated to
firm transportation rates. This should not impact operating margin, because
transportation tariffs are designed to earn the same margin as the sales and
delivery of natural gas.</P>
<B><I><P>Weather Stabilization Program</P>
</B></I><P>At the beginning of the fiscal year, CNG purchased an insurance
product for the fiscal 2000 winter heating season (November through April) that
is designed to moderate some of the effects of abnormal winter weather on
earnings. This program helps to offset lost margins and thus provides the
Company with additional earnings in the event of significantly warmer winter
weather in return for an insurance premium which increases in the event of
significantly colder winter weather. In the third quarter of fiscal 2000, the
Company will record the net benefit of this insurance product for the fiscal
2000 winter heating season. The Company recorded a net benefit of approximately
$577, or $.07 per share, in fiscal 1999 from a similar program covering November
to March.</P>
<B><I><P>Operations and Maintenance Expenses</P>
</B></I><P>Consolidated Operating and Maintenance ("O&M") expenses are
higher in all periods of fiscal 2000, as compared to fiscal 1999. This is
primarily a reflection of additional fiscal 2000 expenses related to TEN's
expanded district heating and cooling ("DHC") operations (See "Earnings from
Diversified Businesses," below.). The second significant factor affecting fiscal
2000 is the timing of the benefit payment from the regulated operations' weather
stabilization insurance policy. In fiscal 1999, this benefit was recorded as a
reduction in operating expenses in March 1999. In fiscal 2000, the insurance
policy period was extended through April 2000, with a significantly higher
premium that is being charged to operating expenses over the November to April
period. The fiscal 2000 benefit will be recorded in the third quarter of the
fiscal year. Setting aside these two factors, O&M expenses are higher for
the quarter and lower for the six and twelve months ended March 31, 2000 as
compared to the same periods ended March 31, 1999.</P>
<P>Employee benefits and pension-related expenses are higher for the quarter and
fiscal year-to-date but lower for the twelve months ended March 31, 2000. Labor
expense is also higher for the second quarter of fiscal 2000 but lower for the
six and twelve months ended March 31, 2000. Throughout fiscal 2000, benefits to
O&M expenses have also been recorded from lower computer-related services,
regulatory expenses, bad debt expenses and outside purchased services. </P>
<P>Compensation expenses reflect year-to-year timing in the recording of charges
related to incentive plans. Employee Benefits costs reflect the level of medical
claims and changes in premiums. Pension costs reflect a reduction in expenses
resulting from favorable plan performance and changes in actuarial assumptions
in the plans. Computer-related costs reflect changes to equipment lease
contracts. Variations in levels of bad debt expenses typically relate to
customers' natural gas bills and actual collection levels. Changes in levels of
expenses for outside services primarily reflect costs incurred for legal and
consulting services.</P>
<B><I><P>Income Taxes</P>
</B></I><P>Overall the Company's effective income tax rate is higher in fiscal
2000 as compared to fiscal 1999. Non-deductible merger-related costs are the
primary reason for the higher rate.</P>
<B><I><P>Other Income/(Deductions)</P>
</B></I><P>Merger-related costs of $457 for the six months and $3,661 for the
twelve months ended March 31, 2000 appear as a separate line item in this
section of the statements of income. Income tax benefits of $269 related to some
of these costs were recorded in fiscal 1999 and are included in the income taxes
caption in Other Income/(Deductions). The Company expects to incur additional
merger-related costs estimated at $3,300. These costs will be expensed as they
are incurred.</P>
<P>Higher other income has been recorded in all periods of fiscal 2000, as
compared to the same periods of fiscal 1999. Interest income related to the
temporary investment of available cash balances is the principal reason for this
increase in other income.</P>
<B><I><P>Earnings from Diversified Businesses</P>
</B></I><P>Earnings per share for TEN are $.06 for the quarter, $.05 for the six
months and $.23 for the twelve months ended March 31, 2000. These compare to
earnings per share of $.07 for the quarter, $.05 for the six months and $.13 for
twelve months ended March 31, 1999. </P>
<P>TEN's fiscal 2000 earnings are primarily impacted by new or expanded
operations. Results for all periods ended March 31, 2000 reflect the full impact
of new sales of electricity and additional sales of steam from TEN's new
cogeneration facility at Hartford Hospital, which came on line in December 1998.
