Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 20, 2021 | Mar. 31, 2021 | |
Cover [Abstract] | |||
Entity Central Index Key | 0001582244 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Sep. 30, 2021 | ||
Entity File Number | 000-00643 | ||
Entity Registrant Name | Corning Natural Gas Holding Corporation | ||
Entity Incorporation State or Country Code | NY | ||
Entity Tax Identification Number | 46-3235589 | ||
Entity Address, Address Line One | 330 W. William St. | ||
Entity Address, City or Town | Corning | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 14830 | ||
City Area Code | 607 | ||
Local Phone Number | 936-3755 | ||
Trading Symbol | N/A | ||
Name of Exchange on which Security is Registered | NONE | ||
Title of 12(g) Security | Common Stock, par value $0.01 per share | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 28,787,001 | ||
Entity Common Stock, Shares Outstanding | 3,083,577 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Plant: | ||
Utility property, plant and equipment | $ 150,540,525 | $ 139,743,289 |
Less: accumulated depreciation | (34,001,558) | (30,853,644) |
Total plant, net | 116,538,967 | 108,889,645 |
Investments: | ||
Marketable securities at fair value | 2,337,330 | 2,193,112 |
Investment in joint ventures | 261,180 | 264,640 |
Total investments | 2,598,510 | 2,457,752 |
Current assets: | ||
Cash and cash equivalents | 333,846 | 411,700 |
Customer accounts receivable (net of allowance for uncollectible accounts of $82,040 and $42,263, respectively) | 2,481,456 | 2,330,342 |
Other accounts receivable | 748,655 | 527,280 |
Related party receivables | 9,032 | |
Gas stored underground | 1,366,341 | 995,341 |
Materials and supplies inventories | 3,605,300 | 3,156,345 |
Prepaid expenses | 1,746,336 | 1,801,883 |
Total current assets | 10,281,934 | 9,231,923 |
Regulatory assets: | ||
Unrecovered electric and gas costs | 1,986,198 | 1,966,184 |
Deferred regulatory costs | 6,112,370 | 4,894,434 |
Deferred pension | 4,902,666 | 7,352,839 |
Goodwill | 918,121 | 918,121 |
Other | 715,981 | 748,408 |
Total regulatory and other assets | 14,635,336 | 15,879,986 |
Total assets | 144,054,747 | 136,459,306 |
Liabilities and capitalization | ||
Long-term debt, less current installments | 46,145,319 | 44,291,626 |
Less: debt issuance costs | (237,162) | (241,057) |
Total long-term debt | 45,908,157 | 44,050,569 |
Redeemable preferred stock - Series A (Authorized 261,500 shares. Issued and outstanding: 260,600 shares at September 30, 2021 and at September 30, 2020, less issuance costs of $20,303 and $30,455, respectively) | 6,494,697 | 6,484,545 |
Redeemable preferred stock - Series C (Authorized 180,000 shares. Issued and outstanding: 180,000 shares at September 30, 2021 and at September 30, 2020, less issuance costs of $1,277 and $1,524, respectively) | 4,498,723 | 4,498,476 |
Current liabilities: | ||
Current portion of long-term debt | 6,407,545 | 6,271,068 |
Demand notes payable | 5,397,294 | |
Borrowings under lines-of-credit | 7,668,557 | 7,698,269 |
Accounts payable | 3,844,210 | 2,293,980 |
Accrued expenses | 271,461 | 339,809 |
Customer deposits and accrued interest | 1,519,576 | 1,617,976 |
Dividends declared | 530,296 | 529,301 |
Total current liabilities | 25,638,939 | 18,750,403 |
Deferred credits and other liabilities: | ||
Deferred income taxes | 8,149,853 | 7,575,832 |
Regulatory liabilities | 2,969,076 | 3,243,054 |
Deferred compensation | 1,417,686 | 1,366,256 |
Pension costs and post-retirement benefits | 7,180,088 | 9,407,774 |
Other | 1,344,416 | 193,945 |
Total deferred credits and other liabilities | 21,061,119 | 21,786,861 |
Commitments and contingencies (see Note 14) | ||
Temporary equity: | ||
Redeemable convertible preferred stock - Series B (Authorized 244,500 shares. Issued and outstanding: 244,263 shares at September 30, 2021 and 2020) | 4,980,562 | 4,954,937 |
Common stockholders' equity: | ||
Common stock ($.01 par value per share. Authorized 4,500,000 shares. Issued and outstanding: 3,083,577 shares at September 30, 2021 and 3,072,547 shares at September 30, 2020) | 30,836 | 30,725 |
Additional paid-in capital | 28,292,551 | 28,144,702 |
Retained earnings | 7,148,246 | 7,747,197 |
Accumulated other comprehensive income | 917 | 10,891 |
Total common stockholders' equity | 35,472,550 | 35,933,515 |
Total liabilities and capitalization | $ 144,054,747 | $ 136,459,306 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Current assets: | ||
Allowance for uncollectible accounts | $ 82,040 | $ 42,263 |
Stockholders' equity | ||
Redeemable preferred stock - Series A, authorized shares | 261,500 | 261,500 |
Redeemable preferred stock - Series A, shares issued | 260,600 | 260,600 |
Redeemable preferred stock - Series A, shares outstanding | 260,600 | 260,600 |
Less debt issuance costs | $ 20,303 | $ 30,455 |
Redeemable preferred stock - Series C, authorized shares | 180,000 | 180,000 |
Redeemable preferred stock - Series C, shares issued | 180,000 | 180,000 |
Redeemable preferred stock - Series C, shares outstanding | 180,000 | 180,000 |
Redeemable less debt issuance costs | $ 1,277 | $ 1,524 |
Redeemable preferred stock - Series B, authorized shares | 244,500 | 244,500 |
Redeemable preferred stock - Series B, shares issued | 244,263 | 244,263 |
Redeemable preferred stock - Series B, shares outstanding | 244,263 | 244,263 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 4,500,000 | 4,500,000 |
Common stock, shares issued | 3,083,577 | 3,072,547 |
Common stock, shares outstanding | 3,083,577 | 3,072,547 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Utility operating revenues: | ||
Total utility operating revenues | $ 35,235,545 | $ 32,385,885 |
Cost of Sales: | ||
Total cost of sales | 9,317,025 | 7,110,551 |
Gross margin | 25,918,520 | 25,275,334 |
Costs and expense: | ||
Operating and maintenance expense | 14,138,983 | 11,277,571 |
Taxes other than income taxes | 3,695,526 | 3,643,828 |
Depreciation | 3,338,769 | 2,621,385 |
Other deductions, net | 386,513 | 507,633 |
Total costs and expenses | 21,559,791 | 18,050,417 |
Utility operating income | 4,358,729 | 7,224,917 |
Other income and (expense): | ||
Interest expense | (3,433,379) | (2,567,064) |
Other income (expense), net | 644,436 | (656,892) |
Investment income | 391,019 | 182,111 |
Loss from joint ventures | (2,652) | (51,928) |
Rental income | 30,552 | 30,552 |
Income from utility operations before income taxes | 1,988,705 | 4,161,696 |
Income tax expense | (463,802) | (960,338) |
Net income | 1,524,903 | 3,201,358 |
Less Series B Preferred Stock Dividends | 244,263 | 244,263 |
Net income attributable to common stockholders | $ 1,280,640 | $ 2,957,095 |
Weighted average earnings per share- | ||
basic | $ 0.42 | $ 0.97 |
diluted | $ 0.42 | $ 0.95 |
Average shares outstanding - basic | 3,082,702 | 3,060,233 |
Average shares outstanding - diluted | 3,085,013 | 3,353,349 |
Gas Operating Revenues [Member] | ||
Utility operating revenues: | ||
Total utility operating revenues | $ 26,861,424 | $ 25,385,218 |
Cost of Sales: | ||
Total cost of sales | 6,659,993 | 5,501,237 |
Electric Operating Revenues [Member] | ||
Utility operating revenues: | ||
Total utility operating revenues | 8,374,121 | 7,000,667 |
Cost of Sales: | ||
Total cost of sales | $ 2,657,032 | $ 1,609,314 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 1,524,903 | $ 3,201,358 |
Other comprehensive income: | ||
Net unrealized (loss) gain on securities available for sale net of tax of ($3,521) and $1,212, respectively | (9,974) | 3,578 |
Total comprehensive income | $ 1,514,929 | $ 3,204,936 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Income taxes for change in unrealized gain on securities available for sale | $ (3,521) | $ 1,212 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balances at Sep. 30, 2019 | $ 30,470 | $ 27,745,837 | $ 6,634,085 | $ 7,313 | $ 34,417,705 |
Balances, shares at Sep. 30, 2019 | 3,047,060 | ||||
Issuance of common stock | $ 255 | 379,360 | $ 379,615 | ||
Issuance of common stock, shares | 25,487 | 25,487 | |||
Stock option expense | 19,505 | $ 19,505 | |||
Dividends declared on common | (1,843,983) | (1,843,983) | |||
Dividends declared on Series B Preferred Stock | (244,263) | (244,263) | |||
Comprehensive income: | |||||
Change in unrealized gain on securities available for sale, net of income taxes | 3,578 | 3,578 | |||
Net income | 3,201,358 | 3,201,358 | |||
Balances at Sep. 30, 2020 | $ 30,725 | 28,144,702 | 7,747,197 | 10,891 | $ 35,933,515 |
Balances, shares at Sep. 30, 2020 | 3,072,547 | 3,072,547 | |||
Issuance of common stock | $ 111 | 130,349 | $ 130,460 | ||
Issuance of common stock, shares | 11,030 | 11,030 | |||
Stock option expense | 17,500 | $ 17,500 | |||
Dividends declared on common | (1,879,591) | (1,879,591) | |||
Dividends declared on Series B Preferred Stock | (244,263) | (244,263) | |||
Comprehensive income: | |||||
Change in unrealized gain on securities available for sale, net of income taxes | (9,974) | (9,974) | |||
Net income | 1,524,903 | 1,524,903 | |||
Balances at Sep. 30, 2021 | $ 30,836 | $ 28,292,551 | $ 7,148,246 | $ 917 | $ 35,472,550 |
Balances, shares at Sep. 30, 2021 | 3,083,577 | 3,083,577 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared on common | $ 0.610 | $ 0.603 |
Dividends declared on Preferred B shares | $ 1 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 1,524,903 | $ 3,201,358 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 3,338,769 | 2,621,385 |
Amortization of debt issuance costs | 105,879 | 109,512 |
Non-cash pension expenses | 941,428 | 933,454 |
Regulatory asset amortizations | 575,673 | 621,679 |
Stock issued for services and stock option expense | 96,211 | 197,180 |
Gain on forgiveness of debt | (1,173,594) | |
Gain on sale of marketable securities | (233,681) | (49,823) |
Unrealized gain | (134,897) | (139,865) |
Deferred income taxes | 446,070 | 1,232,417 |
Bad debt expense | 107,489 | 103,000 |
Loss from joint ventures | 2,652 | 51,928 |
(Increase) decrease in: | ||
Accounts receivable | (479,978) | (113,216) |
Gas stored underground | (371,000) | 243,485 |
Materials and supplies inventories | (448,955) | (129,402) |
Prepaid expenses | 55,547 | (63,856) |
Unrecovered gas and electric costs | (20,014) | (843,725) |
Deferred regulatory costs | (1,842,728) | (1,243,599) |
Other | 32,001 | (185,705) |
Increase (decrease) in: | ||
Accounts payable | 1,550,230 | 370,452 |
Accrued expenses | (68,348) | (76,839) |
Customer deposits and accrued interest | (98,400) | 214,837 |
Deferred compensation | 51,430 | (25,668) |
Deferred pension costs & post-retirement benefits | (718,941) | (1,267,271) |
Other liabilities and deferred credits | 1,005,679 | (223,361) |
Net cash provided by operating activities | 4,243,425 | 5,538,357 |
Cash flows from investing activities: | ||
Sale of securities, net | 214,386 | 184,324 |
Amount received from (paid to) related parties | 9,032 | (3,214) |
Acquisition of business, net of cash acquired | (1,893,081) | |
Capital expenditures | (10,988,091) | (8,672,162) |
Net cash used in investing activities | (10,764,673) | (10,384,133) |
Cash flows from financing activities: | ||
Net proceeds under lines-of-credit | (29,712) | (72,126) |
Debt issuance costs paid | (16,842) | |
Cash received from sale of Series C preferred stock Net | 4,498,394 | |
Dividends paid | (2,071,110) | (1,859,564) |
Proceeds under demand note | 5,397,294 | |
Proceeds under long-term debt | 8,702,349 | 6,929,922 |
Repayment of long-term debt | (5,538,585) | (4,553,491) |
Net cash provided by financing activities | 6,443,394 | 4,943,135 |
Net (decrease) increase in cash and cash equivalents | (77,854) | 97,359 |
Cash and cash equivalents at beginning of year | 411,700 | 314,341 |
Cash and cash equivalents at end of year | 333,846 | 411,700 |
Cash paid during the year for: | ||
Interest | 2,601,808 | 2,829,244 |
Income taxes (refunded) paid | 12,500 | (341,777) |
Non-cash financing activities: | ||
Dividends paid with shares | $ 51,749 | $ 201,940 |
Number of shares issued as dividends | 3,380 | 12,287 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Assumption of liabilities in business acquisition | $ 6,971,290 | |
Issuance of Series A preferred stock as consideration for business acquisition | $ 1,250,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Corning Natural Gas Holding Corporation’s (the “Holding Company”) primary business, through its subsidiaries, Corning Natural Gas Corporation (“Corning Gas” or “Gas Company”), Pike County Light & Power Company (“Pike”), Leatherstocking Gas Company, LLC (“Leatherstocking Gas”) and Leatherstocking Pipeline, LLC (“Leatherstocking Pipeline”), is natural gas and electric distribution. Corning Gas provides gas on a commodity and transportation basis to its customers in the Southern Tier of New York State. Pike provides electric and gas service to customers in Pike County, Pennsylvania. As used in these notes, the term “the Company” refers to the consolidated operations of the Holding Company, the Gas Company and its dormant subsidiary Corning Natural Gas Appliance Corporation (the “Appliance Company”), Pike, and (from July 1, 2020) Leatherstocking Gas and Leatherstocking Pipeline. The Company follows the Uniform System of Accounts prescribed by the Public Service Commission of the State of New York (“NYPSC”) which has jurisdiction over and sets rates for New York State gas distribution companies and the Pennsylvania Public Utility Commission (“PAPUC”) which has jurisdiction over and sets rates for Pennsylvania gas and electric distribution companies. The Company’s regulated operations meet the criteria to and, accordingly, follow the accounting and reporting of the Financial Accounting Standard Board (“FASB”) ASC No. 980 “Regulated Operations” . On January 12, 2021, Holding Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and among Holding Company, ACP Crotona Corp. (“Parent”), and ACP Crotona Merger Sub Corp. (“Merger Sub”), pursuant to which Merger Sub will merge with and into Holding Company, and Holding Company will continue as the surviving corporation and a wholly owned subsidiary of Parent (the “Merger”). As a result of the Merger, shareholders of Holding Company will receive consideration for their shares in the following amounts: (i) $24.75 in cash, per share of common stock (the “Merger Consideration”); (ii) $25 per share of Series A preferred stock; (iii) $29.70 per share of Series B preferred stock; and (iv) $25 per share of Series C preferred stock. Amounts payable to all shareholders will include cash for any unpaid dividends. Parent and Merger Sub are affiliates of Argo Infrastructure Partners LP (“Argo”) and were formed by Argo in order to complete the Merger. The Merger is subject to, among other customary closing conditions, the approvals of the NYPSC and the PAPUC. In addition, the Merger requires the approval of the Company’s shareholders and the expiration of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvement Act. The Merger Agreement also includes certain termination rights for both the Company and Parent and provides that, in connection with the termination of the Merger Agreement under specified circumstances, termination fees may be owed by the Company to Parent, depending on the circumstances surrounding a termination. The Merger Agreement provided for a 45-day “Go Shop” period which expired on February 26, 2021. During the “Go Shop” period, the Company received no competing offers or alternative acquisition proposals. The Company is now subject to a customary “No Shop” provision that restricts the Company’s ability to solicit acquisition proposals from third parties and to provide non-public information and to negotiate with third parties regarding unsolicited acquisition proposals that is reasonably expected to lead to a superior proposal. On April 30, 2021, the Company and Argo filed with the NYPSC and PAPUC joint petitions requesting approval to conclude the merger. Decisions from the commissions on the merger petitions are not expected until the first half of 2022. The Merger was voted on and approved by the Company’s shareholders at its annual shareholder meeting on May 27, 2021. In connection with the execution of the Merger Agreement, the Company has suspended its dividend reinvestment plan. Upon consummation of the Merger, the Company’s common stock will be delisted from the OTCQX and deregistered under the Exchange Act as soon as practicable. (a) Principles of Consolidation and Presentation The consolidated financial statements include the Holding Company and its wholly owned subsidiaries, Corning Gas, Pike, the Appliance Company and (from July 1, 2020) Leatherstocking Gas and Leatherstocking Pipeline. All intercompany accounts and balances have been eliminated. It is the Company’s policy to reclassify amounts in the prior year financial statements to conform to the current year presentation. 46 Table of Contents (b) Utility Property, Plant and Equipment Utility property, plant and equipment are stated at the historical cost of construction or acquisition. These costs include payroll, fringe benefits, materials and supplies and transportation costs. The Company charges normal repairs to maintenance expense. (c) Depreciation The Company provides for depreciation for accounting purposes using a straight-line method based on the estimated economic lives of property and equipment as determined by the current rate plan based on the latest depreciation study. At the time utility properties are retired, costs of removal less any salvage are charged to accumulated depreciation. The depreciation rate used for Corning Gas utility plant, expressed as an annual percentage of depreciable property, was 1.9% for the fiscal year ended September 30, 2021 (“FY 2021”) and 1.9% for the fiscal year ended September 30, 2020 (“FY 2020”). The NYPSC allows the Gas Company recovery in revenues to offset costs of building certain projects. The depreciation rate used for Pike, expressed as an annual percentage of depreciable property, was 3.8% for FY 2021 and 2.5% for FY 2020. The depreciation rate used for the Leatherstocking Companies, expressed as an annual percentage of depreciable property, was 4.1% for FY 2021 and 3.4% for FY 2020. The PAPUC allows Leatherstocking Gas to collect revenues from customers to offset cost of gas distribution system build out. (d) Accounting for Impairment FASB ASC No. 360-10-15, “Accounting for the Impairment or Disposal of Long-Lived Assets” establishes accounting standards to account for the impairment of long-lived assets, and certain identifiable intangibles. Under FASB ASC No. 360-10-15, the Company reviews assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. FASB ASC No. 360-10-15 also requires that a rate regulated enterprise recognize an impairment when regulatory assets are no longer probable of recovery. No impairment losses were incurred for FY 2021 and FY 2020. (e) Marketable Securities Marketable securities are intended to fund the Gas Company’s deferred compensation plan obligations. Such securities are reported at fair value based on quoted market prices. Unrealized gains and losses on debt securities classified as available for sale, net of the related income tax effect, are excluded from income, and reported as a component of accumulated other comprehensive income in stockholders’ equity until realized. Unrealized gains and losses on equity securities are included as a component of investment income in the consolidated statement of income. The cost of securities sold was determined using the specific identification method. For all investments in the unrealized loss position, none have been in an unrealized loss position for more than 12 months. None are other than temporary impairments based on management’s analysis of available market research. In FY 2021 and FY 2020, the Gas Company sold equity securities for realized gains included in earnings of $233,681 and $49,823, respectively. (f) Fair Value of Financial Instruments The Company has determined the fair value of debt and other financial instruments using a valuation hierarchy. The hierarchy, which prioritizes the inputs used in measuring fair value, consists of three levels. Level 1 uses observable inputs such as quoted prices in active markets; Level 2 uses inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, which is defined as unobservable inputs in which little or no market data exists, requires the Company to develop its own assumptions. The carrying amount of debt on the Consolidated Balance Sheets approximates fair value as a result of instruments bearing interest rates that approximate current market rates for similar instruments, and the carrying amounts for cash, accounts receivable and accounts payable approximate fair value due to their short-term nature. The assets used to fund the pension plan and marketable securities, which fund the Gas Company’s deferred compensation plan, are valued based on Level 1 inputs. The Company has determined the fair value of certain assets through application of FASB ASC 820 “Fair Value Measurements and Disclosures”. 47 Table of Contents Fair value of assets and liabilities measured on a recurring basis at September 30, 2021 and 2020 are as follows: Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Level 2 Level 3 September 30, 2021 Marketable securities $ 2,337,330 $ 2,337,330 $ — $ — September 30, 2020 Marketable securities $ 2,193,112 $ 2,193,112 $ — $ — Financial assets and liabilities valued using level 1 inputs are based on unadjusted quoted market prices within active markets. The pension assets in Note 12 are valued using level 1 inputs. (g) Cash and Cash Equivalents Cash and cash equivalents include time deposits, certificates of deposit, and all highly liquid debt instruments with original maturities of three months or less. Cash and cash equivalents at financial institutions may periodically exceed federally insured limits. (h) Accounts Receivable Accounts receivable are stated net of an allowance for doubtful accounts. The Company estimates the allowance based on its analysis of specific balances, taking into consideration the age of past due accounts and relying on rules and guidelines established by the NYPSC and PAPUC regarding customer disconnects. (i) Gas Stored Underground Gas stored underground is carried at an average unit cost method as prescribed by the NYPSC. Pike and Leatherstocking Gas do not have any gas storage. (j) Materials and Supplies Inventories Materials and supplies inventories are stated at the lower of cost or net realizable value, cost being determined on an average unit price basis. (k) Debt Issuance Costs Debt issuance costs are presented as a direct deduction from the associated debt. Costs associated with the issuance of debt by the Company are amortized over the lives of the related debt. (l) Regulatory Matters Certain costs of the Company are deferred and recognized as expenses when they are reflected in rates and recovered from customers as permitted by FASB ASC No. 980. These costs are shown as regulatory assets. Such costs arise from the traditional cost-of-service rate setting approach whereby all prudently incurred costs are generally recoverable through rates. Deferral of these costs is appropriate while the Company’s rates are regulated under a cost-of-service approach of the NYPSC and PAPUC for utilities (see Note 5 - Regulatory Matters). As regulated utilities, the Company defers certain costs for future recovery. In a purely competitive environment, such costs might have been currently expensed. Accordingly, if the Company’s rate settings were changed from a cost-of-service approach and the Gas Company, Pike and Leatherstocking Gas were no longer allowed to defer these costs under FASB ASC No. 980, certain of these assets might not be fully recoverable. However, the Company cannot predict the impact, if any, of competition and continues to operate in a cost-of-service based regulatory environment. Accordingly, the Company believes that accounting under FASB ASC No. 980 is appropriate. 