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, 2021, September 30, 2020, and June 30, 2020.

	June 30,		September 30,		June 30,
Spire	2021		2020		2020
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	31.0	$	30.6	$	30.1
Unamortized purchased gas adjustments		0.5		5.5		9.6
Other		33.6		33.4		30.5
Total Current Regulatory Assets		65.1		69.5		70.2
Noncurrent:
Pension and postretirement benefit costs		377.3		439.3		415.3
Cost of removal		449.1		395.6		160.4
Future income taxes due from customers		130.2		123.5		120.7
Energy efficiency		45.6		39.6		38.2
Unamortized purchased gas adjustments		43.9		12.1		—
Other		73.3		59.3		57.2
Total Noncurrent Regulatory Assets		1,119.4		1,069.4		791.8
Total Regulatory Assets	$	1,184.5	$	1,138.9	$	862.0
Regulatory Liabilities:
Current:
Pension and postretirement benefit costs	$	5.8	$	5.8	$	5.8
Unamortized purchased gas adjustments		23.0		73.1		21.1
Other		18.0		34.1		31.9
Total Current Regulatory Liabilities		46.8		113.0		58.8
Noncurrent:
Deferred taxes due to customers		130.4		138.8		156.4
Pension and postretirement benefit costs		176.7		157.6		157.6
Accrued cost of removal		29.1		28.6		26.4
Unamortized purchased gas adjustments		42.2		4.4		79.9
Other		36.2		14.3		29.3
Total Noncurrent Regulatory Liabilities		414.6		343.7		449.6
Total Regulatory Liabilities	$	461.4	$	456.7	$	508.4

	June 30,		September 30,		June 30,
Spire Missouri	2021		2020		2020
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	21.9	$	21.9	$	21.9
Unamortized purchased gas adjustments		—		—		0.1
Other		14.7		10.2		7.5
Total Current Regulatory Assets		36.6		32.1		29.5
Noncurrent:
Future income taxes due from customers		121.5		114.6		111.8
Pension and postretirement benefit costs		287.3		332.6		340.6
Energy efficiency		45.6		39.6		38.2
Unamortized purchased gas adjustments		43.9		12.1		—
Cost of removal		29.4		7.1		1.3
Other		56.1		42.7		40.0
Total Noncurrent Regulatory Assets		583.8		548.7		531.9
Total Regulatory Assets	$	620.4	$	580.8	$	561.4
Regulatory Liabilities:
Current:
Pension and postretirement benefit costs	$	3.6	$	3.6	$	3.6
Unamortized purchased gas adjustments		9.0		72.3		20.0
Other		14.5		27.3		27.2
Total Current Regulatory Liabilities		27.1		103.2		50.8
Noncurrent:
Deferred taxes due to customers		113.0		121.4		139.0
Pension and postretirement benefit costs		157.0		140.4		136.4
Unamortized purchased gas adjustments		42.2		4.4		79.9
Other		30.6		8.6		23.6
Total Noncurrent Regulatory Liabilities		342.8		274.8		378.9
Total Regulatory Liabilities	$	369.9	$	378.0	$	429.7

	June 30,		September 30,		June 30,
Spire Alabama	2021		2020		2020
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	8.2	$	7.7	$	7.2
Unamortized purchased gas adjustments		—		5.5		9.5
Other		8.9		7.2		6.7
Total Current Regulatory Assets		17.1		20.4		23.4
Noncurrent:
Pension and postretirement benefit costs		85.1		98.2		69.9
Cost of removal		419.7		388.6		159.1
Future income taxes due from customers		2.2		2.2		2.2
Other		1.2		0.9		0.9
Total Noncurrent Regulatory Assets		508.2		489.9		232.1
Total Regulatory Assets	$	525.3	$	510.3	$	255.5
Regulatory Liabilities:
Current:
Pension and postretirement benefit costs	$	2.2	$	2.2	$	2.2
Unamortized purchased gas adjustments		13.1		—		—
Other		0.2		1.7		0.3
Total Current Regulatory Liabilities		15.5		3.9		2.5
Noncurrent:
Pension and postretirement benefit costs		13.9		14.8		17.2
Other		3.6		3.7		3.7
Total Noncurrent Regulatory Liabilities		17.5		18.5		20.9
Total Regulatory Liabilities	$	33.0	$	22.4	$	23.4

