[ X ]
|
ANNUAL REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended September 30, 2012
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from __________ to __________
|
Missouri
(State of Incorporation)
|
43-0368139
(I.R.S. Employer Identification number)
|
720 Olive Street
St. Louis, MO 63101
(Address and zip code of principal executive offices)
314-342-0500
(Registrant’s telephone number, including area code)
|
Large accelerated filer
|
[ ]
|
Accelerated filer
|
[ ]
|
||
Non-accelerated filer
|
[ X ]
|
Smaller reporting company
|
[ ]
|
Page No.
|
||
|
||
|
||
|
||
Item 10
|
Directors, Executive Officers and Corporate Governance
|
*
|
Item 11
|
Executive Compensation
|
*
|
Item 12
|
Security Ownership of Certain Beneficial Owners and Management
|
|
and Related Stockholder Matters
|
*
|
|
Item 13
|
Certain Relationships and Related Transactions, and Director Independence
|
*
|
•
|
weather conditions and catastrophic events, particularly severe weather in the natural gas producing areas of the country;
|
|
•
|
volatility in gas prices, particularly sudden and sustained changes in natural gas prices, including the related impact on margin deposits associated with the use of natural gas derivative instruments;
|
|
•
|
the impact of changes and volatility in natural gas prices on our competitive position in relation to suppliers of alternative heating sources, such as electricity;
|
|
•
|
changes in gas supply and pipeline availability, including decisions by natural gas producers to reduce production or shut in producing natural gas wells as well as other changes that impact supply for and access to our service area;
|
|
•
|
legislative, regulatory and judicial mandates and decisions, some of which may be retroactive, including those affecting
|
|
•
|
allowed rates of return
|
|
•
|
incentive regulation
|
|
•
|
industry structure
|
|
•
|
purchased gas adjustment provisions
|
|
•
|
rate design structure and implementation
|
|
•
|
regulatory assets
|
|
•
|
non-regulated and affiliate transactions
|
|
•
|
franchise renewals
|
|
•
|
environmental or safety matters, including the potential impact of legislative and regulatory actions related to climate change and pipeline safety
|
|
•
|
taxes
|
|
•
|
pension and other postretirement benefit liabilities and funding obligations
|
|
•
|
accounting standards, including the effect of potential changes relative to adoption of or convergence with international accounting standards;
|
|
•
|
the results of litigation;
|
|
•
|
retention of, ability to attract, ability to collect from, and conservation efforts of, customers;
|
|
•
|
capital and energy commodity market conditions, including the ability to obtain funds with reasonable terms for necessary capital expenditures and general operations and the terms and conditions imposed for obtaining sufficient gas supply;
|
|
•
|
discovery of material weakness in internal controls; and
|
|
•
|
employee workforce issues.
|
(Thousands)
|
2012
|
2011
|
2010
|
|||||||
Utility
|
$
|
764,651
|
$
|
913,190
|
$
|
864,297
|
||||
Other
|
2,976
|
19,138
|
10,327
|
|||||||
Total Operating Revenues
|
$
|
767,627
|
$
|
932,328
|
$
|
874,624
|
Utility Operating Revenues
|
||||||||||
(Thousands)
|
2012
|
2011
|
2010
|
|||||||
Residential
|
$
|
487,529
|
$
|
584,788
|
$
|
589,350
|
||||
Commercial & Industrial
|
161,866
|
202,017
|
208,953
|
|||||||
Interruptible
|
2,105
|
3,659
|
4,246
|
|||||||
Transportation
|
14,094
|
14,426
|
13,378
|
|||||||
Off-System and Capacity Release
|
92,477
|
100,225
|
38,988
|
|||||||
Other
|
6,580
|
8,075
|
9,382
|
|||||||
Total
|
$
|
764,651
|
$
|
913,190
|
$
|
864,297
|
||||
Utility Therms Sold and Transported
|
||||||||||
(Thousands)
|
2012
|
2011
|
2010
|
|||||||
Residential
|
385,317
|
497,171
|
506,576
|
|||||||
Commercial & Industrial
|
183,536
|
228,080
|
231,292
|
|||||||
Interruptible
|
3,013
|
5,098
|
6,267
|
|||||||
Transportation
|
146,117
|
155,067
|
150,386
|
|||||||
System Therms Sold and Transported
|
717,983
|
885,416
|
894,521
|
|||||||
Off-System
|
314,473
|
223,000
|
70,966
|
|||||||
Total Therms Sold and Transported
|
1,032,456
|
1,108,416
|
965,487
|
|||||||
Utility Customers (End of Period)
|
||||||||||
2012
|
2011
|
2010
|
||||||||
Residential
|
588,061
|
584,926
|
586,974
|
|||||||
Commercial & Industrial
|
39,741
|
39,995
|
40,264
|
|||||||
Interruptible
|
15
|
15
|
18
|
|||||||
Transportation
|
140
|
141
|
137
|
|||||||
Total Customers
|
627,957
|
625,077
|
627,393
|
Name, Age, and Position with the Utility
|
Appointed (1)
|
||
S. Sitherwood, Age 52
|
|||
Chairman of the Board, President and Chief Executive Officer (2)
|
February 2012
|
||
M. D. Waltermire, Age 54
|
|||
Executive Vice President
|
May 2012
|
||
Senior Vice President and Chief Financial Officer
|
October 2007
|
||
S. P. Rasche, Age 52
|
|||
Chief Financial Officer
|
May 2012
|
||
Vice President – Finance (3)
|
November 2009
|
||
M. C. Kullman, Age 52
|
|||
Corporate Secretary
|
May 2012
|
||
Chief Governance Officer and Corporate Secretary
|
February 2004
|
||
(1)
|
Officers of Laclede are normally reappointed at the Annual Meeting of the Board of Directors in January of each year.
|
(2)
|
Ms. Sitherwood served as President of Atlanta Gas Light Company, Chattanooga Gas Company, and Florida City Gas, all of which are subsidiaries of AGL Resources, Inc., from November 2004 to September 2011. During that time, she also served as Senior Vice President of Southern Operations for AGL Resources, Inc. From September 2011 to February 2012, Ms. Sitherwood served as President of The Laclede Group, Inc. and became its President and Chief Executive Officer effective February 1, 2012.
|
(3)
|
Mr. Rasche served as the Chief Financial Officer for TLCVision Corporation from 2004 to May 2009.
|
Fiscal 2012
|
Fiscal 2011
|
|||
1st Quarter
|
$
|
795.11
|
$
|
775.60
|
2nd Quarter
|
794.13
|
775.74
|
||
3rd Quarter
|
793.56
|
775.77
|
||
4th Quarter
|
793.62
|
775.32
|
Aggregate
|
||||||||
Purchase Price
|
Number
|
|||||||
Date of Sale
|
(millions)
|
of Shares
|
||||||
FY 2010
|
||||||||
December 15, 2009
|
$
|
0.3
|
10
|
|||||
February 8, 2010
|
0.4
|
10
|
||||||
May 7, 2010
|
0.4
|
10
|
||||||
August 11, 2010
|
0.4
|
10
|
||||||
FY 2011
|
||||||||
December 13, 2010
|
0.4
|
10
|
||||||
February 8, 2011
|
0.4
|
10
|
||||||
May 12, 2011
|
0.3
|
9
|
||||||
August 9, 2011
|
0.5
|
14
|
||||||
FY 2012
|
||||||||
December 13, 2011
|
0.4
|
11
|
||||||
February 8, 2012
|
0.7
|
18
|
||||||
May 14, 2012
|
0.9
|
22
|
||||||
August 14, 2012
|
0.7
|
18
|
||||||
September 12, 2012
|
40.0
|
1,018
|
Fiscal Years Ended September 30
|
||||||||||||||||
(Thousands)
|
2012
|
2011
|
2010
|
2009
|
2008
|
|||||||||||
Summary of Operations
|
||||||||||||||||
Operating Revenues:
|
||||||||||||||||
Utility
|
$
|
764,651
|
$
|
913,190
|
$
|
864,297
|
$
|
1,053,993
|
$
|
1,128,287
|
||||||
Other
|
2,976
|
19,138
|
10,327
|
2,246
|
2,693
|
|||||||||||
Total Operating Revenues
|
767,627
|
932,328
|
874,624
|
1,056,239
|
1,130,980
|
|||||||||||
Operating Expenses:
|
||||||||||||||||
Utility
|
||||||||||||||||
Natural and propane gas
|
414,846
|
549,947
|
519,905
|
699,984
|
770,097
|
|||||||||||
Other operation expenses
|
144,440
|
147,889
|
141,995
|
146,542
|
144,611
|
|||||||||||
Maintenance
|
22,911
|
25,049
|
27,244
|
27,818
|
25,827
|
|||||||||||
Depreciation and amortization
|
40,739
|
39,214
|
37,572
|
36,751
|
35,303
|
|||||||||||
Taxes, other than income taxes
|
53,672
|
60,752
|
61,407
|
68,639
|
69,023
|
|||||||||||
Total Utility Operating Expenses
|
676,608
|
822,851
|
788,123
|
979,734
|
1,044,861
|
|||||||||||
Other
|
209
|
7,985
|
4,343
|
2,238
|
2,641
|
|||||||||||
Total Operating Expenses
|
676,817
|
830,836
|
792,466
|
981,972
|
1,047,502
|
|||||||||||
Operating Income
|
90,810
|
101,492
|
82,158
|
74,267
|
83,478
|
|||||||||||
Allowance for Funds Used During Construction
|
6
|
(98
|
)
|
(112
|
)
|
(152
|
)
|
(72
|
)
|
|||||||
Other Income and (Income Deductions) – Net
|
2,699
|
923
|
2,681
|
3,280
|
1,278
|
|||||||||||
Interest Charges:
|
||||||||||||||||
Interest on long-term debt
|
22,958
|
23,161
|
24,583
|
24,583
|
19,851
|
|||||||||||
Other interest charges
|
2,198
|
2,383
|
2,269
|
5,770
|
10,363
|
|||||||||||
Total Interest Charges
|
25,156
|
25,544
|
26,852
|
30,353
|
30,214
|
|||||||||||
Income Before Income Taxes
|
68,359
|
76,773
|
57,875
|
47,042
|
54,470
|
|||||||||||
Income Tax Expense
|
18,460
|
22,996
|
18,150
|
13,859
|
15,264
|
|||||||||||
Net Income
|
49,899
|
53,777
|
39,725
|
33,183
|
39,206
|
|||||||||||
Dividends on Redeemable Preferred Stock
|
—
|
—
|
—
|
15
|
35
|
|||||||||||
Earnings Applicable to Common Stock
|
$
|
49,899
|
$
|
53,777
|
$
|
39,725
|
$
|
33,168
|
$
|
39,171
|
Fiscal Years Ended September 30
|
||||||||||||||||
(Thousands)
|
2012
|
2011
|
2010
|
2009
|
2008
|
|||||||||||
Dividends Declared –
|
||||||||||||||||
Common Stock
|
$
|
37,345
|
$
|
36,297
|
$
|
35,195
|
$
|
34,108
|
$
|
32,811
|
||||||
Utility Plant
|
||||||||||||||||
Gross Plant – End of Period
|
$
|
1,497,419
|
$
|
1,386,590
|
$
|
1,326,284
|
$
|
1,280,238
|
$
|
1,229,174
|
||||||
Net Plant – End of Period
|
1,019,299
|
928,683
|
884,084
|
855,929
|
823,197
|
|||||||||||
Capital Expenditures
|
106,734
|
67,304
|
56,234
|
51,384
|
55,304
|
|||||||||||
Property Retirements
|
10,055
|
14,800
|
10,946
|
9,732
|
15,629
|
|||||||||||
Total Assets – End of Period
|
$
|
1,760,152
|
$
|
1,643,046
|
$
|
1,658,452
|
$
|
1,600,287
|
$
|
1,625,815
|
||||||
Capitalization – End of Period
|
||||||||||||||||
Common Stock and Paid-In Capital
|
$
|
257,415
|
$
|
212,970
|
$
|
208,154
|
$
|
203,754
|
$
|
157,883
|
||||||
Retained Earnings
|
236,014
|
223,460
|
205,980
|
201,450
|
202,535
|
|||||||||||
Accumulated Other Comprehensive Loss
|
(2,101
|
)
|
(2,473
|
)
|
(2,875
|
)
|
(2,619
|
)
|
(1,790
|
)
|
||||||
Common Stock Equity
|
491,328
|
433,957
|
411,259
|
402,585
|
358,628
|
|||||||||||
Redeemable Preferred Stock
|
—
|
—
|
—
|
—
|
467
|
|||||||||||
Long-Term Debt
|
339,416
|
364,357
|
364,298
|
389,240
|
389,181
|
|||||||||||
Total Capitalization
|
$
|
830,744
|
$
|
798,314
|
$
|
775,557
|
$
|
791,825
|
$
|
748,276
|
||||||
•
|
Mark D. Waltermire was promoted to Executive Vice President, Chief Financial Officer. In this role, Mr. Waltermire oversees strategic planning and corporate development, information technology services, finance and accounting, supply chain functions and Laclede Energy Resources, Inc. (LER), an affiliate of Laclede Gas.
|
•
|
Michael R. Spotanski was appointed to the newly created position of Senior Vice President, Chief Integration and Innovation Officer. In his new role, Mr. Spotanski will lead Laclede Group’s efforts to integrate regulated natural gas distribution utilities and other businesses that it acquires as part of its growth strategy, as well as its efforts to develop and invest in emerging technologies. Previously, Mr. Spotanski was Senior Vice President, Operations and Marketing of Laclede Gas.
|
•
|
Mark C. Darrell was appointed to the position of Senior Vice President, General Counsel and Chief Compliance Officer. In this role, Mr. Darrell supervises Laclede Group’s corporate legal functions, including mergers and acquisition support, litigation, regulatory affairs, contracts and environmental matters. He is also responsible for the Laclede Group’s corporate compliance.
|
•
|
Mary C. Kullman was promoted to Senior Vice President, Chief Administrative Officer and Corporate Secretary. In her new role, Ms. Kullman’s responsibilities include overseeing corporate communications, the development and implementation of standards for shared services, enterprise risk management and internal audit. She retains her previous role as corporate secretary and responsibility for corporate governance, securities and ethics.
|
•
|
Steven P. Rasche was promoted to Senior Vice President, Finance and Accounting and serves as principal accounting officer for Laclede Group. Mr. Rasche’s responsibilities include accounting, financial reporting and analysis, treasury, tax and investor relations. Mr. Rasche reports to Mr. Waltermire.
|
•
|
Richard A. Skau was appointed to Senior Vice President, Chief Human Resources Officer. In this role, Mr. Skau supervises Laclede Group’s efforts to attract, retain, develop and train employees to prepare them to execute on corporate strategy. His responsibilities also include employee relations, payroll, benefits, and diversity and inclusion.
|
•
|
the Utility’s ability to recover the costs of purchasing and distributing natural gas from its customers;
|
•
|
the impact of weather and other factors, such as customer conservation, on revenues and expenses;
|
•
|
changes in the regulatory environment at the federal, state, and local levels, as well as decisions by regulators, that impact the Utility’s ability to earn its authorized rate of return;
|
•
|
the Utility’s ability to access credit markets and maintain working capital sufficient to meet operating requirements; and,
|
•
|
the effect of natural gas price volatility on the business.
|
Further information regarding how management seeks to manage these key variables is discussed below.
|
•
|
the effect of income from an April 2011 non-regulated sale of propane inventory no longer required to serve utility customers, totaling $10.0 million;
|
|
•
|
lower system gas sales margins and other variations, totaling $7.8 million, primarily due to the effect of weather in the Utility’s service area during the fiscal year ended September 30, 2012, which was the warmest based on records dating back more than 100 years;
|
|
•
|
increases in pension and group insurance expenses totaling $5.5 million; and
|
|
•
|
increases in charitable contributions totaling $1.9 million.
|
•
|
decreases in operation and maintenance expenses, excluding pension and group insurance expenses, totaling $11.1 million;
|
|
•
|
higher Infrastructure System Replacement Surcharge (ISRS) revenues totaling $4.6 million; and
|
|
•
|
higher net investment gains and other variations totaling $3.3 million.
|
•
|
the benefit of the general rate increase, effective September 1, 2010, totaling $28.0 million;
|
|
•
|
higher income from the non-regulated sale of propane inventory, totaling $4.0 million; and,
|
|
•
|
decreases in operation and maintenance expenses, excluding pension and group insurance expenses, totaling $3.8 million.
|
•
|
increases in pension and group insurance expenses, totaling $7.5 million;
|
|
•
|
lower ISRS revenues, totaling $6.2 million; and,
|
|
•
|
lower system gas sales volumes and other variations, totaling $1.4 million.
|
(Millions)
|
||||
Lower system sales volumes and other variations
|
$
|
(114.5
|
)
|
|
Lower prices charged for off-system sales
|
(44.6
|
)
|
||
Higher off-system sales volumes (reflecting more favorable market conditions as described in greater
detail in the Results of Operations - Overview)
|
38.8
|
|||
Lower wholesale gas costs passed on to Utility customers
|
(32.8
|
)
|
||
Higher ISRS revenues
|
4.6
|
|||
Total Variation
|
$
|
(148.5
|
)
|
(Millions)
|
||||
Higher off-system sales volumes (reflecting more favorable market conditions as described in greater
detail in the Results of Operations - Overview)
|
$
|
67.9
|
||
General rate increase, effective September 1, 2010
|
28.0
|
|||
Lower wholesale gas costs passed on to Utility customers
|
(20.5
|
)
|
||
Lower system sales volumes and other variations
|
(15.3
|
)
|
||
Lower ISRS revenues
|
(6.2
|
)
|
||
Lower prices charged for off-system sales
|
(5.0
|
)
|
||
Total Variation
|
$
|
48.9
|
Accounts Receivable and Allowance for Doubtful Accounts – Trade accounts receivable are recorded at the amounts due from customers, including unbilled amounts. Estimates of the collectibility of trade accounts receivable are based on historical trends, age of receivables, economic conditions, credit risk of specific customers, and other factors. Accounts receivable are written off against the allowance for doubtful accounts when they are deemed to be uncollectible. The Utility’s provision for uncollectible accounts includes the amortization of previously deferred uncollectible expenses, as approved by the MoPSC.
|
|
Employee Benefits and Postretirement Obligations – Pension and postretirement obligations are calculated by actuarial consultants that utilize several statistical factors and other assumptions provided by management related to future events, such as discount rates, returns on plan assets, compensation increases, and mortality rates. For the Utility, the amount of expense recognized and the amounts reflected in other comprehensive income are dependent upon the regulatory treatment provided for such costs, as discussed further below. Certain liabilities related to group medical benefits and workers’ compensation claims, portions of which are self-insured and/or contain “stop-loss” coverage with third-party insurers to limit exposure, are established based on historical trends.
