Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Nov. 30, 2016 | Mar. 31, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | RGC RESOURCES INC | ||
Entity Central Index Key | 1,069,533 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 4,798,466 | ||
Entity Public Float | $ 95,954,187 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 643,252 | $ 985,234 |
Accounts receivable, net | 3,478,983 | 3,196,573 |
Materials and supplies | 824,139 | 968,108 |
Gas in storage | 7,436,785 | 8,160,498 |
Prepaid income taxes | 1,550,836 | 1,657,066 |
Other | 1,548,329 | 1,182,343 |
Total current assets | 15,482,324 | 16,149,822 |
UTILITY PROPERTY: | ||
In service | 185,577,286 | 168,033,032 |
Accumulated depreciation and amortization | (56,156,287) | (53,307,079) |
In service, net | 129,420,999 | 114,725,953 |
Construction work in progress | 2,707,139 | 3,903,599 |
Utility plant, net | 132,128,138 | 118,629,552 |
OTHER ASSETS: | ||
Regulatory assets | 14,332,451 | 10,923,243 |
Investment in unconsolidated affiliate | 3,496,404 | 0 |
Other | 113,532 | 144,577 |
Total other assets | 17,942,387 | 11,067,820 |
TOTAL ASSETS | 165,552,849 | 145,847,194 |
CURRENT LIABILITIES: | ||
Borrowings under line-of-credit | 14,556,785 | 9,340,997 |
Dividends payable | 970,244 | 912,995 |
Accounts payable | 5,345,575 | 5,141,677 |
Capital contributions payable | 287,794 | 0 |
Customer credit balances | 1,605,608 | 1,560,351 |
Customer deposits | 1,627,105 | 1,579,441 |
Accrued expenses | 3,194,255 | 2,766,097 |
Over-recovery of gas costs | 909,687 | 1,901,426 |
Total current liabilities | 28,497,053 | 23,202,984 |
LONG-TERM DEBT: | ||
Principal amount | 33,896,200 | 30,500,000 |
Less unamortized debt issuance costs | (260,149) | (183,427) |
Long-term debt net of unamortized debt issuance costs | 33,636,051 | 30,316,573 |
DEFERRED CREDITS AND OTHER LIABILITIES: | ||
Asset retirement obligations | 5,682,556 | 5,295,868 |
Regulatory cost of retirement obligations | 9,348,443 | 8,885,486 |
Benefit plan liabilities | 13,763,820 | 10,685,261 |
Deferred income taxes | 18,957,854 | 14,620,031 |
Total deferred credits and other liabilities | 47,752,673 | 39,486,646 |
COMMITMENTS AND CONTINGENCIES (Note 9) | ||
Stockholders’ Equity: | ||
Common Stock, $5 par value; authorized 10,000,000 shares; issued and outstanding 4,788,289 and 4,741,498 shares in 2016 and 2015, respectively | 23,941,445 | 23,707,490 |
Preferred stock, no par; authorized 5,000,000 shares; no shares issued and outstanding in 2016 and 2015 | 0 | 0 |
Capital in excess of par value | 9,509,548 | 8,647,669 |
Retained earnings | 24,713,310 | 22,772,377 |
Accumulated other comprehensive loss | (2,497,231) | (2,286,545) |
Total stockholders’ equity | 55,667,072 | 52,840,991 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 165,552,849 | $ 145,847,194 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Sep. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 5 | $ 5 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 4,788,289 | 4,741,498 |
Common stock, share outstanding | 4,788,289 | 4,741,498 |
Preferred stock, no par value (in usd per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, share outstanding | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
OPERATING REVENUES: | |||
Gas utilities | $ 58,079,990 | $ 67,094,290 | $ 73,865,487 |
Other | 983,301 | 1,095,317 | 1,150,647 |
Total operating revenues | 59,063,291 | 68,189,607 | 75,016,134 |
COST OF SALES: | |||
Gas utilities | 27,009,330 | 37,437,315 | 45,091,274 |
Other | 489,047 | 545,859 | 587,771 |
Total cost of sales | 27,498,377 | 37,983,174 | 45,679,045 |
GROSS MARGIN | 31,564,914 | 30,206,433 | 29,337,089 |
OTHER OPERATING EXPENSES: | |||
Operations and maintenance | 13,098,086 | 13,486,885 | 13,383,388 |
General taxes | 1,663,126 | 1,606,421 | 1,560,386 |
Depreciation and amortization | 5,591,610 | 5,106,935 | 4,711,447 |
Total other operating expenses | 20,352,822 | 20,200,241 | 19,655,221 |
OPERATING INCOME | 11,212,092 | 10,006,192 | 9,681,868 |
Equity in earnings of unconsolidated affiliate | 152,864 | 0 | 0 |
Other expense, net | 255,585 | 228,796 | 206,887 |
Interest expense | 1,636,321 | 1,512,419 | 1,827,001 |
INCOME BEFORE INCOME TAXES | 9,473,050 | 8,264,977 | 7,647,980 |
INCOME TAX EXPENSE | 3,666,184 | 3,170,562 | 2,939,540 |
NET INCOME | $ 5,806,866 | $ 5,094,415 | $ 4,708,440 |
EARNINGS PER COMMON SHARE: | |||
Basic (in usd per share) | $ 1.22 | $ 1.08 | $ 1 |
Diluted (in usd per share) | $ 1.22 | $ 1.08 | $ 1 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic (in shares) | 4,766,604 | 4,728,210 | 4,715,478 |
Diluted (in shares) | 4,773,175 | 4,731,676 | 4,716,282 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 5,806,866 | $ 5,094,415 | $ 4,708,440 |
Other comprehensive income, net of tax: | |||
Interest rate swaps | 0 | 0 | 1,232,546 |
Defined benefit plans | (210,686) | (1,147,219) | (220,638) |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (210,686) | (1,147,219) | 1,011,908 |
COMPREHENSIVE INCOME | $ 5,596,180 | $ 3,947,196 | $ 5,720,348 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Sep. 30, 2013 | $ 49,502,422 | $ 23,546,630 | $ 8,003,787 | $ 20,103,239 | $ (2,151,234) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 4,708,440 | 4,708,440 | |||
Other comprehensive income | 1,011,908 | 1,011,908 | |||
Stock option grants | 75,310 | 75,310 | |||
Cash dividends declared | (3,490,624) | (3,490,624) | |||
Issuance of common stock | 213,391 | 55,260 | 158,131 | ||
Ending balance at Sep. 30, 2014 | 52,020,847 | 23,601,890 | 8,237,228 | 21,321,055 | (1,139,326) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 5,094,415 | 5,094,415 | |||
Other comprehensive income | (1,147,219) | (1,147,219) | |||
Exercise of stock options | 49,366 | 13,000 | 36,366 | ||
Stock option grants | 83,640 | 83,640 | |||
Cash dividends declared | (3,643,093) | (3,643,093) | |||
Issuance of common stock | 383,035 | 92,600 | 290,435 | ||
Ending balance at Sep. 30, 2015 | 52,840,991 | 23,707,490 | 8,647,669 | 22,772,377 | (2,286,545) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 5,806,866 | 5,806,866 | |||
Other comprehensive income | (210,686) | (210,686) | |||
Exercise of stock options | 41,762 | 11,000 | 30,762 | ||
Stock option grants | 64,640 | 64,640 | |||
Cash dividends declared | (3,865,933) | (3,865,933) | |||
Issuance of common stock | 989,432 | 222,955 | 766,477 | ||
Ending balance at Sep. 30, 2016 | $ 55,667,072 | $ 23,941,445 | $ 9,509,548 | $ 24,713,310 | $ (2,497,231) |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in usd per share) | $ 0.81 | $ 0.77 | $ 0.74 |
Issuance of stock (in shares) | 44,591 | 18,520 | 11,052 |
Options exercised (in shares) | 2,200 | 2,600 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 5,806,866 | $ 5,094,415 | $ 4,708,440 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Depreciation and amortization | 5,709,525 | 5,219,893 | 4,838,062 |
Cost of retirement of utility plant, net | (449,201) | (406,731) | (452,834) |
Stock option grants | 64,640 | 83,640 | 75,310 |
Equity in earnings of unconsolidated affiliate | (152,864) | 0 | 0 |
Deferred taxes and investment tax credits | 4,466,954 | 2,416,841 | 859,788 |
Other noncash items, net | 197,298 | 105,815 | 38,073 |
Changes in assets and liabilities which provided (used) cash: | |||
Accounts receivable and customer deposits, net | (258,960) | 638,917 | 12,424 |
Inventories and gas in storage | 867,682 | 3,168,056 | (1,219,641) |
Over/under recovery of gas costs | (991,739) | 2,082,257 | (1,208,134) |
Other assets | (398,864) | (768,922) | (306,744) |
Accounts payable, customer credit balances and accrued expenses, net | 60,303 | (873,354) | (505,006) |
Total adjustments | 9,114,774 | 11,666,412 | 2,131,298 |
Net cash provided by operating activities | 14,921,640 | 16,760,827 | 6,839,738 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Expenditures for utility property | (17,945,719) | (13,780,356) | (14,715,428) |
Investment in unconsolidated affiliate | (3,055,746) | 0 | 0 |
Proceeds from disposal of utility property | 4,964 | 30,082 | 16,858 |
Net cash used in investing activities | (20,996,501) | (13,750,274) | (14,698,570) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings under line-of-credit | 38,310,326 | 34,698,924 | 25,363,774 |
Repayments under line-of-credit | (33,094,539) | (34,402,977) | (16,318,724) |
Proceeds from issuance of unsecured notes | 3,396,200 | 0 | 30,500,000 |
Retirement of note payable | 0 | 0 | (15,000,000) |
Retirement of long-term debt | 0 | 0 | (13,000,000) |
Early termination fees | 0 | 0 | (2,237,961) |
Debt issuance expenses | (101,619) | 0 | (193,081) |
Proceeds from issuance of stock | 1,031,194 | 432,401 | 213,391 |
Cash dividends paid | (3,808,683) | (3,603,424) | (3,465,034) |
Net cash provided by (used in) financing activities | 5,732,879 | (2,875,076) | 5,862,365 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (341,982) | 135,477 | (1,996,467) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 985,234 | 849,757 | 2,846,224 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 643,252 | 985,234 | 849,757 |
Cash paid (refunded) during the year for: | |||
Interest | 1,480,665 | 1,002,462 | 1,966,263 |
Income taxes | $ (907,000) | $ 1,266,573 | $ 2,387,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation —RGC Resources, Inc. is an energy services company primarily engaged in the sale and distribution of natural gas. The consolidated financial statements include the accounts of RGC Resources, Inc. and its wholly owned subsidiaries (“Resources” or the “Company”): Roanoke Gas Company (“Roanoke Gas”); Diversified Energy Company; RGC Ventures of Virginia, Inc., operating as Application Resources and The Utility Consultants; and RGC Midstream, LLC. Roanoke Gas is a natural gas utility, which distributes and sells natural gas to approximately 59,600 residential, commercial and industrial customers within its service areas in Roanoke, Virginia and the surrounding localities. The Company’s business is seasonal in nature as a majority of natural gas sales are for space heating during the winter season. Roanoke Gas is regulated by the Virginia State Corporation Commission (“SCC” or “Virginia Commission”). RGC Ventures of Virginia, Inc. was dissolved in 2016 after Application Resources, which provided information system services to software providers in the utility industry, ceased operations in 2016, and The Utility Consultants, which provided regulatory consulting services to other utilities, ceased operations in 2015. RGC Midstream, LLC is a wholly-owned subsidiary created in 2015 to invest in the Mountain Valley pipeline project. Diversified Energy Company is currently inactive. The Company follows accounting and reporting standards established by the Financial Accounting Standards Board (“FASB”) and the Securities and Exchange Commission (“SEC”). Resources has only one reportable segment as defined under FASB ASC No. 280 – Segment Reporting . All intercompany transactions have been eliminated in consolidation. Rate Regulated Basis of Accounting —The Company’s regulated operations follow the accounting and reporting requirements of FASB ASC No. 980, Regulated Operations . The economic effects of regulation can result in a regulated company deferring costs that have been or are expected to be recovered from customers in a period different from the period in which the costs would be charged to expense by an unregulated enterprise. When this situation occurs, costs are deferred as assets in the consolidated balance sheet (regulatory assets) and recorded as expenses when such amounts are reflected in rates. Additionally, regulators can impose liabilities upon a regulated company for amounts previously collected from customers and for current collection in rates of costs that are expected to be incurred in the future (regulatory liabilities). In the event the provisions of FASB ASC No. 980 no longer apply to any or all regulatory assets or liabilities, the Company would write off such amounts and include them in the consolidated statements of income and comprehensive income in the period for which FASB ASC No. 980 no longer applied. Regulatory assets and liabilities included in the Company’s consolidated balance sheets as of September 30, 2016 and 2015 are as follows: September 30 2016 2015 Regulatory Assets: Current Assets: Accounts receivable: Accrued WNA revenues $ 148,663 $ 229,281 Other: Accrued pension and postretirement medical 835,704 530,781 Utility Property: In service: Other 11,945 11,945 Other Assets: Regulatory assets: Premium on early retirement of debt 2,055,369 2,169,556 Accrued pension and postretirement medical 11,460,738 8,378,419 Other 816,344 375,268 Total regulatory assets $ 15,328,763 $ 11,695,250 Regulatory Liabilities: Current Liabilities: Over-recovery of gas costs $ 909,687 $ 1,901,426 Accrued expenses: Over-recovery of SAVE Plan revenues 238,694 153,365 Deferred Credits and Other Liabilities: Asset retirement obligations 5,682,556 5,295,868 Regulatory cost of retirement obligations 9,348,443 8,885,486 Total regulatory liabilities $ 16,179,380 $ 16,236,145 As of September 30, 2016 , the Company had regulatory assets in the amount of $13,261,449 on which the Company did not earn a return during the recovery period. These assets primarily pertain to the net funded position of the Company’s benefit plans related to its regulated operations. As such, the amortization period is not specifically defined. Utility Plant and Depreciation —Utility plant is stated at original cost and includes direct labor and materials, contractor costs, and all allocable overhead charges. The Company applies the group method of accounting, where the costs of like assets are aggregated and depreciated by applying a rate based on the average expected useful life of the assets. In accordance with Company policy, expenditures for depreciable assets with a life greater than one year are capitalized, along with any upgrades or improvements to existing assets, when they significantly improve or extend the original expected useful life of an asset. Expenditures for maintenance, repairs, and minor renewals and betterments are expensed as incurred. The original cost of depreciable property retired is removed from utility plant and charged to accumulated depreciation. The cost of asset removals, less salvage, is charged to “regulatory cost of retirement obligations” or “asset retirement obligations” as explained under Asset Retirement Obligations below. Utility plant is composed of the following major classes of assets: Years Ended September 30 2016 2015 Distribution and transmission $ 160,354,300 $ 143,172,628 LNG storage 12,594,294 12,501,179 General and miscellaneous 12,628,692 12,359,225 Total utility plant in service $ 185,577,286 $ 168,033,032 Provisions for depreciation are computed principally at composite straight-line rates over periods ranging from 5 to 76 years . Rates are determined by depreciation studies which are required to be performed at least every 5 years on the regulated utility assets of Roanoke Gas. The Company completed its last depreciation study in June 2014. The composite weighted-average depreciation rate realized using the most recently completed depreciation study was 3.25% for each of the fiscal years ended September 30, 2016, 2015 and 2014. The composite rates are composed of two components, one based on average service life and one based on cost of retirement. As a result, the Company accrues the estimated cost of retirement of long-lived assets through depreciation expense. Retirement costs are not a legal obligation but rather the result of cost-based regulation and are accounted for under the provisions of FASB ASC No. 980. Such amounts are classified as a regulatory liability. The Company reviews long-lived assets and certain identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These reviews have not identified any impairments which would have a material effect on the results of operations or financial condition. Asset Retirement Obligations —FASB ASC No. 410, Asset Retirement and Environmental Obligations , requires entities to record the fair value of a liability for an asset retirement obligation when there exists a legal obligation for the retirement of the asset. When the liability is initially recorded, the entity capitalizes the cost, thereby increasing the carrying amount of the underlying asset. In subsequent periods, the liability is accreted, and the capitalized cost is depreciated over the useful life of the underlying asset. The Company has recorded asset retirement obligations for its future legal obligations related to purging and capping its distribution mains and services upon retirement, although the timing of such retirements is uncertain. The Company’s composite depreciation rates include a component to provide for the cost of retirement of assets. As a result, the Company accrues the estimated cost of retirement of its utility plant through depreciation expense and creates a corresponding regulatory liability. The costs of retirement considered in the development of the depreciation component include those costs associated with the legal liability. Therefore, the asset retirement obligation is reclassified from the regulatory cost of retirement obligation. If the legal obligations were to exceed the regulatory liability provided for in the depreciation rates, the Company would establish a regulatory asset for such difference with the anticipation of future recovery through rates charged to customers. In 2016, the Company increased its asset retirement obligation to reflect revisions to the estimated cash flows for asset retirements. The following is a summary of the asset retirement obligation: Years Ended September 30 2016 2015 Beginning balance $ 5,295,868 $ 4,802,015 Liabilities incurred 85,263 62,890 Liabilities settled (176,090 ) (162,072 ) Accretion 310,568 281,762 Revisions to estimated cash flows 166,947 311,273 Ending balance $ 5,682,556 $ 5,295,868 Cash, Cash Equivalents and Short-Term Investments —From time to time, the Company will have balances on deposit at banks in excess of the amount insured by the Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses on these accounts and does not consider these amounts to be at credit risk. As of September 30, 2016 , the Company did not have any bank deposits in excess of the FDIC insurance limits. