Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

6. Segment Information

We use the management approach to identify operating segments. We organize our business around differences in regulatory environment and/or products or services, and the operating results of each segment are regularly reviewed by the chief operating decision maker (our Chief Executive Officer) in order to make decisions about resources and to assess performance. The segments are evaluated based on their pre-tax operating income. Our operations comprise three operating segments:

• Regulated Energy. The regulated energy segment includes natural gas distribution, electric distribution and natural gas transmission operations. All operations in this segment are regulated, as to their rates and services, by the PSC having jurisdiction in each operating territory or by the FERC in the case of Eastern Shore.

• Unregulated Energy. The unregulated energy segment includes natural gas marketing, propane distribution and propane wholesale marketing operations, which are unregulated as to their rates and charges for their services.

• Other. The “other” segment consists primarily of the advanced information services operation, unregulated subsidiaries that own real estate leased to Chesapeake and certain corporate costs not allocated to other operations.

The following table presents information about our reportable segments.

	Three Months Ended						Nine Months Ended
For the Perionds Ended September 30,	2011			2010			2011			2010
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy	$	53,435		$	53,112		$	192,130		$	196,957
Unregulated Energy		23,720			20,134			112,163			103,654
Other		3,455			3,220			9,746			9,176
Total operating revenues, unaffiliated customers	$	80,610		$	76,466		$	314,039		$	309,787
Intersegment Revenues (1)
Regulated Energy	$	354		$	300		$	988		$	822
Unregulated Energy		1			—			1			364
Other		196			197			586			644
Total intersegment revenues	$	551		$	497		$	1,575		$	1,830
Operating Income (Loss)
Regulated Energy	$	7,023		$	6,536		$	31,194		$	32,360
Unregulated Energy		(1,472	)		(2,237	)		7,047			4,732
Other and eliminations		43			284			(32	)		650
Total operating income		5,594			4,583			38,209			37,742
Other income, net of other expenses		649			102			699			206
Interest		2,389			2,256			6,654			6,924
Income taxes		1,457			801			12,590			12,082
Net income	$	2,397		$	1,628		$	19,664		$	18,942

⁽¹⁾ All significant intersegment revenues are billed at market rates and have been eliminated from consolidated operating revenues.

	September 30,		December 31,
(in thousands)	2011		2010
Identifiable Assets
Regulated energy	$	528,492	$	520,192
Unregulated energy		96,760		113,039
Other		32,264		37,762
Total identifiable assets	$	657,516	$	670,993

Our operations are almost entirely domestic. Our advanced information services subsidiary, BravePoint, has infrequent transactions in foreign countries, primarily Canada, which are denominated and paid in U.S. dollars. These transactions are immaterial to the consolidated revenues.