REGULATORY MATTERS	9 Months Ended
Sep. 30, 2014
Regulated Operations [Abstract]
REGULATORY MATTERS	REGULATORY MATTERS The Company is subject to regulation by the APSC which established the Rate Stabilization and Equalization (RSE) rate-setting process in 1983. The Company’s current RSE order had an original term extending through December 31, 2014. On December 20, 2013, the APSC issued a final written order modifying the RSE effective January 1, 2014 extending the term of the order beyond September 30, 2018 unless the APSC enters an order to the contrary in a manner consistent with law. In the event of unforeseen circumstances, whether physical or economic, of the nature of the force majeure and including a change in control, the APSC and the Company will consult in good faith with respect to modifications, if any. Effective January 1, 2014, the Company’s allowed range of return on average common equity is 10.5% to 10.95% with an adjusting point of 10.8%. The Company is eligible to receive a performance-based adjustment of 5 basis points to the return on equity adjusting point, based on meeting certain customer satisfaction criteria. The Company's previous allowed return on average common equity was 13.15% to 13.65% through December 31, 2013. Under the RSE, the APSC conducts quarterly reviews to determine whether the Company’s return on average common equity at the end of the Rate Year will be within the allowed range of return. Reductions in rates can be made quarterly to bring the projected return within the allowed range; increases, however, are allowed only once each Rate Year, effective December 1, and cannot exceed 4.0% of prior-year revenues. The Company’s year-end equity under the RSE is limited to 56.5% of total capitalization, subject to certain adjustments. During the transition period ended September 30, 2014 and the calendar years ended December 31, 2013 and 2012, the Company had net pre-tax reductions in revenues of $22.5, $10.6 and $6.3 , respectively, to bring the return on average equity to the midpoint within the allowed range of return. Under the provisions of the RSE, there was no change to revenue effective December 1, 2014. There was an $8.5 decrease, a $10.3 and $7.8 increase in revenue, effective January 1, 2014, December 1, 2013 and 2012, respectively. The inflation-adjusted Cost Control Mechanism (CCM) established by the APSC, allows for annual changes to operations and maintenance (O&M) expense compared to a Base Year, defined as Alagasco’s 2007 actual Rate Year O&M expense, inflation-adjusted to September 30, 2013 using the Consumer Price Index for All Urban Consumer (Base Year O&M). An “Index Range” is established each Rate Year using Base Year O&M, inflation-adjusted using the June Consumer Price Index For All Urban Consumers for that Rate Year plus or minus 1.75% (Index Range). If Rate Year O&M expense falls within the Index Range, no adjustment is required. If Rate Year O&M expense exceeds the Index Range, three quarters of the difference is returned to customers through future rate adjustments. To the extent that Rate Year O&M is less than the Index Range, the utility benefits by one half of the difference through future rate adjustments. Certain items that fluctuate based on situations demonstrated to be beyond the Company’s control may be excluded from the CCM calculation. The Company’s O&M expense fell within the Index Range for the Rate Years ended September 30, 2013, 2012 and 2011. For the Rate Year ended September 30, 2014, the Company’s O&M expense fell below the Index Range resulting in the Company benefitting by one half of the difference, or $2.4 pre-tax, with the related impact to rates effective December 1, 2014. The APSC approved an Enhanced Stability Reserve (ESR) in 1998 which was subsequently modified and expanded in 2010. As currently approved, the ESR provides deferred treatment and recovery for the following: (1) extraordinary O&M expenses related to environmental response costs; (2) extraordinary O&M expenses related to self-insurance costs that exceed $1.0 per occurrence; (3) extraordinary O&M expenses, other than environmental response costs and self-insurance costs, resulting from a single force majeure event or multiple force majeure events greater than $0.3 and $0.4, respectively, during a Rate Year; and (4) negative individual large commercial and industrial customer budget revenue variances that exceed $0.4 during a Rate Year. Charges to the ESR are subject to certain limitations which may disallow deferred treatment and which proscribe the timing of recovery. Current funding of the ESR is provided as a reduction to the refundable negative salvage balance over its nine year term beginning December 1, 2010. Subsequent to the nine year period and subject to APSC authorization, The Company anticipates recovering underfunded ESR balances over a five year amortization period with an annual limitation of $0.7. Amounts in excess of this limitation are deferred for recovery in future years.

