93305

                                  SERVICE AGREEMENT
                         (APPLICABLE TO RATE SCHEDULE AFT-1)
                         -----------------------------------




               This Agreement ("Agreement") is made and entered into this
               1st day of June 1993, by and between Algonquin Gas
               Transmission Company, a Delaware Corporation (herein called
               "Algonquin"), and Connecticut Natural Gas Corporation
               (herein called "Customer" whether one or more persons).

               In consideration of the premises and of the mutual covenants
               herein contained, the parties do agree as follows:


                                      ARTICLE I
                                  SCOPE OF AGREEMENT

               1.1  Subject to the terms, conditions and limitations hereof
                    and of Algonquin's Rate Schedule AFT-1, Algonquin
                    agrees to receive from or for the account of Customer
                    for transportation on a firm basis quantities of
                    natural gas tendered by Customer on any day at the
                    Point(s) of Receipt; provided, however, Customer shall
                    not tender without the prior consent of Algonquin, at
                    any Point of Receipt on any day a quantity of natural
                    gas in excess of the applicable Maximum Daily Receipt
                    Obligation for such Point of Receipt plus the
                    applicable Fuel Reimbursement Quantity; and provided
                    further that Customer shall not tender at all Point(s)
                    of Receipt on any day or in any year a cumulative
                    quantity of natural gas, without the prior consent of
                    Algonquin, in excess of the following quantities of
                    natural gas plus the applicable Fuel Reimbursement
                    Quantities:

               Maximum Daily Transportation Quantity     1,877 MMBtu
               Maximum Annual Transportation Quantity  685,105 MMBtu

               1.2  Algonquin agrees to transport and deliver to or for the
                    account of Customer at the Point(s) of Delivery and
                    Customer agrees to accept or cause acceptance of
                    delivery of the quantity received by Algonquin on any
                    day, less the Fuel Reimbursement Quantities; provided,
                    however, Algonquin shall not be obligated to deliver at
                    any Point of Delivery on any day a quantity of natural
                    gas in excess of the applicable Maximum Daily Delivery
                    Obligation.<PAGE>





                                                                 93305

                                  SERVICE AGREEMENT
                         (APPLICABLE TO RATE SCHEDULE AFT-1)
                         -----------------------------------


                                      ARTICLE II
                                  TERM OF AGREEMENT

               2.1  This Agreement shall become effective as of the date
                    set forth hereinabove and shall continue in effect for
                    a term ending on and including March 31, 1997 ("Primary
                    Term") and shall remain in force from year to year
                    thereafter unless terminated by either party by written
                    notice one year or more prior to the end of the Primary
                    Term or any successive term thereafter.  Algonquin's
                    right to cancel this Agreement upon the expiration of
                    the Primary Term hereof or any succeeding term shall be
                    subject to Customer's rights pursuant to Sections 8 and
                    9 of the General Terms and Conditions.

               2.2  This Agreement may be terminated at any time by
                    Algonquin in the event Customer fails to pay part or
                    all of the amount of any bill for service hereunder and
                    such failure continues for thirty days after payment is
                    due; provided Algonquin gives ten days prior written
                    notice to Customer of such termination and provided
                    further such termination shall not be effective if,
                    prior to the date of termination, Customer either pays
                    such outstanding bill or furnishes a good and
                    sufficient surety bond guaranteeing payment to
                    Algonquin of such outstanding bill; provided that
                    Algonquin shall not be entitled to terminate service
                    pending the resolution of a disputed bill if Customer
                    complies with the billing dispute procedure currently
                    on file in Algonquin's tariff.


                                     ARTICLE III
                                    RATE SCHEDULE

               3.1  Customer shall pay Algonquin for all services rendered
                    hereunder and for the availability of such service
                    under Algonquin's Rate Schedule AFT-1 as filed with the
                    Federal Energy Regulatory Commission and as the same
                    may be hereafter revised or changed.  The rate to be
                    charged Customer for transportation hereunder shall not
                    be more than the maximum rate under Rate Schedule
                    AFT-1, nor less than the minimum rate under Rate
                    Schedule AFT-1.<PAGE>





                                                                 93305

                                  SERVICE AGREEMENT
                         (APPLICABLE TO RATE SCHEDULE AFT-1)
                         -----------------------------------


               3.2  This Agreement and all terms and provisions contained
                    or incorporated herein are subject to the provisions of
                    Algonquin's applicable rate schedules and of
                    Algonquin's General Terms and Conditions on file with
                    the Federal Energy Regulatory Commission, or other duly
                    constituted authorities having jurisdiction, and as the
                    same may be legally amended or superseded, which rate
                    schedules and General Terms and Conditions are by this
                    reference made a part hereof.

