Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 01, 2014 | Mar. 31, 2014 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Corning Natural Gas Holding Corp | ||
Entity Central Index Key | 1582244 | ||
Document Type | 10-K | ||
Document Period End Date | 30-Sep-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -21 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $27,093,296 | ||
Entity Common Stock, Shares Outstanding | 2,434,454 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Plant: | ||
Utility property, plant and equipment | $68,687,509 | $60,261,259 |
Less: accumulated depreciation | -19,578,820 | -18,013,229 |
Total plant utility and non-utility, net | 49,108,689 | 42,248,030 |
Investments: | ||
Marketable securities available-for-sale at fair value | 2,308,138 | 2,242,540 |
Investment in joint ventures | 1,280,757 | 587,678 |
Total investments | 3,588,895 | 2,830,218 |
Current assets: | ||
Cash and cash equivalents | 108,086 | 14,244 |
Customer accounts receivable, (net of allowance for uncollectible accounts of $42,540 and $297,846), respectively | 1,991,809 | 1,727,562 |
Related party receivables | 242,792 | 464,514 |
Gas stored underground, at average cost | 2,291,665 | 2,254,463 |
Materials and supplies inventory | 937,459 | 1,205,018 |
Prepaid expenses | 982,198 | 848,701 |
Total current assets | 6,554,009 | 6,514,502 |
Regulatory assets: | ||
Unrecovered gas costs | 110,372 | 387,288 |
Deferred regulatory costs | 2,653,778 | 2,537,893 |
Debt issuance costs (net of accumulated amortization of $595,637 and $536,117), respectively | 313,292 | 270,261 |
Other | 193,026 | 230,408 |
Total regulatory and other assets | 3,270,468 | 3,425,850 |
Total assets | 62,522,061 | 55,018,600 |
Liabilities and capitalization: | ||
Long-term debt, less current installments | 14,571,746 | 13,460,781 |
Current liabilities: | ||
Current portion of long-term debt | 2,697,140 | 1,827,322 |
Borrowings under lines-of-credit | 4,614,541 | 4,407,305 |
Accounts payable | 1,903,594 | 2,087,927 |
Accrued expenses | 534,059 | 507,952 |
Customer deposits and accrued interest | 976,734 | 952,237 |
Dividends declared | 327,819 | 282,595 |
Deferred income taxes | 215,757 | 427,245 |
Total current liabilities | 11,269,644 | 10,492,583 |
Other liabilities: | ||
Deferred income taxes | 1,223,875 | 150,859 |
Deferred compensation | 1,666,415 | 1,545,747 |
Deferred pension costs & post-retirement benefits | 6,091,540 | 5,610,221 |
Other | 1,113,655 | 366,478 |
Total other liabilities | 10,095,485 | 7,673,305 |
Commitments and contingencies (see Note 13 and 14) | ||
Common stockholders' equity: | ||
Common stock (common stock $.01 par value per share. Authorized 3,500,000 shares; issued and outstanding 2,430,184 shares at September 30, 2014 and 2,262,654 at September 30, 2013) | 24,302 | 22,626 |
Additional paid-in capital | 26,037,603 | 23,309,764 |
Retained earnings | 2,921,478 | 2,098,044 |
Accumulated other comprehensive loss | -2,398,197 | -2,038,503 |
Total common stockholders' equity | 26,585,186 | 23,391,931 |
Total liabilities and capitalization | $62,522,061 | $55,018,600 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Current assets: | ||
Allowance for uncollectible accounts | $42,540 | $297,846 |
Net Regulatory Assets [Abstract] | ||
Accumulated amortization of debt issuance cost | $595,637 | $536,117 |
Common stockholders' equity | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized shares | 3,500,000 | 3,500,000 |
Common stock, shares issued | 2,430,184 | 2,262,654 |
Common stock, shares outstanding | 2,430,184 | 2,262,654 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Other Comprehensive Income (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Utility operating revenues | $25,464,582 | $23,473,785 |
Natural gas purchased | 9,749,281 | 8,578,363 |
Gross margin | 15,715,301 | 14,895,422 |
Cost and expense | ||
Operating and maintenance expense | 7,564,842 | 6,891,937 |
Taxes other than income taxes | 1,944,352 | 1,894,008 |
Depreciation | 1,538,377 | 2,204,869 |
Other deductions, net | 479,449 | 447,203 |
Total costs and expenses | 11,527,020 | 11,438,017 |
Operating income | 4,188,281 | 3,457,405 |
Other income and (expense) | ||
Interest expense | -841,177 | -935,273 |
Other expense | -27,340 | -29,944 |
Other income | 51,750 | 38,768 |
Investment income | 65,361 | 123,725 |
(Loss) from joint ventures | -106,921 | -42,515 |
Rental income | 48,552 | 48,552 |