48 Table of Contents (m) Revenue Recognition The Company has the obligation to deliver gas and electricity to its customers. As gas and electricity are immediately available for use upon delivery to the customer, the gas or electricity and its delivery are identifiable as a single performance obligation. The Company recognizes revenues as this performance obligation is satisfied over time as the Company delivers, and its customers simultaneously receive and consume, the gas or electricity. The amount of revenues recognized reflects the consideration the Company expects to receive in exchange for delivering the gas or electricity. Under their tariffs, the transaction price for full-service customers includes the Company’s energy cost and for all customers includes delivery charges determined based on customer class and in accordance with established tariffs and guidelines of the NYPSC or the PAPUC, as applicable. Accordingly, there is no unsatisfied performance obligation associated with these customers. The transaction price is applied to the Company’s revenue generating activities through the customer billing process. Because gas and electricity are delivered over time, the Company uses output methods that recognize revenue based on direct measurement of the value transferred, such as units delivered, which provides an accurate measure of value for the gas or electricity delivered. The Gas Company records revenues from residential and commercial customers based on meters read on a cyclical basis throughout each month, while certain large industrial and utility customers’ meters are read at the end of each month. Several meters are read at the end of each month to calculate local production revenues. The Gas Company does not accrue revenue for gas delivered but not yet billed, as the NYPSC requires that such accounting must be adopted during a rate proceeding which the Gas Company has not done. The Gas Company, as part of its currently effective rate plan, has a weather normalization clause as protection against severe weather fluctuations. This affects space heating customers and is activated when degree days are 2.2% greater or less than the 30-year average. As a result, the effect on revenue fluctuations of weather related gas sales is somewhat moderated. Pike recognizes revenues for electric and gas service on a monthly billing cycle basis. Pike does not record unbilled revenues. Pike does not have a weather normalization clause as protection against severe weather. Leatherstocking Gas recognizes revenues for gas service on a monthly billing cycle basis. Leatherstocking Gas does not record unbilled revenues. Leatherstocking Gas does not have a weather normalization clause as protection against severe weather. In addition to weather normalization, the Gas Company has implemented a revenue decoupling mechanism (“RDM”). The RDM reconciles actual delivery service revenues to allowed delivery service revenues (which are based on the annual customer and volume forecasts in the last rate case) for certain residential customers. The Gas Company will refund or surcharge customers for differences between actual and allowed revenues. The shortfall or excess after the annual reconciliation will be surcharged or refunded to customers over a twelve-month period starting September 1 st Revenues are recorded as energy is delivered, generated, or services are provided and billed to customers. Amounts billed are recorded in customer accounts receivable, with payment generally due the following month. For additional disclosures required by ASC 606, see Note 2. ( n) Cost of Sales Cost of sales consists only of the costs of purchasing gas and electricity sold during the period presented. Gas purchases are recorded on readings of suppliers’ meters as of the end of each month. The Company’s rate tariffs include a Gas Adjustment Clause (“GAC”) or Gas Rate Clause (“GRC”) which adjusts rates to reflect changes in gas costs from levels established in the rate setting process. In order to match such costs and revenue, the NYPSC and PAPUC have provided for an annual reconciliation of recoverable GAC and GRC costs with applicable revenue billed. Any excess or deficiency in GAC and GRC revenue billed is deferred and the balance at the reconciliation date is either refunded to or recovered from customers over a subsequent twelve-month period. As part of its rate structure for electric sales, Pike is required to file semi-annually a Statement of Default Services Charges. The Default Service Charges are separated into two components: (1) the Market Price of Electric Supply which is based on the forecast of electric supply costs applied to service classification-specific factors to reflect each service classification’s load characteristics, forecast sales and applicable losses, and (2) an Electric Supply Adjustment Charge to reconcile differences between default service revenues and costs. The new electric rates go into effect on the first day of the month after the filing is accepted. (o) Operating and Maintenance Expense Operating and maintenance expense includes all personnel, administrative, and marketing expenses of the Company, as well as expenses incurred in the maintenance of the Company’s utility property, plant and equipment. 49 Table of Contents (p) Federal Income Tax The Company uses the asset and liability method to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax basis of the Holding Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. In addition, such deferred tax assets and liabilities will be adjusted for the effects of enacted changes in tax laws and rates. (q) Revenue Taxes The Gas Company collects state revenue taxes on residential delivery rates. The amount included in Revenue and Taxes other than Income Taxes was $280,777 and $300,286 in FY 2021 and FY 2020, respectively. Pike collects state taxes on total revenue. The amounts collected were $486,456 and $409,266 in FY 2021 and FY 2020, respectively. (r) Stock Based Compensation The Holding Company accounts for stock based awarded in accordance with FASB ASC No. 718. The Holding Company awarded restricted shares as compensation to our directors. The shares awarded become unrestricted upon a director leaving the board. Directors who also serve as officers of Corning Gas are not compensated for their service as directors. Since these shares are restricted, in recording compensation expense, the expense incurred is recorded at 25% less than the closing price of the stock on the day the stock was awarded. The fair value of stock options is determined using the Black Scholes option pricing model and expense recognition is based on the vesting provisions of the options granted. (s) Earnings Per Share Basic earnings per share are computed by dividing income available for common stock (net income less dividends declared on Series B Preferred Stock) by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For FY 2021, the impact of 10,000 of the stock options outstanding as of September 30, 2021 and the impact of Preferred B shares were determined to be anti-dilutive and were not included in diluted shares. For FY 2020, the impact of 10,000 stock options outstanding as of September 30, 2020 was determined to be anti-dilutive and were not included in diluted shares. The net income and average shares outstanding used to compute basic and diluted earnings per share for FY 2021 and FY 2020 are as follows: FY 2021 Net income attributable to common stockholders $ 1,280,640 Average shares outstanding - basic 3,082,702 Dilutive option shares 2,311 Average shares outstanding - diluted 3,085,013 FY 2020 Net income attributable to common stockholders $ 2,957,095 Add Preferred B Dividends 244,263 Net income $ 3,201,358 Average shares outstanding - basic 3,060,233 Effect of Preferred B Shares 293,116 Average shares outstanding - diluted 3,353,349 (t) Collective Bargaining Agreement The Company had 73 employees as of September 30, 2021, and 72 employees as of September 30, 2020. Of this total, approximately one third are members of the International Brotherhood of Electrical Workers Local 139 labor union working under an agreement effective until April 3, 2023. 50 Table of Contents (u) Joint Ventures Through June 30, 2020, the Holding Company had a 50% investment in Leatherstocking Gas Company, LLC and Leatherstocking Pipeline Company, LLC. The investment and equity in both companies (collectively, “Joint Ventures”) has been recognized in the consolidated financial statements. On July 1, 2020, Leatherstocking Gas Company, LLC distributed it’s New York assets into a new joint venture of which the Holding Company owns 50% and the Holding Company acquired the remaining 50% interests in Leatherstocking Gas, LLC’s Pennsylvania assets and the remaining 50% interests in Leatherstocking Pipeline Company, LLC. See Note 16. The Holding Company has accounted for its equity investments using the equity method of accounting based on the guidelines established in FASB ASC No. 323. In applying the guidance of FASB ASC 323, the Holding Company recognized the investment in the Joint Ventures as an asset at cost. The investment will fluctuate in future periods based on the Holding Company’s allocable share of earnings or losses from the remaining Joint Venture which is recognized through earnings. The Company’s Joint Venture interest was under contract for sale subsequent to September 30, 2021. See Note 17. (v) Preferred Stock and Temporary Equity The Holding Company classifies conditionally redeemable convertible preferred shares, which includes preferred shares subject to redemption upon the occurrence of uncertain events not solely within control of the Holding Company, as temporary equity in the mezzanine section of the consolidated balance sheets, in accordance with the guidance enumerated in FASB ASC No. 480-10 "Distinguishing Liabilities from Equity". The Company also analyzes the embedded conversion feature for bifurcation, based on whether the host instrument has more equity-like or debt-like characteristics. Dividends are recorded as a reduction to retained earnings and issuance costs reduce the initial proceeds and are then accreted over the life of the instrument to the redemption amount. The Holding Company records mandatorily redeemable stock as a liability in accordance with FASB ASC No. 480. Dividends are recorded as interest expense and issuance costs are treated the same way as debt issuance costs. (w) Adoption of New Accounting Guidance On October 1, 2019, we adopted Accounting Standards Update (“ASU”) 2016-02 “Leases” (Accounting Standards Codification (“ASC”) Topic 842), including the amendments thereto, using a modified retrospective transition method of adoption that required no prior period adjustments or charges to retained earnings for cumulative impact. From a lessee standpoint, on December 13, 2019 the Company purchased the only material item for $280,000, which had been previously leased, a section of 10” gas main. Prior to purchase, the Company paid a nominal fee annually for the use of this 10“ gas main. The Company did not change how this lease was accounted for prior to purchase. From a lessor standpoint, the only material lease is the lease of space in the Company’s headquarters to a local appliance company. This lease is an operating lease for which the Company receives less than $50,000 annually. The accounting for the lease did not change upon adoption of the new standard and there was no significant impact on these consolidated financial statements as a result of adoption of the new standard. On October 1, 2020, we adopted ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which amends the existing guidance relating to the disclosure requirements for Defined Benefit Plans. The adoption of this standard did not have a significant impact on the Company’s consolidated financial statements and related disclosures. (x) New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), which provides a model, known as the current expected credit loss model, to estimate the expected lifetime credit loss on financial assets, including trade and other receivables, rather than incurred losses over the remaining life of most financial assets measured at amortized cost. The guidance also requires use of an allowance to record estimated credit losses on available-for-sale debt securities. The new standard is effective for annual and interim periods beginning after December 15, 2022. The Company is currently evaluating the impact of the guidance on their consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 12 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | (2) Revenue from Contracts with Customers The following tables present revenue from contracts with customers as defined in ASC 606, as well as additional revenue from sources other than contracts with customers, disaggregated by major source. For the year ended September 30, 2021 Revenues from contracts with customers Other revenues (a) Total utility operating revenues Corning Gas: Residential gas $ 14,369,001 $ 760,395 $ 15,129,396 Commercial gas 1,892,109 — 1,892,109 Transportation 4,435,578 (98,697 ) 4,336,881 Street lights gas 493 — 493 Wholesale 1,859,538 — 1,859,538 Local production 509,933 — 509,933 Total Corning Gas 23,066,652 661,698 23,728,350 Pike: Residential gas 1,437,506 (2,688 ) 1,434,818 Commercial gas 434,417 — 434,417 Total Pike retail gas 1,871,923 (2,688 ) 1,869,235 Residential electric 4,136,041 205,282 4,341,323 Commercial electric 3,900,393 — 3,900,393 Electric – street lights 132,405 — 132,405 Total Pike retail electric 8,168,839 205,282 8,374,121 Total Pike 10,040,762 202,594 10,243,356 Leatherstocking Companies (acquired July 1, 2020): Residential gas 423,269 — 423,269 Commercial gas 364,235 — 364,235 Industrial Sales 476,335 — 476,335 Total Leatherstocking Companies 1,263,839 — 1,263,839 Total consolidated utility operating revenue $ 34,371,253 $ 864,292 $ 35,235,545 52 Table of Contents For the year ended September 30, 2020 Revenues from contracts with customers Other revenues (a) Total utility operating revenues Corning Gas: Residential gas $ 14,627,661 $ 134,775 $ 14,762,436 Commercial gas 2,081,125 — 2,081,125 Transportation 4,359,621 177,991 4,537,612 Street lights gas 390 — 390 Wholesale 1,731,433 — 1,731,433 Local production 694,237 — 694,237 Total Corning Gas 23,494,467 312,766 23,807,233 Pike: Residential gas 1,139,761 2,932 1,142,693 Commercial gas 303,961 — 303,961 Total Pike retail gas 1,443,722 2,932 1,446,654 Residential electric 3,449,852 139,178 3,589,030 Commercial electric 3,288,582 — 3,288,582 Electric – street lights 123,055 — 123,055 Total Pike retail electric 6,861,489 139,178 7,000,667 Total Pike 8,305,211 142,110 8,447,321 Leatherstocking Companies (from July 1, 2020): Residential gas 47,117 — 47,117 Commercial gas 31,031 — 31,031 Industrial Sales 53,183 — 53,183 Total Leatherstocking Companies 131,331 — 131,331 Total consolidated utility operating revenue $ 31,931,009 $ 454,876 $ 32,385,885 (a) Other revenues include revenue from alternative revenue programs, such as revenue decoupling mechanisms under New York gas rate plans and weather normalization clauses. This also reflects reductions in revenues resulting from the deferral as regulatory liabilities of the net benefits of the federal Tax Act of 2017. The Gas Company has three major customers, Corning Incorporated, New York State Electric & Gas, and Bath Electric, Gas & Water Systems. Although no customer represents at least 10% of our total revenue, the loss of any of these customers could have a significant impact on the Company’s financial results. |
Utility Property, Plant and Equ
Utility Property, Plant and Equipment | 12 Months Ended |
Sep. 30, 2021 | |
Plant: | |
Utility Property, Plant and Equipment | (3) Utility Property, Plant and Equipment The following table summarizes fixed assets included in utility property, plant and equipment on the Holding Company’s Consolidated Balance Sheets at September 30, 2021 and 2020: 2021 2020 Utility Plant $ 5,228,063 $ 5,071,273 Poles & Line 16,925,822 16,747,567 Pipeline 67,353,865 62,778,752 Structures 43,685,341 40,492,351 Land 1,597,660 1,825,453 Construction Work in Progress 8,044,993 5,208,487 All Other 7,704,781 7,619,406 $ 150,540,525 $ 139,743,289 53 Table of Contents Useful lives for the above assets range from 35 to 55 years for utility plant, 30 to 65 years for poles and line, 66 years for pipeline, from 45 to 47 years for structures, 50 to 65 years for land rights and 5 to 25 years for all other and corporate fixed assets. Utility plant includes station equipment, services, meters, regulators including all costs to install those assets. Poles and line include poles, line and conductors. Total mains installed are represented in pipeline. Structures include both regulator station buildings and office and operations buildings. All other plant includes all general plant except for buildings and land and land rights. Accumulated depreciation as of September 30, 2021 and 2020 was $34,001,558 and $30,853,644 respectively. Depreciation expense for FY 2021 and FY 2020 was $3,338,769 and $2,621,385 respectively. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | (4) Marketable Securities A summary of the marketable securities at September 30, 2021 and 2020 is as follows: Cost Basis Unrealized Gain Unrealized Loss Market Value September 30, 2021: Cash and equivalents $ 148,327 $ — $ — $ 148,327 Metlife stock value 53,855 — 2,496 51,359 Government and agency bonds 15,072 1,243 — 16,315 Corning Preferred A Stock 197,875 400,207 — 598,082 Equity securities 1,122,826 367,741 — 1,490,567 Commodities 33,420 — 740 32,680 Total securities $ 1,571,375 $ 769,191 $ 3,236 $ 2,337,330 September 30, 2020: Cash and equivalents $ 120,559 $ — $ — $ 120,559 Metlife stock value 30,701 — — 30,701 Government and agency bonds 143,960 9,312 — 153,272 Corporate bonds 143,196 3,951 — 147,147 Mutual funds 42,664 2,414 — 45,078 Corning Preferred A Stock 572,875 45,830 — 618,705 Equity securities 788,793 265,654 1,054,447 Commodities 21,881 1,322 — 23,203 Total securities $ 1,864,629 $ 328,483 $ — $ 2,193,112 Government and agency bonds have contractual maturity dates of March 15, 2027. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Sep. 30, 2021 | |
Regulated Operations [Abstract] | |
Regulatory Matters | (5) Regulatory Matters Below is a summary of the Gas Company’s deferred regulatory assets as of September 30, 2021 and 2020: 2021 2020 Unrecovered gas and electric costs $ 1,986,198 $ 1,966,184 Deferred regulatory costs 6,112,370 4,894,434 Deferred pension costs 4,902,666 7,352,839 Total regulatory assets $ 13,001,234 $ 14,213,457 Unrecovered gas costs arise from an annual reconciliation of certain gas revenue and costs (as described in Note 1) and are recoverable in customer rates in the year following the reconciliation. 54 Table of Contents The following table summarizes deferred regulatory costs at September 30, 2021 and 2020: 2021 2020 2016 rate case costs $ 118,241 $ 158,353 2020 rate case costs 1,001,411 443,597 2021 rate case costs 204,365 - Deferred interest costs 557,950 740,612 Income tax assets and reconciliation 2,000,510 1,448,365 Storm costs 932,977 1,086,215 Leak repair costs 174,774 349,547 Delivery rate deferral 244,260 513,605 Revenue decoupling 467,449 (153,061 ) All other regulatory costs, net 410,433 307,201 Total $ 6,112,370 $ 4,894,434 Deferred rate case costs are costs that were incurred to litigate prior base rate cases. These costs are recovered in rates over a period determined by the NYPSC or PAPUC. All other deferred costs result from reconciliations approved by the regulators in the last base rate case or by specific Commission directives. Recovery of these costs will be determined by the NYPSC and PAPUC either through Delivery Rate Adjustment or the next rate case. In fiscal year 2015 the Gas Company determined that it met the criteria to record the minimum pension liability as a regulatory asset in accordance with FASB ASC 980-715-25-5. As a result of this change in estimate, amounts previously recorded as Accumulated Other Comprehensive Income, net of tax has been recorded as regulatory assets in the current year in accordance with ASC 980-715-25-8, as well as a related deferred tax liability. The amount of the regulatory asset was $3,645,340 as of September 30, 2021 and $6,307,265 as of September 30, 2020. For periods after the fiscal year ended September 30, 2015, there will be no change to Other Comprehensive Income because of the change in estimate. Factors considered included: (1) consistent recovery of the pension costs on an accrual basis historically and in the current rate case, (2) no indication of expected changes to recovery, and (3) the existence of a reconciliation process to track the recovery of these costs. For these reasons management determined the Gas Company met the criteria as set forth in ASC 980-725-25-5. Also included in pension costs and post-retirement benefits is approximately $1,257,326 and $1,045,574 for FY 2021 and FY 2020, respectively, for regulatory assets and (liabilities) related to pension and post-retirement costs. These amounts include both amounts approved to be amortized in the previous rate case and amounts being accumulated for the next rate case. The Company expects to recover the cost of its regulatory assets. The Company expects that regulatory assets other than deferred unrecovered gas costs and deferred pension costs related to minimum pension liability will be fully recoverable from customers by the end of its next rate case. Total Regulatory Assets on the Consolidated Balance Sheets as of September 30, 2021 amount to $13,001,234 compared to $14,213,457 at September 30, 2020. The Regulatory Assets include $174,774 at September 30, 2021 and $1,435,762 at September 30, 2020 that is subject to Deferred Accounting Petitions. The remaining items in regulatory assets are either approved in rates, part of annual reconciliations approved by the NYSPSC and PAPUC or approved through various commission directives. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | (6) Long-term Debt Long-term debt, including the current portion, was as follows at September 30, 2021 and 2020: 2021 2020 (a) Note Payable - fixed interest rate of 4.16% with monthly installments through November 2027 $ 19,293,736 $ 21,978,316 (b) Note Payable - fixed interest rate of 4.92% with monthly installments through May 2028 8,068,356 9,064,012 (c) Multiple Disbursement Note – fixed interest rate of 4.74% with monthly installments through November 2028 2,719,487 3,035,067 (d) Multiple Disbursement Note – fixed interest rate of 3.64% with monthly installments through November 2028 2,614,859 2,887,401 (e) Multiple Disbursement Note – fixed interest rate of 3.53% with monthly installments through November 2029 1,775,970 1,955,778 (f) Multiple Disbursement Note – fixed interest rate of 3.40% with monthly installments through November 2029 3,504,771 3,687,741 (g) Multiple Disbursement Note – fixed interest rate of 3.40% with monthly installments through March 2031 1,204,530 — (h) Multiple Disbursement Note – variable interest rate through October 2021, fixed at 3.40% thereafter, with monthly installments through November 2031 4,665,000 — (i) Multiple Disbursement Note – variable interest rate through October 2021, fixed at 3.40% thereafter, with monthly installments through November 2031 1,966,823 — 55 Table of Contents (j) Multiple Disbursement Note – variable interest rate through October 2021, fixed at 4.75% thereafter, with monthly installments through November 2031 653,934 — (k) Note Payable – fixed interest rate of 4.89% with monthly installments through February 2029 386,138 431,485 (l) Note Payable – fixed interest rate of 4.75% with monthly installments through February 2029 4,751,148 5,223,833 (m) Note Payable – fixed interest rate of 4.75% with monthly installments through February 2029 501,566 560,752 (n) Paycheck Protection Program loans – forgiven in FY 2021 — 1,173,591 Vehicle loans - variable interest rate ranging from 3.30% to 5.83% 446,546 564,718 Total long-term debt 52,552,864 50,562,694 Less current installments 6,407,545 6,271,068 Long-term debt less current installments $ 46,145,319 $ 44,291,626 The aggregate maturities of long-term debt for each of the five years subsequent to September 30, 2021 are as follows: 2022 $ 6,407,545 2023 $ 6,624,807 2024 $ 6,836,192 2025 $ 7,081,604 2026 $ 7,379,639 (a) On August 31, 2020, the Gas Company entered into a fourth amended replacement and restated credit agreement (“the August 2020 Credit Agreement”) with M&T Bank (“M&T”). The August 2020 Credit Agreement governs the Gas Company’s term note from November 2017 with an original principal of $29,000,000, the Gas Company’s multiple disbursement notes, and the Gas Company’s $8.0 million line of credit loan is subject to customary debt covenants. On November 30, 2017, the Gas Company entered into a long-term debt agreement with M&T for $29 million at a fixed rate of 4.16% with a ten year maturity. Principal and interest payments on this term note commenced on December 30, 2017, with 120 consecutive monthly payments of $296,651 due on the last day of each month, with the unpaid principal and any unpaid interest due and payable in full on November 30, 2027. This term note may be prepaid upon payment of a prepayment premium equal to the greater of 1% of the amount prepaid or the present value of the spread between the 4.16% fixed interest rate and the then current “market rate” based on the most recent U.S. Treasury Obligations with a term corresponding to the remaining period to the maturity date. This term note is subject to the terms of the August 2020 Credit Agreement. (b) On May 23, 2018, Pike entered into a credit agreement (the “May 2018 Credit Agreement”) with M&T and refinanced its outstanding loan with M&T, issuing an $11.2 million term note pursuant to the May 2018 Credit Agreement. The note bears interest at 4.92%. The note is payable in 119 consecutive monthly payments of $118,763 plus accrued interest, beginning on June 23, 2018 with a final payment of unpaid principal and interest on the maturity date of May 23, 2028. The note is secured by all personal property of Pike. Pike will owe a pre-payment penalty of 1% on any pre-paid principal made in advance of the maturity date. This loan is subject to customary debt covenants. (c) On August 15, 2018, the Gas Company entered into a $3.6 million multiple disbursement term note with M&T which permitted draws from time to time in accordance with its terms until October 31, 2018 at which time amounts outstanding under the note totaling $3.6 million converted to a ten year term loan to be payable in 119 equal monthly installments with an additional final installment of unpaid principal and interest due on November 30, 2028. Before converting to a term loan, the note bore interest at the one-month LIBOR rate plus 3%. After October 31, 2018, the interest rate was fixed at 4.71%. This term note is subject to the terms of the August 2020 Credit Agreement. (d) On June 27, 2019, the Gas Company entered into a $3.127 million multiple disbursement term note with Manufactures and Traders Trust Company Bank (“M&T”) which permitted draws from time to time for capital expenditures in accordance with its terms until October 31, 2019 at which time amounts outstanding under the note totaling $3.127 million converted to a ten year term loan, payable in 119 equal monthly installments with an additional final installment of unpaid principal and interest due on November 30, 2029. Before converting to a term loan, borrowings on the note had a variable interest rate of the one-month LIBOR rate plus 3%. After October 31, 2019, the interest rate was fixed at 3.51%. This term note is subject to the terms of the August 2020 Credit Agreement. (e) On June 27, 2019, Pike entered into a $2.072 million multiple disbursement term note with M&T which permitted draws from time to time for capital expenditures in accordance with its terms until October 31, 2019 at which time amounts outstanding under the note totaling $2.072 million converted to a ten year term loan, payable in 119 equal monthly installments with an additional final installment of unpaid principal and interest due on November 30, 2029. Before converting to a term loan, borrowings on the note had a variable interest rate of the one-month LIBOR rate plus 3%. After October 31, 2019, the interest rate was fixed at 3.51%. This term note is subject to the terms of the August 2020 Credit Agreement. 