UNITED STATES SECURITIES AND EXCHANGE COMMISSION

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  June 30, 2000



OR



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



For the transition period from to



Commission file number  1-12859



CTG RESOURCES, INC.



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



(860) 727-3000         
                                          
              (Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report).



Indicate by check mark whether the registrant (1) has filed all reports required to be filed by 
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for 
such shorter period that the registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.     Yes X No

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of
the latest practicable date (applicable only to Corporate Issuers).  Number of shares of common stock
outstanding as of the close of business on August 4, 2000:  8,620,212.







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 June 30, 2000 and 1999 and the results of its operations and its cash flows for the three months, nine months and
twelve months ended June 30, 2000 and 1999 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)

|                                                     | June 30,         | September 30,    | June 30,        
|---------------------------------------------------- | ---------------- | ---------------- | ----------------
|ASSETS                                               | 2000             | 1999             | 1999            
|Plant and Equipment:                                 |                  |                  |                 
|Regulated energy                                     | $       474,352  | $       466,407  | $       457,625 
|Unregulated energy                                   | 66,653           | 65,870           | 63,118          
|Construction work in progress                        | 4,301            | 1,654            | 5,956           
|                                                     | 545,306          | 533,931          | 526,699         
|Less-Allowance for depreciation                      | 204,229          | 192,751          | 189,059         
|                                                     | 341,077          | 341,180          | 337,640         
|Investments, at equity                               | 11,221           | 12,449           | 12,476          
|Current Assets:                                      |                  |                  |                 
|Cash and cash equivalents                            | 34,507           | 15,097           | 36,013          
|Invested Construction Funds                          | 2,467            | -                | -               
|Accounts and notes receivable                        | 41,058           | 35,131           | 37,177          
|Allowance for doubtful accounts                      | (5,604)          | (4,285)          | (5,009)         
|Accrued utility revenue                              | 4,154            | 3,263            | 3,536           
|Inventories                                          | 18,392           | 21,294           | 14,918          
|Prepaid expenses                                     | 4,499            | 7,449            | 5,493           
|                                                     | 99,473           | 77,949           | 92,128          
|Deferred Charges and Other Assets:                   |                  |                  |                 
|Unrecovered future taxes                             | 9,291            | 5,322            | 6,781           
|Other assets                                         | 25,935           | 29,361           | 28,416          
|                                                     | 35,226           | 34,683           | 35,197          
|                                                     | $       486,997  | $       466,261  | $       477,441 
|                                                     |                  |                  |                 
|CAPITALIZATION AND LIABILITIES                       |                  |                  |                 
|Capitalization:                                      |                  |                  |                 
|Common Stock                                         | $         67,386 | $         67,448 | $         67,448
|Retained Earnings                                    | 73,687           | 61,048           | 66,841          
|                                                     | 141,073          | 128,496          | 134,289         
|Unearned compensation -                              |                  |                  |                 
|Restricted stock awards                              | (325)            | (448)            | (510)           
|Common stock equity                                  | 140,748          | 128,048          | 133,779         
|Preferred stock, not subject to mandatory redemption | 850              | 862              | 879             
|Long-term debt                                       | 216,530          | 214,769          | 217,516         
|                                                     | 358,128          | 343,679          | 352,174         
|Current Liabilities:                                 |                  |                  |                 
|Current portion of long-term debt                    | 3,287            | 5,283            | 3,237           
|Accounts payable and accrued expenses                | 29,033           | 33,017           | 25,232          
|Refundable purchased gas costs                       | 5,931            | 2,782            | 10,617          
|Accrued liabilities                                  | 1,638            | 5,433            | 7,341           
|                                                     | 39,889           | 46,515           | 46,427          
|Deferred Credits:                                    |                  |                  |                 
|Deferred income taxes                                | 62,352           | 55,444           | 56,635          
|Unfunded deferred income taxes                       | 9,291            | 5,322            | 6,781           
|Investment tax credits                               | 2,376            | 2,541            | 2,596           
|Refundable taxes                                     | 6,273            | 5,311            | 5,348           
|Other                                                | 8,688            | 7,449            | 7,480           
|                                                     | 88,980           | 76,067           | 78,840          
|                                                     | $       486,997  | $       466,261  | $       477,441 