Net income from operations, before income tax | 3,378,506 | 2,660,718 |
Income tax benefit (expense), current | -70,000 | 50,557 |
Income tax (expense), deferred | -1,240,705 | -925,901 |
Total income tax expense | -1,310,705 | -875,344 |
Net income | 2,067,801 | 1,785,374 |
Other comprehensive income (loss) | ||
Pension adjustment, net of tax | -450,465 | 1,223,987 |
Net unrealized gain (loss) on securities available for sale, net of tax | 90,771 | -16,015 |
Total other comprehensive income (loss) | -359,694 | 1,207,972 |
Total comprehensive income | $1,708,107 | $2,993,346 |
Weighted average earnings per share- | ||
basic: | $0.88 | $0.80 |
diluted: | $0.88 | $0.80 |
Average shares outstanding - basic | 2,342,034 | 2,239,893 |
Average shares outstanding - diluted | 2,346,786 | 2,242,799 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] |
Balances at Sep. 30, 2012 (As reported [Member]) | $11,101,355 | $11,698,763 | |||
Balances (Stock exchange [Member]) | -11,079,152 | 11,079,152 | |||
Balances at Sep. 30, 2012 | 20,975,561 | 22,203 | 22,777,915 | 1,421,918 | -3,246,475 |
Balances, shares at Sep. 30, 2012 | 2,220,271 | ||||
Issuance of common stock | 532,272 | 423 | 531,849 | ||
Issuance of common stock, shares | 42,383 | ||||
Dividends declared | -1,109,248 | -1,109,248 | |||
Comprehensive income: | |||||
Change in unrealized gain on securities available for sale, net of income taxes | -16,015 | -16,015 | |||
Minimum pension liability, net of income taxes | 1,223,987 | 1,223,987 | |||
Net income | 1,785,374 | 1,785,374 | |||
Total comprehensive income | 2,993,346 | ||||
Balances at Sep. 30, 2013 | 23,391,931 | 22,626 | 23,309,764 | 2,098,044 | -2,038,503 |
Balances, shares at Sep. 30, 2013 | 2,262,654 | 2,262,654 | |||
Issuance of common stock | 2,729,515 | 1,676 | 2,727,839 | ||
Issuance of common stock, shares | 167,530 | ||||
Dividends declared | -1,244,367 | -1,244,367 | |||
Comprehensive income: | |||||
Change in unrealized gain on securities available for sale, net of income taxes | 90,771 | 90,771 | |||
Minimum pension liability, net of income taxes | -450,465 | -450,465 | |||
Net income | 2,067,801 | 2,067,801 | |||
Total comprehensive income | 1,708,107 | ||||
Balances at Sep. 30, 2014 | $26,585,186 | $24,302 | $26,037,603 | $2,921,478 | ($2,398,197) |
Balances, shares at Sep. 30, 2014 | 2,430,184 | 2,430,184 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Common stock, par value | $0.01 | $0.01 | $0.01 |
As reported [Member] | |||
Common stock, par value | $5 | ||
Accumulated Other Comprehensive Income [Member] | |||
Income taxes for change in unrealized gain on securities available for sale | $49,956 | $6,863 | |
Income taxes for minimum pension liability | $332,859 | $850,568 |
Statement_of_Accumulated_Other
Statement of Accumulated Other Comprehensive (Loss) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Statement Of Accumulated Other Comprehensive (Loss) [Abstract] | ||
Pension liability adjustment, net of tax | ($2,525,875) | ($2,075,410) |
Net unrealized gain/(loss) on securities available for sale, net of tax | 127,678 | 36,907 |
Accumulated other comprehensive loss | ($2,398,197) | ($2,038,503) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | ||
Net income | $2,067,801 | $1,785,374 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 1,538,377 | 2,204,869 |
Amortization of debt issuance cost | 122,952 | 46,566 |
Non-cash pension expenses | 929,321 | 1,211,829 |
Regulatory asset amortizations | 274,135 | 279,144 |
Stock issued for services | 138,094 | 206,276 |
(Gain) on sale of marketable securities | -11,812 | -65,176 |
Deferred income taxes | 1,240,705 | 925,901 |
Bad debt expense | 233,729 | 229,233 |
Loss on joint ventures | 106,921 | 42,515 |
(Increase) decrease in: | ||
Accounts receivable | -497,976 | -404,348 |
Gas stored underground | -37,202 | -143,199 |
Materials and supplies inventories | 267,559 | -31,914 |
Prepaid expenses | -133,497 | -121,957 |
Unrecovered gas costs | 276,916 | 1,157,947 |
Deferred regulatory costs | -390,020 | -1,271,247 |
Other | 37,382 | 28,846 |
Increase (decrease) in: | ||
Accounts payable | -184,333 | 586,734 |
Accrued expenses | 26,107 | -364,750 |
Customer deposits and accrued interest | 24,497 | -80,502 |
Deferred compensation | 120,668 | 46,483 |
Deferred pension costs & post-retirement benefits | -1,312,285 | -1,285,865 |
Other liabilities and deferred credits | 744,148 | -48,812 |
Net cash provided by operating activities | 5,582,187 | 4,933,947 |
