<PAGE>

                                                                     EXHIBIT 4.7

                         UTILITY MONEY POOL AGREEMENT


          This Utility Money Pool  Agreement (the  "Agreement"),  dated as of
______, 2000, is made and entered into by and among KeySpan Corporation
("KeySpan"),  a New York  corporation and a registered  holding company under
the Public Utility Holding Company Act of 1935, as amended (the "Act"),  KeySpan
Corporate Services LLC  ("KCS"),  a  New  York  limited  liability  corporation
and  a  nonutility subsidiary of KeySpan (in its role as  administrator  of the
money pool and as a participant in the money pool), and each of the utility
subsidiaries whose name appears on the  signature  pages  hereof (each a "Party"
and  collectively,  the "Parties").

                                  WITNESSETH:

          WHEREAS,  the Parties  desire to establish a Money Pool (the "Utility
Money Pool") to  coordinate  and  provide  for  certain of their  short-term
cash and working capital requirements; and

          WHEREAS,  the utility  subsidiaries  that will  participate  in the
Utility Money Pool (each a "Subsidiary" and collectively,  the "Subsidiaries")
will from time to time have need to borrow funds on a short-term basis, and
certain of the Parties  will from time to time have  funds  available  to loan
on a  short-term basis;

          NOW, THEREFORE, in consideration of the premises and the mutual
agreements, covenants and provisions contained herein, the Parties hereto agree
as follows:

                                   ARTICLE I
                         CONTRIBUTIONS AND BORROWINGS

Section 1.01 - Contributions to Utility Money Pool.

          Subject to  applicable  regulatory  restrictions,  if any,  each Party
will determine  each day, on the basis of cash flow  projections  and other
relevant factors,  in such Party's sole discretion,  the amount of funds it has
available for  contribution  to the Utility Money Pool, and will  contribute
such funds to the Utility  Money Pool.  The  determination  of whether a Party
at any time has surplus  funds to lend to the  Utility  Money  Pool or shall
lend  funds to the Utility  Money  Pool will be made by such  Party's  chief
financial  officer or treasurer,  or by a designee thereof,  on the basis of
cash flow projections and other relevant factors, in such Party's sole
discretion.
<PAGE>

          Each Party may withdraw any of its funds at any time upon notice to
KCS as administrative agent of the Utility Money Pool.

Section 1.02 - Rights to Borrow.

          Subject to the provisions of Section 1.04(c) of this Agreement, short-
term borrowing  needs of the Parties,  with the exception of KeySpan, will be
met by funds in the  Utility  Money Pool to the extent such funds are
available.  Each Party (other than KeySpan)  shall have the right to make
short-term  borrowing from the Utility Money Pool from time to time,  subject to
the  availability  of funds and the  limitations and conditions set forth herein
and in the applicable orders of the Securities and Exchange Commission ("SEC").
Each Party (other than KeySpan) may request  loans from the Utility Money Pool
from time to time during the period from the date hereof until this  Agreement
is  terminated  by written agreement of the Parties;  provided,  however,  that
the aggregate amount of all loans requested by any Party hereunder shall not
exceed the applicable borrowing limits  set  forth  in  applicable  orders  of
the  SEC  and  other  regulatory authorities,  resolutions  of such  Party's
Board of  Directors,  such  Party's governing corporate documents,  and
agreements binding upon such Party. No loans through the Utility  Money Pool
will be made to, and no  borrowings  through the Utility Money Pool will be made
by, KeySpan.

Section 1.03 - Source of Funds.

          (a)  Funds  will be  available  through  the  Utility  Money  Pool
from the following sources for use by the Parties from time to time: (1) surplus
funds in the treasuries of Parties other than KeySpan,  (2) surplus funds in the
treasury of KeySpan,  and (3)  proceeds  from bank  borrowings  by Parties or
the sale of commercial  paper by KeySpan and each other Party  ("External
Funds"),  in each case to the extent  permitted by applicable  laws and
regulatory  orders.  Funds will be made  available  from  such  sources  in such
other  order  as KCS,  as administrator  of the Utility Money Pool,  may
determine  will result in a lower cost of borrowing to companies borrowing from
the Utility Money Pool, consistent with the  individual  borrowing  needs and
financial  standing  of the  Parties providing funds to the Utility Money Pool.

          (b)  Borrowing  Parties will borrow pro rata from each lending Party
in the proportion that the total amount loaned by such lending Party bears to
the total amount then loaned through the Utility Money Pool. On any day when
more than one fund source  (e.g.,  surplus  treasury  funds of KeySpan and other
Utility Money Pool participants  ("Internal Funds") and External Funds),  with
different rates of  interest,  is used to fund  loans  through  the  Utility
Money  Pool,  each borrowing  Party  will  borrow  pro  rata  from  each  fund
source  in the same proportion  that the amount of funds  provided by that fund
source  bears to the total amount of short-term funds available to the Utility
Money Pool.