"UNAUDITED"

CTG RESOURCES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands except for per share data)



|                                             | Three Months Ended 
|-------------------------------------------- | -------------------
|                                             | June 30,           
|                                             | 2000               
|                                             |                    
|Operating Revenues                           | $          66,717  
|Less:  Cost of Energy                        | 39,257             
|State Gross Receipts Tax                     | 1,803              
|Operating Margin                             | 25,657             
|                                             |                    
|Other Operating Expenses:                    |                    
|Operations & maintenance expenses            | 10,884             
|Depreciation                                 | 5,452              
|Income taxes                                 | 2,416              
|Other taxes                                  | 1,870              
|                                             | 20,622             
|Operating Income                             | 5,035              
|                                             |                    
|Other Income/(Deductions):                   |                    
|Equity in partnership earnings               | 585                
|Merger Costs                                 | (192)              
|Other income/(deductions)                    | (1,182)            
|Income Taxes                                 | 257                
|                                             | (532)              
|Income Before Interest Charges               | 4,503              
|                                             |                    
|Interest and Debt Expense                    | 3,362              
|Net Income/(Loss)                            | 1,141              
|Less-Dividends on Preferred Stock            | 15                 
|Net Income/(Loss) Applicable to Common Stock | $            1,126 
|                                             |                    
|Income/(Loss) Per Average Share of           |                    
|Common Stock:                                |                    
|Basic                                        | $              0.13
|Diluted                                      | $              0.13
|                                             |                    
|Average Common Shares Outstanding            |                    
|During the Period:                           |                    
|Basic                                        | 8,620,212          
|Diluted                                      | 8,676,636          
|                                             |                    
|Dividends Per Share of Common Stock          | $              0.26



"UNAUDITED"

CTG RESOURCES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands except for per share data)



|                                      | Nine Months Ended  
|------------------------------------- | -------------------
|                                      | June 30,           
|                                      |                    
|                                      | 2000               
|                                      |                    
|Operating Revenues                    | $        280,247   
|Less:  Cost of Energy                 | 156,757            
|State Gross Receipts Tax              | 8,897              
|Operating Margin                      | 114,593            
|                                      |                    
|Operating Expenses:                   |                    
|Operations & maintenance expenses     | 41,834             
|Depreciation                          | 15,898             
|Income taxes                          | 21,214             
|Other taxes                           | 5,653              
|                                      | 84,599             
|Operating Income                      | 29,994             
|                                      |                    
|Other Income/(Deductions):            |                    
|Equity in partnership earnings        | 1,938              
|Merger Costs                          | (649)              
|Other income                          | 831                
|Income Taxes                          | (788)              
|                                      | 1,332              
|Income Before Interest Charges        | 31,326             
|                                      |                    
|Interest and Debt Expense             | 11,897             
|Net Income                            | 19,429             
|Less-Dividends on Preferred Stock     | 45                 
|Net Income Applicable to Common Stock | $          19,384  
|                                      |                    
|Income Per Average Share of           |                    
|Common Stock:                         |                    
|Basic                                 | $              2.25
|Diluted                               | $              2.24
|                                      |                    
|Average Common Shares Outstanding     |                    
|During the Period:                    |                    
|Basic                                 | 8,620,212          
|Diluted                               | 8,672,910          
|                                      |                    
|Dividends Per Share of Common Stock   | $              0.78



"UNAUDITED"

CTG RESOURCES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands except for per share data)



|                                      | Twelve Months Ended
|------------------------------------- | -------------------
|                                      | June 30,           
|                                      |                    
|                                      | 2000               
|                                      |                    
|Operating Revenues                    | $        320,091   
|Less:  Cost of Energy                 | 177,613            
|State Gross Receipts Tax              | 9,887              
|Operating Margin                      | 132,591            
|                                      |                    
|Operating Expenses:                   |                    
|Operations & maintenance expenses     | 54,876             
|Depreciation                          | 20,998             
|Income taxes                          | 19,493             
|Other taxes                           | 7,488              
|                                      | 102,855            
|Operating Income                      | 29,736             
|                                      |                    
|Other Income/(Deductions):            |                    
|Equity in partnership earnings        | 2,397              
|Merger Costs                          | (1,806)            
|Other income                          | 840                
|Income Taxes                          | (270)              
|                                      | 1,161              
|Income Before Interest Charges        | 30,897             
|                                      |                    
|Interest and Debt Expense             | 14,997             
|Net Income                            | 15,900             
|Less-Dividends on Preferred Stock     | 60                 
|Net Income Applicable to Common Stock | $          15,840  
|                                      |                    
|Income Per Average Share of           |                    
|Common Stock:                         |                    
|Basic                                 | $              1.84
|Diluted                               | $              1.83
|                                      |                    
|Average Common Shares Outstanding     |                    
|During the Period:                    |                    
|Basic                                 | 8,621,833          
|Diluted                               | 8,674,090          
|                                      |                    
|Dividends Per Share of Common Stock   | $              1.04





