Document:

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                                                                   EXHIBIT 10.32

                    GAS SUPPLY AND DELIVERY SERVICE AGREEMENT

      THIS GAS SUPPLY AND DELIVERY SERVICE AGREEMENT ("Agreement") is made and
entered into, effective as of August 1, 2004, by and between UGI Utilities,
Inc., ("Utility") and UGI Energy Services, Inc. ("GASMARK")(each referred to
herein separately as a "Party" and jointly as the "Parties").

      WHEREAS, Utility is a local distribution company that is principally
engaged in the business of distributing natural gas to residential, commercial
and industrial end-use customers located within its service territory in
Pennsylvania;

      WHEREAS, GASMARK is an energy marketer and supplier that is principally
engaged in the business of selling natural gas and managing assets for the sale
and delivery of natural gas in Pennsylvania and other states; and

      WHEREAS, Utility desires to receive, and GASMARK has agreed to provide
certain gas supply and related delivery services to Utility, subject to the
terms and conditions of this Agreement.

      NOW THEREFORE, in consideration of the covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties agree as follows:

SECTION 1. DEFINITIONS

      1.1 "DAILY NOMINATION" shall mean a Nomination made for deliveries during
the Delivery Day in accordance with Section 4.1 hereof.

      1.2 "DEKATHERM" OR "DTH" shall mean one million British Thermal Units
(MMBtu).

      1.3 "DELIVERY DAY" shall mean the day of actual gas flow and delivery
applicable to a Nomination. The Parties shall observe the NAESB-defined gas day,
which shall be one continuous twenty-four hour period, commencing at 10:00 a.m.
ECT.

      1.4 "DELIVERY POINT" OR "DELIVERY POINTS" shall mean the point or points
of physical interconnection between the Utility's distribution system and the
Facilities or the facilities of any upstream pipeline.

      1.5 "FACILITIES" shall mean the Propane-Air and LNG facilities owned and
operated by GASMARK located in Bethlehem, Reading and Steelton, Pennsylvania.

      1.6 "FIRM" shall mean, in reference to a Party's obligation to deliver or
receive Natural Gas, the requirement that the full quantity of Natural Gas
nominated for receipt or delivery must be

<PAGE>

delivered or received by the obligated Party, except for reasons of Force
Majeure under Section 7 or Waiver of Delivery under Section 3.5.

      1.7 "MAXIMUM DAILY QUANTITY" or "MDQ" shall have the meaning set forth in
Section 3.2 hereof.

      1.8 "MAXIMUM HOURLY QUANTITY" or "MHQ" shall have the meaning set forth in
Section 3.3 hereof.

      1.9 "NATURAL GAS" shall mean any mixture of hydrocarbons and
noncombustible gases in a gaseous state, including vaporized LNG and propane air
from the Facilities.

      1.10 "NOMINATION" shall mean a notice provided by the Utility to GASMARK
setting forth its delivery requirements for a Delivery Day, or specified hours
thereof pursuant to Section 4.1 hereof. The Parties shall maintain 24-hour
contacts, seven days per week, for the purposes of providing and receiving
Nominations

      1.11 "REPLACEMENT SUPPLY" shall mean Natural Gas quantities obtained by
Utility to replace the portion of a Scheduled Quantity that GASMARK fails to
deliver in accordance with a Daily Nomination.

      1.12 "SCHEDULED QUANTITY" shall mean, for a particular Delivery Day, the
quantity of Natural Gas that Utility requests in a Nomination and GASMARK
schedules for delivery.

      1.13 "TOTAL WINTER ENTITLEMENT" OR "TWE" shall mean the maximum quantity
of Natural Gas that Utility is entitled to receive and GASMARK is obligated to
deliver on a Firm basis, during a Winter Season. The TWE for each Winter Season
during the Primary Term shall be as follows:

<TABLE>
<CAPTION>
WINTER SEASON                         TWE
-------------                         ---
<S>                                <C>
2004-2005                          400,000
2005-2006                          520,000
2006-2007                          640,000
</TABLE>

      1.14 "WINTER SEASON" shall refer to the period beginning 10:00 a.m. ECT
November 1 and ending 9:59 a.m. ECT the following March 31.

SECTION 2. TERM

      This Agreement shall be effective for a period commencing on and including
November 1, 2004 and expiring on and including March 31, 2007 (the "Primary
Term"). Following expiration of the Primary Term, this Agreement may continue on
a year-to-year basis; provided, that Utility and GASMARK shall agree on the
appropriate amount of Reservation and

                                        2
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Commodity Charges to apply during any year-to-year continuation of this
Agreement. By March 1 in any year that the Agreement will expire, GASMARK will
provide Utility with either a written notice of termination or a written pricing
offer for continuation of service under the Agreement. By May 1 in any year that
the Agreement will expire, Utility will respond to GASMARK with a written notice
of acceptance of the pricing offer for continuation of the Agreement or a
written notice of termination. Termination by either Party shall become
effective on April 1 in the same year that notice is received.

SECTION 3. CHARACTER OF SERVICE

      3.1 DELIVERY OBLIGATION. GASMARK shall sell and deliver and Utility shall
purchase and receive Natural Gas on any day during the Winter Season. GASMARK's
obligation to deliver, and Utility's obligation to receive Natural Gas shall be
Firm, up to the applicable MDQ, MHQ and TWE. GASMARK shall not be obligated to
deliver Natural Gas to Utility in excess of the applicable MDQ, MHQ, or TWE.