In the quarter ended December 31, 1999, TEN also began to record costs and
earnings for providing temporary heating facilities to the Hartford's Trinity
College/Southside Institutions Neighborhood Alliance ("SINA") construction site.
Earnings also reflect higher steam and hot water sales for heating, and higher
chilled water sales for cooling. However, the benefits to earnings from the
higher volumes of sales are partially offset by higher DHC energy and production
costs, primarily because of higher fuel prices. Costs related to new business
development activities also partially offset the net benefits to earnings
realized from the sale of DHC services.</P>
<P>TEN's earnings from its equity interest in two partnerships are higher in the
three and six months ended March 31, 2000 and lower in the twelve months ended
March 31, 2000 as compared to 1999. The majority of these earnings are from
Iroquois, and in August 1998 Iroquois' approved tariffs allowed by the Federal
Energy Regulatory Commission were reduced. This is the primary reason for the
lower twelve months ended earnings. </P>
<P> </P>
<B><P>MATERIAL CHANGES IN FINANCIAL CONDITION</P>
<I><P>Cash Flows</P>
</B></I><P>Cash flows from operations are generally strong during the second
quarter of the fiscal year. The Company makes most of its sales for the fiscal
year during the winter heating season, and March is usually the last full month
in this season. By the end of this quarter, the Company usually has little or no
short-term borrowings outstanding and often has cash invested in short-term
instruments.</P>
<P>In all periods ended March 31, 2000, cash flows from operations provided
working capital and funded dividends, construction expenditures and the
retirement of long-term debt.</P>
<B><I><P>Financing Activities</P>
</B></I><P>On January 14, 2000, through the Connecticut Development Authority,
the Company issued $4,300 of variable rate Industrial Revenue Demand Bonds
("IRB's"). The IRB's are due in 2030 and were issued to finance the unregulated
DHC operations expansion, which will serve Hartford's SINA neighborhood
revitalization initiative. At the same time, the Company also arranged for a
$4,400 letter of credit with a bank to support these IRB's.</P>
<P>In February 2000, the Company renewed an expiring one-year line of credit to
February 2001. This line of credit varies from $10,000 to $15,000 to meet the
Company's seasonal working capital requirements.</P>
<B><I><P>Regulatory Proceedings</P>
</B></I><P>CNG currently has pending before the DPUC an application for a rate
increase of $15,700 or 8.37%. On April 20, 2000, the DPUC issued a draft
decision which proposed a $2,780 reduction in rates. All parties were allowed to
file written comments on the draft decision and to present oral arguments
advocating modifications to the draft decision. On May 17, 2000, the DPUC is
expected to issue a final decision authorizing new rates.</P>
<P>The DPUC divided its review of this case between revenue requirements and
rate design. One element of this rate case was an alternative ratemaking
proposal that would freeze customers' base rates, provide for sharing between
customers and the Company of margins earned over benchmark levels and specify
the terms of the ongoing monitoring of the Company's earnings by the DPUC. </P>
<P>These rate design issues will be addressed as part of the second phase.</P>
<P>New, interim rates, based on the first phase review of CNG's revenue
requirements, are expected to become effective in May 2000. Final rates, to be
determined in the second phase, are expected to become effective in June
2000.</P>
<B><I><P>Legal Proceedings</P>
</B></I><P>On February 10, 2000, the Connecticut Department of Consumer
Protection ("DCP") issued a Civil Investigative Demand ("Demand") to
Connecticut's local natural gas distribution companies, including CNG. This
Demand requested specific information concerning CNG's interruptible gas markets
during the month of January 2000. CNG's response was filed on February 25, 2000,
and there has been no activity concerning this proceeding since then. The
Company cannot predict the outcome of this matter.</P>