REGULATORY MATTERS

The Company is subject to regulation by the APSC which established the Rate Stabilization and Equalization (RSE) rate-setting process in 1983. The Company’s current RSE order had an original term extending through December 31, 2014. On December 20, 2013, the APSC issued a final written order modifying the RSE effective January 1, 2014 extending the term of the order beyond September 30, 2018 unless the APSC enters an order to the contrary in a manner consistent with law. In the event of unforeseen circumstances, whether physical or economic, of the nature of the force majeure and including a change in control, the APSC and the Company will consult in good faith with respect to modifications, if any. Effective January 1, 2014, the Company’s allowed range of return on average common equity is 10.5% to 10.95% with an adjusting point of 10.8%. The Company is eligible to receive a performance-based adjustment of 5 basis points to the return on equity adjusting point, based on meeting certain customer satisfaction criteria. The Company's previous allowed return on average common equity was 13.15% to 13.65% through December 31, 2013.

Under the RSE, the APSC conducts quarterly reviews to determine whether the Company’s return on average common equity at the end of the Rate Year will be within the allowed range of return. Reductions in rates can be made quarterly to bring the projected return within the allowed range; increases, however, are allowed only once each Rate Year, effective December 1, and cannot exceed 4.0% of prior-year revenues. The Company’s year-end equity under the RSE is limited to 56.5% of total capitalization, subject to certain adjustments. During the transition period ended September 30, 2014 and the calendar years ended December 31, 2013 and 2012, the Company had net pre-tax reductions in revenues of $22.5, $10.6 and $6.3 , respectively, to bring the return on average equity to the midpoint within the allowed range of return. Under the provisions of the RSE, there was no change to revenue effective December 1, 2014. There was an $8.5 decrease, a $10.3 and $7.8 increase in revenue, effective January 1, 2014, December 1, 2013 and 2012, respectively.

The inflation-adjusted Cost Control Mechanism (CCM) established by the APSC, allows for annual changes to operations and maintenance (O&M) expense compared to a Base Year, defined as Alagasco’s 2007 actual Rate Year O&M expense, inflation-adjusted to September 30, 2013 using the Consumer Price Index for All Urban Consumer (Base Year O&M). An “Index Range” is established each Rate Year using Base Year O&M, inflation-adjusted using the June Consumer Price Index For All Urban Consumers for that Rate Year plus or minus 1.75% (Index Range). If Rate Year O&M expense falls within the Index Range, no adjustment is required. If Rate Year O&M expense exceeds the Index Range, three quarters of the difference is returned to customers through future rate adjustments. To the extent that Rate Year O&M is less than the Index Range, the utility benefits by one half of the difference through future rate adjustments. Certain items that fluctuate based on situations demonstrated to be beyond the Company’s control may be excluded from the CCM calculation. The Company’s O&M expense fell within the Index Range for the Rate Years ended September 30, 2013, 2012 and 2011. For the Rate Year ended September 30, 2014, the Company’s O&M expense fell below the Index Range resulting in the Company benefitting by one half of the difference, or $2.4 pre-tax, with the related impact to rates effective December 1, 2014.

The APSC approved an Enhanced Stability Reserve (ESR) in 1998 which was subsequently modified and expanded in 2010. As currently approved, the ESR provides deferred treatment and recovery for the following: (1) extraordinary O&M expenses related to environmental response costs; (2) extraordinary O&M expenses related to self-insurance costs that exceed $1.0 per occurrence; (3) extraordinary O&M expenses, other than environmental response costs and self-insurance costs, resulting from a single force majeure event or multiple force majeure events greater than $0.3 and $0.4, respectively, during a Rate Year; and (4) negative individual large commercial and industrial customer budget revenue variances that exceed $0.4 during a Rate Year.

Charges to the ESR are subject to certain limitations which may disallow deferred treatment and which proscribe the timing of recovery. Current funding of the ESR is provided as a reduction to the refundable negative salvage balance over its nine year term beginning December 1, 2010. Subsequent to the nine year period and subject to APSC authorization, The Company anticipates recovering underfunded ESR balances over a five year amortization period with an annual limitation of $0.7. Amounts in excess of this limitation are deferred for recovery in future years.