56 Table of Contents (f) On August 31, 2020, Corning Gas entered into a $3.718 million multiple disbursement term note with M&T which permitted draws from time to time to pay down $250,000 of existing M&T debt and for capital expenditures in accordance with its terms until October 31, 2020 at which time amounts outstanding under the note totaling $3.718 million converted to a ten year term loan, payable in 119 equal monthly installments with an additional final installment of unpaid principal and interest due on November 30, 2030. Before converting to a term loan, borrowings on the note had a variable interest rate of 3.0% plus the greater of one-month LIBOR or 0.5%. After October 31, 2020, the interest rate was fixed at 3.5%. This term note is subject to the terms of the June 2021 Credit Agreement. (g) On October 13, 2020, Pike entered into a $1.315 million multiple disbursement term note with M&T which permitted draws from time to time for capital expenditures until it converted into a 10 year term loan, payable in 119 equal monthly installments with an additional final installment of unpaid principal and interest due on March 15, 2021. At March 31, 2021, the interest rate was fixed at 3.4%. (h) On June 25, 2021, Corning Gas entered into a $4.665 million multiple disbursement term note with M&T Bank to retire $850,000 of existing short term debt and which permitted draws from time to time for capital expenditures in accordance with its terms until October 31, 2021 at which time amounts outstanding under the note converted to a ten year term loan, with the final installment of unpaid principal and interest due on October 31, 2031. Before converting to a term loan, borrowings on the note had a variable interest rate of 2.9% plus one-month LIBOR with a floor of 3.4%. After October 31, 2021, the interest rate was fixed at 3.40%. This term note is subject to the terms of the August 2020 Credit Agreement. (i) On August 19, 2021, Pike entered into a $2.21 million multiple disbursement term loan with M&T Bank for capital expenditures and pipeline repairs which permitted draws from time to time until October 31, 2021, at which time amounts outstanding under the loan converted to a ten-year term, loan with the final installment of unpaid principal and interest due on October 31, 2031. The Note bears interest at a variable rate equal to 2.9% plus the one-month LIBOR rate, with a floor of 3.4%. After October 31, 2021, the interest rate is fixed at 3.40%. In connection with the Loan, Pike entered into a fifth amended replacement and restated credit agreement with M&T Bank (the “ Credit Agreement (j) On April 14, 2021, Leatherstocking entered into a $0.800 million multiple disbursement term loan with Wayne Bank which permitted draws from time to time for capital expenditures until it converted into a term loan payable in 119 monthly installments with an additional final installment of unpaid principal and interest due on October 31, 2031. The loan balance at September 30, 2021, was $653,934. At October 31, 2021, the loan balance was $800,000. The interest rate is 4.75% for the entire term of the loan. (k) On December 4, 2018, Pike entered into a demand note with M&T for $510,000, payable in 364 days unless otherwise converted into a term note. On February 1, 2019 Pike converted the $510,000 demand note to a 10 year term loan with a fixed interest rate of 4.89% and monthly principal and interest payments of $5,397. (l) On March 11, 2019, Leatherstocking Gas received a $6,000,000 10 year term loan from Wayne Bank. Most of the borrowed funds were used to retire debt from a predecessor lender. The interest rate for the first five years of the loan is a fixed rate of 4.75%. For years six through ten, the rate will be equal to the five year U.S. Treasury rate plus 2.25%. Prepayment penalties apply. The loan is secured by Leatherstocking Gas and Leatherstocking Pipeline assets, and is guaranteed by Leatherstocking Pipeline. The monthly principal and interest payment for this loan is $ 63,108. The term loan is subject to the terms of a March 2019 Credit Agreement. In October of 2021, this loan was restructured to lock in the interest rate at 4.75% for the remaining term of the loan. See Note 17, Subsequent Events. (m) On August 30, 2019, Leatherstocking Gas received a $615,000 9.5 year term loan from Wayne Bank. This loan was designed to mirror the $6 million term loan described above. The interest rate for the first 5 years of the loan is a fixed rate of 4.75%. For the remaining 5 years, , the rate will be equal to the five-year U.S. Treasury rate plus 2.25%. Prepayment penalties apply. The loan is secured by Leatherstocking Gas and Leatherstocking Pipeline assets and is guaranteed by Leatherstocking Pipeline. The monthly principal and interest payment for this loan is $ 6,745. The term loan is subject to the term of an August 2019 credit agreement. In October of 2021, this loan was restructured to lock in the interest rate at 4.75% for the remaining term of the loan. See Note 17, Subsequent Events. 57 Table of Contents (n) On May 6, 2020, Corning Gas received a $970,900 loan under the U.S. Small Business Administration’s Paycheck Protection Program (“PPP Loan”). On April 28, 2020, Pike received a $137,200 PPP Loan. On July 7, 2020, Leatherstocking received a $65,491 PPP Loan. During FY 2021, all the PPP Loan amounts received were forgiven by the U.S. Small Business Administration. Income from PPP Loan forgiveness for all three loans is included in Other income (expense) in the consolidated statements of income. On March 18, 2021, the NYPSC issued an order requesting information designed to determine the proper disposition of the Corning Gas PPP Loan proceeds. This order was issued prior to the date that the PPP Loans were forgiven. On May 13, 2021, the Company responded to the order by supporting its position that the Company intended to use the entire amount of loan proceeds to fund lost commercial revenues caused by the pandemic, COVID related operating costs, and increased customer uncollectible accounts. The NYPSC has not responded to the Company’s submission. The Company has recorded a regulatory liability of approximately $490,000, pending the outcome of the Company’s response to the NYPSC order. On January 15 2021, Corning Gas borrowed $850,000 from M&T for a three-month period ending on April 15, 2021. The loan was used primarily to pay for transaction costs incurred in connection with our planned merger with Argo, and to pay pension and other operating expenses. The note bears an interest rate of 2.6% plus the one-month LIBOR rate with a floor of 3.1%. This note was repaid in full from the proceeds of the Company’s construction loan with M&T that was signed on June 25, 2021. In March of 2021 On various dates in 2021, PPP Loans in the amount of $1,173,591 were forgiven by the United States Small Business Administration and were recorded as cancellation of debt income. The Company was in compliance with all of its loan covenants as of September 30, 2021. |
Lines of Credit
Lines of Credit | 12 Months Ended |
Sep. 30, 2021 | |
Line of Credit Facility [Abstract] | |
Lines of Credit | (7) Lines of Credit The Gas Company has a revolving line of credit of $8.0 million with M&T subject to the August 2020 Credit Agreement. Outstanding amounts bear interest at a variable rate determined by the Gas Company’s funded debt to EBITDA ratio calculated ninety days after the end of each quarter added to the daily LIBOR rate. This line was renewed under the same terms with no expiration date. The amount outstanding under this line on September 30, 2021 was approximately $4.7 million with an interest rate of 3.1%. The maximum amount outstanding during FY 2021 was $8 million. On August 31, 2016, Pike entered into an agreement with M&T for a $2.0 million revolving line of credit at an interest rate equal to LIBOR plus 2.75% with principal repayable on demand by the lender. This line was renewed under the same terms with no expiration date. The amount outstanding under this line on September 30, 2021 was approximately $1.7 million with an interest rate of 3.25%. The maximum amount outstanding during FY 2021 was $1,956,169. The agreement contains various affirmative and negative covenants of Pike including, (i) a total funded debt to tangible net worth ratio of not greater than 1.4 to 1.0, (ii) a total funded debt to EBITDA ratio of not greater than 3.75 to 1.0, and (iii) a minimum cash flow overage of not less than 1.1 to 1.0, with each of the financial covenants measured quarterly based on Pike’s trailing twelve month operating performance and fiscal quarterly financial statements commencing with the period ended September 30, 2017; compliance, accounting, and financial statement requirements, and prohibitions on changes in management or control, any sale of all or substantially all of its assets, acquisitions of substantially all the asset of any other entity, or other material changes to its business, purposes, structure or operations which could materially adversely affect Pike. On March 11, 2019, Leatherstocking Gas extended an existing $1.0 million line of credit from Wayne Bank to a maximum amount of $1.5 million. The line of credit is for an indefinite period, is guaranteed by Leatherstocking Pipeline, and is secured by Leatherstocking Gas and Leatherstocking Pipeline assets. The interest rate on funds borrowed under the line of credit is the prime rate (3.25% at September 30, 2021). The amount outstanding under this line on September 30, 2021 was approximately $1.3 million. The line of credit is subject to a March 2019 credit agreement. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Preferred Stock | (8) Preferred Stock Series A Cumulative Preferred Stock accrues cumulative dividends at a rate of 6.0% of the liquidation preference per share ($25.00) and are expected to be paid on or about the 14th day of April, July, October and January of each year starting October 14, 2016. The dates of record for the dividends, if any, will be March 31, June 30, September 30 and December 31, immediately preceding the relevant dividend payment date. On September 30, 2023, outstanding shares of Series A Cumulative Preferred Stock will mature and be redeemed solely in cash at a redemption price equal to the liquidation preference per share plus an amount equal to all accrued but unpaid dividends subject to our having funds legally available for redemption under New York law. In the event of a fundamental change as defined on the Certificate of Amendment to the Certificate of Incorporation, holders of Series A Cumulative Preferred Stock have the right to redeem their shares at a redemption price equal to the liquidation preference per share plus an amount equal to all accrued but unpaid dividends prior to the effective date of the fundamental change subject to our having funds legally available for such redemption under New York law. A fundamental change is generally defined as a change of control of the Holding Company. The holders of Series A Cumulative Preferred Stock will have no voting rights except as specifically required by New York laws or by the Charter, as amended by the Certificate of Amendment, which allows voting rights under specific circumstances. If dividends on shares of Series A Cumulative Preferred Stock have not been declared and paid for eight or more consecutive dividend periods, the holders of Series A Cumulative Preferred Stock and Series B Convertible Preferred Stock, voting together as a single class with holders of all other preferred stock of equal rank having similar voting rights, will be entitled at our next special or annual meeting of shareholders to vote for the election of a total of one additional member of our Board of Directors, subject to certain limitations. On July 1, 2020, 50,000 shares of the Company’s 6% Series A Cumulative Preferred Stock valued at $1.25 million were issued in conjunction with the Company’s acquisition of the previously unowned interests in the Leatherstocking Companies. The Series A Cumulative Preferred Stock will, with respect to both dividend rights and rights upon liquidation, winding-up or dissolution of the Corporation, rank: (i) senior to all classes or series of the Corporation’s Common Stock; (ii) senior to any other class or series of the Corporation’s capital stock issued in the future, unless the terms of that capital stock expressly provide that it ranks senior to, or on parity with, the Series A Cumulative Preferred Stock; (iii) on parity with any class or series of the Corporation’s capital stock, the terms of which expressly provide that it will rank on parity with the Series A Cumulative Preferred Stock, including without limitation, the Series B Convertible Preferred Stock and the Series C Cumulative Preferred Stock; and (iv) junior to any other class of series of the Corporation’s capital stock, the terms of which expressly provide that it will rank senior to the Series A Cumulative Preferred Stock, none of which exists on the date hereof, and the issue of which would be subject to the approval of a majority of the outstanding shares of Preferred Stock voting as a class; and (v) subject to funds legally available and payment of or provision for the Corporation’s debts and other liabilities. In accordance with FASB ASC No. 480, because of the mandatory redemption feature, Series A Cumulative Preferred Stock is treated as a liability. The issuance costs are treated as debt issuance costs and will be amortized over the life of the instrument and a direct reduction of the Preferred A shares on the balance sheet. Unamortized debt issuance costs were $20,303 and $30,455 at September 30, 2021 and 2020, respectively. Dividends are recorded as interest expense. As of September 30, 2021, $97,725 was accrued for the dividend paid on October 15, 2021. As of September 30, 2020, $97,725 was accrued for the dividend paid on October 15, 2020. Preferred A dividends recorded as interest expense for FY 2021 and FY 2020 were $390,900 and $334,650, respectively. Series B Convertible Preferred Stock accrues cumulative dividends at a rate of 4.8% of the liquidation preference per share ($20.75) and are expected to be paid on or about the 14th day of April, July, October and January of each year commencing October 14, 2016. The dates of record for the dividends, if any, will be March 31, June 30, September 30 and December 31, immediately preceding the relevant dividend payment date. At any time and from time to time after issuance, the shares of Series B Convertible Preferred Stock are convertible, in whole or in part, at the option of the holder into shares of common stock at the rate of one-and-two-tenths (1.2) shares of our common stock for each one (1) share of Series B Convertible Preferred Stock, subject to adjustment for standard anti-dilution adjustments such as stock dividends or stock distributions; subdivisions or combinations of our common stock; and certain tender or exchange offers by us or one of our subsidiaries for our common stock, in each case subject to certain exceptions. In the event a holder of shares of the Series B Convertible Preferred Stock elects to convert any shares of Series B Convertible Preferred Stock that would result in such shareholder owning more than 10% of the capital stock of the Gas Company under the provisions of Section 70 of the New York Public Service Law, that holder would be unable to exercise the conversion right without prior consent of the NYPSC. The Holding Company will not pay any cash to a holder in respect of such conversion or otherwise settle any such conversion in cash, other than the right of the holder to receive payment in lieu of any fraction of a share in exchange therefor. The NYPSC approved the exercise of conversion rights on any Series B Convertible Preferred Stock by our three existing shareholders of 10% or more of our common stock. On September 30, 2026, outstanding shares of Series B Cumulative Preferred Stock will mature and be redeemed solely in cash at a redemption price equal to the liquidation preference per share plus an amount equal to all accrued but unpaid dividends subject to our having funds legally available under New York law. In the event of a fundamental change as defined on the Certificate of Amendment to the Certificate of Incorporation, holders of Series B Convertible Preferred Stock have the right to redeem their shares at a redemption price equal to the liquidation preference per share plus an amount equal to all accrued but unpaid dividends prior to the effective date of the fundamental change subject to our having funds legally available for such redemption under New York law. A fundamental change is generally defined as a change of control of the Holding Company. 59 Table of Contents The holders of Series B Convertible Preferred Stock will have no voting rights except as specifically required by New York laws or by the Holding Company’s Charter, as amended by the Certificate of Amendment, which allows voting rights under specific circumstances as described in the Certificate of Amendment. If dividends on shares of Series B Convertible Preferred Stock have not been declared and paid for eight or more consecutive dividend periods, the holders of Series B Convertible Preferred Stock and the Series A Cumulative Preferred Stock, voting together as a single class with holders of all other preferred stock of equal rank having similar voting rights, will be entitled at our next special or annual meeting of shareholders to vote for the election of a total of one additional member of our Board of Directors, subject to certain limitations. The Series B Convertible Preferred Stock will, with respect to both dividend rights and rights upon liquidation, winding-up or dissolution of the Corporation, rank: (i) senior to all classes or series of the Corporation’s Common Stock; (ii) senior to any other class or series of the Corporation’s capital stock issued in the future, unless the terms of that capital stock expressly provide that it ranks senior to, or on parity with, the Series B Convertible Preferred Stock; (iii) on parity with any class or series of the Corporation’s capital stock, the terms of which expressly provide that it will rank on parity with the Series B Convertible Preferred Stock, including without limitation, the Series A Cumulative Preferred Stock and the Series C Cumulative Preferred Stock; and (iv) junior to any other class of series of the Corporation’s capital stock, the terms of which expressly provide that it will rank senior to the Series B Convertible Preferred Stock, none of which exists on the date hereof, and the issue of which would be subject to the approval of a majority of the outstanding shares of Preferred Stock voting as a class; and (v) subject to funds legally available and payment of or provision for the Corporation’s debts and other liabilities. In accordance with FASB ASC No. 480, Series B Cumulative Preferred Stock is not considered mandatorily redeemable as a result of the conversion feature presenting a contingency related to the redemption dates. Accordingly, this is not considered a liability. However, as a result of the decision related to conversion and not reaching redemption resting with the holder, this instrument has been classified as temporary equity in accordance with ASC 480. The Company determined that bifurcation of the embedded conversion option feature was not required. Upon conversion, the instrument would be reclassified as permanent equity. Dividends will be recorded each period in the consolidated statement of changes in stockholders’ equity and began to accrue July 1, 2016. As of September 30, 2021, $61,066 was accrued for dividends paid on October 15, 2021. As of September 30, 2020, $61,066 was accrued for dividends paid on October 15, 2020. The issuance costs of approximately $150,000 reduce the initial proceeds and will be accreted until redemption or conversion. Effective March 27, 2020, the Holding Company issued 180,000 shares of newly authorized 6% Series C Cumulative Preferred Stock at $25.00 per share, for gross proceeds of $4,500,000. Series C Cumulative Preferred Stock accrues cumulative dividends at a rate of 6.0% of the liquidation preference per share ($25.00) and are expected to be paid on or about the 14th day of April, July, October and January of each year starting July 14, 2020. The dates of record for the dividends, if any, will be March 31, June 30, September 30 and December 31, immediately preceding the relevant dividend payment date. On September 30, 2026, outstanding shares of Series C Cumulative Preferred Stock will mature and be redeemed solely in cash at a redemption price equal to the liquidation preference per share plus an amount equal to all accrued but unpaid dividends subject to our having funds legally available for redemption under New York law. In the event of a fundamental change as defined on the Certificate of Amendment to the Certificate of Incorporation, holders of Series C Cumulative Preferred Stock have the right to redeem their shares at a redemption price equal to the liquidation preference per share plus an amount equal to all accrued but unpaid dividends prior to the effective date of the fundamental change subject to our having funds legally available for such redemption under New York law. A fundamental change is generally defined as a change of control of the Holding Company. The holders of Series C Cumulative Preferred Stock will have no voting rights except as specifically required by New York laws or by the Charter, as amended by the Certificate of Amendment, which allows voting rights under specific circumstances. The proceeds of this issuance were used to buy the previously unowned interests in the Leatherstocking Companies and to finance capital improvement projects at Pike and Corning. The Series C Cumulative Preferred Stock will, with respect to both dividend rights and rights upon liquidation, winding-up or dissolution of the Corporation, rank: (i) senior to all classes or series of the Corporation’s Common Stock; (ii) senior to any other class or series of the Corporation’s capital stock issued in the future, unless the terms of that capital stock expressly provide that it ranks senior to, or on parity with, the Series C Cumulative Preferred Stock; (iii) on parity with any class or series of the Corporation’s capital stock, the terms of which expressly provide that it will rank on parity with the Series C Cumulative Preferred Stock, including without limitation, the Series A Cumulative Preferred Stock and the Series B Convertible Preferred Stock; and (iv) junior to any other class of series of the Corporation’s capital stock, the terms of which expressly provide that it will rank senior to the Series C Cumulative Preferred Stock, none of which exists on the date hereof, and the issue of which would be subject to the approval of a majority of the outstanding shares of Preferred Stock voting as a class; and (v) subject to funds legally available and payment of or provision for the Corporation’s debts and other liabilities. In accordance with FASB ASC No. 480, because of the mandatory redemption feature, Series C Cumulative Preferred Stock is treated as a liability. The issuance costs are treated as debt issuance costs and will be amortized over the life of the instrument and a direct reduction of the Preferred C shares on the balance sheet. Unamortized debt issuance costs were $1,277 and $1,524 at September 30, 2021 and 2020, respectively. Dividends are recorded as interest expense. As of September 30, 2021, $67,500 was accrued for the dividend paid on October 15, 2021. As of September 30, 2020, $67,500 was accrued for the dividend paid on October 15, 2020. Preferred C dividends recorded as interest expense for FY 2021 and FY 2020 were $270,000 and $141,750, respectively. 