REGULATORY MATTERS

As explained in Note 1, Summary of Significant Accounting Policies, Laclede Gas and Alagasco account for regulated operations in accordance with FASB ASC Topic 980, “Regulated Operations.” The following regulatory assets and regulatory liabilities, including purchased gas adjustments, were reflected in the balance sheets of the Company and the Utilities as of March 31, 2017, September 30, 2016 and March 31, 2016.



	March 31,		September 30,		March 31,
Spire	2017		2016		2016
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	41.7	$	27.0	$	26.9
Unamortized purchased gas adjustments	61.0		49.7		8.9
Other	23.1		17.2		5.5
Total Regulatory Assets (current)	125.8		93.9		41.3
Non-current:
Future income taxes due from customers	159.7		151.3		142.3
Pension and postretirement benefit costs	461.8		487.9		441.0
Cost of removal	133.9		130.6		80.2
Unamortized purchased gas adjustments	1.1		12.6		15.1
Energy efficiency	27.0		25.5		23.7
Other	44.2		30.1		30.3
Total Regulatory Assets (non-current)	827.7		838.0		732.6
Total Regulatory Assets	$	953.5	$	931.9	$	773.9

Regulatory Liabilities:
Current:
Rate Stabilization and Equalization (RSE) adjustment	$	1.1	$	7.5	$	5.9
Unbilled service margin	13.5		5.9		14.9
Refundable negative salvage	8.1		9.3		9.2
Unamortized purchased gas adjustments	1.6		1.7		4.3
Other	7.0		6.2		3.8
Total Regulatory Liabilities (current)	31.3		30.6		38.1
Non-current:
Pension and postretirement benefit costs	27.6		28.9		27.8
Refundable negative salvage	4.9		9.4		10.1
Accrued cost of removal	75.3		74.8		58.3
Other	36.3		17.6		14.5
Total Regulatory Liabilities (non-current)	144.1		130.7		110.7
Total Regulatory Liabilities	$	175.4	$	161.3	$	148.8



	March 31,		September 30,		March 31,
Laclede Gas	2017		2016		2016
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	34.8	$	20.2	$	20.2
Unamortized purchased gas adjustments	17.1		43.1		3.9
Other	3.4		3.7		3.5
Total Regulatory Assets (current)	55.3		67.0		27.6
Non-current:
Future income taxes due from customers	159.7		151.3		142.3
Pension and postretirement benefit costs	358.3		375.7		357.1
Unamortized purchased gas adjustments	1.1		12.6		15.1
Energy efficiency	27.0		25.5		23.7
Other	23.3		24.7		25.6
Total Regulatory Assets (non-current)	569.4		589.8		563.8
Total Regulatory Assets	$	624.7	$	656.8	$	591.4

Regulatory Liabilities:
Current:
Unamortized purchased gas adjustments	$	—	$	—	$	4.3
Other	2.7		1.3		1.3
Total Regulatory Liabilities (current)	2.7		1.3		5.6
Non-current:
Accrued cost of removal	55.6		55.1		58.3
Other	28.9		12.2		11.0
Total Regulatory Liabilities (non-current)	84.5		67.3		69.3
Total Regulatory Liabilities	$	87.2	$	68.6	$	74.9



	March 31,		September 30,		March 31,
Alagasco	2017		2016		2016
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	6.8	$	6.8	$	6.7
Unamortized purchased gas adjustments	43.9		5.6		5.0
Other	4.4		8.1		2.0
Total Regulatory Assets (current)	55.1		20.5		13.7
Non-current:
Pension and postretirement benefit costs	94.4		98.9		83.9
Cost of removal	133.9		130.6		80.2
Other	1.0		1.2		4.0
Total Regulatory Assets (non-current)	229.3		230.7		168.1
Total Regulatory Assets	$	284.4	$	251.2	$	181.8

Regulatory Liabilities:
Current:
RSE adjustment	$	1.1	$	5.0	$	5.9
Unbilled service margin	13.5		5.9		14.9
Refundable negative salvage	8.1		9.3		9.2
Other	2.4		2.5		2.5
Total Regulatory Liabilities (current)	25.1		22.7		32.5
Non-current:
Pension and postretirement benefit costs	27.6		28.9		27.8
Refundable negative salvage	4.9		9.4		10.1
Other	3.4		3.4		3.5
Total Regulatory Liabilities (non-current)	35.9		41.7		41.4
Total Regulatory Liabilities	$	61.0	$	64.4	$	73.9

A portion of the Company’s and Laclede Gas’ regulatory assets are not earning a return, as shown in the schedule below:



	Spire						Laclede Gas
	March 31,		September 30,		March 31,		March 31,		September 30,		March 31,
	2017		2016		2016		2017		2016		2016
Future income taxes due from customers	$	159.7	$	151.3	$	142.3	$	159.7	$	151.3	$	142.3
Pension and postretirement benefit costs	241.0		240.6		211.5		241.0		240.6		211.5
Other	11.8		12.9		13.6		11.8		12.9		13.6
Total Regulatory Assets Not Earning a Return	$	412.5	$	404.8	$	367.4	$	412.5	$	404.8	$	367.4

Like all the Company’s regulatory assets, these regulatory assets are expected to be recovered from customers in future rates. The Company and Laclede Gas expect these items to be recovered over a period not to exceed 15 years, consistent with precedent set by the MoPSC. Alagasco does not have any regulatory assets that are not earning a return.