DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Sep. 30, 2014

Derivative [Line Items]

Derivative Instruments and Hedging Activities

Open NYMEX/ICE and OTCBB natural gas futures and swap positions at September 30, 2014 were as follows:

	Laclede Gas			LER
	MMBtu (millions)	Avg. Price Per MMBtu		MMBtu (millions)	Avg. Price Per MMBtu
NYMEX/ICE Open short futures positions
Fiscal 2015	—	$	—	4.20	$	4.37
Fiscal 2016	—	—		2.22	4.26
NYMEX/ICE Open long futures/swap positions
Fiscal 2015	8.01	3.99		6.97	4.14
Fiscal 2016	0.94	3.92		0.53	4.07
Fiscal 2017	—	—		0.04	4.24
Fiscal 2018	—	—		0.01	4.27
ICE Open long basis swap positions
Fiscal 2015	—	—		1.16	0.38
Fiscal 2016	—	—		2.75	0.58
Fiscal 2017	—	—		6.87	0.50
Fiscal 2018	—	—		1.09	0.50
ICE Open short basis swap positions
Fiscal 2015	—	—		1.44	0.13
OTC Open long futures/swap positions
Fiscal 2015	16.43	4.28		—	—
Fiscal 2016	2.69	4.22		—	—

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

The Effect of Derivative Instruments on the Statements of Consolidated Income and Statements of Consolidated Comprehensive Income
	Location of Gain (Loss)
($ Millions)	Recorded in Income	2014			2013			2012
Derivatives in Cash Flow Hedging Relationships
Effective portion of gain (loss) recognized in OCI on derivatives:
Gas Marketing natural gas contracts		$	(4.6	)	$	4.9		$	4.5
Gas Utility gasoline and heating oil contracts		0.1			0.1			0.3
Total		$	(4.5	)	$	5.0		$	4.8
Effective portion of gain (loss) reclassified from AOCI to income:
Natural gas contracts	Gas Marketing Operating Revenues	$	4.2		$	—		$	18.9
	Gas Marketing Operating Expenses	(1.5		)	(0.5		)	(10.5		)
Sub-total		2.7			(0.5		)	8.4
Gasoline and heating oil contracts	Gas Utility Other Operation Expenses	(0.2		)	0.2			—
Total		$	2.5		$	(0.3	)	$	8.4
Ineffective portion of gain (loss) on derivatives     recognized in income:
Natural gas contracts	Gas Marketing Operating Revenues	$	(0.1	)	$	(0.4	)	$	—
	Gas Marketing Operating Expenses	0.1			(0.3		)	(0.3		)
Sub-total		—			(0.7		)	(0.3		)
Gasoline and heating oil contracts	Gas Utility Other Operation Expenses	(0.2		)	(0.1		)	0.2
Total		$	(0.2	)	$	(0.8	)	$	(0.1	)
Derivatives Not Designated as Hedging Instruments*
Gain (loss) recognized in income on derivatives:
Natural gas commodity contracts	Gas Marketing Operating Revenues	$	(8.7	)	$	(0.9	)	$	3.1
	Gas Marketing Operating Expenses	—			—			0.1
NYMEX / ICE natural gas contracts	Gas Marketing Operating Revenues	3.0			—			—
Gasoline and heating oil contracts	Other Income and (Income Deductions) - Net	—			0.1			—
Total		$	(5.7	)	$	(0.8	)	$	3.2

* 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 Missouri Utility’s PGA clauses and initially recorded as regulatory assets or regulatory liabilities. These gains and losses are excluded from the table above because they have no direct impact on the Statements of Consolidated Income. Such amounts are recognized in the Statements of Consolidated Income as a component of Regulated Gas Distribution 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 Consolidated Balance Sheet