"UNAUDITED"

CTG RESOURCES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in Thousands)



|                                                  | Three Months Ended
|------------------------------------------------- | ------------------
|                                                  | June 30,          
|                                                  | 2000              
|Cash Flows from Operations:                       |                   
|Net Income/(Loss)                                 | $        1,141    
|Adjustments to reconcile income to net cash:      |                   
|Depreciation and amortization                     | 5,602             
|Provision for uncollectible accounts              | 971               
|Deferred income taxes, net                        | 2,305             
|Equity in partnership earnings                    | (585)             
|Change in assets and liabilities:                 |                   
|Accounts receivable                               | 19,933            
|Accrued utility revenue                           | 7,331             
|Inventories                                       | (8,188)           
|Purchased gas costs                               | (3,072)           
|Prepaid expenses                                  | 854               
|Accounts payable and accrued expenses             | (20,948)          
|Other assets/liabilities                          | (2,200)           
|Total adjustments                                 | 2,003             
|Net cash provided by operations                   | 3,144             
|                                                  |                   
|Cash Flows for Investing Activities:              |                   
|Capital expenditures                              | (7,958)           
|Cash distributions received from investments      | 1,948             
|Other, net                                        | 524               
|Net cash used in investing activities             | (5,486)           
|                                                  |                   
|Cash Flows from Financing Activities:             |                   
|Dividends paid                                    | (2,263)           
|Other stock activity, net                         | (4)               
|Principal retired on long-term debt               | (11)              
|Net cash used in financing activities             | (2,278)           
|Increase/(Decrease) in Cash and Cash Equivalents  | (4,620)           
|Cash and Cash Equivalents at Beginning of Period  | 41,594            
|Cash and Cash Equivalents at End of Period        | $      36,974     
|                                                  |                   
|Supplemental Disclosures of Cash Flow Information |                   
|Cash Paid During the Period for:                  |                   
|Interest (net of amount capitalized)              | $        4,252    
|Income taxes                                      | $        8,150    





"UNAUDITED"

CTG RESOURCES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in Thousands)



|                                                   | Nine Months Ended
|-------------------------------------------------- | -----------------
|                                                   | June 30,         
|                                                   | 2000             
|Cash Flows from Operations:                        |                  
|Net Income                                         | $      19,429    
|Adjustments to reconcile net income to net cash:   |                  
|Depreciation and amortization                      | 16,321           
|Provision for uncollectible accounts               | 4,097            
|Deferred income taxes, net                         | 7,706            
|Equity in partnership earnings                     | (1,938)          
|Change in assets and liabilities:                  |                  
|Accounts receivable                                | (8,808)          
|Accrued utility revenue                            | (891)            
|Inventories                                        | 2,902            
|Purchased gas costs                                | 3,149            
|Prepaid expenses                                   | 2,950            
|Accounts payable and accrued expenses              | (7,779)          
|Other assets/liabilities                           | 4,405            
|Total adjustments                                  | 22,114           
|Net cash provided by operations                    | 41,543           
|                                                   |                  
|Cash Flows for Investing Activities:               |                  
|Capital expenditures                               | (15,064)         
|Cash distributions received from investments       | 2,679            
|Other, net                                         | (244)            
|Net cash used in investing activities              | (12,629)         
|                                                   |                  
|Cash Flows from Financing Activities:              |                  
|Dividends paid                                     | (6,790)          
|Other stock activity, net                          | (12)             
|Issuance of long-term debt                         | 4,300            
|Principal retired on long-term debt                | (4,535)          
|Short-term debt                                    | -                
|Net cash used in financing activities              | (7,037)          
|Increase in Cash and Cash Equivalents              | 21,877           
|Cash and Cash Equivalents at Beginning of Period   | 15,097           
|Cash and Cash Equivalents at End of Period         | $      36,974    
|                                                   |                  
|Supplemental Disclosures of Cash Flow Information: |                  
|Cash Paid During the Period for:                   |                  
|Interest (net of amount capitalized)               | $      12,310    
|Income taxes                                       | $      12,589    