      3.2 MAXIMUM DAILY QUANTITY. The Maximum Daily Quantity or MDQ shall mean
the maximum quantity of Natural Gas that Utility may require GASMARK to deliver
on any day during a Winter Season. The MDQ for each Winter Season during the
Primary Term shall be as follows:

<TABLE>
<CAPTION>
WINTER SEASON             MDQ
-------------             ---
<S>                 <C>
  2004-2005         50,000 Dth/d
  2005-2006         65,000 Dth/d
  2006-2007         80,000 Dth/d
</TABLE>

      3.3 MAXIMUM HOURLY QUANTITY. The Maximum Hourly Quantity or MHQ shall mean
the maximum quantity of Natural Gas that Utility may require GASMARK to deliver
in any hour of a Delivery Day during a Winter Season. The MHQ for each Winter
Season during the Primary Term shall be as follows:

<TABLE>
<CAPTION>
WINTER SEASON             MHQ                        MHQ
-------------             ---                        ---
<S>                   <C>                        <C>
  2004-2005           3,125 Dth/hr               6.25% of MDQ
  2005-2006           3,750 Dth/hr               5.77% of MDQ
  2006-2007           4,375 Dth/hr               5.47% of MDQ
</TABLE>

      3.4 AUTHORIZED OVERRUNS. If Utility wishes to overrun its MDQ, MHQ or TWE
on any Delivery Day it must request authorization from GASMARK in advance.
GASMARK will authorize and permit such overruns if it reasonably determines that
it is operationally feasible to do so. The Parties shall agree in advance on the
Commodity Charge to apply for any Natural Gas delivered to Utility in excess of
its MDQ, MHQ or TWE.

                                        3
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      3.5 WAIVER OF DELIVERY OBLIGATION. On any day that Utility nominates
service, Utility shall maintain its distribution facilities downstream of the
Delivery Point(s) in a way that permits GASMARK to deliver the Scheduled
Quantities. If Utility fails to maintain its distribution facilities downstream
of the Delivery Point(s) or has insufficient flow-by of Natural Gas at the point
of interconnection with the Facilities, such that GASMARK is unable to deliver
the Scheduled Quantities, then GASMARK shall be relieved of its obligation to
deliver the Scheduled Quantities for the period and to the extent that Utility's
distribution facilities or the absence of flow-by do not permit such deliveries.
Once the Utility's distribution facilities or the absence of flow-by condition
has been corrected by Utility, GASMARK shall use commercially reasonable efforts
to supply the entire amount nominated by Utility for that gas day. Any waiver of
delivery obligations pursuant to this Section 3.5 shall not affect Utility's
right to receive its TWE during any Winter Season.

SECTION 4. NOMINATION PROCEDURE

      Utility may provide GASMARK with a Nomination for service at any time
either prior to or within the Delivery Day. Each such Nomination shall specify
the Delivery Day, the hours of delivery and the quantity of Natural Gas required
for delivery during such hours, up to the MDQ and MHQ set forth in Section 3.2
and 3.3, above. The Delivery Points for all such nominations shall be mutually
agreed to by the Parties at the time such nomination is made; provided that,
unless otherwise agreed, the Delivery Points for Nominations received within the
Delivery Day shall be limited to those Delivery Points that interconnect with
the Facilities. If Utility is nominating service within the Delivery Day,
Utility will submit its Nomination as early on the Delivery Day as is reasonably
possible under the circumstances. GASMARK shall provide Utility with
confirmation of the Scheduled Quantity within two-hours after the Nomination is
received. GASMARK shall commence deliveries to Utility pursuant to such
Nomination as quickly as practicable after service is requested; provided,
however, that GASMARK shall be permitted three hours after receipt of Utility's
Nomination to commence such service. If no hourly delivery quantity is specified
in the Nomination, GASMARK will prorate the Scheduled Quantity based on the
number of hours for which service is requested.

SECTION 5. CHARGES

      5.1 RESERVATION CHARGE. Utility shall pay GASMARK a total reservation
charge as defined in the following table for each Winter Season during the
Primary Term. The reservation charge shall be paid in five equal monthly
installments and shall be charged and collected in accordance with Section 6.

<TABLE>
<CAPTION>
WINTER SEASON             RESERVATION CHARGE
-------------             ------------------
<S>                       <C>
  2004-2005                   $5,100,000
  2005-2006                   $6,300,000
  2006-2007                   $7,200,000
</TABLE>

                                        4
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      5.2 COMMODITY CHARGE. Unless the Utility elects to lock a fixed price with
GASMARK in accordance with Section 5.2(c), Utility shall not be obligated to
purchase or receive any Natural Gas from GASMARK under this Agreement. For all
quantities of Natural Gas sold and delivered by GASMARK, Utility shall pay a
commodity charge, which shall be determined pursuant to the following
alternatives:

      (a)   For deliveries made pursuant to a Nomination, up to the MDQ, MHQ and
            TWE, the commodity charge for the quantity delivered shall be equal
            to the sum of: (i) the NYMEX settlement price for the month of
            delivery; plus (ii) a commodity adder equal to the NYMEX settlement
            price multiplied by .1628, which adder shall cover applicable fuel
            and commodity charges to the Delivery Points.

      (b)   Utility shall have the right at any time to lock-in a fixed
            commodity charge for all or a portion of the Total Winter
            Entitlement, for delivery during a future month of the Winter
            Season. The commodity charges for locked-in quantities shall be as
            agreed to by the Parties based on prevailing market conditions at
            the time the lock-in is made. Utility's right to lock in a quantity
            of Natural Gas shall be limited as follows:

                  (i)   The maximum quantity of Natural Gas for which the
                        Utility may lock in a fixed commodity charge shall equal
                        the TWE less any quantities already delivered during the
                        Winter Season and any quantities previously locked in
                        for the Winter Season.

                  (ii)  Unless otherwise agreed, Utility shall notify GASMARK of
                        its intention to lock-in the commodity charge by no
                        later than 10:00 a.m. on the last trading day for the
                        NYMEX natural gas contract to the month in which such
                        lock-in will apply. Such notice shall identify the
                        quantity of Natural Gas to be locked in. GASMARK will
                        promptly communicate to Utility any limitations on the
                        lock-in quantity identified in Utility's notice, and the
                        Parties will utilize commercially reasonable efforts to
                        facilitate the lock in to the extent practicable.

                  (iii) If Utility has locked in a fixed price, Utility shall be
                        required to purchase and take delivery of the quantity
                        of Natural Gas for which a locked-in price is
                        established.

      (c)   Utility may elect to purchase a Call Option from GASMARK, which
            shall give Utility the right, but not the obligation to purchase
            Natural Gas supply from GASMARK during a future month at a fixed
            price. The Option Quantity, Option Fee and Strike price shall be
            agreed to by Utility and GASMARK

                                        5
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      (d)   The commodity charges determined in accordance with sub-paragraphs
            (a) through (c), above, shall be billed and paid on a monthly basis,
            in accordance with Section 6.