|
The table below reflects the sensitivity of Laclede’s plans to potential changes in key assumptions:
|
Pension Plan Benefits:
|
|||||||||||||
Estimated
|
Estimated
|
||||||||||||
Increase/
|
Increase/
|
||||||||||||
(Decrease) to
|
(Decrease) to
|
||||||||||||
Projected
|
Annual
|
||||||||||||
Benefit
|
Net Pension
|
||||||||||||
Increase/
|
Obligation
|
Cost*
|
|||||||||||
Actuarial Assumptions
|
(Decrease)
|
(Thousands)
|
(Thousands)
|
||||||||||
Discount Rate
|
0.25
|
%
|
$
|
(10,610
|
)
|
$
|
260
|
||||||
(0.25
|
)
|
10,910
|
(280
|
)
|
|||||||||
Rate of Future Compensation Increase
|
0.25
|
%
|
6,000
|
300
|
|||||||||
(0.25
|
)
|
(5,900
|
)
|
(300
|
)
|
||||||||
Expected Return on Plan Assets
|
0.25
|
%
|
—
|
(640
|
)
|
||||||||
(0.25
|
)
|
—
|
640
|
||||||||||
Postretirement Benefits:
|
|||||||||||||
Estimated
|
Estimated
|
||||||||||||
Increase/
|
Increase/
|
||||||||||||
(Decrease) to
|
(Decrease) to
|
||||||||||||
Projected
|
Annual Net
|
||||||||||||
Postretirement
|
Postretirement
|
||||||||||||
Benefit
|
Benefit
|
||||||||||||
Increase/
|
Obligation
|
Cost*
|
|||||||||||
Actuarial Assumptions
|
(Decrease)
|
(Thousands)
|
(Thousands)
|
||||||||||
Discount Rate
|
0.25
|
%
|
$
|
(3,180
|
)
|
$
|
(133
|
)
|
|||||
(0.25
|
)
|
3,270
|
133
|
||||||||||
Expected Return on Plan Assets
|
0.25
|
%
|
—
|
(140
|
)
|
||||||||
(0.25
|
)
|
—
|
140
|
||||||||||
Annual Medical Cost Trend
|
1.00
|
%
|
8,240
|
1,580
|
|||||||||
(1.00
|
)
|
(7,670
|
)
|
(1,440
|
)
|
||||||||
* Excludes the impact of regulatory deferral mechanism. See Note 2, Pension Plans and Other Postretirement Benefits, of the Notes to Financial Statements for information regarding the regulatory treatment of these costs.
|
Regulated Operations – Laclede Gas accounts for its regulated operations in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 980, “Regulated Operations.” This Topic sets forth the application of GAAP for those companies whose rates are established by or are subject to approval by an independent third-party regulator. The provisions of this accounting guidance require, among other things, that financial statements of a regulated enterprise reflect the actions of regulators, where appropriate. These actions may result in the recognition of revenues and expenses in time periods that are different than non-regulated enterprises. When this occurs, costs are deferred as assets in the balance sheet (regulatory assets) and recorded as expenses when those amounts are reflected in rates. Also, regulators can impose liabilities upon a regulated company for amounts previously collected from customers and for recovery of costs that are expected to be incurred in the future (regulatory liabilities). Management believes that the current regulatory environment supports the continued use of these regulatory accounting principles and that all regulatory assets and regulatory liabilities are recoverable or refundable through the regulatory process. Management believes the following represent the more significant items recorded through the application of this accounting guidance:
|
The Utility’s PGA Clause allows Laclede Gas to flow through to customers, subject to prudence review by the MoPSC, the cost of purchased gas supplies, including the costs, cost reductions, and related carrying costs associated with the Utility’s use of natural gas derivative instruments to hedge the purchase price of natural gas. The difference between actual costs incurred and costs recovered through the application of the PGA are recorded as regulatory assets and regulatory liabilities that are recovered or refunded in a subsequent period. The PGA Clause also authorizes the Utility to recover costs it incurs to finance its investment in gas supplies that are purchased during the storage injection season for sale during the heating season. The PGA Clause also permits the application of carrying costs to all over- or under-recoveries of gas costs, including costs and cost reductions associated with the use of derivative instruments. The PGA Clause also provides for a portion of income from off-system sales and capacity release revenues to be flowed through to customers.
|
||
Laclede Gas records deferred tax liabilities and assets measured by enacted tax rates for the net tax effect of all temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes, and the amounts used for income tax purposes. Changes in enacted tax rates, if any, and certain property basis differences will be reflected by entries to regulatory asset or regulatory liability accounts for regulated activities. Pursuant to the direction of the MoPSC, Laclede Gas’ provision for income tax expense reflects the regulatory method of excess asset depreciation followed for financial reporting purposes. Laclede Gas’ provision for income tax expense also records the income tax effect associated with the difference between overheads capitalized to construction for financial reporting purposes and those recognized for tax purposes without recording an offsetting deferred income tax expense. These two methods are consistent with the regulatory treatment prescribed by the MoPSC.
|
||
Asset retirement obligations are recorded in accordance with GAAP using various assumptions related to the timing, method of settlement, inflation, and profit margins that third parties would demand to settle the future obligations. These assumptions require the use of judgment and estimates and may change in future periods as circumstances dictate. As authorized by the MoPSC, Laclede Gas accrues future removal costs associated with its property, plant and equipment through its depreciation rates, even if a legal obligation does not exist as defined by GAAP. The difference between removal costs recognized in depreciation rates and the accretion expense and depreciation expense recognizable pursuant to GAAP is a timing difference between the recovery of these costs in rates and their recognition for financial reporting purposes. Accordingly, these differences are deferred as regulatory liabilities.
|
The amount of net periodic pension and other postretirement benefit cost recognized in the financial statements related to the Utility’s qualified pension plans and other postretirement benefit plans is based upon allowances, as approved by the MoPSC, which have been established in the rate-making process for the recovery of these costs from customers. The differences between these amounts and actual pension and other postretirement benefit costs incurred for financial reporting purposes are deferred as regulatory assets or regulatory liabilities. GAAP also requires that changes that affect the funded status of pension and other postretirement benefit plans, but that are not yet required to be recognized as components of pension and other postretirement benefit cost, be reflected in other comprehensive income. For the Utility’s qualified pension plans and other postretirement benefit plans, amounts that would otherwise be reflected in other comprehensive income are deferred with entries to regulatory assets or regulatory liabilities.
|
Commercial Paper
Borrowings
|
Borrowings from
Laclede Group
|
Total
Short-Term
Borrowings
|
|
12 Months Ended September 30, 2012
|
|||
Weighted average borrowings outstanding
|
$43.8 million
|
$78.2 million
|
$122.0 million
|
Weighted average interest rate
|
0.3%
|
0.3%
|
0.3%
|
Range of borrowings outstanding
|
$0 – $133.5 million
|
$13.0 - $107.5 million
|
$59.6 - $200.1 million
|
As of September 30, 2012
|
|||
Borrowings outstanding at end of period
|
$40.1 million
|
$37.1 million
|
$77.2 million
|
Weighted average interest rate
|
0.2%
|
0.2%
|
0.2%
|
12 Months Ended September 30, 2011
|
|||
Weighted average borrowings outstanding
|
$54.6 million
|
$44.6 million
|
$99.2 million
|
Weighted average interest rate
|
0.3%
|
0.3%
|
0.3%
|
Range of borrowings outstanding
|
$0 – $172.1 million
|
$0 - $79.9 million
|
$11.5 - $193.0 million
|
As of September 30, 2011
|
|||
Borrowings outstanding at end of period
|
$46.0 million
|
$52.9 million
|
$98.9 million
|
Weighted average interest rate
|
0.3%
|
0.3%
|
0.3%
|
Payments due by period
|
||||||||||||||||
Less than
|
1-3
|
3-5
|
More than
|
|||||||||||||
Contractual Obligations
|
Total
|
1 Year
|
Years
|
Years
|
5 Years
|
|||||||||||
Principal Payments on Long-Term Debt (a)
|
$
|
365.0
|
$
|
25.0
|
$
|
—
|
$
|
—
|
$
|
340.0
|
||||||
Interest Payments on Long-Term Debt (a)
|
438.2
|
22.1
|
42.7
|
42.7
|
330.7
|
|||||||||||
Capital Leases (b)
|
0.2
|
0.1
|
0.1
|
—
|
—
|
|||||||||||
Operating Leases (b)
|
8.3
|
3.8
|
4.3
|
0.2
|
—
|
|||||||||||
Purchase Obligations – Natural Gas (c)
|
298.5
|
225.5
|
58.8
|
13.6
|
0.6
|
|||||||||||
Purchase Obligations – Other (d)
|
85.1
|
24.8
|
21.5
|
18.2
|
20.6
|
|||||||||||
Total (e)
|
$
|
1,195.3
|
$
|
301.3
|
$
|
127.4
|
$
|
74.7
|
$
|
691.9
|
(a)
|
The principal and interest payments on long-term debt included in the table above do not include obligations associated with Laclede Gas’ commitment to issue $100 million of first mortgage bonds in private placements scheduled for settlement in March 2013. Of this $100 million, $55 million will be issued at 3.00% for a 10-year term, and $45 million will be issued at 3.40% for a 15-year term. Refer to Long-term Debt, Equity, and Shelf Registrations on page 29 for additional information.
|
(b)
|
Lease obligations are primarily for office space, vehicles, and power operated equipment. Additional payments will be incurred if renewal options are exercised under the provisions of certain agreements.
|
(c)
|
These purchase obligations represent the minimum payments required under existing natural gas transportation and storage contracts and natural gas supply agreements. These amounts reflect fixed obligations as well as obligations to purchase natural gas at future market prices, calculated using September 30, 2012 NYMEX futures prices. Laclede Gas recovers the costs related to its purchases, transportation, and storage of natural gas through the operation of its PGA Clause, subject to prudence review by the MoPSC; however, variations in the timing of collections of gas costs from customers affect short-term cash requirements. Additional contractual commitments are generally entered into prior to or during the heating season.
|
(d)
|
These purchase obligations primarily reflect miscellaneous agreements for the purchase of materials and the procurement of services necessary for normal operations.
|
(e)
|
The category of Other Long-Term Liabilities has been excluded from the table above because there are no material amounts of contractual obligations under this category. Long-term liabilities associated with unrecognized tax benefits, totaling $5.6 million, have been excluded from the table above because the timing of future cash outflows, if any, cannot be reasonably estimated. Also, commitments related to pension and postretirement benefit plans have been excluded from the table above. Laclede Gas expects to make contributions to its qualified, trusteed pension plans totaling $23.3 million in fiscal year 2013. Laclede Gas anticipates a $0.5 million contribution relative to its non-qualified pension plans during fiscal year 2013. With regard to the postretirement benefits, the Utility anticipates it will contribute $15.7 million to the qualified trusts and $0.8 million directly to participants from Laclede Gas’ funds during fiscal year 2013. For further discussion of the Utility’s pension and postretirement benefit plans, refer to Note 2, Pension Plans and Other Postretirement Benefits, of the Notes to Financial Statements.
|
Item 8. Financial Statements and Supplementary Data
|
|||
2012 10-K Page
|
|||
Financial Statements:
|
|||
For Years Ended September 30, 2012, 2011, and 2010:
|
|||
As of September 30, 2012 and 2011:
|
|||
Notes to Financial Statements:
|
|||
STATEMENTS OF INCOME
|
||||||||||||||||
(Thousands)
|
||||||||||||||||
Years Ended September 30
|
2012
|
2011
|
|
2010
|
||||||||||||
Operating Revenues:
|
||||||||||||||||
Utility
|
$
|
764,651
|
$
|
913,190
|
$
|
864,297
|
||||||||||
Other
|
2,976
|
19,138
|
10,327
|
|||||||||||||
Total Operating Revenues
|
767,627
|
932,328
|
874,624
|
|||||||||||||
Operating Expenses:
|
||||||||||||||||
Utility
|
||||||||||||||||
Natural and propane gas
|
414,846
|
549,947
|
519,905
|
|||||||||||||
Other operation expenses
|
144,440
|
147,889
|
141,995
|
|||||||||||||
Maintenance
|
22,911
|
25,049
|
27,244
|
|||||||||||||
Depreciation and amortization
|
40,739
|
39,214
|
37,572
|
|||||||||||||
Taxes, other than income taxes
|
53,672
|
60,752
|
61,407
|
|||||||||||||
Total Utility Operating Expenses
|
676,608
|
822,851
|
788,123
|
|||||||||||||
Other
|
209
|
7,985
|
4,343
|
|||||||||||||
Total Operating Expenses
|
676,817
|
830,836
|
792,466
|
|||||||||||||
Operating Income
|
90,810
|
101,492
|
82,158
|
|||||||||||||
Other Income and (Income Deductions) - Net
|
2,705
|
825
|
2,569
|
|||||||||||||
Interest Charges:
|
||||||||||||||||
Interest on long-term debt
|
22,958
|
23,161
|
24,583
|
|||||||||||||
Other interest charges
|
2,198
|
2,383
|
2,269
|
|||||||||||||
Total Interest Charges
|
25,156
|
25,544
|
26,852
|
|||||||||||||
Income Before Income Taxes
|
68,359
|
76,773
|
57,875
|
|||||||||||||
Income Tax Expense
|
18,460
|
22,996
|
18,150
|
|||||||||||||
Net Income
|
$
|
49,899
|
$
|
53,777
|
$
|
39,725
|
||||||||||
See the accompanying Notes to Financial Statements.
|
LACLEDE GAS COMPANY
|
||||||||||||||||
(Thousands)
|
|
|||||||||||||||
Years Ended September 30
|
2012
|
2011
|
2010
|
|||||||||||||
Net Income
|
$
|
49,899
|
$
|
53,777
|
$
|
39,725
|
||||||||||
Other Comprehensive Income (Loss) Before Tax:
|
||||||||||||||||
Net gains (losses) on cash flow hedging derivative instruments:
|
||||||||||||||||
Net hedging gains arising during the period
|
297
|
355
|
160
|
|||||||||||||
Reclassification adjustment for gains included in net income
|
—
|
(466
|
)
|
(264
|
)
|
|||||||||||
Net unrealized gains (losses) on cash flow hedging derivative
instruments
|
297
|
(111
|
)
|
(104
|
)
|
|||||||||||
Defined benefit pension and other postretirement benefit plans:
|
||||||||||||||||
Net actuarial (loss) gain arising during the period
|
(3,397
|
)
|
339
|
(1,783
|
)
|
|||||||||||
Amortization of actuarial loss included in net periodic pension
and other postretirement benefit cost
|
3,706
|
426
|
1,471
|
|||||||||||||
Net defined benefit pension and other postretirement
benefit plans
|
309
|
765
|
(312
|
)
|
||||||||||||
Other Comprehensive Income (Loss), Before Tax
|
606
|
654
|
(416
|
)
|
||||||||||||
Income Tax Expense (Benefit) Related to Items of Other
Comprehensive Income (Loss)
|
234
|
252
|
(160
|
)
|
||||||||||||
Other Comprehensive Income (Loss), Net of Tax
|
372
|
402
|
(256
|
)
|
||||||||||||
Comprehensive Income
|
$
|
50,271
|
$
|
54,179
|
$
|
39,469
|
||||||||||
See the accompanying Notes to Financial Statements.
|
LACLEDE GAS COMPANY
|
|||||||||||
(Thousands)
|
|||||||||||
September 30
|
2012
|
2011
|
|||||||||
ASSETS
|
|||||||||||
Utility Plant
|
$
|
1,497,419
|
$
|
1,386,590
|
|||||||
Less – Accumulated depreciation and amortization
|
478,120
|
457,907
|
|||||||||
Net Utility Plant
|
1,019,299
|
928,683
|
|||||||||
Other Property and Investments
|
46,358
|
46,950
|
|||||||||
Current Assets:
|
|||||||||||
Cash and cash equivalents
|
2,402
|
923
|
|||||||||
Accounts receivable:
|
|||||||||||
Utility
|
64,027
|
71,090
|
|||||||||
Non-utility
|
1,244
|
1,347
|
|||||||||
Associated companies
|
4,315
|
426
|
|||||||||
Other
|
17,288
|
6,935
|
|||||||||
Allowance for doubtful accounts
|
(7,601
|
)
|
(9,969
|
)
|
|||||||
Inventories:
|
|||||||||||
Natural gas stored underground at LIFO cost
|
89,852
|
115,170
|
|||||||||
Propane gas at FIFO cost
|
8,963
|
8,961
|
|||||||||
Materials and supplies at average cost
|
3,418
|
4,104
|
|||||||||
Derivative instrument assets
|
—
|
4,746
|
|||||||||
Unamortized purchased gas adjustments
|
40,674
|
25,719
|
|||||||||
Prepayments and other
|
9,011
|
8,527
|
|||||||||
Total Current Assets
|
233,593
|
237,979
|
|||||||||
Deferred Charges:
|
|||||||||||
Regulatory assets
|
456,047
|
423,492
|
|||||||||
Other
|
4,855
|
5,942
|
|||||||||
Total Deferred Charges
|
460,902
|
429,434
|
|||||||||
Total Assets
|
$
|
1,760,152
|
$
|
1,643,046
|
LACLEDE GAS COMPANY
|
|||||||||||
BALANCE SHEETS (continued)
|
|||||||||||
(Thousands)
|
|||||||||||
September 30
|
2012
|
2011
|
|||||||||
CAPITALIZATION AND LIABILITIES
|
|||||||||||
Capitalization:
|
|||||||||||
Common stock equity
|
$
|
491,328
|
$
|
433,957
|
|||||||
Long-term debt (less current portion)
|
339,416
|
364,357
|
|||||||||
Total Capitalization
|
830,744
|
798,314
|
|||||||||
Current Liabilities:
|
|||||||||||
Notes payable
|
40,100
|
46,000
|
|||||||||
Notes payable – associated companies
|
37,125
|
52,879
|
|||||||||
Accounts payable
|
38,391
|
45,635
|
|||||||||
Accounts payable – associated companies
|
2,576
|
1,730
|
|||||||||
Advance customer billings
|
25,146
|
15,230
|
|||||||||
Current portion of long-term debt
|
25,000
|
—
|
|||||||||
Wages and compensation accrued
|
13,908
|
13,650
|
|||||||||
Dividends payable
|
9,354
|
9,084
|
|||||||||
Customer deposits
|
8,565
|
10,048
|
|||||||||
Interest accrued
|
8,590
|
8,812
|
|||||||||
Taxes accrued
|
13,822
|
10,038
|
|||||||||
Deferred income taxes
|
10,146
|
9,165
|
|||||||||
Other
|
10,068
|
9,191
|
|||||||||
Total Current Liabilities
|
242,791
|
231,462
|
|||||||||
Deferred Credits and Other Liabilities:
|
|||||||||||
Deferred income taxes
|
355,458
|
315,325
|
|||||||||
Unamortized investment tax credits
|
3,113
|
3,326
|
|||||||||
Pension and postretirement benefit costs
|
196,558
|
185,701
|
|||||||||
Asset retirement obligations
|
40,126
|
27,486
|
|||||||||
Regulatory liabilities
|
56,319
|
50,846
|
|||||||||
Other
|
35,043
|
30,586
|
|||||||||
Total Deferred Credits and Other Liabilities
|
686,617
|
613,270
|
|||||||||
Commitments and Contingencies (Note 12)
|
|||||||||||
Total Capitalization and Liabilities
|
$
|
1,760,152
|
$
|
1,643,046
|
|||||||
See the accompanying Notes to Financial Statements.
|
LACLEDE GAS COMPANY
|
|||||||||
(Thousands, Except for Shares and Per Share Amounts)
|
|||||||||
September 30
|
2012
|
2011
|
|||||||
Common Stock Equity:
|
|||||||||
Common stock, par value $1 per share and Paid-in Capital:
|
|||||||||
Authorized – 2012 and 2011, 50,000,000 shares
|
|||||||||
Issued – 2012, 12,804 shares; and 2011, 11,717 shares
|
$
|
257,415
|
$
|
212,970
|
|||||
Retained earnings
|
236,014
|
223,460
|
|||||||
Accumulated other comprehensive loss
|
(2,101
|
)
|
(2,473
|
)
|
|||||
Total Common Stock Equity
|
491,328
|
433,957
|
|||||||
Long-Term Debt:
|
|||||||||
First Mortgage Bonds:
|
|||||||||
6-1/2% Series, due October 15, 2012
|
—
|
25,000
|
|||||||
5-1/2% Series, due May 1, 2019
|
50,000
|
50,000
|
|||||||
7% Series, due June 1, 2029
|
25,000
|
25,000
|
|||||||
7.90% Series, due September 15, 2030
|
30,000
|
30,000
|
|||||||
6% Series, due May 1, 2034
|
100,000
|
100,000
|
|||||||
6.15% Series, due June 1, 2036
|
55,000
|
55,000
|
|||||||
6.35% Series, due October 15, 2038
|
80,000
|
80,000
|
|||||||
Total
|
340,000
|
365,000
|
|||||||
Unamortized discount, net of premium, on long-term debt
|
(584
|
)
|
(643
|
)
|
|||||
Total Long-Term Debt
|
339,416
|
364,357
|
|||||||
Total Capitalization
|
$
|
830,744
|
$
|
798,314
|
|||||
Long-term debt dollar amounts are exclusive of current portion.
|
|||||||||
See the accompanying Notes to Financial Statements.
|
LACLEDE GAS COMPANY
|
||||||||||||||||||
Common Stock Issued
|
Paid-in
|
Retained
|
Accum.
