<PAGE>
 
                                                                   EXHIBIT 10.32
          
                                                       SERVICE PACKAGE NO. 2O241
                                                              AMENDMENT NO.0

                          GAS TRANSPORTATION AGREEMENT
                      (For Use Under FT-A Rate Schedule)



THIS AGREEMENT is made and entered into as of the 1st day of September, 1996, by
and between TENNESSEE GAS PIPELINE COMPANY, a Delaware Corporation, hereinafter
referred to as "Transporter" and BOSTON GAS CO, a MASSACHUSETTS Corporation,
hereinafter referred to as "Shipper." Transporter and Shipper shall collectively
be referred to herein as the "Parties."

                                   ARTICLE I

                                  DEFINITIONS

1.1   TRANSPORTATION QUANTITY (TQ)- shall mean the maximum daily quantity of gas
      which Transporter agrees to receive and transport on a firm basis, subject
      to Article II herein, for the account of Shipper hereunder on each day
      during each year during the term hereof, which shall be 13,027 dekatherms.
      Any limitations of the quantities to be received from each Point of
      Receipt and/or delivered to each Point of Delivery shall be as specified
      on Exhibit "A" attached hereto.

1.2   EQUIVALENT QUANTITY - shall be as defined in Article I of the General
      Terms and Conditions of Transporter's FERC Gas Tariff.

                                  ARTICLE II

                                TRANSPORTATION

Transportation Service - Transporter agrees to accept and receive daily on a
firm basis, at the Point(s) of Receipt from Shipper or for Shipper's account
such quantity of gas as Shipper makes available up to the Transportation
Quantity, and to deliver to or for the account of Shipper to the Point(s) of
Delivery an Equivalent Quantity of gas.

                                  ARTICLE III

                       POINT(S) OF RECEIPT AND DELIVERY

The Primary Point(s) of Receipt and Delivery shall be those points specified on
Exhibit "A" attached hereto.
 
                                  ARTICLE IV

All facilities are in place to render the service provided for in this
Agreement.
<PAGE>
 
                                                       SERVICE PACKAGE NO. 20241
                                                              AMENDMENT NO. 0

                         GAS TRANSPORTATION AGREEMENT
                      (For Use Under FT-A Rate Schedule)


                                   ARTICLE V

             QUALITY SPECIFICATIONS AND STANDARDS FOR MEASUREMENT

For all gas received, transported and delivered hereunder the Parties agree to
the Quality Specifications and Standards for Measurement as specified in the
General Terms and Conditions of Transporter's FERC Gas Tariff Volume No. 1. To
the extent that no new measurement facilities are installed to provide service
hereunder, measurement operations will continue in the manner in which they have
previously been handled. In the event that such facilities are not operated by
Transporter or a downstream pipeline, then responsibility for operations shall
be deemed to be Shipper's.

                                  ARTICLE VI

                   RATES AND CHARGES FOR GAS TRANSPORTATION

6.1   TRANSPORTATION RATES - Commencing upon the EFFECTIVE date hereof, the
      rates, charges, and surcharges to be paid by Shipper to Transporter for
      the  transportation service provided herein shall be in accordance with
      Transporter's Rate Schedule FT-A and the General Terms and Conditions of
      Transporter's FERC Gas Tariff.

6.2   INCIDENTAL CHARGES - Shipper agrees to reimburse Transporter for any
      filing or similar fees, which have not been previously paid for by
      Shipper, which Transporter incurs in rendering service hereunder.

6.3   CHANGES IN RATES AND CHARGES - Shipper agrees that Transporter shall have
      the unilateral right to file with the appropriate regulatory authority and
      make effective changes in (a) the rates and charges applicable to service
      pursuant to Transporter's Rate Schedule FT-A, (b) the rate schedule(s)
      pursuant to which service hereunder is rendered, or (c) any provision of
      the General Terms and Conditions applicable to those rate schedules.
      Transporter agrees that Shipper may protest or contest the aforementioned
      filings, or may seek authorization from duly constituted regulatory
      authorities for such adjustment of Transporter's existing FERC Gas Tariff
      as may be found necessary to assure Transporter just and reasonable rates.

                                  ARTICLE VII

                             BILLINGS AND PAYMENTS

Transporter shall bill and Shipper shall pay all rates and charges in accordance
with Articles V and VI, respectively, of the General Terms and Conditions of
Transporter's FERC Gas Tariff.

                                       2
<PAGE>
 
                                                       SERVICE PACKAGE NO. 20241
                                                              AMENDMENT NO.0

                         GAS TRANSPORTATION AGREEMENT
                      (For Use Under FT-A Rate Schedule)

                                 ARTICLE VIII

                         GENERAL TERMS AND CONDITIONS

This Agreement shall be subject to the effective provisions of Transporter's
Rate Schedule FT-A and to the General Terms and Conditions incorporated therein,
as the same may be changed or superseded from time to time in accordance with
the rules and regulations of the FERC.