60 Table of Contents (9) Stockholders’ Equity and Stock-based Compensation For FY 2021, there were a total of 11,030 shares of common stock issued for $78,711 of services and $51,749 in connection with the DRIP (dividend reinvestment program). For FY 2020, there were a total of 25,487 shares of common stock issued for $177,675 of services and $201,940 in connection with the DRIP (dividend reinvestment program). Shares issued were as follows: Year ended September 30, 2021 Year ended September 30, 2020 Shares Amount Shares Amount Dividend reinvestment program (DRIP) 3,380 $ 51,749 12,287 $ 201,940 Directors 3,150 40,163 12,600 167,041 Leatherstocking Gas Company — — 600 10,634 Officers 4,500 38,548 — — Total 11,030 $ 130,460 25,487 $ 379,615 Stock Options: On each of September 22, 2021 and August 31, 2020, immediately vested options to purchase 10,000 shares of the Company’s common stock were issued to the Company’s CFO. There were no stock options outstanding as of October 1, 2019. The following table summarizes this activity: Weighted Weighted Average Number of Average Remaining Options Exercise Price Life (years) Outstanding at September 30, 2019 — — — Granted 10,000 $ 16.50 — Exercised — — — Expired or Forfeited — — — Outstanding at September 30, 2020 10,000 $ 16.50 9.92 Granted 10,000 $ 23.50 — Exercised — — — Expired or Forfeited — — — Outstanding at September 30, 2021 20,000 $ 19.75 9.45 The Black-Scholes-Merton option pricing model was used to estimate the fair value of share-based awards under FASB ASC Topic 718. The Black-Scholes-Merton option pricing model incorporates various and highly subjective assumptions, including expected term and share price volatility. The expected term of options granted was estimated to be the average of the vesting term, historical exercise and forfeiture rates, and the contractual life of the option. The share price volatility at the grant date is estimated using historical stock prices based upon the expected term of the options granted. The risk-free interest rate assumption is determined using the rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. The following table summarizes the assumptions used to compute the fair value of the stock options granted: Year ended Year ended September 30, 2021 September 30, 2020 Assumptions for Black-Scholes: Expected term in years 0.75 5.0 Volatility 29.54% 22.55% Risk-free interest rate 0.08% 0.28% Dividend yield 2.66% 3.52% Value of options granted: Weighted average fair value per option $ 1.75 $ 1.95 Fair value of options granted $ 17,500 $ 19,505 61 Table of Contents Dividends: Dividends on shares of common stock are accrued when declared by the board of directors. As of September 30, 2021, $469,230 was accrued for dividends paid on October 15, 2021 to stockholders of record on September 30, 2021. As of September 30, 2020, $468,235 was accrued for dividends paid on October 15, 2020 to stockholders of record on September 30, 2020. Total dividends for FY 2021 and FY 2020 were $1,879,591 and $1,843,983, respectively. |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-based Compensation | 12 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity and Stock-based Compensation | (9) Stockholders’ Equity and Stock-based Compensation |
Investment in Joint Ventures
Investment in Joint Ventures | 12 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Joint Ventures | (10) Investment in Joint Ventures The Holding Company had an interest in Leatherstocking Gas and Leatherstocking Pipeline, each of which was a joint venture with Mirabito Regulated Industries, LLC (“Mirabito”), accounted for by the equity method. On July 1, 2020, Leatherstocking Gas Company, LLC distributed to its members franchises, engineering and gas pipeline assets located in New York having a book value of $0.532 million. These assets were then contributed to the equity of Leatherstocking Gas Company of New York, Inc. The Company owns 50% of the common shares of the newly formed Leatherstocking Gas Company of New York, Inc. and accounts for this investment using the equity method of accounting . The following table represents the Holding Company’s investment activity in the Joint Ventures at September 30, 2021 and September 30, 2020: 2021 2020 Beginning balance in investment in joint ventures $ 264,640 $ 2,597,919 Acquisition of previously unowned 50% interest in the Leatherstocking Companies — (2,281,351 ) Cost adjustment (808 ) — Loss in joint ventures during year (2,652 ) (51,928 ) Ending balance in joint ventures $ 261,180 $ 264,640 As of and for the year ended September 30, 2021, the Joint Venture had assets of $0.528 million, liabilities of $0 million and a net loss of approximately ($5,000). As of and for the year ended September 30, 2020, the Joint Venture had assets of $0.527 million, liabilities of $0 million and combined net losses of approximately ($104,000). |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (11) Income Taxes Income tax expense for the years ended September 30 is as follows: 2021 2020 Current $ 17,732 $ (272,079 ) Deferred 446,070 1,232,417 Total $ 463,802 $ 960,338 Actual income tax expense differs from the expected tax expense computed at the statuary rate of 21.00% for the years ended September 30, 2021 and September 30, 2020 as follows: 2021 2020 Expected federal tax expense $ 417,628 $ 873,956 PPP Forgiveness (246,454 ) — AMT credit refund — (272,079 ) Preferred dividends 146,302 100,566 State tax expense (net of federal) 145,538 291,388 Other, net 788 (33,493 ) Actual tax expense $ 463,802 $ 960,338 62 Table of Contents The tax effects of temporary differences that result in deferred income tax assets and liabilities at September 30 are as follows: 2021 2020 Deferred income tax assets: NOL carryforwards $ 2,592,109 $ 2,116,346 Post-retirement benefit obligations 1,709,186 2,592,958 Customer contribution 1,339,331 1,290,631 Deferred compensation reserve 389,864 375,720 Regulatory reconciliation tax assets 51,501 434,833 Total deferred income tax assets 6,081,991 6,810,488 Deferred income tax liabilities: Property, plant and equipment, principally due to differences in depreciation 10,602,097 9,653,332 Pension benefit obligations 1,434,480 2,119,400 Regulatory reconciliation tax liabilities 671,802 1,120,246 Bargain purchase 665,456 665,456 Recoverable fuel costs 508,801 428,093 Storm costs 289,130 336,618 Unbilled revenue 60,078 63,175 Total deferred income tax liabilities 14,231,844 14,386,320 Net deferred income tax liabilities $ 8,149,853 $ 7,575,832 As of September 30, 2021,the Company has a federal net operating loss carryforward of $4.9 million, of which $3.39 million will expire if unused in FY 2032 through 2037, and New York and Pennsylvania state tax net operating loss carry forwards of approximately $12.1 million, which will expire if unused in FY 2034 through 2040 as of September 30, 2021 that begin to expire in 2032 The alternate minimum tax (“AMT”) credit carryover of $0.3 million along with estimated tax payments of $69,698, were refunded in the third quarter of fiscal 2020. The Company paid no income taxes during FY 2020. The NYSPSC issued an order in Case 17-M-0815 that required the Company to quantify the amount of the deferred taxes that are due customers as a result of the 2017 Tax Act. The PAPUC issued a similar order in Case M-2018-2641242. The estimated amount due customers has been recorded as regulatory liability in the amount of $3,243,054, at 2020. The impact of the change in the Tax Act on deferred regulatory balances per Case 17-M-0815 was reflected in customer rates effective February 1, 2021. The impact of the change in the Tax Act on deferred regulatory balances per Case M-2018-2641242 was reflected in customer rates effective July 28, 2021. The accounting rules for uncertain taxes provide 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 Holding Company has evaluated its tax positions and has not identified any significant uncertain tax positions. The Holding 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 Holding Company files a consolidated federal income tax return and a consolidated New York State tax return. The Holding Company and Pike file separate company Pennsylvania state income tax returns. |
Pension and Other Post-retireme
Pension and Other Post-retirement Benefit Plans | 12 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Other Post-retirement Benefit Plans | (12) Pension and Other Post-Retirement Benefit Plans There are currently three covered participants related to the deferred compensation obligation that are all former officers. The liability on the consolidated balance sheets represents the present value of the future obligation. In 1997, the Gas Company established a trust (the Rabbi Trust) to fund a deferred compensation plan for certain officers. The fair market value of assets in the trust was $2,285,971 (plus $51,359 in additional stock) and $2,162,421 (plus $30,700 in additional stock) at September 30, 2021 and 2020, respectively, and the plan liability, which is labeled as deferred compensation on the consolidated balance sheets, was $1,417,686 and $1,366,256 at September 30, 2021 and 2020, respectively. The assets of the trust are available to general creditors in the event of insolvency. In 2021, the mortality assumption was based on the 2008 VBT Primary Male Smoker tables with generational improvements using scale MP-2020 for two of the covered participants which resulted in an increase in the liabilities of $51,430. 63 Table of Contents The Gas Company has defined benefit pension plans covering substantially all of its employees. The benefits are based on years of service and the employee’s highest average compensation during a specified period. The Gas Company makes annual contributions to the plans equal to amounts determined in accordance with the funding requirements of the Employee Retirement Security Act of 1974. Contributions are intended to provide for benefits attributed for service to date, and those expected to be earned in the future. In addition to the Gas Company’s defined benefit pension plans, the Gas Company offers post-retirement benefits comprised of medical and life coverage to its employees who meet certain age and service criteria. For union participants who retire on or after September 2, 1992, the Gas Company cost for post-retirement benefits is contractually limited and will not exceed $150 per month. This contract is in effect until April 3, 2023. The monthly benefit for all non-union employees, who retire between the ages of 62 and 65, will be the lesser of 40% of the retiree’s plan premium or $150. After age 65, the Gas Company pays up to $150 a month for the cost of the retiree’s supplemental plan. In addition, the Gas Company offers limited life insurance coverage to active employees and retirees. The post-retirement benefit plan is not funded. The Gas Company accrues the cost of providing post-retirement benefits during the active service period of the employee. The following table shows reconciliations of the Gas Company’s pension and post-retirement plan benefits as of September 30: Pension Benefits Post-retirement Benefits 2021 2020 2021 2020 Change in benefit obligations: Benefit obligation at beginning of year $ 27,235,928 $ 25,599,774 $ 1,299,366 $ 1,334,577 Service cost (excluding expected expenses) 695,490 649,444 18,957 18,533 Interest cost 963,834 985,296 27,891 37,021 Participant contributions — — 116,848 101,339 Actuarial gain (loss) (303,614 ) 1,265,309 41,303 (10,472 ) Benefits paid (1,337,900 ) (1,263,895 ) (191,498 ) (181,632 ) Curtailments — — — — Benefit obligation at end of year 27,253,738 27,235,928 1,312,867 1,299,366 Change in plan assets: Fair value of plan assets at beginning of year 19,460,425 17,540,516 — — Actual return on plan assets 2,859,830 1,859,129 — — Company contributions 511,266 1,423,285 74,650 80,293 Participant contributions — — 116,848 101,339 Benefits paid (1,445,004 ) (1,362,505 ) (191,498 ) (181,632 ) Fair value of plan assets at end of year 21,386,517 19,460,425 — — Funded status (5,867,221 ) (7,775,503 ) (1,312,867 ) (1,299,366 ) Unrecognized net actuarial loss/(gain) 3,475,499 6,161,807 63,168 23,547 Unrecognized prior service cost — — 106,673 121,911 (Accrued) prepaid benefit cost (2,391,722 ) (1,613,696 ) (1,143,026 ) (1,153,908 ) Accrued contribution — — — — Amounts recognized in the consolidated balance sheets consists of: accrued benefit liability (5,867,221 ) (7,775,503 ) (1,312,867 ) (1,299,366 ) Amounts recognized in the balance sheets consist of: Accrued pension cost as of beginning of fiscal year (1,613,696 ) (1,710,951 ) (1,153,908 ) (1,162,051 ) Pension (cost) (1,187,753 ) (1,289,292 ) (63,768 ) (72,150 ) Contributions 511,266 1,423,285 — — Change in receivable contribution (101,539 ) (36,738 ) — — Net benefits paid — — 74,650 80,293 Accrued pension cost as of end of fiscal year (2,391,722 ) (1,613,696 ) (1,143,026 ) (1,153,908 ) Fair value of plan assets at end of year Cash and equivalents $ 416,726 $ 1,958,521 — — Government and agency issues 4,120,431 2,610,037 — — Corporate bonds 3,455,460 3,241,935 — — Fixed index funds — 764,720 — — Fixed income 1,545,879 1,625,944 — — Equity securities 10,845,308 9,259,268 — — Other assets 1,002,713 — — — $ 21,386,517 $ 19,460,425 — — 64 Table of Contents The funded status of both plans totaling a deficiency of approximately $7.2 million and $9.1 million at September 30, 2021 and 2020, respectively, are included in pension costs and post-retirement benefits on the consolidated balance sheets along with an additional pension regulatory liability of approximately $341,000 and $333,000 as of September 30, 2021 and September 30, 2020, respectively for amounts owed to customers. In the fourth quarter of fiscal 2015 the Gas Company determined that it meets the criteria to record these items as a regulatory asset in accordance with FASB ASC No. 980-715-25-5. Amortization of unrecognized net loss for the Retirement Plan for the fiscal year ending September 30, 2021: 1 Projected benefit obligation as of September 30, 2021 $ 27,253,738 2 Plan assets at September 30, 2021 $ 21,386,517 3 Unrecognized loss as of September 30, 2021 $ 3,475,499 4 Ten percent of greater of (1) or (2) $ 2,725,374 5 Unamortized loss subject to amortization - (3) minus (4) $ 750,125 6 Active future service of active plan participants expected to receive benefits 13.23 7 Minimum amortization of unamortized net loss - (5)/(6) $ 56,716 8 Amortization of loss for 2021-2022 $ 699,451 Amortization of unrecognized net loss for the Post-Retirement Plan for the fiscal year ended September 30, 2021: Unrecognized net loss at October 1, 2020 subject to amortization $ 106,673 Amortization period 14.9 years Amortization for 2021 - 2022 (loss divided by period) $ 7,159 The service cost component of our pension and other postretirement plans, net of amounts capitalized, are reflected in “Operating and maintenance expense” on the Consolidated Statements of Income. The non-service cost components, net of amounts capitalized as a regulatory asset, are reflected in “Other expense” on the Consolidated Statements of Income. Net periodic benefit cost includes the following components: Pension Benefits Post-retirement Benefits FY 2021 FY 2020 FY 2021 FY 2020 Components of net period benefit cost: Service cost $ 794,490 $ 744,444 $ 18,957 $ 18,533 Interest cost 963,834 985,296 27,891 37,021 Expected return on plan assets (1,445,657 ) (1,300,997 ) — — Amortization of prior service — — 15,238 13,979 Amortization of unrecognized actuarial loss 976,625 897,287 1,682 2,617 Net periodic benefit cost $ 1,289,292 $ 1,326,030 $ 63,768 $ 72,150 For ratemaking and financial statement purposes, pension and post-retirement represents the amount approved by the NYPSC in the Gas Company’s most recently approved rate case. Pension and post retirement expense (benefit) for ratemaking and financial statement purposes was $941,428 and $933,454 for FY 2021 and FY 2020, respectively. The difference between the pension expense (benefit) for ratemaking and financial statement purposes, and the amount computed above has been deferred as regulatory assets and are not included in the prepaid pension cost noted above. The cumulative amounts deferred equal $1,257,326 and $1,045,574 as of September 30, 2021 and 2020, respectively. 65 Table of Contents Pension Benefits Post-retirement Benefits 2021 2020 2021 2020 Weighted average assumptions used to determine net period cost at September 30: Discount rate 3.64% 3.64% 2.53% 2.21% Salary increases 3.50% 3.50% N/A N/A Expected return on assets 6.50% 7.50% N/A N/A For FY 2021 and FY 2020, the discount rate was prepared by utilizing an analysis of the plan’s expected future cash flows and high-quality fixed-income investments currently available and expected to be available during the period to maturity of the pension benefits. The discount rate used is an estimate of the rate at which a defined benefit pension plan could settle its obligations. Rather than using a rate and curve developed using a bond portfolio, this method selects individual bonds to match to the expected cash flows of the Plan. Management feels this provides a more accurate depiction of the true cost to the Plan to settle the obligations as the Plan could theoretically go into the marketplace and purchase the specific bonds used in the analysis in order to settle the obligations of the Plan. The expected returns on plan assets of the Retirement Plan and Post-Retirement Plan are applied to the market-related value of plan assets of the respective plans. For the Retirement Plan, the market-related value of assets recognizes the performance of its portfolio over five years and reduces the effects of short-term market fluctuations. The Gas Company’s Retirement Plan assets are invested by a manager that reports at least annually to the Gas Company’s Investment Committee for review and evaluation. The manager has been given the objective to achieve modest capital appreciation with a secondary objective of achieving a relatively high level of current income using a mix of cash equivalents, fixed income securities and equities to structure a balanced investment portfolio. The Investment Committee does not reserve control over investment decisions, with the exception of certain limitations, and holds the manager responsible and accountable to achieve the stated objectives. The market-related value of Post-Retirement Plan assets is set equal to market value. For measurement purposes, an annual rate of increase in the per capita cost of covered benefits (health care cost trend rate) of 6.75% for pre-65 year old medical, 4.40% for post 65 year old medical, and 6.75% for prescription drug benefits was assumed for FY 2022. The Gas Company contributed $511,266 and $1,423,285 to the Retirement Plan during FY 2021 and FY 2020, respectively. The estimated pension plan benefit payments are as follows: 2022 $ 1,485,220 2023 $ 1,493,007 2024 $ 1,529,429 2025 $ 1,599,886 2026 $ 1,596,310 2027+ $ 7,684,137 The Gas Company also maintains the Corning Natural Gas Corporation Employee Savings Plan (the “Savings Plan”). All employees of the Gas Company who work for more than 1,000 hours per year and who have completed one year of service may enroll in the Savings Plan at the beginning of each calendar quarter. Under the Savings Plan, participants may contribute up to 50% of their wages subject to limits imposed by ERISA and federal tax law. For all employees, the Gas Company matches one-half of the participant’s contribution up to a total of 6% of the participant’s wages. The plan is subject to the federal limitation. The Gas Company contribution to the plan were $114,463 in FY 2021 and $105,225 in FY 2020. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | (13) Segment Reporting The Company’s reportable segments have been determined based upon the nature of the products and services offered, customer base, availability of discrete internal financial information, homogeneity of products, delivery channel and other factors. The Corning Natural Gas Corporation (the “Gas Company”) is a gas distribution company providing gas on a commodity and transportation basis to its customers in the Southern Tier of New York State. Pike County Light & Power Company (“Pike”) provides electricity and natural gas to Pike County, Pennsylvania. The Holding Company is the parent company of all subsidiaries and has a 50% ownership in Leatherstocking New York. Leatherstocking Gas and Leatherstocking Pipeline are presented together as the Leatherstocking Companies in the table below. Leatherstocking Gas provides natural gas service to customers in northeast Pennsylvania. Leatherstocking pipeline has had no revenues since 2018. Corning Natural Gas Appliance Corporation’s (the “Appliance Company”) information is presented with the Holding Company as it is has little activity. The following table reflects the results of the segments consistent with the Holding Company’s internal financial reporting process. The following results are used in part, by management, both in evaluating the performance of, and in allocating resources to, each of the segments. For the year ended September 30, 2021 Gas Company Pike Leatherstocking Companies* Holding Company Total Consolidated Total electric utility revenue $ — $ 8,374,121 $ — $ — $ 8,374,121 Total gas utility revenue $ 23,728,350 $ 1,869,235 $ 1,263,839 $ — $ 26,861,424 Investment income $ 390,952 $ — $ — $ 67 $ 391,019 Equity investment (loss) $ — $ — $ — $ (2,652 ) $ (2,652 ) Net income (loss) $ 2,482,074 $ 564,361 $ (306,420 ) $ (1,215,112 ) $ 1,524,903 Income tax expense (benefit) $ 551,322 $ 210,772 $ (115,379 ) $ (182,913 ) $ 463,802 Interest expense $ 1,758,821 $ 638,890 $ 326,744 $ 708,924 $ 3,433,379 Depreciation expense $ 1,944,330 $ 956,294 $ 434,485 $ 3,660 $ 3,338,769 Amortization expense $ 262,598 $ 358,765 $ 12,166 $ 48,024 $ 681,553 Total assets $ 98,563,008 $ 32,070,853 $ 12,646,747 $ 774,139 $ 144,054,747 Capital expenditures $ 7,176,122 $ 3,051,225 $ 760,744 $ — $ 10,988,091 * acquired July 1, 2020 For the year ended September 30, 2020 Gas Company Pike Leatherstocking Companies* Holding Company Total Consolidated Total electric utility revenue $ — $ 7,000,667 $ — $ — $ 7,000,667 Total gas utility revenue $ 23,807,233 $ 1,446,654 $ 131,331 $ — $ 25,385,218 Investment income $ 181,978 $ — $ — $ 133 $ 182,111 Equity investment (loss) $ — $ — $ — $ (51,928 ) $ (51,928 ) Net income (loss) $ 3,198,642 $ 295,258 $ (124,639 ) $ (167,903 ) $ 3,201,358 Income tax expense (benefit) $ 1,236,697 $ 156,769 $ (54,597 ) $ (378,531 ) $ 960,338 Interest expense $ 1,284,074 $ 669,002 $ 89,729 $ 524,259 $ 2,567,064 Depreciation expense $ 1,880,619 $ 658,667 $ 78,439 $ 3,660 $ 2,621,385 Amortization expense $ 278,408 $ 401,882 $ 3,042 $ 47,859 $ 731,191 Total assets $ 94,147,736 $ 29,165,796 $ 12,326,387 $ 819,387 $ 136,459,306 Capital expenditures $ 6,686,081 $ 1,986,081 $ — $ — $ 8,672,162 *from July 1, 2020 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (14) Commitments and Contingencies The Gas Company is a local distribution company and has contracted for gas supply from various sources to provide the commodity to the city gates. The city gate is the transfer point at which we take ownership of the gas supply from local producers and interstate pipelines and billing metering starts. The Gas Company maintains storage capacity of approximately 736,000 dekatherms. The Gas Company is responsible for managing its gas supply assets. At September 30, 2021, the Gas Company had 586,655 dekatherms at a cost of $1,366,341 in storage. As the result of these actions, we anticipate that the Gas Company will have sufficient gas to supply our customers for the 2021-2022 winter heating season. At September 30, 2020, the Gas Company had 573,609 dekatherms at a cost of $995,341 in storage. The contract with O&R should provide sufficient electricity and natural gas to supply Pike for the 2021-2022 winter heating and summer cooling. Leatherstocking Gas has a supply agreement with Cabot Oil and Gas that expires in August of 2026. 67 Table of Contents The Gas Company has secured the NYPSC required fixed price and storage gas supply for the winter season and is managing its gas storage and gas contracts to assure that the Gas Company follows its gas supply and acquisition plan. The gas supply plan is a formal document that defines how we acquire natural gas to supply our customers. The plan is submitted to the NYPSC every year and adherence to the plan is a regulatory mandate. Assuming no extraordinary conditions for the winter season, gas supply, both flowing and storage, will be adequate to serve our customers. Environmental Considerations: The Company is subject to various federal, state and local environments laws and regulations. The Company has established procedures for the ongoing evaluation of its operations to identify potential environmental exposures and assure compliance with regulatory policies and procedures. Management believes the Company is in compliance with all applicable regulations. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (15) Related Party Transactions Related party receivables are expenditures paid on behalf of the Holding Company’s joint venture investments. The outstanding receivable as of September 30, 2021 and September 30, 2020 was $- and $9,032 respectively. |
