UNITED STATES SECURITIES AND EXCHANGE CO
MMISSION

WASHINGTON, D.C. 20549



FORM 10-Q



(Mark One)

(X)  QUARTERLY REPORT PURSUANT TO SECTION 
13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934



For the quarterly period ended  December&nbs
p;31, 1999



OR



(   )  TRANSITION REPORT PURSUANT TO&
nbsp;SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934



For the transition period from  
;             &
nbsp;            &nb
sp;             
;to &nbs
p;             
             &n
bsp;            &nbs
p;



Commission file number  1-12859



CTG RESOURCES, INC.



| 
;             &
nbsp;          Connecticut&nbs
p;             
             &n
bsp;      (State or other jurisdiction of incorporation or organization)    |  
;         06-
1466463            &
nbsp;    (I.R.S. Employer Identification No.)
|---------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------
|100 Columbus Blvd.
P.O. Box 1500 
;             &
nbsp;   Hartford,
Connecticut           &nb
sp;             
;(Address of principal executive offices) |  
;       06144-
1500            &nbs
p;(Zip code)                                



 
;             &
nbsp;            &nb
sp;             
;             &
nbsp;    (860) 727-
3000            &nbs
p;             
             &n
bsp;            &nbs
p;            (Registrant's telephone number, including area&nbs
p;code)

 
;             &
nbsp;            &nb
sp;             
;             &
nbsp;            &nb
sp;             
;             &
nbsp;            &nb
sp;             
;             &
nbsp;            &nb
sp; (Former name, former address and former fiscal
 year, if changed since last report).



Indicate by check mark&nbs
p;whether the registrant (1) has filed all re
ports required to be filed by 
Section 13 or 15(d) of the Securities Exchang
e Act of 1934 during the preceding 12 mo
nths (or for 
such shorter period that the registrant was r
equired to file such reports), and (2) has&nb
sp;been subject to 
such filing requirements for the past 90 days
 .    
Yes X No&nbs
p;

Indicate the number of&nbs
p;shares outstanding of each of the issuer's 
classes of common stock, as of
the latest practicable date (applicable only to&nb
sp;Corporate Issuers).  Number of shares of c
ommon stock
outstanding as of the close of business on&nb
sp;January 31, 2000:  8,648,029.







FINANCIAL STATEMENTS



CTG RESOURCES, INC.





The condensed financial statements
included herein have been prepared by the Company, without audit, pursuant to
the rules and regulations of the Securities and Exchange Commission.  Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations.  Although the
Company believes that the disclosures are adequate to make the information
presented not misleading, it is suggested that these condensed financial
statements be read in conjunction with the financial statements and the notes
thereto included in the Company's annual report on Form 10-K.  In the opinion of
the Company, all adjustments necessary to present fairly the consolidated
financial position of CTG Resources, Inc. as of December 31, 1999 and 1998 and
the results of its operations and its cash flows for the three months and twelve
months ended December 31, 1999 and 1998 have been included.  The results of
operations for such interim periods are not necessarily indicative of the
results for the full year.

















































"INTERIM DATA UNAUDITED"

CTG RESOURCES, INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)



|                                                     | December 31,      | September 30,     | December 31,     
|---------------------------------------------------- | ----------------- | ----------------- | -----------------
|ASSETS                                               | 1999              | 1999              | 1998             
|Plant and Equipment:                                 |                   |                   |                  
|Regulated energy                                     | $       466,930   | $       466,407   | $       450,897  
|Unregulated energy                                   | 65,782            | 65,870            | 63,202           
|Construction work in progress                        | 1,745             | 1,654             | 3,777            
|                                                     | 534,45
7          | 533,93
1          | 517,87
6         
|Less-Allowance for depreciation                      | 195,23
9          | 192,75
1          | 180,32
6         
|                                                     | 339,21
8          | 341,18
0          | 337,55
0         
|Investments, at equity                               | 12,248            | 12,449            | 11,341           
|Current Assets:                                      |                   |                   |                  
|Cash and cash equivalents                            | 1,645             | 15,097            | 981              
|Accounts and notes receivable                        | 45,044            | 35,131            | 46,470           
|Allowance for doubtful accounts                      | (4,444)           | (4,285)           | (3,389)          
|Accrued utility revenue                              | 17,913            | 3,263             | 17,892           
|Inventories                                          | 19,707            | 21,294            | 19,210           
|Prepaid expenses                                     | 5,050             | 7,449             | 5,743            
|                                                     | 84,915            | 77,949            | 86,907           
|Deferred Charges and Other Assets:                   |                   |                   |                  
|Unrecovered future taxes                             | 5,322             | 5,322             | 9,654            
|Other assets                                         | 27,920            | 29,361            | 30,976           
|                                                     | 33,242            | 34,683            | 40,630           
|                                                     | $       469,623   | $       466,261   | $       476,428  
|                                                     |                   |                   |                  
|CAPITALIZATION AND LIABILITIES                       |                   |                   |                  
|Capitalization:                                      |                   |                   |                  
|Common Stock                                         | $         67,38
6 | $         67,44
8 | $         67,44
8
|Retained Earnings                                    | 64,728            | 61,048            | 59,908           
|                                                     | 132,11
4          | 128,49
6          | 127,35
6         
|Unearned compensation -
Restricted stock awards      | (407)             | (448)             | (449)            
|Common stock equity                                  | 131,70
7          | 128,04
8          | 126,90
7         
|Preferred stock, not subject to
mandatory redemption | 858               | 862               | 879              
|Long-term debt                                       | 212,25
6          | 214,76
9          | 217,54
0         
|                                                     | 344,82
1          | 343,67
9          | 345,32
6         
|Current Liabilities:                                 |                   |                   |                  
|Current portion of long-term debt                    | 3,284             | 5,283             | 3,234            
|Notes Payable                                        | 1,800             | -                 | 15,000           
|Accounts payable and accrued expenses                | 33,397            | 33,017            | 31,705           
|Refundable purchased gas costs                       | 2,088             | 2,782             | 4,059            
|Accrued liabilities                                  | 6,873             | 5,433             | 1,001            
|                                                     | 47,442            | 46,515            | 54,999           
|Deferred Credits:                                    |                   |                   |                  
|Deferred income taxes                                | 56,643            | 55,444            | 53,169           
|Unfunded deferred income taxes                       | 5,322             | 5,322             | 9,654            
|Investment tax credits                               | 2,486             | 2,541             | 2,707            
|Refundable taxes                                     | 5,311             | 5,311             | 4,314            
|Other                                                | 7,598             | 7,449             | 6,259            
|                                                     | 77,360            | 76,067            | 76,103           
|                                                     | $       469,623   | $       466,261   | $       476,428  