<B><I><P>Environmental Matters</P>
</B></I><P>In the ordinary course of business, the Company may incur costs to
remediate environmental contaminants related to natural gas activity. In those
instances the Company expects that the remediation costs will be recoverable in
rates. </P>
<P>In August 1998, the Company received a notice of violation ("NOV") from the
Connecticut Department of Environmental Protection ("DEP") regarding a number of
areas on noncompliance. The Company submitted the required compliance report in
September 1998. In April 1999, the DEP provided the Company with a draft Consent
Order and informed the Company, by letter, that the Company's actions in
response to the NOV were sufficient to correct the violations. The Company
signed a Consent Order resolving the NOV in January 2000. The Consent Order
requires the Company to continue certain activities in accordance with DEP
requirements and to pay a fee of $31.</P>
<B><I><P>Adriaen's Landing</P>
</B></I><P>On May 2, 2000, the Connecticut General Assembly enacted legislation
authorizing the construction of a convention center and other facilities in a
development in Hartford known as Adriaen's Landing. The Company's Administrative
and Operation facilities occupy a large portion of this development site. As a
result of the legislation the Company will be required to relocate.</P>
<P>The Company believes that the Adriaen's Landing project will be beneficial to
the Greater Hartford area and provide an opportunity to obtain new customers for
the Company, and has offered to make the capital investments necessary to
provide energy services to such customers. The relocation will have a
significant impact on the Company's business and operations during the
transition. The Company has indicated its willingness to relocate provided that
the relocation is accomplished in a way that will not materially disadvantage
the Company or its customers. The Company is negotiating with the State's
representatives over the terms and conditions under which the Company's
relocation will be achieved. Inasmuch as these discussions are currently
pending, the Company cannot assess the impact of this activity, including any
arrangement pertaining to the funding of relocation and any related land
preparation or possible environmental remediation costs.</P>
<P>The Adriaen's Landing site, including the Company's property, contains
contaminants, some of which originated during the Company's former gas
manufacturing activities. The Company believes that if the development
activities trigger the remediation of contamination on the Company's property,
the cost of the remediation should be regarded as part of the project
development costs. Prior decisions of the DPUC indicate that the costs of
remediating property that is found to have been contaminated by a gas utility's
former gas manufacturing activities are generally recoverable from the utility's
customers.</P>
<P> </P>
<B><P>YEAR 2000 COMPLIANCE</P>
<I><P>CTG 's Year 2000 Readiness Disclosure </P>
</B></I><P>CTG transitioned into the new millennium with no significant Year
2000 ("Y2K") problems.</P>
<P>CTG has not identified or encountered any known Y2K-related event, trend,
demand, commitment, or uncertainty which would likely have a material effect on
CTG's business, results of operations, liquidity, capital resources or financial
condition.</P>
<P>CTG does not foresee incurring significant future incremental costs, nor has
it incurred significant costs, relating to the Y2K issue. There have been no
material changes in total costs associated with the Y2K issue during the quarter
ended March 2000.</P>
<P> </P>
<B><P>NEW ACCOUNTING STANDARD</P>
</B><P>In June 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for
Derivative Instruments and Hedging Activities." This statement establishes
accounting and reporting standards for derivative instruments and for hedging
activities. In June 1999, the FASB issued SFAS No. 137, "Accounting for
Derivative Instruments and Hedging Activities - Deferral of the Effective Date
of FASB Statement No. 133," to amend the implementation date of SFAS No. 133.