Fair Value of Derivative Instruments in the Consolidated Balance Sheet at September 30, 2014
	Asset Derivatives*				Liability Derivatives*
($ Millions)	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair  Value
Derivatives designated as hedging instruments
Gas Utility:
Gasoline and heating oil contracts	Accounts Receivable – Other	$	—		Accounts Receivable – Other	$	0.2
Gas Marketing:
Natural gas contracts	Prepayments and other	—			Prepayments and other	—
	Derivative Asset Instruments	0.7			Derivative Asset Instruments	0.4
	Deferred Charges - Other	0.7			Deferred Charges - Other	0.2
Sub-total		$	1.4			$	0.8
	Asset Derivatives*				Liability Derivatives*
($ Millions)	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair  Value
Derivatives not designated as hedging instruments
Gas Utility:
Natural gas contracts	Prepayments and other	$	—		Prepayments and other	$	—
	Accounts Receivable – Other	2.4			Accounts Receivable – Other	5.2
	Derivative Asset Instruments	0.1			Derivative Asset Instruments	3.7
Gasoline and heating oil contracts	Accounts receivable – Other	—			Accounts receivable – Other	0.4
Sub-total		2.5				9.3
Gas Marketing:
Natural gas contracts	Prepayments and other	—			Prepayments and other	—
	Derivative Asset Instruments	3.5			Derivative Asset Instruments	1.4
	Deferred Charges - Other	0.3			Deferred Charges - Other	—
	Current Liabilities - Other	—			Current Liabilities - Other	0.5
	Deferred Credits and Other Liabilities - Other	—			Deferred Credits and Other Liabilities - Other	—
Sub-total		3.8				1.9
Total derivatives		$	7.7			$	12.0
Fair Value of Derivative Instruments in the Consolidated Balance Sheet at September 30, 2013
	Asset Derivatives				Liability Derivatives
($ Millions)	Balance Sheet Location	Fair Value		*	Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Gas Utility:
Gasoline and heating oil contracts	Accounts Receivable – Other	$	0.1		Accounts Receivable – Other	$	—
Gas Marketing:
Natural gas contracts	Prepayments and other	2.2			Prepayments and other	0.5
	Other Deferred Charges	—			Other Deferred Charges	—
Sub-total		2.3				0.5
Derivatives not designated as hedging instruments
Gas Utility:
Natural gas contacts	Prepayments and other	—			Prepayments and other	—
Natural gas contracts	Accounts Receivable – Other	1.5			Accounts Receivable – Other	3.5
	Current Liabilities - Other	0.2			Current Liabilities - Other	4.0
	Other Deferred Charges	—			Other Deferred Charges	—
	Deferred Credits and Other Liabilities - Other	—			Deferred Credits and Other Liabilities - Other	1.4
Sub-total		$	1.7			$	8.9

Gas Marketing:
Natural gas contracts	Prepayments and other	$	1.9	Prepayments and other	$	0.2
	Accounts Receivable – Other	—		Accounts Receivable – Other	—
	Current Liabilities - Other	0.3		Current Liabilities - Other	0.8
	Deferred Charges - Other	0.1		Deferred Charges - Other	0.1
	Deferred Credits and Other Liabilities - Other	—		Deferred Credits and Other Liabilities - Other	0.1
Sub-total		2.3			1.2
Total derivatives		$	6.3		$	10.6

* 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 Consolidated Balance Sheets. As such, the gross balances presented in the table above are not indicative of the Company’s net economic exposure. Refer to Note 9, Fair Value Measurements, to the Financial Statements for information on the valuation of derivative instruments.

Derivative instrument Reconciliation

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

($ Millions)	2014			2013
Fair value of asset derivatives presented above	$	7.7		$	6.3
Fair value of cash margin receivables offset with derivatives	3.0			1.7
Netting of assets and liabilities with the same counterparty	(7.9		)	(4.7		)
Total	$	2.8		$	3.3
Derivative Instrument Assets, per Consolidated Balance Sheets:
Derivative instrument assets	$	3.2		$	3.3
Other deferred charges	(0.4		)	—
Total	$	2.8		$	3.3
Fair value of liability derivatives presented above	$	12.0		$	10.6
Fair value of cash margin payables offset with derivatives	—			—
Netting of assets and liabilities with the same counterparty	(7.9		)	(4.7		)
Derivative instrument liabilities, per Consolidated Balance Sheets	$	4.1		$	5.9
Derivative Instrument Liabilities, per Consolidated Balance Sheets:
Other current liabilities	$	—		$	4.4
Other deferred credits	4.1			1.5
Total	$	4.1		$	5.9

Laclede Gas

Derivative [Line Items]

Derivative Instruments and Hedging Activities

Laclede Gas’ derivative instruments consist primarily of NYMEX and OTCBB positions. The NYMEX is the primary national commodities exchange on which natural gas derivatives are traded. Open NYMEX and OTCBB natural gas futures positions at September 30, 2014 were as follows:

	Laclede Gas
	MMBtu (millions)	Avg. Price Per MMBtu
NYMEX/ICE Open long futures/swap positions
Fiscal 2015	8.01	$	3.99
Fiscal 2016	0.94	3.92
OTC Open long futures/swap positions
Fiscal 2015	16.43	$	4.28
Fiscal 2016	2.69	4.22