"UNAUDITED"

CTG RESOURCES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands except for per share data)



|                                      | Three Months Ended                                     
|------------------------------------- | -------------------------------------------------------
|                                      |  
;        December 31,  &n
bsp;            &nbs
p;
|                                      | 1999                                                   
|                                      |                                                        
|Operating Revenues                    | $          
;87,109                                
|Less:  Cost of Energy                 | 47,883                                                 
|State Gross&
nbsp;Receipts Tax        | 2,771                                                  
|Operating Margin                      | 36,455                                                 
|                                      |                                                        
|Other Operating Expenses:             |                                                        
|Operations & maintenance expenses     | 14,109                                                 
|Depreciation                          | 5,119                                                  
|Income taxes                          | 5,690                                                  
|Other taxes                           | 1,875                                                  
|                                      | 26,793                                                 
|Operating Income                      | 9,662                                                  
|                                      |                                                        
|Other Income (Deductions):            |                                                        
|Allowance for equity funds used       |                                                        
|during construction                   | 8                                                      
|Equity in partnership earnings        | 529                                                    
|Merger Costs                          | (494)                                                  
|Other income/(deductions)             | 265                                                    
|Income Taxes                          | (158)                                                  
|                                      | 150                                                    
|Income Before Interest Charges        | 9,812                                                  
|                                      |                                                        
|Interest and Debt Expense             | 3,869                                                  
|Net Income                            | 5,943                                                  
|Less-Dividends on Preferred Stock     | 15                                                     
|Net Income Applicable to Common Stock | $          
;  5,928                               
|                                      |                                                        
|Income Per Average Share of           |                                                        
|Common Stock:                         |                                                        
|Basic                                 | $          
;    0.69                              
|Diluted                               | $          
;    0.68                              
|                                      |                                                        
|Average Common Shares Outstanding     |                                                        
|During the Period:                    |                                                        
|Basic                                 | 8,620,379                                              
|Diluted                               | 8,670,967                                              
|                                      |                                                        
|Dividends Per Share of Common Stock   | $          
;    0.26                              



"UNAUDITED"

CTG RESOURCES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands except for per share data)



|                                      | Twelve Months Ended                                    
|------------------------------------- | -------------------------------------------------------
|                                      |  
;         December 31, &n
bsp;            &nbs
p;
|                                      |                                                        
|                                      | 1999                                                   
|                                      |                                                        
|Operating Revenues                    | $        292,179&nbs
p;                                
|Less:  Cost of Energy                 | 154,591                                                
|State Gross&
nbsp;Receipts Tax        | 9,224                                                  
|Operating Margin                      | 128,364                                                
|                                      |                                                        
|Operating Expenses:                   |                                                        
|Operations & maintenance expenses     | 54,420                                                 
|Depreciation                          | 20,352                                                 
|Income taxes                          | 15,992                                                 
|Other taxes                           | 7,557                                                  
|                                      | 98,321                                                 
|Operating Income                      | 30,043                                                 
|                                      |                                                        
|Other Income (Deductions):            |                                                        
|Allowance for equity funds used       |                                                        
|during construction                   | 80                                                     
|Equity in partnership earnings        | 2,123                                                  
|Merger Costs                          | (3,698)                                                
|Other income/(deductions)             | 1,418                                                  
|Income Taxes                          | (513)                                                  
|                                      | (590)                                                  
|Income Before Interest Charges        | 29,453                                                 
|                                      |                                                        
|Interest and Debt Expense             | 15,578                                                 
|Net Income                            | 13,875                                                 
|Less-Dividends on Preferred Stock     | 61                                                     
|Net Income Applicable to Common Stock | $          
;13,814                                
|                                      |                                                        
|Income Per Average Share of           |                                                        
|Common Stock:                         |                                                        
|Basic                                 | $          
;    1.60                              
|Diluted                               | $          
;    1.60                              
|                                      |                                                        
|Average Common Shares Outstanding     |                                                        
|During the Period:                    |                                                        
|Basic                                 | 8,625,203                                              
|Diluted                               | 8,656,584                                              
|                                      |                                                        
|Dividends Per Share of Common Stock   | $          
;    1.04                              



"UNAUDITED"