"UNAUDITED"

CTG RESOURCES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in Thousands)



|                                                    | Twelve Months Ended
|--------------------------------------------------- | -------------------
|                                                    | June 30,           
|                                                    | 2000               
|Cash Flows from Operations:                         |                    
|Net Income                                          | $      15,900      
|Adjustments to reconcile net income to net cash:    |                    
|Depreciation and amortization                       | 21,529             
|Provision for uncollectible accounts                | 4,799              
|Deferred income taxes, net                          | 6,423              
|Equity in partnership earnings                      | (2,397)            
|Change in assets and liabilities:                   |                    
|Accounts receivable                                 | (8,070)            
|Accrued utility revenue                             | (618)              
|Inventories                                         | (3,474)            
|Purchased gas costs                                 | (4,686)            
|Prepaid expenses                                    | 994                
|Accounts payable and accrued expenses               | (1,902)            
|Other assets/liabilities                            | 3,273              
|Total adjustments                                   | 15,871             
|Net cash provided by operations                     | 31,771             
|                                                    |                    
|Cash Flows from Investing Activities:               |                    
|Capital expenditures                                | (24,217)           
|Cash distributions received from investments        | 3,166              
|Other, net                                          | 268                
|Net cash used in investing activities               | (20,783)           
|                                                    |                    
|Cash Flows from Financing Activities:               |                    
|Dividends paid                                      | (9,054)            
|Issuance/(repurchase) of common stock, net          | -                  
|Other stock activity, net                           | (37)               
|Issuance of long-term debt                          | 4,300              
|Principal retired on long-term debt                 | (5,236)            
|Short-term debt                                     | -                  
|Net cash provided by/(used) in financing activities | (10,027)           
|Increase in Cash and Cash Equivalents               | 961                
|Cash and Cash Equivalents at Beginning of Period    | 36,013             
|Cash and Cash Equivalents at End of Period          | $      36,974      
|                                                    |                    
|Supplemental Disclosures of Cash Flow Information:  |                    
|Cash Paid During the Period for:                    |                    
|Interest (net of amount capitalized)                | $      15,936      
|Income taxes                                        | $      14,089      



"UNAUDITED"

CTG RESOURCES, INC.



NOTES TO FINANCIAL STATEMENTS

June 30, 2000

(Dollars in Thousands)





(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 only outstanding approval for the Merger, which is expected to be received in late August, 2000, is from the United States Securities and Exchange Commission.  The
Merger should be completed shortly after receiving this last approval.

Through June 30, 2000, the Company has incurred and expensed merger-related costs of approximately $3,900.  The Company expects to incur additional merger-related costs estimated at $3,100.  These costs will be expensed as they are incurred.

(2)       Adriaen's Landing

On May 2, 2000, the Connecticut General Assembly enacted legislation authorizing the construction of a convention center and other facilities in a development in Hartford known as Adriaen's Landing.  The Company's Administrative and Operation
facilities occupy a large portion of this development site.  As a result of the legislation, these Company facilities and the associated property will be transferred to the State or a similar entity and the Company will be required to relocate.