                                  ARTICLE IX

                                  REGULATION

9.1   This Agreement shall be subject to all applicable and lawful governmental
      statutes, orders, rules and regulations and is contingent upon the receipt
      and continuation of all necessary regulatory approvals or authorizations
      upon terms acceptable to Transporter. This Agreement shall be void and of
      no force and effect if any necessary regulatory approval is not so
      obtained or continued. All Parties hereto shall cooperate to obtain or
      continue all necessary approvals or authorizations, but no Party shall be
      liable to any other Party for failure to obtain or continue such approvals
      or authorizations.

9.2   The transportation service described herein shall be provided subject to
      Subpart G, Part 284, of the FERC Regulations.

                                   ARTICLE X

                     RESPONSIBILITY DURING TRANSPORTATION

Except as herein specified, the responsibility for gas during transportation
shall be as stated in the General Terms and Conditions of Transporter's FERC Gas
Tariff Volume No. 1.

                                  ARTICLE XI

                                  WARRANTIES

11.1  In addition to the warranties set forth in Article IX of the General Terms
      and Conditions of Transporter's FERC Gas Tariff, Shipper warrants the
      following:

     (a)  Shipper warrants that all upstream and downstream transportation
          arrangements are in place, or will be in place as of the requested
          effective date of service, and that it has advised the upstream and
          downstream transporters of the receipt and delivery points under this
          Agreement and any quantity limitations for each point as specified on
          Exhibit "A" attached hereto. Shipper agrees to indemnify and hold
          Transporter harmless for refusal to transport gas hereunder in the
          event any upstream or downstream transporter fails to

                                       3
<PAGE>
 
                                                       SERVICE PACKAGE NO. 20241
                                                                 AMENDMENT NO. 0

                         GAS TRANSPORTATION AGREEMENT
                      (For Use Under FT-A Rate Schedule)

 
          receive or deliver gas as contemplated by this Agreement.

     (b)  Shipper agrees to indemnify and hold Transporter harmless from all
          suits, actions, debts, accounts, damages, costs, losses and expenses
          (including reasonable attorneys fees) arising from or out of breach of
          any warranty by Shipper herein.

11.2  Transporter shall not be obligated to provide or continue service
      hereunder in the event of any breach of warranty.

                                  ARTICLE XII

                                     TERM

12.1  This Agreement shall be effective as of the 1st day of September, 1996,
      and shall remain in force and effect until the 31st day of October, 2000,
      ("Primary Term") and on a month to month basis thereafter unless
      terminated by either Party upon at least thirty (30) days prior written
      notice to the other Party; provided, however, that if the Primary Term is
      one year or more, then unless Shipper elects upon one year's prior written
      notice to Transporter to request a lesser extension term, the Agreement
      shall automatically extend upon the expiration of the Primary Term for a
      term of five years and shall automatically extend for successive five year
      terms thereafter unless Shipper provides notice described above in advance
      of the expiration of a succeeding term;  provided further, if the FERC or
      other governmental body having jurisdiction over the service rendered
      pursuant to this Agreement authorizes abandonment of such service, this
      Agreement shall terminate on the abandonment date permitted by the FERC or
      such other governmental body.

12.2  Any portions of this Agreement necessary to resolve or cashout imbalances
      under this Agreement as required by the General Terms and Conditions of
      Transporter's Tariff, shall survive the other parts of this Agreement
      until such time as such balancing has been accomplished; provided,
      however, that Transporter notifies Shipper of such imbalance not later
      than twelve months after the termination of this Agreement.

12.3  This Agreement will terminate automatically upon written notice from
      Transporter in the event Shipper fails to pay all of the amount of any
      bill for service rendered by Transporter hereunder in accord with the
      terms and conditions of Article VI of the General Terms and Conditions of
      Transporter's FERC Gas Tariff.

                                       4
<PAGE>
 
                                                        SERVICE PACKAGE NO.20241
                                                                  AMENDMENT NO.0

                         GAS TRANSPORTATION AGREEMENT
                      (For Use Under FT-A Rate Schedule)

                                 ARTICLE XIII

                                    NOTICE

Except as otherwise provided in the General Terms and Conditions applicable to
this Agreement, any notice under this Agreement shall be in writing and mailed
to the post office address of the Party intended to receive the same, as
follows:

TRANSPORTER:   TENNESSEE GAS PIPELINE COMPANY
               P.O. Box 2511
               Houston, Texas  77252-2511
               Attention:  Director, Transportation Control

SHIPPER:
 
NOTICES:  BOSTON GAS CO
          ONE BEACON STREET
          34TH FLOOR
          BOSTON, MA  02108

          Attention:  BILL YARDLEY

BILLING:  BOSTON GAS CO
          ONE BEACON STREET
          34TH FLOOR
          BOSTON, MA  02108

         Attention:  ACCOUNTS PAYABLE SUPERVISOR

or to such other address as either Party shall designate by formal written
notice to the other.