CTG RESOURCES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in Thousands)



|                                                       | Three Months Ended                  
|------------------------------------------------------ | ------------------------------------
|                                                       |  
;  December 31,        &n
bsp;
|                                                       | 1999                                
|Cash Flows from Operations:                            |                                     
|Net Income                                             | $        5,943                      
|Adjustments to reconcile net income&nbs
p;to net cash: |                                     
|Depreciation and amortization                          | 5,215                               
|Provision for uncollectible&nbs
p;accounts             | 1,132                               
|Deferred income taxes, net                             | 1,144                               
|Equity in partnership earn
ings                        | (529)                               
|Change in assets and liabilities:                      |                                     
|Accounts receivable                                    | (11,186)                            
|Accrued utility revenue                                | (14,650)                            
|Inventories                                            | 1,587                               
|Purchased gas costs                                    | (694)                               
|Prepaid expenses                                       | 2,399                               
|Accounts payable and accru
ed expenses                 | 1,820                               
|Other assets/liabilities                               | 1,773                               
|Total adjustments                                      | (11,989)                            
|Net cash used in operations                            | (6,046)                             
|                                                       |                                     
|Cash Flows for Investing Activities:                   |                                     
|Capital expenditures                                   | (3,180)                             
|Cash distributions received from invest
ments          | 731                                 
|Other, net                                             | 22                                  
|Net cash used in investing activit
ies                 | (2,427)                             
|                                                       |                                     
|Cash Flows from Financing Activities:                  |                                     
|Dividends paid                                         | (2,263)                             
|Common and
preferred stock activity, net               | (4)                                 
|Issuance of long-term debt                             | -                                   
|Principal retired on long-
term debt                   | (4,512)                             
|Short-term debt                                        | 1,800                               
|Net cash provided
by/(used in) financing activities    | (4,979)                             
|Decrease in Cash and Cash Equivalents                  | (13,452)                            
|Cash and Cash Equivalents at Beginning of 
Period      | 15,097                              
|Cash and Cash Equivalents at End of Period             | $        1,645                      
|                                                       |                                     
|Supplemental Disclosures of Cash Flow Information:     |                                     
|Cash Paid During the Period for:                       |                                     
|Interest (net of amount capitalized)                   | $        4,388                      
|Income taxes                                           | $        2,719                      





"UNAUDITED"

CTG RESOURCES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in Thousands)



|                                                       | Twelve Months Ended                 
|------------------------------------------------------ | ------------------------------------
|                                                       |  
; December 31,         &n
bsp;
|                                                       | 1999                                
|Cash Flows from Operations:                            |                                     
|Net Income                                             | $      13,875                       
|Adjustments to reconcile net income&nbs
p;to net cash: |                                     
|Depreciation and amortization                          | 20,890                              
|Provision for uncollectible&nbs
p;accounts             | 5,066                               
|Deferred income taxes, net                             | 4,250                               
|Equity in partnership earn
ings                        | (2,123)                             
|Change in assets and liabilities:                      |                                     
|Accounts receivable                                    | (2,537)                             
|Accrued utility revenue                                | (21)                                
|Inventories                                            | (497)                               
|Purchased gas costs                                    | (1,971)                             
|Prepaid expenses                                       | 693                                 
|Accounts payable and accru
ed expenses                 | 7,564                               
|Other assets/liabilities                               | 3,955                               
|Total adjustments                                      | 35,269                              
|Net cash provided by operations                        | 49,144                              
|                                                       |                                     
|Cash Flows from Investing Activities:                  |                                     
|Capital expenditures                                   | (22,759)                            
|Purchase of Cogeneration Assets                        | -                                   
|Cash distributions received from invest
ments          | 1,218                               
|Other,net                                              | 737                                 
|Net cash used in investing activit
ies                 | (20,804)                            
|                                                       |                                     
|Cash Flows from Financing Activities:                  |                                     
|Dividends paid                                         | (9,055)                             
|Issuance/(repurchase) of common stock, 
net            | -                                   
|Other stock activity, net                              | (187)                               
|Issuance of long-term debt                             | -                                   
|Principal retired on long-
term debt                   | (5,234)                             
|Short-term debt                                        | (13,200)                            
|Net cash provided by/(used) in fin
ancing activities   | (27,676)                            
|Increase/(Decrease) in Cash and Cash Equivalents       | 664                                 
|Cash and Cash Equivalents at Beginning of 
Period      | 981                                 
|Cash and Cash Equivalents at End of Period             | $        1,645                      
|                                                       |                                     
|Supplemental Disclosures of Cash Flow Information:     |                                     
|Cash Paid During the Period for:                       |                                     
|Interest (net of amount&nb
sp;capitalized)             | $      13,788                       
|Income taxes                                           | $        6,669                      

"UNAUDITED"

CTG RESOURCES, INC.



NOTES TO FINANCIAL STATEMENTS

December 31, 1999

(Thousands of Dollars)





(1)       Merger with Energy East

On June 29, 1999, CTG Resources, Inc. ("the Company" or "CTG") announced that
it had entered into an Agreement and Plan of Merger with Energy East
Corporation, a New York corporation ("Energy East"), and a wholly-owned
subsidiary of Energy East, Oak Merger Co. ("Oak"), pursuant to which CTG will
merge with and into Oak (the "Merger").  The Merger is contingent, among other
things, upon the approvals of CTG's shareholders, the Connecticut Department of
Public Utility Control ("DPUC"), the United States Securities and Exchange
Commission ("SEC"), the Justice Department and the Federal Trade Commission
("FTC").

CTG's shareholders approved the Merger on October 18, 1999.  The DPUC
approved the Merger on January 19, 2000.  The Justice Department and the FTC
have taken no action with regard to the "Hart Scott Rodino" requirements and the
waiting period for the Merger has elapsed, thereby clearing another approval.
The only outstanding approval is from the SEC, which is expected to be received
by mid-summer of 2000.  The Merger can be completed once this last approval is
received.

Through December 31, 1999, the Company has incurred and expensed merger-
related costs of approximately $3,700.  The Company expects to incur additional
merger-related costs estimated at $3,300.  These costs will be expensed as they
are incurred.

(2)       Adriaen's Landing

During fiscal 1998, the Company was approached by local businesses and
government agencies regarding the development Adriaen's Landing, a site in
downtown Hartford, Connecticut, which contains the Company's Operating and
Administrative Center along with The Energy Network, Inc.'s production plant.
(The Energy Network, Inc., is a wholly owned subsidiary of the Company.)Numerous proposals have been discussed, with the most recent proposal
calling for a convention center, hotel and retail shops.  The Company, in order
to accommodate the development as it has been proposed, would be required to
relocate its administration and operating facilities.