Cash flows from investing activities: | ||
Purchase of securities available-for-sale | -422,721 | -1,187,092 |
Proceeds from sales of securities available-for-sale | 497,408 | 1,250,761 |
Amount received from (paid to) related parties | 221,722 | -390,678 |
Investment in joint ventures | -800,000 | -281,000 |
Capital expenditures | -8,399,036 | -6,142,242 |
Net cash (used in) investing activities | -8,902,627 | -6,750,251 |
Cash flows from financing activities: | ||
Net proceeds under lines-of-credit | 207,236 | 2,210,310 |
Debt issuance costs | -165,983 | -67,616 |
Cash received from sale of stock | 2,467,812 | 212,510 |
Dividends paid | -1,075,566 | -995,762 |
Proceeds under long-term debt | 6,086,300 | 8,885,902 |
Repayment of short-term debt | -750,000 | |
Repayment of long-term debt | -4,105,517 | -7,734,879 |
Net cash provided by financing activities | 3,414,282 | 1,760,465 |
Net increase (decrease) in cash | 93,842 | -55,839 |
Cash and cash equivalents at beginning of period | 14,244 | 70,083 |
Cash and cash equivalents at end of period | 108,086 | 14,244 |
Cash paid during the period for: | ||
Interest | 841,404 | 933,258 |
Income Taxes | 290,653 | 179,984 |
Non-cash financing activities: | ||
Dividends paid with shares | $123,610 | $113,486 |
Number of shares issued for dividends | 7,219 | 7,433 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Summary of Significant 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 is gas distribution through Corning Natural Gas Corporation (Corning Gas, Gas Company or the Company), our principal subsidiary, who provides gas on a commodity and transportation basis to its customers in the Southern Tier of New York State. The Holding 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. The Holding Company's regulated operations meet the criteria and accordingly, follow the accounting and reporting of FASB ASC 980 “Regulated Operations”. The Holding Company's consolidated financial statements contain the use of estimates and assumptions for reporting certain assets, liabilities, revenue and expenses and actual results could differ from the estimates. The more significant accounting policies of the Holding Company are summarized below. | |||||||||||
(a) Principles of Consolidation and Presentation | |||||||||||
In order to reorganize the regulated and unregulated businesses of the Company, Corning Natural Gas Holding Corporation (the “Holding Company”), a wholly-owned subsidiary of the Company at September 30, 2013, was incorporated under the laws of the State of New York on July 19, 2013. The Holding Company was formed to serve as the parent holding company of the Company, Appliance Corp and, directly or indirectly, the interests in the Leatherstocking Joint Venture Companies. The NYPSC approved the formation of the Holding Company and the reorganization of the Gas Company into a holding company structure on May 17, 2013. The reorganization into the holding company structure required approval of holders of at least 66 2/3rds of the Gas Company's common stock and the exchange of shares of common stock of the Gas Company for common stock of the Holding Company. On August 1, 2013, the Holding Company filed a Registration Statement/Proxy Statement on Form S-4 (the “Registration Statement”) with the U.S. Securities and Exchange Commission (“SEC”) to register the securities to be issued by the Holding Company in connection with the exchange and to file a proxy statement for a special meeting of the Gas Company's shareholders regarding the proposal to create the holding company structure and the exchange of shares of the Gas Company's common stock on a one-for-one basis for shares of the Holding Company's common stock. The Registration Statement was effective September 30, 2013. In a special shareholder meeting on November 6, 2013, the proposal was approved by more than two-thirds of shareholders of the Gas Company. The effective date of reorganization was November 12, 2013. Pursuant to the Agreement and Plan of Share Exchange, dated September 12, 2013, between the Holding Company and Corning Gas (the “Exchange Agreement”), and the Certificate of Exchange, on the Effective Date, each issued and outstanding share of Corning Gas' common stock, par value $5.00 per share, was converted into one share of the Holding Company's common stock, par value $0.01 per share. The effect of this share exchange has been reflected retroactively in all periods presented. This resulted in a reclassification between Common Stock and Additional Paid in Capital of $11,290,644 as of September 30, 2013. | |||||||||||