Adoption of SFAS No. 133 is now required for the Company beginning with the
first quarter of fiscal 2001. The Company is aware of certain provisions which
may impact the natural gas industry and has established a task force to review
these provisions in detail against its existing accounting practices and
disclosures. At this time the Company cannot predict what impact, if any, the
adoption of SFAS No. 133 will have on its financial condition or results of
operations.</P>
<B><P>FORWARD LOOKING INFORMATION</P>
</B><P>This report and other Company reports, including filings with the
Securities and Exchange Commission, press releases and oral statements, contain
forward looking statements. Such statements include but are not limited to
disclosures about the Company's merger with Energy East, Adriaen's Landing,
future operating margin, the Weather Stabilization Program, changes in operating
and maintenance expenses, Year 2000 Compliance, cash flows, SFAS No. 133,
environmental matters and compliance and regulatory proceedings.</P>
<P>Forward looking statements are made based upon management's expectations and
beliefs concerning future developments and their potential effect upon the
Company. The Company cautions that, while it believes such statements to be
reasonable and makes them in good faith, actual results almost always vary from
expectations, and the differences between assumed facts or basis and actual
results can be material, depending upon the circumstances. Investors should be
aware of important factors that could have a material impact on future results.
These factors include, but are not limited to, weather, the regulatory
environment, legislative and judicial developments which affect the Company or
significant groups of its customers, economic conditions in the Company's
service territory, fluctuations in energy-related commodity prices, customer
conservation efforts, financial market conditions, interest rate fluctuations,
customers' preferences, unforeseen competition, federal regulatory approvals,
and other uncertainties, all of which are difficult to predict and beyond the
control of the Company.</P>
<B><P ALIGN="CENTER">PART II - OTHER INFORMATION</P>
<U><P>Item 6. Exhibits and Reports on Form 8-K</P>
</B></U><P>(a) Exhibits</P>
<P>	</P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=4 WIDTH=696>
<TR><TD WIDTH="10%" VALIGN="TOP">
<P>99(1)</TD>
<TD WIDTH="90%" VALIGN="TOP">
<P>Exhibit Index</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<P>10(154)</TD>
<TD WIDTH="90%" VALIGN="TOP">
<P>Amended and Restated 364-Day Revolving Credit Note, dated September 30, 1999,
between The Energy Network, Inc. and Fleet National Bank</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<P>10(155)</TD>
<TD WIDTH="90%" VALIGN="TOP">
<P>Revolving Credit Agreement and Promissory Note, dated February 14, 2000,
between the Connecticut Natural Gas Corporation and Fleet National Bank</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<P>10(156)</TD>
<TD WIDTH="90%" VALIGN="TOP">
<P>Irrevocable Direct Pay Letter of Credit, dated January 14, 2000, between The
Energy Network, Inc. and Fleet National Bank</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<P>10(157)</TD>
<TD WIDTH="90%" VALIGN="TOP">
<P>Reimbursement Agreement, dated January 1, 2000, between The Energy Network,
Inc. and Fleet National Bank</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<P>10(158)</TD>
<TD WIDTH="90%" VALIGN="TOP">
<P>Loan Agreement, dated January 1, 2000, between the Connecticut Development
Authority and The Energy Network, Inc.</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<P>27</TD>
<TD WIDTH="90%" VALIGN="TOP" HEIGHT=18>
<P>Financial Data Schedule</TD>
</TR>
<DIR>
<DIR>
<P>(b) There were no reports filed
under Form 8-K in the quarter ending March 31, 2000.</P></DIR>
</DIR>
<P ALIGN="CENTER">SIGNATURE</P>
<P> Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly authorized.</P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=710>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P> </TD>
<TD WIDTH="50%" VALIGN="TOP">
<P>CTG RESOURCES, INC.<BR>
<BR>
<BR>
</TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P>Date: <U> May 15, 2000 </U></TD>
<TD WIDTH="50%" VALIGN="TOP">
<P>By: <U> S/ Andrew H.
Johnson &
nbsp; &nb
sp; </U><BR>
(Andrew
H. Johnson)<BR>
Treasurer and Chief Accounting
Officer<BR>
(On behalf of the registrant and as
<BR>
Chief Accounting Officer)</TD>
</TR>
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