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Subsequent Events
9 Months Ended
Jun. 30, 2011
Subsequent Events [Abstract]  
Subsequent Events
Note 17 – Subsequent Events

On July 8, 2011, Bath Electric Gas & Water Systems (BEGWS), a natural gas customer of the Company, filed new testimony concerning its November 27, 2010, petition (see discussion under Regulatory Matters on page 23). In the testimony filed by its consultants, BEGWS acknowledged receipt of the amount claimed but raised new claims not in the original petition. BEGWS now asserts that the Company owes it a refund of $345,747 and that the NYPSC should allow BEGWS recovery of $451,866 from its customers. The total claim including interest is $839,907. The Company plans to contest BEGWS' testimony. The Company and BEGWS met with the staff of the NY Department of Public Service (“Staff”) on July 11, 2011, to discuss findings to date on the petition. No order has been issued by the NYPSC on this matter. The meter investigation associated with the petition is ongoing. If there were any merit to the BEGWS claims, and the Company were required to pay BEGWS a refund, the Company would attempt to recover such amounts under its gas adjustment clause in its gas rates. Currently, the Company does not believe that the BEGWS petition, whether it is granted or not, would have a material financial impact.
 
 On July 11, 2011, a pre-hearing conference was held in Albany, New York, before the NYPSC's Administrative Law Judges (“ALJs”) for the purpose of establishing a hearing schedule for the current rate case. The Staff, the Company and other parties presented a proposed schedule to the ALJs at that meeting. The schedule proposed by the parties was adopted by the ALJs by ruling dated July 13, 2011. A NYPSC decision is the rate case is expected by May 1, 2012.
 
On July 14, 2011, the Company entered into a Multiple Disbursement Term Note and Credit Agreement in the amount of $2 million with Manufacturers and Traders Trust Company to fund construction projects in our NYPSC-mandated repair/replacement program for calendar year 2011. Until October 31, 2011, the note will be payable as interest only at a rate of the greater of 3.50% above 30-day LIBOR or 4.25%. On November 1, 2011 the note will convert to a permanent loan payable monthly for five years calculated on a ten-year amortization schedule with the Company's choice of two interest rate options. The first is a fixed interest rate of the greater of the bank's five-year “cost of funds” plus 3.0%, set two business days prior to the conversion, or 5.25%. The second option is a variable rate, adjusting daily, based on the greater of 3.25 basis points above 30-day LIBOR or 4.25%.
 
On July 15, 2011, the Staff filed a motion to strike certain passages of Company's witness testimony in the pending rate case before the NYPSC. The Staff motion sought to exclude the prepared direct testimony and exhibits of the Company's witnesses as they pertain to the proposed transfer of certain pipeline facilities, the establishment of a holding company structure, and expenditures for the expansion of Coming's franchise in the Town of Virgil. The Company filed a response on July 25, 2011 to oppose Staff's motion on the basis that all of the issues raised by the NYPSC can be properly considered in the rate case.  A ruling from the ALJs was issued on August 2, 2011. The ruling granted the Staff's motion insofar as it pertained to the transfer of pipeline facilities and formation of a holding company on the ground that those matters should be addressed in separate proceedings. The ruling denied the Staff's motion to strike evidence on the expansion of the Virgil franchise, concluding that the consideration of the financial aspects of the expansion was appropriate in the pending rate case.