A relocation would have a significant impact on the Company's business and
operations during the transition.  The Company believes that the Adriaen's
Landing project would be beneficial to the Greater Hartford area and provide an
opportunity for new customers to the Company.  The Company has indicated its
willingness to relocate provided that the relocation is accomplished in a way
that will not materially disadvantage the Company or its customers. This would
require the sale or exchange of some of the Company's properties and
reimbursement for the Company's expenses.  The State has indicated to the
Company that it plans to prepare the site for redevelopment before the plans are
final and that the Company will be required to relocate to allow for the site to
be prepared.  However, the State's final plans for development of this site have
not been completed, and, largely for this reason, the Company cannot assess the
impact of future developments, including any arrangement pertaining to the
funding of relocation and any related land preparation or remediation costs.

The Adriaen's Landing site, including the Company's property, contains
contaminants, some of which originated during the Company's former gas
manufacturing activities.  The Company believes that if the development
activities trigger the remediation of contamination on the Company's property,
the cost of the remediation should be regarded as part of the project
development costs.  Prior decisions of the DPUC indicate that the costs of
remediating property that is found to have been contaminated by a gas utility's
former gas manufacturing activities are generally recoverable from the utility's
customers.



(3)      Options Plan

On October 26, 1999, options to purchase 64,600 shares of CTG's common stock
were granted under the Company's Option Plan.  These options vest over three
years, beginning after the second year following their grant.  The options are
exercisable over ten years.  The exercise price of the options is $36.375 per
share.

(4)       Segment Information

The Company operates and manages its business in two segments: regulated gas-
related activities and unregulated diversified businesses.  Gas-related
activities include the purchase, distribution and sale of natural gas to on-
system residential, commercial and industrial customers and off-system sales.
Diversified businesses provide district heating and cooling services to large
buildings and building complexes in the City of Hartford.

Interim segment information is presented below.

|                              | Three Months Ended December 31,
|----------------------------- | -------------------------------
|                              | 1999                           
|                              | Gas RelatedActivities          
|Revenues:                     |                                
|External 
     revenues       | $      81,928                  
|Intersegment 
     revenues   | (877)                          
|Consolidated 
     revenues   | $      81,051                  
|                              |                                
|Consolidated 
     Net Income | $        6,466                 





|                              | Twelve Months Ended December 31,
|----------------------------- | --------------------------------
|                              | 1999                            
|                              | Gas RelatedActivities           
|Revenues:                     |                                 
|External 
     revenues       | $    270,019                    
|Intersegment 
     revenues   | (3,963)                         
|Consolidated 
     revenues   | $    266,056                    
|                              |                                 
|Consolidated 
     Net Income | $      15,208                   



|             | at December 31,      
|------------ | ---------------------
|             | 1999                 
|             | Gas RelatedActivities
|Total Assets | $   399,985          





1. Subsequent Events

Long-term Debt



On January 14, 2000, through the Connecticut Development Authority, the
Company issued $4,300 of variable rate Industrial Revenue Demand Bonds
("IRB's").  The IRB's are due in 2030 and were issued to finance the unregulated
district heating and cooling operations expansion which will serve Hartford's
Trinity College/Southside Institutions Neighborhood Alliance ("SINA")
neighborhood revitalization initiative.  At the same time, the Company also
arranged for a $4,400 letter of credit with a bank to support these IRB's.

Legal Proceedings



On February 10, 2000, the Connecticut Department of Consumer Protection
("DCP") issued a Civil Investigative Demand ("Demand") to Connecticut's local
natural gas distribution companies, including CTG's wholly owned subsidiary, the
Connecticut Natural Gas Corpration ("CNG").  This Demand requests specific
information concerning CNG's interruptible gas markets during the month of
January 2000.  The Company cannot predict the outcome of this matter.

(6)      Reclassifications



Certain prior year amounts have been reclassified to conform with current
year classifications.





"UNAUDITED"

CTG RESOURCES, INC.



MANAGEMENT'S DISCUSSION AND ANALYSIS

DECEMBER 31, 1999

(Dollars in Thousands Except for Per Share Amounts)



CTG Resources, Inc. ("the Company" or "CTG") is a holding company and parent
of the Connecticut Natural Gas Corporation ("CNG") and The Energy Network, Inc.
("TEN").  CNG is an energy provider engaged in the regulated distribution, sale
and transportation of natural gas.  TEN holds and operates, through divisions or
wholly-owned subsidiaries, CTG's unregulated, diversified businesses, which are
primarily engaged in district heating and cooling.  TEN also holds the Company's
equity investments in the Iroquois Gas Transmission System ("Iroquois") and the
Downtown Cogeneration Associates ("DCA") partnerships.



On June 29, 1999, CTG announced that it had entered into an Agreement and
Plan of Merger with Energy East Corporation, a New York corporation ("Energy
East"), and a wholly-owned subsidiary of Energy East, Oak Merger Co. ("Oak"),
pursuant to which CTG will merge with and into Oak (the "Merger"). The Merger is
contingent, among other things, upon the approvals of CTG's shareholders, the
Connecticut Department of Public Utility Control ("DPUC"), the United States
Securities and Exchange Commission ("SEC"), the Justice Department and the
Federal Trade Commission ("FTC").

CTG's shareholders approved the Merger on October 18, 1999.  The DPUC
approved the Merger on January 19, 2000.  The Justice Department and the FTC
have taken no action with regard to the "Hart Scott Rodino" requirements and the
waiting period for the Merger has elapsed, thereby clearing another approval.
The only outstanding approval is from the SEC, which is expected by mid-summer
2000.  The Merger can be completed once this last approval is received.



