NOTES PAYABLE AND CREDIT AGREEMENTS

Short-term cash requirements outside of the Utilities have generally been funded by Laclede Group or met with internally generated funds. At September 30, 2015, Laclede Group had a $150.0 syndicated line of credit from nine banks maturing on September 3, 2019, with the largest portion provided by a single bank being 15.6%. The line of credit has a covenant limiting the total debt of the consolidated Laclede Group to no more than 70% of the Company's total capitalization. As defined in the line of credit, this ratio was 58% on September 30, 2015. Laclede Group's line may be used to provide for the funding needs of various subsidiaries. Borrowing under Laclede's Group's line during fiscal year 2015 ranged from $32.5 to $80.0, with the balance at September 30, 2015 of $74.0. Borrowings under Laclede Group's line during fiscal year 2014 ranged from $0 to $40.0, with the balance at September 30, 2014 of $32.5. The maturity date of the loan agreement is September 3, 2019.

The Utilities’ short-term borrowing requirements typically peak during the colder months while the Company's needs are less seasonal. These short-term cash requirements can be met through the sale of commercial paper supported by lines of credit with banks or through direct use of the lines of credit. At September 30, 2015, Laclede Gas had a syndicated line of credit of $450.0 in place from nine banks. The largest portion provided by a single bank is 15.6%. Laclede Gas' line of credit includes a covenant limiting total debt, including short-term debt, to no more than 70% of total capitalization. As defined in the line of credit, on September 30, 2015 total debt was 50% of total capitalization. Borrowing under Laclede Gas' commercial paper program during fiscal year 2015 ranged from $102.1 - $341.0, with the balance at September 30, 2015 at $233.0. Borrowing under Laclede Gas' commercial paper program during fiscal 2014 ranged from $0.0 to $244.5, with the balance at September 30, 2014 of $238.6. Laclede Gas' commercial paper program is backed by the line of credit. The maturity date of the line of credit is September 3, 2019.

On September 2, 2014, Alagasco entered into a new $150.0 syndicated line of credit with twelve banks and extinguished the line that was in place prior to its acquisition by Laclede Group. The largest portion provided by a single bank is 10%. The line of credit, which matures on September 2, 2019, has a covenant limiting total debt to no more than 70% of Alagasco's total capitalization. As defined in the line of credit, this ratio stood at 24% on September 30, 2015. Borrowing under Alagasco's line during fiscal year 2015 ranged from $0.0 to $69.5, with the balance at September 30, 2015 of $31.0. Borrowings under Alagasco's line for the month of September of fiscal 2014 ranged from $9.0 to $16.0, with the balance at September 30, 2014 of $16.0.

Laclede Group

Information about the Laclede Group’s short-term borrowings (excluding intercompany borrowings) during the twelve months ended September 30, and as of September 30, is presented below for 2015 and 2014:



	Laclede Gas Commercial Paper Borrowings	Laclede Group Bank Line Borrowings***	Alagasco Bank Line Borrowings *	Total Short-Term Borrowings **
Year Ended September 30, 2015
Weighted average borrowings outstanding	$212.7	$65.6	$22.3	$300.6
Weighted average interest rate	0.4%	1.4%	1.1%	0.7%
Range of borrowings outstanding	$ 102.1 - $341.0	$32.5 - $80.0	$0 - $69.5	$180.1 - $488.5
As of September 30, 2015
Borrowings outstanding at end of period	$233.0	$74.0	$31.0	$338.0
Weighted average interest rate	0.5%	1.5%	1.2%	0.8%
Year Ended September 30, 2014
Weighted average borrowings outstanding	$77.6	$3.6	$13.2	$82.3
Weighted average interest rate	0.3%	1.4%	1.2%	0.5%
Range of borrowings outstanding	$0 – $244.5	$0 – $40.0	$9.0 – $16.0	$0 – $300.5
As of September 30, 2014
Borrowings outstanding at end of period	$238.6	$32.5	$16.0	$287.1
Weighted average interest rate	0.3%	1.4%	1.2%	0.5%

* Weighted average borrowings for Alagasco represents Laclede Group's ownership period of one month. The one month average approximates the Alagasco daily outstanding balance for the fiscal year ended September 30, 2014.

** Represents twelve month weighted average for Laclede Group***, Laclede Gas, and Alagasco.

*** The Laclede Group, Inc., excluding its wholly owned subsidiaries.

Based on average short-term borrowings for the twelve months ended September 30, 2015, an increase in the average interest rate of 100 basis points would decrease Laclede Group's pre-tax earnings and cash flows by approximately $3.0 on an annual basis, portions of which may be offset through the application of PGA or GSA carrying costs.

Laclede Gas

Information about Laclede Gas' short-term borrowings during the twelve months ended September 30, and as of September 30, is presented below for 2015 and 2014:



	Commercial Paper Borrowings	Borrowings from Laclede Group	Total Short-Term Borrowings

Year Ended September 30, 2015
Weighted average borrowings outstanding	$212.7	$0.3	$213.0
Weighted average interest rate	0.4%	0.5%	0.4%
Range of borrowings outstanding	$102.1 - $341.0	$0 - $10.4	$104.2 - $ 341.0
As of September 30, 2015
Borrowings outstanding at end of period	$233.0	$—	$233.0
Weighted average interest rate	0.5%	—%	0.5%
Year Ended September 30, 2014
Weighted average borrowings outstanding	$77.6	$63.4	$141.0
Weighted average interest rate	0.3%	0.3%	0.3%
Range of borrowings outstanding	$0 – $244.5	$0 – $189.0	$45.5 – $272.1
As of September 30, 2014
Borrowings outstanding at end of period	$238.6	$—	$238.6
Weighted average interest rate	0.3%	—%	0.3%

Based on average short-term borrowings for the twelve months ended September 30, 2015, an increase in the average interest rate of 100 basis points would decrease Laclede Gas' pre-tax earnings and cash flows by approximately $2.1 on an annual basis, portions of which may be offset through the application of PGA carrying costs.

Alagasco

Information about Alagasco's short-term borrowings during the twelve months ended September 30, and as of September 30, is presented below for 2015 and 2014:



	Bank Line Borrowings

Year Ended September 30, 2015
Weighted average borrowings outstanding	$22.3
Weighted average interest rate	1.1%
Range of borrowings outstanding	$0 - $69.5
As of September 30, 2015
Borrowings outstanding at end of period	$31.0
Weighted average interest rate	1.2%
9/30/2014
Weighted average borrowings outstanding	$13.7
Weighted average interest rate	1.3%
Range of borrowings outstanding	$0.0 - $55.0
As of September 30, 2014
Borrowings outstanding at end of period	$16.0
Weighted average interest rate	1.2%

Based on average short-term borrowings for the twelve months ended September 30, 2015, an increase in the average interest rate of 100 basis points would decrease Alagasco's Gas' pre-tax earnings and cash flows by approximately $0.2 on an annual basis, portions of which may be offset through the application of GSA carrying costs.