Other
Comp.
|
|||||||||||||||
(Thousands, Except for Shares)
|
Shares
|
Amount
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
||||||||||||
BALANCE OCTOBER 1, 2009
|
11,634
|
$
|
12
|
$
|
203,742
|
$
|
201,450
|
$
|
(2,619
|
)
|
$
|
402,585
|
||||||
Net income
|
—
|
—
|
—
|
39,725
|
—
|
39,725
|
||||||||||||
Dividends declared:
|
||||||||||||||||||
Common stock
|
—
|
—
|
—
|
(35,195
|
)
|
—
|
(35,195
|
)
|
||||||||||
Stock-based compensation costs
|
—
|
—
|
2,956
|
—
|
—
|
2,956
|
||||||||||||
Tax benefit – stock compensation
|
—
|
—
|
6
|
—
|
—
|
6
|
||||||||||||
Other comprehensive loss, net of tax
|
—
|
—
|
—
|
—
|
(256
|
)
|
(256
|
)
|
||||||||||
Issuance of common stock to Laclede Group
|
40
|
—
|
1,438
|
—
|
—
|
1,438
|
||||||||||||
BALANCE SEPTEMBER 30, 2010
|
11,674
|
12
|
208,142
|
205,980
|
(2,875
|
)
|
411,259
|
|||||||||||
Net income
|
—
|
—
|
—
|
53,777
|
—
|
53,777
|
||||||||||||
Dividends declared:
|
||||||||||||||||||
Common stock
|
—
|
—
|
—
|
(36,297
|
)
|
—
|
(36,297
|
)
|
||||||||||
Stock-based compensation costs
|
—
|
—
|
2,946
|
—
|
—
|
2,946
|
||||||||||||
Tax benefit – stock compensation
|
—
|
—
|
278
|
—
|
—
|
278
|
||||||||||||
Other comprehensive income, net of tax
|
—
|
—
|
—
|
—
|
402
|
402
|
||||||||||||
Issuance of common stock to Laclede Group
|
43
|
—
|
1,592
|
—
|
—
|
1,592
|
||||||||||||
BALANCE SEPTEMBER 30, 2011
|
11,717
|
12
|
212,958
|
223,460
|
(2,473
|
)
|
433,957
|
|||||||||||
Net income
|
—
|
—
|
—
|
49,899
|
—
|
49,899
|
||||||||||||
Dividends declared:
|
||||||||||||||||||
Common stock
|
—
|
—
|
—
|
(37,345
|
)
|
—
|
(37,345
|
)
|
||||||||||
Stock-based compensation costs
|
—
|
—
|
1,972
|
—
|
—
|
1,972
|
||||||||||||
Tax benefit – stock compensation
|
—
|
—
|
(199
|
)
|
—
|
—
|
(199
|
)
|
||||||||||
Other comprehensive income, net of tax
|
—
|
—
|
—
|
—
|
372
|
372
|
||||||||||||
Issuance of common stock to Laclede Group
|
1,087
|
1
|
42,671
|
—
|
—
|
42,672
|
||||||||||||
BALANCE SEPTEMBER 30, 2012
|
12,804
|
$
|
13
|
$
|
257,402
|
$
|
236,014
|
$
|
(2,101
|
)
|
$
|
491,328
|
||||||
See the accompanying Notes to Financial Statements.
|
STATEMENTS OF CASH FLOWS
|
||||||||||
(Thousands)
|
||||||||||
Years Ended September 30
|
2012
|
2011
|
2010
|
|||||||
Operating Activities:
|
||||||||||
Net Income
|
$
|
49,899
|
$
|
53,777
|
$
|
39,725
|
||||
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
|
||||||||||
Depreciation, amortization, and accretion
|
40,784
|
39,234
|
37,572
|
|||||||
Deferred income taxes and investment tax credits
|
31,573
|
23,015
|
31,454
|
|||||||
Other – net
|
(582
|
)
|
1,992
|
1,812
|
||||||
Changes in assets and liabilities:
|
||||||||||
Accounts receivable – net
|
(9,444
|
)
|
(1,517
|
)
|
8,899
|
|||||
Unamortized purchased gas adjustments
|
(14,955
|
)
|
(2,001
|
)
|
(26,848
|
)
|
||||
Deferred purchased gas costs
|
11,090
|
44,565
|
20,265
|
|||||||
Accounts payable
|
(8,130
|
)
|
4,182
|
6,764
|
||||||
Advance customer billings – net
|
9,916
|
(1,579
|
)
|
(4,331
|
)
|
|||||
Taxes accrued
|
3,286
|
1,347
|
(3,860
|
)
|
||||||
Natural gas stored underground
|
25,318
|
(1,594
|
)
|
(20,263
|
)
|
|||||
Other assets and liabilities
|
(19,788
|
)
|
(4,446
|
)
|
1,391
|
|||||
Net cash provided by operating activities
|
118,967
|
156,975
|
92,580
|
|||||||
Investing Activities:
|
||||||||||
Capital expenditures
|
(106,734
|
)
|
(67,304
|
)
|
(56,234
|
)
|
||||
Other investments
|
3,607
|
742
|
(3,535
|
)
|
||||||
Net cash used in investing activities
|
(103,127
|
)
|
(66,562
|
)
|
(59,769
|
)
|
||||
Financing Activities:
|
||||||||||
Maturity of first mortgage bonds
|
—
|
(25,000
|
)
|
—
|
||||||
Repayment of short-term debt - net
|
(5,900
|
)
|
(83,650
|
)
|
(150
|
)
|
||||
Borrowings from Laclede Group
|
203,955
|
252,530
|
2,200
|
|||||||
Repayment of borrowings from Laclede Group
|
(219,709
|
)
|
(199,651
|
)
|
(2,200
|
)
|
||||
Changes in book overdrafts
|
1,455
|
(545
|
)
|
358
|
||||||
Dividends paid
|
(37,076
|
)
|
(36,018
|
)
|
(34,925
|
)
|
||||
Issuance of common stock to Laclede Group
|
42,672
|
1,592
|
1,438
|
|||||||
Excess tax benefits from stock-based compensation
|
299
|
291
|
131
|
|||||||
Other
|
(57
|
)
|
(48
|
)
|
(56
|
)
|
||||
Net cash used in financing activities
|
(14,361
|
)
|
(90,499
|
)
|
(33,204
|
)
|
||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
1,479
|
(86
|
)
|
(393
|
)
|
|||||
Cash and Cash Equivalents at Beginning of Year
|
923
|
1,009
|
1,402
|
|||||||
Cash and Cash Equivalents at End of Year
|
$
|
2,402
|
$
|
923
|
$
|
1,009
|
||||
Supplemental Disclosure of Cash Paid (Refunded) During the Year for:
|
||||||||||
Interest
|
$
|
24,768
|
$
|
25,460
|
$
|
26,393
|
||||
Income taxes
|
(6,588
|
)
|
(846
|
)
|
(15,163
|
)
|
||||
See the accompanying Notes to Financial Statements.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
(Thousands)
|
2012
|
2011
|
||||||
Asset retirement obligations, beginning of year
|
$
|
27,486
|
$
|
25,829
|
||||
Liabilities incurred during the period
|
619
|
687
|
||||||
Liabilities settled during the period
|
(601
|
)
|
(574
|
)
|
||||
Accretion
|
1,636
|
1,544
|
||||||
Revisions in estimated cash flows
|
10,986
|
—
|
||||||
Asset retirement obligations, end of year
|
$
|
40,126
|
$
|
27,486
|
(Thousands)
|
2012
|
2011
|
||||||
Regulatory Assets:
|
||||||||
Future income taxes due from customers
|
$
|
118,997
|
$
|
106,460
|
||||
Pension and postretirement benefit costs
|
304,446
|
272,126
|
||||||
Unamortized purchased gas adjustments
|
40,674
|
25,719
|
||||||
Purchased gas costs
|
18,386
|
29,476
|
||||||
Compensated absences
|
7,836
|
7,769
|
||||||
Cold weather rule
|
—
|
2,023
|
||||||
Other
|
6,382
|
5,638
|
||||||
Total Regulatory Assets
|
$
|
496,721
|
$
|
449,211
|
||||
Regulatory Liabilities:
|
||||||||
Unamortized investment tax credits
|
$
|
3,113
|
$
|
3,326
|
||||
Accrued cost of removal
|
55,103
|
49,380
|
||||||
Other
|
1,216
|
1,466
|
||||||
Total Regulatory Liabilities
|
$
|
59,432
|
$
|
54,172
|
•
|
Laclede Gas has a risk management policy that allows for the purchase of natural gas derivative instruments with the goal of managing price risk associated with purchasing natural gas on behalf of its customers. The MoPSC clarified that costs, cost reductions, and carrying costs associated with the Utility’s use of natural gas derivative instruments are gas costs recoverable through the PGA mechanism.
|
|
•
|
The tariffs allow the Utility flexibility to make up to three discretionary PGA changes during each year, in addition to its mandatory November PGA change, so long as such changes are separated by at least two months.
|
|
•
|
The Utility is authorized to recover gas inventory carrying costs through its PGA rates to recover costs it incurs to finance its investment in gas supplies that are purchased during the storage injection season for sale during the heating season. The Utility is also authorized to apply carrying costs to all over- or under-recoveries of gas costs, including costs and cost reductions associated with the use of derivative instruments, including cash payments for margin deposits.
|
|
•
|
The MoPSC approved a plan applicable to the Utility’s gas supply commodity costs under which it retains a portion of cost savings associated with the acquisition of natural gas below an established benchmark level. This gas supply cost management program allows the Utility to retain 10% of cost savings, up to a maximum of $3.0 million annually. Laclede Gas did not record any income under the plan during the three fiscal years reported. Income recorded under the plan, if any, is included in Utility Operating Revenues on the Statements of Income.
|
Pre-tax Income
|
Customer Share
|
Company Share
|
||
First $2 million
|
85%
|
15%
|
||
Next $2 million
|
80%
|
20%
|
||
Next $2 million
|
75%
|
25%
|
||
Amounts exceeding $6 million
|
70%
|
30%
|
(Thousands)
|
2012
|
2011
|
2010
|
||||||||
Total equity compensation cost
|
$
|
2,303
|
$
|
3,383
|
$
|
3,270
|
|||||
Compensation cost capitalized
|
(808
|
)
|
(924
|
)
|
(798
|
)
|
|||||
Compensation cost recognized in net income
|
1,495
|
2,459
|
2,472
|
||||||||
Income tax benefit recognized in net income
|
(577
|
)
|
(948
|
)
|
(953
|
)
|
|||||
Compensation cost recognized in net income, net of income tax
|
$
|
918
|
$
|
1,511
|
$
|
1,519
|
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS
|
(Thousands)
|
2012
|
2011
|
2010
|
||||||||
Service cost – benefits earned during the period
|
$
|
9,203
|
$
|
9,553
|
$
|
8,841
|
|||||
Interest cost on projected benefit obligation
|
19,358
|
18,819
|
19,729
|
||||||||
Expected return on plan assets
|
(19,595
|
)
|
(18,849
|
)
|
(20,256
|
)
|
|||||
Amortization of prior service cost
|
592
|
642
|
756
|
||||||||
Amortization of actuarial loss
|
9,040
|
10,228
|
8,107
|
||||||||
Loss on lump-sum settlements
|
20,051
|
943
|
1,078
|
||||||||
Sub-total
|
38,649
|
21,336
|
18,255
|
||||||||
Regulatory adjustment
|
(18,579
|
)
|
(7,066
|
)
|
(10,862
|
)
|
|||||
Net pension cost
|
$
|
20,070
|
$
|
14,270
|
$
|
7,393
|
(Thousands)
|
2012
|
2011
|
2010
|
||||||||
Current year actuarial loss (gain)
|
$
|
32,884
|
$
|
(13,485
|
)
|
$
|
3,822
|
||||
Amortization of actuarial loss
|
(29,091
|
)
|
(11,171
|
)
|
(9,185
|
)
|
|||||
Current year prior service credit
|
—
|
—
|
(2,949
|
)
|
|||||||
Amortization of prior service cost
|
(592
|
)
|
(642
|
)
|
(756
|
)
|
|||||
Sub-total
|
3,201
|
(25,298
|
)
|
(9,068
|
)
|
||||||
Regulatory adjustment
|
(3,510
|
)
|
24,533
|
9,380
|
|||||||
Total recognized in other comprehensive income
|
$
|
(309
|
)
|
$
|
(765
|
)
|
$
|
312
|
(Thousands)
|
2012
|
2011
|
|||||||
Benefit obligation at beginning of year
|
$
|
384,163
|
$
|
398,360
|
|||||
Service cost
|
9,203
|
9,553
|
|||||||
Interest cost
|
19,358
|
18,819
|
|||||||
Actuarial loss (gain)
|
52,161
|
(12,625
|
)
|
||||||
Settlement loss
|
14,348
|
746
|
|||||||
Gross benefits paid *
|
(67,062
|
)
|
(30,690
|
)
|
|||||
Benefit obligation at end of year
|
$
|
412,171
|
$
|
384,163
|
|||||
Accumulated benefit obligation at end of year
|
$
|
353,061
|
$
|
329,594
|
|||||
*
|
Includes $(60,085) and $(2,333) lump-sum payments recognized as settlements in fiscal years 2012 and 2011, respectively.
|
(Thousands)
|
2012
|
2011
|
|||||||
Fair value of plan assets at beginning of year
|
$
|
247,959
|
$
|
240,922
|
|||||
Actual return on plan assets
|
53,220
|
20,455
|
|||||||
Employer contributions
|
40,013
|
17,272
|
|||||||
Gross benefits paid *
|
(67,062
|
)
|
(30,690
|
)
|
|||||
Fair value of plan assets at end of year
|
$
|
274,130
|
$
|
247,959
|
|||||
Funded status of plans, end of year
|
$
|
(138,041
|
)
|
$
|
(136,204
|
)
|
|||
*
|
Includes $(60,085) and $(2,333) lump-sum payments recognized as settlements in fiscal years 2012 and 2011, respectively.