          (c)  Borrowings  will be made by Boston Gas,  Colonial  Gas,  Essex
Gas and EnergyNorth  Natural  Gas to finance  their fuel  purchases  through the
Utility Money Pool  utilizing  External  Funds as  permitted by their
respective  state regulatory  orders.  Borrowings  will  be for a  calendar
month  at the  actual applicable  interest rate attributable to such  External
Funds  and  will be  repaid  monthly  upon  which  time a new borrowing amount
will be determined as required.

                                      -2-
<PAGE>

Section 1.04 - Authorization.

          (a) Each loan shall be  authorized by the lending  Party's chief
financial officer or treasurer, or by a designee thereof.

          (b) KCS, as  administrator  of the Utility  Money Pool,  will  provide
each Party with periodic  activity and cash  accounting  reports that include,
among other things,  reports of cash activity,  the daily balance of loans
outstanding and the calculation of interest charged.

          (c) All  borrowings  from the Utility Money Pool shall be authorized
by the borrowing  Party's  chief  financial  officer  or  treasurer,  or by a
designee thereof.  No Party shall be  required to effect a borrowing  through
the Utility Money Pool if such Party  determines  that it can (and is authorized
to) effect such  borrowing at lower cost directly  from banks,  through the sale
of its own commercial paper, or otherwise.

Section 1.05 - Interest.

          The daily outstanding balance of all loans to any Subsidiary shall
accrue interest as follows:

          (a) If only Internal  Funds comprise the daily  outstanding  balance
of all loans outstanding  during a calendar month, the interest rate applicable
to such daily  balances shall be the rates for high-grade  unsecured  30-day
commercial paper of major  corporations  sold through  dealers as quoted in The
Wall Street Journal (the "Average Composite").

          (b) If only External  Funds comprise the daily  outstanding  balance
of all loans outstanding  during a calendar month, the interest rate applicable
to such daily outstanding balance shall be the lender's cost for such External
Funds or, if more than one Party had made available  External Funds at any time
during the month,  the  applicable  interest rate shall be a composite  rate,
equal to the weighted  average  of the costs  incurred  by the  respective
Parties  for such External  Funds.  The interest rate  applicable to External
Funds borrowed by a Subsidiary  for fuel  purchases  shall be the actual
applicable  interest  rate attributable to such External Funds for a calendar
month.

          (c) In cases where the daily outstanding balances of all loans
outstanding at any time during the month include both Internal Funds and
External Funds, the interest rate applicable to the daily outstanding balances
for the month shall be equal to the weighted average of the (i) cost of all
Internal Funds contributed by Parties, as determined pursuant to Section 1.05(a)
of this Agreement, and (ii) the cost of all such External Funds, as determined
pursuant to Section 1.05(b) of this Agreement.

                                      -3-
<PAGE>

          (d) The  interest  rate  applicable  to Loans made by a  Subsidiary
to the Utility  Money Pool under  Section 1.01 of this  Agreement  shall be the
Average Composite as determined pursuant to Section 1.05(a) of this Agreement.

Section 1.06 - Certain Costs.

          The cost of compensating balances and fees paid to banks to maintain
credit lines and accounts by Parties  lending  External Funds to the Utility
Money Pool shall  initially be paid by the Party  maintaining  such line. A
portion of such costs shall be retroactively allocated every month to the
Subsidiaries borrowing such  External  Funds  through the  Utility  Money Pool
in  proportion  to their respective daily outstanding borrowings of such
External Funds.

Section 1.07 - Repayment.

          Each  Subsidiary  receiving  a loan from the Utility  Money Pool
hereunder shall  repay the  principal  amount of such  loan,  together  with all
interest accrued thereon, on demand and in any event within 365 days of the date
on which such loan was made. All loans made through the Utility Money Pool may
be prepaid by the borrower without premium or penalty.

Section 1.08 - Form of Loans to Subsidiaries.

          Loans to the  Subsidiaries  from the  Utility  Money  Pool shall be
made as open-account  advances,  pursuant  to the terms of this  agreement.  A
separate promissory note will not be required for each individual transaction.
Instead, a  promissory note evidencing the terms of the transactions  shall be
signed by the Parties to the transaction.  Any such note shall: (a) be dated as
of the date of the initial  borrowing;  (b) mature on demand or on a date agreed
by the Parties to the  transaction,  but in any event not later than one year
after the date of the applicable borrowing;  and (c) be repayable in whole at
any time or in part from time to time, without premium or penalty.


                                  ARTICLE II
                        OPERATION OF UTILITY MONEY POOL

Section 2.01 - Operation.