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,
	2021		2020		2020
Spire
Pension and postretirement benefit costs	$	194.4	$	232.3	$	234.7
Future income taxes due from customers		128.0		121.3		118.4
Other		130.5		12.9		13.2
Total Regulatory Assets Not Earning a Return	$	452.9	$	366.5	$	366.3

Spire Missouri
Pension and postretirement benefit costs	$	194.4	$	232.3	$	234.7
Future income taxes due from customers		121.5		114.6		111.8
Other		130.5		12.9		13.2
Total Regulatory Assets Not Earning a Return	$	446.4	$	359.8	$	359.7

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. Certain provisions of the order allowed less future recovery of certain deferred or capitalized costs than estimated based upon previous rate proceedings, and management determined that the related regulatory assets should be written down or off in connection with the preparation of the financial statements for the second quarter of 2018. Spire Missouri filed an appeal of portions of the MoPSC’s order, including the disallowance of certain pension costs. On February 9, 2021, the Missouri Supreme Court issued its decision, reversing the MoPSC’s order with respect to certain pension costs and affirming the MoPSC’s order in all other respects. The case was remanded back to the MoPSC with directions that $9.0 in pension assets that accrued between 1994 and 1996 be added to the Company’s prepaid pension asset. Based on the court’s decision, the Company increased its noncurrent regulatory asset for “Pension and postretirement benefit costs” and reduced operation and maintenance expense for the three months ended March 31, 2021. Like the original write-down in 2018, this adjustment is excluded for the net economic earnings financial measure. Spire Missouri and MoPSC Staff agreed that the remand issue should be considered as part of Spire Missouri’s ongoing general rate case, and on July 14, 2021, the MoPSC entered an order approving that procedural treatment.

In the first half of fiscal 2020, provisions totaling $4.8 were recorded to Spire Missouri’s regulatory liability for Infrastructure System Replacement Surcharge (ISRS) revenues related to disputed ISRS filings. The after-tax impact of these provisions reduced net income for the nine months ended June 30, 2020, by $3.7, which was excluded for the net economic earnings financial measure. As previously disclosed, these matters were settled by the end of fiscal 2020, and these provisions were adjusted during the third quarter, resulting in no net economic earnings adjustment for the nine months ended June 30, 2020.

In September 2020, Spire Missouri, the MoPSC staff and the OPC reached a Unanimous Stipulation and Agreement regarding Spire Missouri’s request for an Accounting Authority Order (AAO) pertaining to certain costs and lost customer fee revenue related to the COVID-19 pandemic. In October 2020, the MoPSC issued an order approving that agreement and granting an AAO effective through March 31, 2021. Accordingly, Spire Missouri has recorded a net regulatory asset of $2.9 as of June 30, 2021, and $3.8 as of September 30, 2020, related to the deferral of applicable costs and has tracked lost customer fee revenue. All ratemaking treatment of the deferrals and any revenue recoveries is reserved for consideration in Spire Missouri’s ongoing general rate case.

On December 11, 2020, Spire Missouri filed a general rate case with the MoPSC that includes new proposed rates for its service areas. The case proposes an increase in base rates, reflecting recovery of system investments and operating costs necessary to maintain the safety and reliability of its natural gas distribution systems as well as to support enhancements to customer service. The request, if approved, represents a net base rate increase of $64.2. Spire Missouri is already recovering $47.3 from customers through the ISRS, resulting in a total base rate increase request of $111.5. The ISRS cap would then be reset in order to continue the timely recovery of the investment in pipeline upgrades. The proposed rates are calculated on a filed rate base of $2,780 based on the end of fiscal year 2020, reflecting the significant investment made in infrastructure upgrades and other systems. The filing assumes a common equity ratio of 54.25% and a 9.95% return on equity. Direct, rebuttal, and sur-rebuttal testimony of all parties has been filed, and local public hearings have concluded. On July 30, Spire Missouri, the Staff of the MoPSC and the other parties to the case filed a unanimous Stipulation and Agreement settling nearly 40 issues. Among the key items addressed in the settlement are recovery of deferred COVID-19 costs and the combining of the ISRS revenue caps for Spire Missouri’s east and west service areas into one. Evidentiary hearings began on August 2, with a post-hearing briefing to be conducted in September 2021. True-up direct testimony is due August 6, 2021, and management anticipates that certain measures, such as rate base, capital structure and operating costs will be updated with data through May 31, 2021. In accordance with Missouri law, the MoPSC has up to 11 months from our filing date to consider this filing.