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Customer Receivables and Allowance for Doubtful Accounts —Accounts receivable include amounts billed to customers for natural gas sales and related services and gas sales occurring subsequent to normal billing cycles but before the end of the period. The Company provides an estimate for losses on these receivables by utilizing historical information, current account balances, account aging and current economic conditions. Customer accounts are charged off annually when deemed uncollectible or when turned over to a collection agency for action. A reconciliation of changes in the allowance for doubtful accounts is as follows: Years Ended September 30 2016 2015 2014 Beginning balance $ 52,721 $ 70,747 $ 68,539 Provision for doubtful accounts 14,074 87,908 148,881 Recoveries of accounts written off 137,055 139,282 136,369 Accounts written off (126,916 ) (245,216 ) (283,042 ) Ending balance $ 76,934 $ 52,721 $ 70,747 Financing Receivables —Financing receivables represent a contractual right to receive money either on demand or on fixed or determinable dates and are recognized as assets on the entity’s balance sheet. Trade receivables are the Company's one primary type of financing receivables, resulting from the sale of natural gas and other services to its customers. These receivable are short-term in nature with a provision for uncollectible balances included in the financial statements. Inventories —Inventories, consisting of natural gas in storage and materials and supplies, are recorded at average cost. Injections into storage are priced at the purchase cost at the time of injection and withdrawals from storage are priced at the weighted average price in storage. Materials and supplies are removed from inventory at average cost. Unbilled Revenues —The Company bills its natural gas customers on a monthly cycle; however, the billing cycle period for most customers does not coincide with the accounting periods used for financial reporting. As the Company recognizes revenue when gas is delivered, an accrual is made to estimate revenues for natural gas delivered to customers but not billed during the accounting period. The amounts of unbilled revenue receivable included in accounts receivable on the consolidated balance sheets at September 30, 2016 and 2015 were $1,004,061 and $1,001,418 , respectively. Income Taxes —Income taxes are accounted for using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the years in which those temporary differences are expected to be recovered or settled. A valuation allowance against deferred tax assets is provided if it is more likely than not the deferred tax asset will not be realized. The Company and its subsidiaries file state and federal consolidated income tax returns. Debt Expenses —Debt issuance expenses are deferred and amortized over the lives of the debt instruments. The unamortized balances are offset against the carrying value of long-term debt. Over/Under-Recovery of Natural Gas Costs —Pursuant to the provisions of the Company’s Purchased Gas Adjustment (“PGA”) clause, the SCC provides the Company with a method of passing along to its customers increases or decreases in natural gas costs incurred by its regulated operations, including gains and losses on natural gas derivative hedging instruments. On a quarterly basis, the Company files a PGA rate adjustment request with the SCC to adjust the gas cost component of its rates up or down depending on projected price and activity. Once administrative approval is received, the Company adjusts the gas cost component of its rates to reflect the approved amount. As actual costs will differ from the projections used in establishing the PGA rate, the Company may either over-recover or under-recover its actual gas costs during the period. Any difference between actual costs incurred and costs recovered through the application of the PGA is recorded as a regulatory asset or liability. At the end of the deferral period, the balance of the net deferred charge or credit is amortized over an ensuing 12 -month period as amounts are reflected in customer billings. Fair Value —Fair value 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. The Company determines fair value based on the following fair value hierarchy which prioritizes each input to the valuation methods into one of the following three broad levels: • Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 – Inputs other than quoted prices in Level 1 that are either for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 – Unobservable inputs for the asset or liability where there is little, if any, market activity which require the Company to develop its own assumptions. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). All fair value disclosures are categorized within one of the three categories in the hierarchy. See fair value disclosures below and in Notes 7 and 11. Use of Estimates —The preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Excise and Sales Taxes —Certain excise and sales taxes imposed by the state and local governments in the Company’s service territory are collected by the Company from its customers. These taxes are accounted for on a net basis and therefore are not included as revenues in the Company’s Consolidated Statements of Income. Earnings Per Share —Basic earnings per share and diluted earnings per share are calculated by dividing net income by the weighted-average common shares outstanding during the period and the weighted-average common shares outstanding during the period plus dilutive potential common shares, respectively. Dilutive potential common shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all options are used to repurchase common stock at market value. The amount of shares remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities. A reconciliation of basic and diluted earnings per share is presented below: Years Ended September 30 2016 2015 2014 Net Income $ 5,806,866 $ 5,094,415 $ 4,708,440 Weighted-average common shares 4,766,604 4,728,210 4,715,478 Effect of dilutive securities: Options to purchase common stock 6,571 3,466 804 Diluted average common shares 4,773,175 4,731,676 4,716,282 Earnings Per Share of Common Stock: Basic $ 1.22 $ 1.08 $ 1.00 Diluted $ 1.22 $ 1.08 $ 1.00 Business and Credit Concentrations — The primary business of the Company is the distribution of natural gas to residential, commercial and industrial customers in its service territories. No sales to individual customers accounted for more than 5% of total revenue in any period or amounted to more than 5% of total accounts receivable. Roanoke Gas currently holds the only franchises and certificates of public convenience and necessity to distribute natural gas in its service area. These franchises are effective through January 1, 2036 . The Company's current certificates of public convenience and necessity in Virginia are exclusive and are intended for perpetual duration. Roanoke Gas is served directly by two primary pipelines that provide all of the natural gas supplied to the Company’s customers. Depending upon weather conditions and the level of customer demand, failure of one or both of these transmission pipelines could have a major adverse impact on the Company. Derivative and Hedging Activities —FASB ASC No. 815, Derivatives and Hedging , requires the recognition of all derivative instruments as assets or liabilities in the Company’s balance sheet and measurement of those instruments at fair value. The Company’s hedging and derivatives policy allows management to enter into derivatives for the purpose of managing commodity and financial market risks of its business operations. The Company’s hedging and derivatives policy specifically prohibits the use of derivatives for speculative purposes. The key market risks that RGC Resources, Inc. hedges against include the price of natural gas and the cost of borrowed funds. The Company historically has entered into collars, swaps and caps for the purpose of hedging the price of natural gas in order to provide price stability during the winter months. The fair value of these instruments is recorded in the balance sheet with the offsetting entry to either under-recovery of gas costs or over-recovery of gas costs. Net income and other comprehensive income are not affected by the change in market value as any cost incurred or benefit received from these instruments is recoverable or refunded through the PGA as the SCC allows for full recovery of prudent costs associated with natural gas purchases. At September 30, 2016 and 2015 , the Company had no outstanding derivative instruments for the purchase of natural gas. The Company also had two interest rate swaps that essentially converted its variable interest rate notes to fixed rate debt instruments. Both swaps were terminated in September 2014 as part of the Company's debt refinancing. These swaps qualified as cash flow hedges with changes in fair value reported in other comprehensive income. No derivative instruments were deemed to be ineffective for any period presented. Non-Cash Activity — Non-cash increase in investment in unconsolidated affiliate and corresponding increase in capital contributions payable of $287,794 . O ther Comprehensive Income(Loss) — A summary of other comprehensive income is provided below: Before Tax Amount Tax (Expense) or Benefit Net of Tax Amount Year Ended September 30, 2016: Defined benefit plans: Net loss arising during period $ (560,887 ) $ 213,137 $ (347,750 ) Amortization of actuarial losses 221,070 (84,006 ) 137,064 Other comprehensive loss $ (339,817 ) $ 129,131 $ (210,686 ) Year Ended September 30, 2015: Defined benefit plans: Net loss arising during period $ (1,910,573 ) $ 726,017 $ (1,184,556 ) Amortization of actuarial losses 60,221 (22,884 ) 37,337 Other comprehensive loss $ (1,850,352 ) $ 703,133 $ (1,147,219 ) Year Ended September 30, 2014: Interest rate swaps: Unrealized losses $ (58,800 ) $ 22,321 $ (36,479 ) Transfer of realized losses to interest expense 926,262 (351,609 ) 574,653 Transfer of realized losses to regulatory asset 1,119,233 (424,861 ) 694,372 Net interest rate swaps 1,986,695 (754,149 ) 1,232,546 Defined benefit plans: Net loss arising during period (397,714 ) 151,131 (246,583 ) Amortization of actuarial losses 41,846 (15,901 ) 25,945 Net defined benefit plans (355,868 ) 135,230 (220,638 ) Other comprehensive income $ 1,630,827 $ (618,919 ) $ 1,011,908 The amortization of actuarial losses and transition obligation is included as components of net periodic pension and postretirement benefit costs and is included in operations and maintenance expense. Composition of Accumulated Other Comprehensive Income (Loss): Interest Rate Swaps Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) Balance September 30, 2013 $ (1,232,546 ) $ (918,688 ) $ (2,151,234 ) Other comprehensive income (loss) 1,232,546 (220,638 ) 1,011,908 Balance September 30, 2014 — (1,139,326 ) (1,139,326 ) Other comprehensive income (loss) — (1,147,219 ) (1,147,219 ) Balance September 30, 2015 — (2,286,545 ) (2,286,545 ) Other comprehensive income (loss) — (210,686 ) (210,686 ) Balance September 30, 2016 $ — $ (2,497,231 ) $ (2,497,231 ) Recently Adopted Accounting Standards —In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The Company previously recognized debt issuance costs in assets and amortized those costs over the term of the debt. This guidance is effective for the Company for the annual reporting period ending September 30, 2017 and interim periods within that annual period. Early application is permitted. The Company adopted the ASU in the period ended September 30, 2015. The adoption of this ASU did not have any effect on the Company's results of operations or cash flows; however, the unamortized balance of debt issuance costs were reclassified from assets to an offset against long-term debt. Certain deferred costs related to the early retirement of debt in 2014 are classified as regulatory assets and are not offset against debt. In November 2015, the FASB issued ASU 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes . The ASU requires that all deferred tax assets and liabilities be presented as noncurrent and eliminates prior guidance to classify and present deferred tax assets and liabilities as current and noncurrent. This ASU is effective for the Company for the annual reporting period ended September 30, 2018 and interim periods within that annual period. Early application is permitted. The Company adopted this ASU for the quarter ended December 31, 2015. The Company applied the retrospective approach in adopting this ASU and reclassified $2,293,536 previously reflected as a current deferred income tax asset against the balance of the non-current deferred tax liability in the September 30, 2015 consolidated balance sheet. There was no other impact to the Company’s financial position, results of operations or cash flows. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting . The guidance simplifies several aspects of the accounting for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The new guidance is effective for the Company for the annual reporting period ending September 30, 2018 and interim periods within that annual period. Early adoption is permitted. The Company adopted this ASU for the quarter ended September 30, 2016. Under the prior guidance, excess tax benefits were to be tracked in an APIC pool and not recognized in the income statement. Tax deficiencies were netted against the accumulated APIC pool and only recognized in the income statement starting at the time tax deficiencies exceeded the pool. Under ASU 2016-09, the APIC pool is eliminated with all excess tax benefits and deficiencies recognized in income tax expense on the income statement. Prior to the adoption of this ASU, stock option activity did not result in the accumulation of an APIC pool; therefore, adopting the ASU had minimal impact on the Company’s current financial position, results of operations or cash flows and no impact on prior results. Recently Issued Accounting Standards —In May 2014, the FASB issued guidance under FASB ASC No. 606 - Revenue from Contracts with Customers that affects any entity that enters into contracts with customers for the transfer of goods or services or transfer of non-financial assets. This guidance supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when, or as, the entity satisfies the performance obligation. The new guidance is effective for the Company for the annual reporting period ending September 30, 2018 and interim periods within that annual period. Early application was not permitted. In August 2015, the FASB issued ASU 2015-14 that deferred the effective date of this guidance by one year to September 30, 2019. The FASB has issued subsequent guidance under ASC No. 606 to provide clarification of certain aspects of the original ASU. All additional guidance is being considered as part of the Company's evaluation of the revenue recognition standard. Although Management has not completed its evaluation of all the issued guidance under ASC No. 606, the Company does not currently expect the guidance to have a material effect on its financial position, results of operations or cash flows. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU enhances the reporting model for financial instruments to provide users of the financial statements with more useful information through several provisions, including the following: (1) requires equity investments, excluding investments accounted for under the equity method, be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values, (3) eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (5) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. The new guidance is effective for the Company for the annual reporting period ending September 30, 2019 and interim periods within that annual period. Management has not completed its evaluation of the new guidance. However, the Company does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, Leases. The ASU leaves the accounting for leases mostly unchanged for lessors, with the exception of targeted improvements for consistency; however, the new guidance requires lessees to recognize assets and liabilities for leases with terms of more than 12 months. The ASU also revises the definition of a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Consistent with current GAAP, the presentation and cash flows arising from a lease by a lessee will primarily depend on its classification as a finance or operating lease. In contrast, the new ASU requires both types of leases to be recognized on the balance sheet. In addition, the new guidance includes quantitative and qualitative disclosure requirements to aid financial statement users in better understanding the amount, timing and uncertainty of cash flows arising from leases. The new guidance is effective for the Company for the annual reporting period ending September 30, 2020 and interim periods within that annual period. Early adoption is permitted. Management has not completed its evaluation of the new guidance. However, the Company does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. Other accounting standards that have been issued or proposed by the FASB or other standard–setting bodies are not currently applicable to the Company or are not expected to have a significant impact on the Company’s financial position, results of operations and cash flows. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Sep. 30, 2016 | |
Regulated Operations [Abstract] | |
Regulatory Matters | REGULATORY MATTERS The SCC exercises regulatory authority over the natural gas operations of Roanoke Gas. Such regulation encompasses terms, conditions and rates to be charged to customers for natural gas service, safety standards, service extension, accounting and depreciation. On June 30, 2016, the Company filed with the SCC an application for a modification to the SAVE (Steps to Advance Virginia's Energy) Plan and Rider. The original SAVE Plan has been modified each year to incorporate certain changes and to include new projects that qualify for rate recovery under the the Plan. The SAVE Plan provides a mechanism for the Company to recover the related depreciation and expenses and return on rate base of the additional capital investment without the filing of a formal application for an increase in non-gas base rates. On October 18, 2016, the Company received approval of its application for a modification to the SAVE Plan and Rider. Under the order, the SCC approved the extension of the SAVE Plan for an additional three years through 2021, the replacement of three gas custody transfer stations and the replacement of coated steel tubing services in addition to the existing plan to replace pre-1973 plastic pipe. |
Other Investments Other Investm
Other Investments Other Investments | 12 Months Ended |
Sep. 30, 2016 | |
Other Investments [Abstract] | |
Other Investments | OTHER INVESTMENTS In October 2015, the Company, through its wholly-owned subsidiary, RGC Midstream, LLC ("Midstream"), acquired a 1% equity interest in the Mountain Valley Pipeline, LLC (the “LLC”). The LLC was established to construct and operate a natural gas pipeline originating in northern West Virginia and extending through south central Virginia. The proposed pipeline will have the capacity to transport approximately 2 million decatherms of natural gas per day. If approved by the Federal Energy Regulatory Commission, the pipeline is expected to be in service by late 2018. The total project cost is estimated to be approximately $3.5 billion. The Company's 1% equity interest in the LLC will require a total estimated investment of approximately $35 million, by periodic capital contributions throughout the design and construction phases of the project. Midstream held an approximate $3.5 million equity method investment in the LLC at September 30, 2016 . Initial funding for Midstream's investment in the LLC is provided through two unsecured Promissory Notes, each with a 5 -year term, as further described in Note 5 below. The Company will participate in the earnings generated from the transportation of natural gas through the pipeline in proportion to its level of investment. The financial statement locations of the investment in the LLC are as follows: September 30 Balance Sheet Location of Other Investments: 2016 2015 Other Assets: Investment in unconsolidated affiliate $ 3,496,404 $ — Current Liabilities: Capital contributions payable $ 287,794 $ — For the Years ended September 30 Income Statement Location of Other Investments: 2016 2015 2014 Equity in earnings of unconsolidated affiliate $ 152,864 $ — $ — |
Short-Term Debt
Short-Term Debt | 12 Months Ended |
Sep. 30, 2016 | |
Short-term Debt [Abstract] | |