|
(Thousands)
|
2012
|
2011
|
||||||
Current liabilities
|
$
|
(468
|
)
|
$
|
(2,440
|
)
|
||
Noncurrent liabilities
|
(137,573
|
)
|
(133,764
|
)
|
||||
Total
|
$
|
(138,041
|
)
|
$
|
(136,204
|
)
|
||
Pre-tax amounts recognized in accumulated other comprehensive income not yet recognized as components of net periodic pension cost consist of:
|
||||||||
Net actuarial loss
|
$
|
136,464
|
$
|
132,671
|
||||
Prior service costs
|
5,011
|
5,603
|
||||||
Sub-total
|
141,475
|
138,274
|
||||||
Adjustments for amounts included in Regulatory Assets
|
(137,845
|
)
|
(134,334
|
)
|
||||
Total
|
$
|
3,630
|
$
|
3,940
|
(Thousands)
|
|||||
Amortization of net actuarial loss
|
$
|
11,356
|
|||
Amortization of prior service cost
|
544
|
||||
Sub-total
|
11,900
|
||||
Regulatory adjustment
|
(11,538
|
)
|
|||
Total
|
$
|
362
|
2012
|
2011
|
2010
|
||||
Weighted average discount rate
|
5.10%
|
4.75%
|
5.25%
|
|||
Weighted average rate of future compensation increase
|
3.00%
|
3.00%
|
3.25%
|
|||
Expected long-term rate of return on plan assets
|
7.75%
|
8.00%
|
8.25%
|
2012
|
2011
|
|||
Weighted average discount rate
|
3.95%
|
5.10%
|
||
Weighted average rate of future compensation increase
|
3.00%
|
3.00%
|
(Thousands)
|
2012
|
2011
|
||||||
Projected benefit obligation
|
$
|
412,171
|
$
|
384,163
|
||||
Fair value of plan assets
|
274,130
|
247,959
|
||||||
Accumulated benefit obligation
|
353,061
|
329,594
|
||||||
Fair value of plan assets
|
274,130
|
247,959
|
2013
|
2012
|
2011
|
||||
Target
|
Actual
|
Actual
|
||||
Growth Strategy
|
||||||
Equity Markets
|
42.5%
|
37.3%
|
44.6%
|
|||
Commodities
|
2.5%
|
2.2%
|
0.0%
|
|||
Real Estate
|
2.5%
|
2.2%
|
0.0%
|
|||
Inflation-Indexed Securities
|
2.5%
|
2.2%
|
0.0%
|
|||
Debt Securities
|
50.0%
|
41.1%
|
55.3%
|
|||
Other*
|
0.0%
|
15.0%
|
0.1%
|
|||
Total
|
100.0%
|
100.0%
|
100.0%
|
(Millions)
|
Pensions from
Qualified Trust
|
Pensions from
Laclede Gas
Funds
|
||||||||||
2013
|
$
|
19.0
|
$
|
0.5
|
||||||||
2014
|
19.1
|
0.5
|
||||||||||
2015
|
22.1
|
0.5
|
||||||||||
2016
|
24.5
|
0.6
|
||||||||||
2017
|
27.9
|
0.7
|
||||||||||
2018 – 2022
|
187.2
|
4.4
|
(Thousands)
|
2012
|
2011
|
2010
|
||||||||
Service cost – benefits earned during the period
|
$
|
8,060
|
$
|
7,676
|
$
|
6,442
|
|||||
Interest cost on accumulated postretirement
|
|||||||||||
benefit obligation
|
5,521
|
4,843
|
4,515
|
||||||||
Expected return on plan assets
|
(3,965
|
)
|
(3,646
|
)
|
(3,032
|
)
|
|||||
Amortization of transition obligation
|
136
|
136
|
136
|
||||||||
Amortization of prior service credit
|
(2,072
|
)
|
(2,328
|
)
|
(2,328
|
)
|
|||||
Amortization of actuarial loss
|
4,261
|
4,443
|
3,980
|
||||||||
Sub-total
|
11,941
|
11,124
|
9,713
|
||||||||
Regulatory adjustment
|
(2,417
|
)
|
(2,071
|
)
|
(2,071
|
)
|
|||||
Net postretirement benefit cost
|
$
|
9,524
|
$
|
9,053
|
$
|
7,642
|
(Thousands)
|
2012
|
2011
|
2010
|
||||||||
Current year actuarial loss
|
$
|
10,138
|
$
|
1,696
|
$
|
6,713
|
|||||
Amortization of actuarial loss
|
(4,261
|
)
|
(4,443
|
)
|
(3,980
|
)
|
|||||
Amortization of prior service credit
|
2,072
|
2,328
|
2,328
|
||||||||
Amortization of transition obligation
|
(136
|
)
|
(136
|
)
|
(136
|
)
|
|||||
Sub-total
|
7,813
|
(555
|
)
|
4,925
|
|||||||
Regulatory adjustment
|
(7,813
|
)
|
555
|
(4,925
|
)
|
||||||
Total recognized in other comprehensive income
|
$
|
—
|
$
|
—
|
$
|
—
|
(Thousands)
|
2012
|
2011
|
||||||
Benefit obligation at beginning of year
|
$
|
103,991
|
$
|
97,979
|
||||
Service cost
|
8,060
|
7,676
|
||||||
Interest cost
|
5,521
|
4,843
|
||||||
Actuarial loss (gain)
|
15,895
|
(1,159
|
)
|
|||||
Gross benefits paid
|
(6,250
|
)
|
(5,348
|
)
|
||||
Benefit obligation at end of year
|
$
|
127,217
|
$
|
103,991
|
(Thousands)
|
2012
|
2011
|
||||||
Fair value of plan assets at beginning of year
|
$
|
51,744
|
$
|
45,090
|
||||
Actual return on plan assets
|
9,722
|
791
|
||||||
Employer contributions
|
12,226
|
11,211
|
||||||
Gross benefits paid
|
(6,250
|
)
|
(5,348
|
)
|
||||
Fair value of plan assets at end of year
|
$
|
67,442
|
$
|
51,744
|
||||
Funded status of plans, end of year
|
$
|
(59,775
|
)
|
$
|
(52,247
|
)
|
(Thousands)
|
2012
|
2011
|
||||||
Current liabilities
|
$
|
(790
|
)
|
$
|
(310
|
)
|
||
Noncurrent liabilities
|
(58,985
|
)
|
(51,937
|
)
|
||||
Total
|
$
|
(59,775
|
)
|
$
|
(52,247
|
)
|
||
Pre-tax amounts recognized in accumulated other comprehensive income not yet recognized as components of net periodic postretirement benefit cost consist of:
|
||||||||
Net actuarial loss
|
$
|
52,573
|
$
|
46,696
|
||||
Prior service credit
|
(24
|
)
|
(2,096
|
)
|
||||
Transition obligation
|
93
|
229
|
||||||
Sub-total
|
52,642
|
44,829
|
||||||
Adjustments for amounts included in Regulatory Assets
|
(52,642
|
)
|
(44,829
|
)
|
||||
Total
|
$
|
—
|
$
|
—
|
(Thousands)
|
|||||
Amortization of net actuarial loss
|
$
|
5,300
|
|||
Amortization of prior service cost
|
3
|
||||
Amortization of transition obligation
|
93
|
||||
Sub-total
|
5,396
|
||||
Regulatory adjustment
|
(5,396
|
)
|
|||
Total
|
$
|
—
|
2012
|
2011
|
2010
|
||||
Weighted average discount rate
|
5.05%
|
4.70%
|
5.15%
|
|||
Weighted average rate of future compensation increase
|
3.00%
|
3.00%
|
3.25%
|
|||
Expected long-term rate of return on plan assets
|
7.75%
|
8.00%
|
8.25%
|
2012
|
2011
|
|||
Weighted average discount rate
|
3.80%
|
5.05%
|
||
Weighted average rate of future compensation increase
|
3.00%
|
3.00%
|
2012
|
2011
|
|||
Medical cost trend assumed for next year
|
7.00%
|
7.50%
|
||
Rate to which the medical cost trend rate is assumed to decline
|
||||
(the ultimate medical cost trend rate)
|
5.00%
|
5.00%
|
||
Year that the rate reaches the ultimate trend
|
2017
|
2017
|
(Thousands)
|
1% Increase
|
1% Decrease
|
||||||||
Effect on net periodic postretirement benefit cost
|
$
|
1,580
|
$
|
(1,440
|
)
|
|||||
Effect on accumulated postretirement benefit obligation
|
8,240
|
(7,670
|
)
|
2013
|
2012
|
2011
|
||||
Target
|
Actual
|
Actual
|
||||
Equity Securities
|
60.0%
|
59.0%
|
59.0%
|
|||
Debt Securities
|
40.0%
|
39.0%
|
41.0%
|
|||
Other
|
0.0%
|
2.0%
|
0.0%
|
|||
Total
|
100.0%
|
100.0%
|
100.0%
|
(Millions)
|
Benefits Paid
from
Qualified Trust
|
|
Benefits Paid
from Laclede Gas
Funds
|
|||||||||
2013
|
$
|
4.7
|
$
|
0.8
|
||||||||
2014
|
5.3
|
0.3
|
||||||||||
2015
|
5.8
|
0.3
|
||||||||||
2016
|
6.4
|
0.3
|
||||||||||
2017
|
7.4
|
0.4
|
||||||||||
2018 – 2022
|
56.5
|
2.1
|
(Thousands)
|
Quoted
Prices in
Active
Markets
(Level 1)
|
Significant
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
|||||||||||
As of September 30, 2012
|
|||||||||||||||
Cash and cash equivalents
|
$
|
57,614
|
$
|
—
|
$
|
—
|
$
|
57,614
|
|||||||
Debt Securities
|
|||||||||||||||
U.S. bond mutual funds
|
36,767
|
—
|
—
|
36,767
|
|||||||||||
U.S. government
|
—
|
57,925
|
—
|
57,925
|
|||||||||||
U.S. corporate
|
—
|
93,169
|
—
|
93,169
|
|||||||||||
U.S. municipal
|
—
|
9,493
|
—
|
9,493
|
|||||||||||
International
|
—
|
18,885
|
—
|
18,885
|
|||||||||||
Derivative instruments (a)
|
—
|
277
|
—
|
277
|
|||||||||||
Total
|
$
|
94,381
|
$
|
179,749
|
$
|
—
|
$
|
274,130
|
|||||||
As of September 30, 2011
|
|||||||||||||||
Cash and cash equivalents
|
$
|
2,123
|
$
|
—
|
$
|
—
|
$
|
2,123
|
|||||||
Debt Securities
|
|||||||||||||||
U.S. bond mutual funds
|
36,542
|
—
|
—
|
36,542
|
|||||||||||
U.S. government
|
—
|
80,185
|
—
|
80,185
|
|||||||||||
U.S. corporate
|
—
|
103,352
|
—
|
103,352
|
|||||||||||
U.S. municipal
|
—
|
9,019
|
—
|
9,019
|
|||||||||||
International
|
—
|
18,578
|
—
|
18,578
|
|||||||||||
Derivative instruments (b)
|
—
|
(1,840
|
)
|
—
|
(1,840
|
)
|
|||||||||
Total
|
$
|
38,665
|
$
|
209,294
|
$
|
—
|
$
|
247,959
|
|||||||
(a) Derivative assets of $3,027 net of cash margin payable of $2,750. | |||||||||||||||
(b) Derivative liabilities of $10,661 net of cash margin receivable of $8,821.
|
|||||||||||||||
|
|
(Thousands)
|
Quoted
Prices in
Active
Markets
(Level 1)
|
Significant
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
||||||||||
As of September 30, 2012
|
||||||||||||||
Cash and cash equivalents
|
$
|
1,106
|
$
|
—
|
$
|
—
|
$
|
1,106
|
||||||
U.S. stock/bond mutual fund
|
66,336
|
—
|
—
|
66,336
|
||||||||||
Total
|
$
|
67,442
|
$
|
—
|
$
|
—
|
$
|
67,442
|
||||||
As of September 30, 2011
|
||||||||||||||
Cash and cash equivalents
|
$
|
1,109
|
$
|
—
|
$
|
—
|
$
|
1,109
|
||||||
U.S. stock/bond mutual fund
|
50,635
|
—
|
—
|
50,635
|
||||||||||
Total
|
$
|
51,744
|
$
|
—
|
$
|
—
|
$
|
51,744
|
STOCKHOLDER’S EQUITY
|
(Thousands)
|
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
Defined Benefit Pension and Other
Postretirement
Benefit Plans
|
Total
|
|||||||||||
Balance, September 30, 2010
|
$
|
15
|
$
|
(2,890
|
)
|
$
|
(2,875
|
)
|
||||||
Current-period change
|
(68
|
)
|
470
|
402
|
||||||||||
Balance, September 30, 2011
|
(53
|
)
|
(2,420
|
)
|
(2,473
|
)
|
||||||||
Current-period change
|
182
|
190
|
372
|
|||||||||||
Balance, September 30, 2012
|
$
|
129
|
$
|
(2,230
|
)
|
$
|
(2,101
|
)
|
4.
|
LONG-TERM DEBT
|
2013
|
$25 million
|
(Paid at maturity on October 15, 2012)
|
||
|
2014
|
—
|
||
2015
|
—
|
|||
2016
|
—
|
|||
2017
|
—
|
NOTES PAYABLE AND CREDIT AGREEMENTS
|
Commercial Paper Borrowings
|
Borrowings from Laclede Group
|
Total
Short-Term
Borrowings
|
|
12 Months Ended September 30, 2012
|
|||
Weighted average borrowings outstanding
|
$43.8 million
|
$78.2 million
|
$122.0 million
|
Weighted average interest rate
|
0.3%
|
0.3%
|
0.3%
|
Range of borrowings outstanding
|
$0 – $133.5 million
|
$13.0 – $107.5 million
|
$59.6 – $200.1 million
|
As of September 30, 2012
|
|||
Borrowings outstanding at end of period
|
$40.1 million
|
$37.1 million
|
$77.2 million
|
Weighted average interest rate
|
0.2%
|
0.2%
|
0.2%
|
12 Months Ended September 30, 2011
|
|||
Weighted average borrowings outstanding
|
$54.6 million
|
$44.6 million
|
$99.2 million
|
Weighted average interest rate
|
0.3%
|
0.3%
|
0.3%
|
Range of borrowings outstanding
|
$0 – $172.1 million
|
$0 - $79.9 million
|
$11.5 - $193.0 million
|
As of September 30, 2011
|
|||
Borrowings outstanding at end of period
|
$46.0 million
|
$52.9 million
|
$98.9 million
|
Weighted average interest rate
|
0.3%
|
0.3%
|
0.3%
|
FAIR VALUE OF FINANCIAL INSTRUMENTS
|
Classification of Estimated Fair Value (a)
|
|||||||||||||||||
(Thousands)
|
Carrying
Amount
|
Fair
Value
|
Quoted
Prices in Active Markets
(Level 1)
|
Significant Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||
As of September 30, 2012
|
|||||||||||||||||
Cash and cash equivalents
|
$
|
2,402
|
$
|
2,402
|
$
|
2,378
|
$
|
24
|
$
|
—
|
|||||||
Short-term debt
|
77,225
|
77,225
|
—
|
77,225
|
—
|
||||||||||||
Long-term debt, including current portion
|
364,416
|
452,768
|
—
|
452,768
|
—
|
||||||||||||
As of September 30, 2011
|
|||||||||||||||||
Cash and cash equivalents
|
$
|
923
|
$
|
923
|
|||||||||||||
Short-term debt
|
98,879
|
98,879
|
|||||||||||||||
Long-term debt
|
364,357
|
443,739
|
|||||||||||||||
(a) The Utility adopted the provisions of ASU 2011-04 (ASC Topic 820) in the second quarter of fiscal year 2012 on a prospective basis. Accordingly, disclosures for prior periods are not required to be presented.
|
FAIR VALUE MEASUREMENTS
|
(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 September 30, 2012
|
|||||||||||||||||
Assets
|
|||||||||||||||||
U. S. Stock/Bond Mutual Funds
|
$
|
13,187
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
13,187
|
|||||||
NYMEX natural gas contracts
|
7,338
|
—
|
—
|
(7,338
|
)
|
—
|
|||||||||||
NYMEX gasoline and heating
oil contracts
|
344
|
—
|
—
|
(344
|
)
|
—
|
|||||||||||
Total
|
$
|
20,869
|
$
|
—
|
$
|
—
|
$
|
(7,682
|
)
|
$
|
13,187
|
||||||
Liabilities
|
|||||||||||||||||
NYMEX natural gas contracts
|
$
|
9,563
|
$
|
—
|
$
|
—
|
$
|
(9,563
|
)
|
$
|
—
|
||||||
As of September 30, 2011
|
|||||||||||||||||
Assets
|
|||||||||||||||||
U. S. Stock/Bond Mutual Funds
|
$
|
14,833
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
14,833
|
|||||||
NYMEX natural gas contracts
|
457
|
—
|
—
|
5,064
|
5,521
|
||||||||||||
NYMEX gasoline and heating
oil contracts
|
19
|
—
|
—
|
162
|
181
|
||||||||||||
Total
|
$
|
15,309
|
$
|
—
|
$
|
—
|
$
|
5,226
|
$
|
20,535
|
|||||||
Liabilities
|
|||||||||||||||||
NYMEX natural gas contracts
|
$
|
16,738
|
$
|
—
|
$
|
—
|
$
|
(16,738
|
)
|
$
|
—
|
||||||
NYMEX gasoline and heating
oil contracts
|
124
|
—
|
—
|
(124
|
)
|
—
|
|||||||||||
Total
|
$
|
16,862
|
$
|
—
|
$
|
—
|
$
|
(16,862
|
)
|
$
|
—
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
|
MMBtu
(millions)
|
Avg. Price
Per
MMBtu
|
||||||
Open long futures positions
|
|||||||
Fiscal 2013
|
23.53
|
$
|
4.01
|
||||
Fiscal 2014
|
1.87
|
3.45
|
The Effect of Derivative Instruments on the Statements of Income and Statements of Comprehensive Income
|
|||||||||||||||
Location of Gain (Loss)
|
|||||||||||||||
(Thousands)
|
Recorded in Income
|
2012
|
2011
|
2010
|
|||||||||||
Derivatives in Cash Flow Hedging Relationships
|
|||||||||||||||
NYMEX gasoline and heating oil contracts:
|
|||||||||||||||
Effective portion of gain recognized in
OCI on derivatives
|
$
|
297
|
$
|
355
|
$
|
160
|
|||||||||
Effective portion of gain reclassified from
AOCI to income
|
Utility – Other Operation Expenses
|
—
|
466
|
264
|
|||||||||||
Ineffective portion of gain (loss) on derivatives
recognized in income
|
Utility – Other Operation Expenses
|
175
|
12
|
(57
|
)
|
||||||||||
Derivatives Not Designated as Hedging Instruments *
|
|||||||||||||||
NYMEX gasoline and heating oil contracts:
|
|||||||||||||||
Gain (loss) recognized in income on derivative
|
Other Income and (Income Deductions) - Net
|
$
|
19
|
$
|
37
|
$
|
(1
|
)
|
*
|
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 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 September 30, 2011
|
||||||||||
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
|
$
|
15
|
Derivative Instrument Assets
|
$
|
117
|
||||
Derivatives not designated as hedging instruments
|
||||||||||
NYMEX natural gas contracts
|
Derivative Instrument Assets
|
457
|
Derivative Instrument Assets
|
16,330
|
||||||
Other Deferred Charges
|
—
|
Other Deferred Charges
|
408
|
|||||||
NYMEX gasoline and heating oil contracts
|
Derivative Instrument Assets
|
4
|
Derivative Instrument Assets
|
7
|
||||||
Sub-total
|
461
|
16,745
|
||||||||
Total derivatives
|
$
|
476
|
$
|
16,862
|
*
|
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 7, Fair Value Measurements, for information on the valuation of derivative instruments.
|
(Thousands)
|
2012
|
2011
|
||||||
Fair value of asset derivatives presented above
|
$
|
7,682
|
$
|
476
|
||||
Fair value of cash margin receivables offset with derivatives
|
1,964
|
22,088
|
||||||
Netting of assets and liabilities with the same counterparty
|
(9,646
|
)
|
(16,862
|
)
|
||||
Total
|
$
|
—
|
$
|
5,702
|
||||
Derivative Instrument Assets, per Balance Sheets:
|
||||||||
Derivative instrument assets
|
$
|
—
|
$
|
4,746
|
||||
Other deferred charges
|
—
|
956
|
||||||
Total
|
$
|
—
|
$
|
5,702
|
||||
Fair value of liability derivatives presented above
|
$
|
9,563
|
$
|
16,862
|
||||
Fair Value of cash margin payables offset with derivatives
|
83
|
—
|
||||||
Netting of assets and liabilities with the same counterparty
|
(9,646
|
)
|
(16,862
|
)
|
||||
Derivative instrument liabilities, per Balance Sheets*
|
$
|
—
|
$
|
—
|
||||
*
|
Included in the Other line of the Current Liabilities section, if any
|
INCOME TAXES
|
(Thousands)
|
2012
|
2011
|
2010
|
||||||||
Included in Statements of Income:
|
|||||||||||
Federal
|
|||||||||||
Current
|
$
|
(11,288
|
)
|
$
|
133
|
$
|
(11,412
|
)
|
|||
Deferred
|
27,186
|
19,848
|
27,222
|
||||||||
Investment tax credits
|
(213
|
)
|
(213
|
)
|
(216
|
)
|
|||||
State and local
|
|||||||||||
Current
|
(1,825
|
)
|
(152
|
)
|
(1,892
|
)
|
|||||
Deferred
|
4,600
|
3,380
|
4,448
|
||||||||
Total Income Tax Expense
|
$
|
18,460
|
$
|
22,996
|
$
|
18,150
|
2012
|
2011
|
2010
|
|||||||||
Federal income tax statutory rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
|||||
State and local income taxes, net of federal
|
|||||||||||
income tax benefits
|
2.6
|
2.7
|
2.9
|
||||||||
Certain expenses capitalized on books and
|
|||||||||||
deducted on tax return
|
(8.9
|
)
|
(6.1
|
)
|
(5.6
|
)
|
|||||
Taxes related to prior years
|
(0.6
|
)
|
(0.8
|
)
|
(0.4
|
)
|
|||||
Other items – net
|
(1.1
|
)
|
(0.8
|
)
|
(0.5
|
)
|
|||||
Effective income tax rate
|
27.0
|
%
|
30.0
|
%
|
31.4
|
%
|
(Thousands)
|
2012
|
2011
|
||||||
Deferred tax assets:
|
||||||||
Reserves not currently deductible
|
$
|
16,400
|
$
|
18,146
|
||||
Pension and other postretirement benefits
|
73,480
|
69,112
|
||||||
Unamortized investment tax credits
|
1,955
|
2,088
|
||||||
Other
|
14,513
|
9,529
|
||||||
Total deferred tax assets
|
106,348
|
98,875
|
||||||
Deferred tax liabilities:
|
||||||||
Relating to property
|
303,332
|
278,422
|
||||||
Regulatory pension and other postretirement benefits
|
121,554
|
111,327
|
||||||
Deferred gas costs
|
20,652
|
14,674
|
||||||
Other
|
26,414
|
18,942
|
||||||
Total deferred tax liabilities
|
471,952
|
423,365
|
||||||
Net deferred tax liability
|
365,604
|
324,490
|
||||||
Net deferred tax liability – current
|
(10,146
|
)
|
(9,165
|
)
|
||||
Net deferred tax liability – non-current
|
$
|
355,458
|
$
|
315,325
|
(Thousands)
|
2012
|
2011
|
||||||
Unrecognized tax benefits, beginning of year
|
$
|
5,536
|
$
|
6,383
|
||||
Increases (decreases) related to tax positions taken in current year
|
490
|
(233
|
)
|
|||||
Reductions due to lapse of applicable statute of limitations
|
(411
|
)
|
(614
|
)
|
||||
Unrecognized tax benefits, end of year
|
$
|
5,615
|
$
|
5,536
|
OTHER INCOME AND (INCOME DEDUCTIONS) – NET
|
(Thousands)
|
2012
|
2011
|
2010
|
||||||||
Interest income
|
$
|
1,230
|
$
|
1,057
|
$
|
1,493
|
|||||
Net investment gain (loss)
|
2,626
|
(73
|
)
|
890
|
|||||||
Other income
|
804
|
53
|
161
|
||||||||
Other income deductions
|
(1,955
|
)
|
(212
|
)
|
25
|
||||||
Other Income and (Income Deductions) – Net
|
$
|
2,705
|
$
|
825
|
$
|
2,569
|
INFORMATION BY OPERATING SEGMENT
|
Regulated Gas
|
Non-Regulated
|
Adjustments &
|
|||||||||||||
(Thousands)
|
Distribution
|
Other
|
Eliminations
|
Total
|
|||||||||||
FISCAL 2012
|
|||||||||||||||
Operating revenues
|
$
|
764,651
|
$
|
2,976
|
$
|
—
|
$
|
767,627
|
|||||||
Depreciation and amortization
|
40,739
|
—
|
|
—
|
40,739
|
||||||||||
Interest income
|
1,230
|
—
|
—
|
1,230
|
|||||||||||
Interest charges
|
25,156
|
—
|
—
|
25,156
|
|||||||||||
Income tax expense
|
17,393
|
1,067
|
—
|
18,460
|
|||||||||||
Net economic earnings
|
48,089
|
1,700
|
—
|
49,789
|
|||||||||||
Total assets
|
1,758,952
|
1,200
|
—
|
1,760,152
|
|||||||||||
Capital expenditures
|
106,734
|
—
|
—
|
106,734
|
|||||||||||
FISCAL 2011
|
|||||||||||||||
Operating revenues
|
$
|
913,190
|
$
|
19,138
|
$
|
—
|
$
|
932,328
|
|||||||
Depreciation and amortization
|
39,214
|
—
|
|
—
|
39,214
|
||||||||||
Interest income
|
1,057
|
—
|
—
|
1,057
|
|||||||||||
Interest charges
|
25,544
|
—
|
—
|
25,544
|
|||||||||||
Income tax expense
|
18,694
|
4,302
|
—
|
22,996
|
|||||||||||
Net economic earnings
|
46,952
|
6,851
|
*
|
—
|
53,803
|
||||||||||
Total assets
|
1,641,386
|
1,660
|
—
|
1,643,046
|
|||||||||||
Capital expenditures
|
67,304
|
—
|
—
|
67,304
|
|||||||||||
FISCAL 2010
|
|||||||||||||||
Operating revenues
|
$
|
864,297
|
$
|
10,327
|
$
|
—
|
$
|
874,624
|
|||||||
Depreciation and amortization
|
37,572
|
—
|
—
|
37,572
|
|||||||||||
Interest income
|
1,493
|
—
|
—
|
1,493
|
|||||||||||
Interest charges
|
26,852
|
—
|
—
|
26,852
|
|||||||||||
Income tax expense
|
15,842
|
2,308
|
—
|
18,150
|
|||||||||||
Net economic earnings
|
36,141
|
3,675
|
*
|
—
|
39,816
|
||||||||||
Total assets
|
1,657,530
|
922
|
—
|
1,658,452
|
|||||||||||
Capital expenditures
|
56,234
|
—
|
—
|
56,234
|
|||||||||||
*
|
Net economic earnings include income realized by Laclede Gas from two separate non-regulated sales of propane inventory no longer needed to serve utility customers, one of which occurred in fiscal year 2011 and the other occurring in fiscal year 2010. These transactions resulted in after-tax earnings totaling $6.1 million in fiscal year 2011 and $3.7 million in fiscal year 2010.
