Contract #:   412008

                                 SERVICE AGREEMENT
                              FOR RATE SCHEDULE SS-1


                  This Service Agreement, made and entered into this 15th
      day of November, 1996, by and between TEXAS EASTERN TRANSMISSION
      CORPORATION, a Delaware Corporation (herein called "Pipeline") and
      CONNECTICUT NATURAL GAS CORPORATION (herein called "Customer," whether
      one or more),

                               W I T N E S S E T H:

                  WHEREAS,  Customer is a customer of Algonquin Gas
      Transmission Company ("Algonquin"); and

                  WHEREAS,  Algonquin is a customer of Pipeline under
      certain of Pipeline's rate schedules and related service agreements;
      and

                  WHEREAS,  pursuant to the Federal Energy Regulatory
      Commission's ("Commission") order issued on July 8, 1994,  in Docket
      Nos. RP93-14-000, et al.,  and 18 C.F.R. Section 284.242,  Algonquin
      is assigning on a permanent basis certain of its firm service
      entitlements on Pipeline to certain of Algonquin's direct customers;
      and

                  WHEREAS,  Customer's capacity entilements on Pipeline
      pursuant to this Service Agreement are a result of Algonquin's
      permanent assignment to Customer as described above; and

                  WHEREAS,  Customer and Pipeline desire to enter into this
      Service Agreement to reflect such permanent assignment from Algonquin
      to Customer;

                  NOW, THEREFORE, in consideration of the premises and of
      the mutual covenants and agreements herein contained,  the parties do
      covenant and agree as follows:

                                     ARTICLE I

                                SCOPE OF AGREEMENT

                  Subject to the terms, conditions and limitations hereof
      and of Pipeline's Rate Schedule SS-1, Pipeline agrees to provide firm
      service for Customer under Rate Schedule SS-1 and to receive and store
      for Customer's account quantities of natural gas up to the following
      quantity:

                        Maximum Daily Injection Quantity (MDIQ) 74 dth
                        Maximum Storage Quantity (MSQ) 14,490 dth

                  Pipeline agrees to withdraw from storage for Customer, at
      Customer's request, quantities of gas up to Customer's Maximum Daily
      Withdrawal Quantity (MDWQ) of 207 dekatherms, or such lesser quantity
      as determined  pursuant to Rate Schedule SS-1, from Customer's Storage
      Inventory, plus Applicable Shrinkage, and to deliver for Customer's
      account such quantities.  Pipeline's obligation to withdraw gas on any
      day is governed by the provisions of Rate Schedule SS-1, including but
      not limited to Section 6.<PAGE>



                                    SERVICE AGREEMENT
                                        FOR RATE SCHEDULE SS-1
                                              (Continued)
            

                                    ARTICLE II

                                 TERM OF AGREEMENT

                  The term of this Service Agreement shall commence on
      September 1, 1994 and shall continue in force and effect until October
      31, 2012 and year to year thereafter unless this Service Agreement is
      terminated as hereinafter provided.  This Service Agreement may be
      terminated by either Pipeline or Customer upon five (5) years prior
      written notice to the other specifying a termination date of any year
      occurring on or after the expiration of the primary term.  Subject to
      Section 22 of Pipeline's General Terms and Conditions and without
      prejudice to such rights, this Service Agreement may be terminated at
      any time by Pipeline 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 (30) days after payment is due; provided,
      Pipeline gives thirty (30) 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 Pipeline of such outstanding bill.  

                  THE TERMINATION OF THIS SERVICE AGREEMENT WITH A FIXED
      CONTRACT TERM OR THE PROVISION OF A TERMINATION NOTICE BY CUSTOMER
      TRIGGERS PREGRANTED ABANDONMENT UNDER SECTION 7 OF THE NATURAL GAS ACT
      AS OF THE EFFECTIVE DATE OF THE TERMINATION.  PROVISION OF A
      TERMINATION NOTICE BY PIPELINE ALSO TRIGGERS CUSTOMER'S RIGHT OF FIRST
      REFUSAL UNDER SECTION 3.13 OF THE  GENERAL TERMS AND CONDITIONS ON THE
      EFFECTIVE DATE OF THE TERMINATION.

                  In the event there is gas in storage for Customer's
      account on April 30 of the year of termination of this Service
      Agreement, this Service Agreement shall continue in force and effect
      for the sole purpose of withdrawal and delivery of said gas to
      Customer for an additional one-hundred and twenty (120) days. 

                                    ARTICLE III

                                   RATE SCHEDULE

                  This Service Agreement in all respects shall be and remain
      subject to the applicable provisions of Rate Schedule SS-1 and of the
      General Terms and Conditions of Pipeline's FERC Gas Tariff on file
      with the Federal Energy Regulatory Commission, all of which are by
      this reference made a part hereof.