Short-Term Debt | SHORT-TERM DEBT The Company has available an unsecured line-of-credit with a bank which will expire March 31, 2017 . The Company anticipates being able to extend or replace this line-of-credit upon expiration. The Company’s available unsecured line-of-credit varies during the year to accommodate its seasonal borrowing demands. Available limits under this agreement for the remaining term are as follows: Effective Available Line-of-Credit September 30, 2016 $ 24,000,000 March 1, 2017 17,000,000 A summary of the line-of-credit follows: September 30 2016 2015 2014 Line-of-credit at year-end $ 24,000,000 $ 24,000,000 $ 15,000,000 Outstanding balance at year-end 14,556,785 9,340,997 9,045,050 Highest month-end balance outstanding 15,246,089 17,366,052 9,045,050 Average daily balance 9,620,914 6,377,040 1,340,833 Average rate of interest during year on outstanding balances 1.40 % 1.17 % 1.16 % Interest rate at year-end 1.53 % 1.20 % 1.16 % Interest rate on unused line-of-credit 0.15 % 0.15 % 0.15 % Associated with the line-of-credit is a credit agreement that contains various provisions including a requirement that the Company maintain an interest coverage ratio of not less than 1.5 to 1 . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT On December 29, 2015, Midstream, a wholly-owned subsidiary of Resources, entered into a Credit Agreement (the “Agreement”) and related Promissory Notes (the “Notes”) with Union Bank & Trust and Branch Banking & Trust (collectively, the “Banks”), under which Midstream may borrow up to a total of $25 million, over a period of 5 years , with an interest rate of 30-day LIBOR plus 160 basis points. Midstream issued the Notes to provide financing for capital contributions in respect of its 1% interest in the LLC. Coinciding with Midstream's entry into the Agreement and Notes, Resources entered into a Guaranty in favor of the Banks by which it guarantees Midstream's payment and performance on the Notes. Interest on the Notes is due monthly with the outstanding balance on the Notes due in full on December 29, 2020. The Notes are unsecured. In accordance with the terms of the Agreement, at such point in time as Midstream has borrowed $17.5 million under the Notes, Midstream is required to provide the next $5 million towards its capital contributions to the LLC. Once Midstream has completed its $5 million in contributions, it may resume borrowing under the Notes up to the $25 million limit. Long-term debt consists of the following: September 30 2016 2015 Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs Roanoke Gas Company: Unsecured senior notes payable, at 4.26%, due on September 18, 2034 $ 30,500,000 $ 173,773 $ 30,500,000 $ 183,427 RGC Midstream, LLC: Unsecured term notes payable, at 30-day LIBOR plus 1.60% due December 29, 2020 3,396,200 86,376 — — Total $ 33,896,200 $ 260,149 $ 30,500,000 $ 183,427 Debt issuance costs are amortized over the life of the related debt. As of September 30, 2016 and 2015 , the Company also had an unamortized loss on the early retirement of debt of $2,055,369 and $2,169,556 , respectively, which has been deferred as a regulatory asset and is being amortized over a 20 year period. The unsecured notes payable contain various provisions, including two financial covenants. First, total long-term debt, including current maturities, shall not exceed 65% of total capitalization. Second, the Company shall not allow priority indebtedness to exceed 15% of total assets. The aggregate annual maturities of long-term debt for the next five years ending after September 30, 2016 are as follows: Year Ending September 30 Maturities 2017 $ — 2018 — 2019 — 2020 — 2021 3,396,200 Thereafter 30,500,000 Total $ 33,896,200 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The details of income tax expense are as follows: Years Ended September 30 2016 2015 2014 Current income taxes: Federal $ (1,216,745 ) $ 379,180 $ 1,789,294 State 415,975 374,541 290,458 Total current income taxes (800,770 ) 753,721 2,079,752 Deferred income taxes: Federal 4,302,906 2,289,729 687,417 State 164,048 127,112 175,464 Total deferred income taxes 4,466,954 2,416,841 862,881 Amortization of investment tax credits — — (3,093 ) Total income tax expense $ 3,666,184 $ 3,170,562 $ 2,939,540 Income tax expense for the years ended September 30, 2016 , 2015 and 2014 differed from amounts computed by applying the U.S. Federal income tax rate of 34% to earnings before income taxes due to the following: Years Ended September 30 2016 2015 2014 Income before income taxes $ 9,473,050 $ 8,264,977 $ 7,647,980 Income tax expense computed at the federal statutory rate $ 3,220,837 $ 2,810,092 $ 2,600,313 State income taxes, net of federal income tax benefit 382,815 331,091 307,509 Amortization of investment tax credits — — (3,093 ) Other, net 62,532 29,379 34,811 Total income tax expense $ 3,666,184 $ 3,170,562 $ 2,939,540 The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are as follows: September 30 2016 2015 Deferred tax assets: Allowance for uncollectibles $ 29,203 $ 20,012 Accrued pension and postretirement medical benefits 2,532,672 2,502,774 Accrued vacation 262,273 249,837 Over-recovery of gas costs 345,318 721,782 Costs of gas held in storage 1,077,849 930,524 Deferred compensation 770,868 651,336 Other 340,121 265,951 Total gross deferred tax assets 5,358,304 5,342,216 Deferred tax liabilities: Utility plant 24,264,165 19,804,862 MVP investment 40,776 — Accrued gas costs 11,217 157,385 Total gross deferred tax liabilities 24,316,158 19,962,247 Net deferred tax liability $ 18,957,854 $ 14,620,031 Current federal tax expense for fiscal 2016 reflected the effect of 50% bonus depreciation for the entire fiscal year 2016 as well as for nine months of fiscal 2015. The Protecting Americans from Tax Hikes (PATH Act), which extended 50% bonus depreciation for calendar 2015, was signed into law on December 18, 2015, subsequent to the issuance of the Company's September 30, 2015 annual report. As a result, $1,283,925 of deferred taxes that related to fiscal 2015 bonus depreciation were reflected in the current year's tax provision, thereby reducing the current tax expense and increasing deferred tax expense by the same amount. The same situation occurred in fiscal 2014 when the extension of 50% bonus depreciation was not signed into law until December 19, 2014, following the issuance of the Company's financial statements for the year ended September 30, 2014. Correspondingly, fiscal 2015 income tax expense included the tax effect of the 50% bonus depreciation for fixed asset additions during the last nine months of fiscal 2014, which resulted in $1,442,211 in deferred tax expense related to fiscal 2014 being included in fiscal 2015. The recording of the effect of the adjustments for bonus depreciation had no effect on total income tax expense, net income or earnings per share. Only the current and deferred components of income tax expense and their corresponding assets and liabilities were affected. The passage of the PATH Act provides for 50% bonus depreciation through December 31, 2017, 40% in calendar 2018 and 30% in calendar 2019 with no provision for bonus depreciation after 2019. Virginia tax law does not recognize bonus depreciation; therefore, state income taxes were not impacted by the delayed bonus depreciation extensions. FASB ASC No. 740 - Income Taxes provides for the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recognized in the financial statements. The Company has evaluated its tax positions and accordingly has not identified any significant uncertain tax positions. The Company’s policy is to classify interest associated with uncertain tax positions as interest expense in the financial statements. Penalties are classified under other expense. The Company files a consolidated federal income tax return and state income tax returns in Virginia and West Virginia. The federal returns and the state returns for both Virginia and West Virginia for the tax years ended prior to September 30, 2013 are no longer subject to examination. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The Company sponsors both a noncontributory defined benefit pension plan ("pension plan") and a postretirement benefit plan ("postretirement plan"). The pension plan covers substantially all employees and benefits fully vest after 5 years of credited service. Benefits paid to retirees are based on age at retirement, years of service and average compensation. In November 2016, the Board of Directors approved a "soft freeze" to the pension plan, whereby no employees hired on or after January 1, 2017 will be eligible to participate in the pension plan. Employees hired prior to January 1, 2017 will continue to participate in the plan and accrue benefits. The Board of Directors is also considering the implementation of a contribution to the 401(k) Plan for employees hired on or after January 1, 2017. The Company paid contribution would be equal to 3% of the employees' annual compensation. This Company contribution would be in addition to any employee elected deferrals and employer match as provided for under the 401(k) Plan. The postretirement benefit plan provides certain health care, supplemental retirement and life insurance benefits to retired employees who meet specific age and service requirements. Employees hired prior to January 1, 2000 are eligible to participate in the postretirement benefit plan. Employees must have a minimum of 10 years of service and retire after attaining the age of 55 in order to vest in the postretirement plan. Retiree contributions to the plan are based on the number of years of service to the Company as determined under the defined benefit plan. Employers who sponsor defined benefit plans must recognize the funded status of defined benefit pension and other postretirement plans as an asset or liability in its statement of financial position and recognize changes in that funded status in the year in which the changes occur through comprehensive income. For pension plans, the benefit obligation is the projected benefit obligation, and for other postretirement plans, the benefit obligation is the accumulated benefit obligation. The Company established a regulatory asset for the portion of the obligation expected to be recovered in rates in future periods. The regulatory asset is adjusted for the amortization of the transition obligation and recognition of actuarial gains and losses. The portion of the obligation attributable to the unregulated operations of the holding company is recognized in other comprehensive income. The following tables set forth the benefit obligation, fair value of plan assets, the funded status of the benefit plans, amounts recognized in the Company’s financial statements and the assumptions used. Pension Plan Postretirement Plan 2016 2015 2016 2015 Accumulated benefit obligation $ 25,090,968 $ 22,853,206 $ 18,504,710 $ 15,355,668 Change in benefit obligation: Benefit obligation at beginning of year $ 27,167,621 $ 24,636,695 $ 15,355,668 $ 14,983,169 Service cost 694,375 654,782 148,018 167,580 Interest cost 1,132,776 1,025,908 624,579 600,096 Actuarial loss 2,440,957 1,487,278 2,812,516 70,196 Benefit payments, net of retiree contributions (1,940,779 ) (637,042 ) (436,071 ) (465,373 ) Benefit obligation at end of year $ 29,494,950 $ 27,167,621 $ 18,504,710 $ 15,355,668 Change in fair value of plan assets: Fair value of plan assets at beginning of year $ 21,394,399 $ 20,514,179 $ 10,443,629 $ 10,646,249 Actual return on plan assets, net of taxes 2,159,437 (182,738 ) 615,225 (237,247 ) Employer contributions 1,500,000 1,700,000 500,000 500,000 Benefit payments, net of retiree contributions (1,940,779 ) (637,042 ) (436,071 ) (465,373 ) Fair value of plan assets at end of year $ 23,113,057 $ 21,394,399 $ 11,122,783 $ 10,443,629 Funded status $ (6,381,893 ) $ (5,773,222 ) $ (7,381,927 ) $ (4,912,039 ) Amounts recognized in the balance sheets consist of: Noncurrent liabilities $ (6,381,893 ) $ (5,773,222 ) $ (7,381,927 ) $ (4,912,039 ) Amounts recognized in accumulated other comprehensive loss: Net actuarial loss, net of tax 1,583,345 1,694,924 913,886 591,621 Total amounts included in other comprehensive loss, net of tax $ 1,583,345 $ 1,694,924 $ 913,886 $ 591,621 Amounts deferred to a regulatory asset: Net actuarial loss 6,732,800 5,280,756 5,563,642 3,628,448 Amounts recognized as regulatory assets $ 6,732,800 $ 5,280,756 $ 5,563,642 $ 3,628,448 Effective with the valuation of the September 30, 2015 defined benefit obligations, the Company adopted the RP-2014 Mortality Tables as issued by the Society of Actuaries in late 2014. The adoption of the new tables, which reflected an increase in assumed life expectancy, increased the September 30, 2015 pension liability by an estimated $1,300,000 and the postretirement liability by an estimated $1,000,000 . During 2016, the Company offered a one-time, lump sum pay out option for vested, terminated employees not currently receiving payments under the pension plan. The lump sum offer was accepted by 40 of the 63 eligible participants. In September, the pension plan distributed $1,241,529 to the participants electing to receive the lump sum payments, which resulted in a corresponding reduction of approximately $1,500,000 in the projected pension obligation. The Company expects that approximately $256,000 before tax, of accumulated other comprehensive loss will be recognized as a portion of net periodic benefit costs in fiscal 2017 and approximately $836,000 of amounts deferred as regulatory assets will be amortized and recognized in net periodic benefit costs in fiscal 2017. The following table details the actuarial assumptions used in determining the projected benefit obligations and net benefit cost of the pension and the accumulated benefit obligations and net benefit cost of the postretirement plan for 2016 , 2015 and 2014 . Pension Plan Postretirement Plan 2016 2015 2014 2016 2015 2014 Assumptions used to determine benefit obligations: Discount rate 3.42 % 4.22 % 4.22 % 3.33 % 4.15 % 4.10 % Expected rate of compensation increase 4.00 % 4.00 % 4.00 % N/A N/A N/A Assumptions used to determine benefit costs: Discount rate 4.22 % 4.22 % 4.82 % 4.15 % 4.10 % 4.73 % Expected long-term rate of return on plan assets 7.00 % 7.00 % 7.00 % 4.89 % 4.90 % 4.92 % Expected rate of compensation increase 4.00 % 4.00 % 4.00 % N/A N/A N/A To develop the expected long-term rate of return on assets assumption, the Company, with input from the plans' actuaries and investment advisors, considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of each plan’s portfolio. Components of net periodic benefit cost are as follows: Pension Plan Postretirement Plan 2016 2015 2014 2016 2015 2014 Service cost $ 694,375 $ 654,782 $ 553,291 $ 148,018 $ 167,580 $ 168,634 Interest cost 1,132,776 1,025,908 1,020,302 624,579 600,096 602,684 Expected return on plan assets (1,492,241 ) (1,440,846 ) (1,312,354 ) (507,858 ) (516,656 ) (496,476 ) Recognized loss 501,678 257,378 136,394 250,173 197,058 89,515 Net periodic benefit cost $ 836,588 $ 497,222 $ 397,633 $ 514,912 $ 448,078 $ 364,357 The assumed health care cost trend rates used in measuring the accumulated benefit obligation for the postretirement medical plan as of September 30, 2016 , 2015 and 2014 are presented below: Pre 65 Post 65 2016 2015 2014 2016 2015 2014 Health care cost trend rate assumed for next year 7.50 % 8.00 % 8.50 % 5.00 % 5.00 % 5.00 % Rate to which the cost trend is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % 5.00 % 5.00 % 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2021 2021 2021 2016 2015 2014 The health care cost trend rate assumptions could have a significant effect on the amounts reported. A change of 1% would have the following effects: 1% Increase 1% Decrease Effect on total service and interest cost components $ 137,000 $ (109,000 ) Effect on accumulated postretirement benefit obligation 3,083,000 (2,491,000 ) The primary objectives of the Plan’s investment policy are to maintain investment portfolios that diversify risk through prudent asset allocation parameters, achieve asset returns that meet or exceed the plans’ actuarial assumptions, achieve asset returns that are competitive with like institutions employing similar investment strategies and meet expected future benefits in both the short-term and long-term. The investment policy provides for a range of investment allocations to allow for flexibility in responding to market conditions. The investment policy is periodically reviewed by the Company and a third-party investment advisor. The Company’s target and actual asset allocation in the pension and postretirement benefit plans as of September 30, 2016 and 2015 were: Pension Plan Postretirement Target 2016 2015 Target 2016 2015 Asset category: Equity securities 60 % 63 % 64 % 50 % 52 % 52 % Debt securities 40 % 36 % 35 % 50 % 47 % 47 % Cash — % 1 % 1 % — % — % 1 % Other — % — % — % — % 1 % — % The assets of the plans are invested in mutual funds. The Company uses the fair value hierarchy described in Note 1 to classify these assets. The mutual funds are included under Level 2 in the fair value hierarchy as their fair values are determined based on individual prices for each security that comprises the mutual funds. Most of the individual investments are determined based on quoted market prices for each security; however, certain fixed income securities and other investments are not actively traded and are valued based on similar investments. The following table contains the fair value classifications of the benefit plan assets: Defined Benefit Pension Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 117,265 $ 117,265 $ — $ — Common and Collective Trust and Pooled Funds: Bonds Domestic Fixed Income 4,497,373 — 4,497,373 — Equities Domestic Large Cap Growth 3,426,041 — 3,426,041 — Domestic Large Cap Value 4,543,385 — 4,543,385 — Domestic Small/Mid Cap Core 2,149,566 — 2,149,566 — Foreign Large Cap Value 1,795,897 — 1,795,897 — Mutual Funds: Bonds Domestic Fixed Income 3,615,209 — 3,615,209 — Foreign Fixed Income 234,622 — 234,622 — Equities Domestic Large Cap Growth 1,043,395 — 1,043,395 — Foreign Large Cap Growth 366,420 — 366,420 — Foreign Large Cap Value 373,480 — 373,480 — Foreign Large Cap Core 950,404 — 950,404 — Total $ 23,113,057 $ 117,265 $ 22,995,792 $ — Defined Benefit Pension Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 106,502 $ 106,502 $ — $ — Common and Collective Trust and Pooled Funds: Bonds Domestic Fixed Income 3,996,246 — 3,996,246 — Equities Domestic Large Cap Growth 3,150,561 — 3,150,561 — Domestic Large Cap Value 4,183,172 — 4,183,172 — Domestic Small/Mid Cap Core 1,937,613 — 1,937,613 — Foreign Large Cap Value 1,873,313 — 1,873,313 — Mutual Funds: Bonds Domestic Fixed Income 3,313,331 — 3,313,331 — Foreign Fixed Income 213,118 — 213,118 — Equities Domestic Large Cap Growth 1,030,957 — 1,030,957 — Foreign Large Cap Value 653,276 — 653,276 — Foreign Large Cap Core 936,310 — 936,310 — Total $ 21,394,399 $ 106,502 $ 21,287,897 $ — Postretirement Benefit Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 43,455 $ 43,455 $ — $ — Mutual Funds Bonds Domestic Fixed Income 5,109,834 — 5,109,834 — Foreign Fixed Income 87,821 — 87,821 — Equities Domestic Large Cap Growth 1,824,796 — 1,824,796 — Domestic Large Cap Value 1,770,664 — 1,770,664 — Domestic Small/Mid Cap Growth 195,319 — 195,319 — Domestic Small/Mid Cap Value 198,884 — 198,884 — Domestic Small/Mid Cap Core 427,409 — 427,409 — Foreign Large Cap Value 964,827 — 964,827 — Foreign Large Cap Core 456,100 — 456,100 — Other 43,674 — 43,674 — Total $ 11,122,783 $ 43,455 $ 11,079,328 $ — Postretirement Benefit Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 58,749 $ 58,749 $ — $ — Mutual Funds Bonds Domestic Fixed Income 4,845,174 — 4,845,174 — Foreign Fixed Income 38,654 — 38,654 — Equities Domestic Large Cap Growth 1,746,621 — 1,746,621 — Domestic Large Cap Value 1,638,695 — 1,638,695 — Domestic Small/Mid Cap Growth 194,260 — 194,260 — Domestic Small/Mid Cap Value 186,344 — 186,344 — Domestic Small/Mid Cap Core 417,980 — 417,980 — Foreign Large Cap Value 893,115 — 893,115 — Foreign Large Cap Core 378,596 — 378,596 — Other 45,441 — 45,441 — Total $ 10,443,629 $ 58,749 $ 10,384,880 $ — Each mutual fund has been categorized based on its primary investment strategy. The Company expects to contribute $750,000 to its pension plan and $1,000,000 to its postretirement benefit plan in fiscal 2017. The following table reflects expected future benefit payments: Fiscal year ending September 30 Pension Postretirement 2017 $ 774,312 $ 642,842 2018 836,309 656,790 2019 910,261 679,876 2020 983,917 705,769 2021 1,048,990 747,426 2022-2026 6,613,848 4,226,050 The Company also sponsors a defined contribution plan (the “401k Plan”) covering all employees who elect to participate. Employees may contribute from 1% to 50% of their annual compensation to the 401k Plan, limited to a maximum annual amount as set periodically by the Internal Revenue Service. The Company matches 100% of the participant’s first 4% of contributions and 50% on the next 2% of contributions. Company matching contributions were $353,793 , $338,896 and $330,241 for 2016 , 2015 and 2014 , respectively. |
Common Stock Options