               3.3  Customer agrees that Algonquin shall have the
                    unilateral right to file with the appropriate
                    regulatory authority and make changes effective in (a)
                    the rates and charges applicable to service pursuant to
                    Algonquin's Rate Schedule AFT-1, (b) Algonquin's Rate
                    Schedule AFT-1, pursuant to which service hereunder is
                    rendered or (c) any provision of the General Terms and
                    Conditions applicable to Rate Schedule AFT-1. 
                    Algonquin agrees that Customer may protest or contest
                    the aforementioned filings, or may seek authorization
                    from duly constituted regulatory authorities for such
                    adjustment of Algonquin's existing FERC Gas Tariff as
                    may be found necessary to assure that the provisions in
                    (a), (b), or (c) above are just and reasonable.


                                      ARTICLE IV
                                 POINT(S) OF RECEIPT

               Natural gas to be received by Algonquin for the account of
               Customer hereunder shall be received at the outlet side of
               the measuring station(s) at or near the Primary Point(s) of
               Receipt set forth in Exhibit A of the service agreement,
               with the Maximum Daily Receipt Obligation and the receipt
               pressure obligation indicated for each such Primary Point of
               Receipt.  Natural gas to be received by Algonquin for the
               account of Customer hereunder may also be received at the
               outlet side of any other measuring station on the Algonquin
               system, subject to reduction pursuant to Section 6.2 of Rate
               Schedule AFT-1.<PAGE>





                                                                 93305

                                  SERVICE AGREEMENT
                         (APPLICABLE TO RATE SCHEDULE AFT-1)
                         -----------------------------------


                                      ARTICLE V
                                POINT(S) OF DELIVERY 

               Natural gas to be delivered by Algonquin for the account of
               Customer hereunder shall be delivered on the outlet side of
               the measuring station(s) at or near the Primary Point(s) of
               Delivery set forth in Exhibit B of the service agreement,
               with the Maximum Daily Delivery Obligation and the delivery
               pressure obligation indicated for each such Primary Point of
               Delivery.  Natural gas to be delivered by Algonquin for the
               account of Customer hereunder may also be delivered at the
               outlet side of any other measuring station on the Algonquin
               system, subject to reduction pursuant to Section 6.4 of Rate
               Schedule AFT-1.


                                      ARTICLE VI
                                      ADDRESSES

               Except as herein otherwise provided or as provided in the
               General Terms and Conditions of Algonquin's FERC Gas Tariff,
               any notice, request, demand, statement, bill or payment
               provided for in this Agreement, or any notice which any
               party may desire to give to the other, shall be in writing
               and shall be considered as duly delivered when mailed by
               registered, certified, or first class mail to the post
               office address of the parties hereto, as the case may be, as
               follows:


                    (a)  Algonquin: Algonquin Gas Transmission Company
                                   1284 Soldiers Field Road
                                   Boston, MA  02135
                                   Attn:  John J. Mullaney
                                          Vice President, Marketing
                    

                    (b)  Customer: Connecticut Natural Gas Corporation
                                   100 Columbus Boulevard
                                   P. O. Box 1500
                                   Hartford, CT  06144-1500
                                   Attn:     Harry Kraiza, Jr.
                                        Vice President, Energy Services

               or such other address as either party shall designate by
               formal written notice.<PAGE>





                                                                 93305

                                  SERVICE AGREEMENT
                         (APPLICABLE TO RATE SCHEDULE AFT-1)
                         -----------------------------------


                                     ARTICLE VII
                                    INTERPRETATION

               The interpretation and performance of the Agreement shall be
               in accordance with the laws of the Commonwealth of
               Massachusetts, excluding conflicts of law principles that
               would require the application of the laws of a different
               jurisdiction.

                                     ARTICLE VIII
                             AGREEMENTS BEING SUPERSEDED

               When this Agreement becomes effective, it shall supersede
               the following agreements between the parties hereto, except
               that in the case of conversions from former Rate Schedules
               F-2 and F-3, the parties' obligations under Article II of
               the service agreements pertaining to such rate schedules
               shall continue in effect.

               Service Agreement executed by Customer and Algonquin under
               Rate Schedule F-3 dated September 12, 1984.

               IN WITNESS WHEREOF, the parties hereto have caused this
               Agreement to be signed by their respective agents thereunto
               duly authorized, the day and year first above written.