|
Reconciliation of Net Economic Earnings to Net Income
|
|||||||||||
(Thousands)
|
2012
|
2011
|
2010
|
||||||||
Total Net Economic Earnings above
|
$
|
49,789
|
$
|
53,803
|
$
|
39,816
|
|||||
Add: Unrealized gain (loss) on energy-related
derivative contracts, net of tax
|
110
|
(26
|
)
|
(91
|
)
|
||||||
Net Income
|
$
|
49,899
|
$
|
53,777
|
$
|
39,725
|
COMMITMENTS AND CONTINGENCIES
|
INTERIM FINANCIAL INFORMATION (UNAUDITED)
|
(Thousands)
|
|||||||||||||||
Three Months Ended
|
Dec. 31
|
March 31
|
June 30
|
Sept. 30
|
|||||||||||
Fiscal Year 2012
|
|||||||||||||||
Total Operating Revenues
|
$
|
251,983
|
$
|
298,897
|
$
|
117,771
|
$
|
98,976
|
|||||||
Operating Income (Loss)
|
37,522
|
44,553
|
9,708
|
(973
|
)
|
||||||||||
Net Income (Loss)
|
21,697
|
25,925
|
4,630
|
(2,353
|
)
|
||||||||||
Three Months Ended
|
Dec. 31
|
March 31
|
June 30
|
|
Sept. 30
|
||||||||||
Fiscal Year 2011
|
|||||||||||||||
Total Operating Revenues
|
$
|
277,443
|
$
|
388,375
|
$
|
169,479
|
$
|
97,031
|
|||||||
Operating Income (Loss)
|
37,685
|
47,308
|
19,857
|
(3,358
|
)
|
||||||||||
Net Income (Loss)
|
21,455
|
26,232
|
11,533
|
(5,443
|
)
|
2012
|
2011
|
|||||||
Audit fees
|
$
|
650,000
|
$
|
602,000
|
||||
Audit related fees (1)
|
27,000
|
14,532
|
||||||
Tax fees (2)
|
26,800
|
47,409
|
||||||
All other fees (3)
|
2,200
|
2,200
|
||||||
Total
|
$
|
706,000
|
$
|
666,141
|
(1)
|
Audit related fees consisted of comfort letters, consents for registration statements and work paper reviews.
|
(2)
|
Tax fees consisted primarily of assistance with tax planning, compliance and reporting.
|
(3)
|
All other fees consisted of an annual subscription for the accounting technical library.
|
Item 15. Exhibits, Financial Statement Schedule
|
|||||
2012 10-K Page
|
|||||
(a)
|
1.
|
Financial Statements:
|
|||
See Item 8. Financial Statements and Supplementary Data, filed herewith, for a list of financial statements.
|
|||||
2.
|
Supplemental Schedule
|
||||
Schedules not included have been omitted because they are not applicable or the
|
|||||
required data has been included in the financial statements or notes to financial
|
|||||
statements.
|
|||||
3.
|
Exhibits
|
||||
Incorporated herein by reference to Index to Exhibits, page 75.
|
|||||
Item 15(a)(3) See the marked exhibits in the Index to Exhibits, page 75.
|
|||||
(b)
|
Incorporated herein by reference to Index to Exhibits, page 75.
|
LACLEDE GAS COMPANY
|
|||
November 19, 2012
|
By /s/
|
Steven P. Rasche
|
|
Steven P. Rasche
|
|||
Chief Financial Officer
|
Date
|
Signature
|
Title
|
|
11/19/12
|
/s/
|
Suzanne Sitherwood
|
Chairman of the Board and
|
Suzanne Sitherwood
|
Chief Executive Officer
|
||
(Principal Executive Officer)
|
|||
11/19/12
|
/s/
|
Steven P. Rasche
|
Chief Financial Officer
|
Steven P. Rasche
|
(Principal Financial and Accounting Officer)
|
||
11/19/12
|
/s/
|
Mark D. Waltermire
|
Director, Executive Vice President
|
Mark D. Waltermire
|
|||
11/19/12
|
/s/
|
Michael R. Spotanski
|
Director
|
Michael R. Spotanski
|
|||
11/19/12
|
/s/
|
Richard A. Skau
|
Director
|
Richard A. Skau
|
|||
COLUMN A
|
COLUMN B
|
COLUMN C
|
COLUMN D
|
COLUMN E
|
||||||||||||
BALANCE AT
|
ADDITIONS
|
CHARGED
|
DEDUCTIONS
|
BALANCE
|
||||||||||||
BEGINNING
|
TO
|
TO OTHER
|
FROM
|
AT CLOSE
|
||||||||||||
DESCRIPTION
|
OF PERIOD
|
INCOME
|
ACCOUNTS
|
RESERVES
|
OF PERIOD
|
|||||||||||
(Thousands of Dollars)
|
||||||||||||||||
YEAR ENDED
|
||||||||||||||||
SEPTEMBER 30, 2012:
|
||||||||||||||||
DOUBTFUL ACCOUNTS
|
$
|
9,969
|
$
|
6,011
|
$
|
10,145
|
(a)
|
$
|
18,524
|
(b)
|
$
|
7,601
|
||||
MISCELLANEOUS:
|
||||||||||||||||
Injuries and
|
||||||||||||||||
property damage
|
$
|
3,603
|
$
|
3,150
|
$
|
—
|
$
|
2,213
|
(c)
|
$
|
4,540
|
|||||
Deferred compensation
|
13,474
|
1,756
|
—
|
1,025
|
14,205
|
|||||||||||
Group medical claims
|
||||||||||||||||
incurred but not reported
|
1,300
|
15,381
|
—
|
15,121
|
(c)
|
1,560
|
||||||||||
TOTAL
|
$
|
18,377
|
$
|
20,287
|
$
|
—
|
$
|
18,359
|
$
|
20,305
|
||||||
YEAR ENDED
|
||||||||||||||||
SEPTEMBER 30, 2011:
|
||||||||||||||||
DOUBTFUL ACCOUNTS
|
$
|
10,176
|
$
|
7,257
|
$
|
11,340
|
(a)
|
$
|
18,804
|
(b)
|
$
|
9,969
|
||||
MISCELLANEOUS:
|
||||||||||||||||
Injuries and
|
||||||||||||||||
property damage
|
$
|
3,228
|
$
|
2,416
|
$
|
—
|
$
|
2,041
|
(c)
|
$
|
3,603
|
|||||
Deferred compensation
|
12,571
|
1,893
|
—
|
990
|
13,474
|
|||||||||||
Group medical claims
|
||||||||||||||||
incurred but not reported
|
1,450
|
14,171
|
—
|
14,321
|
(c)
|
1,300
|
||||||||||
TOTAL
|
$
|
17,249
|
$
|
18,480
|
$
|
—
|
$
|
17,352
|
$
|
18,377
|
||||||
YEAR ENDED
|
||||||||||||||||
SEPTEMBER 30, 2010:
|
||||||||||||||||
DOUBTFUL ACCOUNTS
|
$
|
10,791
|
$
|
8,609
|
$
|
12,018
|
(a)
|
$
|
21,242
|
(b)
|
$
|
10,176
|
||||
MISCELLANEOUS:
|
||||||||||||||||
Injuries and
|
||||||||||||||||
property damage
|
$
|
3,653
|
$
|
2,313
|
$
|
—
|
$
|
2,738
|
(c)
|
$
|
3,228
|
|||||
Deferred compensation
|
11,905
|
1,702
|
—
|
1,036
|
12,571
|
|||||||||||
Group medical claims
|
||||||||||||||||
incurred but not reported
|
1,450
|
12,833
|
—
|
12,833
|
(c)
|
1,450
|
||||||||||
TOTAL
|
$
|
17,008
|
$
|
16,848
|
$
|
—
|
$
|
16,607
|
$
|
17,249
|
||||||
(a)
|
Accounts reinstated, cash recoveries, etc.
|
(b)
|
Accounts written off.
|
(c)
|
Claims settled, less reimbursements from insurance companies.
|
Exhibit
|
||
No.
|
||
3.01(i)*
|
-
|
Laclede’s Restated Articles of Incorporation as amended March 1, 2010; filed as Exhibit 3.1 to Form 10-Q for the quarter ended December 31, 2010.
|
3.01(ii)*
|
-
|
Bylaws of Laclede effective January 18, 2002; filed as Exhibit 3.4 to Laclede’s Form 8-K filed May 29, 2002.
|
4.01*
|
-
|
Mortgage and Deed of Trust, dated as of February 1, 1945; filed as Exhibit 7-A to registration statement No. 2-5586.
|
4.02*
|
-
|
Fourteenth Supplemental Indenture, dated as of October 26, 1976; filed on June 26, 1979 as Exhibit b-4 to registration statement No. 2-64857.
|
4.03*
|
-
|
Twenty-Third Supplemental Indenture dated as of October 15, 1997; filed on November 6, 1997 as Exhibit 4.01 to Laclede’s Form 8-K.
|
4.04*
|
-
|
Twenty-Fourth Supplemental Indenture dated as of June 1, 1999; filed on June 4, 1999 as Exhibit 4.01 to Laclede’s Form 8-K.
|
4.05*
|
-
|
Twenty-Fifth Supplemental Indenture dated as of September 15, 2000; filed on September 27, 2000 as Exhibit 4.01 to Laclede’s Form 8-K.
|
4.06*
|
-
|
Twenty-Seventh Supplemental Indenture dated as of April 15, 2004; filed on April 28, 2004 as Exhibit 4.01 to Laclede’s Form 8-K.
|
4.07*
|
-
|
Twenty-Eighth Supplemental Indenture dated as of April 15, 2004; filed on April 28, 2004 as Exhibit 4.02 to Laclede’s Form 8-K.
|
4.08*
|
-
|
Twenty-Ninth Supplemental Indenture dated as of June 1, 2006; filed on June 9, 2006, as Exhibit 4.1 to Laclede’s Form 8-K
|
4.09*
|
-
|
Thirtieth Supplemental Indenture dated as of September 15, 2008; filed on September 23, 2008 as Exhibit 4.1 to Laclede’s Form 8-K.
|
4.10*
|
-
|
Laclede Gas Company Board of Directors’ Resolution dated August 28, 1986 which generally provides that the Board may delegate its authority in the adoption of certain employee benefit plan amendments to certain designated Executive Officers; filed as Exhibit 4.12 to the Company’s 1991 10-K.
|
4.10a*
|
-
|
Company Board of Directors’ Resolutions dated March 27, 2003, updating authority delegated pursuant to August 28, 1986 Laclede Gas Company resolutions; filed as Exhibit 4.19(a) to the Company’s Form 10-K for the year ended September 30, 2003.
|
10.01*
|
-
|
Laclede Incentive Compensation Plan, amended and restated effective as of January 1, 2005; filed as Exhibit 10.3 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008.
|
10.02*
|
-
|
Laclede Incentive Compensation Plan II, effective as of January 1, 2005; filed as Exhibit 10.4 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008.
|
10.03*
|
-
|
Senior Officers’ Life Insurance Program of Laclede, as amended; filed as Exhibit 10.03 to the Company’s 1990 10-K.
|
10.03a*
|
-
|
Certified copy of resolutions of Laclede’s Board of Directors adopted on June 27, 1991 amending the Senior Officers’ Life Insurance Program; filed as Exhibit 10.01 to the Company’s 10-Q for the fiscal quarter ended June 30, 1991.
|
10.03b*
|
-
|
Certified copy of resolutions of Laclede’s Board of Directors adopted on January 28, 1993 amending the Senior Officers’ Life Insurance Program; filed as Exhibit 10.03 to the Company’s 10-Q for the fiscal quarter ended March 31, 1993.
|
INDEX TO EXHIBITS
|
||
Exhibit
|
||
No.
|
||
10.04*
|
-
|
Restated Laclede Gas Company Supplemental Retirement Benefit Plan, as amended and restated effective as of November 1, 2005; filed as Exhibit 10.06 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008.
|
10.05*
|
-
|
Amended and Restated Storage Service Agreement For Rate Schedule FSS, Contract #3147 between Centerpoint Energy-Mississippi River Transmission Corporation (MRT) and Laclede dated March 18, 2008; filed as Exhibit 10.5 to the Company’s 10-Q for the fiscal quarter ended March 31, 2008.
|
10.05a*
|
-
|
Amended and Restated Transportation Service Agreement for Rate Schedule FTS, Contract #3310 between Laclede and MRT dated March 18, 2008; filed as Exhibit 10.6 to the Company’s 10-Q for the fiscal quarter ended March 31, 2008.
|
10.05b*
|
-
|
Amended and Restated Transportation Service Agreement for Rate Schedule FTS, Contract #3311, between Laclede and MRT dated March 18, 2008; filed as Exhibit 10.7 to the Company’s 10-Q for the fiscal quarter ended March 31, 2008.
|
10.06*
|
-
|
Laclede Supplemental Retirement Benefit Plan II, effective as of January 1, 2005; filed as Exhibit 10.7 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008.
|
10.07*
|
-
|
Salient Features of the Laclede Gas Company Deferred Income Plan for Directors and Selected Executives, including amendments adopted by the Board of Directors on July 26, 1990; filed as Exhibit 10.12 to the Company’s 1991 10-K.
|
10.07a*
|
-
|
Amendment to Laclede’s Deferred Income Plan for Directors and Selected Executives, adopted by the Board of Directors on August 27, 1992; filed as Exhibit 10.12a to the Company’s 1992 10-K.
|
10.08*
|
-
|
Form of Indemnification Agreement between Laclede and its Directors and Officers; filed as Exhibit 10.13 to the Company’s 1990 10-K.
|
10.09*
|
-
|
The Laclede Group Management Continuity Protection Plan, effective as of January 1, 2005; filed as Exhibit 10.5 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008.
|
10.09a*
|
-
|
Form of Management Continuity Protection Agreement; Filed as Exhibit 10.05a to the Company’s 10-Q for the fiscal quarter ended December 31, 2008.
|
10.10*
|
-
|
Salient Features of the Laclede Gas Company Deferred Income Plan II for Directors and Selected Executives (as amended and restated effective as of January 1, 2005); filed as Exhibit 10.1 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008.
|
10.11*
|
-
|
Salient Features of the Company’s Deferred Income Plan for Directors and Selected Executives (effective as of January 1, 2005); filed as Exhibit 10.2 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008.
|
10.12*
|
-
|
Loan agreement with Laclede Gas Company dated July 18, 2011 with several banks, including Wells Fargo Bank, National Association as administrative agent, U. S. Bank National Association as lead arranger, and JPMorgan Chase Bank, N. A. as documentation agent; filed as Exhibit 10.4 to the Utility’s Form 10-Q for the fiscal quarter ended June 30, 2011.
|
INDEX TO EXHIBITS
|
||
Exhibit
|
||
No.
|
||
10.13*
|
-
|
The Laclede Group, Inc. 2002 Equity Incentive Plan; filed as Exhibit 10.22 to the Company’s Form 10-K for the year ended September 30, 2002.
|
10.13a*
|
-
|
Form of Non-Qualified Stock Option Award Agreement with Mandatory Retirement Provisions; filed as Exhibit 10.1 to the Company’s Form 8-K filed November 5, 2004.
|
10.13b*
|
-
|
Form of Non-Qualified Stock Option Award Agreement without Mandatory Retirement Provisions; filed as Exhibit 10.2 to the Company’s Form 8-K filed November 5, 2004.
|
10.14*
|
-
|
Lease between Laclede Gas Company, as Lessee and First National Bank in St. Louis, Trustee, as Lessor; filed as Exhibit 10.23 to the Company’s Form 10-K for the fiscal year ended September 30, 2002.
|
10.15*
|
-
|
Automated Meter Reading Services Agreement executed March 11, 2005; filed as Exhibit 10.1 to the Company’s Form 10-Q for the fiscal quarter ended March 31, 2005. Confidential portions of this exhibit have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.
|
10.16*
|
-
|
Form of Restricted Stock Award Agreement filed as Exhibit 10.8 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008.
|
10.16a*
|
-
|
Form of Performance Contingent Restricted Stock Award Agreement; filed as Exhibit 10.2 to the Company’s 10-Q for the fiscal quarter ended December 31, 2009.
|
10.16b*
|
-
|
Form of Performance Contingent Restricted Stock Unit Award Agreement; filed as Exhibit 10.1 to the Company’s 10-Q for the fiscal quarter ended December 31, 2011.
|
10.17*
|
-
|
The Laclede Group 2011 Management Continuity Protection Plan; filed as Exhibit 10.25 to the Company’s Form 10-K for the fiscal year ended September 30, 2010.
|
10.17a*
|
-
|
Form of Agreement Under The Laclede Group 2011 Management Continuity Protection Plan; filed as Exhibit 10.25a to the Company’s Form 10-K for the fiscal year ended September 30, 2010.
|
-
|
Bond Purchase Agreement between Laclede Gas Company and certain institutional purchasers effective August 3, 2012.
|
|
-
|
Laclede Gas Company Cash Balance Supplemental Retirement Benefit Plan, effective as of January 1, 2009.
|
|
-
|
Ratio of Earnings to Fixed Charges.
|
|
-
|
Consent of Independent Registered Public Accounting Firm.
|
|
-
|
Certificates under Rule 13a-14(a) of the CEO and CFO of Laclede Gas Company.
|
|
-
|
Section 1350 Certifications under Rule 13a-14(b) of the CEO and CFO of Laclede Gas Company.
|
INDEX TO EXHIBITS
|
||
Exhibit
|
||
No.
|
||
101.INS
|
-
|
XBRL Instance Document. (1)
|
101.SCH
|
-
|
XBRL Taxonomy Extension Schema. (1)
|
101.CAL
|
-
|
XBRL Taxonomy Extension Calculation Linkbase. (1)
|
101.DEF
|
-
|
XBRL Taxonomy Definition Linkbase. (1)
|
101.LAB
|
-
|
XBRL Taxonomy Extension Labels Linkbase. (1)
|
101.PRE
|
-
|
XBRL Taxonomy Extension Presentation Linkbase. (1)
|
(1)
|
Furnished, not filed
|
Attached as Exhibit 101 to this Annual Report are the following documents formatted in extensible business reporting language (XBRL): (i) Document and Entity Information; (ii) Statements of Income for the years ended September 30, 2012, 2011, and 2010; (iii) Statements of Comprehensive Income for the years ended September 30, 2012, 2011, and 2010; (iv) Statements of Common Shareholder’s Equity for the years ended September 30, 2012, 2011, and 2010; (v) Statements of Cash Flows for the years ended September 30, 2012, 2011, and 2010; (vi) Balance Sheets at September 30, 2012 and 2011; (vii) Statements of Capitalization at September 30, 2012 and 2011; (viii) Notes to the Financial Statements.
Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability. We also make available on our website the Interactive Data Files submitted as Exhibit 101 to this Annual Report.
|
Section | Heading | Page |
Section 1.
|
Authorization of Bonds
|
1
|
Section 2.
|
Sale and Purchase of Bonds
|
1
|
Section 3.
|
Closing
|
2
|
Section 4.
|
Conditions to Closing
|
2
|
|
Section 4.1.
|
Representations and Warranties
|
2
|
|
Section 4.2.
|
Performance; No Default
|
2
|
|
Section 4.3.
|
Compliance Certificates
|
3
|
|
Section 4.4.
|
Opinions of Counsel
|
3
|
|
Section 4.5.
|
Purchase Permitted by Applicable Law, Etc
|
3
|
|
Section 4.6.
|
Sale of Other Bonds
|
3
|
|
Section 4.7.
|
Payment of Special Counsel Fees
|
3
|
|
Section 4.8.
|
Private Placement Number
|
3
|
|
Section 4.9.
|
Changes in Corporate Structure
|
4
|
|
Section 4.10.
|
Funding Instructions
|
4
|
|
Section 4.11.
|
Additional Bond Requirements
|
4
|
|
Section 4.12.
|
Proceedings and Documents
|
4
|
Section 5.
|
Representations and Warranties of the Company
|
4
|
|
Section 5.1.
|
Organization; Power and Authority
|
4
|
|
Section 5.2.
|
Authorization, Etc
|
5
|
|
Section 5.3.
|
Disclosure
|
5
|
|
Section 5.4.
|
Organization and Ownership of Shares of Subsidiaries
|
5
|
|
Section 5.5.
|
Financial Statements; Material Liabilities
|
6
|
|
Section 5.6.
|
Compliance with Laws, Other Instruments, Etc
|
6
|
|
Section 5.7.
|
Governmental Authorizations, Etc
|
7
|
|
Section 5.8.
|
Litigation; Observance of Statutes and Orders
|
7
|
|
Section 5.9.
|
Taxes
|
7
|
|
Section 5.10.
|
Title to Property; Leases
|
7
|
|
Section 5.11.
|
Licenses, Permits, Etc
|
8
|
|
Section 5.12.
|
Compliance with ERISA
|
8
|
|
Section 5.13.
|
Private Offering by the Company
|
9
|
|
Section 5.14.
|
Use of Proceeds; Margin Regulations
|
9
|
|
Section 5.15.
|
Existing Indebtedness
|
9
|
|
Section 5.16.
|
Foreign Assets Control Regulations, Etc
|
10
|
|
Section 5.17.
|
Status under Certain Statutes
|
10
|
Section 6.
|
Representations of the Purchasers
|
10
|
|
Section 6.1.
|
Purchase for Investment
|
10
|
|
Section 6.2.
|
Source of Funds
|
11
|
Section 7.
|
Information as to Company
|
12
|
|
Section 7.1.
|
Financial and Business Information
|
12
|
|
Section 7.2.
|
Officer’s Certificate
|
15
|
|
Section 7.3.
|
Visitation
|
15
|
|
Section 7.4.
|
Compliance
|
16
|
Section 8.
|
Negative Covenants
|
16
|
|
Section 8.1.
|
Terrorism Sanctions Regulations
|
16
|
Section 9.
|
Registration; Exchange; Substitution of Bonds |
16
|
|
Section 9.1.
|
Registration of Bonds
|
16
|
|
Section 9.2.
|
Transfer and Exchange of Bonds
|
17
|
|
Section 9.3.
|
Replacement of Bonds
|
17
|
Section 10.
|
Electronic Transfer
|
17
|
|
Section 10.1.
|
Electronic Transfer
|
17
|
Section 11.
|
Expenses, Etc
|
17
|
|
Section 11.1.
|
Transaction Expenses
|
17
|
|
Section 11.2.
|
Survival
|
17
|
Section 12
|
Survival of Representations and Warranties; Entire Agreement
|
17
|
Section 13.
|
Amendment and Waiver
|
18
|
|
Section 13.1.
|
Requirements
|
18
|
|
Section 13.2.
|
Solicitation of Holders of Bonds
|
18
|
|
Section 13.3.
|
Binding Effect, Etc
|
19
|
|
Section 13.4.
|
Bonds Held by Company, Etc
|
19
|
Section 14.
|
Notices
|
19
|
Section 15.
|
Reproduction of Documents
|
20
|
Section 16.
|
Confidential Information
|
20
|
Section 17.
|
Substitution of Purchaser
|
21
|
Section 18.
|
Miscellaneous
|
22
|
|
Section 18.1.
|
Successors and Assigns
|
22
|
|
Section 18.2.
|
Accounting Terms
|
22
|
|
Section 18.3.
|
Severability
|
22
|
|
Section 18.4.
|
Construction, Etc
|
22
|
|
Section 18.5.
|
Counterparts
|
22
|
|
Section 18.6.
|
Governing Law
|
22
|
|
Section 18.7.
|
Waiver of Jury Trial
|
22
|
Schedule A | — | Information Relating to Purchasers |
Schedule B | — | Defined Terms |
Schedule 5.3 | — | Disclosure Materials |
Schedule 5.4
|
— | Subsidiaries of the Company and Ownership of Subsidiary Stock |
Schedule 5.5 | — | Financial Statements |
Schedule 5.15 | — | Existing Indebtedness |
Exhibit 1 | — | Form of Thirty-First Supplemental Indenture |
Exhibit 4.4(a) | — | Form of Opinion of Special Counsel for the Company |
Exhibit 4.4(b) | — | Form of Opinion of Special Counsel for the Purchasers |
Section 1.
|
Authorization of Bonds.
|
Section 2.
|
Sale and Purchase of Bonds.
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Section 3.
|
Closing.
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Section 5.
|
Representations and Warranties of the Company.
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Section 6.
|
Representations of the Purchasers.
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Section 7.
|
Information as to Company.
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Section 8.
|
Negative Covenants.
|
Section 9.
|
Registration; Exchange; Substitution of Bonds.
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Section 10.
|
Electronic Transfer.
|
Section 11.
|
Expenses, Etc.
|
Section 12
|
Survival of Representations and Warranties; Entire Agreement.
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Section 13.
|
Amendment and Waiver.
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Section 14.
|
Notices.
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Section 15.
|
Reproduction of Documents.
|
Section 16.
|
Confidential Information.
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Section 17.
|
Substitution of Purchaser.
|
Laclede Gas Company
|
Bond Purchase Agreement
|
Laclede Gas Company
|
Bond Purchase Agreement
|
|
Very truly yours,
|
|
Laclede Gas Company
|
By
|
/s/ Lynn D. Rawlings
|
|
Name: Lynn D. Rawlings
|
||
Title: Treasurer and Assistant Secretary
|
Laclede Gas Company
|
Bond Purchase Agreement
|
|
The Northwestern Mutual Life Insurance Company
|
|
The Northwestern Mutual Life Insurance Company for its Group Annuity Separate Account
|
|
Northwestern Long Term Care Insurance Company
|
By
|
/s/ Howard Stern
|
|
Name: Howard Stern
|
||
Title: Its Authorized Representative
|
Laclede Gas Company
|
Bond Purchase Agreement
|
|
MetLife Alico Life Insurance K.K.
|
|
By: MetLife Investment Advisors Company, LLC, its Investment Manager
|
By
|
/s/ John A. Tanyeri
|
|
Name: John A. Tanyeri
|
||
Title: Director
|
Laclede Gas Company
|
Bond Purchase Agreement
|
|
Great-West Life & Annuity Insurance Company
|
By
|
/s/ Tad Anderson
|
|
Name: Tad Anderson
|
||
Title: Director
|
By
|
/s/ James Lowery
|
|
Name: James Lowery
|
||
Title: Assistant Vice President, Investments
|
Laclede Gas Company
|
Bond Purchase Agreement
|
|
American United Life Insurance Company
|
By
|
/s/ David M. Weisenburger
|
|
Name: David M. Weisenburger
|
||
Title: VP, Fixed Income Securities
|
|
The State Life Insurance Company
|
|
By: American United Life Insurance Company
|
|
Its: Agent
|
By
|
/s/ David M. Weisenburger
|
|
Name: David M. Weisenburger
|
||
Title: VP, Fixed Income Securities
|
|
Pioneer Mutual Life Insurance Company
|
|
By: American United Life Insurance Company
|
|
Its: Agent
|
By
|
/s/ David M. Weisenburger
|
|
Name: David M. Weisenburger
|
||
Title: VP, Fixed Income Securities
|
Laclede Gas Company
|
Bond Purchase Agreement
|
|
Woodmen of the World Life Insurance Society
|
By
|
/s/ Robert T. Maher
|
|
Name: Robert T. Maher
|
||
Title: Vice President Investment
|
By
|
/s/ Shawn Bengtson
|
|
Name: Shawn Bengtson
|
||
Title: Director Securities
|
Name of and Address
of Purchaser
|
Series of Bonds to Be Purchased
|
Principal
Amount of Bonds to Be Purchased
|
The Northwestern Mutual Life Insurance Company
720 East Wisconsin Avenue
Milwaukee, WI 53202
Attention: Securities Department
Email: privateinvest@northwesternmutual.com
|
Series A
Series B
|
$30,500,000
$5,000,000
|
Name of and Address
of Purchaser
|
Series of Bonds to Be Purchased
|
Principal
Amount of Bonds to Be Purchased
|
The Northwestern Mutual Life Insurance Company for its Group Annuity Separate Account
720 East Wisconsin Avenue
Milwaukee, WI 53202
Attention: Securities Department
Email: privateinvest@northwesternmutual.com
|
Series A
|
$1,500,000
|
Name of and Address
of Purchaser
|
Series of Bonds to Be Purchased
|
Principal
Amount of Bonds to Be Purchased
|
Northwestern Long Term Care Insurance Company
720 East Wisconsin Avenue
Milwaukee, WI 53202
Attention: Securities Department
Email: privateinvest@northwesternmutual.com
|
Series B
|
$3,000,000
|
Name of and Address
of Purchaser
|
Series of Bonds to Be Purchased
|
Principal
Amount of Bonds to Be Purchased
|
MetLife Alico Life Insurance K.K.
4-1-3, Taihei, Sumida-ku
Tokyo, 130-0012 JAPAN
|
Series A
Series B
|
$13,000,000
$13,000,000
|
|
Payments:
|
(1)
|
All scheduled payments of principal and interest by wire transfer of immediately available funds to:
|
Bank Name:
|
Citibank New York
|
111 Wall Street, New York, New York 10005 (USA)
|
|
ABA Routing #:
|
021000089
|
Acct No./DDA:
|
30872002
|
Acct Name:
|
METLIFE ALICO PP NON-GGA
|
Ref:
|
Laclede Gas Co. 3.00% Due March 15, 2023 as to Series A or
|
Laclede Gas Co. 3.40% Due March 15, 2028 as to Series B
|
|
Notices:
|
Name of and Address
of Purchaser
|
Series of Bonds to Be Purchased
|
Principal
Amount of Bonds to Be Purchased
|
Great-West Life & Annuity Insurance
Company
8515 East Orchard Road, 3T2
Greenwood Village, Colorado 80111-5002
Attention: Investments Division
Fax Number: (303) 737-6193
|
Series B
|
$12,000,000
|
The Bank of New York Mellon
|
||
ABA No.: 021-000-018
|
||
BNF Account No.: IOC566
|
||
Further Credit to : Great-West Life/Acct No. 640935
|
||
Reference:
|
1)
|
3.40% First Mortgage Bonds due March 15, 2028, of
|
Laclede Gas Company (PPN: 505588 A@2),
|
||
2)
|
allocation of payment between principal and interest, and
|
|
3)
|
confirmation of principal balance
|
Name of and Address
of Purchaser
|
Series of Bonds to Be Purchased
|
Principal
Amount of Bonds to Be Purchased
|
American United Life Insurance Company
Attention: Michael I. Bullock, Securities Department
One American Square, Suite 305W
Post Office Box 368
Indianapolis, Indiana 46206
|
Series B
|
$7,000,000
|
Name of and Address
of Purchaser
|
Series of Bonds to Be Purchased
|
Principal
Amount of Bonds to Be Purchased
|
The State Life Insurance Company
c/o American United Life Insurance Company
Attention: Michael I. Bullock, Securities Department
One American Square, Suite 305W
Post Office Box 368
Indianapolis, Indiana 46206
|
Series B
|
$4,500,000
|
Name of and Address
of Purchaser
|
Series of Bonds to Be Purchased
|
Principal
Amount of Bonds to Be Purchased
|
Pioneer Mutual Life Insurance Company
c/o American United Life Insurance Company
Attention: Michael I. Bullock, Securities Department
One American Square, Suite 305W
Post Office Box 368
Indianapolis, Indiana 46206
|
Series B
|
$500,000
|
PIONEER MUTUAL LIFE INSURANCE COMPANY
|
|
Bank of New York
|
|
ABA #021000018
|
|
Credit Account: GLA111566
|
|
Account Name: Pioneer Mutual Life Insurance Company
|
|
Account #:186709
|
|
P & I Breakdown: ________________
|
|
Re: PPN 505588 A@2 / Laclede Gas Company
|
Name of and Address
of Purchaser
|
Series of Bonds to Be Purchased
|
Principal
Amount of Bonds to Be Purchased
|
Woodmen of the World Life Insurance Society
1700 Farnam Street
Omaha, Nebraska 68102
Attention: Securities Department
|
Series A
|
$10,000,000
|
|
Subsidiaries of the Company and Ownership of Subsidiary Stock
|
Laclede Gas Company
|
Annual Report on form 10-K for the year ended September 30, 2011
|
Quarterly Report on form 10-Q for the quarter ended December 31, 2011
|
|
Quarterly Report on form 10-Q for the quarter ended March 31, 2012
|
Amount Outstanding
|
Coupon
|
Maturity
|
Call Provisions
|
$25,000,000
|
6.50%
|
10/15/12
|
none
|
$50,000,000
|
5.50%
|
05/01/19
|
make whole
|
$25,000,000
|
7.00%
|
06/01/29
|
none
|
$30,000,000
|
7.90%
|
09/15/30
|
make whole
|
$100,000,000
|
6.00%
|
05/01/34
|
make whole
|
$55,000,000
|
6.15%
|
06/01/36
|
make whole
|
$80,000,000
|
6.35%
|
10/15/38
|
at par on or after 10/15/13
|
Page
|
||
Parties
|
1
|
|
Recitals
|
1
|
|
Previous Indentures
|
1
|
|
Identity of the Company
|
9
|
|
Identity of Trustee
|
10
|
|
Outstanding Bonds
|
10
|
|
Form of Fully Registered Bond of 2023 Series
|
11
|
|
Form of Fully Registered Bond of 2028 Series
|
15
|
|
Form of Trustee's Certificate of Authentication
|
19
|
|
Compliance with legal requirements
|
19
|
|
Granting Clause
|
19
|
|
Exception Clause
|
20
|
|
Habendum Clause
|
21
|
|
Exceptions, Reservations, etc.
|
21
|
|
Grant in trust
|
21
|
|
Covenant Clause
|
21
|
|
SECTION 1.1
|
Terms Defined by Reference
|
21
|
|
SECTION 1.2
|
Business Day
|
22
|
|
SECTION 1.3
|
Trustee
|
22
|
|
SECTION 1.4
|
Original Indenture
|
22
|
|
SECTION 1.5
|
First Supplemental Indenture
|
22
|
|
SECTION 1.6
|
Second Supplemental Indenture
|
22
|
|
SECTION 1.7
|
Third Supplemental Indenture
|
22
|
|
SECTION 1.8
|
Fourth Supplemental Indenture
|
22
|
|
SECTION 1.9
|
Fifth Supplemental Indenture
|
22
|
|
SECTION 1.10
|
Sixth Supplemental Indenture
|
22
|
|
SECTION 1.11
|
Seventh Supplemental Indenture
|
22
|
|
SECTION 1.12
|
Eighth Supplemental Indenture
|
23
|
|
SECTION 1.13
|
Ninth Supplemental Indenture
|
23
|
|
SECTION 1.14
|
Tenth Supplemental Indenture
|
23
|
|
SECTION 1.15
|
Eleventh Supplemental Indenture
|
23
|
|
SECTION 1.16
|
Twelfth Supplemental Indenture
|
23
|
|
SECTION 1.17
|
Thirteenth Supplemental Indenture
|
23
|
|
SECTION 1.18
|
Fourteenth Supplemental Indenture
|
23
|
|
SECTION 1.19
|
Fifteenth Supplemental Indenture
|
23
|
|
SECTION 1.20
|
Sixteenth Supplemental Indenture
|
23
|
|
SECTION 1.21
|
Seventeenth Supplemental Indenture
|
23
|
|
SECTION 1.22
|
Eighteenth Supplemental Indenture
|
23
|
|
SECTION 1.23
|
Nineteenth Supplemental Indenture
|
23
|
|
SECTION 1.24
|
Twentieth Supplemental Indenture
|
24
|
|
SECTION 1.25
|
Twenty-First Supplemental Indenture
|
24
|
|
SECTION 1.26
|
Twenty-Second Supplemental Indenture
|
24
|
|
SECTION 1.27
|
Twenty-Third Supplemental Indenture
|
24
|
|
SECTION 1.28
|
Twenty-Fourth Supplemental Indenture
|
24
|
|
SECTION 1.29
|
Twenty-Fifth Supplemental Indenture
|
24
|
|
SECTION 1.30
|
Twenty-Sixth Supplemental Indenture
|
24
|
|
SECTION 1.31
|
Twenty-Seventh Supplemental Indenture
|
24
|
|
SECTION 1.32
|
Twenty-Eighth Supplemental Indenture
|
24
|
|
SECTION 1.33
|
Twenty-Ninth Supplemental Indenture
|
24
|
|
SECTION 1.34
|
Thirtieth Supplemental Indenture
|
24
|
|
SECTION 1.35
|
Mortgage
|
24
|
|
SECTION 1.36
|
Hereof, Hereunder, etc.