SECTION 6. BILLING AND PAYMENT

      Each month, GASMARK will invoice Utility for all reservation charges and
commodity charges applicable to service rendered during the prior month, plus
any applicable taxes in accordance with Section 11 hereto. Utility shall pay
GASMARK the full amount due no later than ten (10) days after receipt of such
invoice, by Electric Funds Transfer (EFT) or, at GASMARK's option, by wire
transfer or other acceptable means, to GASMARK's designated banking institution
or its Wyomissing, Pennsylvania office.

SECTION 7. FORCE MAJEURE

      7.1 GENERALLY. Except as otherwise set forth herein, deliveries under this
Agreement shall be Firm, and shall not be subject to curtailment, interruption
or proration except as the result of Force Majeure. In the event either GASMARK
or Utility is rendered unable, wholly or in part, by a Force Majeure Event to
carry out its obligations under this Agreement, it is agreed that upon such
Party's giving notice and full particulars of such Force Majeure Event, in
accordance with Section 7.4, then the obligations of the Party giving such
notice insofar as they are affected by such Force Majeure Event shall be
suspended, from the inception, and during the continuance of any inability so
caused but for no longer period. Notwithstanding the foregoing, a Party's
obligation to pay money when due for service rendered during a prior period
shall not be excused as a result of a Force Majeure Event.

      7.2 INCLUDED AND EXCLUDED EVENTS. A Force Majeure Event shall mean all
causes, events or occurrences beyond the reasonable control of the Parties and
that could not have been prevented by the claiming Party through the exercise of
reasonable diligence, which causes, events or occurrences directly and
materially affect a Party's ability to perform, in whole or in part, the
obligations of this Agreement. Notwithstanding the foregoing, a Force Majeure
Event shall not include: (i) any well failures or freeze-offs; (ii) any
interruption of interruptible service by an interstate pipeline; (iii) any
restriction of secondary receipt or delivery points by an interstate pipeline;
(iv) any recall of recallable capacity; or (v) any curtailment of firm
transportation service by an interstate pipeline for any reason other than the
occurrence of a Force Majeure Event as defined in the foregoing paragraph. For
deliveries scheduled for Utility pursuant to a Nomination received within a
Delivery Day, a Force Majeure Event shall not include the declaration of an OFO,
Action Alert, Critical Day Notice or other similar order by an interstate
pipeline.

                                        6
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      7.3 NOTICE. The Party asserting Force Majeure shall provide immediate
written notice to the other Party of the occurrence of any Force Majeure Event.
Notice shall include (i) a detailed explanation of the event that has occurred,
(ii) the known or expected impact on the Party's ability to perform, and (iii)
the period of time during which the Party's performance will be impacted. The
Party asserting Force Majeure will remedy the Force Majeure Event and resume
performance of its obligations hereunder as soon as reasonably possible.

SECTION 8. LIQUIDATED DAMAGES FOR FAILURE TO RECEIVE OR DELIVER

      8.1 FAILURE TO DELIVER. Unless otherwise excused by the waiver of a
delivery obligation under Section 3.5 or a Force Majeure Event under Section
7.2, if GASMARK fails to deliver all or a portion of a Scheduled Quantity on any
day, GASMARK shall pay Utility (i) the positive difference between the cost of
Replacement Supply and the applicable commodity charges for the undelivered
quantity, and (ii) a liquidated damages charge of $75 per Dth applied against
all undelivered quantities. In addition, GASMARK shall reimburse Utility for all
verifiable losses and damages suffered by Utility, including without limitation,
personal injury, property damage, lost profits or other commercial damages,
which arise from or out of or are caused by GASMARK's failure to deliver;
provided, however, that GASMARK shall not be liable for any losses or damages
that result from Utility's gross negligence or willful misconduct.

      8.2 FAILURE TO RECEIVE. If Utility fails to take all or any part of the
quantities nominated by the Utility for the Delivery Day, and such failure is
not excused by a Force Majeure Event or some other provision of this Agreement,
or if GASMARK is not relieved of its delivery obligation under Section 3.5
hereof, Utility shall pay GASMARK an amount equal to the difference between (i)
the nominated quantity for the Delivery Day and (ii) the quantity taken during
such Delivery Day (the "Deficiency Amount") times the positive difference
between (iii) the applicable commodity charge as determined under Section 5.2
hereof and (iv) the price received by the GASMARK from the sale of the
Deficiency Amount within a commercially reasonable time from the time Utility
fails to take delivery of the Deficiency Amount.

      8.3 DUTY TO MITIGATE. Each Party has an affirmative duty to mitigate in
good faith the extent of damages that may arise from the other Party's failure
to discharge its receipt or delivery obligations under this Agreement. In the
event a Party fails to properly discharge its duty to mitigate, any amounts
otherwise due under Sections 8.1 and 8.2 hereunder shall be reduced by an amount
that would not have been incurred had such duty been properly discharged.

      8.4 EXCLUSIVE REMEDY. The remedies set forth in Section 8.1 and 8.2 shall
be the exclusive remedies available to a party for the other party's failure to
discharge its firm receipt or delivery obligation hereunder. To the extent that
any damages required to be paid under Sections 8.1 or 8.2 are liquidated,
GASMARK and Utility acknowledge that the damages are difficult or impossible to
determine, otherwise obtaining an adequate remedy is inconvenient and the
liquidated damages constitute a reasonable approximation of the harm or loss.
FOR BREACH OF ANY OTHER PROVISION OF THIS AGREEMENT, A PARTY'S LIABILITY SHALL
BE LIMITED TO DIRECT ACTUAL DAMAGES ONLY. ALL OTHER REMEDIES AND

                                        7
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DAMAGES AVAILABLE AT LAW AND EQUITY, INCLUDING CONSEQUENTIAL, INCIDENTAL OR
PUNITIVE DAMAGES, ARE WAIVED. THIS PARAGRAPH SHALL SURVIVE EXPIRATION OR
TERMINATION OF THIS AGREEMENT.