Business Acquisition
Business Acquisition | 12 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Business Acquisition | (16) Business Acquisition On July 1, 2020, the Company completed the acquisition of its partner’s 50% interests in Leatherstocking Gas Company, LLC, and Leatherstocking Pipeline Company, LLC. Immediately before the acquisition, on July 1, 2020, Leatherstocking Gas Company, LLC distributed to its members franchises, engineering and gas pipeline assets located in New York having a book value of $0.532 million. These assets were then contributed to the equity of Leatherstocking Gas Company of New York, Inc. The Company owns 50% of the common shares of the newly formed Leatherstocking Gas Company of New York, Inc. and accounts for this investment using the equity method of accounting. In October of 2021, the Company’s joint venture partner notified the Company of its decision to exercise its option to acquire the Company’s 50% joint venture interest in Leatherstocking Gas Company of New York, Inc. (See Subsequent Events at Note 17). The acquisition of the Company’s partner’s 50% interest in the Leatherstocking Companies fits the Company’s goal of expanding its service offerings in northeast Pennsylvania. The Company applies the acquisition method of accounting for business acquisitions. Under the acquisition method, the purchase price of an acquisition is assigned to the underlying tangible and intangible assets acquired and liabilities assumed based on their respective fair values at the date of acquisition. The book value of the assets acquires was determined to approximate their fair value on the acquisition date. Amortization of goodwill related to the Leatherstocking Companies acquisition is deductible for tax purposes. Goodwill is included in the total assets of the Leatherstocking Companies segment for segment reporting. The goodwill is primarily attributable to expected synergies and the assembled workforce. Total consideration paid for the acquisition of the interests in the Leatherstocking Companies was $3.2 million, consisting of cash of $1.95 million and 50,000 shares of the Company’s 6% Series A Cumulative Preferred Stock valued at $1.25 million. The Company’s equity in the Leatherstocking Companies prior to the acquisition transaction approximated the fair value of that investment. There were no significant acquisition costs. The following is a summary of the purchase price allocation to the fair value of the Leatherstocking Companies assets and liabilities acquired. Consideration paid: Cash $ 1,950,000 Series A Cumulative Preferred Stock 1,250,000 3,200,000 Fair value of previously held interest 2,281,351 Total 5,481,351 Assets: Goodwill 918,121 Utility property, plant and equipment 11,060,742 Deferred debits 49,732 Cash 56,919 Other current assets 367,127 Total assets acquired 12,452,641 Liabilities: Long term debt 5,985,631 Short term notes 894,644 Current liabilities 91,015 Total liabilities assumed 6,971,290 Total $ 5,481,351 68 Table of Contents The results of the Leatherstocking Companies are included in the Company’s consolidated operating results as of the date the acquisition was completed. The following unaudited pro forma information presents the Company’s consolidated operating results as if the Leatherstocking Companies had occurred at the beginning of FY 2020. The pro forma results do not purport to represent what the Company’s consolidated operating results actually would have been if the transaction had occurred at the beginning of FY 2020 or what the Company’s consolidated operating results will be in the future. Fiscal Year Ended September 30, 2020 Total Revenue $ 33,516,435 Net Income $ 3,161,114 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | (17) Subsequent Events On December 17, 2021, the Gas Company increased its line of credit with M&T Bank from $8 million to $8.5 million. The line of credit is secured by the Gas Company’s utility assets. On December 8, 2021, the Holding Company issued to ACP Crotona Corp. 5,000 shares of newly authorized Series D Cumulative Preferred Stock at a per share price of $1,000 for an aggregate purchase price of $5,000,000. Series D Preferred shares pay a dividend of 1.5%. The Company intends to use the proceeds of the preferred stock issuance to pay down short term debt and to fund capital projects, primarily at Pike and at Leatherstocking. In the event that the Argo merger is not consummated, and at the shareholder’s election, the Company must redeem these shares at an amount equal to the issuance price plus any unpaid dividends. On November 12, 2021, the NYPSC Staff filed its testimony in the Company’s 2021 rate case (20-G-0394), recommending a rate increase of approximately $2.9 million for a one year case, plus reconciliations of several costs and expenses. The Staff position may modified, rejected or accepted by the NYPSC in its final order in Case 20-GT-0394. The NYPSC has been notified that settlement discussions among the parties in this case are scheduled to begin on December 16, 2021. On October 12, 2021, Mirabito Regulated Industries, LLC, the 50% joint venture partner of Holding Company in Leatherstocking Gas Company of New York, Inc., notified the Holding Company that it intends to exercise its option to acquire the Holding Company’s 50% joint venture interest in Leatherstocking Gas Company of New York, Inc. for an amount equal to its option price of $100,000. The transaction is scheduled to close on or before December 31, 2021. The Company expects to realize a pre tax loss on this transaction of approximately $158,000. On October 5, 2021, Leatherstocking Gas Company amended two term loans with Wayne Bank whose balances on that date totaled $5,348,850. The loans are scheduled to be fully paid in March of 2029 and in August of 2029. The amendment locked in the current interest rate of 4.75% for the remaining term of the loans, and the Holding Company guaranteed these loans. Prior to amendment, these loans provided for a redetermination of interest rates in March and August of 2024, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Presentation | (a) Principles of Consolidation and Presentation The consolidated financial statements include the Holding Company and its wholly owned subsidiaries, Corning Gas, Pike, the Appliance Company and (from July 1, 2020) Leatherstocking Gas and Leatherstocking Pipeline. All intercompany accounts and balances have been eliminated. It is the Company’s policy to reclassify amounts in the prior year financial statements to conform to the current year presentation. |
Utility Property, Plant and Equipment | (b) Utility Property, Plant and Equipment Utility property, plant and equipment are stated at the historical cost of construction or acquisition. These costs include payroll, fringe benefits, materials and supplies and transportation costs. The Company charges normal repairs to maintenance expense. |
Depreciation | (c) Depreciation The Company provides for depreciation for accounting purposes using a straight-line method based on the estimated economic lives of property and equipment as determined by the current rate plan based on the latest depreciation study. At the time utility properties are retired, costs of removal less any salvage are charged to accumulated depreciation. The depreciation rate used for Corning Gas utility plant, expressed as an annual percentage of depreciable property, was 1.9% for the fiscal year ended September 30, 2021 (“FY 2021”) and 1.9% for the fiscal year ended September 30, 2020 (“FY 2020”). The NYPSC allows the Gas Company recovery in revenues to offset costs of building certain projects. The depreciation rate used for Pike, expressed as an annual percentage of depreciable property, was 3.8% for FY 2021 and 2.5% for FY 2020. The depreciation rate used for the Leatherstocking Companies, expressed as an annual percentage of depreciable property, was 4.1% for FY 2021 and 3.4% for FY 2020. The PAPUC allows Leatherstocking Gas to collect revenues from customers to offset cost of gas distribution system build out. |
Accounting for Impairment | (d) Accounting for Impairment FASB ASC No. 360-10-15, “Accounting for the Impairment or Disposal of Long-Lived Assets” establishes accounting standards to account for the impairment of long-lived assets, and certain identifiable intangibles. Under FASB ASC No. 360-10-15, the Company reviews assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. FASB ASC No. 360-10-15 also requires that a rate regulated enterprise recognize an impairment when regulatory assets are no longer probable of recovery. No impairment losses were incurred for FY 2021 and FY 2020. |
Marketable Securities | (e) Marketable Securities Marketable securities are intended to fund the Gas Company’s deferred compensation plan obligations. Such securities are reported at fair value based on quoted market prices. Unrealized gains and losses on debt securities classified as available for sale, net of the related income tax effect, are excluded from income, and reported as a component of accumulated other comprehensive income in stockholders’ equity until realized. Unrealized gains and losses on equity securities are included as a component of investment income in the consolidated statement of income. The cost of securities sold was determined using the specific identification method. For all investments in the unrealized loss position, none have been in an unrealized loss position for more than 12 months. None are other than temporary impairments based on management’s analysis of available market research. In FY 2021 and FY 2020, the Gas Company sold equity securities for realized gains included in earnings of $233,681 and $49,823, respectively. |
Fair Value of Financial Instruments | (f) Fair Value of Financial Instruments The Company has determined the fair value of debt and other financial instruments using a valuation hierarchy. The hierarchy, which prioritizes the inputs used in measuring fair value, consists of three levels. Level 1 uses observable inputs such as quoted prices in active markets; Level 2 uses inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, which is defined as unobservable inputs in which little or no market data exists, requires the Company to develop its own assumptions. The carrying amount of debt on the Consolidated Balance Sheets approximates fair value as a result of instruments bearing interest rates that approximate current market rates for similar instruments, and the carrying amounts for cash, accounts receivable and accounts payable approximate fair value due to their short-term nature. The assets used to fund the pension plan and marketable securities, which fund the Gas Company’s deferred compensation plan, are valued based on Level 1 inputs. The Company has determined the fair value of certain assets through application of FASB ASC 820 “Fair Value Measurements and Disclosures”. 47 Table of Contents Fair value of assets and liabilities measured on a recurring basis at September 30, 2021 and 2020 are as follows: Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Level 2 Level 3 September 30, 2021 Marketable securities $ 2,337,330 $ 2,337,330 $ — $ — September 30, 2020 Marketable securities $ 2,193,112 $ 2,193,112 $ — $ — Financial assets and liabilities valued using level 1 inputs are based on unadjusted quoted market prices within active markets. The pension assets in Note 12 are valued using level 1 inputs. |
Cash and Cash Equivalents | (g) Cash and Cash Equivalents Cash and cash equivalents include time deposits, certificates of deposit, and all highly liquid debt instruments with original maturities of three months or less. Cash and cash equivalents at financial institutions may periodically exceed federally insured limits. |
Accounts Receivable | (h) Accounts Receivable Accounts receivable are stated net of an allowance for doubtful accounts. The Company estimates the allowance based on its analysis of specific balances, taking into consideration the age of past due accounts and relying on rules and guidelines established by the NYPSC and PAPUC regarding customer disconnects. |
Gas Stored Underground | (i) Gas Stored Underground Gas stored underground is carried at an average unit cost method as prescribed by the NYPSC. Pike and Leatherstocking Gas do not have any gas storage. |
Materials and Supplies Inventories | (j) Materials and Supplies Inventories Materials and supplies inventories are stated at the lower of cost or net realizable value, cost being determined on an average unit price basis. |
Debt Issuance Costs | (k) Debt Issuance Costs Debt issuance costs are presented as a direct deduction from the associated debt. Costs associated with the issuance of debt by the Company are amortized over the lives of the related debt. |
Regulatory Matters | (l) Regulatory Matters Certain costs of the Company are deferred and recognized as expenses when they are reflected in rates and recovered from customers as permitted by FASB ASC No. 980. These costs are shown as regulatory assets. Such costs arise from the traditional cost-of-service rate setting approach whereby all prudently incurred costs are generally recoverable through rates. Deferral of these costs is appropriate while the Company’s rates are regulated under a cost-of-service approach of the NYPSC and PAPUC for utilities (see Note 5 - Regulatory Matters). As regulated utilities, the Company defers certain costs for future recovery. In a purely competitive environment, such costs might have been currently expensed. Accordingly, if the Company’s rate settings were changed from a cost-of-service approach and the Gas Company, Pike and Leatherstocking Gas were no longer allowed to defer these costs under FASB ASC No. 980, certain of these assets might not be fully recoverable. However, the Company cannot predict the impact, if any, of competition and continues to operate in a cost-of-service based regulatory environment. Accordingly, the Company believes that accounting under FASB ASC No. 980 is appropriate. 48 Table of Contents (m) Revenue Recognition The Company has the obligation to deliver gas and electricity to its customers. As gas and electricity are immediately available for use upon delivery to the customer, the gas or electricity and its delivery are identifiable as a single performance obligation. The Company recognizes revenues as this performance obligation is satisfied over time as the Company delivers, and its customers simultaneously receive and consume, the gas or electricity. The amount of revenues recognized reflects the consideration the Company expects to receive in exchange for delivering the gas or electricity. Under their tariffs, the transaction price for full-service customers includes the Company’s energy cost and for all customers includes delivery charges determined based on customer class and in accordance with established tariffs and guidelines of the NYPSC or the PAPUC, as applicable. Accordingly, there is no unsatisfied performance obligation associated with these customers. The transaction price is applied to the Company’s revenue generating activities through the customer billing process. Because gas and electricity are delivered over time, the Company uses output methods that recognize revenue based on direct measurement of the value transferred, such as units delivered, which provides an accurate measure of value for the gas or electricity delivered. The Gas Company records revenues from residential and commercial customers based on meters read on a cyclical basis throughout each month, while certain large industrial and utility customers’ meters are read at the end of each month. Several meters are read at the end of each month to calculate local production revenues. The Gas Company does not accrue revenue for gas delivered but not yet billed, as the NYPSC requires that such accounting must be adopted during a rate proceeding which the Gas Company has not done. The Gas Company, as part of its currently effective rate plan, has a weather normalization clause as protection against severe weather fluctuations. This affects space heating customers and is activated when degree days are 2.2% greater or less than the 30-year average. As a result, the effect on revenue fluctuations of weather related gas sales is somewhat moderated. Pike recognizes revenues for electric and gas service on a monthly billing cycle basis. Pike does not record unbilled revenues. Pike does not have a weather normalization clause as protection against severe weather. Leatherstocking Gas recognizes revenues for gas service on a monthly billing cycle basis. Leatherstocking Gas does not record unbilled revenues. Leatherstocking Gas does not have a weather normalization clause as protection against severe weather. In addition to weather normalization, the Gas Company has implemented a revenue decoupling mechanism (“RDM”). The RDM reconciles actual delivery service revenues to allowed delivery service revenues (which are based on the annual customer and volume forecasts in the last rate case) for certain residential customers. The Gas Company will refund or surcharge customers for differences between actual and allowed revenues. The shortfall or excess after the annual reconciliation will be surcharged or refunded to customers over a twelve-month period starting September 1 st Revenues are recorded as energy is delivered, generated, or services are provided and billed to customers. Amounts billed are recorded in customer accounts receivable, with payment generally due the following month. For additional disclosures required by ASC 606, see Note 2. |
Revenue Recognition | (m) Revenue Recognition |
Cost of Sales | ( n) Cost of Sales Cost of sales consists only of the costs of purchasing gas and electricity sold during the period presented. Gas purchases are recorded on readings of suppliers’ meters as of the end of each month. The Company’s rate tariffs include a Gas Adjustment Clause (“GAC”) or Gas Rate Clause (“GRC”) which adjusts rates to reflect changes in gas costs from levels established in the rate setting process. In order to match such costs and revenue, the NYPSC and PAPUC have provided for an annual reconciliation of recoverable GAC and GRC costs with applicable revenue billed. Any excess or deficiency in GAC and GRC revenue billed is deferred and the balance at the reconciliation date is either refunded to or recovered from customers over a subsequent twelve-month period. As part of its rate structure for electric sales, Pike is required to file semi-annually a Statement of Default Services Charges. The Default Service Charges are separated into two components: (1) the Market Price of Electric Supply which is based on the forecast of electric supply costs applied to service classification-specific factors to reflect each service classification’s load characteristics, forecast sales and applicable losses, and (2) an Electric Supply Adjustment Charge to reconcile differences between default service revenues and costs. The new electric rates go into effect on the first day of the month after the filing is accepted. |
Operating and Maintenance Expense | (o) Operating and Maintenance Expense Operating and maintenance expense includes all personnel, administrative, and marketing expenses of the Company, as well as expenses incurred in the maintenance of the Company’s utility property, plant and equipment. 49 Table of Contents (p) Federal Income Tax The Company uses the asset and liability method to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax basis of the Holding Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. In addition, such deferred tax assets and liabilities will be adjusted for the effects of enacted changes in tax laws and rates. |
Federal Income Tax | (p) Federal Income Tax |
Revenue Taxes | (q) Revenue Taxes The Gas Company collects state revenue taxes on residential delivery rates. The amount included in Revenue and Taxes other than Income Taxes was $280,777 and $300,286 in FY 2021 and FY 2020, respectively. Pike collects state taxes on total revenue. The amounts collected were $486,456 and $409,266 in FY 2021 and FY 2020, respectively. |
Stock Based Compensation | (r) Stock Based Compensation The Holding Company accounts for stock based awarded in accordance with FASB ASC No. 718. The Holding Company awarded restricted shares as compensation to our directors. The shares awarded become unrestricted upon a director leaving the board. Directors who also serve as officers of Corning Gas are not compensated for their service as directors. Since these shares are restricted, in recording compensation expense, the expense incurred is recorded at 25% less than the closing price of the stock on the day the stock was awarded. The fair value of stock options is determined using the Black Scholes option pricing model and expense recognition is based on the vesting provisions of the options granted. |
Earnings Per Share | (s) Earnings Per Share Basic earnings per share are computed by dividing income available for common stock (net income less dividends declared on Series B Preferred Stock) by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For FY 2021, the impact of 10,000 of the stock options outstanding as of September 30, 2021 and the impact of Preferred B shares were determined to be anti-dilutive and were not included in diluted shares. For FY 2020, the impact of 10,000 stock options outstanding as of September 30, 2020 was determined to be anti-dilutive and were not included in diluted shares. The net income and average shares outstanding used to compute basic and diluted earnings per share for FY 2021 and FY 2020 are as follows: FY 2021 Net income attributable to common stockholders $ 1,280,640 Average shares outstanding - basic 3,082,702 Dilutive option shares 2,311 Average shares outstanding - diluted 3,085,013 FY 2020 Net income attributable to common stockholders $ 2,957,095 Add Preferred B Dividends 244,263 Net income $ 3,201,358 Average shares outstanding - basic 3,060,233 Effect of Preferred B Shares 293,116 Average shares outstanding - diluted 3,353,349 |
