FAIR VALUE MEASUREMENTS

9 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

4.	FAIR VALUE MEASUREMENTS

The following table categorizes the assets and liabilities in the Balance Sheets that are accounted for at fair value on a recurring basis in periods subsequent to initial recognition.

(Thousands)		Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Effects of Netting and Cash Margin Receivables /Payables			Total
As of June 30, 2011
Assets
U. S. Stock/Bond Mutual Funds	$	16,096	$	—	$	—	$	—		$	16,096
NYMEX natural gas contracts		1,925		—		—		4,681			6,606
NYMEX gasoline and heating
oil contracts		143		—		—		164			307
Total	$	18,164	$	—	$	—	$	4,845		$	23,009

Liabilities
NYMEX natural gas contracts	$	12,379	$	—	$	—	$	(12,379	)	$	—
NYMEX gasoline and heating
oil contracts		4		—		—		(4	)		—
Total	$	12,383	$	—	$	—	$	(12,383	)	$	—

As of September 30, 2010
Assets
U. S. Stock/Bond Mutual Funds	$	12,856	$	—	$	—	$	—		$	12,856
NYMEX natural gas contracts		1,909		—		—		8,786			10,695
NYMEX gasoline and heating
oil contracts		59		—		—		220			279
Total	$	14,824	$	—	$	—	$	9,006		$	23,830

Liabilities
NYMEX natural gas contracts	$	40,537	$	—	$	—	$	(40,537	)	$	—
NYMEX gasoline and heating
oil contracts		37		—		—		(37	)		—
Total	$	40,574	$	—	$	—	$	(40,574	)	$	—

As of June 30, 2010
Assets
U. S. Stock/Bond Mutual Funds	$	11,533	$	—	$	—	$	—		$	11,533
NYMEX natural gas contracts		3,905		—		—		6,619			10,524
NYMEX gasoline and heating
oil contracts		96		—		—		91			187
Total	$	15,534	$	—	$	—	$	6,710		$	22,244

Liabilities
NYMEX natural gas contracts	$	44,174	$	—	$	—	$	(44,174	)	$	—
NYMEX gasoline and heating
oil contracts		88		—		—		(88	)		—
Total		44,262		—		—		(44,262	)		—

The mutual funds included in Level 1 are valued based on quoted market prices of identical securities that are provided by the trustees of these securities. Derivative instruments included in Level 1 are valued using quoted market prices on the New York Mercantile Exchange (NYMEX). During the nine months ended June 30, 2011 and June 30, 2010, there were no transfers between the levels of the fair value hierarchy. The Utility’s policy is to recognize such transfers, if any, as for the beginning of the interim reporting period in which circumstances change or events occur to cause the transfer. The mutual funds are included in the Other investments line of the Balance Sheets. Derivative assets and liabilities, including receivables and payables associated with cash margin requirements, are presented net in the Balance Sheets when a legally enforceable netting agreement exists between Laclede Gas and the counterparty to a derivative contract. For additional information on derivative instruments, see Note 5, Derivative Instruments and Hedging Activities.

- Definition

This element represents the disclosure related to the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods.

+ References+ Details