SECTION 9. INDEMNIFICATION

      Except as otherwise limited pursuant to other provisions of this
Agreement, each Party shall indemnify, defend and hold harmless the other Party,
the other Party's officers, employees, shareholders, directors, and agents and
their respective successors and assigns, from and against any and all third
party claims, demands, liabilities, losses, expenses, costs, obligations,
recoveries or damages of any nature whatsoever, whether accrued, absolute,
contingent or otherwise, including without limitation court costs and attorneys'
fees (whether or not suit is brought), arising out of or resulting from or
relating to (i) any breach of any of its obligations under this Agreement, (ii)
any negligence, gross negligence, bad faith actions, or willful misconduct on
its part in connection with this Agreement; and (iii) any Natural Gas while it
is in the Party's control or possession; provided however, that a Party's
responsibility for such claims and damages under this section shall be limited
to the extent that such claims or damages result from the negligence, gross
negligence, willful misconduct, or bad faith actions or omissions on the part of
the other Part but only to the extent of such actions or omissions. This Section
9 shall survive termination of the Agreement.

SECTION 10. TAXES

      10.1 RESPONSIBILITY. Responsibility for payment of all kinds of taxes
applicable to Natural Gas sold hereunder shall be allocated as follows: (a)
GASMARK shall pay, or cause to be paid, and Utility shall be held harmless by
GASMARK, for the payment of all taxes imposed on or with respect to the Natural
Gas sold or delivered hereunder by GASMARK for which the taxable incident arises
or occurs prior to delivery of the Natural Gas to the Delivery Point(s); and (b)
Utility shall pay or cause to be paid, and GASMARK shall be held harmless by
Utility, for the payment of all taxes imposed on or with respect to the Natural
Gas sold or delivered by GASMARK hereunder for which the taxable incident arises
or occurs upon delivery or after the Natural Gas is delivered to the Delivery
Point(s).

      10.2 REIMBURSEMENT. If a Party is required to remit or pay taxes that are
the other Party's responsibility hereunder (including any tax, which would have
been incurred by a Party absent this Agreement), the Party responsible for such
taxes shall promptly reimburse the other Party therefore.

SECTION 11. TITLE AND WARRANTIES

                                        8
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      11.1 WARRANTY OF TITLE. GASMARK hereby warrants good and merchantable
title to the Natural Gas sold by it hereunder or the right to sell the same, and
warrants that all Natural Gas shall be delivered to Utility shall be free from
all liens, encumbrances, and adverse claims. Upon delivery to Utility, title
shall be passed, and shall be deemed to remain with Utility at all times.

      11.2 WARRANTY DISCLAIMERS. Except as expressly stated herein, neither
Party provides any warranties to the other, expressed or implied, including the
implied warranties of merchantability and fitness for a particular purpose.

SECTION 12. NOTICES

      12.1 GENERALLY. All invoices, payments and other communications made
hereunder shall be delivered to the addresses specified in writing by the
Parties from time to time.

      12.2 MEANS OF DELIVERY. Unless a specific means of notice is expressly
stated herein, all notices required hereunder may be sent by mutually acceptable
means, provided, however, that (i) notices shall be deemed given when received
on a Business Day by the addressee, (ii) notices sent electronically shall be
deemed received upon the sending Party's receipt of its facsimile machine's
confirmation of successful transmission, and (iii) any facsimile or other notice
received on other than a Business Day or after five p.m. Eastern Clock Time on a
Business Day shall be deemed received at the start of the next following
Business Day.

      12.3 ADDRESSES. Notices shall be provided to the Parties at the following
addresses:

      If to UGI Energy Services, Inc., to:

            UGI Energy Services, Inc.
            1100 Berkshire Blvd. Suite 305
            Wyomissing, PA  19610

            Telephone: (610) 373-7999
            Facsimile: (610) 374-4288
            Attention: Joe Hartz

      If to UGI Utilities, Inc., to:

            UGI Utilities, Inc
            100 Kachel Blvd., Suite 400
            Reading, PA 19612

            Telephone: (610) 796-3470
            Facsimile: (610) 796-3595

                                       9
<PAGE>

            Attention: Paul J. Szykman

SECTION 13.  ASSIGNMENT

      This Agreement shall be binding upon and inure to the benefit of the
respective successors and assigns of the Parties; provided, however, that this
Agreement shall not be transferred or assigned, by operation of law or
otherwise, by GASMARK or Utility without the other Party's prior written
consent, which consent shall not be unreasonably withheld or delayed. Either
Party may assign its rights and obligations hereunder to any parent, subsidiary
or affiliate, upon prior written notice to the other Party.

SECTION 14. CONFIDENTIALITY

      The existence, terms and conditions of this Agreement shall be and remain
confidential to the extent permitted by law.

SECTION 15. LAWS AND REGULATORY BODIES

      15.1. GENERALLY. This Agreement shall be subject to all valid applicable
federal and state laws and to the orders, rules and regulations of any duly
constituted federal or state regulatory body or authority having jurisdiction.
The interpretation and enforceability of this Agreement shall be governed by the
laws of the Commonwealth of Pennsylvania, without recourse to its conflict of
law principles.

      15.2 REGULATORY EVENT. In the event that any regulatory body directly or
indirectly asserts jurisdiction over the Parties' obligations and as a result
performance under the Agreement becomes commercially impracticable by either
Party ("Regulatory Event"), then the Parties shall negotiate in good faith in
order to amend the Agreement (and the Parties' obligations and rights
thereunder) to cure the Regulatory Event. In the event the Regulatory Event
cannot be reasonably cured to the satisfaction of the affected Party, the Party
so affected shall have the right to terminate the Agreement upon thirty (30)
days written notice to the other. A regulatory agency disallowing, in whole or
in part, the pass through of costs resulting from this Agreement shall not
constitute a Regulatory Event.

SECTION 17. MISCELLANEOUS

      17.1 WAIVER. No waiver of any breach hereof shall be held to be a waiver
of any other or subsequent breach.

      17.2 SET-OFFS. Each Party reserves to itself all rights, set-offs,
counterclaims, and other defenses to which it is or may be entitled under
applicable law.

                                       10
<PAGE>

      17.3 DOCUMENTATION. Each Party shall provide all documents necessary to
effectuate this Agreement and the transactions that underlie this Agreement.

      17.4 AMENDMENTS. This Agreement, including Appendices hereto, may be
amended or modified only by a writing signed by duly authorized representatives
of both Parties.

