Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Sep. 30, 2021

Derivative [Line Items]

Derivative Instruments and Hedging Activities

Open NYMEX and ICE natural gas futures and swap positions at September 30, 2021 and 2020 were as follows:

	September 30, 2021				September 30, 2020
Gas Marketing	Notional (MMBtu millions)		Maximum Term (Months)		Notional (MMBtu millions)		Maximum Term (Months)
Natural gas futures purchased		103.3		51		22.9		41
Natural gas options purchased, net		7.1		15		4.8		6
Natural gas basis swaps purchased		101.7		27		6.2		24
Gas Utility
Natural gas futures purchased		52.8		12		25.9		12

Effect of Derivative Instruments on Statements of Consolidated Income and Statements of Consolidated Comprehensive Income

Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income
	Location of Gain (Loss)
	Recorded in Income	2021			2020			2019
Derivatives in Cash Flow Hedging Relationships
Effective portion of gain (loss) recognized in OCI on derivatives:
Interest rate swaps		$	61.2		$	(8.9	)	$	(46.4	)
Total		$	61.2		$	(8.9	)	$	(46.4	)
Effective portion of (loss) gain reclassified from AOCI to income:
Interest rate swaps	Interest Expense	$	(1.3	)	$	(3.2	)	$	1.3
Total		$	(1.3	)	$	(3.2	)	$	1.3
Derivatives Not Designated as Hedging Instruments*
Gain (loss) recognized in income on derivatives:
Natural gas commodity contracts	Gas Marketing Operating Revenues	$	54.1		$	9.2		$	2.5
	Gas Marketing Operating Expenses		—			—			(8.4	)
NYMEX / ICE natural gas contracts	Gas Marketing Operating Revenues		(77.5	)		(11.8	)		—
Total		$	(23.4	)	$	(2.6	)	$	(5.9	)

* Gains and losses on Spire Missouri’s natural gas derivative instruments, which are not designated as hedging instruments for financial reporting purposes, are deferred pursuant to the Missouri Utilities’ PGA clauses and initially recorded as regulatory assets or regulatory liabilities. These gains and losses are excluded from the table above because they have no direct impact on the statements of income. Such amounts are recognized in the statements of income as a component of natural gas operating expenses when they are recovered through the PGA clause and reflected in customer billings.

Fair Value of Derivative Instruments in the Consolidated Balance Sheet

Fair Value of Derivative Instruments in the Consolidated Balance Sheets
	Derivative Assets*			Derivative Liabilities*
September 30, 2021	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Other: Interest rate swaps	Derivative Instrument Asset	$	12.6	Derivative Instrument Liability	$	5.7
Subtotal			12.6			5.7
Derivatives not designated as hedging instruments
Gas Utility:
Natural gas contracts	Accounts Receivable – Other		104.0	Accounts Receivable – Other		0.3
Gas Marketing:
NYMEX / ICE natural gas contracts	Derivative Instrument Assets		93.9	Derivative Instrument Liability		50.1
	Deferred Charges – Other		20.8	Deferred Charges – Other		11.9
Natural gas commodity	Derivative Instrument Assets		34.1	Current Liabilities – Other		82.5
	Deferred Charges – Other		1.1	Deferred Credits – Other		14.2
Subtotal			253.9			159.0
Total derivatives		$	266.5		$	164.7
September 30, 2020
Derivatives designated as hedging instruments
Other: Interest rate swaps	Derivative Instrument Liability	$	—	Derivative Instrument Liability	$	54.2
Subtotal			—			54.2
Derivatives not designated as hedging instruments
Gas Utility:
Natural gas contracts	Accounts Receivable – Other		6.3	Accounts Receivable – Other		0.9
Gasoline and heating oil contracts	Derivative Instrument Assets		0.3
Gas Marketing:
NYMEX / ICE natural gas contracts	Derivative Instrument Assets		20.5	Derivative Instrument Assets		21.3
	Deferred Charges – Other		7.2	Deferred Charges – Other		0.8
Natural gas commodity	Derivative Instrument Assets		13.5	Derivative Instrument Assets		—
	Deferred Charges – Other		1.4	Deferred Charges – Other		—
	Current Liabilities – Other		—	Current Liabilities – Other		16.8
	Deferred Credits – Other		—	Deferred Credits – Other		5.5
Subtotal			49.2			45.3
Total derivatives		$	49.2		$	99.5