RESULTS OF OPERATIONS



CTG has recorded consolidated earnings of $.69 per share for the quarter and
$1.60 for the twelve months ended December 31, 1999.  The quarter includes a
charge of $(.06) and the twelve months include a charge of $(.40) per share, net
of income taxes, for merger-related costs.  Without these merger-related
expenses earnings per share would be $.75 for the quarter and $2.00 for the
twelve months ended December 31, 1999.  These compare to earnings per share of
$.66 for the quarter and $1.47 for the twelve months ended December 31,
1998.



Weather has been about the same in the first quarter of each of the two
fiscal years presented.  Yet, the Company has been able to realize an increase
in earnings from one year to the next.  The higher earnings are the result of
additional customers, more interruptible sales, higher interruptible margins and
lower operating costs.

The earnings increase between the comparable twelve months ended periods is
primarily the result of overall colder weather, which meant more sales to
higher-margin firm customers.  The benefits to quarterly earnings, described
above, added to this increase as well.

Operating Margin



The following table presents the changes in gas revenues, gas operating
margin, heating degree days (a measure of weather) and gas deliveries for all
periods reported in the statements of income:

|                                              | Three Months EndedDecember
31, | Twelve Months EndedDecember
31,
|--------------------------------------------- | ------------------------------ | -------------------------------
|                                              | 1999                           | 1998                           
|Consolidated Gas Revenues                     | $  81,051                      | $  77,055                      
|Gas Operating Margin                          | $  32,707                      | $  31,716                      
|Heating Degree Days (30-Year Normal -
 6,020) | 1,921                          | 1,930                          
|Commodity and Transportation Volumes (mmcf)   |                                |                                
|Firm Gas Sales                                | 5,798                          | 5,953                          
|Interruptible Gas Sales                       | 2,666                          | 2,584                          
|Off-System Gas Sales                          | 3,566                          | 3,906                          
|Transportation Services                       | 672                            | 1,281                          
|Total                                         | 12,702                         | 13,724                         
|                                              |                                |                                

Gas operating margin is equal to gas revenues less the cost of gas and
Connecticut gross revenues tax.  A higher operating margin was earned in both
the quarter and twelve months ended December 31, 1999, as compared to the same
periods ended December 31, 1998.  The weather impact for this first quarter of
fiscal 2000 was basically the same as for the first quarter of fiscal 1999.  The
higher operating margin is the result of additional heating customers, higher
interruptible sales and higher per-unit interruptible margins.  However, weather
was colder, overall, in the twelve months ended December 31, 1999, as compared
to 1998.  The higher operating margin between the comparable twelve months ended
periods is the result of higher firm sales, in response to the colder weather,
an increase in the number of firm heating customers, and higher per-unit
interruptible margins.

The Company continues to add firm heating customers from year to year.  Firm
sales historically follow variations in winter weather.  Some multi-unit
housing, commercial and industrial customers have migrated to firm
transportation rates.  This should not impact operating margin, because
transportation tariffs are designed to earn the same margin as the sales and
delivery of natural gas.



Weather Stabilization Program

In September 1998, CNG purchased an insurance product for the winter heating
season (November through March).  In the first quarter of fiscal 2000, CNG again
purchased this product.  The program is designed to moderate some of the effects
of abnormal winter weather on earnings.  This program helps to offset lost
margins and thus provides the Company with additional earnings in the event of
significantly warmer winter weather in return for an insurance premium which
increases in the event of significantly colder winter weather.  In the winter
heating season of fiscal 1999, most of which is included in the twelve months
ended December 31, 1999, the Company realized a net benefit from this program of
approximately $577, net of income taxes, equivalent to $.07 per share.



Operations and Maintenance Expenses



Consolidated Operating and Maintenance ("O&M") expenses are slightly
higher in the quarter and twelve months ended December 31, 1999, as compared to
the same periods ended December 31, 1998, because of additional fiscal 2000
expenses related to TEN's expanded district heating and cooling ("DHC")
operations (See"Earnings from Diversified Businesses," below.)  These new
expenses have offset an overall reduction in consolidated Operating and
Maintenance ("O&M") expenses from year to year.



The principal benefits to O&M expenses, for both the three and twelve
months ended December 31, 1999, are from lower costs recorded for compensation,
employee benefits and pension-related expenses, computer-related services,
regulatory expenses and outside purchased services.  Bad debt expenses were
lower for the quarter but higher for the twelve months ended December 31, 1999.
The benefits to O&M expenses were also partially offset by higher expenses
recorded for corporate insurance because of the premium paid for the weather
stabilization insurance program for the current winter heating season.

Compensation expenses reflect year-to-year timing in the recording of charges
related to incentive plans.  Employee Benefits costs have benefited from reduced
medical claims and a premium refund.  Pension costs reflect a reduction in
expenses resulting from favorable plan performance and changes in actuarial
assumptions in the plans.  Computer-related costs reflect changes to equipment
lease contracts.  Variations in levels of bad debt expenses typically relate to
customers' natural gas bills and actual collection levels.  Changes in levels of
expenses for outside services primarily reflect costs incurred for legal
services.

Income Taxes



Overall the Company's effective income tax rate is higher in fiscal 2000 as
compared to fiscal 1999. Non-deductible merger-related costs are the primary
reason for the higher rate.



As a result of the Internal Revenue Service ("IRS") routine audit of the
Company's 1996 Federal income tax return, the Company has received a letter from
the IRS stating that there will be no adjustments.



Other Income/(Deductions)



Merger-related costs of $494 for the quarter and $3,698 for the twelve months
ended December 31, 1999 appear as a separate line item in this section of the
statements of income.  Income tax benefits of  $269 related to some of these
costs were recorded in fiscal 1999 and are included in the income taxes caption
in Other Income/(Deductions).  The Company expects to incur additional merger-
related costs estimated at $3,300.  These costs will be expensed as they are
incurred.