      17.5 AUTHORIZATIONS. Utility and GASMARK each represents to the other its
respective belief that it has obtained all necessary corporation and regulatory
authorizations to execute and perform its obligations under this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       11
<PAGE>

      IN WITNESS WHEREOF, the Parties have executed this Agreement in duplicate
by their respective duly authorized officers as of the day and year first
written above.

UGI UTILITIES, INC.                           UGI ENERGY SERVICES, INC.

By:   /S/                                     By:   /S/
   -------------------------------------         -------------------------------
   Robert J. Chaney                           Carl H. Myers
   President and Chief Executive Officer      Vice President & General Manager

                                       12<PAGE>
                                                                   EXHIBIT 10.33

                                                            Contract #: 800394R5

                                SERVICE AGREEMENT
                             FOR RATE SCHEDULE FT-1

      This Service Agreement, made and entered into this day of____, 20_______,
by and between TEXAS EASTERN TRANSMISSION,LP a Delaware Limited Partnership
(herein called "Pipeline") and UGI UTILITIES, INC. (herein called "Customer",
whether one or more),

                              W I T N E S S E T H:

      WHEREAS, Customer and Pipeline are currently parties to an, executed
service agreement dated November 1, 2001, under Pipeline's Rate Schedule FT-1
(Pipeline's Contract No. 800394R4); and

      WHEREAS, Customer and Pipeline desire to enter into this Service Agreement
to supersede and extend Pipeline's currently effective Contract No. 800394R4;

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

                                    ARTICLE I

                               SCOPE OF AGREEMENT

      Subject to the terms, conditions and limitations hereof, of Pipeline's
Rate Schedule FT-1, and of the General Terms and Conditions, transportation
service hereunder will be firm. Subject to the terms, conditions and limitations
hereof and of Pipeline's Rate Schedule FT-1, Pipeline agrees to deliver for
Customer's account quantities of natural gas up to the following quantity:

      Maximum Daily Quantity (MDQ) 32,475 dth

      Pipeline shall receive for Customer's account: at those points on
Pipeline's system as specified in Article IV herein or available to Customer
pursuant to Section 14 of the General Terms and Conditions (hereinafter referred
to as Point(s) of Receipt) for transportation hereunder daily quantities of gas
up to Customer's MDQ, plus Applicable Shrinkage. Pipeline shall transport and
deliver for Customer's account, at those points on Pipeline's system as
specified in Article IV herein or available to Customer pursuant to Section 14
of the General Terms and Conditions (hereinafter referred to as Point(s) of
Delivery), such daily quantities tendered up to such Customer's MDQ.

      Pipeline shall not be obligated to, but may at its discretion, receive at
any Point of Receipt on any day a quantity of gas in excess of the applicable
Maximum Daily Receipt Obligation (MDRO), plus Applicable Shrinkage, but shall
not receive in the aggregate at all Points of Receipt on any day a quantity of
gas in excess of the applicable MDQ, plus Applicable Shrinkage. Pipeline shall

                                        1
<PAGE>

                                                            Contract #: 800394R5

                                SERVICE AGREEMENT
                             FOR RATE SCHEDULE FT-1
                                   (Continued)

not be obligated to, but may at its discretion, deliver at any Point of Delivery
on any day a quantity of gas in excess of the applicable Maximum Daily Delivery
Obligation (MDDO), but shall not deliver in the aggregate at all Points of
Delivery on any day a quantity of gas in excess of the applicable MDQ.

      In addition to the MDQ and subject to the terms, conditions and
limitations hereof, Rate Schedule FT-1 and the General Terms and Conditions,
Pipeline shall deliver within the Access Area under this and all other service
agreements under Rate Schedules CDS, FT-1, and/or SCT, quantities up to
Customer's Operational Segment Capacity Entitlements, excluding those
operational Segment Capacity Entitlements scheduled to meet Customer's MDQ, for
Customer's account, as requested on any day.

                                   ARTICLE II

                                TERM OF AGREEMENT

      The term of this Service Agreement shall commence on the effective date as
set forth above and shall continue in force and effect until October 31, 2008,
and year to year thereafter unless this Service Agreement is terminated as
hereinafter provided. This Service Agreement may be terminated by either
Pipeline or Customer upon one (1) year prior written notice to the other
specifying a termination date of October 31, 2008, or any October 31 thereafter.
Subject to Section 22 of Pipeline's General Terms and Conditions and without
prejudice to such rights, this Service Agreement may be terminated at any time
by Pipeline in the event Customer fails to pay part or all of the amount of any
bill for service hereunder and such failure continues for thirty (30) days after
payment is due; provided, Pipeline gives thirty (30) days prior written notice
to Customer of such termination and provided further such termination shall not
be effective if, prior to the date of termination, Customer either pays such
outstanding bill or furnishes a good and sufficient surety bond guaranteeing
payment to Pipeline of such outstanding bill.

      IF THIS SERVICE AGREEMENT QUALIFIES AS A "ROFR AGREEMENT" AS DEFINED IN
THE GENERAL TERMS AND CONDITIONS OF PIPELINE'S FERC GAS TARIFF, THE PROVISION OF
A TERMINATION NOTICE BY EITHER CUSTOMER OR PIPELINE, PURSUANT TO ARTICLE II, A
NOTICE OF PARTIAL REDUCTION IN MDQ PURSUANT TO ARTICLE I OR THE EXPIRATION OF
THIS SERVICE AGREEMENT OF ITS OWN TERMS TRIGGERS CUSTOMER'S RIGHTS OF FIRST
REFUSAL UNDER SECTION 3.13 OF THE GENERAL TERMS AND CONDITIONS OF PIPELINE'S
FERC GAS TARIFF.

      Any portions of this Service Agreement necessary to correct or cash-out
imbalances under this Service Agreement as required by the General Terms and
Conditions of Pipeline's FERC Gas Tariff, Volume No. 1, shall survive the other
parts of this Service Agreement until such time as such balancing has been
accomplished.

                                        2
<PAGE>

                                                            Contract #: 800394R5

                                SERVICE AGREEMENT
                             FOR RATE SCHEDULE FT-1
                                   (Continued)

                                   ARTICLE III

                                  RATE SCHEDULE

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

      Customer shall pay pipeline, for all services rendered hereunder and for
the availability of such service in the period stated, the applicable prices
established under Pipeline's Rate Schedule FT-1 as filed with the Federal-
Energy Regulatory Commission, and as same, may hereafter be legally amended or
superseded.

