U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES AND

EXCHANGE ACT OF 1934

For Quarter Ended March 31, 2001

0-643 Corning Natural Gas Corp

(Commission File Number) (Exact name of registrant as specified

in its charter)New York 16-0397420(State or other jurisdiction of (IRS Employer ID No)

incorporation or organization)

330 W William Street, PO Box 58, Corning, New York 14830

(Address of principal executive offices)

607-936-3755

(Registrant's telephone number, including area code)

Indicate by checkmark whether the registrant (1) filed all reports required to be filed by Section 13 Or 15(d) of the Exchange Act of 1934 during the past 12 months and (2) has been subject to such filing requirements for at least the past 90 days. Yes ___X___ No ______.

Number of shares of Common Stock outstanding at the end of the quarter-460,000.

There is only one class of Common Stock and no Preference Stock outstanding.

CORNING NATURAL GAS CORPORATIONFORM 10-QSB FOR THE QUARTER ENDED MARCH 31, 2001

Managements Discussion and Analysis

As the Company's business is seasonal, the interim results should not be used as an indication of what results of the fiscal year 2001 may be.

Consolidated revenue of $13,863,000 for the quarter ended March 31, 2001 increased $4,880,000 from the quarter ended March 31, 2000 due primarily to an increase in Gas Company revenue. Gas Company revenue increased $4,945,000 due to an increase in the cost of gas at the wellhead, which is billed to customers. Increases and decreases in gas costs are passed through to customers, and are profit-neutral to the company.

Consolidated net income for the quarter ended March 31, 2001 was $712,587 compared to $492,727 in the same quarter the previous year. Earnings from gas operations increased $252,762 primarily as a result of a petition to the PSC to defer interest costs in excess of those predicted. This deferral resulted in reduced Gas Company expense of $173,000. The Appliance Company earnings of $52,306 are equal to same quarter last year. The Tax Center International and The Foodmart Plaza earnings continue to meet forecast levels, contributing an additional $21,780 to consolidated earnings. Corning Realty experienced a loss of $76,495 due to one-time costs involved in restructuring management. Corning Mortgage experienced a loss of $4,808 as expected as its license approval from the New York State banking authority was received in November 2000.

Segment Overview:

The following table reflects the year to date results of the segments consistent with the Company's internal financial reporting process. The following results are used in part, by management, both in evaluating the performance of, and in allocating resources to, each of these segments.

Gas	Appliance	Tax	Corning	Foodmart	Corning
Company	Corporation	Center	Realty	Plaza	Mortgage	Total
Revenue:
2001: 18,420,225	1,294,541	215,073	2,033,191	112,547	---	22,075,577
2000: 11,311,583	1,340,640	159,926	2,026,087	139,649	---	14,977,885
Net income (loss): 1)
2001: 710,123	161,723	48,166	-95,481	-5,569	-14,587	804,375
2000: 573,520	146,768	29,192	-57,155	14,792	---	707,117
Interest Income:
2001: 35,205	56,903	3,329	---	---	---	95,437
2000: 1,198	42,540	68	---	---	---	43,806
Interest Expense:
2001: 484,365	4,021	515	82,922	47,633	---	619,456
2000: 551,785	2,699	1,213	71,426	45,517	---	672,640
Total assets: (2)
2001: 28,539,945	3,319,675	243,164	1,961,513	1,115,431	173,545	35,353,273
2000: 23,305,696	3,044,522	187,064	1,941,345	1,207,704	---	29,686,331
Depreciation and amortization:
2001:243,119	116,775	6,360	90,111	16,985	---	473,350
2000:236,391	121,483	5,632	78,646	15,578	---	457,730
Income tax expense:
2001:417,548	87,151	24,813	-49,128	1,238	-5,489	476,133
2000:332,222	79,946	3,661	-29,517	-8,243	---	378,069

(1) Before elimination of intercompany interest.

(2) Total assets include property, plant and equipment, accounts receivable, inventories, cash and other amounts specifically related to each identified segment.

Interest income and expense have been displayed in the segment in which it has been earned or incurred. Segment interest expense other than the Gas Company is included within unregulated expenses in the consolidated statements of income.

In June 1998, June 1999 and June 2000 the Financial Accounting Standards Board ("FASB") issued Statements of Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative Instruments and Hedging Activities", SFAS No. 137, "Accounting for Derivative Instruments and Hedging Activities- Deferral of the Effective Date of FASB Statement No. 133" and SFAS No. 138, "Accounting for Certain Derivative Instruments and Certain Hedging Activities, an Amendment of FASB Statement No. 133". These Statements establish accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value. These statements require that changes in the derivative's fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Special accounting for qualifying hedges allows a derivate's gains and losses to offset related results on the hedged item in the statement of operations, and requires that the Company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting. During the first quarter of 2001, the Company adopted Statement of Financial Accounting Standards ("SFAS") No. 133, Accounting for Derivative Instruments and Hedging Activities. The Company has not identified any derivatives that meet criteria for a derivative instrument and does not participate in any hedging activities. As a result, management of the Company concluded that there was no material effect on the Companys consolidated financial position, results of operations or cash flows resulting from the adoption of SFAS No. 133 at March 31, 2001.