                              ALGONQUIN GAS TRANSMISSION COMPANY


                              By:  /s/ John J. Mullaney
                                 -------------------------------  

                              Title:  /s/ Vice President, Marketing
                                    ------------------------------ 



                              CONNECTICUT NATURAL GAS CORPORATION


                              By:  /s/ Harry Kraiza, Jr.     
                                 --------------------------------

                              Title:  /s/ Vice President, Energy Services  
                                    ------------------------------------- <PAGE>





                                                                 93305

                                  SERVICE AGREEMENT
                         (APPLICABLE TO RATE SCHEDULE AFT-1)
                         -----------------------------------



                                      Exhibit A
                                 Point(s) of Receipt
                                 -------------------

                                 Dated:                   

                  To the service agreement under Rate Schedule AFT-1
                between Algonquin Gas Transmission Company (Algonquin)
                  and Connecticut Natural Gas Corporation (Customer)
                            concerning Point(s) of Receipt



               Primary               Maximum Daily              Maximum
               Point of            Receipt Obligation       R e c e i p t
          Pressure 
               Receipt                   (MMBtu)                  (Psig)   

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


               Centerville, NJ               1,877          At any pressure
                                                            requested by
                                                            Algonquin not
                                                            in excess of
                                                            750 Psig.












          Signed for Identification

          Algonquin:     /s/ John J. Mullaney           
                         -------------------------------

          Customer:      /s/ Harry Kraiza, Jr.          
                         -------------------------------<PAGE>





                                                                 93305

                                  SERVICE AGREEMENT
                         (APPLICABLE TO RATE SCHEDULE AFT-1)
                         -----------------------------------<PAGE>





                                                                 93305

                                  SERVICE AGREEMENT
                         (APPLICABLE TO RATE SCHEDULE AFT-1)
                         -----------------------------------


                                    Exhibit B
                              Point(s) of Delivery
                              --------------------

                                    Dated:  

               To the service agreement under Rate Schedule AFT-1
             between Algonquin Gas Transmission Company (Algonquin)
               and Connecticut Natural Gas Corporation (Customer)
                         concerning Point(s) of Delivery

          Primary               Maximum Daily                Minimum
          Point of            Delivery Obligation      Delivery Pressure
          Delivery                 (MMBtu)                   (Psig)     

          On the outlet side of
          meter station located at:

          Cromwell, CT                      0                      -
          Farmington,
           (Southington) CT             1,877                     100
          Glastonbury, CT                   0                      -
          Mansfield, CT                     0                      -
          Cheshire,
           (Kensington) CT                  0                      -

          On the outlet side of
          meter station located at
          Norwich, CT:

          At the point where Algonquin's
          line crosses Route No. 2 in
          Norwichtown                       0                      -

          In the Yantic area in the 
          vicinity of Browning Road         0                      -<PAGE>





                                                                 93305

                                  SERVICE AGREEMENT
                         (APPLICABLE TO RATE SCHEDULE AFT-1)
                         -----------------------------------


                                    Exhibit B
                              Point(s) of Delivery
                              --------------------
                                   (Continued)

                                    Dated:  

               To the service agreement under Rate Schedule AFT-1
             between Algonquin Gas Transmission Company (Algonquin)
               and Connecticut Natural Gas Corporation (Customer)
                         concerning Point(s) of Delivery

     Customer hereby designates and authorizes Algonquin to act as
     Customer's agent for the purpose of apportioning the total deliveries
     at the Farmington (Southington) and Cheshire (Kensington) Points of
     Delivery between Customer and Yankee Gas Services Company to whom
     deliveries are also made at these Points of Delivery, and who has also
     designated Algonquin as agent for this purpose.  Customer further
     designates and authorizes Customer to act as Customer's agent for the
     purpose of apportioning the total deliveries at the Norwichtown and
     Yantic (Browning Road) Points of Delivery between Customer and City of
     Norwich, Connecticut, Board of Public Utilities Commissioners, to whom
     deliveries are also made at the Points of Delivery, and who has also
     designated Customer as his agent for this purpose. (One Customer
     receiving deliveries at a point may be designated by the other or
     others to act as agent for this purpose.)  The Customer shall be
     obligated to furnish to the agent daily all data necessary to compute
     the quantities of gas delivered to Customer on each day.  The agent
     shall be required to notify Algonquin of the percentage which the
     quantity of gas delivered daily to Customer at such Points of Delivery
     bears to the total quantity delivered daily to all Customers at such
     points.  The agent shall be responsible for sending reports of all
     such daily delivery percentages to Algonquin not later than three days
     after the day on which the delivery was made.  The agent will maintain
     all records, data, and computations incident to such determinations
     for a period of at least five years, available for inspection by the
     parties and duly constituted regulatory authorities on reasonable
     notice therefor.

     Signed for Identification

     Algonquin:/s/ John J. Mullaney        
              -----------------------------

     Customer:/s/ Harry Kraiza, Jr.   
              -----------------------------<PAGE>