Collective Bargaining Agreement | (t) Collective Bargaining Agreement The Company had 73 employees as of September 30, 2021, and 72 employees as of September 30, 2020. Of this total, approximately one third are members of the International Brotherhood of Electrical Workers Local 139 labor union working under an agreement effective until April 3, 2023. 50 Table of Contents (u) Joint Ventures Through June 30, 2020, the Holding Company had a 50% investment in Leatherstocking Gas Company, LLC and Leatherstocking Pipeline Company, LLC. The investment and equity in both companies (collectively, “Joint Ventures”) has been recognized in the consolidated financial statements. On July 1, 2020, Leatherstocking Gas Company, LLC distributed it’s New York assets into a new joint venture of which the Holding Company owns 50% and the Holding Company acquired the remaining 50% interests in Leatherstocking Gas, LLC’s Pennsylvania assets and the remaining 50% interests in Leatherstocking Pipeline Company, LLC. See Note 16. The Holding Company has accounted for its equity investments using the equity method of accounting based on the guidelines established in FASB ASC No. 323. In applying the guidance of FASB ASC 323, the Holding Company recognized the investment in the Joint Ventures as an asset at cost. The investment will fluctuate in future periods based on the Holding Company’s allocable share of earnings or losses from the remaining Joint Venture which is recognized through earnings. The Company’s Joint Venture interest was under contract for sale subsequent to September 30, 2021. See Note 17. |
Joint Ventures | (u) Joint Ventures |
Preferred Stock and Temporary Equity | (v) Preferred Stock and Temporary Equity The Holding Company classifies conditionally redeemable convertible preferred shares, which includes preferred shares subject to redemption upon the occurrence of uncertain events not solely within control of the Holding Company, as temporary equity in the mezzanine section of the consolidated balance sheets, in accordance with the guidance enumerated in FASB ASC No. 480-10 "Distinguishing Liabilities from Equity". The Company also analyzes the embedded conversion feature for bifurcation, based on whether the host instrument has more equity-like or debt-like characteristics. Dividends are recorded as a reduction to retained earnings and issuance costs reduce the initial proceeds and are then accreted over the life of the instrument to the redemption amount. The Holding Company records mandatorily redeemable stock as a liability in accordance with FASB ASC No. 480. Dividends are recorded as interest expense and issuance costs are treated the same way as debt issuance costs. |
Adoption of New Accounting Guidance | (w) Adoption of New Accounting Guidance On October 1, 2019, we adopted Accounting Standards Update (“ASU”) 2016-02 “Leases” (Accounting Standards Codification (“ASC”) Topic 842), including the amendments thereto, using a modified retrospective transition method of adoption that required no prior period adjustments or charges to retained earnings for cumulative impact. From a lessee standpoint, on December 13, 2019 the Company purchased the only material item for $280,000, which had been previously leased, a section of 10” gas main. Prior to purchase, the Company paid a nominal fee annually for the use of this 10“ gas main. The Company did not change how this lease was accounted for prior to purchase. From a lessor standpoint, the only material lease is the lease of space in the Company’s headquarters to a local appliance company. This lease is an operating lease for which the Company receives less than $50,000 annually. The accounting for the lease did not change upon adoption of the new standard and there was no significant impact on these consolidated financial statements as a result of adoption of the new standard. On October 1, 2020, we adopted ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which amends the existing guidance relating to the disclosure requirements for Defined Benefit Plans. The adoption of this standard did not have a significant impact on the Company’s consolidated financial statements and related disclosures. |
New Accounting Pronouncements Not Yet Adopted | (x) New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), which provides a model, known as the current expected credit loss model, to estimate the expected lifetime credit loss on financial assets, including trade and other receivables, rather than incurred losses over the remaining life of most financial assets measured at amortized cost. The guidance also requires use of an allowance to record estimated credit losses on available-for-sale debt securities. The new standard is effective for annual and interim periods beginning after December 15, 2022. The Company is currently evaluating the impact of the guidance on their consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis | Fair value of assets and liabilities measured on a recurring basis at September 30, 2021 and 2020 are as follows: Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Level 2 Level 3 September 30, 2021 Marketable securities $ 2,337,330 $ 2,337,330 $ — $ — September 30, 2020 Marketable securities $ 2,193,112 $ 2,193,112 $ — $ — |
Schedule of Basic and Diluted Earnings Per Share | For FY 2021, the impact of 10,000 of the stock options outstanding as of September 30, 2021 and the impact of Preferred B shares were determined to be anti-dilutive and were not included in diluted shares. For FY 2020, the impact of 10,000 stock options outstanding as of September 30, 2020 was determined to be anti-dilutive and were not included in diluted shares. The net income and average shares outstanding used to compute basic and diluted earnings per share for FY 2021 and FY 2020 are as follows: FY 2021 Net income attributable to common stockholders $ 1,280,640 Average shares outstanding - basic 3,082,702 Dilutive option shares 2,311 Average shares outstanding - diluted 3,085,013 FY 2020 Net income attributable to common stockholders $ 2,957,095 Add Preferred B Dividends 244,263 Net income $ 3,201,358 Average shares outstanding - basic 3,060,233 Effect of Preferred B Shares 293,116 Average shares outstanding - diluted 3,353,349 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of contracts with customers | The following tables present revenue from contracts with customers as defined in ASC 606, as well as additional revenue from sources other than contracts with customers, disaggregated by major source. For the year ended September 30, 2021 Revenues from contracts with customers Other revenues (a) Total utility operating revenues Corning Gas: Residential gas $ 14,369,001 $ 760,395 $ 15,129,396 Commercial gas 1,892,109 — 1,892,109 Transportation 4,435,578 (98,697 ) 4,336,881 Street lights gas 493 — 493 Wholesale 1,859,538 — 1,859,538 Local production 509,933 — 509,933 Total Corning Gas 23,066,652 661,698 23,728,350 Pike: Residential gas 1,437,506 (2,688 ) 1,434,818 Commercial gas 434,417 — 434,417 Total Pike retail gas 1,871,923 (2,688 ) 1,869,235 Residential electric 4,136,041 205,282 4,341,323 Commercial electric 3,900,393 — 3,900,393 Electric – street lights 132,405 — 132,405 Total Pike retail electric 8,168,839 205,282 8,374,121 Total Pike 10,040,762 202,594 10,243,356 Leatherstocking Companies (acquired July 1, 2020): Residential gas 423,269 — 423,269 Commercial gas 364,235 — 364,235 Industrial Sales 476,335 — 476,335 Total Leatherstocking Companies 1,263,839 — 1,263,839 Total consolidated utility operating revenue $ 34,371,253 $ 864,292 $ 35,235,545 52 Table of Contents For the year ended September 30, 2020 Revenues from contracts with customers Other revenues (a) Total utility operating revenues Corning Gas: Residential gas $ 14,627,661 $ 134,775 $ 14,762,436 Commercial gas 2,081,125 — 2,081,125 Transportation 4,359,621 177,991 4,537,612 Street lights gas 390 — 390 Wholesale 1,731,433 — 1,731,433 Local production 694,237 — 694,237 Total Corning Gas 23,494,467 312,766 23,807,233 Pike: Residential gas 1,139,761 2,932 1,142,693 Commercial gas 303,961 — 303,961 Total Pike retail gas 1,443,722 2,932 1,446,654 Residential electric 3,449,852 139,178 3,589,030 Commercial electric 3,288,582 — 3,288,582 Electric – street lights 123,055 — 123,055 Total Pike retail electric 6,861,489 139,178 7,000,667 Total Pike 8,305,211 142,110 8,447,321 Leatherstocking Companies (from July 1, 2020): Residential gas 47,117 — 47,117 Commercial gas 31,031 — 31,031 Industrial Sales 53,183 — 53,183 Total Leatherstocking Companies 131,331 — 131,331 Total consolidated utility operating revenue $ 31,931,009 $ 454,876 $ 32,385,885 (a) Other revenues include revenue from alternative revenue programs, such as revenue decoupling mechanisms under New York gas rate plans and weather normalization clauses. This also reflects reductions in revenues resulting from the deferral as regulatory liabilities of the net benefits of the federal Tax Act of 2017. |
Utility Property, Plant and E_2
Utility Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Plant: | |
Schedule of Fixed Assets Included in Utility Property, plant and equipment | The following table summarizes fixed assets included in utility property, plant and equipment on the Holding Company’s Consolidated Balance Sheets at September 30, 2021 and 2020: 2021 2020 Utility Plant $ 5,228,063 $ 5,071,273 Poles & Line 16,925,822 16,747,567 Pipeline 67,353,865 62,778,752 Structures 43,685,341 40,492,351 Land 1,597,660 1,825,453 Construction Work in Progress 8,044,993 5,208,487 All Other 7,704,781 7,619,406 $ 150,540,525 $ 139,743,289 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | A summary of the marketable securities at September 30, 2021 and 2020 is as follows: Cost Basis Unrealized Gain Unrealized Loss Market Value September 30, 2021: Cash and equivalents $ 148,327 $ — $ — $ 148,327 Metlife stock value 53,855 — 2,496 51,359 Government and agency bonds 15,072 1,243 — 16,315 Corning Preferred A Stock 197,875 400,207 — 598,082 Equity securities 1,122,826 367,741 — 1,490,567 Commodities 33,420 — 740 32,680 Total securities $ 1,571,375 $ 769,191 $ 3,236 $ 2,337,330 September 30, 2020: Cash and equivalents $ 120,559 $ — $ — $ 120,559 Metlife stock value 30,701 — — 30,701 Government and agency bonds 143,960 9,312 — 153,272 Corporate bonds 143,196 3,951 — 147,147 Mutual funds 42,664 2,414 — 45,078 Corning Preferred A Stock 572,875 45,830 — 618,705 Equity securities 788,793 265,654 1,054,447 Commodities 21,881 1,322 — 23,203 Total securities $ 1,864,629 $ 328,483 $ — $ 2,193,112 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | Below is a summary of the Gas Company’s deferred regulatory assets as of September 30, 2021 and 2020: 2021 2020 Unrecovered gas and electric costs $ 1,986,198 $ 1,966,184 Deferred regulatory costs 6,112,370 4,894,434 Deferred pension costs 4,902,666 7,352,839 Total regulatory assets $ 13,001,234 $ 14,213,457 |
Schedule of Regulatory Costs | 54 Table of Contents The following table summarizes deferred regulatory costs at September 30, 2021 and 2020: 2021 2020 2016 rate case costs $ 118,241 $ 158,353 2020 rate case costs 1,001,411 443,597 2021 rate case costs 204,365 - Deferred interest costs 557,950 740,612 Income tax assets and reconciliation 2,000,510 1,448,365 Storm costs 932,977 1,086,215 Leak repair costs 174,774 349,547 Delivery rate deferral 244,260 513,605 Revenue decoupling 467,449 (153,061 ) All other regulatory costs, net 410,433 307,201 Total $ 6,112,370 $ 4,894,434 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Long-term debt, including the current portion, was as follows at September 30, 2021 and 2020: 2021 2020 (a) Note Payable - fixed interest rate of 4.16% with monthly installments through November 2027 $ 19,293,736 $ 21,978,316 (b) Note Payable - fixed interest rate of 4.92% with monthly installments through May 2028 8,068,356 9,064,012 (c) Multiple Disbursement Note – fixed interest rate of 4.74% with monthly installments through November 2028 2,719,487 3,035,067 (d) Multiple Disbursement Note – fixed interest rate of 3.64% with monthly installments through November 2028 2,614,859 2,887,401 (e) Multiple Disbursement Note – fixed interest rate of 3.53% with monthly installments through November 2029 1,775,970 1,955,778 (f) Multiple Disbursement Note – fixed interest rate of 3.40% with monthly installments through November 2029 3,504,771 3,687,741 (g) Multiple Disbursement Note – fixed interest rate of 3.40% with monthly installments through March 2031 1,204,530 — (h) Multiple Disbursement Note – variable interest rate through October 2021, fixed at 3.40% thereafter, with monthly installments through November 2031 4,665,000 — (i) Multiple Disbursement Note – variable interest rate through October 2021, fixed at 3.40% thereafter, with monthly installments through November 2031 1,966,823 — 55 Table of Contents (j) Multiple Disbursement Note – variable interest rate through October 2021, fixed at 4.75% thereafter, with monthly installments through November 2031 653,934 — (k) Note Payable – fixed interest rate of 4.89% with monthly installments through February 2029 386,138 431,485 (l) Note Payable – fixed interest rate of 4.75% with monthly installments through February 2029 4,751,148 5,223,833 (m) Note Payable – fixed interest rate of 4.75% with monthly installments through February 2029 501,566 560,752 (n) Paycheck Protection Program loans – forgiven in FY 2021 — 1,173,591 Vehicle loans - variable interest rate ranging from 3.30% to 5.83% 446,546 564,718 Total long-term debt 52,552,864 50,562,694 Less current installments 6,407,545 6,271,068 Long-term debt less current installments $ 46,145,319 $ 44,291,626 |
Schedule of Long-Term Debt Maturities | The aggregate maturities of long-term debt for each of the five years subsequent to September 30, 2021 are as follows: 2022 $ 6,407,545 2023 $ 6,624,807 2024 $ 6,836,192 2025 $ 7,081,604 2026 $ 7,379,639 |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock-based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common Stock Issued | For FY 2021, there were a total of 11,030 shares of common stock issued for $78,711 of services and $51,749 in connection with the DRIP (dividend reinvestment program). For FY 2020, there were a total of 25,487 shares of common stock issued for $177,675 of services and $201,940 in connection with the DRIP (dividend reinvestment program). Shares issued were as follows: Year ended September 30, 2021 Year ended September 30, 2020 Shares Amount Shares Amount Dividend reinvestment program (DRIP) 3,380 $ 51,749 12,287 $ 201,940 Directors 3,150 40,163 12,600 167,041 Leatherstocking Gas Company — — 600 10,634 Officers 4,500 38,548 — — Total 11,030 $ 130,460 25,487 $ 379,615 |
Schedule of Stock Option Activity | Stock Options: On each of September 22, 2021 and August 31, 2020, immediately vested options to purchase 10,000 shares of the Company’s common stock were issued to the Company’s CFO. There were no stock options outstanding as of October 1, 2019. The following table summarizes this activity: Weighted Weighted Average Number of Average Remaining Options Exercise Price Life (years) Outstanding at September 30, 2019 — — — Granted 10,000 $ 16.50 — Exercised — — — Expired or Forfeited — — — Outstanding at September 30, 2020 10,000 $ 16.50 9.92 Granted 10,000 $ 23.50 — Exercised — — — Expired or Forfeited — — — Outstanding at September 30, 2021 20,000 $ 19.75 9.45 |
Schedule of Assumptions Fair value of options granted | The following table summarizes the assumptions used to compute the fair value of the stock options granted: Year ended Year ended September 30, 2021 September 30, 2020 Assumptions for Black-Scholes: Expected term in years 0.75 5.0 Volatility 29.54% 22.55% Risk-free interest rate 0.08% 0.28% Dividend yield 2.66% 3.52% Value of options granted: Weighted average fair value per option $ 1.75 $ 1.95 Fair value of options granted $ 17,500 $ 19,505 |
Investment in Joint Ventures (T
Investment in Joint Ventures (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of investment in joint ventures | The following table represents the Holding Company’s investment activity in the Joint Ventures at September 30, 2021 and September 30, 2020: 2021 2020 Beginning balance in investment in joint ventures $ 264,640 $ 2,597,919 Acquisition of previously unowned 50% interest in the Leatherstocking Companies — (2,281,351 ) Cost adjustment (808 ) — Loss in joint ventures during year (2,652 ) (51,928 ) Ending balance in joint ventures $ 261,180 $ 264,640 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Income tax expense for the years ended September 30 is as follows: 2021 2020 Current $ 17,732 $ (272,079 ) Deferred 446,070 1,232,417 Total $ 463,802 $ 960,338 |
Schedule of Reconciliation of Income Tax | Actual income tax expense differs from the expected tax expense computed at the statuary rate of 21.00% for the years ended September 30, 2021 and September 30, 2020 as follows: 2021 2020 Expected federal tax expense $ 417,628 $ 873,956 PPP Forgiveness (246,454 ) — AMT credit refund — (272,079 ) Preferred dividends 146,302 100,566 State tax expense (net of federal) 145,538 291,388 Other, net 788 (33,493 ) Actual tax expense $ 463,802 $ 960,338 |
Schedule of Deferred Income Tax Assets and Liabilities | The tax effects of temporary differences that result in deferred income tax assets and liabilities at September 30 are as follows: 2021 2020 Deferred income tax assets: NOL carryforwards $ 2,592,109 $ 2,116,346 Post-retirement benefit obligations 1,709,186 2,592,958 Customer contribution 1,339,331 1,290,631 Deferred compensation reserve 389,864 375,720 Regulatory reconciliation tax assets 51,501 434,833 Total deferred income tax assets 6,081,991 6,810,488 Deferred income tax liabilities: Property, plant and equipment, principally due to differences in depreciation 10,602,097 9,653,332 Pension benefit obligations 1,434,480 2,119,400 Regulatory reconciliation tax liabilities 671,802 1,120,246 Bargain purchase 665,456 665,456 Recoverable fuel costs 508,801 428,093 Storm costs 289,130 336,618 Unbilled revenue 60,078 63,175 Total deferred income tax liabilities 14,231,844 14,386,320 Net deferred income tax liabilities $ 8,149,853 $ 7,575,832 |
Pension and Other Post-retire_2
Pension and Other Post-retirement Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of reconciliation of pension and post-retirement benefit plans | The following table shows reconciliations of the Gas Company’s pension and post-retirement plan benefits as of September 30: Pension Benefits Post-retirement Benefits 2021 2020 2021 2020 Change in benefit obligations: Benefit obligation at beginning of year $ 27,235,928 $ 25,599,774 $ 1,299,366 $ 1,334,577 Service cost (excluding expected expenses) 695,490 649,444 18,957 18,533 Interest cost 963,834 985,296 27,891 37,021 Participant contributions — — 116,848 101,339 Actuarial gain (loss) (303,614 ) 1,265,309 41,303 (10,472 ) Benefits paid (1,337,900 ) (1,263,895 ) (191,498 ) (181,632 ) Curtailments — — — — Benefit obligation at end of year 27,253,738 27,235,928 1,312,867 1,299,366 Change in plan assets: Fair value of plan assets at beginning of year 19,460,425 17,540,516 — — Actual return on plan assets 2,859,830 1,859,129 — — Company contributions 511,266 1,423,285 74,650 80,293 Participant contributions — — 116,848 101,339 Benefits paid (1,445,004 ) (1,362,505 ) (191,498 ) (181,632 ) Fair value of plan assets at end of year 21,386,517 19,460,425 — — Funded status (5,867,221 ) (7,775,503 ) (1,312,867 ) (1,299,366 ) Unrecognized net actuarial loss/(gain) 3,475,499 6,161,807 63,168 23,547 Unrecognized prior service cost — — 106,673 121,911 (Accrued) prepaid benefit cost (2,391,722 ) (1,613,696 ) (1,143,026 ) (1,153,908 ) Accrued contribution — — — — Amounts recognized in the consolidated balance sheets consists of: accrued benefit liability (5,867,221 ) (7,775,503 ) (1,312,867 ) (1,299,366 ) Amounts recognized in the balance sheets consist of: Accrued pension cost as of beginning of fiscal year (1,613,696 ) (1,710,951 ) (1,153,908 ) (1,162,051 ) Pension (cost) (1,187,753 ) (1,289,292 ) (63,768 ) (72,150 ) Contributions 511,266 1,423,285 — — Change in receivable contribution (101,539 ) (36,738 ) — — Net benefits paid — — 74,650 80,293 Accrued pension cost as of end of fiscal year (2,391,722 ) (1,613,696 ) (1,143,026 ) (1,153,908 ) Fair value of plan assets at end of year Cash and equivalents $ 416,726 $ 1,958,521 — — Government and agency issues 4,120,431 2,610,037 — — Corporate bonds 3,455,460 3,241,935 — — Fixed index funds — 764,720 — — Fixed income 1,545,879 1,625,944 — — Equity securities 10,845,308 9,259,268 — — Other assets 1,002,713 — — — $ 21,386,517 $ 19,460,425 — — |
Schedule of amortization of unrecognized net (gain)/loss | Amortization of unrecognized net loss for the Retirement Plan for the fiscal year ending September 30, 2021: 1 Projected benefit obligation as of September 30, 2021 $ 27,253,738 2 Plan assets at September 30, 2021 $ 21,386,517 3 Unrecognized loss as of September 30, 2021 $ 3,475,499 4 Ten percent of greater of (1) or (2) $ 2,725,374 5 Unamortized loss subject to amortization - (3) minus (4) $ 750,125 6 Active future service of active plan participants expected to receive benefits 13.23 7 Minimum amortization of unamortized net loss - (5)/(6) $ 56,716 8 Amortization of loss for 2021-2022 $ 699,451 Amortization of unrecognized net loss for the Post-Retirement Plan for the fiscal year ended September 30, 2021: Unrecognized net loss at October 1, 2020 subject to amortization $ 106,673 Amortization period 14.9 years Amortization for 2021 - 2022 (loss divided by period) $ 7,159 |
Schedule of components of net periodic benefit cost | The service cost component of our pension and other postretirement plans, net of amounts capitalized, are reflected in “Operating and maintenance expense” on the Consolidated Statements of Income. The non-service cost components, net of amounts capitalized as a regulatory asset, are reflected in “Other expense” on the Consolidated Statements of Income. Net periodic benefit cost includes the following components: Pension Benefits Post-retirement Benefits FY 2021 FY 2020 FY 2021 FY 2020 Components of net period benefit cost: Service cost $ 794,490 $ 744,444 $ 18,957 $ 18,533 Interest cost 963,834 985,296 27,891 37,021 Expected return on plan assets (1,445,657 ) (1,300,997 ) — — Amortization of prior service — — 15,238 13,979 Amortization of unrecognized actuarial loss 976,625 897,287 1,682 2,617 Net periodic benefit cost $ 1,289,292 $ 1,326,030 $ 63,768 $ 72,150 |
Schedule of weighted average assumptions used to determine net period cost | For ratemaking and financial statement purposes, pension and post-retirement represents the amount approved by the NYPSC in the Gas Company’s most recently approved rate case. Pension and post retirement expense (benefit) for ratemaking and financial statement purposes was $941,428 and $933,454 for FY 2021 and FY 2020, respectively. The difference between the pension expense (benefit) for ratemaking and financial statement purposes, and the amount computed above has been deferred as regulatory assets and are not included in the prepaid pension cost noted above. The cumulative amounts deferred equal $1,257,326 and $1,045,574 as of September 30, 2021 and 2020, respectively. 65 Table of Contents Pension Benefits Post-retirement Benefits 2021 2020 2021 2020 Weighted average assumptions used to determine net period cost at September 30: Discount rate 3.64% 3.64% 2.53% 2.21% Salary increases 3.50% 3.50% N/A N/A Expected return on assets 6.50% 7.50% N/A N/A |
Schedule of estimated pension plan payments | The estimated pension plan benefit payments are as follows: 2022 $ 1,485,220 2023 $ 1,493,007 2024 $ 1,529,429 2025 $ 1,599,886 2026 $ 1,596,310 2027+ $ 7,684,137 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of results of the segments consistent with the Holding Company's internal financial reporting process | The following table reflects the results of the segments consistent with the Holding Company’s internal financial reporting process. The following results are used in part, by management, both in evaluating the performance of, and in allocating resources to, each of the segments. For the year ended September 30, 2021 Gas Company Pike Leatherstocking Companies* Holding Company Total Consolidated Total electric utility revenue $ — $ 8,374,121 $ — $ — $ 8,374,121 Total gas utility revenue $ 23,728,350 $ 1,869,235 $ 1,263,839 $ — $ 26,861,424 Investment income $ 390,952 $ — $ — $ 67 $ 391,019 Equity investment (loss) $ — $ — $ — $ (2,652 ) $ (2,652 ) Net income (loss) $ 2,482,074 $ 564,361 $ (306,420 ) $ (1,215,112 ) $ 1,524,903 Income tax expense (benefit) $ 551,322 $ 210,772 $ (115,379 ) $ (182,913 ) $ 463,802 Interest expense $ 1,758,821 $ 638,890 $ 326,744 $ 708,924 $ 3,433,379 Depreciation expense $ 1,944,330 $ 956,294 $ 434,485 $ 3,660 $ 3,338,769 Amortization expense $ 262,598 $ 358,765 $ 12,166 $ 48,024 $ 681,553 Total assets $ 98,563,008 $ 32,070,853 $ 12,646,747 $ 774,139 $ 144,054,747 Capital expenditures $ 7,176,122 $ 3,051,225 $ 760,744 $ — $ 10,988,091 * acquired July 1, 2020 For the year ended September 30, 2020 Gas Company Pike Leatherstocking Companies* Holding Company Total Consolidated Total electric utility revenue $ — $ 7,000,667 $ — $ — $ 7,000,667 Total gas utility revenue $ 23,807,233 $ 1,446,654 $ 131,331 $ — $ 25,385,218 Investment income $ 181,978 $ — $ — $ 133 $ 182,111 Equity investment (loss) $ — $ — $ — $ (51,928 ) $ (51,928 ) Net income (loss) $ 3,198,642 $ 295,258 $ (124,639 ) $ (167,903 ) $ 3,201,358 Income tax expense (benefit) $ 1,236,697 $ 156,769 $ (54,597 ) $ (378,531 ) $ 960,338 Interest expense $ 1,284,074 $ 669,002 $ 89,729 $ 524,259 $ 2,567,064 Depreciation expense $ 1,880,619 $ 658,667 $ 78,439 $ 3,660 $ 2,621,385 Amortization expense $ 278,408 $ 401,882 $ 3,042 $ 47,859 $ 731,191 Total assets $ 94,147,736 $ 29,165,796 $ 12,326,387 $ 819,387 $ 136,459,306 Capital expenditures $ 6,686,081 $ 1,986,081 $ — $ — $ 8,672,162 *from July 1, 2020 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Schedule of fair value of assets acquired and liabilities assumed | Total consideration paid for the acquisition of the interests in the Leatherstocking Companies was $3.2 million, consisting of cash of $1.95 million and 50,000 shares of the Company’s 6% Series A Cumulative Preferred Stock valued at $1.25 million. The Company’s equity in the Leatherstocking Companies prior to the acquisition transaction approximated the fair value of that investment. There were no significant acquisition costs. The following is a summary of the purchase price allocation to the fair value of the Leatherstocking Companies assets and liabilities acquired. Consideration paid: Cash $ 1,950,000 Series A Cumulative Preferred Stock 1,250,000 3,200,000 Fair value of previously held interest 2,281,351 Total 5,481,351 Assets: Goodwill 918,121 Utility property, plant and equipment 11,060,742 Deferred debits 49,732 Cash 56,919 Other current assets 367,127 Total assets acquired 12,452,641 Liabilities: Long term debt 5,985,631 Short term notes 894,644 Current liabilities 91,015 Total liabilities assumed 6,971,290 Total $ 5,481,351 |