The information furnished herewith reflects all adjustments, which are in the opinion of management necessary to a fair statement of the results for the period. Certain information and footnote disclosure normally included in financial statements prepared in accordance with accounting principals generally accepted in the United States of America have been condensed or omitted pursuant to SEC rules and regulations, although the Company believes the disclosures which are made are adequate to make the information presented not misleading.

The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's latest annual report on Form 10-KSB. These statements have not been examined or certified by a firm of certified public accountants.

There were no sales of unregistered securities (debt or equity) during the quarter ended March 31, 2001.

SIGNATURESIn accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:

May 14, 2001 /S/ THOMAS K. BARRY

Thomas K. Barry, Chairman of the Board,

President and CEO.

Date:

May 14, 2001 /S/GARY K. EARLEY

Gary K. Earley, Treasurer

CORNING NATURAL GAS CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
March 31, 2001
	March 31, 2001			September 30, 2000
Assets
Utility plant:
Utility property, plant and equipment:	$22,589,046			$22,251,342
Non-utility - property, plant and equipment	4,199,656			4,176,447
Less accumulated depreciation	10,087,376			9,734,579
Total plant utility and non-utility net	16,701,326			16,693,210
Investments:
Marketable securities available for sale at fair value		1,207,614			1,334,094
Investment in joint venture		170,885			174,794
Total investments	1,378,499				1,508,888
Current assets:
Cash and cash equivalents	231,385			257,035
Customer A/R, less allowance for uncollectibles	4,854,034			1,310,689
Gas stored underground, at average cost	453,136			2,194,436
Gas and appliance inventories	596,160			638,891
Prepaid expenses	669,278			529,905
Prepaid income taxes	(112,214)			354,619
Total current assets	6,691,779			5,285,575
Deferred debits and other assets:
Regulatory assets:
Income taxes recoverable through rates	1,016,661			1,016,661
Prepaid pension costs	2,024,537			1,833,979
Unrecovered gas costs	801,748			1,362,394
Goodwill net of amortization	1,688,724			1,763,338
Unamortized debt issuance cost	338,979			349,759
Other	709,531			512,708
Total deferred debits and other assets	6,580,180			6,838,839
Total assets	31,351,784			30,326,512
			=========				=========
CORNING NATURAL GAS CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
March 31, 2001
Capitalization and liabilities:	March 31, 2001			September 30, 2000
Common stockholders' equity:
Common stock(common stock $5.00 par
value per share. Authorized 1,000,000
shares;issued and outstanding 460,000 shares)	2,300,000			2,300,000
Other paid-in capital	653,346			653,346
Retained earnings	2,622,318			1,967,389
Accumulated other comprehensive income-
net unrealized gain on securities available
for sale (net of income taxes)	19,098			130,790
Total common stockholders' equity	5,594,762			5,051,525
Long-term debt, less current installments	10,933,045			11,429,421
Current liabilities:
Current portion of long term debt	614,339			374,335
Borrowings under lines-of-credit	5,825,000			5,175,359
Accounts payable	2,195,721			1,715,628
Accrued expenses	582,630			591,221
Customer deposits and accrued interest	305,934			674,458
Deferred income taxes	0			120,103
Accrued general taxes	394,396			119,331
Supplier refunds	4,805			294,676
Dividends payable	0			149,500
Total current liabilities	9,922,825			9,214,611
Deferred credits and other liabilities:
Deferred income taxes	2,732,318			2,448,994
Deferred compensation and post-retirement
Benefits	2,094,952			2,089,854
Other	73,882			92,107
Total deferred credits and other liabilities	4,901,152			4,630,955
Total capitalization and liabilities	31,351,784			30,326,512
			=========			==========