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

                                   ARTICLE IV

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

      The Point(s) of Receipt and Point(s) of Delivery at which Pipeline shall
receive and deliver gas, respectively, shall be specified in Exhibit(s) A and B
of the executed service agreement. Customer's Zone Boundary Entry Quantity and
Zone Boundary Exit Quantity for each of Pipeline's zones shall be specified in
Exhibit C of the executed service agreement.

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

                                        3
<PAGE>

                                                            Contract #: 800394R5

                                SERVICE AGREEMENT
                             FOR RATE SCHEDULE FT-1
                                   (Continued)

                                    ARTICLE V

                                     QUALITY

      All natural gas tendered to Pipeline for Customer's account shall conform
to the quality specifications set forth in Section 5 of Pipeline's General Terms
and Conditions. Customer agrees that in the event Customer tenders for service
hereunder and Pipeline agrees to accept natural gas which does not comply with
Pipeline's quality specifications, as expressly provided for in Section 5 of
Pipeline's General Terms and Conditions, Customer shall pay all costs associated
with processing of such gas as necessary to comply with such quality
specifications. Customer shall execute or cause its supplier to execute, if such
supplier has retained processing rights to the gas delivered to Customer, the
appropriate agreements prior to the commencement of service for the
transportation and processing of any liquefiable hydrocarbons and any PVR
quantities associated with the processing of gas received by Pipeline at the
Point(s) of Receipt under such Customer's service agreement. In addition,
subject to the execution of appropriate agreements, Pipeline is willing to
transport liquids associated with the gas produced and tendered for
transportation hereunder.

                                   ARTICLE VI

                                    ADDRESSES

      Except as herein otherwise provided or as provided in the General Terms
and Conditions of Pipeline's FERC Gas Tariff, any notice, request, demand,
statement, bill or payment provided for in this Service Agreement, or any notice
which any party may desire to give to the other, shall be in writing and shall
be considered as duly delivered when mailed by registered, certified, or regular
mail to the post office address of the parties hereto, as the case may be, as
follows:

                   (a) Pipeline:   TEXAS EASTERN TRANSMISSION, LP
                                   5400 Westheimer Court
                                   Houston, TX 77056-5310

                  (b) Customer:    UGI UTILITIES, INC.
                                   100 Kachel Blvd., Suite 400
                                   Reading, PA 19612

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

                                        4
<PAGE>

                                                            Contract #: 800394R5

                                SERVICE AGREEMENT
                             FOR RATE SCHEDULE FT-1
                                   (Continued)

                                   ARTICLE VII

                                   ASSIGNMENTS

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

                                  ARTICLE VIII

                                 INTERPRETATION

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

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

                                   ARTICLE IX

                        CANCELLATION OF PRIOR CONTRACT(S)

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

                  service agreement dated November 1, 2001, between Pipeline and
                  Customer under Pipeline's Rate Schedule FT-1 (Pipeline's
                  Contract No. 800394R4).

                                        5
<PAGE>

                                                            Contract #: 800394R5

                                SERVICE AGREEMENT
                             FOR RATE SCHEDULE FT-1
                                   (Continued)

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

                                    TEXAS EASTERN TRANSMISSION, LP
                                    by its general partner
                                    Duke Energy Gas
                                    Transmission Services, LLC

                                    By: ________________________________________

ATTEST:

_______________________________

                                    UGI UTILITIES, INC.

                                    By: ________________________________________
                                        David W. Trego
                                        President & CEO
                                        UGI Utilities, Inc.

ATTEST:

_______________________________

                                        6
<PAGE>

                                                            Contract #: 800394R5

                         EXHIBIT A, TRANSPORTATION PATHS
                     FOR BILLING PURPOSES, DATED __________,
                TO THE SERVICE AGREEMENT UNDER RATE SCHEDULE FT-1
            BETWEEN TEXAS EASTERN TRANSMISSION, LP ("Pipeline"), AND
               UGI UTILITIES, INC. ("Customer"), DATED___________:

(1) Customer's firm Point(s) of Receipt:

<TABLE>
<CAPTION>
                                                        Maximum Daily Receipt
                                                          Obligation (plus
Point of                                                Applicable Shrinkage)      Measurement
Receipt                 Description                            (dth)            Responsibilities      Owner        Operator*
-------                 -----------                            -----            ----------------      -----        --------
<S>       <C>                                           <C>                     <C>               <C>             <C>
 71200    CHEVRON - VENICE, LA PLAQUEMINES PA., LA             13,050             CHEVRON USA     CHEVRON  USA    VGS P/L

 71750    COLUMBIA GULF - ST. LANDRY PA., LA ST LANDRY         19,425             COLUMBIA GULF   COLUMBIA GULF   COLUMBIA GULF
          PA., LA

 70011    COLUMBIA GAS - EAGLE, PA CHESTER CO., PA                  0             TX EAST TRAN    TX EAST TRAN    COLUMBIA TRAN

 75577    COLUMBIA GAS - PENNSBURG, PA BUCKS CO., PA                0             TX EAST TRAN    COLUMBIA GAS    COLUMBIA GAS
</TABLE>

                                                               *Confirming Party

(2)   Customer shall have Pipeline's Master Receipt Point List ("MRPL").
      Customer hereby agrees that Pipeline's MRPL as revised and published by
      Pipeline from time to time is incorporated herein by reference.

      Customer hereby agrees to comply with the Receipt Pressure obligation as
      set forth in Section 6 of Pipeline's General Terms and Conditions at such
      Point (s) of Receipt.

                                       A-1

<PAGE>

                                                            Contract #: 800394R5

                   EXHIBIT A, TRANSPORTATION PATHS, continued
                               UGI UTILITIES, INC.