          Operation of the Utility Money Pool, including record keeping and
coordination of loans, will be handled by KCS under the authority of the
appropriate officers of the Parties. KCS shall be responsible for the
determination of all applicable interest rates and charges to be applied to
advances outstanding at any time hereunder, shall maintain records of all
advances, interest charges and accruals and interest and principal payments for
purposes hereof, and shall prepare periodic reports thereof for the Parties.
KCS will administer the Utility Money Pool on an "at cost" basis. Separate
records shall be kept by KCS for the Utility Money Pool established by this
Agreement and any other money pool administered by KCS.

                                      -4-
<PAGE>

Section 2.02 - Investment of Surplus Funds in the Utility Money Pool.

          Funds not required for the Utility  Money Pool loans (with the
exception of funds required to satisfy the Utility Money Pool's liquidity
requirements) will ordinarily  be invested in one or more  short-term
investments,  including  (i) interest-bearing  accounts with banks;
(ii) obligations issued or guaranteed by the U.S. government and/or its agencies
and instrumentalities, including obligations under repurchase agreements;
(iii) obligations issued or guaranteed by any state or political subdivision
thereof, provided that such obligations are rated not less than "A" by a
nationally recognized rating agency; (iv) commercial paper rated not less than
"A-1" by S&P or "P-1" by Moody's, or their equivalent by a nationally recognized
rating agency; (v) money market funds; (vi) bank certificates of deposit;
(vii) Eurodollar funds; and (viii) such other investments as are permitted by
Section 9(c) of the Act and Rule 40 thereunder.

Section 2.03 - Allocation of Interest Income and Investment Earnings.

          The interest income and other investment income earned by the Utility
Money Pool on loans and  investment  of  surplus  funds  will be  allocated
among the Parties in accordance with the proportion each Party's  contribution
of funds in the Utility  Money Pool bears to the total amount of funds in the
Utility  Money Pool and the cost of any External  Funds  provided to the Utility
Money Pool by such Party.  Interest and other investment  earnings will be
computed on a daily basis and settled once per month.

Section 2.04 - Event of Default.

          If any  Subsidiary  shall  generally not pay its debts as such debts
become due, or shall  admit in writing its  inability  to pay its debts
generally,  or shall make a general assignment for the benefit of creditors,  or
any proceeding shall be instituted by or against any Party seeking to adjudicate
it bankrupt or insolvent,  then KCS, on behalf of the Utility Money Pool, may,
by notice to the Subsidiary,  terminate  the Utility Money Pool's  commitment
to the  Subsidiary and/or  declare  the  principal  amount  then  outstanding
of, and the  accrued interest on, the loans and all other  amounts  payable to
the Utility Money Pool by the  Subsidiary  hereunder to be forthwith  due and
payable,  whereupon  such amounts  shall be  immediately  due and  payable
without  presentment,  demand, protest or other  formalities  of any kind,  all
of which are  hereby  expressly waived by each Subsidiary.

                                  ARTICLE III
                                 MISCELLANEOUS

Section 3.01 - Amendments.

          This  Agreement  may be  amended  by the  parties  hereto  at any
time  by execution of an  instrument  in writing  signed on behalf of each of
the parties hereto,  subject to all applicable approvals by the SEC and any
applicable state utility regulatory commission.

                                      -5-
<PAGE>

Section 3.02 - Legal Responsibility.

          Nothing herein  contained shall render any Party liable for the
obligations of any other Party hereunder and the rights,  obligations and
liabilities of the Parties are several in accordance  with their  respective
obligations,  and not joint.

Section 3.03 - Rules for Implementation.

          The Parties may develop a set of guidelines for implementing the
provisions of this  Agreement,  provided that the guidelines are consistent with
all of the provisions of this Agreement.

Section 3.04 - Governing Law.

          This Agreement shall be governed by and construed in accordance with,
the laws of the State of New York.


          IN WITNESS WHEREOF,  this Agreement has been duly executed and
delivered by the duly  authorized  officer  of each Party  hereto as of the date
first  above written.

                              KeySpan Corporation


                              By:  ____________________________
                                   Name:
                                   Title:


                              KeySpan Corporate Service, LLC


                              By:  ____________________________
                                   Name:
                                   Title:


                              The Brooklyn Union Gas Company d/b/a KeySpan
                              Energy Delivery New York


                              By:  ____________________________
                                   Name:
                                   Title:

                                      -6-
<PAGE>

                              KeySpan Gas East Corporation d/b/a KeySpan Energy
                              Delivery Long Island


                              By:  ____________________________
                                   Name:
                                   Title:


                              KeySpan Generation, LLC


                              By:  ____________________________
                                   Name:
                                   Title:


                              Boston Gas Company


                              By:  ____________________________
                                   Name:
                                   Title:


                              Essex Gas Company


                              By:  ____________________________
                                   Name:
                                   Title:


                              Colonial Gas Company


                              By:  ____________________________
                                   Name:
                                   Title:

                              EnergyNorth Natural Gas, Inc.


                              By:  ____________________________
                                   Name:
                                   Title:


Date: _________________, 2000

                                      -7-