The Company believes that the Adriaen's Landing project will be beneficial to the Greater Hartford area and provide an opportunity to obtain new customers for the Company, but the relocation will have a significant impact on the Company's business and
operations during the transition.  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. The Company is negotiating with the State
over the terms and conditions under which the Company's relocation will be achieved.  Inasmuch as these discussions are currently pending, the Company cannot assess the impact of this activity, including any arrangement pertaining to the funding of
relocation and any related land preparation or possible environmental 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)     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, transportation and sale of natural gas to on-system
residential, commercial and industrial customers and off-system sales.  Diversified businesses primarily 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 June 30,
|----------------------------- | ---------------------------
|                              | 2000                       
|                              | Gas RelatedActivities      
|Revenues:                     |                            
|External 
     revenues       | $      61,881              
|Intersegment 
     revenues   | (1,267)                    
|Consolidated 
     revenues   | $      60,614              
|                              |                            
|Consolidated 
     Net Income | $        1,214             



|                              | Nine Months Ended June 30,
|----------------------------- | --------------------------
|                              | 2000                      
|                              | Gas RelatedActivities     
|Revenues:                     |                           
|External 
     revenues       | $    263,655              
|Intersegment 
     revenues   | (3,327)                   
|Consolidated 
     revenues   | $    260,328              
|                              |                           
|Consolidated 
     Net Income | $      19,488             





|                              | Twelve Months Ended June 30,
|----------------------------- | ----------------------------
|                              | 2000                        
|                              | Gas RelatedActivities       
|Revenues:                     |                             
|External 
     revenues       | $    297,029                
|Intersegment 
     revenues   | (4,653)                     
|Consolidated 
     revenues   | $    292,376                
|                              |                             
|Consolidated 
     Net Income | $      15,917               



|             | at June 30,          
|------------ | ---------------------
|             | 2000                 
|             | Gas RelatedActivities
|Total Assets | $   399,983          





(4)      Reclassifications



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



"UNAUDITED"

CTG RESOURCES, INC.



MANAGEMENT'S DISCUSSION AND ANALYSIS

JUNE 30, 2000

(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 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 only outstanding approval for the Merger, which is expected in late August, 2000, is from the United States Securities and Exchange Commission.  The Merger should be completed shortly after receiving this
last approval.



RESULTS OF OPERATIONS



CTG reported consolidated earnings per share of $.13 for the quarter, $2.25 for the nine months and  $1.84 for the twelve months ended June 30, 2000. These compare to a loss per share of $(.09) for the quarter, and earnings per share of $1.98 for the
nine months and $1.65 for the twelve months ended June 30, 1999.  The fiscal 2000 three, nine and twelve months ended amounts include a charge of $(.02), $(.08) and $(.19) per share, net of income taxes, for merger-related costs.  Without these
merger-related expenses, earnings per share would have been $.15 for the quarter, $2.33 for the nine months and $2.03 for the twelve months ended June 30, 2000.  These would compare to similarly adjusted earnings per share of $.13 for the quarter, $2.20
for the nine months and $1.87 for the twelve months ended June 30, 1999.



Weather during the winter heating season has been about the same in each of the two fiscal years presented.  Yet, setting aside the impact of merger-related costs, the Company has been able to realize an increase in earnings from one year to the next.
The higher earnings are primarily the result of the significantly higher net benefit realized from weather stabilization insurance, higher interruptible margins and additional heating customers.

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
 EndedJune 30, | Nine Months
 EndedJune 30, | Twelve Months
 EndedJune 30,
|------------------------------------------------ | --------------------------- | -------------------------- | ----------------------------
|                                                 | 2000                        | 1999                       | 2000                        
|Consolidated Gas Revenues                        | $  60,614                   | $  46,531                  | $260,328                    
|Gas Operating Margin                             | $  21,887                   | $  20,572                  | $102,376                    
|Heating Degree Days
    (30-Year Normal - 6,018) | 807                         | 622                        | 5,613                       
|Commodity and Transportation
    Volumes (mmcf)  |                             |                            |                             
|Firm Gas Sales                                   | 3,136                       | 2,725                      | 18,428                      
|Interruptible Gas Sales                          | 1,841                       | 1,765                      | 7,157                       
|Off-System Gas Sales                             | 3,559                       | 3,097                      | 11,656                      
|Transportation Services                          | 1,308                       | 1,622                      | 4,944                       
|Total                                            | 9,844                       | 9,209                      | 42,185                      
|                                                 |                             |                            |                             

Gas operating margin is equal to gas revenues less the cost of gas and Connecticut gross revenues tax.  A higher operating margin was earned throughout fiscal 2000, as compared to the same periods of fiscal 1999. The higher operating margin is
primarily the result of additional heating customers and higher per-unit interruptible margins generated by higher oil-price-related tariffs.  The cooler late April, May and June 2000 slightly extended the heating season into the third quarter of this
fiscal year and resulted in moderately higher firm gas sales.