Corning Natural Gas Corporation
Condensed Consolidated Statements of Income
Unaudited
Form 10 QSB				Quarter Ended					Six Months Ended
			March 31, 2001			March 31, 2000		March 31, 2001			March 31, 2000
			---------------------			---------------------		---------------------			---------------------
Utility Operating Revenues		$	12,350,289		$	7,404,771	$	18,420,225		$	11,318,118
			---------------------			---------------------		---------------------			---------------------
Cost and Expense
	Operating Expenses		11,083,905			6,360,186		16,789,710			9,861,946
	Interest Expense		144,184			277,297		484,365			551,785
	Income Tax		404,432			293,512		428,146			334,444
	Other Deductions, Net		11,394			3,049		21,972			2,222
			---------------------			---------------------		---------------------			---------------------
Total Costs and Expenses			11,643,915			6,934,044		17,724,193			10,750,397
Utility Operating Income			706,374			470,727		696,031			567,721
			---------------------			---------------------		---------------------			---------------------
Other Income			13,430			628		14,091			5,799
			---------------------			---------------------		---------------------			---------------------
Corning Natural Gas Appliance Corp.
	Operating Revenues		583,832			619,204		1,351,442			1,383,180
	Depreciation		56,567			58,935		116,776			121,483
	Operating Expense		447,633			476,379		985,792			1,034,983
	Federal Income Tax		27,326			31,585		87,151			79,946
	Equity in Earnings of Assoc. Cos.		(59,523)			(30,933)		(67,471)			(13,171)
			--------------------			---------------------		---------------------			---------------------
	Net Income of Appliance Corp.		(7,217)			21,372		94,252			133,597
			---------------------			---------------------		---------------------			---------------------
	Net Income	$	712,587		$	492,727	$	804,375		$	707,117
			============			============		============			============
Earnings Per Share-basic & diluted		$	1.549		$	1.071	$	1.749		$	1.537
Dividends Per Share		$	0		$	0	$	0.325		$	0.325
Dividends Declared		$	0		$	0	$	149,500		$	149,500
Shares of common stock outstanding were 460,000 at March 31, 2001
Earnings per share=Net Income as shown above divided by 460,000 shares.
Dividends per share=Dividends declared divided by shares outstanding at the time.

CORNING NATURAL GAS CORPORATION
Statement of Comprehensive Income
Unaudited
Form 10 QSB				Quarter Ended						Six Months Ended
		March 31,2001						March 31, 2000		March 31, 2001	March 31, 2000
			--------------------					----------------------		-----------------------				-----------------------
Net Income	$	712,577			$	492,727			$	804,375	$		707,117
Other comprehensive income, net of tax:
Unrealized gains on securities:		91,461				36,393				71,230		80,352
			--------------------			-----------------------				----------------------			------------------------
Comprehensive Income	$	804,038			$	529,120			$	875,605	$		787,469
			===========				============			=============			===============

CORNING NATURAL GAS CORPORATION AND SUBSIDIARY
Consolidated Statements of Cash Flows
For the Six Months Ended March 31, 2001 & 2000
Form 10-QSB
					March 31, 2001		March 31, 2000
Cash flows from operating activities:
	Net income			$	804,375	$	707,117
	Adjustments to reconcile net income to net cash
		provided by operating activities:
			Depreciation and amortization		473,350		476,135
			Loss(gain) on sale of marketable securities		126,479		(10,836)
			Deferred income taxes		283,324		0
			Loss on joint venture		3,909		0
Changes in assets and liabilities:
	(Increase) decrease in:
			Accounts receivable		(3,543,345)		(619,119)
			Gas stored underground		1,741,300		(476,294)
			Gas and appliance inventories		42,731		60,725
			Prepaid expenses		(139,373)		(156,182)
			Unrecovered gas costs		560,646		(131,905)
			Prepaid income taxes		466,833		260,134
			Deferred income tax asset		(120,103)		118,046
			Deferred charges-pension and other		(185,460)		(191,658)
			Other assets		(196,823)		19,846
	Increase(decrease) in:
			Accounts payable		480,093		406,361
			Customer deposit liability		(368,524)		0
			Accrued general taxes		275,065		378,742
			Supplier refunds due customers		(289,872)		16,057
			Other liabilities and deferred credits		(26,816)		(180,113)
					----------------------		----------------------
			Net cash provided by operating activities		387,789		677,056
					----------------------		----------------------
Cash flows from investing activities:
		Capital expenditures, net of minor disposals			(657,208)		(529,061)
					----------------------		----------------------
			Net cash used in investing activities		(657,208)		(529,061)
					----------------------		----------------------
Cash flows from financing activities:
		Net borrowings under lines-of-credit			649,641		290,000
		Dividends paid			(149,500)		(149,500)
		Repayment of long-term debt			(256,372)		(264,624)
					----------------------		----------------------
			Net cash provided by (used in) financing activities		243,769		(124,124)
			Net (decrease) increase in cash		(25,650)		23,871
			Cash and cash equivalents at beginning of period		257,035		205,787
					----------------------		----------------------
			Cash and cash equivalents at end of period	$	231,385	$	229,658
					=============		=============
Supplemental disclosures of cash flow information:
	Cash paid during the period for:
		Interest		$	469,317		301,269
		Income taxes			153,618		158,600
					=============		=============