Common Stock Options | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common Stock Options | COMMON STOCK OPTIONS The Company’s stockholders approved the RGC Resources, Inc. Key Employee Stock Option Plan (“KESOP”). The KESOP provides for the issuance of common stock options to officers and certain other full-time salaried employees to acquire shares of the Company’s common stock. As of September 30, 2016 , the number of shares available for future grants was 41,000 . FASB ASC No. 718 - Compensation - Stock Compensation requires that compensation expense be recognized for the issuance of equity instruments to employees. During the fiscal years ended 2016 , 2015 and 2014 , the Board approved stock option grants to certain officers. As required by the KESOP, each option's exercise price per share equaled the fair value of the Company's common stock on the grant date. Pursuant to the Plan, the options vest over a six -month period and are exercisable over a ten -year period from the date of issuance. As the Company's stock options are not traded on the open market, the fair value of each grant is estimated on the date of grant using the Black-Scholes option pricing model including the following assumptions: Years Ended September 30, 2016 2015 2014 Expected volatility 28.78% 34.34% 35.01% Expected dividends 3.99% 4.11% 4.21% Expected exercise term (years) 7.00 7.00 7.00 Risk-free interest rate 2.10% 1.98% 2.23% The underlying methods regarding each assumption are as follows: Expected volatility is based on the historical volatilities of the daily closing price of the Company's common stock. Expected dividend rate is based on historical dividend payout trends. Expected exercise term is based on the average time historical option grants were outstanding before being exercised. Risk-free interest rate is based on the 7 -year Treasury rate on the date of option grant. Forfeitures are recognized when they occur. Stock option transactions under the Company's plans for the years ended September 30, 2016 , 2015 and 2014 are summarized below: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Terms (years) Aggregate Intrinsic Value 1 Options outstanding, September 30, 2013 21,000 $ 19.01 9.5 $ 5,229 Options granted 17,000 18.95 Options exercised — — Options expired — — Options forfeited — — Options outstanding, September 30, 2014 38,000 18.98 8.8 34,840 Options granted 17,000 21.60 Options exercised (2,600 ) 18.99 Options expired — — Options forfeited — — Options outstanding, September 30, 2015 52,400 19.83 8.3 43,086 Options granted 16,000 21.22 Options exercised (2,200 ) 18.98 Options expired — — Options forfeited (8,000 ) 19.80 Options outstanding, September 30, 2016 58,200 $ 20.25 7.8 $ 200,211 Vested and exercisable at September 30, 2016 58,200 $ 20.25 7.8 $ 200,211 1 Aggregate intrinsic value includes only those options where the exercise price is below the market price. The weighted-average grant-date fair value of options granted during the years ended September 30, 2016 , 2015 and 2014 was $4.04 , $4.92 and $4.43 , respectively. The intrinsic value of the options exercised during fiscal 2016 and 2015 was $8,418 and $5,624 , respectively. The Company recognized $64,640 , $83,640 and $75,310 in stock option expense in fiscal 2016 , 2015 and 2014 , respectively. The Company received $41,762 and $49,366 from the exercise of options in 2016 and 2015. No options were exercised in 2014 . |
Other Stock Plans
Other Stock Plans | 12 Months Ended |
Sep. 30, 2016 | |
Other Stock Plans [Abstract] | |
Other Stock Plans | OTHER STOCK PLANS Dividend Reinvestment and Stock Purchase Plan The Company offers a Dividend Reinvestment and Stock Purchase Plan (the “DRIP”) to shareholders of record for the reinvestment of dividends and the purchase of up to $40,000 per year in additional shares of common stock of the Company. Under the DRIP, the Company issued 34,764 , 8,431 and 7 shares in 2016 , 2015 and 2014 , respectively. As of September 30, 2016 , the Company had 323,613 shares of stock available for issuance under the DRIP. Restricted Stock Plan The Board of Directors of the Company implemented the Restricted Stock Plan for Outside Directors (the “Plan”) effective January 27, 1997. Under the Plan, a minimum of 40% of the monthly retainer fee paid to each non-employee director of Resources was paid in shares of common stock (“Restricted Stock”). The number of shares of Restricted Stock awarded each month is determined based on the closing sales price of Resources' common stock on the NASDAQ Global Market on the first business day of the month. The Restricted Stock issued under the Plan vests only in the case of a participant's death, disability, retirement, or in the event of a change in control of Resources. The Restricted Stock may not be sold, transferred, assigned or pledged by the participant until the shares have vested under the terms of the Plan. The shares of Restricted Stock will be forfeited to Resources by a participant's voluntary resignation during his or her term on the Board or removal for cause as a director. Effective October 1, 2016, the Board of Directors amended the Plan to remove the requirement that directors take a minimum 40% of their retainer in Restricted Stock for those directors who owned at least 10,000 shares of Resources stock. The Company assumes all directors will complete their term and there will be no forfeiture of the Restricted Stock. Since the inception of the Plan, no director has forfeited any shares of Restricted Stock. The Company recognizes as compensation the market value of the Restricted Stock in the period it is issued. The following table reflects the director compensation activity pursuant to the Restricted Stock Plan: 2016 2015 2014 Shares Weighted-Average Fair Value on Date of Grant Shares Weighted-Average Fair Value on Date of Grant Shares Weighted-Average Fair Value on Date of Grant Beginning of year balance 66,915 $ 14.70 62,844 $ 14.29 59,064 $ 13.97 Granted 4,433 22.18 4,071 20.88 3,780 19.37 Vested — — — — — — Forfeited — — — — — — End of year balance 71,348 $ 15.16 66,915 $ 14.70 62,844 $ 14.29 The fair market value of the Restricted Stock issued as compensation during fiscal 2016 , 2015 and 2014 was $98,334 , $85,000 and $73,200 . No Restricted Stock vested or was forfeited during fiscal 2016 , 2015 and 2014 . As of September 30, 2016 , the Company had 63,008 shares available for issuance under the Restricted Stock Plan. Stock Bonus Plan Under the Stock Bonus Plan, executive officers are encouraged to own a position in the Company’s common stock of at least 50% of the value of their annual salary. To promote this policy, the Plan provides that all officers with stock ownership positions below 50% of the value of their annual salaries must, unless approved by the Committee, use no less than 50% of any performance bonus to purchase Company common stock. Shares from the Stock Bonus Plan may also be issued to certain employees and management personnel in recognition of their performance and service. Under the Stock Bonus Plan, the Company issued 1,875 , 2,731 and 4,098 shares valued at $39,819 , $59,332 and $78,841 , respectively, in 2016 , 2015 and 2014 . As of September 30, 2016 the Company had 6,299 shares of stock available for issuance under the Stock Bonus Plan. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Long-Term Contracts Due to the nature of the natural gas distribution business, the Company enters into agreements with both suppliers and pipelines to contract for natural gas commodity purchases, storage capacity and pipeline delivery capacity. The Company obtains most of its regulated natural gas supply through an asset management contract between Roanoke Gas and a third party asset manager. The Company utilizes an asset manager to optimize the use of its transportation, storage rights, and gas supply inventories which helps to ensure a secure and reliable source of natural gas. Under the current asset management contract, the Company has designated the asset manager to act as agent for the Company's storage capacity and all gas balances in storage. The Company retains ownership of gas in storage. Under provisions of this contract, the Company is obligated to purchase its winter storage requirements from the asset manager during the spring and summer injection periods at market price. The table below details the volumetric obligations as of September 30, 2016 for the remainder of the contract period. The current asset management contract will expire in March 2018. Year Natural Gas Contracts 2016-2017 2,071,061 2017-2018 295,866 Total 2,366,927 The Company also has contracts for pipeline and storage capacity which extend for various periods. These capacity costs and related fees are valued at tariff rates in place as of September 30, 2016 . These rates may increase or decrease in the future based upon rate filings and rate orders granting a rate change to the pipeline or storage operator. Roanoke Gas expended approximately $24,852,000 , $33,405,000 and $44,884,000 under the asset management, pipeline and storage contracts in fiscal years 2016 , 2015 and 2014 , respectively. The table below details the pipeline and storage capacity obligations as of September 30, 2016 for the remainder of the contract period. Year Pipeline and 2016-2017 $ 10,474,339 2017-2018 8,784,004 2018-2019 7,215,235 2019-2020 4,800,201 2020-2021 2,476,475 Thereafter 2,682,848 Total $ 36,433,102 Other Contracts The Company maintains other agreements in the ordinary course of business covering various lease, maintenance, equipment and service contracts. These agreements currently extend through December 2031 and are not material to the Company. Legal From time to time, the Company may become involved in litigation or claims arising out of its operations in the normal course of business. At the current time, the Company is not known to be a party to any legal proceedings that would be expected to have a materially adverse impact on its financial position, results of operations or cash flows. Environmental Matters Both Roanoke Gas and a previously owned gas subsidiary operated manufactured gas plants (MGPs) as a source of fuel for lighting and heating until the early 1950’s. A by-product of operating MGPs was coal tar, and the potential exists for tar waste contaminants at the former plant sites. While the Company does not currently recognize any commitments or contingencies related to environmental costs at either site, should the Company ever be required to remediate either site, it will pursue all prudent and reasonable means to recover any related costs, including the use of insurance claims and regulatory approval for rate case recognition of expenses associated with any work required. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The following table summarizes the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and the fair value measurements by level within the fair value hierarchy as defined in Note 1 as of September 30, 2016 and 2015 , respectively: Fair Value Measurements - September 30, 2016 Fair Value Quoted Prices in Significant Other Significant Liabilities: Natural gas purchases $ 1,052,930 $ — $ 1,052,930 $ — Total $ 1,052,930 $ — $ 1,052,930 $ — Fair Value Measurements - September 30, 2015 Fair Value Quoted Prices in Significant Other Significant Liabilities: Natural gas purchases $ 712,710 $ — $ 712,710 $ — Total $ 712,710 $ — $ 712,710 $ — Under the asset management contract, a timing difference can exist between the payment for natural gas purchases and the actual receipt of such purchases. Payments are made based on a predetermined monthly volume with the price based on the weighted average first of the month index prices corresponding to the month of the scheduled payment. At September 30, 2016 and 2015 , the Company had recorded in accounts payable the estimated fair value of the liability determined on the corresponding first of month index prices for which the liability was expected to be settled. The Company’s nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis consist of its asset retirement obligations. The asset retirement obligations are measured at fair value at initial recognition based on expected future cash flows to settle the obligation. The carrying value of cash and cash equivalents, accounts receivable, borrowings under line-of-credit, accounts payable (with the exception of the timing difference under the asset management contract), customer credit balances and customer deposits is a reasonable estimate of fair value due to the short-term nature of these financial instruments. The following table summarizes the fair value of the Company’s financial assets and liabilities that are not adjusted to fair value in the financial statements as of September 30, 2016 and 2015 . Fair Value Measurements - September 30, 2016 Carrying Quoted Prices in Significant Other Significant Liabilities: Long-term debt $ 33,896,200 $ — $ — $ 36,163,523 Total $ 33,896,200 $ — $ — $ 36,163,523 Fair Value Measurements - September 30, 2015 Carrying Quoted Prices in Significant Other Significant Liabilities: Long-term debt $ 30,500,000 $ — $ — $ 28,570,585 Total $ 30,500,000 $ — $ — $ 28,570,585 The fair value of long-term debt for Roanoke Gas is estimated by discounting the future cash flows of the fixed rate debt based on the underlying 20 -year Treasury rate and estimated credit spread extrapolated based on market conditions since the issuance of the debt. A 52 basis point drop in the 20 -year Treasury combined with a reduction in the assumed credit spreads accounted for the increase in the fair value of the fixed rate debt. The fair value for the RGC Midstream debt is estimated by discounting the estimated credit spread extrapolated based on market conditions. FASB ASC 825 – Financial Instruments requires disclosures regarding concentrations of credit risk from financial instruments. Cash equivalents are investments in high-grade, short-term securities (original maturity less than three months), placed with financially sound institutions. Accounts receivable are from a diverse group of customers including individuals and small and large companies in various industries. The Company maintains certain credit standards with its customers and requires a customer deposit if such evaluation warrants. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Quarterly financial data for the years ended September 30, 2016 and 2015 is summarized as follows: 2016 First Second Third Fourth Operating revenues $ 16,010,056 $ 21,777,773 $ 11,295,197 $ 9,980,265 Gross margin $ 8,738,116 $ 10,649,269 $ 6,312,340 $ 5,865,189 Operating income $ 3,498,052 $ 5,444,314 $ 1,453,350 $ 816,376 Net income $ 1,922,790 $ 3,111,447 $ 627,068 $ 145,561 Earnings per share of common stock: Basic $ 0.40 $ 0.65 $ 0.13 $ 0.03 Diluted $ 0.40 $ 0.65 $ 0.13 $ 0.03 2015 First Second Third Fourth Operating revenues $ 21,250,065 $ 26,431,729 $ 10,774,409 $ 9,733,404 Gross margin $ 8,622,143 $ 10,213,770 $ 5,961,828 $ 5,408,692 Operating income $ 3,514,352 $ 4,879,469 $ 956,219 $ 656,152 Net income $ 1,924,376 $ 2,779,344 $ 354,940 $ 35,755 Earnings per share of common stock: Basic $ 0.41 $ 0.59 $ 0.08 $ 0.01 Diluted $ 0.41 $ 0.59 $ 0.07 $ 0.01 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On November 1, 2016, Roanoke Gas entered into a 5 -year unsecured note with Branch Banking and Trust in the principal amount of $7,000,000 . The note is variable rate with interest based on 30-day LIBOR plus 90 basis points. In addition, Roanoke Gas also entered into a swap agreement to convert the variable rate debt into a fixed-rate instrument with an annual interest rate of 2.30% . The swap agreement is effective November 1, 2017, with the monthly interest rate floating until the swap period begins. The proceeds from the note will be used to convert a portion of the Company's line-of-credit balance into longer-term financing. The Company has evaluated subsequent events through the date the financial statements were issued. There were no other items not otherwise disclosed which would have materially impacted the Company’s consolidated financial statements. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation —RGC Resources, Inc. is an energy services company primarily engaged in the sale and distribution of natural gas. The consolidated financial statements include the accounts of RGC Resources, Inc. and its wholly owned subsidiaries (“Resources” or the “Company”): Roanoke Gas Company (“Roanoke Gas”); Diversified Energy Company; RGC Ventures of Virginia, Inc., operating as Application Resources and The Utility Consultants; and RGC Midstream, LLC. Roanoke Gas is a natural gas utility, which distributes and sells natural gas to approximately 59,600 residential, commercial and industrial customers within its service areas in Roanoke, Virginia and the surrounding localities. The Company’s business is seasonal in nature as a majority of natural gas sales are for space heating during the winter season. Roanoke Gas is regulated by the Virginia State Corporation Commission (“SCC” or “Virginia Commission”). RGC Ventures of Virginia, Inc. was dissolved in 2016 after Application Resources, which provided information system services to software providers in the utility industry, ceased operations in 2016, and The Utility Consultants, which provided regulatory consulting services to other utilities, ceased operations in 2015. RGC Midstream, LLC is a wholly-owned subsidiary created in 2015 to invest in the Mountain Valley pipeline project. Diversified Energy Company is currently inactive. The Company follows accounting and reporting standards established by the Financial Accounting Standards Board (“FASB”) and the Securities and Exchange Commission (“SEC”). Resources has only one reportable segment as defined under FASB ASC No. 280 – Segment Reporting . All intercompany transactions have been eliminated in consolidation. |
Rate Regulated Basis of Accounting | Rate Regulated Basis of Accounting —The Company’s regulated operations follow the accounting and reporting requirements of FASB ASC No. 980, Regulated Operations . The economic effects of regulation can result in a regulated company deferring costs that have been or are expected to be recovered from customers in a period different from the period in which the costs would be charged to expense by an unregulated enterprise. When this situation occurs, costs are deferred as assets in the consolidated balance sheet (regulatory assets) and recorded as expenses when such amounts are reflected in rates. Additionally, regulators can impose liabilities upon a regulated company for amounts previously collected from customers and for current collection in rates of costs that are expected to be incurred in the future (regulatory liabilities). In the event the provisions of FASB ASC No. 980 no longer apply to any or all regulatory assets or liabilities, the Company would write off such amounts and include them in the consolidated statements of income and comprehensive income in the period for which FASB ASC No. 980 no longer applied. |
Utility Plant and Depreciation | Utility Plant and Depreciation —Utility plant is stated at original cost and includes direct labor and materials, contractor costs, and all allocable overhead charges. The Company applies the group method of accounting, where the costs of like assets are aggregated and depreciated by applying a rate based on the average expected useful life of the assets. In accordance with Company policy, expenditures for depreciable assets with a life greater than one year are capitalized, along with any upgrades or improvements to existing assets, when they significantly improve or extend the original expected useful life of an asset. Expenditures for maintenance, repairs, and minor renewals and betterments are expensed as incurred. The original cost of depreciable property retired is removed from utility plant and charged to accumulated depreciation. The cost of asset removals, less salvage, is charged to “regulatory cost of retirement obligations” or “asset retirement obligations” as explained under Asset Retirement Obligations below. Utility plant is composed of the following major classes of assets: Years Ended September 30 2016 2015 Distribution and transmission $ 160,354,300 $ 143,172,628 LNG storage 12,594,294 12,501,179 General and miscellaneous 12,628,692 12,359,225 Total utility plant in service $ 185,577,286 $ 168,033,032 Provisions for depreciation are computed principally at composite straight-line rates over periods ranging from 5 to 76 years . Rates are determined by depreciation studies which are required to be performed at least every 5 years on the regulated utility assets of Roanoke Gas. The Company completed its last depreciation study in June 2014. The composite weighted-average depreciation rate realized using the most recently completed depreciation study was 3.25% for each of the fiscal years ended September 30, 2016, 2015 and 2014. The composite rates are composed of two components, one based on average service life and one based on cost of retirement. As a result, the Company accrues the estimated cost of retirement of long-lived assets through depreciation expense. Retirement costs are not a legal obligation but rather the result of cost-based regulation and are accounted for under the provisions of FASB ASC No. 980. Such amounts are classified as a regulatory liability. The Company reviews long-lived assets and certain identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These reviews have not identified any impairments which would have a material effect on the results of operations or financial condition. |