Much public attention has been directed toward higher natural gas prices in fiscal 2000.  However, the financial impact to the Company is minimal because of the structure of its current rates.  Firm natural gas rates include a Purchased Gas Adjustment,
which flows changes in gas prices through to customers.

The Company continues to add a considerable number of 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

At the beginning of the fiscal year, CNG purchased an insurance product for the fiscal 2000 winter heating season (November through April) that 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 third quarter of
fiscal 2000, the Company recorded a net benefit of approximately $1,339, or $.15 per share from this program.  In fiscal 1999, the Company recorded a net benefit of $577, or $.07 per share from a similar program covering November to March.



Operations and Maintenance Expenses



There are two significant factors affecting Consolidated Operating and Maintenance ("O&M") expenses in all periods of fiscal 2000, as compared to fiscal 1999.  First, there are additional fiscal 2000 expenses related to TEN's expanded district
heating and cooling ("DHC") operations (See "Earnings from Diversified Businesses," below.).  The second is the significantly higher benefit payment from the regulated operations' weather stabilization insurance policy (See "Weather Stabilization
Program," above.).  Setting aside these two factors, O&M expenses are lower in fiscal 2000 as compared to the same periods of fiscal 1999.



In fiscal 2000, benefits to O&M expenses have been realized from lower compensation expenses, bad debt expense, outside purchased services and computer-related services.  Partially offsetting these collective reductions to O&M are higher
employee benefits and pension-related expenses, regulatory and deferred expense write-offs, and reserves for self-insured portions of property and casualty claims and workers' compensation costs.



The lower compensation expenses primarily reflect year-to-year timing in the recording of charges related to incentive plans but also reflect a reduction in the number of employees.  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 fewer costs incurred for legal and consulting services and the classification of some of these costs as Merger expenses.
Computer-related costs reflect changes to equipment lease contracts.  Employee benefit costs reflect the level of medical claims and changes in premiums.  Pension costs reflect a reduction in expenses resulting from favorable plan performance and changes
in actuarial assumptions in the plans.  Regulatory write-offs relate to the recognition of expenses previously deferred pending allowance in a rate decision by the Connecticut Department of Public Utility Control ("DPUC").  Such a decision was received in
May 2000 (See "Regulatory Proceedings," below.).  Expenses related to self-insured portions of property and casualty claims and workers' compensation costs reflect additions to reserves for anticipated claims.

Income Taxes



Overall, income taxes are higher in fiscal 2000 as compared to fiscal 1999, primarily as a result of higher taxable income and non-deductible merger-related costs.  In addition, the Company increased its tax reserves during the quarter for the
anticipated tax expense related to the settlement of a Connecticut gross receipts tax issue regarding prior years' sales of gas outside of the State of Connecticut.  The Company expects to pay this additional gross receipt tax in the fourth quarter of
fiscal 2000.

Other Income/(Deductions)



Merger-related costs are $192 for the three months, $649 for the nine months and $1,806 for the twelve months ended June 30, 2000, and 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 $3,100.  These costs will be expensed as they are incurred
 .



Higher other deductions were recorded in the quarter ending June 30, 2000, as compared to other income recorded in the third quarter of fiscal 1999.  Lower other income has been recorded in the nine-months and twelve-months ended periods of fiscal
2000, as compared to the same periods of fiscal 1999.  Higher promotional advertising expenses, charitable contributions, and executive life insurance costs recorded in the third quarter of fiscal 2000 impact all current year amounts.  Interest income
related to the temporary investment of available cash balances partially offset these higher expenses in the quarter, and were greater than the additional costs and expenses during the nine months and twelve months ended June 30, 2000.

Interest and Debt Expense

Lower interest expense recorded in all periods ended June 2000 reflects the net effect of several factors.  Scheduled sinking fund payments and the opportunity for an additional principal payment have reduced outstanding amounts of some long-term
issues.  New debt has been issued at lower rates.  Available cash from operations has minimized the need for short-term borrowings.

Earnings from Diversified Businesses



TEN's earnings per share were $.01 for the quarter, $.06 for the nine months and $.18 for the twelve months ended June 30, 2000.  These compare to earnings per share of $.06 for the quarter, $.11 for nine months and $.16 for the twelve months ended
June 30, 1999.