                                 ARTICLE XIV 

                                  ASSIGNMENTS

14.1  Either Party may assign or pledge this Agreement and all rights and
      obligations hereunder under the provisions of any mortgage, deed of trust,
      indenture, or other instrument which it has executed or may execute
      hereafter as security for indebtedness. Either Party may, without
      relieving itself of its obligation under this Agreement, assign any of its
      rights hereunder to a company with which it is affiliated. Otherwise,
      Shipper shall not assign this Agreement or any of its rights hereunder,
      except in accord with Article III, Section 11 of the General Terms and
      Conditions of Transporter's FERC Gas Tariff.

14.2  Any person which shall succeed by purchase, merger, consolidation to the
      properties, substantially as entirety, of either Party hereto shall be
      entitled to the rights and shall be subject to the obligations of its
      predecessor in interest under this Agreement.

                                       5
<PAGE>
 
                                                       SERVICE PACKAGE NO. 20241
                                                                 AMENDMENT NO. 0

                          GAS TRANSPORTATION AGREEMENT
                       (For Use Under FT-A Rate Schedule)

                                  ARTICLE XV

                                 MISCELLANEOUS

15.1  THE INTERPRETATION AND PERFORMANCE OF THIS CONTRACT SHALL BE IN ACCORDANCE
      WITH AND CONTROLLED BY THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO
      THE DOCTRINES GOVERNING CHOICE OF LAW.

15.2  If any provisions of this Agreement is declared null and void, or
      voidable, by a court of competent jurisdiction, then that provision will
      be considered severable at either Party's option; and if the severability
      option is exercised, the remaining provisions of the Agreement shall
      remain in full force and effect.

15.3  Unless otherwise expressly provided in this Agreement or Transporter's Gas
      Tariff, no modification of or supplement to the terms and provisions
      stated in this agreement shall be or become effective until Shipper has
      submitted a request for change through the TENN-SPEED 2 System and Shipper
      has been notified through TENN-SPEED 2 of Transporter's agreement to such
      change.

15.4  Exhibit "A" attached hereto is incorporated herein by reference and made a
      part hereof for all purposes.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly
executed as of the date first hereinabove written.

   TENNESSEE GAS PIPELINE COMPANY

   BY: /s/ Matthew W. Rowland
      --------------------------
        Matthew W. Rowland   
      Agent and Attorney-in-Fact 

   DATE: 10-16-97
        ------------------------ 


   BOSTON GAS CO.


   BY: W. R. Luthern
      ----------------------  

   TITLE: VICE PRESIDENT
         ------------------- 

   DATE: 21 JULY 97
         -------------------   

                                       6
<PAGE>
 
                         GAS TRANSPORTATION AGREEMENT
                      (For Use Under FT-A Rate Schedule)

                                  EXHIBIT "A"
                 AMENDMENT #0 TO GAS TRANSPORTATION AGREEMENT
                            DATED September 1, 1996
                                    BETWEEN
                        TENNESSEE GAS PIPELINE COMPANY
                                      AND
                                 BOSTON GAS CO


BOSTON GAS CO
EFFECTIVE DATE OF AMENDMENT: SEPTEMBER 1, 1996
RATE SCHEDULE: FT-A
SERVICE PACKAGE:  20241
SERVICE PACKAGE TQ:  13,027 0TH

<TABLE> 
<CAPTION> 
METER   METER NAME                      INTERCONNECT PARTY NAME         COUNTY      ST    ZONE   R/D    LEG   METER-TQ   BILLABLE-TQ
------------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                             <C>                             <C>         <C>   <C>    <C>    <C>   <C>        <C>     
011106  HONEOYE-STG WDL (BI 20526)      HONEOYE STORAGE CORPORATION     ONTARIO     NY     05      R    200      6,150     6,150 
020578  ANDREWS SETTLEMENT SALES  (BI   NATIONAL FUEL GAS SUPPLY CORP   POTTER      PA     04      R    300      5,945     5,945 
070012  ELLISBURG WITHDRAWAL (CHG)  B   CHG TRANSMISSION CORP           POTTER      PA     04      R    300        932       932

                                                                        Total Receipt TQ:                       13,027    13,027
                                                                                                                                
020611  BOSTON-ACTION SALES             BOSTON GAS CO                   MIDDLESEX   MA     06      D    200     13,027    13,027
</TABLE> 

NUMBER OF RECEIPT POINTS AFFECTED: 3 
NUMBER OF DELIVERY POINTS AFFECTED: 1


Note:  Exhibit "A" is a reflection of the contract and all amendments as of the
       amendment effective date.

                                       7