Asset Retirement Obligations | Asset Retirement Obligations —FASB ASC No. 410, Asset Retirement and Environmental Obligations , requires entities to record the fair value of a liability for an asset retirement obligation when there exists a legal obligation for the retirement of the asset. When the liability is initially recorded, the entity capitalizes the cost, thereby increasing the carrying amount of the underlying asset. In subsequent periods, the liability is accreted, and the capitalized cost is depreciated over the useful life of the underlying asset. The Company has recorded asset retirement obligations for its future legal obligations related to purging and capping its distribution mains and services upon retirement, although the timing of such retirements is uncertain. The Company’s composite depreciation rates include a component to provide for the cost of retirement of assets. As a result, the Company accrues the estimated cost of retirement of its utility plant through depreciation expense and creates a corresponding regulatory liability. The costs of retirement considered in the development of the depreciation component include those costs associated with the legal liability. Therefore, the asset retirement obligation is reclassified from the regulatory cost of retirement obligation. If the legal obligations were to exceed the regulatory liability provided for in the depreciation rates, the Company would establish a regulatory asset for such difference with the anticipation of future recovery through rates charged to customers. In 2016, the Company increased its asset retirement obligation to reflect revisions to the estimated cash flows for asset retirements. |
Cash, Cash Equivalents and Short-Term Investments | Cash, Cash Equivalents and Short-Term Investments —From time to time, the Company will have balances on deposit at banks in excess of the amount insured by the Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses on these accounts and does not consider these amounts to be at credit risk. As of September 30, 2016 , the Company did not have any bank deposits in excess of the FDIC insurance limits. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. |
Customer Receivables and Allowance for Doubtful Accounts | Customer Receivables and Allowance for Doubtful Accounts —Accounts receivable include amounts billed to customers for natural gas sales and related services and gas sales occurring subsequent to normal billing cycles but before the end of the period. The Company provides an estimate for losses on these receivables by utilizing historical information, current account balances, account aging and current economic conditions. Customer accounts are charged off annually when deemed uncollectible or when turned over to a collection agency for action. |
Financing Receivables | Financing Receivables —Financing receivables represent a contractual right to receive money either on demand or on fixed or determinable dates and are recognized as assets on the entity’s balance sheet. Trade receivables are the Company's one primary type of financing receivables, resulting from the sale of natural gas and other services to its customers. These receivable are short-term in nature with a provision for uncollectible balances included in the financial statements. |
Inventories | Inventories —Inventories, consisting of natural gas in storage and materials and supplies, are recorded at average cost. Injections into storage are priced at the purchase cost at the time of injection and withdrawals from storage are priced at the weighted average price in storage. Materials and supplies are removed from inventory at average cost. |
Unbilled Revenues | Unbilled Revenues —The Company bills its natural gas customers on a monthly cycle; however, the billing cycle period for most customers does not coincide with the accounting periods used for financial reporting. As the Company recognizes revenue when gas is delivered, an accrual is made to estimate revenues for natural gas delivered to customers but not billed during the accounting period. |
Income Taxes | Income Taxes —Income taxes are accounted for using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the years in which those temporary differences are expected to be recovered or settled. A valuation allowance against deferred tax assets is provided if it is more likely than not the deferred tax asset will not be realized. The Company and its subsidiaries file state and federal consolidated income tax returns. |
Debt Expenses | Debt Expenses —Debt issuance expenses are deferred and amortized over the lives of the debt instruments. The unamortized balances are offset against the carrying value of long-term debt. |
Over/Under-Recovery of Natural Gas Costs | Over/Under-Recovery of Natural Gas Costs —Pursuant to the provisions of the Company’s Purchased Gas Adjustment (“PGA”) clause, the SCC provides the Company with a method of passing along to its customers increases or decreases in natural gas costs incurred by its regulated operations, including gains and losses on natural gas derivative hedging instruments. On a quarterly basis, the Company files a PGA rate adjustment request with the SCC to adjust the gas cost component of its rates up or down depending on projected price and activity. Once administrative approval is received, the Company adjusts the gas cost component of its rates to reflect the approved amount. As actual costs will differ from the projections used in establishing the PGA rate, the Company may either over-recover or under-recover its actual gas costs during the period. Any difference between actual costs incurred and costs recovered through the application of the PGA is recorded as a regulatory asset or liability. At the end of the deferral period, the balance of the net deferred charge or credit is amortized over an ensuing 12 -month period as amounts are reflected in customer billings. |
Fair Value | Fair Value —Fair value 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. The Company determines fair value based on the following fair value hierarchy which prioritizes each input to the valuation methods into one of the following three broad levels: • Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 – Inputs other than quoted prices in Level 1 that are either for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 – Unobservable inputs for the asset or liability where there is little, if any, market activity which require the Company to develop its own assumptions. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). All fair value disclosures are categorized within one of the three categories in the hierarchy. See fair value disclosures below and in Notes 7 and 11. |
Use of Estimates | Use of Estimates —The preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Excise and Sales Taxes | Excise and Sales Taxes —Certain excise and sales taxes imposed by the state and local governments in the Company’s service territory are collected by the Company from its customers. These taxes are accounted for on a net basis and therefore are not included as revenues in the Company’s Consolidated Statements of Income. |
Earnings Per Share | Earnings Per Share —Basic earnings per share and diluted earnings per share are calculated by dividing net income by the weighted-average common shares outstanding during the period and the weighted-average common shares outstanding during the period plus dilutive potential common shares, respectively. Dilutive potential common shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all options are used to repurchase common stock at market value. The amount of shares remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities. |
Business and Credit Concentrations | Business and Credit Concentrations — The primary business of the Company is the distribution of natural gas to residential, commercial and industrial customers in its service territories. No sales to individual customers accounted for more than 5% of total revenue in any period or amounted to more than 5% of total accounts receivable. Roanoke Gas currently holds the only franchises and certificates of public convenience and necessity to distribute natural gas in its service area. These franchises are effective through January 1, 2036 . The Company's current certificates of public convenience and necessity in Virginia are exclusive and are intended for perpetual duration. Roanoke Gas is served directly by two primary pipelines that provide all of the natural gas supplied to the Company’s customers. Depending upon weather conditions and the level of customer demand, failure of one or both of these transmission pipelines could have a major adverse impact on the Company. |
Derivative and Hedging Activities | Derivative and Hedging Activities —FASB ASC No. 815, Derivatives and Hedging , requires the recognition of all derivative instruments as assets or liabilities in the Company’s balance sheet and measurement of those instruments at fair value. The Company’s hedging and derivatives policy allows management to enter into derivatives for the purpose of managing commodity and financial market risks of its business operations. The Company’s hedging and derivatives policy specifically prohibits the use of derivatives for speculative purposes. The key market risks that RGC Resources, Inc. hedges against include the price of natural gas and the cost of borrowed funds. The Company historically has entered into collars, swaps and caps for the purpose of hedging the price of natural gas in order to provide price stability during the winter months. The fair value of these instruments is recorded in the balance sheet with the offsetting entry to either under-recovery of gas costs or over-recovery of gas costs. Net income and other comprehensive income are not affected by the change in market value as any cost incurred or benefit received from these instruments is recoverable or refunded through the PGA as the SCC allows for full recovery of prudent costs associated with natural gas purchases. At September 30, 2016 and 2015 , the Company had no outstanding derivative instruments for the purchase of natural gas. The Company also had two interest rate swaps that essentially converted its variable interest rate notes to fixed rate debt instruments. Both swaps were terminated in September 2014 as part of the Company's debt refinancing. These swaps qualified as cash flow hedges with changes in fair value reported in other comprehensive income. No derivative instruments were deemed to be ineffective for any period presented. |
Non-Cash Activity | Non-Cash Activity — Non-cash increase in investment in unconsolidated affiliate and corresponding increase in capital contributions payable of $287,794 . |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards —In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The Company previously recognized debt issuance costs in assets and amortized those costs over the term of the debt. This guidance is effective for the Company for the annual reporting period ending September 30, 2017 and interim periods within that annual period. Early application is permitted. The Company adopted the ASU in the period ended September 30, 2015. The adoption of this ASU did not have any effect on the Company's results of operations or cash flows; however, the unamortized balance of debt issuance costs were reclassified from assets to an offset against long-term debt. Certain deferred costs related to the early retirement of debt in 2014 are classified as regulatory assets and are not offset against debt. In November 2015, the FASB issued ASU 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes . The ASU requires that all deferred tax assets and liabilities be presented as noncurrent and eliminates prior guidance to classify and present deferred tax assets and liabilities as current and noncurrent. This ASU is effective for the Company for the annual reporting period ended September 30, 2018 and interim periods within that annual period. Early application is permitted. The Company adopted this ASU for the quarter ended December 31, 2015. The Company applied the retrospective approach in adopting this ASU and reclassified $2,293,536 previously reflected as a current deferred income tax asset against the balance of the non-current deferred tax liability in the September 30, 2015 consolidated balance sheet. There was no other impact to the Company’s financial position, results of operations or cash flows. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting . The guidance simplifies several aspects of the accounting for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The new guidance is effective for the Company for the annual reporting period ending September 30, 2018 and interim periods within that annual period. Early adoption is permitted. The Company adopted this ASU for the quarter ended September 30, 2016. Under the prior guidance, excess tax benefits were to be tracked in an APIC pool and not recognized in the income statement. Tax deficiencies were netted against the accumulated APIC pool and only recognized in the income statement starting at the time tax deficiencies exceeded the pool. Under ASU 2016-09, the APIC pool is eliminated with all excess tax benefits and deficiencies recognized in income tax expense on the income statement. Prior to the adoption of this ASU, stock option activity did not result in the accumulation of an APIC pool; therefore, adopting the ASU had minimal impact on the Company’s current financial position, results of operations or cash flows and no impact on prior results. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards —In May 2014, the FASB issued guidance under FASB ASC No. 606 - Revenue from Contracts with Customers that affects any entity that enters into contracts with customers for the transfer of goods or services or transfer of non-financial assets. This guidance supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when, or as, the entity satisfies the performance obligation. The new guidance is effective for the Company for the annual reporting period ending September 30, 2018 and interim periods within that annual period. Early application was not permitted. In August 2015, the FASB issued ASU 2015-14 that deferred the effective date of this guidance by one year to September 30, 2019. The FASB has issued subsequent guidance under ASC No. 606 to provide clarification of certain aspects of the original ASU. All additional guidance is being considered as part of the Company's evaluation of the revenue recognition standard. Although Management has not completed its evaluation of all the issued guidance under ASC No. 606, the Company does not currently expect the guidance to have a material effect on its financial position, results of operations or cash flows. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU enhances the reporting model for financial instruments to provide users of the financial statements with more useful information through several provisions, including the following: (1) requires equity investments, excluding investments accounted for under the equity method, be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values, (3) eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (5) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. The new guidance is effective for the Company for the annual reporting period ending September 30, 2019 and interim periods within that annual period. Management has not completed its evaluation of the new guidance. However, the Company does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, Leases. The ASU leaves the accounting for leases mostly unchanged for lessors, with the exception of targeted improvements for consistency; however, the new guidance requires lessees to recognize assets and liabilities for leases with terms of more than 12 months. The ASU also revises the definition of a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Consistent with current GAAP, the presentation and cash flows arising from a lease by a lessee will primarily depend on its classification as a finance or operating lease. In contrast, the new ASU requires both types of leases to be recognized on the balance sheet. In addition, the new guidance includes quantitative and qualitative disclosure requirements to aid financial statement users in better understanding the amount, timing and uncertainty of cash flows arising from leases. The new guidance is effective for the Company for the annual reporting period ending September 30, 2020 and interim periods within that annual period. Early adoption is permitted. Management has not completed its evaluation of the new guidance. However, the Company does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. Other accounting standards that have been issued or proposed by the FASB or other standard–setting bodies are not currently applicable to the Company or are not expected to have a significant impact on the Company’s financial position, results of operations and cash flows. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Regulatory Assets | Regulatory assets and liabilities included in the Company’s consolidated balance sheets as of September 30, 2016 and 2015 are as follows: September 30 2016 2015 Regulatory Assets: Current Assets: Accounts receivable: Accrued WNA revenues $ 148,663 $ 229,281 Other: Accrued pension and postretirement medical 835,704 530,781 Utility Property: In service: Other 11,945 11,945 Other Assets: Regulatory assets: Premium on early retirement of debt 2,055,369 2,169,556 Accrued pension and postretirement medical 11,460,738 8,378,419 Other 816,344 375,268 Total regulatory assets $ 15,328,763 $ 11,695,250 Regulatory Liabilities: Current Liabilities: Over-recovery of gas costs $ 909,687 $ 1,901,426 Accrued expenses: Over-recovery of SAVE Plan revenues 238,694 153,365 Deferred Credits and Other Liabilities: Asset retirement obligations 5,682,556 5,295,868 Regulatory cost of retirement obligations 9,348,443 8,885,486 Total regulatory liabilities $ 16,179,380 $ 16,236,145 |
Schedule of Regulatory Liabilities | Regulatory assets and liabilities included in the Company’s consolidated balance sheets as of September 30, 2016 and 2015 are as follows: September 30 2016 2015 Regulatory Assets: Current Assets: Accounts receivable: Accrued WNA revenues $ 148,663 $ 229,281 Other: Accrued pension and postretirement medical 835,704 530,781 Utility Property: In service: Other 11,945 11,945 Other Assets: Regulatory assets: Premium on early retirement of debt 2,055,369 2,169,556 Accrued pension and postretirement medical 11,460,738 8,378,419 Other 816,344 375,268 Total regulatory assets $ 15,328,763 $ 11,695,250 Regulatory Liabilities: Current Liabilities: Over-recovery of gas costs $ 909,687 $ 1,901,426 Accrued expenses: Over-recovery of SAVE Plan revenues 238,694 153,365 Deferred Credits and Other Liabilities: Asset retirement obligations 5,682,556 5,295,868 Regulatory cost of retirement obligations 9,348,443 8,885,486 Total regulatory liabilities $ 16,179,380 $ 16,236,145 |
Schedule of Utility Plant | Utility plant is composed of the following major classes of assets: Years Ended September 30 2016 2015 Distribution and transmission $ 160,354,300 $ 143,172,628 LNG storage 12,594,294 12,501,179 General and miscellaneous 12,628,692 12,359,225 Total utility plant in service $ 185,577,286 $ 168,033,032 |
Summary of Asset Retirement Obligation | The following is a summary of the asset retirement obligation: Years Ended September 30 2016 2015 Beginning balance $ 5,295,868 $ 4,802,015 Liabilities incurred 85,263 62,890 Liabilities settled (176,090 ) (162,072 ) Accretion 310,568 281,762 Revisions to estimated cash flows 166,947 311,273 Ending balance $ 5,682,556 $ 5,295,868 |
Reconciliation of Changes in Allowance for Doubtful Accounts | A reconciliation of changes in the allowance for doubtful accounts is as follows: Years Ended September 30 2016 2015 2014 Beginning balance $ 52,721 $ 70,747 $ 68,539 Provision for doubtful accounts 14,074 87,908 148,881 Recoveries of accounts written off 137,055 139,282 136,369 Accounts written off (126,916 ) (245,216 ) (283,042 ) Ending balance $ 76,934 $ 52,721 $ 70,747 |