|
25
|
|
SECTION 1.37
|
2023 Series and 2028 Series
|
25
|
|
SECTION 2.1
|
Creation and principal amount of the 2023 Series
|
25
|
|
SECTION 2.2
|
Date of Bonds
|
25
|
|
SECTION 2.3
|
Denominations, etc.
|
25
|
|
SECTION 2.4
|
Exchange of Bonds
|
25
|
|
SECTION 2.5
|
Registration of Bonds
|
26
|
|
SECTION 2.6
|
Temporary Bonds
|
26
|
|
SECTION 2.7
|
Payment of Defaulted Interest
|
26
|
|
SECTION 2.8
|
Transfers or Exchanges of Bonds called for redemption
|
26
|
|
SECTION 2.9
|
Restrictive Legend
|
26
|
|
SECTION 3.1
|
Circumstances in Which Redeemable
|
27
|
|
SECTION 3.2
|
Additional Circumstances in Which Redeemable
|
27
|
|
SECTION 3.3
|
Purchase of Bonds
|
29
|
|
SECTION 3.4
|
Notice of Intention to Redeem
|
29
|
|
SECTION 3.5
|
No Other Redemptions
|
29
|
|
SECTION 4.1
|
Creation and Principal Amount of the 2028 Series
|
29
|
|
SECTION 4.2
|
Date of Bonds
|
29
|
|
SECTION 4.3
|
Denominations, etc.
|
29
|
|
SECTION 4.4
|
Exchange of Bonds
|
30
|
|
SECTION 4.5
|
Registration of Bonds
|
30
|
|
SECTION 4.6
|
Temporary Bonds
|
30
|
|
SECTION 4.7
|
Payment of Defaulted Interest
|
30
|
|
SECTION 4.8
|
Transfers or Exchanges of Bonds Called for Redemption
|
31
|
|
SECTION 4.9
|
Restrictive Legend
|
31
|
|
SECTION 5.1
|
Circumstances in Which Redeemable
|
31
|
|
SECTION 5.2
|
Additional Circumstances in Which Redeemable
|
31
|
|
SECTION 5.3
|
Purchase of Bonds
|
33
|
|
SECTION 5.4
|
Notice of Intention to Redeem
|
33
|
|
SECTION 5.5
|
No Other Redemptions
|
33
|
|
SECTION 6.1
|
Restrictions as to Dividends
|
33
|
|
SECTION 6.2
|
Earnings Requirements for Additional Bonds
|
34
|
|
SECTION 6.3
|
Postponement of Interest
|
36
|
|
SECTION 6.4
|
Information as to Company
|
36
|
|
SECTION 7.1
|
Company’s Reservation of Rights
|
36
|
|
SECTION 8.1
|
Provisions Required by Trust Indenture Act of 1939 to Control |
38
|
|
SECTION 8.2
|
Acceptance of Trust
|
38
|
|
SECTION 8.3
|
This Indenture Part of Original Indenture
|
38
|
|
SECTION 8.4
|
Execution in Any Number of Counterparts
|
38
|
|
SECTION 8.5
|
Date of Execution
|
38
|
No.____________ | $_________________ |
Dated
|
LACLEDE GAS COMPANY
|
||
By
|
|||
President
|
|||
ATTEST:
|
|||
Secretary
|
|||
No.____________ | $_________________ |
Dated
|
LACLEDE GAS COMPANY
|
||
By
|
|||
President
|
|||
ATTEST:
|
|||
Secretary
|
|||
UMB BANK & TRUST, N.A.
|
|||
Trustee
|
|||
By
|
|||
Authorized Signatory
|
LACLEDE GAS COMPANY
|
|||
By
|
|||
President
|
|||
ATTEST:
|
|||
Secretary
|
|||
(SEAL)
|
|||
UMB BANK & TRUST, N.A.
|
|||
Trustee
|
|||
By
|
|||
Sr. Vice President
|
|||
ATTEST:
|
|||
Assistant Secretary
|
State of Missouri
|
)
|
|
) ss.
|
||
City of St. Louis
|
)
|
Notary Public
|
|
State of Missouri
|
State of Missouri
|
)
|
|
) ss.
|
||
City of St. Louis
|
)
|
Notary Public
|
|
State of Missouri
|
|
Re:
|
Bond Purchase Agreement, dated August 3, 2012, by and among each of the purchasers named in Schedule A thereto and Laclede Gas Company
|
|
Very truly yours,
|
|
***DRAFT***
|
To the Purchasers listed on Schedule 1
|
|
Re:
|
Bond Purchase Agreement, dated August 3, 2012, by and among each of the purchasers listed on Schedule A thereto and Laclede Gas Company
|
A.
|
We express no opinion as to the laws of any jurisdiction other than the Included Laws. We have made no special investigation or review of any published constitutions, treaties, laws, rules or regulations or judicial or administrative decisions (“Laws”), other than a
|
B.
|
This letter and the matters addressed herein are as of the date hereof or such earlier date as is specified herein, and we undertake no, and disclaim any, obligation to advise you of any change in any matter set forth herein, whether based on a change in the law, a change in any fact relating to the Company or any other person or entity, or any other circumstance. This letter is limited to the matters expressly stated herein and no opinions are to be inferred or may be implied beyond the opinions expressly set forth herein.
|
C.
|
We assume that no fraud, dishonesty, forgery, coercion, duress or breach of fiduciary duty exists or will exist with respect to any of the matters relevant to the opinions expressed herein.
|
D.
|
We express no opinion as to the subsequent resale of any Bonds.
|
E.
|
This letter is solely for your benefit and the benefit of your respective successors and permitted assigns in accordance with the Bond Purchase Agreement, and no other person or entity shall be entitled to rely upon this letter. Without our prior written consent, this letter may not be quoted in whole or in part or otherwise referred to in any document and may not be furnished or otherwise disclosed to or used by any other person or entity, except for (i) delivery of copies hereof to counsel for the addressees hereof; (ii) inclusion of copies hereof in a closing file; and (iii) delivery of copies hereof to regulatory agencies having jurisdiction over you (including the National Association of Insurance Commissioners).
|
ARTICLE I – GENERAL | 1 |
|
1.1
|
Background and Purpose
|
1
|
|
1.2
|
Effective Date
|
2
|
|
1.3
|
Type of Plan
|
2
|
ARTICLE II – ADMINISTRATION BY RETIREMENT BOARD | 2 |
|
2.1
|
Board
|
2
|
|
2.2
|
Standard of Review
|
2
|
|
2.3
|
Rules of Construction
|
3
|
ARTICLE III – ELIGIBILITY | 3 |
|
3.1
|
Persons Eligible to Receive Benefits
|
3
|
|
3.2
|
Participant
|
3
|
|
3.3
|
Beneficiary
|
3
|
ARTICLE IV – SUPPLEMENTAL BENEFIT | 3 |
|
4.1
|
Amount of Supplemental Benefit
|
4
|
|
4.2
|
Payment of Supplemental Benefit
|
4
|
|
4.3
|
Elective Forms of Benefit
|
5
|
|
4.4
|
Death Benefits
|
5
|
|
4.5
|
Actual date of payment
|
5
|
|
4.6
|
Specified Employee Payment Delay
|
6
|
|
4.7
|
Actuarial Equivalence
|
6
|
|
4.8
|
Obligation of the Company
|
6
|
|
4.9
|
Funding
|
7
|
ARTICLE V – AMENDMENT OR TERMINATION | 8 |
|
5.1
|
Amendment to Conform with Law
|
8
|
|
5.2
|
Other Amendments and Termination
|
8
|
|
5.3
|
Form of Amendment or Termination
|
8
|
|
5.4
|
Notice of Amendment or Termination
|
8
|
ARTICLE VI – MISCELLANEOUS | 8 |
|
6.1
|
No Guarantee of Employment, etc.
|
9
|
|
6.2
|
Merger, Consolidation, etc.
|
9
|
|
6.3
|
Inalienability
|
9
|
|
6.4
|
Incompetency
|
9
|
|
6.5
|
Contest of Decision on Appeal
|
9
|
|
6.6
|
Controlling Law
|
9
|
|
6.7
|
Severability
|
9
|
|
6.8
|
Limitations on Provisions
|
10
|
|
6.9
|
Gender and Number
|
10
|
(i)
|
to the joint annuitant, if any, elected and designated, respectively, by the Participant; or
|
(ii)
|
if a single life annuity, payments cease at death of the Participant.
|
4.8
|
Funding
|
LACLEDE GAS COMPANY
|
||||||||||||||||
SCHEDULE OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
|
||||||||||||||||
Fiscal Year Ended September 30,
|
||||||||||||||||
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||
(Thousands of Dollars)
|
||||||||||||||||
Income before interest
charges and income taxes
|
$
|
93,515
|
$
|
102,317
|
$
|
84,727
|
$
|
77,395
|
$
|
84,684
|
||||||
Add: One third of applicable
rentals charged to operating
expense (which approximates
the interest factor)
|
1,569
|
1,780
|
1,820
|
1,833
|
1,691
|
|||||||||||
Total Earnings
|
$
|
95,084
|
$
|
104,097
|
$
|
86,547
|
$
|
79,228
|
$
|
86,375
|
||||||
Interest on long-term debt
|
$
|
22,958
|
$
|
23,161
|
$
|
24,583
|
$
|
24,583
|
$
|
19,851
|
||||||
Other Interest
|
2,198
|
2,383
|
2,269
|
5,770
|
10,363
|
|||||||||||
Add: One third of applicable
rentals charged to operating
expense (which approximates
the interest factor)
|
1,569
|
1,780
|
1,820
|
1,833
|
1,691
|
|||||||||||
Total Fixed Charges
|
$
|
26,725
|
$
|
27,324
|
$
|
28,672
|
$
|
32,186
|
$
|
31,905
|
||||||
Ratio of Earnings to Fixed Charges
|
3.56
|
3.81
|
3.02
|
2.46
|
2.71
|
|||||||||||
1.
|
I have reviewed this annual report on Form 10-K of Laclede Gas Company;
|
||
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
||
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
||
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
||
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
||
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
||
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
||
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
||
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
||
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
||
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 19, 2012
|
Signature:
|
/s/ Suzanne Sitherwood
|
||
Suzanne Sitherwood
|
|||||
Chairman of the Board and
|
|||||
Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of Laclede Gas Company;
|
||
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
||
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
||
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
||
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
||
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
||
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
||
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
||
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
||
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
||
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 19, 2012
|
Signature:
|
/s/ Steven P. Rasche
|
||
Steven P. Rasche
|
|||||
Chief Financial Officer
|
|||||
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, I, Suzanne Sitherwood, Chairman of the Board and Chief Executive Officer of Laclede Gas Company, hereby certify that
|
|||
(a)
|
To the best of my knowledge, the accompanying report on Form 10-K for the year ended September 30, 2012 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and
|
||
(b)
|
To the best of my knowledge, the information contained in the accompanying report on Form 10-K for the year ended September 30, 2012 fairly presents, in all material respects, the financial condition and results of operations of Laclede Gas Company.
|
Date:
|
November 19, 2012
|
/s/ Suzanne Sitherwood
|
|||
Suzanne Sitherwood
|
|||||
Chairman of the Board and
|
|||||
Chief Executive Officer
|
|||||
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, I, Steven P. Rasche, Chief Financial Officer of Laclede Gas Company, hereby certify that
|
|||
(a)
|
To the best of my knowledge, the accompanying report on Form 10-K for the year ended September 30, 2012 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and
|
||
(b)
|
To the best of my knowledge, the information contained in the accompanying report on Form 10-K for the year ended September 30, 2012 fairly presents, in all material respects, the financial condition and results of operations of Laclede Gas Company.
|
Date:
|
November 19, 2012
|
/s/ Steven P. Rasche
|
|||
Steven P. Rasche
|
|||||
Chief Financial Officer
|
|||||
LONG-TERM DEBT (Details) (USD $)
|
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2010
|
|
Maturities on long-term debt [Abstract] | |||
2013 | $ 25,000,000 | ||
2014 | 0 | ||
2015 | 0 | ||
2016 | 0 | ||
2017 | 0 | ||
Maturity of first mortgage bonds | 0 | 25,000,000 | 0 |
Debt Instrument [Line Items] | |||
Fixed-rate long-term debt amount | 365,000,000 | ||
SEC effective shelf registration Form S-3 for issuance of bonds, unsecured debt, and preferred stock - maximum available | 350,000,000 | ||
MoPSC authorized debt issuance through June 30, 2013 - maximum available | 518,000,000 | ||
MoPSC authorized debt issuance - remaining available | 473,100,000 | ||
Preferred stock shares authorized (in shares) | 1,480,000 | 1,480,000 | |
No Call Options [Member]
|
|||
Debt Instrument [Line Items] | |||
Fixed-rate long-term debt amount | 50,000,000 | ||
Make-whole Call Options [Member]
|
|||
Debt Instrument [Line Items] | |||
Fixed-rate long-term debt amount | 235,000,000 | ||
Callable at par in 2013 [Member]
|
|||
Debt Instrument [Line Items] | |||
Fixed-rate long-term debt amount | $ 80,000,000 |
OTHER INCOME AND INCOME (DEDUCTIONS) NET (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Other Income and (Income Deductions) -- Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and (Income Deductions) by Component |
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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Cost | The net periodic pension costs include the following components:
Net periodic postretirement benefit costs consisted of the following components:
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Other changes in plan assets and benefit obligations recognized in other comprehensive income | Other changes in plan assets and pension benefit obligations recognized in other comprehensive income include the following:
Other changes in plan assets and postretirement benefit obligations recognized in other comprehensive income include the following:
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Reconciliation of the beginning and Ending Balances of Benefit Obligation | The following table sets forth the reconciliation of the beginning and ending balances of the pension benefit obligation at September 30:
The following table sets forth the reconciliation of the beginning and ending balances of the postretirement benefit obligation at September 30:
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Fair Value of Plan Assets | The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets at September 30:
The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets at September 30:
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Amounts recognized in balance sheets | The following table sets forth the amounts recognized in the Balance Sheets at September 30:
The following table sets forth the amounts recognized in the Balance Sheets at September 30:
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Pre-tax amounts amortized from accumulated other comprehensive income into net periodic cost | At September 30, 2012, the following pre-tax amounts are expected to be amortized from accumulated other comprehensive income into net periodic pension cost during fiscal year 2013:
At September 30, 2012, the following pre-tax amounts are expected to be amortized from accumulated other comprehensive income into net periodic postretirement benefit cost during fiscal year 2013:
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Assumptions used to calculate net periodic cost and benefit obligations. | The assumptions used to calculate net periodic pension costs are as follows:
The assumptions used to calculate the benefit obligations are as follows:
The assumptions used to calculate net periodic postretirement benefit costs are as follows:
The assumptions used to calculate the accumulated postretirement benefit obligations are as follows:
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Projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for plans that have projected benefit obligation and accumulated benefit obligation in excess of plan assets | Following are the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for plans that have a projected benefit obligation and an accumulated benefit obligation in excess of plan assets:
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Targeted and actual plan assets by category | Following are the targeted and actual plan assets by category as of September 30 of each year:
*Other investments in 2011 and 2012 consist of cash equivalents. The relatively large cash position at September 30, 2012 was due to a transition taking place between investment managers and was invested in debt securities in a matter of days. Following are the targeted and actual plan assets by category as of September 30 of each year:
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Expected benefit payments for the succeeding five fiscal years | Following are expected pension benefit payments for the succeeding five fiscal years, and in aggregate for the five years thereafter:
Following are expected postretirement benefit payments for the succeeding five fiscal years, and in aggregate for the five years thereafter:
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Assumed medical cost trend rates and effect of an assumed 1% changed in assumed medical cost trend. | The assumed medical cost trend rates at September 30 are as follows:
The following table presents the effect of an assumed 1% change in the assumed medical cost trend rate:
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Fair value measurements of plan assets | The table below categorizes the fair value measurements of Laclede Gas’ pension plan assets:
The table below categorizes the fair value measurements of Laclede Gas’ postretirement plan assets:
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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS Part 11 (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |
---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS [Abstract] | ||
Medical cost trend assumed for next year | 7.00% | 7.50% |
Rate to which the medical cost trend rate is assumed to decline (the ultimate medical cost trend rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend | 2017 | 2017 |
Assumed 1% change in the assumed medical cost trend rate [Abstract] | ||
Effect of 1% increase on net periodic postretirement benefit cost | $ 1,580 | |
Effect of 1% decrease on net periodic postretirement benefit cost | (1,440) | |
Effect of 1% increase on accumulated postretirement benefit obligation | 8,240 | |
Effect of 1% decrease on accumulated postretirement benefit obligation | $ (7,670) |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS Part 3 (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2010
|
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Pension Plans [Member]
|
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Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 384,163 | $ 398,360 | |
Service cost | 9,203 | 9,553 | 8,841 |
Interest cost | 19,358 | 18,819 | 19,729 |
Plan amendments | 0 | 0 | |
Actuarial (gain) loss | 52,161 | (12,625) | |
Settlement loss | 14,348 | 746 | |
Gross benefits paid | (67,062) | (30,690) | |
Benefit obligation at end of year | 412,171 | 384,163 | 398,360 |
Accumulated benefit obligation at end of year | 353,061 | 329,594 | |
Postretirement Benefit [Member]
|
|||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 103,991 | 97,979 | |
Service cost | 8,060 | 7,676 | 6,442 |
Interest cost | 5,521 | 4,843 | 4,515 |
Actuarial (gain) loss | 15,895 | (1,159) | |
Gross benefits paid | (6,250) | (5,348) | |
Benefit obligation at end of year | $ 127,217 | $ 103,991 | $ 97,979 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Part 2 (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |
---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Asset retirement obligations [Roll forward] | ||
Asset retirement obligations, beginning of year | $ 27,486 | $ 25,829 |
Liabilities incurred during the period | 619 | 687 |
Liabilities settled during the period | (601) | (574) |
Accretion | 1,636 | 1,544 |
Revisions in estimated cash flows | 10,986 | 0 |
Asset retirement obligations, end of year | $ 40,126 | $ 27,486 |
INFORMATION BY OPERATING SEGMENT (Details) (USD $)
|
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2010
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2010
|
|
INFORMATION BY OPERATING SEGMENT [Abstract] | |||||||||||
Regulated Gas Distribution segment, population of service area | 2,200,000 | 2,200,000 | |||||||||
Number of service area counties | ten | ten | |||||||||
Operating Segment Information [Abstract] | |||||||||||
Total Operating Revenues | $ 98,976,000 | $ 117,771,000 | $ 298,897,000 | $ 251,983,000 | $ 97,031,000 | $ 169,479,000 | $ 388,375,000 | $ 277,443,000 | $ 767,627,000 | $ 932,328,000 | $ 874,624,000 |
Depreciation & amortization | 40,739,000 | 39,214,000 | 37,572,000 | ||||||||
Interest income | 1,230,000 | 1,057,000 | 1,493,000 | ||||||||
Interest charges | 25,156,000 | 25,544,000 | 26,852,000 | ||||||||
Income tax expense | 18,460,000 | 22,996,000 | 18,150,000 | ||||||||
Net economic earnings | 49,789,000 | 53,803,000 | 39,816,000 | ||||||||
Total assets | 1,760,152,000 | 1,643,046,000 | 1,760,152,000 | 1,643,046,000 | 1,658,452,000 | ||||||
After-tax earnings resulting from the non-regulated sale of propane inventory | 6,100,000 | 3,700,000 | |||||||||
Reconciliation of Net Economic Earnings to Net Income [Abstract] | |||||||||||
Total Net Economic Earnings above | 49,789,000 | 53,803,000 | 39,816,000 | ||||||||
Unrealized gain (loss) on energy-related derivative contracts, net of tax | 110,000 | (26,000) | (91,000) | ||||||||
Net Income | (2,353,000) | 4,630,000 | 25,925,000 | 21,697,000 | (5,443,000) | 11,533,000 | 26,232,000 | 21,455,000 | 49,899,000 | 53,777,000 | 39,725,000 |
Regulated Gas Distribution [Member]
|
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Operating Segment Information [Abstract] | |||||||||||
Total Operating Revenues | 764,651,000 | 913,190,000 | 864,297,000 | ||||||||
Depreciation & amortization | 40,739,000 | 39,214,000 | 37,572,000 | ||||||||
Interest income | 1,230,000 | 1,057,000 | 1,493,000 | ||||||||
Interest charges | 25,156,000 | 25,544,000 | 26,852,000 | ||||||||
Income tax expense | 17,393,000 | 18,694,000 | 15,842,000 | ||||||||
Net economic earnings | 48,089,000 | 46,952,000 | 36,141,000 | ||||||||
Total assets | 1,758,952,000 | 1,641,386,000 | 1,758,952,000 | 1,641,386,000 | 1,657,530,000 | ||||||
Capital expenditures | 106,734,000 | 67,304,000 | 56,234,000 | ||||||||
Reconciliation of Net Economic Earnings to Net Income [Abstract] | |||||||||||
Total Net Economic Earnings above | 48,089,000 | 46,952,000 | 36,141,000 | ||||||||
Non-Regulated Other [Member]
|
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Operating Segment Information [Abstract] | |||||||||||
Total Operating Revenues | 2,976,000 | 19,138,000 | 10,327,000 | ||||||||
Depreciation & amortization | 0 | 0 | 0 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest charges | 0 | 0 | 0 | ||||||||
Income tax expense | 1,067,000 | 4,302,000 | 2,308,000 | ||||||||
Net economic earnings | 1,700,000 | 6,851,000 | 3,675,000 | ||||||||
Total assets | 1,200,000 | 1,660,000 | 1,200,000 | 1,660,000 | 922,000 | ||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Reconciliation of Net Economic Earnings to Net Income [Abstract] | |||||||||||
