As explained in Note 1, Summary of Significant Accounting Policies, the Utilities account for regulated operations in accordance with FASB ASC Topic 980, Regulated Operations. The following regulatory assets and regulatory liabilities were reflected in the balance sheets of the Company, Spire Missouri and Spire Alabama as of June 30, 2020, September 30, 2019, and June 30, 2019.

	June 30,		September 30,		June 30,
Spire	2020		2019		2019
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	30.1	$	30.1	$	30.1
Unamortized purchased gas adjustments		9.6		18.2		18.9
Other		30.5		30.3		30.0
Total Current Regulatory Assets		70.2		78.6		79.0
Noncurrent:
Pension and postretirement benefit costs		415.3		416.6		335.7
Cost of removal		160.4		150.9		137.4
Future income taxes due from customers		120.7		108.8		105.7
Energy efficiency		38.2		35.0		32.6
Unamortized purchased gas adjustments		—		9.1		—
Other		57.2		47.2		45.7
Total Noncurrent Regulatory Assets		791.8		767.6		657.1
Total Regulatory Assets	$	862.0	$	846.2	$	736.1
Regulatory Liabilities:
Current:
Pension and postretirement benefit costs	$	5.8	$	5.8	$	5.8
Unamortized purchased gas adjustments		21.1		26.2		3.3
Other		31.9		28.8		22.2
Total Current Regulatory Liabilities		58.8		60.8		31.3
Noncurrent:
Deferred taxes due to customers		156.4		179.8		152.9
Pension and postretirement benefit costs		157.6		142.3		119.8
Accrued cost of removal		26.4		41.6		45.8
Unamortized purchased gas adjustments		79.9		—		47.9
Other		29.3		35.3		29.9
Total Noncurrent Regulatory Liabilities		449.6		399.0		396.3
Total Regulatory Liabilities	$	508.4	$	459.8	$	427.6

	June 30,		September 30,		June 30,
Spire Missouri	2020		2019		2019
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	21.9	$	21.9	$	21.9
Unamortized purchased gas adjustments		0.1		—		0.8
Other		7.5		7.5		7.5
Total Current Regulatory Assets		29.5		29.4		30.2
Noncurrent:
Future income taxes due from customers		111.8		102.9		101.3
Pension and postretirement benefit costs		340.6		333.3		269.8
Energy efficiency		38.2		35.0		32.6
Unamortized purchased gas adjustments		—		9.1		—
Cost of removal		1.3		—		—
Other		40.0		27.2		25.5
Total Noncurrent Regulatory Assets		531.9		507.5		429.2
Total Regulatory Assets	$	561.4	$	536.9	$	459.4
Regulatory Liabilities:
Current:
Pension and postretirement benefit costs	$	3.6	$	3.6	$	3.6
Unamortized purchased gas adjustments		20.0		25.4		2.5
Other		27.2		23.3		17.3
Total Current Regulatory Liabilities		50.8		52.3		23.4
Noncurrent:
Deferred taxes due to customers		139.0		162.5		135.5
Pension and postretirement benefit costs		136.4		119.1		84.6
Accrued cost of removal		—		15.7		18.4
Unamortized purchased gas adjustments		79.9		—		47.9
Other		23.6		29.2		24.1
Total Noncurrent Regulatory Liabilities		378.9		326.5		310.5
Total Regulatory Liabilities	$	429.7	$	378.8	$	333.9