Reconciliation of Basic and Diluted Earnings Per Share | A reconciliation of basic and diluted earnings per share is presented below: Years Ended September 30 2016 2015 2014 Net Income $ 5,806,866 $ 5,094,415 $ 4,708,440 Weighted-average common shares 4,766,604 4,728,210 4,715,478 Effect of dilutive securities: Options to purchase common stock 6,571 3,466 804 Diluted average common shares 4,773,175 4,731,676 4,716,282 Earnings Per Share of Common Stock: Basic $ 1.22 $ 1.08 $ 1.00 Diluted $ 1.22 $ 1.08 $ 1.00 |
Summary of Other Comprehensive Income | A summary of other comprehensive income is provided below: Before Tax Amount Tax (Expense) or Benefit Net of Tax Amount Year Ended September 30, 2016: Defined benefit plans: Net loss arising during period $ (560,887 ) $ 213,137 $ (347,750 ) Amortization of actuarial losses 221,070 (84,006 ) 137,064 Other comprehensive loss $ (339,817 ) $ 129,131 $ (210,686 ) Year Ended September 30, 2015: Defined benefit plans: Net loss arising during period $ (1,910,573 ) $ 726,017 $ (1,184,556 ) Amortization of actuarial losses 60,221 (22,884 ) 37,337 Other comprehensive loss $ (1,850,352 ) $ 703,133 $ (1,147,219 ) Year Ended September 30, 2014: Interest rate swaps: Unrealized losses $ (58,800 ) $ 22,321 $ (36,479 ) Transfer of realized losses to interest expense 926,262 (351,609 ) 574,653 Transfer of realized losses to regulatory asset 1,119,233 (424,861 ) 694,372 Net interest rate swaps 1,986,695 (754,149 ) 1,232,546 Defined benefit plans: Net loss arising during period (397,714 ) 151,131 (246,583 ) Amortization of actuarial losses 41,846 (15,901 ) 25,945 Net defined benefit plans (355,868 ) 135,230 (220,638 ) Other comprehensive income $ 1,630,827 $ (618,919 ) $ 1,011,908 |
Components of Accumulated Comprehensive Income (Loss) | Composition of Accumulated Other Comprehensive Income (Loss): Interest Rate Swaps Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) Balance September 30, 2013 $ (1,232,546 ) $ (918,688 ) $ (2,151,234 ) Other comprehensive income (loss) 1,232,546 (220,638 ) 1,011,908 Balance September 30, 2014 — (1,139,326 ) (1,139,326 ) Other comprehensive income (loss) — (1,147,219 ) (1,147,219 ) Balance September 30, 2015 — (2,286,545 ) (2,286,545 ) Other comprehensive income (loss) — (210,686 ) (210,686 ) Balance September 30, 2016 $ — $ (2,497,231 ) $ (2,497,231 ) |
Other Investments Other Inves24
Other Investments Other Investments (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Other Investments [Abstract] | |
Investment | The financial statement locations of the investment in the LLC are as follows: September 30 Balance Sheet Location of Other Investments: 2016 2015 Other Assets: Investment in unconsolidated affiliate $ 3,496,404 $ — Current Liabilities: Capital contributions payable $ 287,794 $ — For the Years ended September 30 Income Statement Location of Other Investments: 2016 2015 2014 Equity in earnings of unconsolidated affiliate $ 152,864 $ — $ — |
Short-Term Debt (Tables)
Short-Term Debt (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Short-term Debt [Abstract] | |
Summary of Available Limits Under Line of Credit Agreement | Available limits under this agreement for the remaining term are as follows: Effective Available Line-of-Credit September 30, 2016 $ 24,000,000 March 1, 2017 17,000,000 |
Summary of Line of Credit | A summary of the line-of-credit follows: September 30 2016 2015 2014 Line-of-credit at year-end $ 24,000,000 $ 24,000,000 $ 15,000,000 Outstanding balance at year-end 14,556,785 9,340,997 9,045,050 Highest month-end balance outstanding 15,246,089 17,366,052 9,045,050 Average daily balance 9,620,914 6,377,040 1,340,833 Average rate of interest during year on outstanding balances 1.40 % 1.17 % 1.16 % Interest rate at year-end 1.53 % 1.20 % 1.16 % Interest rate on unused line-of-credit 0.15 % 0.15 % 0.15 % |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: September 30 2016 2015 Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs Roanoke Gas Company: Unsecured senior notes payable, at 4.26%, due on September 18, 2034 $ 30,500,000 $ 173,773 $ 30,500,000 $ 183,427 RGC Midstream, LLC: Unsecured term notes payable, at 30-day LIBOR plus 1.60% due December 29, 2020 3,396,200 86,376 — — Total $ 33,896,200 $ 260,149 $ 30,500,000 $ 183,427 |
Summary of Aggregate Annual Maturities of Long-Term Debt | The aggregate annual maturities of long-term debt for the next five years ending after September 30, 2016 are as follows: Year Ending September 30 Maturities 2017 $ — 2018 — 2019 — 2020 — 2021 3,396,200 Thereafter 30,500,000 Total $ 33,896,200 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Details of Income Tax Expense | The details of income tax expense are as follows: Years Ended September 30 2016 2015 2014 Current income taxes: Federal $ (1,216,745 ) $ 379,180 $ 1,789,294 State 415,975 374,541 290,458 Total current income taxes (800,770 ) 753,721 2,079,752 Deferred income taxes: Federal 4,302,906 2,289,729 687,417 State 164,048 127,112 175,464 Total deferred income taxes 4,466,954 2,416,841 862,881 Amortization of investment tax credits — — (3,093 ) Total income tax expense $ 3,666,184 $ 3,170,562 $ 2,939,540 |
Reconciliation of Income Tax Expense Based on Federal Statutory Rate | Income tax expense for the years ended September 30, 2016 , 2015 and 2014 differed from amounts computed by applying the U.S. Federal income tax rate of 34% to earnings before income taxes due to the following: Years Ended September 30 2016 2015 2014 Income before income taxes $ 9,473,050 $ 8,264,977 $ 7,647,980 Income tax expense computed at the federal statutory rate $ 3,220,837 $ 2,810,092 $ 2,600,313 State income taxes, net of federal income tax benefit 382,815 331,091 307,509 Amortization of investment tax credits — — (3,093 ) Other, net 62,532 29,379 34,811 Total income tax expense $ 3,666,184 $ 3,170,562 $ 2,939,540 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are as follows: September 30 2016 2015 Deferred tax assets: Allowance for uncollectibles $ 29,203 $ 20,012 Accrued pension and postretirement medical benefits 2,532,672 2,502,774 Accrued vacation 262,273 249,837 Over-recovery of gas costs 345,318 721,782 Costs of gas held in storage 1,077,849 930,524 Deferred compensation 770,868 651,336 Other 340,121 265,951 Total gross deferred tax assets 5,358,304 5,342,216 Deferred tax liabilities: Utility plant 24,264,165 19,804,862 MVP investment 40,776 — Accrued gas costs 11,217 157,385 Total gross deferred tax liabilities 24,316,158 19,962,247 Net deferred tax liability $ 18,957,854 $ 14,620,031 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Changes in Benefit Obligations and Fair Value of Plan Assets, Funded Status of the Plan, and Amount Recognized in the Financial Statements | The following tables set forth the benefit obligation, fair value of plan assets, the funded status of the benefit plans, amounts recognized in the Company’s financial statements and the assumptions used. Pension Plan Postretirement Plan 2016 2015 2016 2015 Accumulated benefit obligation $ 25,090,968 $ 22,853,206 $ 18,504,710 $ 15,355,668 Change in benefit obligation: Benefit obligation at beginning of year $ 27,167,621 $ 24,636,695 $ 15,355,668 $ 14,983,169 Service cost 694,375 654,782 148,018 167,580 Interest cost 1,132,776 1,025,908 624,579 600,096 Actuarial loss 2,440,957 1,487,278 2,812,516 70,196 Benefit payments, net of retiree contributions (1,940,779 ) (637,042 ) (436,071 ) (465,373 ) Benefit obligation at end of year $ 29,494,950 $ 27,167,621 $ 18,504,710 $ 15,355,668 Change in fair value of plan assets: Fair value of plan assets at beginning of year $ 21,394,399 $ 20,514,179 $ 10,443,629 $ 10,646,249 Actual return on plan assets, net of taxes 2,159,437 (182,738 ) 615,225 (237,247 ) Employer contributions 1,500,000 1,700,000 500,000 500,000 Benefit payments, net of retiree contributions (1,940,779 ) (637,042 ) (436,071 ) (465,373 ) Fair value of plan assets at end of year $ 23,113,057 $ 21,394,399 $ 11,122,783 $ 10,443,629 Funded status $ (6,381,893 ) $ (5,773,222 ) $ (7,381,927 ) $ (4,912,039 ) Amounts recognized in the balance sheets consist of: Noncurrent liabilities $ (6,381,893 ) $ (5,773,222 ) $ (7,381,927 ) $ (4,912,039 ) Amounts recognized in accumulated other comprehensive loss: Net actuarial loss, net of tax 1,583,345 1,694,924 913,886 591,621 Total amounts included in other comprehensive loss, net of tax $ 1,583,345 $ 1,694,924 $ 913,886 $ 591,621 Amounts deferred to a regulatory asset: Net actuarial loss 6,732,800 5,280,756 5,563,642 3,628,448 Amounts recognized as regulatory assets $ 6,732,800 $ 5,280,756 $ 5,563,642 $ 3,628,448 |
Schedule of Actuarial Assumptions Used | The following table details the actuarial assumptions used in determining the projected benefit obligations and net benefit cost of the pension and the accumulated benefit obligations and net benefit cost of the postretirement plan for 2016 , 2015 and 2014 . Pension Plan Postretirement Plan 2016 2015 2014 2016 2015 2014 Assumptions used to determine benefit obligations: Discount rate 3.42 % 4.22 % 4.22 % 3.33 % 4.15 % 4.10 % Expected rate of compensation increase 4.00 % 4.00 % 4.00 % N/A N/A N/A Assumptions used to determine benefit costs: Discount rate 4.22 % 4.22 % 4.82 % 4.15 % 4.10 % 4.73 % Expected long-term rate of return on plan assets 7.00 % 7.00 % 7.00 % 4.89 % 4.90 % 4.92 % Expected rate of compensation increase 4.00 % 4.00 % 4.00 % N/A N/A N/A |
Schedule of Components of Net Periodic Benefit Cost | Components of net periodic benefit cost are as follows: Pension Plan Postretirement Plan 2016 2015 2014 2016 2015 2014 Service cost $ 694,375 $ 654,782 $ 553,291 $ 148,018 $ 167,580 $ 168,634 Interest cost 1,132,776 1,025,908 1,020,302 624,579 600,096 602,684 Expected return on plan assets (1,492,241 ) (1,440,846 ) (1,312,354 ) (507,858 ) (516,656 ) (496,476 ) Recognized loss 501,678 257,378 136,394 250,173 197,058 89,515 Net periodic benefit cost $ 836,588 $ 497,222 $ 397,633 $ 514,912 $ 448,078 $ 364,357 |
Summary of Assumed Health Care Cost Trend Rates Used | The assumed health care cost trend rates used in measuring the accumulated benefit obligation for the postretirement medical plan as of September 30, 2016 , 2015 and 2014 are presented below: Pre 65 Post 65 2016 2015 2014 2016 2015 2014 Health care cost trend rate assumed for next year 7.50 % 8.00 % 8.50 % 5.00 % 5.00 % 5.00 % Rate to which the cost trend is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % 5.00 % 5.00 % 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2021 2021 2021 2016 2015 2014 |
Effect of a 1% Change in Health Care Cost Trend Rate Assumptions | The health care cost trend rate assumptions could have a significant effect on the amounts reported. A change of 1% would have the following effects: 1% Increase 1% Decrease Effect on total service and interest cost components $ 137,000 $ (109,000 ) Effect on accumulated postretirement benefit obligation 3,083,000 (2,491,000 ) |
Schedule of Target and Actual Asset Allocation | The Company’s target and actual asset allocation in the pension and postretirement benefit plans as of September 30, 2016 and 2015 were: Pension Plan Postretirement Target 2016 2015 Target 2016 2015 Asset category: Equity securities 60 % 63 % 64 % 50 % 52 % 52 % Debt securities 40 % 36 % 35 % 50 % 47 % 47 % Cash — % 1 % 1 % — % — % 1 % Other — % — % — % — % 1 % — % |
Summary of Fair Value Classifications of Benefit Plan Assets | The following table contains the fair value classifications of the benefit plan assets: Defined Benefit Pension Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 117,265 $ 117,265 $ — $ — Common and Collective Trust and Pooled Funds: Bonds Domestic Fixed Income 4,497,373 — 4,497,373 — Equities Domestic Large Cap Growth 3,426,041 — 3,426,041 — Domestic Large Cap Value 4,543,385 — 4,543,385 — Domestic Small/Mid Cap Core 2,149,566 — 2,149,566 — Foreign Large Cap Value 1,795,897 — 1,795,897 — Mutual Funds: Bonds Domestic Fixed Income 3,615,209 — 3,615,209 — Foreign Fixed Income 234,622 — 234,622 — Equities Domestic Large Cap Growth 1,043,395 — 1,043,395 — Foreign Large Cap Growth 366,420 — 366,420 — Foreign Large Cap Value 373,480 — 373,480 — Foreign Large Cap Core 950,404 — 950,404 — Total $ 23,113,057 $ 117,265 $ 22,995,792 $ — Defined Benefit Pension Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 106,502 $ 106,502 $ — $ — Common and Collective Trust and Pooled Funds: Bonds Domestic Fixed Income 3,996,246 — 3,996,246 — Equities Domestic Large Cap Growth 3,150,561 — 3,150,561 — Domestic Large Cap Value 4,183,172 — 4,183,172 — Domestic Small/Mid Cap Core 1,937,613 — 1,937,613 — Foreign Large Cap Value 1,873,313 — 1,873,313 — Mutual Funds: Bonds Domestic Fixed Income 3,313,331 — 3,313,331 — Foreign Fixed Income 213,118 — 213,118 — Equities Domestic Large Cap Growth 1,030,957 — 1,030,957 — Foreign Large Cap Value 653,276 — 653,276 — Foreign Large Cap Core 936,310 — 936,310 — Total $ 21,394,399 $ 106,502 $ 21,287,897 $ — Postretirement Benefit Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 43,455 $ 43,455 $ — $ — Mutual Funds Bonds Domestic Fixed Income 5,109,834 — 5,109,834 — Foreign Fixed Income 87,821 — 87,821 — Equities Domestic Large Cap Growth 1,824,796 — 1,824,796 — Domestic Large Cap Value 1,770,664 — 1,770,664 — Domestic Small/Mid Cap Growth 195,319 — 195,319 — Domestic Small/Mid Cap Value 198,884 — 198,884 — Domestic Small/Mid Cap Core 427,409 — 427,409 — Foreign Large Cap Value 964,827 — 964,827 — Foreign Large Cap Core 456,100 — 456,100 — Other 43,674 — 43,674 — Total $ 11,122,783 $ 43,455 $ 11,079,328 $ — Postretirement Benefit Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 58,749 $ 58,749 $ — $ — Mutual Funds Bonds Domestic Fixed Income 4,845,174 — 4,845,174 — Foreign Fixed Income 38,654 — 38,654 — Equities Domestic Large Cap Growth 1,746,621 — 1,746,621 — Domestic Large Cap Value 1,638,695 — 1,638,695 — Domestic Small/Mid Cap Growth 194,260 — 194,260 — Domestic Small/Mid Cap Value 186,344 — 186,344 — Domestic Small/Mid Cap Core 417,980 — 417,980 — Foreign Large Cap Value 893,115 — 893,115 — Foreign Large Cap Core 378,596 — 378,596 — Other 45,441 — 45,441 — Total $ 10,443,629 $ 58,749 $ 10,384,880 $ — |
Schedule of Expected Future Benefit Payments | The following table reflects expected future benefit payments: Fiscal year ending September 30 Pension Postretirement 2017 $ 774,312 $ 642,842 2018 836,309 656,790 2019 910,261 679,876 2020 983,917 705,769 2021 1,048,990 747,426 2022-2026 6,613,848 4,226,050 |
Common Stock Options (Tables)
Common Stock Options (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Fair Value of Stock Options | As the Company's stock options are not traded on the open market, the fair value of each grant is estimated on the date of grant using the Black-Scholes option pricing model including the following assumptions: Years Ended September 30, 2016 2015 2014 Expected volatility 28.78% 34.34% 35.01% Expected dividends 3.99% 4.11% 4.21% Expected exercise term (years) 7.00 7.00 7.00 Risk-free interest rate 2.10% 1.98% 2.23% |
Schedule of Stock Option Transactions | Stock option transactions under the Company's plans for the years ended September 30, 2016 , 2015 and 2014 are summarized below: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Terms (years) Aggregate Intrinsic Value 1 Options outstanding, September 30, 2013 21,000 $ 19.01 9.5 $ 5,229 Options granted 17,000 18.95 Options exercised — — Options expired — — Options forfeited — — Options outstanding, September 30, 2014 38,000 18.98 8.8 34,840 Options granted 17,000 21.60 Options exercised (2,600 ) 18.99 Options expired — — Options forfeited — — Options outstanding, September 30, 2015 52,400 19.83 8.3 43,086 Options granted 16,000 21.22 Options exercised (2,200 ) 18.98 Options expired — — Options forfeited (8,000 ) 19.80 Options outstanding, September 30, 2016 58,200 $ 20.25 7.8 $ 200,211 Vested and exercisable at September 30, 2016 58,200 $ 20.25 7.8 $ 200,211 1 Aggregate intrinsic value includes only those options where the exercise price is below the market price. |
Other Stock Plans (Tables)
Other Stock Plans (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Other Stock Plans [Abstract] | |
Director Compensation Activity | The following table reflects the director compensation activity pursuant to the Restricted Stock Plan: 2016 2015 2014 Shares Weighted-Average Fair Value on Date of Grant Shares Weighted-Average Fair Value on Date of Grant Shares Weighted-Average Fair Value on Date of Grant Beginning of year balance 66,915 $ 14.70 62,844 $ 14.29 59,064 $ 13.97 Granted 4,433 22.18 4,071 20.88 3,780 19.37 Vested — — — — — — Forfeited — — — — — — End of year balance 71,348 $ 15.16 66,915 $ 14.70 62,844 $ 14.29 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Volumetric Obligation | |
Schedule of Volumetric and Pipeline and Storage Capacity Obligations | The table below details the volumetric obligations as of September 30, 2016 for the remainder of the contract period. The current asset management contract will expire in March 2018. Year Natural Gas Contracts 2016-2017 2,071,061 2017-2018 295,866 Total 2,366,927 |
Pipeline and Storage Capacity Obligation | |
Schedule of Volumetric and Pipeline and Storage Capacity Obligations | The table below details the pipeline and storage capacity obligations as of September 30, 2016 for the remainder of the contract period. Year Pipeline and 2016-2017 $ 10,474,339 2017-2018 8,784,004 2018-2019 7,215,235 2019-2020 4,800,201 2020-2021 2,476,475 Thereafter 2,682,848 Total $ 36,433,102 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis | The following table summarizes the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and the fair value measurements by level within the fair value hierarchy as defined in Note 1 as of September 30, 2016 and 2015 , respectively: Fair Value Measurements - September 30, 2016 Fair Value Quoted Prices in Significant Other Significant Liabilities: Natural gas purchases $ 1,052,930 $ — $ 1,052,930 $ — Total $ 1,052,930 $ — $ 1,052,930 $ — Fair Value Measurements - September 30, 2015 Fair Value Quoted Prices in Significant Other Significant Liabilities: Natural gas purchases $ 712,710 $ — $ 712,710 $ — Total $ 712,710 $ — $ 712,710 $ — |
Summary of the Fair Value of Financial Assets and Liabilities Not Adjusted to Fair Value | The following table summarizes the fair value of the Company’s financial assets and liabilities that are not adjusted to fair value in the financial statements as of September 30, 2016 and 2015 . Fair Value Measurements - September 30, 2016 Carrying Quoted Prices in Significant Other Significant Liabilities: Long-term debt $ 33,896,200 $ — $ — $ 36,163,523 Total $ 33,896,200 $ — $ — $ 36,163,523 Fair Value Measurements - September 30, 2015 Carrying Quoted Prices in Significant Other Significant Liabilities: Long-term debt $ 30,500,000 $ — $ — $ 28,570,585 Total $ 30,500,000 $ — $ — $ 28,570,585 |
Quarterly Financial Informati33
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | Quarterly financial data for the years ended September 30, 2016 and 2015 is summarized as follows: 2016 First Second Third Fourth Operating revenues $ 16,010,056 $ 21,777,773 $ 11,295,197 $ 9,980,265 Gross margin $ 8,738,116 $ 10,649,269 $ 6,312,340 $ 5,865,189 Operating income $ 3,498,052 $ 5,444,314 $ 1,453,350 $ 816,376 Net income $ 1,922,790 $ 3,111,447 $ 627,068 $ 145,561 Earnings per share of common stock: Basic $ 0.40 $ 0.65 $ 0.13 $ 0.03 Diluted $ 0.40 $ 0.65 $ 0.13 $ 0.03 2015 First Second Third Fourth Operating revenues $ 21,250,065 $ 26,431,729 $ 10,774,409 $ 9,733,404 Gross margin $ 8,622,143 $ 10,213,770 $ 5,961,828 $ 5,408,692 Operating income $ 3,514,352 $ 4,879,469 $ 956,219 $ 656,152 Net income $ 1,924,376 $ 2,779,344 $ 354,940 $ 35,755 Earnings per share of common stock: Basic $ 0.41 $ 0.59 $ 0.08 $ 0.01 Diluted $ 0.41 $ 0.59 $ 0.07 $ 0.01 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Sep. 30, 2016USD ($)pipelineinstruments_heldsegmentcustomer | Sep. 30, 2015USD ($)instruments_held | Sep. 30, 2014instruments_held | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers | customer | 59,600 | ||
Number of reportable segments | segment | 1 | ||
Remaining amount of regulatory assets that did not earn a return during the recovery period | $ 13,261,449 | ||
Regulatory utility assets provision, review period | 5 years | ||
Composite weighted-average depreciation rate | 3.25% | 3.25% | 3.25% |
Unbilled revenue | $ 1,004,061 | $ 1,001,418 | |
