DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Open NYMEX natural gas futures positions at March 31, 2013 were as follows:

	MMBtu (millions)	Avg. Price Per MMBtu
Open long futures positions
Fiscal 2013	7.58	$	3.40
Fiscal 2014	4.87	3.97

The Effect of Derivative Instruments on the Statements of Income and Statements of Comprehensive Income

The Effect of Derivative Instruments on the Statements of Income and Statements of Comprehensive Income
		Three Months Ended						Six Months Ended
	Location of Gain (Loss)	March 31,						March 31,
(Thousands)	Recorded in Income	2013			2012			2013			2012
Derivatives in Cash Flow Hedging Relationships
NYMEX gasoline and heating oil contracts:
Effective portion of gain recognized in         OCI on derivatives		$	147		$	83		$	203		$	133
Effective portion of gain (loss) reclassified         from AOCI to income	Utility – Other Operation Expenses	38			(11		)	85			3
Ineffective portion of (loss) gain on         derivatives recognized in income	Utility – Other Operation Expenses	(31		)	28			(132		)	34
Derivatives Not Designated as Hedging Instruments *
NYMEX gasoline and heating oil contracts:
Gain recognized in income on          derivative	Other Income and (Income Deductions) – Net	$	13		$	12		$	46		$	13

* Gains and losses on Laclede Gas’ natural gas derivative instruments, which are not designated as hedging instruments for financial reporting purposes, are deferred pursuant to the Utility’s PGA Clause 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 Utility Natural and Propane Gas operating expenses when they are recovered through the PGA Clause and reflected in customer billings.

Fair Value of Derivative Instruments in the Balance Sheet

Fair Value of Derivative Instruments in the Balance Sheet at March 31, 2013
	Asset Derivatives				Liability Derivatives
(Thousands)	Balance Sheet Location	Fair Value		*	Balance Sheet Location	Fair Value		*
Derivatives designated as hedging instruments
NYMEX gasoline and heating oil contracts	Derivative Instrument Assets	$	312		Derivative Instrument Assets	$	—
Derivatives not designated as hedging instruments
NYMEX natural gas contracts	Derivative Instrument Assets	10,862			Derivative Instrument Assets	339
NYMEX gasoline and heating oil contracts	Derivative Instrument Assets	10			Derivative Instrument Assets	—
Sub-total		10,872				339
Total derivatives		$	11,184			$	339
Fair Value of Derivative Instruments in the Balance Sheet at September 30, 2012
	Asset Derivatives				Liability Derivatives
(Thousands)	Balance Sheet Location	Fair Value		*	Balance Sheet Location	Fair Value		*
Derivatives designated as hedging instruments
NYMEX gasoline and heating oil contracts	Accounts Receivable - Other	$	334		Accounts Receivable - Other	$	—
Derivatives not designated as hedging instruments
NYMEX natural gas contracts	Accounts Receivable - Other	7,338			Accounts Receivable - Other	9,563
NYMEX gasoline and heating oil contracts	Accounts Receivable - Other	10			Accounts Receivable - Other	—
Sub-total		7,348				9,563
Total derivatives		$	7,682			$	9,563
Fair Value of Derivative Instruments in the Balance Sheet at March 31, 2012
	Asset Derivatives				Liability Derivatives
(Thousands)	Balance Sheet Location	Fair Value		*	Balance Sheet Location	Fair Value		*
Derivatives designated as hedging instruments
NYMEX gasoline and heating oil contracts	Accounts Receivable - Other	$	72		Accounts Receivable - Other	$	—
Derivatives not designated as hedging instruments
NYMEX natural gas contracts	Accounts Receivable - Other	709			Accounts Receivable - Other	36,437
NYMEX gasoline and heating oil contracts	Accounts Receivable - Other	9			Accounts Receivable - Other	—
Sub-total		718				36,437
Total derivatives		$	790			$	36,437

* The fair values of Asset Derivatives and Liability Derivatives 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 Utility’s net economic exposure. Refer to Note 4, Fair Value Measurements, for information on the valuation of derivative instruments.

Derivative Instrument Reconciliation

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

(Thousands)	Mar. 31, 2013			Sept. 30, 2012			Mar. 31, 2012
Fair value of asset derivatives presented above	$	11,184		$	7,682		$	790
Fair value of cash margin receivables offset with derivatives	—			1,964			35,647
Netting of assets and liabilities with the same counterparty	(7,879		)	(9,646		)	(36,437		)
Derivative instrument assets, per Balance Sheets	$	3,305		$	—		$	—
Fair value of liability derivatives presented above	$	339		$	9,563		$	36,437
Fair value of cash margin payables offset with derivatives	7,540			83			—
Netting of assets and liabilities with the same counterparty	(7,879		)	(9,646		)	(36,437		)
Derivative instrument liabilities, per Balance Sheets	$	—		$	—		$	—