	June 30,		September 30,		June 30,
Spire Alabama	2020		2019		2019
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	7.2	$	7.3	$	7.3
Unamortized purchased gas adjustments		9.5		17.7		17.6
Other		6.7		8.9		9.0
Total Current Regulatory Assets		23.4		33.9		33.9
Noncurrent:
Pension and postretirement benefit costs		69.9		77.2		59.3
Cost of removal		159.1		150.9		137.4
Future income taxes due from customers		2.2		—		—
Other		0.9		3.1		3.2
Total Noncurrent Regulatory Assets		232.1		231.2		199.9
Total Regulatory Assets	$	255.5	$	265.1	$	233.8
Regulatory Liabilities:
Current:
Pension and postretirement benefit costs	$	2.2	$	2.2	$	2.3
Other		0.3		1.2		1.1
Total Current Regulatory Liabilities		2.5		3.4		3.4
Noncurrent:
Pension and postretirement benefit costs		17.2		19.1		25.8
Other		3.7		3.9		4.0
Total Noncurrent Regulatory Liabilities		20.9		23.0		29.8
Total Regulatory Liabilities	$	23.4	$	26.4	$	33.2

A portion of the Company’s and Spire Missouri’s regulatory assets are not earning a return, as shown in the table below:

	June 30,		September 30,		June 30,
	2020		2019		2019
Spire
Pension and postretirement benefit costs	$	234.7	$	211.1	$	142.1
Future income taxes due from customers		118.4		108.8		105.7
Other		13.2		14.3		14.5
Total Regulatory Assets Not Earning a Return	$	366.3	$	334.2	$	262.3

Spire Missouri
Pension and postretirement benefit costs	$	234.7	$	211.1	$	142.1
Future income taxes due from customers		111.8		102.9		101.3
Other		13.2		14.3		14.5
Total Regulatory Assets Not Earning a Return	$	359.7	$	328.3	$	257.9

Like all the Company’s regulatory assets, these regulatory assets are expected to be recovered from customers in future rates. The recovery period for the future income taxes due from customers and pension and other postretirement benefit costs could be 20 years or longer, based on current Internal Revenue Service guidelines and average remaining service life of active participants, respectively. The other items not earning a return are expected to be recovered over a period not to exceed 15 years, consistent with precedent set by the MoPSC. Spire Alabama does not have any regulatory assets that are not earning a return.

On March 7, 2018, the MoPSC issued its order in two general rate cases (docketed as GR-2017-0215 and GR-2017-0216), approving new tariffs that became effective on April 19, 2018. On April 25, 2018, Spire Missouri filed an appeal of the MoPSC’s order related to the disallowance of certain pension costs incurred prior to 1997 ($28.8), real estate sold in 2014 ($1.8), and rate case expenses ($0.9) to Missouri’s Southern District Court of Appeals. On March 15, 2019, the appeal was denied by the Southern District Court of Appeals, and Spire Missouri requested review by the Missouri Supreme Court, which agreed to take the case. Oral arguments were made before the Missouri Supreme Court on January 29, 2020. The case is awaiting a decision.

Spire Missouri filed Infrastructure System Replacement Surcharge (ISRS) applications which were approved by the MoPSC and the costs associated therewith were included in new tariffs that went into effect from our last general rate cases on April 19, 2018. Since the Company’s last rate cases, ISRS filings became effective on October 8, 2018, May 25, 2019, November 16, 2019, and May 25, 2020, bringing total authorized future annualized ISRS revenues for Spire Missouri to $40.3. Additional ISRS requests totaling $8.7 were filed August 4, 2020.

On November 19, 2019, the Missouri Western District Court of Appeals issued rulings (“ISRS rulings”) that determined certain capital investments in 2016 through 2018 were not eligible for recovery under the ISRS. The ISRS rulings upheld appeals by the Office of Public Counsel (OPC) that contested recovery of portions of Spire Missouri’s ISRS and overturned the three prior MoPSC decisions. In the third quarter of fiscal 2020, Spire Missouri reached a settlement with the MoPSC staff and the OPC to resolve these cases, which was subsequently approved by the MoPSC. Pursuant to the settlement, Spire Missouri will make a customer refund in the total amount of $15.0 as a one-time bill credit to be issued in August 2020. This refund will be applied to the $12.2 provision accrued in fiscal year 2019, while the remaining balance of $2.8 impacts fiscal 2020 revenue and earnings. The provision accrued in the first six months of fiscal 2020 was $4.8, so $2.0 was reversed in the quarter ended June 30, 2020. Pursuant to the settlement, ISRS rates remain unchanged.