Higher Other Income has been recorded in the quarter and twelve months ended
December 31, 1999 as compared to the same periods of the prior year.  Between
the comparable quarters additional income from merchandising operations and
lower promotional advertising expenses offset much of the decrease in investment
income.  The twelve months ended December 31, 1998 included costs related to the
closing of certain diversified operations.  The absence of these expenses
accounts for the majority of the year-to-year change in the twelve months ended
periods.  The Company also recorded lower promotional advertising expenses and
higher investment income in the twelve months ended December 1999.

Earnings from Diversified Businesses



TEN recorded a net loss per share of $(.01) for the quarter and net earnings
per share of  $.24 for the twelve months ended December 31, 1999.  These compare
to a net loss per share of $(.01) for the quarter and no earnings per share for
the twelve months ended December 31, 1998.

TEN's fiscal 2000 earnings are primarily impacted by new or expanded
operations.  Results for the three and twelve months ended December 31, 1999
reflect a full quarter and nearly a full year of new sales of electricity and
steam from TEN's new cogeneration facility at Hartford Hospital, which came on
line in December 1998.  In the quarter ended December 31, 1999, TEN began to
record costs and earnings for providing temporary heating facilities to the
Hartford's Trinity College/Southside Institutions Neighborhood Alliance ("SINA")
construction site.  Earnings also reflect higher steam and hot water sales for
heating, and higher chilled water sales for cooling.  However, the benefits to
earnings from the higher volumes of sales are partially offset by higher DHC
energy and production costs, primarily because of higher fuel prices.  Costs
related to new business development activities also partially offset the net
benefits to earnings realized from the sale of DHC services.

TEN's earnings from its equity interest in two partnerships are lower in the
twelve months ended December 31, 1999 as compared to 1998.  The majority of
these earnings are from Iroquois, and in August 1998 Iroquois' approved tariffs
allowed by the Federal Energy Regulatory Commission were reduced, resulting in
lower income.  DCA is the second partnership interest from which TEN derives
earnings.  These earnings, which were $94 for the quarter and $285 for the
twelve months ended December 31, 1999, will end when the DCA ceases operations
at the completion of the buyouts of its energy contracts (See "Energy Contract
Buyouts," below.).



MATERIAL CHANGES IN FINANCIAL CONDITION



Cash Flows



Negative cash flows from operations are frequently experienced during the
quarter ended December of each fiscal year, which begins the winter heating
season.  This occurs because the Company must pay for large quantities of
natural gas in advance of the receipt of payments from customers.  This lag
between when gas is consumed and when payment for it is received creates the
need to provide cash for operations from other sources.

In the first quarter of fiscal 2000, available cash on hand and short-term
borrowings provided working capital for operations and funded dividends,
construction expenditures and the retirement of long-term debt.  Proceeds from
long-term debt issued in the first quarter of fiscal 1999 were used to refinance
short-term debt, to retire long-term debt, to provide working capital, and to
fund capital expenditures and dividends.

In the twelve months ended December 31, 1999, cash from operations funded
construction activities and dividends and the retirement of long-term and short-
term debt.  In the twelve months ended December 31, 1998 long-term debt
refinanced short-term borrowings and added to cash from operations for working
capital and to fund construction and dividends.



Financing Activities

In October 1999 the Company exercised its option to redeem $2,000 in
principal of its 9.16%, Series AA First Mortgage Bonds in addition to the
scheduled redemption of $2,500, for a total of $4,500.

In the first quarter of fiscal 2000, the Company renewed TEN's expiring 364-
day, $10,000 line of credit through September 2000.

Options Plan

On October 26, 1999, options to purchase 64,600 shares of CTG's common stock
were granted under the Company's Option Plan.  These options vest over three
years, beginning after the second year following their grant.  The options are
exercisable over ten years.  The exercise price of the options is $36.375 per
share.

Regulatory Proceedings



CNG filed a general rate case application on November 10, 1999, requesting an
increase to its base revenues of $15,700 or 8.37 %. One element of the rate case
is an alternative ratemaking proposal that would freeze customers' base rates,
provide for sharing between customers and the Company of margins earned over
benchmark levels and specify the terms of the ongoing monitoring of the
Company's earnings by the DPUC.  CNG has also proposed a weather normalization
adjustment clause to mitigate the effects of weather volatility on earnings.
The DPUC has divided its review of this case between revenue requirements and
rate design.  A decision regarding revenue requirements is expected from the
DPUC in May 2000.  The DPUC's decision will be implemented by adjusting current
rates.

The rate design issues will be addressed as part of a second phase of a
regulatory review of natural gas deregulation, which began in 1996.  In this
second phase, the DPUC is continuing to address the potential deregulation of
the residential natural gas sales market in Connecticut and the future role of
Connecticut's local natural gas distribution companies ("LDCs") in natural gas
commodity sales.  Throughout this second phase, CNG has been examining its own
rate structure in this new context, to determine its future applicability in an
unbundled environment where sales and delivery services may be purchased
separately by all customers.  The Company cannot predict the outcome of these
proceedings.

Environmental Matters

In the ordinary course of business, the Company may incur costs to remediate
environmental contaminants related to natural gas activity.  In those instances
the Company expects that the remediation costs will be recoverable in rates.

In August 1998, the Company received a notice of violation ("NOV") from the
Connecticut Department of Environmental Protection ("DEP") regarding a number of
areas on noncompliance.  The Company submitted the required compliance report in
September 1998.  In April 1999, the DEP provided the Company with a draft
Consent Order and informed the Company, by letter, that the Company's actions in
response to the NOV were sufficient to correct the violations.  The Company
signed a Consent Order resolving the NOV in January 2000.  The Consent Order
requires the Company to continue certain activities in accordance with DEP
requirements and to pay a fee of $31.