Schedule of Pro forma unaudited condensed consolidated financial information | 68 Table of Contents The results of the Leatherstocking Companies are included in the Company’s consolidated operating results as of the date the acquisition was completed. The following unaudited pro forma information presents the Company’s consolidated operating results as if the Leatherstocking Companies had occurred at the beginning of FY 2020. The pro forma results do not purport to represent what the Company’s consolidated operating results actually would have been if the transaction had occurred at the beginning of FY 2020 or what the Company’s consolidated operating results will be in the future. Fiscal Year Ended September 30, 2020 Total Revenue $ 33,516,435 Net Income $ 3,161,114 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||||
Sep. 30, 2021USD ($)itemshares | Sep. 30, 2020USD ($)itemshares | Jan. 12, 2021$ / shares | Jul. 02, 2020 | Jun. 30, 2020 | |
Significant Accounting Policies [Line Items] | |||||
Depreciation rate, annual percentage of depreciable property | 1.90% | 1.90% | |||
Marketable securities, realized gains (losses) | $ | $ 233,681 | $ 49,823 | |||
State revenue taxes collected | $ | $ 280,777 | $ 300,286 | |||
Number of Employees | item | 73 | 72 | |||
Material purchased | $ | $ 280,000 | ||||
Antidilutive securities excluded from computation earning per share | shares | 10,000 | 10,000 | |||
Leatherstocking Gas Company LLC And Leatherstocking Pipeline Company LLC [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Ownership interest | 50.00% | 50.00% | |||
Pike [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Depreciation rate, annual percentage of depreciable property | 3.80% | 2.50% | |||
State revenue taxes collected | $ | $ 486,456 | $ 409,266 | |||
Leatherstocking [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Depreciation rate, annual percentage of depreciable property | 4.10% | 3.40% | |||
Merger Agreement [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Consideration per share | $ / shares | $ 24.75 | ||||
Merger Agreement [Member] | Series A Preferred Stock [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Consideration per share | $ / shares | 25 | ||||
Merger Agreement [Member] | Series B Preferred Stock [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Consideration per share | $ / shares | 29.70 | ||||
Merger Agreement [Member] | Series C Preferred Stock [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Consideration per share | $ / shares | $ 25 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Fair Value of Assets and Liabilities) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 2,337,330 | $ 2,193,112 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,337,330 | 2,193,112 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Net income and average shares outstanding earnings per share) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Summary Of Significant Accounting Policies Net Income And Average Shares Outstanding Earnings Per Share | ||
Net income attributable to common stockholders | $ 1,280,640 | $ 2,957,095 |
Add Preferred B Dividends | 244,263 | 244,263 |
Net income | $ 1,524,903 | $ 3,201,358 |
Average shares outstanding - basic | 3,082,702 | 3,060,233 |
Dilutive option shares | 2,311 | |
Effect of Preferred B Shares | 293,116 | |
Average shares outstanding - diluted | 3,085,013 | 3,353,349 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | $ 34,371,253 | $ 31,931,009 | |||
Other revenues | [1] | 864,292 | 454,876 | ||
Total utility operating revenues | 35,235,545 | 32,385,885 | |||
Corning Residential Gas [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 14,369,001 | 14,627,661 | |||
Other revenues | [1] | 760,395 | 134,775 | ||
Total utility operating revenues | 15,129,396 | 14,762,436 | |||
Corning Commercial Gas [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 1,892,109 | 2,081,125 | |||
Other revenues | [1] | ||||
Total utility operating revenues | 1,892,109 | 2,081,125 | |||
Corning Transportation [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 4,435,578 | 4,359,621 | |||
Other revenues | [1] | (98,697) | 177,991 | ||
Total utility operating revenues | 4,336,881 | 4,537,612 | |||
Corning Street Lights Gas [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 493 | 390 | |||
Other revenues | [1] | ||||
Total utility operating revenues | 493 | 390 | |||
Corning Wholesale [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 1,859,538 | 1,731,433 | |||
Other revenues | [1] | ||||
Total utility operating revenues | 1,859,538 | 1,731,433 | |||
Corning Local Production [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 509,933 | 694,237 | |||
Other revenues | [1] | ||||
Total utility operating revenues | 509,933 | 694,237 | |||
Total Corning Gas [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 23,066,652 | 23,494,467 | |||
Other revenues | [1] | 661,698 | 312,766 | ||
Total utility operating revenues | 23,728,350 | 23,807,233 | |||
Pike Residential Gas [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 1,437,506 | 1,139,761 | |||
Other revenues | [1] | (2,688) | 2,932 | ||
Total utility operating revenues | 1,434,818 | 1,142,693 | |||
Pike Commercial Gas [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 434,417 | 303,961 | |||
Other revenues | [1] | ||||
Total utility operating revenues | 434,417 | 303,961 | |||
Total Pike Retail Gas [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 1,871,923 | 1,443,722 | |||
Other revenues | [1] | (2,688) | 2,932 | ||
Total utility operating revenues | 1,869,235 | 1,446,654 | |||
Pike Residential Electric [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 4,136,041 | 3,449,852 | |||
Other revenues | [1] | 205,282 | 139,178 | ||
Total utility operating revenues | 4,341,323 | 3,589,030 | |||
Pike Commercial Electric [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 3,900,393 | 3,288,582 | |||
Other revenues | [1] | ||||
Total utility operating revenues | 3,900,393 | 3,288,582 | |||
Pike Electric - Street Lights [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 132,405 | 123,055 | |||
Other revenues | [1] | ||||
Total utility operating revenues | 132,405 | 123,055 | |||
Pike Retail Electric [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 8,168,839 | 6,861,489 | |||
Other revenues | [1] | 205,282 | 139,178 | ||
Total utility operating revenues | 8,374,121 | 7,000,667 | |||
Total Pike [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 10,040,762 | 8,305,211 | |||
Other revenues | [1] | 202,594 | 142,110 | ||
Total utility operating revenues | $ 10,243,356 | $ 8,447,321 | |||
Leatherstocking Residential Gas [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | $ 423,269 | $ 47,117 | |||
Other revenues | [1] | ||||
Total utility operating revenues | 423,269 | 47,117 | |||
Leatherstocking Commercial Gas [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 364,235 | 31,031 | |||
Other revenues | [1] | ||||
Total utility operating revenues | 364,235 | 31,031 | |||
Leatherstocking Industrial Sales [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 476,335 | 53,183 | |||
Other revenues | [1] | ||||
Total utility operating revenues | 476,335 | 53,183 | |||
Leatherstocking [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 1,263,839 | 131,331 | |||
Other revenues | [1] | ||||
Total utility operating revenues | $ 1,263,839 | $ 131,331 | |||
[1] | Other revenues include revenue from alternative revenue programs, such as revenue decoupling mechanisms under New York gas rate plans and weather normalization clauses. This also reflects reductions in revenues resulting from the deferral as regulatory liabilities of the net benefits of the federal Tax Act of 2017. |
Utillity Property, Plant and Eq
Utillity Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $ 150,540,525 | $ 139,743,289 |
Accumulated depreciation | 34,001,558 | 30,853,644 |
Depreciation expense | 3,338,769 | 2,621,385 |
Utility Plant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $ 5,228,063 | 5,071,273 |
Utility Plant [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 35 years | |
Utility Plant [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 55 years | |
Poles & Line [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $ 16,925,822 | 16,747,567 |
Poles & Line [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 30 years | |
Poles & Line [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 65 years | |
Pipelines [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $ 67,353,865 | 62,778,752 |
Useful life | 66 years | |
Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $ 43,685,341 | 40,492,351 |
Structures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 45 years | |
Structures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 47 years | |
Land and Land Rights [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $ 1,597,660 | 1,825,453 |
Land and Land Rights [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 50 years | |
Land and Land Rights [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 65 years | |
Construction Work in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $ 8,044,993 | 5,208,487 |
All Other and Corporate [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $ 7,704,781 | $ 7,619,406 |
All Other and Corporate [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
All Other and Corporate [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Marketable Securities | ||
Cost Basis | $ 1,571,375 | $ 1,864,629 |
Unrealized Gain | 769,191 | 328,483 |
Unrealized Loss | 3,236 | |
Market Value | 2,337,330 | 2,193,112 |
Cash and Cash Equivalents [Member] | ||
Marketable Securities | ||
Cost Basis | 148,327 | 120,559 |
Unrealized Gain | ||
Unrealized Loss | ||
Market Value | 148,327 | 120,559 |
Metlife Stock Value [Member] | ||
Marketable Securities | ||
Cost Basis | 53,855 | 30,701 |
Unrealized Gain | ||
Unrealized Loss | 2,496 | |
Market Value | 51,359 | 30,701 |
Government and agency bonds [Member] | ||
Marketable Securities | ||
Cost Basis | 15,072 | 143,960 |
Unrealized Gain | 1,243 | 9,312 |
Unrealized Loss | ||
Market Value | 16,315 | 153,272 |
Corporate bonds [ Member] | ||
Marketable Securities | ||
Cost Basis | 143,196 | |
Unrealized Gain | 3,951 | |
Unrealized Loss | ||
Market Value | 147,147 | |
Mutual Funds [Member] | ||
Marketable Securities | ||
Cost Basis | 42,664 | |
Unrealized Gain | 2,414 | |
Unrealized Loss | ||
Market Value | 45,078 | |
Equity securities [Member] | ||
Marketable Securities | ||
Cost Basis | 1,122,826 | 788,793 |
Unrealized Gain | 367,741 | 265,654 |
Unrealized Loss | ||
Market Value | 1,490,567 | 1,054,447 |
Commodities [Member] | ||
Marketable Securities | ||
Cost Basis | 33,420 | 21,881 |
Unrealized Gain | 1,322 | |
Unrealized Loss | 740 | |
Market Value | 32,680 | 23,203 |
Corning Preferred A Stock [Memer] | ||
Marketable Securities | ||
Cost Basis | 197,875 | 572,875 |
Unrealized Gain | 400,207 | 45,830 |
Unrealized Loss | ||
Market Value | $ 598,082 | $ 618,705 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Regulatory Assets [Line Items] | ||
Regulatory asset amortizations | $ 575,673 | $ 621,679 |
Pension and Other Postretirement Plans Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets, noncurrent | 3,645,340 | 6,307,265 |
Regulatory asset amortizations | 1,257,326 | 1,045,574 |
Regulatory assets | 13,001,234 | 14,213,457 |
Regulatory assets under deferred accounting petitions | $ 174,774 | $ 1,435,762 |
Regulatory Matters (Schedule of
Regulatory Matters (Schedule of Regulatory Assets) (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 13,001,234 | $ 14,213,457 |
Unrecovered Gas Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 1,986,198 | 1,966,184 |
Deferred Regulatory Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 6,112,370 | 4,894,434 |
Pension and Other Postretirement Plans Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 4,902,666 | $ 7,352,839 |
Regulatory Matters (Schedule _2
Regulatory Matters (Schedule of Regulatory Costs) (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 13,001,234 | $ 14,213,457 |
2016 rate case costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 118,241 | 158,353 |
2020 rate case costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 1,001,411 | 443,597 |
2021 rate case costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 204,365 | |
Deferred interest costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 557,950 | 740,612 |
Income tax assets and reconciliation [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 2,000,510 | 1,448,365 |
Storm costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 932,977 | 1,086,215 |
Leak repair costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 174,774 | 349,547 |
Delivery rate deferral [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 244,260 | 513,605 |
Revenue decoupling [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 467,449 | |
Regulatory assets | (153,061) | |
All other regulatory costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 410,433 | 307,201 |
Deferred Regulatory Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 6,112,370 | $ 4,894,434 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) - USD ($) | Jan. 15, 2021 | Oct. 13, 2020 | Jul. 07, 2020 | May 06, 2020 | Mar. 11, 2019 | Feb. 01, 2019 | Oct. 31, 2021 | Mar. 31, 2021 | Oct. 31, 2020 | Apr. 28, 2020 | Aug. 30, 2019 | Jun. 27, 2019 | Oct. 31, 2018 | May 23, 2018 | Nov. 30, 2017 | Sep. 30, 2021 | Sep. 30, 2018 | Oct. 19, 2021 | Jun. 25, 2021 | Apr. 14, 2021 | Sep. 30, 2020 | Aug. 31, 2020 | Oct. 31, 2019 | Dec. 04, 2018 | Aug. 15, 2018 |
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Short term borrowings | $ 7,668,557 | $ 7,698,269 | |||||||||||||||||||||||
Regulatory Liabilities | 2,969,076 | $ 3,243,054 | |||||||||||||||||||||||
Term Note and Agreement [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt, face amount | $ 29,000,000 | ||||||||||||||||||||||||
Multiple Disbursement Note [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit | 8,000,000 | ||||||||||||||||||||||||
Agreement with M&T [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt, face amount | $ 3,127,000 | $ 11,200,000 | $ 29,000,000 | $ 22,100,000 | $ 4,665,000 | $ 3,718,000 | $ 510,000 | $ 3,600,000 | |||||||||||||||||
Issuance date | Jun. 27, 2019 | May 23, 2018 | Nov. 30, 2017 | ||||||||||||||||||||||
Maturity date | Nov. 30, 2029 | May 23, 2028 | Nov. 30, 2027 | ||||||||||||||||||||||
Amortization period | 10 years | 10 years | |||||||||||||||||||||||
Interest rate, variable rate basis | one-month LIBOR rate plus 3% | ||||||||||||||||||||||||
Interest rate, spread on basis | 4.92% | 4.16% | |||||||||||||||||||||||
Periodic payment amount, interest and principal | $ 118,763 | $ 296,651 | |||||||||||||||||||||||
Percentage of pre-payment penalty | 1.00% | ||||||||||||||||||||||||
Agreement with M&T [Member] | Transaction One [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt, face amount | $ 2,072,000 | ||||||||||||||||||||||||
Issuance date | Jun. 27, 2019 | ||||||||||||||||||||||||
Maturity date | Nov. 30, 2029 | ||||||||||||||||||||||||
Amortization period | 10 years | ||||||||||||||||||||||||
Interest rate, variable rate basis | one-month LIBOR rate plus 3% | ||||||||||||||||||||||||
Agreement with M&T [Member] | Term Loan [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt, face amount | $ 850,000 | $ 1,315,000 | $ 510,000 | $ 3,718,000 | $ 3,600,000 | $ 3,127,000 | |||||||||||||||||||
Issuance date | Jan. 15, 2021 | Oct. 13, 2020 | Dec. 4, 2018 | Jun. 25, 2021 | Aug. 31, 2020 | ||||||||||||||||||||
Maturity date | Apr. 15, 2021 | Mar. 15, 2021 | Oct. 31, 2031 | Nov. 30, 2030 | |||||||||||||||||||||
Amortization period | 10 years | 10 years | 10 years | 10 years | |||||||||||||||||||||
Interest rate, variable rate basis | interest rate of 2.6% plus the one-month LIBOR rate with a floor of 3.1% | variable interest rate of 2.9% plus one-month LIBOR with a floor of 3.4%. | variable interest rate of 3.0% plus the greater of one-month LIBOR or 0.5% | ||||||||||||||||||||||
Interest rate, spread on basis | 4.89% | ||||||||||||||||||||||||
Effective interest rate | 3.40% | 3.40% | 3.50% | 3.51% | |||||||||||||||||||||
Periodic payment amount, interest and principal | $ 5,397 | $ 850,000 | $ 250,000 | ||||||||||||||||||||||
Agreement with M&T [Member] | Term Loan [Member] | Transaction One [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt, face amount | $ 2,072,000 | ||||||||||||||||||||||||
Effective interest rate | 3.51% | ||||||||||||||||||||||||
Agreement with M&T [Member] | Term Loan [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Issuance date | Aug. 19, 2021 | ||||||||||||||||||||||||
Maturity date | Oct. 31, 2031 | ||||||||||||||||||||||||
Amortization period | 10 years | ||||||||||||||||||||||||
Interest rate, variable rate basis | variable rate equal to 2.9% plus the one-month LIBOR rate, with a floor of 3.4% | ||||||||||||||||||||||||
Effective interest rate | 3.40% | ||||||||||||||||||||||||
Multiple Disbursement Note November 2028 [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Issuance date | Aug. 15, 2018 | ||||||||||||||||||||||||
Maturity date | Nov. 30, 2028 | ||||||||||||||||||||||||
Amortization period | 10 years | ||||||||||||||||||||||||
Interest rate, variable rate basis | one-month LIBOR rate plus 3% | ||||||||||||||||||||||||
Interest rate, spread on basis | 4.71% | ||||||||||||||||||||||||
Wayne Bank [Member] | Term Loan [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt, face amount | $ 800,000 | 653,934 | $ 800,000 | ||||||||||||||||||||||
Issuance date | Apr. 14, 2021 | ||||||||||||||||||||||||
Maturity date | Oct. 31, 2031 | ||||||||||||||||||||||||
Effective interest rate | 4.75% | ||||||||||||||||||||||||
Wayne Bank [Member] | Term Loan [Member] | First Five Year Interest Rate [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Interest rate, spread on basis | 4.75% | ||||||||||||||||||||||||
Wayne Bank [Member] | Term Loan [Member] | Six year to ten year Interest Rate [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Interest rate, spread on basis | 2.25% | ||||||||||||||||||||||||
Wayne Bank [Member] | Term Loan [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt, face amount | $ 6,000,000 | ||||||||||||||||||||||||
Amortization period | 10 years | ||||||||||||||||||||||||
Effective interest rate | 4.75% | ||||||||||||||||||||||||
Periodic payment amount, interest and principal | $ 63,108 | ||||||||||||||||||||||||
Wayne Bank [Member] | Term Loan [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt, face amount | $ 615,000 | ||||||||||||||||||||||||
Amortization period | 9 years 6 months | ||||||||||||||||||||||||
Effective interest rate | 4.75% | ||||||||||||||||||||||||
Periodic payment amount, interest and principal | $ 6,745 | ||||||||||||||||||||||||
Wayne Bank [Member] | Term Loan [Member] | First Five Year Interest Rate [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Interest rate, spread on basis | 4.75% | ||||||||||||||||||||||||
Wayne Bank [Member] | Term Loan [Member] | Six year to ten year Interest Rate [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Interest rate, spread on basis | 2.25% | ||||||||||||||||||||||||
U S Small Business Administration Payroll Protection Program [Member] | Gas Company [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Proceeds from Issuance of Debt | $ 970,900 | ||||||||||||||||||||||||
Regulatory Liabilities | $ 490,000 | ||||||||||||||||||||||||
U S Small Business Administration Payroll Protection Program [Member] | Pike [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Proceeds from Issuance of Debt | $ 137,200 | ||||||||||||||||||||||||
U S Small Business Administration Payroll Protection Program [Member] | Leatherstocking [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Proceeds from Issuance of Debt | $ 65,491 | ||||||||||||||||||||||||
Department of Agriculture [Member] | Term Loan [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt, face amount | $ 1,000,000 | ||||||||||||||||||||||||
Issuance date | Mar. 31, 2021 | ||||||||||||||||||||||||
PPP Loans forgiven | $ 1,173,591 |
Long-term Debt (Schedule of Lon
Long-term Debt (Schedule of Long-term Debt) (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 52,552,864 | $ 50,562,694 |
Less current installments | 6,407,545 | 6,271,068 |
Long-term debt less current installments | 46,145,319 | 44,291,626 |
Note Payable November 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 19,293,736 | 21,978,316 |
Note Payable May 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 8,068,356 | 9,064,012 |
Multiple Disbursement Note November 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 2,719,487 | 3,035,067 |
Multiple Disbursement Note November 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 2,614,859 | 2,887,401 |
Multiple Disbursement Note November 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,775,970 | 1,955,778 |
Multiple Disbursement Note November 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 3,504,771 | 3,687,741 |
Multiple Disbursement Note March 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,204,530 | |
Multiple Disbursement Note November 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 4,665,000 | |
Multiple Disbursement Note November 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,966,823 | |
Multiple Disbursement Note November 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 653,934 | |
Note Payable February 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 386,138 | 431,485 |
Note Payable February 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 4,751,148 | 5,223,833 |
Note Payable February 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 501,566 | 560,752 |
Payroll Protection Program loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,173,591 | |
Vehicle loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 446,546 | $ 564,718 |
Long-term Debt (Schedule of Agg
Long-term Debt (Schedule of Aggregates of Long-term Debt) (Details) | Sep. 30, 2021USD ($) |
Aggregate maturity of debt in fiscal year: | |
2022 | $ 6,407,545 |
2023 | 6,624,807 |
2024 | 6,836,192 |
2025 | 7,081,604 |
2026 | $ 7,379,639 |
Lines of Credit (Details)
Lines of Credit (Details) - USD ($) | Mar. 11, 2019 | Sep. 30, 2021 | Aug. 30, 2020 |
Wayne Bank [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 1,000,000 | ||
Line of credit outstanding | $ 1,300,000 | ||
Line of credit, maximum amount outstanding | $ 1,500,000 | ||
Effective interest rate | 3.25% | ||
Agreement with M&T [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 8,000,000 | ||
Line of credit outstanding | $ 4,700,000 | ||
Line of credit, maximum amount outstanding | $ 8,000,000 | ||
Effective interest rate | 3.10% | ||
Pike Agreement with M&T [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 2,000,000 | ||
Line of credit outstanding | 1,700,000 | ||
Line of credit, maximum amount outstanding | $ 1,956,169 | ||
Interest rate, spread on basis | 2.75% | ||
Debt to tangible net worth ratio that must be maintained | 1.40% | ||
Debt service coverage ratio that must be retained | 3.75% | ||
Cash flow coverage ratio | 1.00% | ||
