Contract #:   400223
                                                                         ------
                                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,  Pipeline and Customer are currently parties to  service
   agreements under Pipeline's Rate Schedule SS-1 (Pipeline's Contract Nos.
   400148, 400149, 400150 and 412008) which specify an MDWQ of 2,216 dth and an
   MSQ of 261,719 dth, an MDWQ of 3,521 dth and an MSQ of 246,470 dth, an MDWQ
   of 21,263 and an MSQ of 1,275,780 and an MDWQ of 207 and an MSQ of 14,490
   respectively; and

        WHEREAS, Pipeline and Customer desire to enter into this  Service
   Agreement to supersede Customer's existing Rate Schedule SS-1 service
   agreements referenced above; and

        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)     9,244 dth
             Maximum Storage Quantity (MSQ)   1,798,459 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 27,207 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 the later of (i)
   June 1, 1996 or (ii) the first day of the first month after Customer fully
   executes this Service Agreement and shall continue in force and effect until
   April 30, 2004 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 April 30th
   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.




                                        2                                 400223
   <PAGE>


                                SERVICE AGREEMENT
                              FOR RATE SCHEDULE SS-1
                                   (Continued)



   

        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 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 Condi-
   tions 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 Article 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



                                        3                                 400223
   <PAGE>


                                SERVICE AGREEMENT
                              FOR RATE SCHEDULE SS-1
                                   (Continued)



   

   storage in excess of the Customer MDIQ.

















































                                        4                                 400223
   <PAGE>


                                SERVICE AGREEMENT
                              FOR RATE SCHEDULE SS-1
                                   (Continued)



   

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

        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, certi-
   fied, 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.





                                        5                                 400223
   <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.  














                                        6                                 400223
   <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: 


        Service Agreement(s) dated, November 17, 1993 and            
   between Pipeline and Customer under Pipeline's Rate Schedule SS-1
   (Pipeline's Contract Nos. 400148, 400149, 400150 and 412008).

    
    



































                                        7                                 400223
   <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
   -----------------



                            CONNECTICUT NATURAL GAS CORPORATION



                            By Edna M. Karanian
                               --------------------------------
                                 Vice President

   ATTEST:



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









                                        8                                 400223
   <PAGE>