                  Customer shall pay Pipeline, for all services rendered
      hereunder and for the availability of such service in the period
      stated, the applicable prices established under Pipeline's Rate




                                                  2                 412008<PAGE>



                                    SERVICE AGREEMENT
                                        FOR RATE SCHEDULE SS-1
                                              (Continued)
            

      Schedule SS-1 as filed with the Federal Energy Regulatory Commission
      and as the same may be hereafter revised or changed.

                  Customer agrees that Pipeline 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 Pipeline's Rate Schedule SS-1, (b) Pipeline's Rate
      Schedule SS-1, pursuant to which service hereunder is rendered or (c)
      any provision of the General Terms and Conditions applicable to Rate
      Schedule SS-1.  Notwithstanding the foregoing, Customer does not agree
      that Pipeline shall have the unilateral right without the consent of
      Customer subsequent to the execution of this Service Agreement and
      Pipeline shall not have the right during the effectiveness of this
      Service Agreement to make any filings pursuant to Section 4 of the
      Natural Gas Act to change the MDIQ, MSQ and MDWQ specified in Arti-
      cle I, to change the term of the service agreement as specified in
      Article II, to change Point(s) of Receipt specified in Article IV, to
      change the Point(s) of Delivery specified in Article IV, or to change
      the firm character of the service hereunder.  Pipeline agrees that
      Customer may protest or contest the aforementioned filings, and
      Customer does not waive any rights it may have with respect to such
      filings.

                                    ARTICLE IV

                   POINT(S) OF RECEIPT AND POINT(S) OF DELIVERY

                  The natural gas received by Pipeline for Customer's
      account for storage injection pursuant to this Service Agreement shall
      be those quantities scheduled for delivery pursuant to Service
      Agreements between Pipeline and Customer under Rate Schedules CDS,
      FT-1, SCT, PTI or IT-1 which specify as a Point of Delivery the "SS-1
      Storage Point".  For purposes of billing of Usage Charges under Rate
      Schedules CDS, FT-1, SCT, PTI or IT-1, deliveries under Rate Schedules
      CDS, FT-1, SCT, PTI or IT-1 for injection into storage  scheduled
      directly to the "SS-1 Storage  Point" shall be deemed to have been
      delivered 60% in Market Zone 2 and 40% in Market Zone 3.  In addition,
      at Customer's request any positive or negative variance between
      scheduled deliveries and actual deliveries on any day  at Customer's
      Points of Delivery under Rate Schedules CDS, FT-1, SCT, or IT-1 shall
      be deemed for billing purposes delivered at the Point of Delivery and
      shall be injected into or withdrawn from storage for Customer's
      account.  In addition to accepting gas for storage injection at the
      SS-1 Storage Point, Pipeline will accept gas tendered at points of
      interconnection between Pipeline and third party facilities at Oakford
      and Leidy Storage Fields provided that such receipt does not result in
      Customer tendering aggregate quantities for storage in excess of the
      Customer MDIQ.

                  The Point(s) of Delivery at which Pipeline shall deliver
      gas shall be specified in Exhibit A of the executed service agreement.


                                                  3                         
                                                                     412008<PAGE>



                                    SERVICE AGREEMENT
                                        FOR RATE SCHEDULE SS-1
                                              (Continued)
            

                  Exhibit A and B are hereby incorporated as part of this
      Service Agreement for all intents and purposes as if fully copied and
      set forth herein at length.

                                     ARTICLE V

                                      QUALITY

                  All natural gas tendered to Pipeline for Customer's
      account shall conform and be subject to the provisions of Section 5 of
      the General Terms and Conditions.  Customer agrees that in the event
      Customer tenders for service hereunder and Pipeline agrees to accept
      natural gas which does not comply with Pipeline's quality
      specifications, as expressly provided for in Section 5 of Pipeline's
      General Terms and Conditions, Customer shall pay all costs associated
      with processing of such gas as necessary to comply with such quality
      specifications.

                                    ARTICLE VI

                                     ADDRESSES

                  Except as herein otherwise provided or as provided in the
      General Terms and Conditions of Pipeline's FERC Gas Tariff, any
      notice, request, demand, statement, bill or payment provided for in
      this Service 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 regular mail to the
      post office address of the parties hereto, as the case may be, as
      follows:

                  (a) Pipeline:     Texas Eastern Transmission Corporation
                                    5400 Westheimer Court
                                    Houston, Texas  77056-5310

                  (b) Customer:     CONNECTICUT NATURAL GAS CORPORATION
                                    P.O. BOX 1500
                                    100 Columbus Boulevard
                                    Hartford, CT  06144

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











                                                  4
                                                                  412008<PAGE>



                                    SERVICE AGREEMENT
                                        FOR RATE SCHEDULE SS-1
                                              (Continued)
            