Deferred charges, amortization period | 12 months | ||
Number of pipelines | pipeline | 2 | ||
Non-cash change in investment in unconsolidated affiliate | $ 287,794 | ||
Accounting Standards Update 2015-17 | New Accounting Pronouncement, Early Adoption, Effect | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Reclassified current deferred tax asset | $ 2,293,536 | ||
Natural Gas | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of derivative instruments | instruments_held | 0 | 0 | |
Interest Rate Swap | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of derivative instruments | instruments_held | 2 | ||
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life (in years) | 5 years | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life (in years) | 76 years | ||
Percentage Of Total Revenue From A Single Customer | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 5.00% | ||
Percentage Of Accounts Receivable From A Single Customer | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 5.00% |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Schedule of Regulatory Assets and Liabilities) (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Regulatory Assets And Liabilities [Line Items] | ||
Noncurrent regulatory assets | $ 14,332,451 | $ 10,923,243 |
Total regulatory assets | 15,328,763 | 11,695,250 |
Total regulatory liabilities | 16,179,380 | 16,236,145 |
Over-recovery of Gas Costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Current regulatory liabilities | 909,687 | 1,901,426 |
Over-recovery of SAVE Plan Revenues | ||
Regulatory Assets And Liabilities [Line Items] | ||
Current regulatory liabilities | 238,694 | 153,365 |
Asset Retirement Obligations | ||
Regulatory Assets And Liabilities [Line Items] | ||
Noncurrent regulatory liabilities | 5,682,556 | 5,295,868 |
Regulatory cost of retirement obligations | ||
Regulatory Assets And Liabilities [Line Items] | ||
Noncurrent regulatory liabilities | 9,348,443 | 8,885,486 |
Accrued WNA Revenues | ||
Regulatory Assets And Liabilities [Line Items] | ||
Current regulatory assets | 148,663 | 229,281 |
Accrued Pension and Postretirement Medical | ||
Regulatory Assets And Liabilities [Line Items] | ||
Current regulatory assets | 835,704 | 530,781 |
Noncurrent regulatory assets | 11,460,738 | 8,378,419 |
Utility Property, In Service, Other | ||
Regulatory Assets And Liabilities [Line Items] | ||
Noncurrent regulatory assets | 11,945 | 11,945 |
Premium on Early Retirement of Debt | ||
Regulatory Assets And Liabilities [Line Items] | ||
Noncurrent regulatory assets | 2,055,369 | 2,169,556 |
Other | ||
Regulatory Assets And Liabilities [Line Items] | ||
Noncurrent regulatory assets | $ 816,344 | $ 375,268 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Components of Utility Plant) (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Distribution and transmission | $ 160,354,300 | $ 143,172,628 |
LNG storage | 12,594,294 | 12,501,179 |
General and miscellaneous | 12,628,692 | 12,359,225 |
Total utility plant in service | $ 185,577,286 | $ 168,033,032 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Summary of Asset Retirement Obligations) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning balance | $ 5,295,868 | $ 4,802,015 |
Liabilities incurred | 85,263 | 62,890 |
Liabilities settled | (176,090) | (162,072) |
Accretion | 310,568 | 281,762 |
Revisions to estimated cash flows | 166,947 | 311,273 |
Ending balance | $ 5,682,556 | $ 5,295,868 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Reconciliation of Changes in Allowance for Doubtful Accounts) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 52,721 | $ 70,747 | $ 68,539 |
Provision for doubtful accounts | 14,074 | 87,908 | 148,881 |
Recoveries of accounts written off | 137,055 | 139,282 | 136,369 |
Accounts written off | (126,916) | (245,216) | (283,042) |
Ending balance | $ 76,934 | $ 52,721 | $ 70,747 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Reconciliation of Basic and Diluted Earnings Per Share) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||
Net income | $ 145,561 | $ 627,068 | $ 3,111,447 | $ 1,922,790 | $ 35,755 | $ 354,940 | $ 2,779,344 | $ 1,924,376 | $ 5,806,866 | $ 5,094,415 | $ 4,708,440 |
Weighted-average common shares (in shares) | 4,766,604 | 4,728,210 | 4,715,478 | ||||||||
Effect of dilutive securities: | |||||||||||
Options to purchase common stock (in shares) | 6,571 | 3,466 | 804 | ||||||||
Diluted average common shares (in shares) | 4,773,175 | 4,731,676 | 4,716,282 | ||||||||
Earnings Per Share of Common Stock: | |||||||||||
Basic (in usd per share) | $ 0.03 | $ 0.13 | $ 0.65 | $ 0.40 | $ 0.01 | $ 0.08 | $ 0.59 | $ 0.41 | $ 1.22 | $ 1.08 | $ 1 |
Diluted (in usd per share) | $ 0.03 | $ 0.13 | $ 0.65 | $ 0.40 | $ 0.01 | $ 0.07 | $ 0.59 | $ 0.41 | $ 1.22 | $ 1.08 | $ 1 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Summary of Other Comprehensive Income) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Before Tax Amount | |||
Net gain (loss) arising during period | $ (560,887) | $ (1,910,573) | $ (397,714) |
Amortization of actuarial losses | 221,070 | 60,221 | 41,846 |
Net defined benefit plans | (355,868) | ||
Unrealized losses | (58,800) | ||
Transfer of realized losses to interest expense | 926,262 | ||
Transfer of realized losses to regulatory asset | 1,119,233 | ||
Net interest rate swaps | 1,986,695 | ||
Other comprehensive income (loss) | (339,817) | (1,850,352) | 1,630,827 |
Tax (Expense) or Benefit | |||
Net gain (loss) arising during period | 213,137 | 726,017 | 151,131 |
Amortization of actuarial losses | (84,006) | (22,884) | (15,901) |
Net defined benefit plans | 135,230 | ||
Unrealized losses | 22,321 | ||
Transfer of realized losses to interest expense | (351,609) | ||
Transfer of realized losses to regulatory asset | (424,861) | ||
Net interest rate swaps | (754,149) | ||
Other comprehensive income (loss) | 129,131 | 703,133 | (618,919) |
Net of Tax Amount | |||
Net gain (loss) arising during period | (347,750) | (1,184,556) | (246,583) |
Amortization of actuarial losses | 137,064 | 37,337 | 25,945 |
Net defined benefit plans | (210,686) | (1,147,219) | (220,638) |
Unrealized losses | (36,479) | ||
Transfer of realized losses to interest expense | 574,653 | ||
Transfer of realized losses to regulatory asset | 694,372 | ||
Net interest rate swaps | 0 | 0 | 1,232,546 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | $ (210,686) | $ (1,147,219) | $ 1,011,908 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Components of Accumulated Comprehensive Income (Loss)) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest Rate Swaps | |||
Balance at beginning of period | $ 0 | $ 0 | $ (1,232,546) |
Other comprehensive income (loss) | 0 | 0 | 1,232,546 |
Balance at end of period | 0 | 0 | 0 |
Defined Benefit Plans | |||
Balance at beginning of period | (2,286,545) | (1,139,326) | (918,688) |
Other comprehensive income (loss) | (210,686) | (1,147,219) | (220,638) |
Balance at end of period | (2,497,231) | (2,286,545) | (1,139,326) |
Accumulated Other Comprehensive Income (Loss) | |||
Balance at beginning of period | (2,286,545) | (1,139,326) | (2,151,234) |
Other comprehensive income | (210,686) | (1,147,219) | 1,011,908 |
Balance at end of period | $ (2,497,231) | $ (2,286,545) | $ (1,139,326) |
Regulatory Matters (Details)
Regulatory Matters (Details) | 12 Months Ended |
Sep. 30, 2016 | |
Regulated Operations [Abstract] | |
Additional years approved for SAVE Plan | 3 years |
Number of gas transfer station replacements approved | 3 |
Other Investments Other Inves43
Other Investments Other Investments (Narrative) (Details) Bcf in Millions | 12 Months Ended | ||
Sep. 30, 2016USD ($)debt_instrumentBcf | Dec. 29, 2015 | Sep. 30, 2015USD ($) | |
Investment [Line Items] | |||
Investments unconsolidated affiliate | $ 3,496,404 | $ 0 | |
Promissory Notes term | 20 years | ||
RGC Midstream, LLC | |||
Investment [Line Items] | |||
Equity interest (as a percent) | 1.00% | 1.00% | |
Pipeline capacity (in bcf per day) | Bcf | 2 | ||
Total project cost | $ 3,500,000,000 | ||
Total estimated investment | 35,000,000 | ||
Investments unconsolidated affiliate | $ 3,496,404 | ||
Number of unsecured Promissory Notes funding the investment | debt_instrument | 2 | ||
Promissory Notes term | 5 years |
Other Investments Other Inves44
Other Investments Other Investments (Schedule of Other Investments) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Investments [Abstract] | |||
Investment in unconsolidated affiliate | $ 3,496,404 | $ 0 | |
Capital contributions payable | 287,794 | 0 | |
Equity in earnings of unconsolidated affiliate | $ 152,864 | $ 0 | $ 0 |
Short-Term Debt (Narrative) (De
Short-Term Debt (Narrative) (Details) | 12 Months Ended |
Sep. 30, 2016 | |
Short-term Debt [Abstract] | |
Minimum interest coverage ratio | 1.5 |
Short-Term Debt (Summary of Ava
Short-Term Debt (Summary of Available Limits Under Line of Credit Agreement) (Details) | Sep. 30, 2016USD ($) |
September 30, 2016 | |
Short-term Debt [Line Items] | |
Available Line-of-Credit | $ 24,000,000 |
March 1, 2017 | |
Short-term Debt [Line Items] | |
Available Line-of-Credit | $ 17,000,000 |
Short-Term Debt (Summary of Lin
Short-Term Debt (Summary of Line-Of-Credit) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Short-term Debt [Abstract] | |||
Line-of-credit at year-end | $ 24,000,000 | $ 24,000,000 | $ 15,000,000 |
Outstanding balance at year-end | 14,556,785 | 9,340,997 | 9,045,050 |
Highest month-end balance outstanding | 15,246,089 | 17,366,052 | 9,045,050 |
Average daily balance | $ 9,620,914 | $ 6,377,040 | $ 1,340,833 |
Average rate of interest during year on outstanding balances (as a percent) | 1.40% | 1.17% | 1.16% |
Interest rate at year-end (as a percent) | 1.53% | 1.20% | 1.16% |
Interest rate on unused line-of-credit (as a percent) | 0.15% | 0.15% | 0.15% |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Dec. 29, 2015USD ($)debt_covenant | Sep. 30, 2016USD ($)debt_covenant | Sep. 30, 2015USD ($) |
Debt Instrument [Line Items] | |||
Promissory Notes term | 20 years | ||
Unamortized loss on early retirement of debt deferred as regulatory asset | $ 2,055,369 | $ 2,169,556 | |
Unamortized loss on early retirement of debt, amortization period | 20 years | ||
Unsecured Debt | Unsecured term notes payable, at 30-day LIBOR plus 1.60%, due December 29, 2020 | |||
Debt Instrument [Line Items] | |||
Variable rate basis points (as a percent) | 1.60% | ||
Unsecured Senior Notes | Unsecured senior notes payable, at 4.26%, due on September 18, 2034 | |||
Debt Instrument [Line Items] | |||
Number of debt covenants | debt_covenant | 2 | ||
Debt covenant, maximum ratio of total long-term debt to total capitalization | 65.00% | ||
Debt covenant, maximum ratio of priority indebtedness to total assets | 15.00% | ||
RGC Midstream, LLC | |||
Debt Instrument [Line Items] | |||
Promissory Notes term | 5 years | ||
Equity interest (as a percent) | 1.00% | 1.00% | |
RGC Midstream, LLC | Unsecured Debt | Unsecured term notes payable, at 30-day LIBOR plus 1.60%, due December 29, 2020 | |||
Debt Instrument [Line Items] | |||
Promissory Notes term | 5 years | ||
Variable rate basis points (as a percent) | 1.60% | ||
Maximum amount borrowed before company equity investment | $ 17,500,000 | ||
Equity investment required by credit agreement | $ 5,000,000 | ||
Number of debt covenants | debt_covenant | 2 | ||
Debt covenant, maximum ratio of total long-term debt to total capitalization | 65.00% | ||
Debt covenant, maximum ratio of priority indebtedness to total assets | 15.00% | ||
Maximum | RGC Midstream, LLC | Unsecured Debt | Unsecured term notes payable, at 30-day LIBOR plus 1.60%, due December 29, 2020 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 25,000,000 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | ||
Total, Principal | $ 33,896,200 | $ 30,500,000 |
Unamortized Debt Issuance Costs | 260,149 | 183,427 |
Unsecured Senior Notes | Unsecured senior notes payable, at 4.26%, due on September 18, 2034 | ||
Debt Instrument [Line Items] | ||
Principal | 30,500,000 | 30,500,000 |
Unamortized Debt Issuance Costs | $ 173,773 | 183,427 |
Stated percentage rate | 4.26% | |
Unsecured Debt | Unsecured term notes payable, at 30-day LIBOR plus 1.60%, due December 29, 2020 | ||
Debt Instrument [Line Items] | ||
Principal | $ 3,396,200 | 0 |
Unamortized Debt Issuance Costs | $ 86,376 | $ 0 |
Variable rate basis points (as a percent) | 1.60% |
Long-Term Debt (Summary of Aggr
Long-Term Debt (Summary of Aggregate Maturities of Long-Term Debt) (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Debt Disclosure [Abstract] | ||
2,017 | $ 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 3,396,200 | |
Thereafter | 30,500,000 | |
Total | $ 33,896,200 | $ 30,500,000 |
Income Taxes (Details of Income
Income Taxes (Details of Income Tax Expense) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Current income taxes: | |||
Federal | $ (1,216,745) | $ 379,180 | $ 1,789,294 |
State | 415,975 | 374,541 | 290,458 |
Total current income taxes | (800,770) | 753,721 | 2,079,752 |
Deferred income taxes: | |||
Federal | 4,302,906 | 2,289,729 | 687,417 |
State | 164,048 | 127,112 | 175,464 |
Total deferred income taxes | 4,466,954 | 2,416,841 | 862,881 |
Amortization of investment tax credits | 0 | 0 | (3,093) |
Total income tax expense | $ 3,666,184 | $ 3,170,562 | $ 2,939,540 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 34.00% | 34.00% | 34.00% |
Bonus depreciation, percent | 50.00% | ||
Prior year deferred taxes reflected in the current year tax provision | $ 1,283,925 | $ 1,442,211 | |
Bonus depreciation calendar year 2017, percent | 50.00% | ||
Bonus depreciation calendar year 2018, percent | 40.00% | ||
Bonus depreciation calendar year 2019, percent | 30.00% | ||
Bonus depreciation calendar year 2020, percent | 0.00% |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Tax Expense Based on Federal Statutory Rate) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes | $ 9,473,050 | $ 8,264,977 | $ 7,647,980 |
Income tax expense computed at the federal statutory rate | 3,220,837 | 2,810,092 | 2,600,313 |
State income taxes, net of federal income tax benefit | 382,815 | 331,091 | 307,509 |
Amortization of investment tax credits | 0 | 0 | (3,093) |
Other, net | 62,532 | 29,379 | 34,811 |
Total income tax expense | $ 3,666,184 | $ 3,170,562 | $ 2,939,540 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Deferred tax assets: | ||
Allowance for uncollectibles | $ 29,203 | $ 20,012 |
Accrued pension and postretirement medical benefits | 2,532,672 | 2,502,774 |
Accrued vacation | 262,273 | 249,837 |
Over-recovery of gas costs | 345,318 | 721,782 |
Costs of gas held in storage | 1,077,849 | 930,524 |
Deferred compensation | 770,868 | 651,336 |
Other | 340,121 | 265,951 |
Total gross deferred tax assets | 5,358,304 | 5,342,216 |
Deferred tax liabilities: | ||
Utility plant | 24,264,165 | 19,804,862 |
MVP investment | 40,776 | 0 |
Accrued gas costs | 11,217 | 157,385 |
Total gross deferred tax liabilities | 24,316,158 | 19,962,247 |
Net deferred tax liability | $ 18,957,854 | $ 14,620,031 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected amount of accumulated other comprehensive loss recognized in net periodic benefit costs | $ 256,000 | |||
Expected amount of deferred regulatory assets to be recognized in net periodic benefit costs | 836,000 | |||
Company's matching contribution | $ 353,793 | $ 338,896 | $ 330,241 | |
After January 2017 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contribution percent | 3.00% | |||
After April 2010 | First Portion Match | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employers percentage match of employees match percentage | 100.00% | |||
Percentage of employee's gross pay that is matched by the employer | 4.00% | |||
After April 2010 | Second Portion Match | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employers percentage match of employees match percentage | 50.00% | |||
Percentage of employee's gross pay that is matched by the employer | 2.00% | |||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employee contribution percent | 1.00% | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employee contribution percent | 50.00% | |||
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Years until benefits are fully vested | 5 years | |||
Defined benefit plan benefit obligation increase decrease related to mortality table change | 1,300,000 | |||
Number of individuals that accepted pension lump sum pay out | 40 | |||
Number of individuals eligible for pension lump sum pay out | 63 | |||
Pension lump sum pay out | $ 1,241,529 | $ 1,940,779 | 637,042 | |
Decrease in projected pension plan obligation after lump sum pay out | $ (1,500,000) | |||
Expected employer contributions in next fiscal year | $ 750,000 | |||
Postretirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Minimum service requirement for postretirement benefit vesting | 10 years | |||
Retirement age requirement, postretirement plan | 55 years | |||
Defined benefit plan benefit obligation increase decrease related to mortality table change | 1,000,000 | |||
Pension lump sum pay out | $ 436,071 | $ 465,373 | ||
Expected employer contributions in next fiscal year | $ 1,000,000 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Changes in Benefit Obligations and Fair Value of Plan Assets, Funded Status of the Plan, and Amount Recognized in the Financial Statements) (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Change in fair value of plan assets: | |||||
Noncurrent liabilities | $ (13,763,820) | $ (13,763,820) | $ (10,685,261) | ||
Total amounts included in other comprehensive loss, net of tax | 2,497,231 | 2,497,231 | 2,286,545 | $ 1,139,326 | $ 918,688 |
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | 25,090,968 | 25,090,968 | 22,853,206 | ||
Change in benefit obligation: | |||||
Benefit obligation at beginning of year | 27,167,621 | 24,636,695 | |||
Service cost | 694,375 | 654,782 | 553,291 | ||
Interest cost | 1,132,776 | 1,025,908 | 1,020,302 | ||
Actuarial loss | 2,440,957 | 1,487,278 | |||
Benefit payments, net of retiree contributions | (1,241,529) | (1,940,779) | (637,042) | ||
Benefit obligation at end of year | 29,494,950 | 29,494,950 | 27,167,621 | 24,636,695 | |
Change in fair value of plan assets: | |||||
Fair value of plan assets at beginning of year | 21,394,399 | 20,514,179 | |||
Actual return on plan assets, net of taxes | 2,159,437 | (182,738) | |||
Employer contributions | 1,500,000 | 1,700,000 | |||
Benefit payments, net of retiree contributions | (1,241,529) | (1,940,779) | (637,042) | ||
Fair value of plan assets at end of year | 23,113,057 | 23,113,057 | 21,394,399 | 20,514,179 | |
Funded status | (6,381,893) | (6,381,893) | (5,773,222) | ||
Noncurrent liabilities | (6,381,893) | (6,381,893) | (5,773,222) | ||
Net actuarial loss, net of tax | 1,583,345 | 1,583,345 | 1,694,924 | ||
Total amounts included in other comprehensive loss, net of tax | 1,583,345 | 1,583,345 | 1,694,924 | ||
Net actuarial loss | 6,732,800 | 6,732,800 | 5,280,756 | ||
Amounts recognized as regulatory assets | 6,732,800 | 6,732,800 | 5,280,756 | ||
Postretirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | 18,504,710 | 18,504,710 | 15,355,668 | ||
Change in benefit obligation: | |||||
Benefit obligation at beginning of year | 15,355,668 | 14,983,169 | |||
Service cost | 148,018 | 167,580 | 168,634 | ||
Interest cost | 624,579 | 600,096 | 602,684 | ||
Actuarial loss | 2,812,516 | 70,196 | |||
Benefit payments, net of retiree contributions | (436,071) | (465,373) | |||
Benefit obligation at end of year | 18,504,710 | 18,504,710 | 15,355,668 | 14,983,169 | |
Change in fair value of plan assets: | |||||
Fair value of plan assets at beginning of year | 10,443,629 | 10,646,249 | |||
Actual return on plan assets, net of taxes | 615,225 | (237,247) | |||
Employer contributions | 500,000 | 500,000 | |||
Benefit payments, net of retiree contributions | (436,071) | (465,373) | |||
Fair value of plan assets at end of year | 11,122,783 | 11,122,783 | 10,443,629 | $ 10,646,249 | |
Funded status | (7,381,927) | (7,381,927) | (4,912,039) | ||
Noncurrent liabilities | (7,381,927) | (7,381,927) | (4,912,039) | ||
Net actuarial loss, net of tax | 913,886 | 913,886 | 591,621 | ||
Total amounts included in other comprehensive loss, net of tax | 913,886 | 913,886 | 591,621 | ||
Net actuarial loss | 5,563,642 | 5,563,642 | 3,628,448 | ||