TEN's fiscal 2000 earnings are primarily impacted by new or expanded operations.  Results for all periods ended June 30, 2000 reflect the full impact of new sales of electricity and additional sales of 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 also began to record costs and earnings for providing temporary heating facilities to the Hartford's Trinity College/Southside Institutions Neighborhood
Alliance ("SINA") construction site.  June 2000 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.  The temporary service for
SINA was concluded in May 2000, and regular full-system chilled water service began in July 2000.

TEN's earnings from its equity interest in two partnerships are slightly higher in all periods of fiscal 2000 as compared to fiscal 1999.  The majority of these earnings are from TEN's investment in the Iroquois pipeline parnership.



MATERIAL CHANGES IN FINANCIAL CONDITION



Cash Flows



The Company's cash position is strong at the end of the third quarter.  Most of the Company's sales, and related outgoing cash flows for natural gas or for steam or hot water production costs, occur during the winter heating season, which ends in mid
April, and most of the payments from these sales have been received by June.  At this time of the year, the Company historically has no short-term borrowings outstanding and cash balances have been invested in short-term instruments.  June begins the
Company's primary construction season, however, and available cash will be needed in the fourth quarter of the fiscal year to pay for these capital expenditures and to build up inventories of natural gas in preparation for the coming winter heating season.

Regulatory Proceedings



In November 1999, CNG filed a general rate case application requesting an increase to its base revenues of $15,700 or 8.37 %. The DPUC divided its review of this case between revenue requirements and rate design.  On May 25, 2000, the DPUC issued its
decision regarding revenue requirements, denying the Company's request for a rate increase but increasing the Company's allowed return on equity slightly from 10.76% to10.8%.  On June 9, 2000, CNG filed a motion to reopen the rate case decision for the
sole purpose of reviewing the property tax allowance.  CNG requested approximately $800 in additional revenue to cover the higher tax bill that it received from the City of Hartford.  A decision on this matter is expected in September 2000.

CNG also proposed several rate design changes, including a weather normalization adjustment clause, to mitigate the effects of weather volatility on earnings, and an incentive rate plan 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.  The weather normalization adjustment clause was denied.  The incentive rate plan will be
addressed as part of the rate design phase, to be heard late in calendar year 2000, with a decision anticipated in early 2001.



As part of an ongoing investigation of natural gas deregulation in Connecticut, which began in 1996, 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.  In July 2000, the DPUC issued a draft decision regarding the cost of service study ("COSS") methodologies of the LDCs.  The DPUC's stated goal is to continue
to develop a competitive natural gas marketplace in Connecticut, including possibly expanding supplier choice to residential customers.

The July 2000 COSS draft decision was favorable with respect to moving toward eliminating cost allocation inequities among the customer classes.  Specific rate design changes will occur on a case- by-case basis as warranted for each of the LDCs.

Energy Contract Buyouts

TEN is currently a 50% partner in the DCA, a single-purpose entity operating a 4.2-megawatt dual-fuel gas turbine generator which supplies 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").  The facility is a cogeneration plant that meets federal requirements for a "qualifying facility."  As the electric utility and HSC are able to obtain energy at a lower cost than
that which they pay under these agreements, they offered, and TEN and its partners in the DCA agreed, to terminate both the EPA and SSA in exchange for a contract buyout, subject to DPUC approval for the electric utility EPA.  This approval was received
in a decision by the DPUC on June 30, 2000.

For the EPA buyout to occur, the utility must first issue securitization bonds.  This issue is planned to occur in calendar 2000.  The termination of the EPA and the SSA with DCA is expected to occur late in calendar 2000, subsequent to the bond issue,
and thereafter DCA will be shut down and liquidated.

Because of federal laws governing the ownership of qualifying facilities, prior to CTG's Merger with Energy East, TEN will divest 80% of its 50% equity ownership in the DCA, bringing TEN's partnership interest in the DCA to 10%.  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.  TEN's earnings will also be reduced because of its smaller equity interest in DCA.  The Company expects to
recognize income when the transaction is completed and all significant uncertainties are resolved.