Effective interest rate | 3.25% |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) | Jul. 02, 2020 | Mar. 27, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2016 |
Class of Stock [Line Items] | |||||||
Net proceeds | $ 4,498,394 | ||||||
Preferred stock shares outstanding | 260,600 | 260,600 | 260,600 | 260,600 | |||
Interest expense | $ 3,433,379 | $ 2,567,064 | |||||
4.8% Series B Cumulative Preferred Stock [Memebr] | |||||||
Class of Stock [Line Items] | |||||||
Percentage of dividend rate on preferred shares | 4.80% | ||||||
Liquidation preference per share | $ 20.75 | $ 20.75 | |||||
Shareholder owning percentage | 10.00% | ||||||
Exercise of conversion rights | 10.00% | ||||||
Series A Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Issuance costs | $ 20,303 | 30,455 | |||||
Dividends paid | $ 97,725 | $ 97,725 | |||||
Interest expense | 390,900 | 334,650 | |||||
Series B Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Issuance costs | 150,000 | ||||||
Dividends paid | $ 61,066 | 61,066 | |||||
Series C Cumulative Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Percentage of dividend rate on preferred shares | 6.00% | 6.00% | |||||
Preferred shares par value | $ 25 | ||||||
Unamortized issuance costs | $ 1,277 | $ 1,524 | $ 1,277 | $ 1,524 | |||
Net proceeds | $ 4,500,000 | ||||||
Liquidation preference per share | $ 25 | $ 25 | $ 25 | $ 25 | |||
Preferred stock shares outstanding | 180,000 | ||||||
Dividends paid | $ 67,500 | $ 67,500 | |||||
Interest expense | $ 270,000 | $ 141,750 | |||||
6% Series A Cumulative Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Percentage of dividend rate on preferred shares | 6.00% | 6.00% | |||||
Liquidation preference per share | $ 25 | $ 25 | |||||
Number of shares acquired | 50,000 | ||||||
Series A cumulative preferred stock | $ 1,250,000 |
Stockholders' Equity and Stoc_3
Stockholders' Equity and Stock-based Compensation (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Class of Stock [Line Items] | |||
Issuance of common stock, shares | 11,030 | 25,487 | |
Value of shares issued under DRIP | $ 51,749 | $ 201,940 | |
Shares issued for services under DRIP | 78,711 | 177,675 | |
Dividends payable | 469,230 | 468,235 | |
Dividends for the year | $ 1,879,591 | $ 1,843,983 | |
CFO [Member] | |||
Class of Stock [Line Items] | |||
Immediate options vested to purchase | 10,000 |
Stockholders' Equity and Stoc_4
Stockholders' Equity and Stock-based Compensation (Schedule of Common Stock Issued) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Class of Stock [Line Items] | ||
Total, shares | 11,030 | 25,487 |
Total | $ 130,460 | $ 379,615 |
Director [Member] | ||
Class of Stock [Line Items] | ||
Total, shares | 3,150 | 12,600 |
Total | $ 40,163 | $ 167,041 |
Leatherstocking Gas Company [Member] | ||
Class of Stock [Line Items] | ||
Total, shares | 600 | |
Total | $ 10,634 | |
Officers [Member] | ||
Class of Stock [Line Items] | ||
Total, shares | 4,500 | |
Total | $ 38,548 | |
Dividend reinvestment program (DRIP) [Member] | ||
Class of Stock [Line Items] | ||
Total, shares | 3,380 | 12,287 |
Total | $ 51,749 | $ 201,940 |
Stockholders' Equity and Stoc_5
Stockholders' Equity and Stock-based Compensation (Schedule of Stock Option Activity) (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Number of Options | ||
Outstanding at September 30, 2020 | 10,000 | |
Granted | 10,000 | 10,000 |
Exercised | ||
Expired or Forfeited | ||
Outstanding at September 30, 2021 | 20,000 | 10,000 |
Weighted-Average Exercise Price | ||
Outstanding at September 30, 2020 | $ 16.50 | |
Granted | 23.50 | 16.50 |
Exercised | ||
Expired or Forfeited | ||
Outstanding at September 30, 2021 | $ 19.75 | $ 16.50 |
Outstanding at September 30, 2021 | 9 years 5 months 12 days | 9 years 11 months 1 day |
Stockholders' Equity and Stoc_6
Stockholders' Equity and Stock-based Compensation (Schedule of Assumptions Fair value of options granted (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Assumptions for Black-Scholes: | ||
Expected term in years | 9 months | 5 years |
Volatility | 29.54% | 22.55% |
Risk-free interest rate | 0.08% | 0.28% |
Dividend yield | 2.66% | 3.52% |
Value of options granted: | ||
Weighted average fair value per option | $ 1.75 | $ 1.95 |
Fair value of options granted | $ 17,500 | $ 19,505 |
Investment in Joint Ventures (N
Investment in Joint Ventures (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Jul. 02, 2020 | Jun. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Combined assets | $ 144,054,747 | $ 136,459,306 | ||
Net income (loss) | 1,524,903 | 3,201,358 | ||
Leatherstocking Gas Company LLC And Leatherstocking Pipeline Company LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | 50.00% | ||
Assets acquired book value | $ 532,000 | |||
Purchase Price | 100,000 | |||
Combined assets | 528,000 | 527,000 | ||
Combined liabilties | 0 | 0 | ||
Net income (loss) | $ (5,000) | $ (104,000) | ||
Leatherstocking Gas Company LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% |
Investment in Joint Ventures (S
Investment in Joint Ventures (Schedule of Investment Activity) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||
Beginning balance in investment in joint ventures | $ 264,640 | $ 2,597,919 |
Cost adjustment | (808) | |
Loss in joint ventures during year | (2,652) | (51,928) |
Ending balance in joint ventures | 261,180 | 264,640 |
Leatherstocking Companies [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Acquisition of previously unowned 50% interest in the Leatherstocking Companies | $ (2,281,351) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carry forwards, expiration | Sep. 30, 2032 | |
Alternate minimum tax | $ 300,000 | |
Estimated tax payments | 69,698 | |
Regulatory liability | 2,969,076 | $ 3,243,054 |
Income taxes | 12,500 | (341,777) |
Foreign [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carry forwards | 4,900,000 | 3,800,000 |
Operating loss carry forwards expired, amount | 3,390,000 | |
State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carry forwards | $ 12,100,000 | $ 7,900,000 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred and Current Income Tax Expense) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Current | $ 17,732 | $ (272,079) |
Deferred | 446,070 | 1,232,417 |
Total | $ 463,802 | $ 960,338 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Reconciliation) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Expected federal tax expense | $ 417,628 | $ 873,956 |
PPP Forgiveness | (246,454) | |
AMT credit refund | (272,079) | |
Preferred dividends | 146,302 | 100,566 |
State tax expense (net of federal) | 145,538 | 291,388 |
Other, net | 788 | (33,493) |
Actual tax expense | $ 463,802 | $ 960,338 |
Federal corporate tax rate | 21.00% | 21.00% |
Income Taxes (Schedule of Inc_2
Income Taxes (Schedule of Income Tax Assets and Liabilities) (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Deferred income tax assets: | ||
NOL carryforwards | $ 2,592,109 | $ 2,116,346 |
Post-retirement benefit obligations | 1,709,186 | 2,592,958 |
Customer Contribution | 1,339,331 | 1,290,631 |
Deferred compensation reserve | 389,864 | 375,720 |
Regulatory reconciliation tax assets | 51,501 | 434,833 |
Total deferred income tax assets | 6,081,991 | 6,810,488 |
Deferred income tax liabilities: | ||
Property, plant and equipment, principally due to differences in depreciation | 10,602,097 | 9,653,332 |
Pension benefit obligations | 1,434,480 | 2,119,400 |
Regulatory reconciliation tax liabilities | 671,802 | 1,120,246 |
Bargain purchase | 665,456 | 665,456 |
Recoverable fuel costs | 508,801 | 428,093 |
Storm costs | 289,130 | 336,618 |
Unbilled revenue | 60,078 | 63,175 |
Total deferred income tax liabilities | 14,231,844 | 14,386,320 |
Net deferred income tax liabilities | $ 8,149,853 | $ 7,575,832 |
Pension and Other Post-retire_3
Pension and Other Post-retirement Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation | $ 1,417,686 | $ 1,366,256 | |
Funded status | 7,200,000 | 9,100,000 | |
Regulatory liabilities | 2,969,076 | 3,243,054 | |
Amounts not included in prepaid pension cost | $ 1,257,326 | 1,045,574 | |
Annual rate increase of health care costs assumed | 6.75% | ||
Annual rate increase of health care costs assumed pre-65 year | 6.75% | ||
Annual rate increase of health care costs assumed post-65 year | 4.40% | ||
Post-retirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | |||
Monthly post-retirement benefit payout maximum | $ 150 | ||
Monthly post-retirement benefit payout minimum, percentage | 40.00% | ||
Funded status | $ 1,312,867 | 1,299,366 | |
Company contributions | 74,650 | 80,293 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 21,386,517 | 19,460,425 | $ 17,540,516 |
Funded status | 5,867,221 | 7,775,503 | |
Regulatory liabilities | 341,000 | 333,000 | |
Expected contribution in 2020 | 511,266 | 1,423,285 | |
Company contributions | 511,266 | 1,423,285 | |
Ratemaking and financial statement purposes [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension expense | $ 941,428 | 933,454 | |
Corning Gas Employee Savings Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum annual contribution per employee, percentage of wages | 50.00% | ||
Company matching contribution, percentage limit of employee pay | 6.00% | ||
Company contributions | $ 114,463 | 105,225 | |
Rabbi Trust [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 2,285,971 | 2,162,421 | |
Stock included in deferred compensation plan | 51,359 | $ 30,700 | |
Increase in pension benefit obligation due to change in Mortality Table assumption | $ 51,430 |
Pension and Other Post-retire_4
Pension and Other Post-retirement Benefit Plans (Schedule of Pension and Post-retirement Plan Benefits Reconciliation) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Change in plan assets: | ||
Funded status | $ (7,200,000) | $ (9,100,000) |
Pension Benefits [Member] | ||
Change in benefit obligations: | ||
Benefit obligation at beginning of year | 27,235,928 | 25,599,774 |
Service cost (excluding expected expenses) | 695,490 | 649,444 |
Interest cost | 963,834 | 985,296 |
Participant contributions | ||
Actuarial gain (loss) | (303,614) | 1,265,309 |
Benefits paid | (1,337,900) | (1,263,895) |
Curtailments | ||
Benefit obligation at end of year | 27,253,738 | 27,235,928 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 19,460,425 | 17,540,516 |
Actual return on plan assets | 2,859,830 | 1,859,129 |
Company contributions | 511,266 | 1,423,285 |
Participant contributions | ||
Benefits paid | (1,445,004) | (1,362,505) |
Fair value of plan assets at end of year | 21,386,517 | 19,460,425 |
Funded status | (5,867,221) | (7,775,503) |
Unrecognized net actuarial loss/(gain) | 3,475,499 | 6,161,807 |
Unrecognized prior service cost | ||
(Accrued) prepaid benefit cost | (2,391,722) | (1,613,696) |
Accrued contribution | ||
Amounts recognized in the consolidated balance sheets consists of: | ||
Accrued benefit liability | (5,867,221) | (7,775,503) |
Accrued pension cost as of beginning of fiscal year | (1,613,696) | (1,710,951) |
Pension (cost) | (1,187,753) | (1,289,292) |
Contributions | 511,266 | 1,423,285 |
Change in receivable contribution | (101,539) | (36,738) |
Net benefits paid | ||
Accrued pension cost as of end of fiscal year | (2,391,722) | (1,613,696) |
Post-retirement Benefits [Member] | ||
Change in benefit obligations: | ||
Benefit obligation at beginning of year | 1,299,366 | 1,334,577 |
Service cost (excluding expected expenses) | 18,957 | 18,533 |
Interest cost | 27,891 | 37,021 |
Participant contributions | 116,848 | 101,339 |
Actuarial gain (loss) | 41,303 | (10,472) |
Benefits paid | (191,498) | (181,632) |
Curtailments | ||
Benefit obligation at end of year | 1,312,867 | 1,299,366 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | ||
Actual return on plan assets | ||
Company contributions | 74,650 | 80,293 |
Participant contributions | 116,848 | 101,339 |
Benefits paid | (191,498) | (181,632) |
Fair value of plan assets at end of year | ||
Funded status | (1,312,867) | (1,299,366) |
Unrecognized net actuarial loss/(gain) | 63,168 | 23,547 |
Unrecognized prior service cost | 106,673 | 121,911 |
(Accrued) prepaid benefit cost | (1,143,026) | (1,153,908) |
Accrued contribution | ||
Amounts recognized in the consolidated balance sheets consists of: | ||
Accrued benefit liability | (1,312,867) | (1,299,366) |
Accrued pension cost as of beginning of fiscal year | (1,153,908) | (1,162,051) |
Pension (cost) | (63,768) | (72,150) |
Contributions | ||
Change in receivable contribution | ||
Net benefits paid | 74,650 | 80,293 |
Accrued pension cost as of end of fiscal year | $ (1,143,026) | $ (1,153,908) |
Pension and Other Post-retire_5
Pension and Other Post-retirement Benefit Plans (Schedule of Fair Value of Plan Assets) (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | $ 21,386,517 | $ 19,460,425 | $ 17,540,516 |
Pension Benefits [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 416,726 | 1,958,521 | |
Pension Benefits [Member] | Government and agency bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 4,120,431 | 2,610,037 | |
Pension Benefits [Member] | Corporate bonds [ Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 3,455,460 | 3,241,935 | |
Pension Benefits [Member] | Fixed index funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 764,720 | ||
Pension Benefits [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 1,545,879 | 1,625,944 | |
Pension Benefits [Member] | Equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 10,845,308 | 9,259,268 | |
Pension Benefits [Member] | Other assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 1,002,713 | ||
Post-retirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | |||
Post-retirement Benefits [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | |||
Post-retirement Benefits [Member] | Government and agency bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | |||
Post-retirement Benefits [Member] | Corporate bonds [ Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | |||
Post-retirement Benefits [Member] | Fixed index funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | |||
Post-retirement Benefits [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | |||
Post-retirement Benefits [Member] | Equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | |||
Post-retirement Benefits [Member] | Other assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year |
Pension and Other Post-retire_6
Pension and Other Post-retirement Benefit Plans (Schedule of Amortization of Unrecognized Net (Gain)/Loss for Retirement Plan) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Benefits [Member] | |||
Amortization of unrecognized net loss for the Retirement Plan for fiscal year ending September 30, 2021: | |||
Projected benefit obligation as of September 30, 2021 | $ 27,253,738 | $ 27,235,928 | $ 25,599,774 |
Plan assets at September 30, 2021 | 21,386,517 | 19,460,425 | 17,540,516 |
Unrecognized loss as of September 30, 2021 | 3,475,499 | 6,161,807 | |
Unrecognized prior service cost | |||
Ten percent of greater of (1) or (2) | 2,725,374 | ||
Unamortized loss subject to amortization - (3) minus (4) | $ 750,125 | ||
Active future service of active plan participants expected to receive benefits | 13 years 2 months 23 days | ||
Minimum amortization of unamortized net loss - (5)/(6) | $ 56,716 | ||
Amortization of loss for 2020-2021 | 699,451 | ||
Post-retirement Benefits [Member] | |||
Amortization of unrecognized net loss for the Retirement Plan for fiscal year ending September 30, 2021: | |||
Projected benefit obligation as of September 30, 2021 | 1,312,867 | 1,299,366 | 1,334,577 |
Plan assets at September 30, 2021 | |||
Unrecognized loss as of September 30, 2021 | 63,168 | 23,547 | |
Unrecognized prior service cost | $ 106,673 | $ 121,911 | |
Amortization period | 14 years 10 months 24 days | ||
Amortization of loss for 2020-2021 | $ 7,159 |
Pension and Other Post-retire_7
Pension and Other Post-retirement Benefit Plans (Schedule of Net Period Benefit Cost (Benefit)) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Pension Benefits [Member] | ||
Components of net period benefit cost | ||
Service cost | $ 794,490 | $ 744,444 |
Interest cost | 963,834 | 985,296 |
Expected return on plan assets | (1,445,657) | (1,300,997) |
Amortization of prior service | ||
Amortization of unrecognized actuarial loss | 976,625 | 897,287 |
Net periodic benefit cost | 1,289,292 | 1,326,030 |
Post-retirement Benefits [Member] | ||
Components of net period benefit cost | ||
Service cost | 18,957 | 18,533 |
Interest cost | 27,891 | 37,021 |
Expected return on plan assets | ||
Amortization of prior service | 15,238 | 13,979 |
Amortization of unrecognized actuarial loss | 1,682 | 2,617 |
Net periodic benefit cost | $ 63,768 | $ 72,150 |
Pension and Other Post-retire_8
Pension and Other Post-retirement Benefit Plans (Schedule of Weighted Average Assumptions) (Details) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Pension Benefits [Member] | ||
Weighted average assumptions used to determine net period cost at September 30: | ||
Discount rate | 3.64% | 3.64% |
Salary increases | 3.50% | 3.50% |
Expected return on assets | 6.50% | 7.50% |
Post-retirement Benefits [Member] | ||
Weighted average assumptions used to determine net period cost at September 30: | ||
Discount rate | 2.53% | 2.21% |
Salary increases | ||
Expected return on assets |
Pension and Other Post-retire_9
Pension and Other Post-retirement Benefit Plans (Schedule of Estimated Plan Benefit Payments) (Details) | Sep. 30, 2021USD ($) |
Estimated pension plan benefit payments in fiscal year; | |
2022 | $ 1,485,220 |
2023 | 1,493,007 |
2024 | 1,529,429 |
2025 | 1,599,886 |
2026 | 1,596,310 |
2027+ | $ 7,684,137 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | |||
Segment Reporting Information [Line Items] | ||||
Total electric utility revenue | $ 8,374,121 | $ 7,000,667 | ||
Total gas utility revenue | 26,861,424 | 25,385,218 | ||
Investment income | 391,019 | 182,111 | ||
Equity investment (loss) | (2,652) | (51,928) | ||
Net income (loss) | 1,524,903 | 3,201,358 | ||
Income tax expense (benefit) | 463,802 | 960,338 | ||
Interest expense | 3,433,379 | 2,567,064 | ||
Depreciation expense | 3,338,769 | 2,621,385 | ||
Amortization expense | 681,553 | 731,191 | ||
Total assets | 144,054,747 | 136,459,306 | ||
Capital expenditures | 10,988,091 | 8,672,162 | ||
Gas Company [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total electric utility revenue | ||||
Total gas utility revenue | 23,728,350 | 23,807,233 | ||
Investment income | 390,952 | 181,978 | ||
Equity investment (loss) | ||||
Net income (loss) | 2,482,074 | 3,198,642 | ||
Income tax expense (benefit) | 551,322 | 1,236,697 | ||
Interest expense | 1,758,821 | 1,284,074 | ||
Depreciation expense | 1,944,330 | 1,880,619 | ||
Amortization expense | 262,598 | 278,408 | ||
Total assets | 98,563,008 | 94,147,736 | ||
Capital expenditures | 7,176,122 | 6,686,081 | ||
Pike [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total electric utility revenue | 8,374,121 | 7,000,667 | ||
Total gas utility revenue | 1,869,235 | 1,446,654 | ||
Investment income | ||||
Equity investment (loss) | ||||
Net income (loss) | 564,361 | 295,258 | ||
Income tax expense (benefit) | 210,772 | 156,769 | ||
Interest expense | 638,890 | 669,002 | ||
Depreciation expense | 956,294 | 658,667 | ||
Amortization expense | 358,765 | 401,882 | ||
Total assets | 32,070,853 | 29,165,796 | ||
Capital expenditures | 3,051,225 | 1,986,081 | ||
Leatherstocking Companies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total electric utility revenue | [1] | [2] | ||
Total gas utility revenue | 1,263,839 | [1] | 131,331 | [2] |
Investment income | [1] | [2] | ||
Equity investment (loss) | [1] | [2] | ||
Net income (loss) | (306,420) | [1] | (124,639) | [2] |
Income tax expense (benefit) | (115,379) | [1] | (54,597) | [2] |
Interest expense | 326,744 | [1] | 89,729 | [2] |
Depreciation expense | 434,485 | [1] | 78,439 | [2] |
Amortization expense | 12,166 | [1] | 3,042 | [2] |
Total assets | 12,646,747 | [1] | 12,326,387 | [2] |
Capital expenditures | 760,744 | [1] | [2] | |
Holding Company [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total electric utility revenue | ||||
Total gas utility revenue | ||||
Investment income | 67 | 133 | ||
Equity investment (loss) | (2,652) | (51,928) | ||
Net income (loss) | (1,215,112) | (167,903) | ||
Income tax expense (benefit) | (182,913) | (378,531) | ||
Interest expense | 708,924 | 524,259 | ||
Depreciation expense | 3,660 | 3,660 | ||
Amortization expense | 48,024 | 47,859 | ||
Total assets | 774,139 | 819,387 | ||
Capital expenditures | ||||
[1] | acquired July 1, 2020 | |||
[2] | from July 1, 2020 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Sep. 30, 2021USD ($)Dekatherms | Sep. 30, 2020USD ($)Dekatherms |
Commitments and Contingencies Disclosure [Abstract] | ||
Storage Capacity Maintained | 736,000 | |
Energy in storage | 586,655 | 573,609 |
Gas stored underground | $ | $ 1,366,341 | $ 995,341 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Related Party Transactions [Abstract] | ||
Related party receivables | $ 9,032 |
Business Acquisition (Narrative
Business Acquisition (Narrative) (Details) - USD ($) $ in Thousands | Jul. 02, 2020 | Oct. 12, 2021 | Jun. 30, 2020 |
6% Series A Cumulative Preferred Stock [Member] | |||
Business Acquisition [Line Items] | |||
Number of shares acquired | 50,000 | ||
Leatherstocking Gas Company LLC And Leatherstocking Pipeline Company LLC [Member] | |||
Business Acquisition [Line Items] | |||
Ownership percentage | 50.00% | 50.00% | |
Assets acquired book value | $ 532 | ||
Leatherstocking Gas Company LLC And Leatherstocking Pipeline Company LLC [Member] | 6% Series A Cumulative Preferred Stock [Member] | |||
Business Acquisition [Line Items] | |||
Number of shares acquired | 50,000 | ||
Leatherstocking Gas Company LLC [Member] | |||
Business Acquisition [Line Items] | |||
Ownership percentage | 50.00% | ||
Mirabito Regulated Industries, LLC [Member] | Subsequent Event [Member] | |||
Business Acquisition [Line Items] | |||
Ownership percentage | 50.00% |
Business Acquisition (Schedule
Business Acquisition (Schedule of fair value of assets acquired and liabilities assumed) (Details) - USD ($) | Jul. 02, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Assets: | |||
Goodwill | $ 918,121 | $ 918,121 | |
Leatherstocking Gas Company LLC [Member] | |||
Consideration paid: | |||
Cash | $ 1,950,000 | ||
Series A Cumulative Preferred Stock | 1,250,000 | ||
Gross consideration | 3,200,000 | ||
Fair value of previously held interest | 2,281,351 | ||
Total | 5,481,351 | ||
Assets: | |||
Goodwill | 918,121 | ||
Utility property, plant and equipment | 11,060,742 | ||
Deferred debits | 49,732 | ||
Cash | 56,919 | ||
Other current assets | 367,127 | ||
Total assets acquired | 12,452,641 | ||
Liabilities: | |||
Long term debt | 5,985,631 | ||
Short term notes | 894,644 | ||
Current liabilities | 91,015 | ||
Total liabilities assumed | 6,971,290 | ||
Total | $ 5,481,351 |
Business Acquisition (Schedul_2
Business Acquisition (Schedule of Pro forma unaudited condensed consolidated financial information) (Details) | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Business Combinations [Abstract] | |
Total Revenue | $ 33,516,435 |
Net Income | $ 3,161,114 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Dec. 08, 2021 | Oct. 12, 2021 | Oct. 05, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 17, 2021 | Dec. 12, 2021 |
Subsequent Event [Line Items] | |||||||
Preferred shares issued | 260,600 | 260,600 | |||||
Purchase price | $ 4,498,394 | ||||||
Equity investment (loss) | (2,652) | $ (51,928) | |||||
Two terms loans [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Debt, face amount | $ 5,348,850 | ||||||
M&T Bank [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Line of credit, maximum borrowing capacity | $ 8,000,000 | ||||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Gas rate increased for one year | $ 2,900,000 | ||||||
Subsequent Event [Member] | Two terms loans [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate, spread on basis | 4.75% | ||||||
Subsequent Event [Member] | Mirabito Regulated Industries, LLC [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of joint venture | 50.00% | ||||||
Exercise option price | $ 100,000 | ||||||
Equity investment (loss) | $ 158,000 | ||||||
Subsequent Event [Member] | M&T Bank [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Line of credit, maximum borrowing capacity | $ 8,500,000 | ||||||
Series D Cumulative Preferred Stock [Memebr] | Subsequent Event [Member] | ACP Crotona Corp [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Preferred shares issued | 5,000 | ||||||
Preferred shares par value | $ 1,000 | ||||||
Purchase price | $ 5,000,000 | ||||||
Percentage of dividend rate on preferred shares | 1.50% |