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

The Effect of Derivative Instruments on the Statements of Income and Statements of Comprehensive Income
	Location of Gain (Loss)
($ Millions)	Recorded in Income	2014			2013			2012
Derivatives in Cash Flow Hedging Relationships
Effective portion of gain (loss) recognized in OCI on derivatives:
Gas Utility gasoline and heating oil contracts		$	0.1		$	0.1		$	0.3
Total		$	0.1		$	0.1		$	0.3
Effective portion of gain (loss) reclassified from AOCI to income:
Gasoline and heating oil contracts	Gas Utility Other Operation Expenses	$	(0.2	)	$	0.2		$	—
Total		$	(0.2	)	$	0.2		$	—
Ineffective portion of gain (loss) on derivatives     recognized in income:
Gasoline and heating oil contracts	Gas Utility Other Operation Expenses	$	(0.2	)	$	(0.1	)	$	0.2
Total		$	(0.2	)	$	(0.1	)	$	0.2
Derivatives Not Designated as Hedging Instruments*
Gain (loss) recognized in income on derivatives:
Gasoline and heating oil contracts	Other Income and (Income Deductions) - Net	$	—		$	0.1		$	—
Total		$	—		$	0.1		$	—

* 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 Laclede Gas’ PGA clauses and initially recorded as regulatory assets or regulatory liabilities. These gains and losses are excluded from the table above because they have no direct impact on the Statements of Income. Such amounts are recognized in the Statements of Income as a component of Regulated Gas Distribution 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 Consolidated Balance Sheet

Fair Value of Derivative Instruments in the Balance Sheet at September 30, 2014
	Asset Derivatives*				Liability Derivatives*
($ Millions)	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair  Value
Derivatives designated as hedging instruments
Gasoline and heating oil contracts	Accounts Receivable – Other	$	—		Accounts Receivable – Other	$	0.2
Sub-total		—				0.2
Derivatives not designated as hedging instruments
Natural gas contracts	Prepayments and other	—			Prepayments and other	—
	Accounts Receivable – Other	2.4			Accounts Receivable – Other	5.2
OTCBB natural gas contracts	Derivative Instrument Assets	0.1			Derivative Instrument Assets	3.7
	Deferred Charges - Other	—			Deferred Charges - Other	—
Gasoline and heating oil contracts	Accounts receivable – Other	—			Accounts receivable – Other	0.4
Sub-total		2.5				9.3
Total derivatives		$	2.5			$	9.5
Fair Value of Derivative Instruments in the Balance Sheet at September 30, 2013
	Asset Derivatives				Liability Derivatives
($ Millions)	Balance Sheet Location	Fair Value		*	Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Gasoline and heating oil contracts	Accounts Receivable – Other	$	0.1		Accounts Receivable – Other	$	—
Sub-total		0.1				—
Derivatives not designated as hedging instruments
Natural gas contacts	Prepayments and other	—			Prepayments and other	—
Natural gas contracts	Accounts Receivable – Other	1.5			Accounts Receivable – Other	3.5
	Current Liabilities - Other	0.2			Current Liabilities - Other	4.0
	Other Deferred Charges	—			Other Deferred Charges	—
	Deferred Credits and Other Liabilities - Other	—			Deferred Credits and Other Liabilities - Other	1.4
Sub-total		1.7				8.9
Total derivatives		$	1.8			$	8.9

* 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 Laclede Gas' net economic exposure. Refer to Note 9, Fair Value Measurements, of the Notes to the Financial Statements for information on the valuation of derivative instruments.

Derivative instrument Reconciliation

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

($ Millions)	2014			2013
Fair value of asset derivatives presented above	$	2.5		$	1.8
Fair value of cash margin receivables offset with derivatives	3.0			1.9
Netting of assets and liabilities with the same counterparty	(5.9		)	(3.7		)
Total	$	(0.4	)	$	—
Derivative Instrument Assets, per Balance Sheets:
Derivative instrument assets	$	(0.4	)	$	—
Total	$	(0.4	)	$	—
Fair value of liability derivatives presented above	$	9.5		$	8.9
Netting of assets and liabilities with the same counterparty	(5.9		)	(3.7		)
Derivative instrument liabilities, per Balance Sheets	$	3.6		$	5.2
Derivative Instrument Liabilities, per Balance Sheets:
Other current liabilities	$	—		$	3.8
Other deferred credits	3.6			1.4
Total	$	3.6		$	5.2