<TABLE>
<CAPTION>
                                   Transportation
Transportation Path                Path Quantity (Dth/D)
<S>                                <C>
M1 to M3                                  32,475
</TABLE>

SIGNED FOR IDENTIFICATION

PIPELINE:        /s/
          ----------------------------------

CUSTOMER:        /s/
          ----------------------------------

SUPERSEDES EXHIBIT A DATED: November 1, 2001

                                       A-2

<PAGE>

                                                            Contract #: 800394R5

               EXHIBIT B, POINT(S) OF DELIVERY, DATED ___________,
                TO THE SERVICE AGREEMENT UNDER RATE SCHEDULE FT-1
            BETWEEN TEXAS EASTERN TRANSMISSION, LP ("Pipeline"), AND
              UGI UTILITIES, INC. ("Customer"), DATED___________:

<TABLE>
<CAPTION>
                                        Maximum Daily
     Point of                             Delivery                                         Measurement
     Receipt          Description       Obligation (dth)  Delivery Pressure Obligation   Responsibilities    Owner       Operator*
     -------          -----------       ----------------  ----------------------------   ----------------    -----       ---------
<S>  <C>      <C>                       <C>              <C>                             <C>              <C>          <C>
1.   70011    COLUMBIA GAS - EAGLE, PA    32,475 dth     AS PROVIDED IN SECTION 6 OF THE      TX EAST     TX EAST TRAN COLUMBIA GAS
              CHESTER CO., PA             during the     GENERAL TERMS AND CONDITIONS         TRAN
                                          period April   OF PIPELINE'S FERC GAS TARIF
                                          16 through
                                          November 15
                                          of each
                                          year -
                                          otherwise
                                          28,192 dth

2.   70069    UGI UTILITIES - COLUMBIA,        5,190     AT THE PRESSURE REQUESTED BY         TX EAST     TX EAST TRAN UGI UTILITIES
              PA LANCASTER CO., PA                       OPERATOR BUT NOT MORE THAN 450       TRAN
                                                         POUNDS PER SQUARE INCH GAUGE

3.   70070    UGI UTILITIES -                 32,475     AT THE PRESSURE REQUESTED BY         TX EAST     TX EAST TRAN UG UTILITIES
              LANCASTER, PA                              OPERATOR, BUT NOT MORE THAN 450      TRAN
              LANCASTER CO., PA                          POUNDS PER SQUARE INCH GAUGE

4.   70321    UGI UTILITIES - LEBANON,        17,000     AT THE PRESSURE REQUESTED BY         TX EAST     TX EAST TRAN UG UTILITIES
              PA LEBANON CO., PA                         OPERATOR, BUT NOT MORE THAN 450      TRAN
                                                         POUNDS PER SQUARE INCH GAUGE

5.   70322    UGI UTILITIES - READING,        32,475     FOR NON-LNG DELIVERIES, AT THE       TX EAST     TX EAST TRAN UGI UTILITIES
              PA BERKS CO., PA                           PRESSURE REQUESTED BY                TRAN
                                                         OPERATOR, BUT NOT MORE THAN 450
                                                         POUNDS PER SQUARE INCH GAUGE.
                                                         FOR LNG DELIVERIES AT THE
                                                         PRESSURE AT WHICH PIPELINE
                                                         REQUIRES TO OPERATE, BUT NOT
                                                         LESS THAN 700 POUNDS PER SQUARE
                                                         INCH GAUGE

6.   70486    UGI UTILITIES -                  6,500     AT THE PRESSURE REQUESTED BY         TX EAST     TX EAST TRAN UGI UTILITIES
              WOMELSDORF, PA BERKS                       OPERATOR, BUT NOT MORE THAN 450      TRAN
              CO., PA                                    POUNDS PER SQUARE INCH GAUGE
</TABLE>

                                       B-1

<PAGE>

                                                            Contract #: 800394R5

                   EXHIBIT B, POINT(S) OF DELIVERY (Continued)
                               UGI UTILITIES, INC.

<TABLE>
<CAPTION>
                                       Maximum Daily
    Point of                             Delivery                                         Measurement
    Receipt          Description       Obligation (dth)  Delivery Pressure Obligation   Responsibilities    Owner        Operator*
    -------          -----------       ----------------  ----------------------------   ----------------    -----        ---------
<S> <C>      <C>                       <C>              <C>                             <C>              <C>           <C>
7.   70519   UGI UTILITIES - DAUPHIN        32,475      AT THE PRESSURE REQUESTED BY         TX EAST     TX EAST TRAN  UGI UTILITIES
             CO., PA DAUPHIN CO., PA.                   OPERATOR, BUT NOT MORE THAN 450      TRAN
                                                        POUNDS PER SQUARE INCH GAUGE

8.   71461   COLUMBIA GAS - RICH HILL,      5,190       AT THE PRESSURE REQUESTED BY         TX EAST     COLUMBIA GAS  UGI UTILITIES
             BUCKS CO., PA                              OPERATOR, BUT NOT MORE THAN 450      TRAN
                                                        POUNDS PER SQUARE INCH GAUGE

9.   71528   UGI. UTILITIES - LANCASTER     7,200       300 POUNDS PER SQUARE INCH           TX EAST     TX EAST TRAN  UGI UTILITIES
             CO., PA                                    GAUGE                                TRAN

10.  72571   COLUMBIA GAS - BERKS             519       AT THE PRESSURE REQUESTED BY         TX EAST     COLUMBIA GAS  UGI UTILITIES
             CO., PA                                    OPERATOR, BUT NOT MORE THAN 450      TRAN
                                                        POUNDS PER SQUARE INCH GAUGE

11.  79513   SS-1 STORAGE POINT             3,612       N/A                                  N/A         N/A           N/A
                                         04/01-10/31
                                            3,612
                                         11/01-03/31
12.  75577   COLUMBIA GAS -                     0       AS PROVIDED IN SECTION 6 OF THE      TX EAST     COLUMBIA GAS  COLUMBIA GAS
             PENNSBURG, PA, BUCKS CO.,                  GENERAL TERMS AND CONDITIONS         TRAM
             PA                                         OF PIPELINE'S FERC GAS TARIFF
</TABLE>

                                                              * Confirming Party

provided, however, that Pipeline is not obligated to deliver under Rate
Schedules FT-1, CDS and FTS-5 on any one day an aggregate of more than 93,631
dth per day to points of delivery 70011, 70069, 70070 and 71528 during the
period November 16 through April 15, and further provided, that during this time
period Pipeline is not obligated to deliver under Rate Schedules FT-1, CDS and
FTS-5 on any one day an aggregate of more than 111,404 dth to points of delivery
70321, 70322, 70486, 70519, 71461 and 72571;