Additional ISRS revenues are currently under appeal related to the January 2019 ISRS filings with annual authorized revenue of $12.4, as approved by the MoPSC effective May 25, 2019, and the July 2019 ISRS filings with annual authorized revenue totaling $8.8, which was approved by the MoPSC effective November 16, 2019. Those cases are in various stages of briefing, and no decisions have yet been rendered by the Missouri Western District Court of Appeals. In future periods, Spire Missouri will evaluate the need for any additional provisions based upon new information and further developments.

In January 2020, legislation was introduced in both the Missouri House and Senate to clarify language in the statute governing the ISRS mechanism. Specifically, the bills sought to ensure that Spire Missouri could continue to upgrade its infrastructure and enhance its safety and reliability, while securing timely recovery of costs incurred. House Bill 2120 was passed by the General Assembly on May 15, 2020 and signed into law by Missouri Governor Parson on July 2, 2020, clarifying which infrastructure investments qualify for ISRS recovery under the statute. The provisions of the bill become effective August 28, 2020. The Company expects those amendments to apply to new ISRS applications made on or after that date.

Spire Missouri requested an Accounting Authority Order (AAO) on May 18, 2020 to identify, track, document, accumulate, and defer in a regulatory asset from March 1, 2020 forward, the following: (1) its actual reasonable and prudently incurred costs related to the COVID-19 pandemic, including but not limited to (a) new or incremental operating and maintenance expense related to protecting employees and customers, and to plan for and communicate about impacts of the pandemic, (b) increased bad debt expense to the extent it exceeds levels included in the cost of service, (c) costs related to preparing for and any actual sequestration of employees, and (d) costs related to new assistance programs implemented to aid customers with payment of natural gas bills during the pandemic; (2) lost revenues related to the COVID-19 pandemic; (3) less costs avoided related to COVID-19; and (4) carrying costs. These items would be tracked and deferred for consideration by the Commission for rate recovery in the Company’s next general rate case. Carrying costs would be calculated using Spire Missouri’s cost of capital,

exclusive of related taxes, as determined in its most recent rate case. Hearings are scheduled for later this calendar year. In the meantime, no related regulatory assets have been recorded.

As part of their annual updates for Rate Stabilization and Equalization (RSE), on November 25, 2019, Spire Alabama and Spire Gulf filed an increase for rate year 2020 of $5.9 and $1.6, respectively, which became effective December 1, 2019. In addition, Spire Alabama was granted authority to begin an off-system sales and capacity release sharing program similar to the program currently in place at Spire Missouri.

Spire Alabama filed a Gas Supply Adjustment (GSA) rate decrease effective February 1, 2020, of approximately $13.9 (on an annual basis) primarily attributable to lower natural gas prices and results of the recently approved off-system sale and capacity release share program.

On March 24, 2020, the APSC approved an application for up to $150.0 of long-term debt financing for Spire Alabama.

Spire Alabama is tracking costs and other impacts of COVID-19 in the event that some of these items could be recoverable under its Enhanced Stability Reserve (ESR), but no related changes to regulatory assets or liabilities have been recorded to date.

On November 21, 2019, the Federal Energy Regulatory Commission (FERC) issued an Order on Rehearing of its August 3, 2018 order issuing a certificate of public convenience and necessity to Spire STL Pipeline LLC. In the Order on Rehearing, the FERC dismissed or denied the outstanding requests for rehearing filed by several parties, dismissed the request for stay filed by one party and noted the withdrawal of the request for rehearing by another party. On January 21, 2020, two of the rehearing parties timely filed petitions for review of the FERC’s orders with the Court of Appeals for the District of Columbia Circuit. Spire STL Pipeline and Spire Missouri have intervened in this matter.