* The fair values of Derivative Assets and Derivative Liabilities exclude the fair value of cash margin receivables or payables with counterparties subject to netting arrangements. Fair value amounts of derivative contracts (including the fair value amounts of cash margin receivables and payables) for which there is a legal right to set off are presented net on the balance sheets. As such, the gross balances presented in the table above are not indicative of the Company’s net economic exposure. Refer to Note 9, Fair Value Measurements, for information on the valuation of derivative instruments.

Derivative Instruments Reconciliation

Following is a reconciliation of the amounts in the tables above to the amounts presented in the Consolidated Balance Sheets:

	2021			2020
Fair value of derivative assets presented above	$	266.5		$	49.2
Fair value of cash margin receivable offset with derivatives		(135.4	)		(9.0	)
Netting of assets and liabilities with the same counterparty		(73.0	)		(23.0	)
Total	$	58.1		$	17.2
Derivative Instrument Assets, per Consolidated Balance Sheets:
Current Assets – Other	$	57.0		$	15.8
Deferred Charges and Other Assets – Other		1.1			1.4
Total	$	58.1		$	17.2
Fair value of derivative liabilities presented above	$	164.7		$	99.5
Netting of assets and liabilities with the same counterparty		(73.0	)		(23.0	)
Total	$	91.7		$	76.5
Derivative Instrument Liabilities, per Consolidated Balance Sheets:
Current Liabilities – Other	$	77.5		$	71.0
Deferred Credits and Other Liabilities – Other		14.2			5.5
Total	$	91.7		$	76.5

Spire Missouri

Derivative [Line Items]

Derivative Instruments and Hedging Activities

Spire Missouri’s derivative instruments consist primarily of NYMEX positions. The NYMEX is the primary national commodities exchange on which natural gas derivatives are traded. Open NYMEX natural gas futures positions at September 30, 2021 and 2020 were as follows:

	September 30, 2021				September 30, 2020
	Notional (MMBtu millions)		Maximum Term (Months)		Notional (MMBtu millions)		Maximum Term (Months)
Natural gas futures purchased		52.8		12		25.9		12

Fair Value of Derivative Instruments in the Consolidated Balance Sheet

Fair Value of Derivative Instruments in the Balance Sheets
	Derivative Assets*			Derivative Liabilities*
September 30, 2021	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives not designated as hedging instruments
Natural gas contracts	Accounts Receivable – Other	$	104.0	Accounts Receivable – Other	$	0.3
Total derivatives		$	104.0		$	0.3
September 30, 2020
Derivatives not designated as hedging instruments
Natural gas contracts	Accounts Receivable – Other	$	6.3	Accounts Receivable – Other	$	0.9
Gasoline and heating oil contracts	Derivative Instrument Assets		0.3
Total derivatives		$	6.6		$	0.9

* The fair values of Derivative Assets and Derivative Liabilities exclude the fair value of cash margin receivables or payables with counterparties subject to netting arrangements. Fair value amounts of derivative contracts (including the fair value amounts of cash margin receivables and payables) for which there is a legal right to set off are presented net on the Balance Sheets. As such, the gross balances presented in the table above are not indicative of Spire Missouri’s net economic exposure. Refer to Note 9, Fair Value Measurements, for information on the valuation of derivative instruments.

Derivative Instruments Reconciliation

Following is a reconciliation of the amounts in the tables above to the amounts presented in Spire Missouri’s Balance Sheets:

	2021			2020
Fair value of derivative assets presented above	$	104.0		$	6.6
Fair value of cash margin (payable) receivable offset with derivatives		(103.7	)		(5.7	)
Netting of assets and liabilities with the same counterparty		(0.3	)		(0.9	)
Total	$	—		$	—
Fair value of derivative liabilities presented above	$	0.3		$	0.9
Netting of assets and liabilities with the same counterparty		(0.3	)		(0.9	)
Total	$	—		$	—