                                       B-2

<PAGE>

                                                            Contract #: 800394R5

                   EXHIBIT B, POINT(S) OF DELIVERY (Continued)
                               UGI UTILITIES, INC.

and further provided, however, that until changed by a subsequent Agreement
between Pipeline and Customer, Pipeline's aggregate maximum daily delivery
obligations under this and all other firm Service Agreements existing between
Pipeline and Customer, shall in no event exceed the following:

<TABLE>
<CAPTION>
                           Aggregate Maximum Daily
Point of Delivery         Delivery Obligation (dth)
-----------------         -------------------------
<S>                       <C>
      No. 1                        68,785
      No. 2                         5,190
      No. 3                        49,000
      No. 4                        17,000
      No. 5                        70,880
      No. 6                         6,500
      No. 7                        58,000
      No. 8                         5,190
      No. 9                        10,023
      No. 10                        7,186
      No. 11                        3,612
</TABLE>

Further, pursuant to Section 14.9 of the General Terms and Conditions of
Pipeline's FERC Gas Tariff Sixth Revised Volume/No. 1, Customer has been
allocated firm capacity at the Points of Delivery as shown below for deliveries
under Rate Schedules CDS, FT-1, SCT, and/or SS-1 at such pressure available in
Pipeline's facilities at the point of delivery, subject to receipt of such
quantities being acceptable to the Owner and Operator of the Point of Delivery:

                                       B-3

<PAGE>

                                                            Contract #: 800394R5

                   EXHIBIT B, POINT(S) OF DELIVERY (Continued)
                               UGI UTILITIES, INC.

<TABLE>
<CAPTION>

                                             Section 14.9
     Point of                                Firm Capacity    Measurement
     Delivery       Description                 (dth/d)     Responsibilities     Owner     Operator
     --------       -----------              -------------  ----------------     -----     --------
<S>  <C>      <C>                            <C>            <C>               <C>         <C>
1.    70069   UGI UTILITIES - COLUMBIA, PA      12,700          TX EAST         TX EAST   UGI UTILITIES
              LANCASTER CO., PA                                 TRAN            TRAN

2.    70070   COLUMBIA GAS - COLUMBIA, PA       31,328          TX EAST         TX EAST   UGI UTILITIES
              LANCASTER, PA LANCASTER CO.,                      TRAN            TRAN
              PA

3.    70321   UGI UTILITIES - LEBANON, PA        1,253          TX EAST         TX EAST   UGI UTILITIES
              LEBANON CO., PA                                   TRAN            TRAN

4.    70486   UGI UTILITIES- WOMELSDORF, PA      5,000          TX EAST         TX EAST   UGI UTILITIES
              BERKS CO., PA                                     TRAN            TRAN

5.    71438   DAUPHIN CO. GAS - ANNVILLE,        2,580          TX EAST         TX EAST   PPL GAS
              LEBANON CO., PA                                   TRAN            TRAN      UTILITIES

6.    71461   COLUMBIA GAS - RICH HILL             840          TX EAST         COLUMBIA  UGI UTILITIES
              BUCKS CO., PA                                     TRAN            GAS

7.    72571   COLUMBIA GAS - BALLY, PA          13,984          TX EAST         COLUMBIA  UGI UTILITIES
              BERKS CO., PA                                     TRAN            GAS

8.    75577   COLUMBIA GAS - PENNSBURG, PA      75,440          TX EAST         COLUMBIA  COLUMBIA
              BUCKS CO., PA                                     TRAN            GAS       GAS
</TABLE>

SIGNED FOR IDENTIFICATION

PIPELINE:        /s/
         ----------------------------------

CUSTOMER:        /s/
         ----------------------------------

SUPERSEDES EXHIBIT B DATED: November 1, 2001

                                       B-4

<PAGE>

                                                            Contract #: 800394R5

    EXHIBIT C, ZONE BOUNDARY ENTRY QUANTITY AND ZONE BOUNDARY EXIT QUANTITY,
        DATED________, TO THE SERVICE AGREEMENT UNDER RATE SCHEDULE FT-1
         BETWEEN TEXAS EASTERN TRANSMISSION CORPORATION ("PIPELINE") AND
                UGI UTILITIES,INC. ("CUSTOMER"), DATED _________

                          ZONE BOUNDARY ENTRY QUANTITY

                                      Dth/D

                                       To
<TABLE>
<CAPTION>
FROM     STX  ETX  WLA  ELA  M1-24  M1-30  M1-TXG  M1-TGC  M2-24  M2-30  M2-TXG  M2-TGC  M2   M3
----     ---  ---  ---  ---  -----  -----  ------  ------  -----  -----  ------  ------  --   --
<S>      <C>  <C>  <C>  <C>  <C>    <C>    <C>     <C>     <C>    <C>    <C>     <C>     <C> <C>
STX
ETX                          1456
WLA
ELA                                 31019
M1-24 ,                                                    1456
M1-30                                                             31019
M1-TXG
M1-TGC
M2-24
M2-30
M2-TXG
M2-TGC
M2                                                                                           32475
M3
</TABLE>

                                       C-1

<PAGE>

                                                            Contract #: 800394R5

                              EXHIBIT C (Continued)
                               UGI UTILITIES, INC.

                          ZONE BOUNDARY EXIT QUANTITY
                                      Dth/D

                                       To

<TABLE>
<CAPTION>
FROM     STX  ETX  WLA  ELA  M1-24  M1-30  M1-TXG  M1-TGC  M2-24  M2-30  M2-TXG  M2-TGC  M2   M3
----     ---  ---  ---  ---  -----  -----  ------  ------  -----  -----  ------  ------  --   --
<S>      <C>  <C>  <C>  <C>  <C>    <C>    <C>     <C>     <C>    <C>    <C>     <C>     <C> <C>
STX
ETX
WLA
ELA
M1-24                                                      1456
M1-30                                                             31019
M1-TXG
M1-TGC
M2-24
M2-30
M2-TXG
M2-TGC
M2                                                                                           32475
M3
</TABLE>

SIGNED FOR IDENTIFICATION

PIPELINE: _________________________________

CUSTOMER: _________________________________

SUPERSEDES EXHIBIT C DATED: November 1, 2001

                                       C-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}]]