In mid-February 2021, the central U.S. experienced a period of unusually severe cold weather, and Spire Missouri implemented an Operational Flow Order (OFO) to preserve the integrity of its distribution system. During this time, Spire Missouri was required to purchase additional natural gas supply, both to ensure adequate supply for its firm utility customers, and to cover the shortfall created when third-party marketers failed to deliver natural gas supply to its city gates on behalf of their customers. In accordance with its tariffs, Spire Missouri invoiced the cost of gas and associated penalties totaling $195.8 to non-compliant marketers pursuant to the MoPSC-approved OFO tariff. Recoveries collected, including $3.2 collected to date, will be an offset to cost of natural gas for firm utility customers through the Purchased Gas Adjustment (PGA) and Actual Cost Adjustment. The three largest counterparties did not remit payment when due, so Spire Missouri filed suit against them in federal court to recover the invoiced amounts. Those suits remain pending. Some marketers have filed complaints with the MoPSC requesting review of the transactions between them and Spire; at this time, the Company has no reason to believe the MoPSC will not follow the tariff and has determined collection is probable. Evidentiary hearings of those complaints are scheduled for January through March 2022. The MoPSC has also opened a working case to investigate the effects of the February cold weather event on all Missouri utilities. Spire Missouri is not subject to any upstream OFO penalties on any interstate pipelines.

Spire Missouri is able to sell excess natural gas supply and capacity to third parties off system, resulting in significant savings to its firm utility customers through the gas incentive mechanisms of its PGA. Spire Missouri normally retains 25% and passes 75% through to its customers. During the February cold weather event, Spire Missouri had an unusually large off-system sale resulting in $100.0 of incremental gross revenue. Due to the nature and magnitude of this particular transaction, Spire Missouri anticipates distributing all or a portion of its usual 25% share to customers and plans to work with the MoPSC and community partners over the rest of the fiscal year to determine the method and timing. Accordingly, a $25.0 regulatory liability has been recorded, with a corresponding reduction in revenue.

Spire Missouri’s net deferred gas costs and average inventory cost in the second quarter of fiscal 2021 increased by approximately $110 primarily due to the February weather event, including projected offsets of off-system sales and tariff-based OFO penalties.

In August 2018, the Federal Energy Regulatory Commission (FERC) approved an order issuing a Certificate of Public Convenience and Necessity for the Spire STL Pipeline (“August 2018 Order”), and in November 2018, the FERC issued a Notice to Proceed, allowing construction to begin. In November 2019, Spire STL Pipeline received FERC authorization to place the pipeline into service. Also, in November 2019, the FERC issued an Order on Rehearing of the August 2018 Order dismissing or denying the outstanding requests for rehearing filed by several parties, dismissing the request for stay filed by one party, and noting the withdrawal of the request for rehearing by another party. On January 21, 2020, two of the rehearing parties filed petitions for review of the FERC’s orders with the U.S. Court of Appeals for the District of Columbia Circuit. On June 22, 2021, that court issued an order vacating the Certificate of Public Convenience and Necessity and remanding the matter back to the FERC for further action. The vacatur mandate, however, does not take effect until after the expiration (or denial) of the court’s opportunity to reconsider its decision. Spire STL Pipeline and Spire Missouri, as the foundation shipper, will each continue to pursue all legal and regulatory avenues to ensure access to reliable, affordable and safe delivery of energy for eastern Missouri. Spire STL Pipeline filed on July 26 with the FERC for a Temporary Emergency Certificate and expects to file on August 5 a request for rehearing with the DC Circuit panel and a concurrent en banc request asking for the vacatur to be lifted while the FERC addresses the certificate on remand. While there is no impairment at this time, if Spire STL Pipeline is taken out of service, the Company’s financial condition and results of operations may be adversely impacted by impairment of Spire STL Pipeline’s assets, currently carried at over $270, and other effects. If Spire Missouri is unable to obtain sufficient pipeline capacity to meet its customers’ annual and seasonal natural gas demands, Spire Missouri’s financial condition and results of operations may be adversely impacted.

On October 9, 2020, Spire Storage West LLC (“Spire Storage”) filed with the FERC an Abbreviated Application for an Amendment of Certificate of Public Convenience and Necessity, Reaffirmation of Market-Based Rate Authority, and Related Authorizations pursuant to Section 7(c) of the Natural Gas Act. The application, which requests authorization to expand capacity and increase pipeline connectivity at certain of Spire Storage’s natural gas storage facilities in Wyoming, remains pending.