Energy Contract Buyouts

TEN has been a 50% partner in the DCA, a single purpose entity operating a
4.2-megawatt dual-fuel gas turbine generator which has supplied electricity to a
local electric utility under an Energy Purchase Agreement ("EPA") and steam to
TEN's wholly-owned DHC subsidiary, HSC, under a Steam Supply Agreement ("SSA").
Because the electric utility and HSC were both able to obtain energy at a lower
cost than that which they pay under these agreements, in March 1999, TEN and its
partners in the DCA agreed to terminate both the EPA and SSA and negotiated
terms for the buy out of each of these agreements.  Under the terms of the
agreements, which require DPUC approval, HSC will pay $5,500 to the utility to
buy out of the SSA.  HSC's termination of the SSA should benefit HSC and its
customers by lower future production costs, but will reduce TEN's earnings from
its partnership interest in DCA.  Assuming DPUC approval, DCA expects the
buyouts to be completed in fiscal 2000.

Adriaen's Landing



During fiscal 1998, the Company was approached by local businesses and
government agencies regarding the development Adriaen's Landing, a site in
downtown Hartford, Connecticut, which contains the Company's Operating and
Administrative Center along with TEN's DHC production plant.  Numerous proposals
have been discussed, with the most recent proposal calling for a convention
center, hotel and retail shops.  The Company, in order to accommodate the
development as it has been proposed, would be required to relocate its
administration and operating facilities.

A relocation would have a significant impact on the Company's business and
operations during the transition.  The Company believes that the Adriaen's
Landing project would be beneficial to the Greater Hartford area and provide an
opportunity for new customers to the Company.  The Company has indicated its
willingness to relocate provided that the relocation is accomplished in a way
that will not materially disadvantage the Company or its customers.  This would
require the sale or exchange of some of the Company's properties and
reimbursement for the Company's expenses.  The State has indicated to the
Company that it plans to prepare the site for redevelopment before the plans are
final and that the Company will be required to relocate to allow for the site to
be prepared.  However, the State's final plans for development of this site have
not been completed, and, largely for this reason, the Company cannot assess the
impact of future developments, including any arrangement pertaining to the
funding of relocation and any related land preparation or remediation costs.

The Adriaen's Landing site, including the Company's property, contains
contaminants, some of which originated during the Company's former gas
manufacturing activities.  The Company believes that if the development
activities trigger the remediation of contamination on the Company's property,
the cost of the remediation should be regarded as part of the project
development costs.  Prior decisions of the DPUC indicate that the costs of
remediating property that is found to have been contaminated by a gas utility's
former gas manufacturing activities are generally recoverable from the utility's
customers.



YEAR 2000 COMPLIANCE

CTG 's State of Readiness

CTG Resources, Inc. (CTG, parent company of Connecticut Natural Gas
Corporation and The Energy Network, Inc.) prepared for Year 2000 ("Y2K") issues
for a number of years.  In 1989, CTG started the implementation of a Long-Range
Information Systems Plan that addressed the replacement or redevelopment of all
key CTG applications.  All systems replaced or redeveloped since 1989 were
required to be Y2K ready.  In January 1998, a task force was organized to
address all Y2K issues throughout CTG operations. The task force, headed by a
Y2K compliance officer, was comprised of individuals from every business unit
within CTG and was charged with assembling an inventory of date impacted
systems, identifying critical vendors and customers for readiness, prioritizing
systems that were not ready, identifying critical dates for readiness,
developing and executing test plans for all critical high priority application
programs and embedded technology, developing contingency plans for vendors and
systems that were not ready, and certifying that all systems and critical
vendors were ready.  All of the above-noted activities of the task force, with
the exception of developing contingency plans and the system testing and
certification phases, were completed during the last quarter of calendar year
1998.  Initial contingency plans were completed during the first quarter of
calendar 1999.  These contingency plans were finalized and updated throughout
1999 as needed.  The testing and certification of systems critical to CTG's
operations were completed as of October 1, 1999.

CTG transitioned into the new millennium with no significant Y2K
problems.

Costs to Address CTG's Year 2000 Issues

CTG does not foresee incurring significant future incremental costs, nor has
it incurred significant costs, relating to the Y2K issue.  There have been no
material changes in total costs associated with the Y2K issue during the quarter
ended December 1999.  In accordance with the aforementioned Long-Range
Information Systems Plan, CTG has been replacing or redeveloping its major
computer applications over the past decade.

Risks of CTG's Year 2000 Issues

CTG has not identified or encountered any known Y2K-related event, trend,
demand, commitment, or uncertainty which would likely have a material effect on
CTG's business, results of operations, liquidity, capital resources or financial
condition.

No third parties with which CTG has significant business relationships have
disclosed problems, which would indicate the potential for future business
interruptions.

Future natural gas supply disruptions are not expected due to Y2K issues.
CTG's gas supply is substantially dependent upon natural gas pipelines and other
third party natural gas suppliers that it has no control over. None of the
pipelines or suppliers has experienced gas supply delivery problems as a result
of Y2K issues; therefore, CTG expects to be able to reliably supply customers in
the future.  CTG has and will continue to monitor pipelines and suppliers to
examine their Y2K readiness.

CTG believes its planning has been adequate to secure futureY2K readiness of
critical systems and operations.  CTG is not able to predict all the factors
that could cause actual results to differ materially from its current
expectations regarding its Y2K readiness.  However, if CTG and/or third parties
with which CTG has a significant business relationship fail to continue Y2K
readiness with respect to critical systems or operations, there could be a
material adverse effect on CTG's results of operations and financial
position.

CTG transitioned into the new millennium with no significant Y2K
problems.

CTG's Contingency Plans

CTG's contingency plans included selecting alternate vendors that were Y2K
ready, using back-up systems which do not rely on computers, and obtaining and
stocking critical parts and materials.  Critical dates for readiness were
established for systems and vendors utilized throughout CTG.  These critical
dates were established in order to allow sufficient time for CTG to either
remediate any date-sensitive features in existing computer software and
applications critical to CTG's business or to acquire services and products from
alternate providers which are Y2K ready.  Contingency plans will be kept up to
date in the unlikely event of future Y2K related issues.

