REGULATORY MATTERS

As explained in Note 1, Summary of Significant Accounting Policies, Laclede Gas and Alagasco account for regulated operations in accordance with FASB ASC Topic 980, "Regulated Operations." The following regulatory assets and regulatory liabilities, including purchased gas adjustments, were reflected in the balance sheets of the Company and the Utilities as of June 30, 2016, September 30, 2015 and June 30, 2015.



	June 30,		September 30,		June 30,
Spire	2016		2015		2015
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	26.9	$	22.0	$	21.6
Unamortized purchased gas adjustments	5.4		12.9		—
Other	10.6		5.6		5.4
Total Regulatory Assets (current)	42.9		40.5		27.0
Non-current:
Future income taxes due from customers	146.4		134.5		130.3
Pension and postretirement benefit costs	434.4		448.7		424.6
Cost of removal	81.2		78.9		19.5
Purchased gas costs	14.7		24.1		20.9
Energy efficiency	24.4		22.3		21.3
Other	29.6		29.1		28.0
Total Regulatory Assets (non-current)	730.7		737.6		644.6
Total Regulatory Assets	$	773.6	$	778.1	$	671.6

Regulatory Liabilities:
Current:
Rate Stabilization and Equalization (RSE) adjustment	$	2.9	$	12.2	$	10.3
Unbilled service margin	6.4		6.4		5.4
Refundable negative salvage	9.3		10.8		10.8
Unamortized purchased gas adjustments	—		28.2		52.3
Other	3.8		3.0		2.9
Total Regulatory Liabilities (current)	22.4		60.6		81.7
Non-current:
Postretirement liabilities	27.2		28.9		24.5
Refundable negative salvage	9.3		16.2		16.2
Accrued cost of removal	55.4		58.7		59.1
Other	13.8		15.5		15.1
Total Regulatory Liabilities (non-current)	105.7		119.3		114.9
Total Regulatory Liabilities	$	128.1	$	179.9	$	196.6



	June 30,		September 30,		June 30,
Laclede Gas	2016		2015		2015
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	20.2	$	15.5	$	15.2
Unamortized purchased gas adjustments	0.6		12.9		—
Other	3.5		0.7		2.3
Total Regulatory Assets (current)	24.3		29.1		17.5
Non-current:
Future income taxes due from customers	146.4		134.5		130.3
Pension and postretirement benefit costs	352.1		368.0		362.9
Purchased gas costs	14.7		24.1		20.9
Energy efficiency	24.4		22.3		21.3
Other	25.0		24.7		22.6
Total Regulatory Assets (non-current)	562.6		573.6		558.0
Total Regulatory Assets	$	586.9	$	602.7	$	575.5

Regulatory Liabilities:
Current:
Unamortized purchased gas adjustments	$	—	$	—	$	20.8
Other	1.3		0.6		0.6
Total Regulatory Liabilities (current)	1.3		0.6		21.4
Non-current:
Accrued cost of removal	55.4		58.7		59.1
Other	10.3		11.9		11.8
Total Regulatory Liabilities (non-current)	65.7		70.6		70.9
Total Regulatory Liabilities	$	67.0	$	71.2	$	92.3



	June 30,		September 30,		June 30,
Alagasco	2016		2015		2015
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	6.7	$	6.5	$	6.4
Unamortized purchased gas adjustments	4.8		—		—
Other	7.1		4.9		3.1
Total Regulatory Assets (current)	18.6		11.4		9.5
Non-current:
Pension and postretirement benefit costs	82.3		80.7		61.7
Cost of removal	81.2		78.9		19.5
Other	4.0		4.0		5.4
Total Regulatory Assets (non-current)	167.5		163.6		86.6
Total Regulatory Assets	$	186.1	$	175.0	$	96.1

Regulatory Liabilities:
Current:
RSE adjustment	$	2.9	$	12.2	$	10.3
Unbilled service margin	6.4		6.4		5.4
Refundable negative salvage	9.3		10.8		10.8
Unamortized purchased gas adjustments	—		28.2		31.5
Other	2.5		2.4		2.3
Total Regulatory Liabilities (current)	21.1		60.0		60.3
Non-current:
Postretirement liabilities	27.2		28.9		24.5
Refundable negative salvage	9.3		16.2		16.2
Other	3.5		3.6		3.6
Total Regulatory Liabilities (non-current)	40.0		48.7		44.3
Total Regulatory Liabilities	$	61.1	$	108.7	$	104.6

A portion of the Company's and Laclede Gas' regulatory assets are not earning a return, as shown in the schedule below:



	Spire						Laclede Gas
	June 30,		September 30,		June 30,		June 30,		September 30,		June 30,
($ Millions)	2016		2015		2015		2016		2015		2015
Regulatory Assets Not Earning a Return:
Future income taxes due from customers	$	146.4	$	134.5	$	130.3	$	146.4	$	134.5	$	130.3
Pension and postretirement benefit costs	203.8		223.7		221.2		203.8		223.7		221.2
Other	13.2		14.2		14.6		13.2		14.2		14.6
Total Regulatory Assets Not Earning a Return	$	363.4	$	372.4	$	366.1	$	363.4	$	372.4	$	366.1

Like all the Company's regulatory assets, these regulatory assets are expected to be recovered from customers in future rates. The Company and Laclede Gas expect these items to be recovered over a period not to exceed 15 years consistent with precedent set by the MoPSC. The portion of regulatory assets related to pensions and other postemployment benefits that pertains to unfunded differences between the projected benefit obligation and plan assets also does not earn a rate of return. Alagasco does not have any regulatory assets that are not earning a return.