Total Net Economic Earnings above | 1,700,000 | 6,851,000 | 3,675,000 | ||||||||
Adjustments & Eliminations [Member]
|
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Operating Segment Information [Abstract] | |||||||||||
Total Operating Revenues | 0 | 0 | 0 | ||||||||
Depreciation & amortization | 0 | 0 | 0 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest charges | 0 | 0 | 0 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Net economic earnings | 0 | 0 | 0 | ||||||||
Total assets | 0 | 0 | 0 | 0 | 0 | ||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Reconciliation of Net Economic Earnings to Net Income [Abstract] | |||||||||||
Total Net Economic Earnings above | $ 0 | $ 0 | $ 0 |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS Part 8 (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
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Sep. 30, 2011
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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS [Abstract] | ||
Projected benefit obligation | $ 412,171 | $ 384,163 |
Fair value of plan assets | 274,130 | 247,959 |
Accumulated benefit obligation | 353,061 | 329,594 |
Fair value of plan assets | $ 274,130 | $ 247,959 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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Sep. 30, 2012
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
BASIS OF PRESENTATION - In compliance with generally accepted accounting principles (GAAP), transactions between Laclede Gas and its affiliates as well as intercompany balances on Laclede Gas’ Balance Sheets have not been eliminated from the Laclede Gas financial statements. Transactions with associated companies include sales of natural gas from Laclede Gas to Laclede Energy Resources, Inc. (LER), sales of natural gas from LER to Laclede Gas, and transportation services provided by Laclede Pipeline Company to Laclede Gas. For fiscal years 2012, 2011, and 2010, sales of natural gas from Laclede Gas to LER were $1.2 million, $1.6 million, and $2.9 million, respectively. Sales of natural gas from LER to Laclede Gas during fiscal years 2012, 2011, and 2010 were $16.5 million, $24.3 million, and $23.7 million, respectively. Transportation services provided by Laclede Pipeline Company to Laclede Gas during fiscal years 2012, 2011, and 2010 totaled $1.0 million in each year. Laclede Gas provides administrative and general support to affiliates. All such costs, which are not material, are billed to the appropriate affiliates. Also, Laclede Group may charge or reimburse Laclede Gas for certain tax-related amounts. Unpaid balances relating to these activities are reflected in the Laclede Gas Balance Sheets as Accounts receivable-Associated companies or as Accounts payable-associated companies. Additionally, Laclede Gas may borrow funds from Laclede Group. Unpaid balances relating to this arrangement, if any, are reflected in Notes payable-associated companies. Laclede Gas had outstanding borrowings from Laclede Group under a revolving credit note of $37.1 million and $52.9 million, at September 30, 2012 and 2011, respectively. The interest rate on these borrowings was 0.2% and 0.3% at September 30, 2012 and 2011, respectively. Advances under this note are due and payable on demand. NATURE OF OPERATIONS - Laclede Gas is a public utility engaged in the retail distribution of natural gas. Laclede Gas serves an area in eastern Missouri, with a population of approximately 2.2 million, including the City of St. Louis and parts of ten counties in eastern Missouri. As an adjunct to its gas distribution business, Laclede Gas operates an underground natural gas storage field. The non-regulated activities of Laclede Gas are described in Note 11, Information by Operating Segment, and are included in the Non-Regulated Other column. USE OF ESTIMATES - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. SYSTEM OF ACCOUNTS - The accounts of Laclede Gas are maintained in accordance with the Uniform System of Accounts prescribed by the Missouri Public Service Commission (MoPSC or Commission), which system substantially conforms to that prescribed by the Federal Energy Regulatory Commission (FERC). UTILITY PLANT, DEPRECIATION AND AMORTIZATION - Utility plant is stated at original cost. The cost of additions to utility plant includes contracted work, direct labor and materials, allocable overheads, and an allowance for funds used during construction. The costs of units of property retired, replaced, or renewed are removed from utility plant and are charged to accumulated depreciation. Maintenance and repairs of property and replacement and renewal of items determined to be less than units of property are charged to maintenance expenses. Utility plant is depreciated on a straight-line basis at rates based on estimated service lives of the various classes of property. In fiscal years 2012, 2011, and 2010, annual depreciation and amortization expense averaged 3.1% of the original cost of depreciable and amortizable property. The Utility’s capital expenditures were $106.7 million, $67.3 million, and $56.2 million for fiscal years 2012, 2011, and 2010, respectively. Additionally, the Utility had recorded accruals for capital expenditures totaling $9.7 million at September 30, 2012, $8.2 million at September 30, 2011, and $2.2 million at September 30, 2010. Accrued capital expenditures are excluded from the Statements of Cash Flows. ASSET RETIREMENT OBLIGATIONS - Laclede Gas records legal obligations associated with the retirement of long-lived assets in the period in which the obligations are incurred, if sufficient information exists to reasonably estimate the fair value of the obligations. Obligations are recorded as both a cost of the related long-lived asset and as a corresponding liability. Subsequently, the asset retirement costs are depreciated over the life of the asset and the asset retirement obligations are accreted to the expected settlement amounts. The Utility has recorded asset retirement obligations associated with certain safety requirements to purge and seal gas distribution mains upon retirement, the plugging and abandonment of storage wells and other storage facilities, specific service line obligations, and certain removal and disposal obligations related to components of Laclede Gas’ distribution system and general plant. As authorized by the MoPSC, Laclede Gas accrues future asset removal costs associated with its property, plant and equipment even if a legal obligation does not exist. Such accruals are provided for through depreciation expense and are recorded with corresponding credits to regulatory liabilities. When Laclede Gas retires depreciable utility plant and equipment, it charges the associated original costs to accumulated depreciation and amortization, and any related removal costs incurred are charged to regulatory liabilities. The difference between removal costs recognized in depreciation rates and the accretion expense and depreciation expense recognized for financial reporting purposes is a timing difference between recovery of these costs in rates and their recognition for financial reporting purposes. Accordingly, these differences are deferred as regulatory liabilities. In the rate setting process, the regulatory liability is deducted from the rate base upon which the Utility has the opportunity to earn its allowed rate of return. The following table presents a reconciliation of the beginning and ending balances of Asset retirement obligations at September 30 as reported in the Balance Sheets:
REGULATED OPERATIONS - Laclede Gas accounts for its regulated operations in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 980, “Regulated Operations.” This Topic sets forth the application of GAAP for those companies whose rates are established by or are subject to approval by an independent third-party regulator. The provisions of this accounting guidance require, among other things, that financial statements of a regulated enterprise reflect the actions of regulators, where appropriate. These actions may result in the recognition of revenues and expenses in time periods that are different than non-regulated enterprises. When this occurs, costs are deferred as assets in the balance sheet (regulatory assets) and recorded as expenses when those amounts are reflected in rates. Also, regulators can impose liabilities upon a regulated company for amounts previously collected from customers and for recovery of costs that are expected to be incurred in the future (regulatory liabilities). The following regulatory assets and regulatory liabilities were reflected in the Balance Sheets as of September 30:
As authorized by the MoPSC, Laclede Gas discontinued deferring certain costs for future recovery, as expenses associated with those specific areas were included in approved rates effective December 27, 1999. Previously deferred costs of $10.5 million are being recovered and amortized on a straight-line basis over a fifteen-year period, without return on investment. Amortization of these costs totaled $9.0 million from December 27, 1999 through September 30, 2012. NATURAL GAS STORED UNDERGROUND - Inventory of Utility natural gas in storage is priced on a last-in, first-out (LIFO) basis. The replacement cost of natural gas stored underground for current use at September 30, 2012 and September 30, 2011 was less than the LIFO cost by $24.3 million and $19.9 million, respectively. The inventory carrying value is not adjusted to the lower of cost or market prices because, pursuant to the Laclede Gas Purchased Gas Adjustment (PGA) Clause, actual gas costs are recovered in customer rates. REVENUE RECOGNITION - Laclede Gas reads meters and bills its customers on monthly cycles. The Utility records its utility operating revenues from gas sales and transportation services on an accrual basis that includes estimated amounts for gas delivered, but not yet billed. The accruals for unbilled revenues are reversed in the subsequent accounting period when meters are actually read and customers are billed. The amounts of accrued unbilled revenues at September 30, 2012 and 2011, for the Utility, were $11.6 million and $11.8 million, respectively. PURCHASED GAS ADJUSTMENTS AND DEFERRED ACCOUNT – As authorized by the MoPSC, the PGA Clause allows Laclede Gas to flow through to customers, subject to prudence review by the MoPSC, the cost of purchased gas supplies. To better match customer billings with market natural gas prices, the Utility is allowed to file to modify, on a periodic basis, the level of gas costs in its PGA. Certain provisions of the PGA Clause are included below:
Pursuant to the provisions of the PGA Clause, the difference between actual costs incurred and costs recovered through the application of the PGA are reflected as a deferred charge or credit at the end of the fiscal year. These costs include costs and cost reductions associated with the use of derivative instruments and gas inventory carrying costs, amounts due to or from customers related to operation of the gas supply cost management program, refunds received from the Utility’s suppliers in connection with gas supply, transportation, and storage services, and carrying costs on such over- or under-recoveries. At that time, the balance is classified as a current asset or current liability and recovered from, or credited to, customers over an annual period commencing in November. The balance in the current account is amortized as amounts are reflected in customer billings. The PGA Clause also provides for the treatment of income from off-system sales and capacity release revenues. Pre-tax income from off-system sales and capacity release revenues is shared with customers, with an estimated amount assumed in PGA rates. The customer share of such income is determined in accordance with the table below. The difference between the actual amount allocated to customers for each fiscal year and the estimated amount assumed in PGA rates is recovered from, or credited to, customers over an annual period commencing in the subsequent November.
INCOME TAXES - Laclede Gas has elected, for tax purposes only, various accelerated depreciation provisions of the Internal Revenue Code. In addition, certain other costs are expensed currently for tax purposes while being deferred for book purposes. GAAP permits the benefit from a tax position to be recognized only if, and to the extent that, it is more likely than not that the tax position will be sustained upon examination by the taxing authority, based on the technical merits of the position. Unrecognized tax benefits and related interest and penalties, if any, are recorded as liabilities or as a reduction to deferred tax assets. Laclede Gas records deferred tax liabilities and assets measured by enacted tax rates for the net tax effect of all temporary differences between the tax basis and the related carrying amounts of assets and liabilities in the financial statements. Changes in enacted tax rates, if any, and certain property basis differences are reflected by entries to regulatory asset or regulatory liability accounts. Laclede Gas’ investment tax credits utilized prior to 1986 have been deferred and are being amortized in accordance with regulatory treatment over the useful life of the related property. Laclede Group files a consolidated federal income tax return and allocates income taxes to Laclede Gas and its other subsidiaries as if each entity were a separate taxpayer. CASH AND CASH EQUIVALENTS - All highly liquid debt instruments purchased with original maturities of three months or less are considered to be cash equivalents. Such instruments are carried at cost, which approximates market value. Outstanding checks on the Utility’s controlled disbursement bank accounts in excess of funds on deposit create book overdrafts (which are funded at the time checks are presented for payment) and are classified as Other in the Current Liabilities section of the Balance Sheets. Changes in book overdrafts between periods are reflected as Financing Activities in the Statements of Cash Flows. GROSS RECEIPTS AND SALES TAXES - Gross receipts taxes associated with Laclede Gas’ natural gas utility service are imposed on the Utility and billed to its customers. These amounts are recorded gross in the Statements of Income. Amounts recorded in Utility Operating Revenues were $35.9 million, $43.5 million, and $44.1 million for fiscal years 2012, 2011, and 2010, respectively. Gross receipts taxes are expensed by the Utility and included in the Taxes, other than income taxes line. Sales taxes imposed on applicable Utility sales are billed to customers. These amounts are not recorded in the Statements of Income, but are recorded as tax collections payable and included in the Other line of the Current Liabilities section of the Balance Sheets. ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS – Trade accounts receivable are recorded at the amounts due from customers, including unbilled amounts. Estimates of the collectibility of trade accounts receivable are based on historical trends, age of receivables, economic conditions, credit risk of specific customers, and other factors. Accounts receivable are written off against the allowance for doubtful accounts when they are deemed to be uncollectible. The Utility’s provision for uncollectible accounts includes the amortization of previously deferred uncollectible expenses, as approved by the MoPSC. GROUP MEDICAL AND WORKERS’ COMPENSATION RESERVES - Laclede Gas self-insures its group medical and workers’ compensation costs and carries stop-loss coverage in relation to medical claims and workers’ compensation claims. Reserves for amounts incurred but not reported are established based on historical cost levels and lags between occurrences and reporting. FAIR VALUE MEASUREMENTS – Certain assets and liabilities are recognized or disclosed at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The levels of the hierarchy are described below: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Pricing inputs other than quoted prices included within Level 1, which are either directly or indirectly observable for the asset or liability as of the reporting date. These inputs are derived principally from, or corroborated by, observable market data. Level 3 – Pricing that is based upon inputs that are generally unobservable that are based on the best information available and reflect management’s assumptions about how market participants would price the asset or liability. Assessment of the significance of a particular input to the fair value measurements may require judgment and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. Additional information about fair value measurements is provided in Note 2, Pension Plans and Other Postretirement Benefits, Note 6, Fair Value of Financial Instruments, and Note 7, Fair Value Measurements. STOCK-BASED COMPENSATION - Officers and employees of Laclede Gas, as determined by the Compensation Committee of Laclede Group’s Board of Directors, are eligible to be selected for awards under the Laclede Group 2006 Equity Incentive Plan (2006 Plan). Grants of awards may be earned by achieving performance objectives and/or other criteria as determined by the Compensation Committee. Awards may include restricted stock, restricted stock units, qualified and non-qualified stock options, stock appreciation rights, and performance shares payable in stock, cash, or a combination of both. The 2006 Plan generally provides a minimum vesting period of at least three years for each type of award. For Laclede Group’s non-employee directors, shares were awarded under the Restricted Stock Plan for Non-Employee Directors (Plan) prior to February 1, 2012, but any future awards will be granted under the 2006 Plan, as a result of plan amendments approved by Laclede Group’s shareholders. Awards previously granted under the Plan vest depending upon the participant’s age upon entering the plan and years of service as a director. Shares of Laclede Gas common stock, which are 100% owned by Laclede Group, are not transacted under the plans. Laclede Group accounts for awards under these plans in accordance with GAAP, and allocates applicable compensation costs to its subsidiaries. For awards made to its employees, the Utility records its allocation of compensation cost from Laclede Group with a corresponding increase to additional paid-in capital. The amounts of compensation cost allocated to the Utility for share-based compensation arrangements are presented below:
As of September 30, 2012, there was $3.4 million in unrecognized compensation cost related to nonvested share-based compensation arrangements that is expected to be allocated to the Utility over a weighted average period of 2.2 years. NEW ACCOUNTING STANDARDS – In May 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-04, “Amendments to Achieve Common Fair Value Measurement Disclosure Requirements in U.S. GAAP and IFRSs.” This ASU amends Accounting Standards Codification (ASC) Topic 820, “Fair Value Measurements and Disclosures,” to improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and International Financial Reporting Standards (IFRS). The ASU does not change what items are measured at fair value, but instead makes various changes to the guidance pertaining to how fair value is measured. Additionally, the ASU sets forth additional disclosure requirements, including additional information about Level 3 fair value measurements. Many of the amendments in this ASU are changes to align the wording in U.S. GAAP with IFRS and, as such, are not intended to result in a change in the application of the guidance. The Utility’s adoption of the guidance in this ASU on a prospective basis in the second quarter of fiscal year 2012 had no impact on its financial condition or results of operations, but certain additional disclosures have been presented as required. In June 2011, the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income,” to amend ASC Topic 220, “Comprehensive Income,” by changing certain financial statement presentation requirements. Under the amended guidance, entities may either present a single continuous statement of comprehensive income or, consistent with the Utility’s current presentation, provide separate but consecutive statements (a statement of income and a statement of comprehensive income). ASU No. 2011-05 would have required that, regardless of the method chosen, reclassification adjustments from other comprehensive income to net income be presented on the face of the financial statements, displaying the effect on both net income and other comprehensive income. However, in December 2011, the FASB issued ASU No. 2011-12 to defer the effective date of this particular requirement while it reconsiders this provision of the guidance. The amendments in these ASUs do not change the items that are required to be reported in other comprehensive income and, accordingly, will not impact total net income, comprehensive income, or earnings per share. In December 2011, the FASB issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities,” to amend ASC Topic 210, “Balance Sheet,” to require additional disclosures about financial instruments and derivative instruments that have been presented on a net basis (offset) in the balance sheet. Additionally, information about financial instruments and derivative instruments that are subject to enforceable master netting arrangements or similar agreements, irrespective of whether they are presented net in the balance sheet, is required to be disclosed. The ASU impacts disclosures only and will not require any changes to financial statement presentation. The Utility will present the new disclosures retrospectively beginning in the first quarter of fiscal year 2014. |
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