CTG transitioned into the new millennium with no significant Y2K
problems.



SUBSEQUENT EVENTS

Long-term Debt

On January 14, 2000, through the Connecticut Development Authority, the
Company issued $4,300 of variable rate Industrial Revenue Demand Bonds
("IRB's").  The IRB's are due in 2030 and were issued to finance the unregulated
DHC operations expansion which will serve Hartford's Trinity College/Southside
Institutions Neighborhood Alliance ("SINA") neighborhood revitalization
initiative.  At the same time, the Company also arranged for a $4,400 letter of
credit with a bank to support these IRB's.

Legal Proceedings



On February 10, 2000, the Connecticut Department of Consumer Protection
("DCP") issued a Civil Investigative Demand ("Demand") to Connecticut's local
natural gas distribution companies, including CTG's wholly owned subsidiary, the
Connecticut Natural Gas Corpration ("CNG").  This Demand requests specific
information concerning CNG's interruptible gas markets during the month of
January 2000.  The Company cannot predict the outcome of this matter.



FORWARD LOOKING INFORMATION



This report and other Company reports, including filings with the Securities
and Exchange Commission, press releases and oral statements, contain forward
looking statements.  Such statements include but are not limited to disclosures
about the Company's merger with Energy East, Adriaen's Landing, future operating
margin, the Weather Stabilization Program, changes in operating and maintenance
expenses, Year 2000 Compliance, cash flows, DHC expansion, energy contract
buyouts, environmental matters and compliance and regulatory proceedings.



Forward looking statements are made based upon management's expectations and
beliefs concerning future developments and their potential effect upon the
Company.  The Company cautions that, while it believes such statements to be
reasonable and makes them in good faith, actual results almost always vary from
expectations, and the differences between assumed facts or basis and actual
results can be material, depending upon the circumstances.  Investors should be
aware of important factors that could have a material impact on future results.
These factors include, but are not limited to, weather, the regulatory
environment, legislative and judicial developments which affect the Company or
significant groups of its customers, economic conditions in the Company's
service territory, fluctuations in energy-related commodity prices, customer
conservation efforts, financial market conditions, interest rate fluctuations,
customers' preferences, unforeseen competition, federal regulatory approvals,
and other uncertainties, all of which are difficult to predict and beyond the
control of the Company.

PART II - OTHER INFORMATION



Item 4.   Submission of Matters to a Vote of Security
Holders

1. A special meeting of the shareholders of CTG Resources, Inc. ("CTG")was held
on October 18, 1999.
2. Not Applicable
3. The shareholders were asked to vote on a proposal to approve the merger
agreement among CTG, Energy East Corporation and Oak Merger Co., a wholly owned
subsidiary of Energy East (the "Merger").  The Merger was approved by the
shareholders.

The Vote on this matter was:



|        | Common Shares
|------- | -------------
|For     | 6,663,409    
|Against | 197,721      
|Abstain | 138,780      

The total number of shares of CTG Common Stock, no par, outstanding as of
August 23, 1999, the record date, were 8,649,029.

(d)  Not Applicable



Item 6.  Exhibits and Reports on Form 8-K

(a)       Exhibits



|99(1)   | Exhibit Index                                                                                                                                                                                                                                        
|------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10(143) | Second Amendment to Connecticut Natural Gas Corporation Officer's Retirement
Plan, dated
March 1, 1999                                                                                                                                               
|10(144) | Second Amendment to Connecticut Natural Gas Corporation Deferred Compensation
Plan,
dated December 14, 1999                                                                                                                                          
|10(145) | Third Amendment to Connecticut Natural Gas Corporation Deferred Compensation
Plan,
dated December 14, 1999                                                                                                                                           
|10(146) | Fourth Amendment to Connecticut Natural Gas Corporation Deferred Compensation
Plan,
dated November 30, 1999                                                                                                                                          
|10(147) | Thirteenth Amendment to Connecticut Natural Gas Corporation Employee Savings
Plan,
dated December 14, 1999                                                                                                                                           
|10(148) | Thirteenth Amendment to Connecticut Natural Gas Corporation Union Employee
Savings Plan,
dated December 14, 1999                                                                                                                                     
|10(149) | Third Amendment to CNG Nonemployee Directors' Fee Plan, dated November 30,
1999                                                                                                                                                                      
|10(150) | Performance Share Agreement (Under the Connecticut Natural Gas Corporation
Executive
Restricted Stock Plan), dated May 14, 1999                                                                                                                      
|10(151) | Assignment of Rights to Payments and Consent to Assignment, between The
Energy Network, 
Inc. and the Downtown Cogeneration Associates Limited Partnership, dated
December 29, 
1999                                                                 
|10(152) | Steam Supply Termination Agreement between The Hartford Steam Company and the

Downtown Cogeneration Associates Limited Partnership, dated December 29,
1999                                                                                         
|10(153) | Partnership Termination Agreement among The Energy Network, Inc., the
Hartford
Cogeneration Associates Limited Partnership, the Downtown Cogeneration
Associates
Limited Partnership and Independent Energy Operations, Inc., dated December 29,
1999
|27      | Financial Data Schedule                                                                                                                                                                                                                              





(b)       There were no reports filed
under Form 8-K in the quarter ending December 31, 1999.





SIGNATURE





Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly authorized.





|                        | CTG RESOURCES, INC.                                                                                                                                                                                                      
|----------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Date: February 14, 2000 | By: S/ Andrew H.
Johnson            &
nbsp;            &nb
sp;
            (Andrew
H. Johnson)
       Treasurer and Chief Accounting
Officer
       (On behalf of the registrant and as

       Chief Accounting Officer)