Amounts recognized as regulatory assets | $ 5,563,642 | $ 5,563,642 | $ 3,628,448 |
Employee Benefit Plans (Sched57
Employee Benefit Plans (Schedule of Actuarial Assumptions Used) (Details) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Plan | |||
Assumptions used to determine benefit obligations: | |||
Discount rate | 3.42% | 4.22% | 4.22% |
Expected rate of compensation increase | 4.00% | 4.00% | 4.00% |
Assumptions used to determine benefit costs: | |||
Discount rate | 4.22% | 4.22% | 4.82% |
Expected long-term rate of return on plan assets | 7.00% | 7.00% | 7.00% |
Expected rate of compensation increase | 4.00% | 4.00% | 4.00% |
Postretirement Plan | |||
Assumptions used to determine benefit obligations: | |||
Discount rate | 3.33% | 4.15% | 4.10% |
Assumptions used to determine benefit costs: | |||
Discount rate | 4.15% | 4.10% | 4.73% |
Expected long-term rate of return on plan assets | 4.89% | 4.90% | 4.92% |
Employee Benefit Plans (Sched58
Employee Benefit Plans (Schedule of Components of Net Periodic Cost) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 694,375 | $ 654,782 | $ 553,291 |
Interest cost | 1,132,776 | 1,025,908 | 1,020,302 |
Expected return on plan assets | (1,492,241) | (1,440,846) | (1,312,354) |
Recognized loss | 501,678 | 257,378 | 136,394 |
Net periodic benefit cost | 836,588 | 497,222 | 397,633 |
Postretirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 148,018 | 167,580 | 168,634 |
Interest cost | 624,579 | 600,096 | 602,684 |
Expected return on plan assets | (507,858) | (516,656) | (496,476) |
Recognized loss | 250,173 | 197,058 | 89,515 |
Net periodic benefit cost | $ 514,912 | $ 448,078 | $ 364,357 |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of Assumed Health Care Cost Trend Rates Used) (Details) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pre 65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | 7.50% | 8.00% | 8.50% |
Rate to which the cost trend is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,021 | 2,021 | 2,021 |
Post 65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | 5.00% | 5.00% | 5.00% |
Rate to which the cost trend is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,016 | 2,015 | 2,014 |
Employee Benefit Plans (Effect
Employee Benefit Plans (Effect of a 1% Change in Health Care Cost Trend Rate Assumptions) (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2016USD ($) | |
1% Increase | |
Effect on total service and interest cost components | $ 137 |
Effect on accumulated postretirement benefit obligation | 3,083 |
1% Decrease | |
Effect on total service and interest cost components | (109) |
Effect on accumulated postretirement benefit obligation | $ (2,491) |
Employee Benefit Plans (Sched61
Employee Benefit Plans (Schedule of Target and Actual Asset Allocation) (Details) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Pension Plan | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 60.00% | |
Actual | 63.00% | 64.00% |
Pension Plan | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 40.00% | |
Actual | 36.00% | 35.00% |
Pension Plan | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 0.00% | |
Actual | 1.00% | 1.00% |
Pension Plan | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 0.00% | |
Actual | 0.00% | 0.00% |
Postretirement Plan | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 50.00% | |
Actual | 52.00% | 52.00% |
Postretirement Plan | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 50.00% | |
Actual | 47.00% | 47.00% |
Postretirement Plan | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 0.00% | |
Actual | 0.00% | 1.00% |
Postretirement Plan | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 0.00% | |
Actual | 1.00% | 0.00% |
Employee Benefit Plans (Summa62
Employee Benefit Plans (Summary of Fair Value Classifications of Benefit Plan Assets ) (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 23,113,057 | $ 21,394,399 | $ 20,514,179 |
Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 117,265 | 106,502 | |
Pension Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 22,995,792 | 21,287,897 | |
Pension Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 117,265 | 106,502 | |
Pension Plan | Cash | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 117,265 | 106,502 | |
Pension Plan | Cash | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Cash | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 4,497,373 | 3,996,246 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Fixed Income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Fixed Income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 4,497,373 | 3,996,246 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Fixed Income | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 3,426,041 | 3,150,561 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Growth | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Growth | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 3,426,041 | 3,150,561 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Growth | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 4,543,385 | 4,183,172 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 4,543,385 | 4,183,172 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Small/Mid Cap Core | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 2,149,566 | 1,937,613 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Small/Mid Cap Core | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Small/Mid Cap Core | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 2,149,566 | 1,937,613 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Small/Mid Cap Core | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Foreign Large Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,795,897 | 1,873,313 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Foreign Large Cap Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Foreign Large Cap Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,795,897 | 1,873,313 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Foreign Large Cap Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Mutual Funds | Domestic Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 3,615,209 | 3,313,331 | |
Pension Plan | Mutual Funds | Domestic Fixed Income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Mutual Funds | Domestic Fixed Income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 3,615,209 | 3,313,331 | |
Pension Plan | Mutual Funds | Domestic Fixed Income | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Mutual Funds | Foreign Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 234,622 | 213,118 | |
Pension Plan | Mutual Funds | Foreign Fixed Income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Mutual Funds | Foreign Fixed Income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 234,622 | 213,118 | |
Pension Plan | Mutual Funds | Foreign Fixed Income | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Mutual Funds | Domestic Large Cap Growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,043,395 | 1,030,957 | |
Pension Plan | Mutual Funds | Domestic Large Cap Growth | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Mutual Funds | Domestic Large Cap Growth | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,043,395 | 1,030,957 | |
Pension Plan | Mutual Funds | Domestic Large Cap Growth | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Mutual Funds | Foreign Large Cap Growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 366,420 | ||
Pension Plan | Mutual Funds | Foreign Large Cap Growth | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | ||
Pension Plan | Mutual Funds | Foreign Large Cap Growth | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 366,420 | ||
Pension Plan | Mutual Funds | Foreign Large Cap Growth | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | ||
Pension Plan | Mutual Funds | Foreign Large Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 373,480 | 653,276 | |
Pension Plan | Mutual Funds | Foreign Large Cap Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Mutual Funds | Foreign Large Cap Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 373,480 | 653,276 | |
Pension Plan | Mutual Funds | Foreign Large Cap Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Mutual Funds | Foreign Large Cap Core | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 950,404 | 936,310 | |
Pension Plan | Mutual Funds | Foreign Large Cap Core | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Mutual Funds | Foreign Large Cap Core | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 950,404 | 936,310 | |
Pension Plan | Mutual Funds | Foreign Large Cap Core | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 11,122,783 | 10,443,629 | $ 10,646,249 |
Postretirement Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 43,455 | 58,749 | |
Postretirement Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 11,079,328 | 10,384,880 | |
Postretirement Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 43,455 | 58,749 | |
Postretirement Plan | Cash | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 43,455 | 58,749 | |
Postretirement Plan | Cash | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Cash | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 5,109,834 | 4,845,174 | |
Postretirement Plan | Mutual Funds | Domestic Fixed Income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Fixed Income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 5,109,834 | 4,845,174 | |
Postretirement Plan | Mutual Funds | Domestic Fixed Income | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Foreign Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 87,821 | 38,654 | |
Postretirement Plan | Mutual Funds | Foreign Fixed Income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Foreign Fixed Income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 87,821 | 38,654 | |
Postretirement Plan | Mutual Funds | Foreign Fixed Income | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,824,796 | 1,746,621 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Growth | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Growth | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,824,796 | 1,746,621 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Growth | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,770,664 | 1,638,695 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,770,664 | 1,638,695 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 195,319 | 194,260 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Growth | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Growth | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 195,319 | 194,260 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Growth | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 198,884 | 186,344 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 198,884 | 186,344 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Core | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 427,409 | 417,980 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Core | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Core | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 427,409 | 417,980 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Core | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 964,827 | 893,115 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 964,827 | 893,115 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Core | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 456,100 | 378,596 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Core | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Core | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 456,100 | 378,596 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Core | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 43,674 | 45,441 | |
Postretirement Plan | Mutual Funds | Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 43,674 | 45,441 | |
Postretirement Plan | Mutual Funds | Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 0 | $ 0 |
Employee Benefit Plans (Sched63
Employee Benefit Plans (Schedule of Expected Future Benefit Payments) (Details) | Sep. 30, 2016USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 774,312 |
2,018 | 836,309 |
2,019 | 910,261 |
2,020 | 983,917 |
2,021 | 1,048,990 |
2022-2026 | 6,613,848 |
Postretirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 642,842 |
2,018 | 656,790 |
2,019 | 679,876 |
2,020 | 705,769 |
2,021 | 747,426 |
2022-2026 | $ 4,226,050 |
Common Stock Options (Narrative
Common Stock Options (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of shares available for future grant | 41,000 | ||
Award vesting period | 6 months | ||
Award expiration period | 10 years | ||
Expected exercise term (years) | 7 years | 7 years | 7 years |
Weighted average grant-date fair value, options granted (in usd per share) | $ 4.04 | $ 4.92 | $ 4.43 |
Intrinsic value of options exercised | $ 8,418 | $ 5,624 | |
Stock option grants | 64,640 | 83,640 | $ 75,310 |
Amount received for exercise of options | $ 41,762 | $ 49,366 | $ 0 |
Common Stock Options (Fair Valu
Common Stock Options (Fair Value Assumptions) (Details) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected volatility | 28.78% | 34.34% | 35.01% |
Expected dividends | 3.99% | 4.11% | 4.21% |
Expected exercise term (years) | 7 years | 7 years | 7 years |
Risk-free interest rate (as a percent) | 2.10% | 1.98% | 2.23% |
Common Stock Options (Schedule
Common Stock Options (Schedule of Stock Option Activity) (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Number of Shares | ||||
Options outstanding, beginning balance (in shares) | 52,400 | 38,000 | 21,000 | |
Options granted (in shares) | 16,000 | 17,000 | 17,000 | |
Options exercised (in shares) | (2,200) | (2,600) | 0 | |
Options expired (in shares) | 0 | 0 | 0 | |
Options forfeited (in shares) | (8,000) | 0 | 0 | |
Options outstanding, ending balance (in shares) | 58,200 | 52,400 | 38,000 | 21,000 |
Vested and exercisable at end of period (in shares) | 58,200 | |||
Weighted- Average Exercise Price | ||||
Options outstanding, beginning balance (in usd per share) | $ 19.83 | $ 18.98 | $ 19.01 | |
Options granted (in usd per share) | 21.22 | 21.60 | 18.95 | |
Options exercised (in usd per share) | 18.98 | 18.99 | 0 | |
Options expired (in usd per share) | 0 | 0 | 0 | |
Options forfeited (in usd per share) | 19.80 | 0 | 0 | |
Options outstanding, ending balance (in usd per share) | 20.25 | $ 19.83 | $ 18.98 | $ 19.01 |
Vested and exercisable at end of period (in usd per share) | $ 20.25 | |||
Options, Additional Disclosures | ||||
Weighted- Average Remaining Contractual Terms (years) | 7 years 10 months | 8 years 4 months | 8 years 9 months | 9 years 6 months |
Weighted-Average Remaining Contractual Term, Vested and exercisable at September 30, 2016 | 7 years 10 months | |||
Aggregate Intrinsic Value | $ 200,211 | $ 43,086 | $ 34,840 | $ 5,229 |
Aggregate Intrinsic Value, Vested and exercisable at end of period | $ 200,211 |
Other Stock Plans (Narrative) (
Other Stock Plans (Narrative) (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for issuance | 41,000 | 41,000 | ||
Dividend Reinvestment and Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum amount shareholders can partake in the DRIP plan | $ 40,000 | |||
Number of shares issued under the Dividend Reinvestment and Stock Purchase Plan | 34,764 | 8,431 | 7 | |
Shares of stock available for issuance under the DRIP Plan | 323,613 | 323,613 | ||
Restricted Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum percentage of monthly retainer fee paid in shares of common stock | 40.00% | |||
Minimum number of shares that must be owned to avoid percentage of monthly retainer fee paid in shares of common stock | 10,000 | |||
Value of shares issued under the plan | $ 98,334 | $ 85,000 | $ 73,200 | |
Stock vested during the period (in shares) | 0 | 0 | 0 | |
Stock forfeited during the period (in shares) | 0 | 0 | 0 | |
Shares available for issuance | 63,008 | 63,008 | ||
Stock Bonus Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Value of shares issued under the plan | $ 39,819 | $ 59,332 | $ 78,841 | |
Shares available for issuance | 6,299 | 6,299 | ||
Percentage of officers' annually salary expected to be held in company stock | 50.00% | |||
Minimum percentage of performance bonus in stock | 50.00% | |||
Shares issued under the plan | 1,875 | 2,731 | 4,098 | |
Stock Bonus Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of officers' annually salary expected to be held in company stock | 50.00% |
Other Stock Plans (Director Com
Other Stock Plans (Director Compensation Activity) (Details) - Restricted Stock Plan - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Shares | |||
Beginning of year balance (in shares) | 66,915 | 62,844 | 59,064 |
Granted (in shares) | 4,433 | 4,071 | 3,780 |
Vested (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | 0 | 0 | 0 |
End of year balance (in shares) | 71,348 | 66,915 | 62,844 |
Weighted-Average Fair Value on Date of Grant | |||
Beginning of year balance (in usd per share) | $ 14.70 | $ 14.29 | $ 13.97 |
Granted (in usd per share) | 22.18 | 20.88 | 19.37 |
Vested (in usd per share) | 0 | 0 | 0 |
Forfeited (in usd per share) | 0 | 0 | 0 |
End of year balance (in usd per share) | $ 15.16 | $ 14.70 | $ 14.29 |
Commitments and Contingencies69
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Expenditures under asset management agreement | $ 24,852 | $ 33,405 | $ 44,884 |
Commitments and Contingencies70
Commitments and Contingencies (Schedule of Volumetric Obligations) (Details) | Sep. 30, 2016MMBTU |
Commitments and Contingencies Disclosure [Abstract] | |
2016-2017 | 2,071,061 |
2017-2018 | 295,866 |
Total | 2,366,927 |
Commitments and Contingencies71
Commitments and Contingencies (Schedule of Pipeline and Storage Capacity Obligations) (Details) | Sep. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2016-2017 | $ 10,474,339 |
2017-2018 | 8,784,004 |
2018-2019 | 7,215,235 |
2019-2020 | 4,800,201 |
2020-2021 | 2,476,475 |
Thereafter | 2,682,848 |
Total | $ 36,433,102 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Natural gas purchases | $ 1,052,930 | $ 712,710 |
Total | 1,052,930 | 712,710 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Natural gas purchases | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Natural gas purchases | 1,052,930 | 712,710 |
Total | 1,052,930 | 712,710 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Natural gas purchases | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of the Fair Value of Financial Assets and Liabilities Not Adjusted to Fair Value) (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 33,896,200 | $ 30,500,000 |
Total | 33,896,200 | 30,500,000 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 36,163,523 | 28,570,585 |
Total | $ 36,163,523 | $ 28,570,585 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Treasury rate, period | 20 years |
Twenty year treasury rate change | (0.52%) |
Quarterly Financial Informati75
Quarterly Financial Information (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating revenues | $ 9,980,265 | $ 11,295,197 | $ 21,777,773 | $ 16,010,056 | $ 9,733,404 | $ 10,774,409 | $ 26,431,729 | $ 21,250,065 | $ 59,063,291 | $ 68,189,607 | $ 75,016,134 |
Gross margin | 5,865,189 | 6,312,340 | 10,649,269 | 8,738,116 | 5,408,692 | 5,961,828 | 10,213,770 | 8,622,143 | 31,564,914 | 30,206,433 | 29,337,089 |
Operating income | 816,376 | 1,453,350 | 5,444,314 | 3,498,052 | 656,152 | 956,219 | 4,879,469 | 3,514,352 | 11,212,092 | 10,006,192 | 9,681,868 |
Net income | $ 145,561 | $ 627,068 | $ 3,111,447 | $ 1,922,790 | $ 35,755 | $ 354,940 | $ 2,779,344 | $ 1,924,376 | $ 5,806,866 | $ 5,094,415 | $ 4,708,440 |
Earnings per share of common stock: | |||||||||||
Basic (in usd per share) | $ 0.03 | $ 0.13 | $ 0.65 | $ 0.40 | $ 0.01 | $ 0.08 | $ 0.59 | $ 0.41 | $ 1.22 | $ 1.08 | $ 1 |
Diluted (in usd per share) | $ 0.03 | $ 0.13 | $ 0.65 | $ 0.40 | $ 0.01 | $ 0.07 | $ 0.59 | $ 0.41 | $ 1.22 | $ 1.08 | $ 1 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) | Nov. 01, 2016 | Sep. 30, 2016 |
Subsequent Event [Line Items] | ||
Promissory Notes term | 20 years | |
Subsequent Event | Unsecured Debt | Unsecured term notes payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 | ||
Subsequent Event [Line Items] | ||
Promissory Notes term | 5 years | |
Debt instrument, face amount | $ 7,000,000 | |
Variable rate basis points (as a percent) | 0.90% | |
Stated percentage rate | 2.30% |