                                    ARTICLE VII

                                    ASSIGNMENTS

                  Any Company which shall succeed by purchase, merger, or
      consolidation to the properties, substantially as an entirety, of
      Customer, or of Pipeline, as the case may be, shall be entitled to the
      rights and shall be subject to the obligations of its predecessor in
      title under this Service Agreement; and either Customer or Pipeline
      may assign or pledge this Service Agreement under the provisions of
      any mortgage, deed of trust, indenture, bank credit agreement,
      assignment, receivable sale, or similar instrument which it has
      executed or may execute hereafter; otherwise, neither Customer nor
      Pipeline shall assign this Service Agreement or any of its rights
      hereunder unless it first shall have obtained the consent thereto in
      writing of the other; provided further, however, that neither Customer
      nor Pipeline shall be released from its obligations hereunder without
      the consent of the other.  In addition, Customer may assign its rights
      to capacity pursuant to Section 3.14 of the General Terms and
      Conditions.  To the extent Customer so desires, when it releases
      capacity pursuant to Section 3.14 of the General Terms and Conditions,
      Customer may require privity between Customer and the Replacement
      Customer, as further provided in the applicable Capacity Release
      Umbrella Agreement.


                                   ARTICLE VIII

                                  INTERPRETATION

                  The interpretation and performance of this Service
      Agreement shall be in accordance with the laws of the State of Texas
      without recourse to the law governing conflict of laws.

                  This Service Agreement and the obligations of the parties
      are subject to all present and future valid laws with respect to the
      subject matter, State and Federal, and to all valid present and future
      orders, rules, and regulations of duly constituted authorities having
      jurisdiction.  














                                                  5
                                                                412008<PAGE>



                                    SERVICE AGREEMENT
                                        FOR RATE SCHEDULE SS-1
                                              (Continued)
            

                                    ARTICLE IX

                         CANCELLATION OF PRIOR CONTRACT(S)

                  This Service Agreement supersedes and cancels, as of the
      effective date of this Service Agreement, the contract(s) between the
      parties hereto as described below: 


                        NONE











































                                                  6
                                                                    412008<PAGE>



                                    SERVICE AGREEMENT
                                        FOR RATE SCHEDULE SS-1
                                              (Continued)
            

                  IN WITNESS WHEREOF, the Parties hereto have caused this
      Service Agreement to be signed by their respective Presidents, Vice
      Presidents, or other duly authorized agents and their respective
      corporate seals to be hereto affixed and attested by their respective
      Secretaries or Assistant Secretaries, the day and year first above
      written.

                                    TEXAS EASTERN TRANSMISSION CORPORATION



                                    By  Robert B. Evans
                                       -------------------------------
                                                Vice President


      ATTEST:


      Robert W. Reed
      --------------------------
      Corporate Secretary


                                    CONNECTICUT NATURAL GAS CORPORATION



                                    By Edna M. Karanian
                                       -----------------------------



      ATTEST:



      R. L. Babcock
      ----------------------------
       













                                                  7        
                                                                  412008<PAGE>



                                    SERVICE AGREEMENT
                                        FOR RATE SCHEDULE SS-1
                                              (Continued)
            
<TABLE>
<CAPTION>
                                                                                                               Contract #: 412008

                                          EXHIBIT A, POINT(S) OF DELIVERY, DATED _________,
                                          TO THE SERVICE AGREEMENT UNDER RATE SCHEDULE SS-1
                                   BETWEEN TEXAS EASTERN TRANSMISSION CORPORATION ("Pipeline") AND
                                CONNECTICUT NATURAL GAS CORPORATION ("Customer"), DATED ___________:
   <C>          <S>                 <C>          <C>                    <C>              <C>     <C>


                                    Maximum Daily
                                    Delivery                             Measurement
   Point of                         Obligation    Delivery Pressure      Responsi-
   Delivery         Description     ----------       Obligation          bilities        Owner   Operator
   ----------       -----------                   -----------------      -----------     -----   -------------
   1. 71078     Algonquin-Hanover    207 dth      As requested by               TE       TE      Algonquin Gas
                Morris Co., NJ                    Customer, not to                               Transmission 
                                                  exceed 750 psig
   2. 79823     AGT-Connecticut      0 dth        N/A                         N/A        N/A     N/A
                Natural for
                nomination purposes
</TABLE>
   provided, however that until changed by a subsequent Agreement between
   Pipeline and Customer, Pipeline's aggregate maximum daily delivery
   obligations at each of the Points of Delivery described above, including
   Pipeline's maximum daily delivery obligations under this and all other
   Firm Service Agreements existing between Pipeline and Customer, shall in
   no event exceed the following:


             Point of                              Aggregate Maximum
             Delivery                      Daily Delivery Obligation
           ------------                   ----------------------------

                   No. 1                            31,626 dth


   SIGNED FOR IDENTIFICATION:


         A-1                                                           412008<PAGE>



                                    SERVICE AGREEMENT
                                        FOR RATE SCHEDULE SS-1
                                              (Continued)
            

   PIPELINE:                            

   CUSTOMER:                            

   SUPERSEDES EXHIBIT A DATED           

































       A-2                                                       412008<PAGE>