Adriaen's Landing



On May 2, 2000, the Connecticut General Assembly enacted legislation authorizing the construction of a convention center and other facilities in a development in Hartford known as Adriaen's Landing.  The Company's Administrative and Operation
facilities occupy a large portion of this development site.  As a result of the legislation, these Company facilities and the associated property will be transferred to the State or a similar entity and the Company will be required to relocate.

The Company believes that the Adriaen's Landing project will be beneficial to the Greater Hartford area and provide an opportunity to obtain new customers for the Company, but the relocation will have a significant impact on the Company's business and
operations during the transition.  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.  The Company is negotiating with the State
over the terms and conditions under which the Company's relocation will be achieved.  Inasmuch as these discussions are currently pending, the Company cannot assess the impact of this activity, including any arrangement pertaining to the funding of
relocation and any related land preparation or possible environmental 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.



NEW ACCOUNTING STANDARDS

In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative Instruments and Hedging Activities."  This statement establishes accounting and reporting
standards for derivative instruments and for hedging activities.  In June 1999, the FASB issued SFAS No. 137, "Accounting for Derivative Instruments and Hedging Activities - Deferral of the Effective Date of FASB Statement No. 133," to amend the
implementation date of SFAS No. 133.  Adoption of SFAS No. 133 is now required for the Company beginning with the first quarter of fiscal 2001.  In June 2000, the FASB issued SFAS No. 138, "Accounting for Certain Derivative Instruments and Certain Hedging
Activities," to amend and further define certain provisions of SFAS No. 133.  The Company is aware of certain provisions which may impact the natural gas industry and has established a task force to review these provisions in detail against its existing
accounting practices and disclosures.  The task force has begun to inventory all of the Company's contracts and has established a database to maintain current contract information.  Although at this time the Company cannot predict with certainty what
impact, if any, the adoption of SFAS No. 133, as amended, will have on its financial condition or results of operations, any such potential impact is expected to be minimal because the Company does not generally engage in hedging transactions.





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, cash flows, energy contract buyouts, SFAS No. 133, environmental matters and compliance, rate
design and other 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 6.  Exhibits and Reports on Form 8-K



(a)       Exhibits



|99(1)   | Exhibit Index                                                                                                                        
|------- | -------------------------------------------------------------------------------------------------------------------------------------
|10(149) | Third Amendment to the CNG Nonemployee Directors' Fee Plan, dated December 1, 1998                                                   
|10(159) | Third Amendment to the Connecticut Natural Gas Corporation Officers' Retirement Plan, dated April 25, 2000                           
|10(160) | Seventh Amendment to the Connecticut Natural Gas Corporation Officers, Retirement Plan Trust Agreement, dated April 25, 2000         
|10(161) | Fifth Amendment to the Connecticut Natural Gas Corporation Deferred Compensation Plan, dated April 25, 2000                          
|10(162) | Second Amendment to the Connecticut Natural Gas Corporation Deferred Compensation Plan Trust Agreement, dated April 25, 2000         
|10(163) | Amended and Restated Connecticut Natural Gas Corporation Employee Savings Plan, effective January 1, 2000, dated April 25, 2000      
|10(164) | Second Amendment to Connecticut Natural Gas Corporation Employee Savings Plan Trust Agreement, dated April 25, 2000                  
|10(165) | Amended and Restated Connecticut Natural Gas Corporation Union Employee Savings Plan, effective January 1, 2000, dated April 25, 2000
|10(166) | Second Amendment to Connecticut Natural Gas Corporation Union Employee Savings Plan Trust Agreement, dated April 25, 2000            
|10(167) | Fourth Amendment to the CNG Nonemployee Directors' Fee Plan, dated November 30, 1999                                                 
|10(168) | Fifth Amendment to the CNG Nonemployee Directors' Fee Plan, dated April 25, 2000                                                     
|10(169) | Fourth Amendment to the CNG Nonemployee Directors' Fee Plan Trust Agreement, dated April 25, 2000                                    
|27      | Financial Data Schedule                                                                                                              





(b)       There were no reports filed under Form 8-K in the quarter ending June 30, 2000.





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: August 11, 2000 | By: S/ Andrew H. Johnson
            (Andrew H. Johnson)
       Treasurer and Chief Accounting Officer
       (On behalf of the registrant and as 
       Chief Accounting Officer)