The consolidated financial statements include the Holding Company and its wholly owned subsidiaries, Corning Gas and Corning Natural Gas Appliance Corporation (Appliance Corp.). All intercompany accounts and balances have been eliminated. | |||||||||||
It is the Holding Company's policy to reclassify amounts in the prior year financial statements to conform to the current year presentation. | |||||||||||
(b) Property, Plant and Equipment | |||||||||||
Property, plant and equipment are stated at the historical cost of construction. Those 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 as determined by the current rate plan based on the latest depreciation study. The depreciation rate used for utility plant, expressed as an annual percentage of depreciable property was 2.2% in 2014 and 3.7% in 2013. The NYPSC is allowing the Company recovery in revenues to offset our costs of building certain projects. At the time utility properties are retired, the original cost plus costs of removal less any salvage are charged to accumulated depreciation. | |||||||||||
(d) Accounting for Impairment | |||||||||||
The Financial Accounting Standards Board (FASB) ASC 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 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 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 the years ended September 30, 2014 and 2013. | |||||||||||
(e) Marketable Securities | |||||||||||
Marketable securities, which are intended to fund the Company's deferred compensation plan obligations, are classified as available for sale. Such securities are reported at fair value based on quoted market prices, with unrealized gains and losses, net of the related income tax effect, excluded from income, and reported as a component of accumulated other comprehensive income in stockholders' equity until realized. 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 2014 and 2013, the Company sold equity securities for realized gains (losses) included in earnings of $11,812 and $65,276, 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 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”. | |||||||||||
Fair value of assets and liabilities measured on a recurring basis at September 30, 2014 and 2013 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 | ||||||||
30-Sep-14 | |||||||||||
Available-for-sale securities | $2,308,138 | $2,308,138 | $- | $- | |||||||
30-Sep-13 | |||||||||||
Available-for-sale securities | $2,242,540 | $2,242,540 | $- | $- | |||||||
Financial assets and liabilities valued using level 1 inputs are based on unadjusted quoted market prices within active markets. | |||||||||||
(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 regarding customer disconnects. On August 2, 2012, the Company received notice that a significant customer filed for protection under Chapter 11 of the United States Bankruptcy Code. That customer received funding from its principal lender to continue to operate and pay bills going forward. As of September 30, 2013, the Company had reserved 100% of the $252,456 outstanding at the time of the bankruptcy filing which is consistent with the Company's accounting policies. During the year ended September 30, 2014 the amount was written off. | |||||||||||
Related party receivables are expenditures paid on behalf of the Holding Company's joint venture investments. We expect repayment on these amounts during the year ended September 30, 2015. | |||||||||||
(i) Gas Stored Underground | |||||||||||
Gas stored underground is carried at an average unit cost method as prescribed by the NYPSC. | |||||||||||
(j) Materials and Supplies Inventories | |||||||||||
Materials and supplies inventories are stated at the lower of cost or market, cost being determined on an average unit price basis. | |||||||||||
(k) Debt Issuance Costs | |||||||||||
Costs associated with the issuance of debt by the Company are deferred and amortized over the lives of the related debt. | |||||||||||
(l) Regulatory Matters | |||||||||||
Certain costs are deferred and recognized as expenses when they are reflected in rates and recovered from customers as permitted by FASB ASC 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. | |||||||||||
As a regulated utility, the Company deferred certain costs for future recovery. In a purely competitive environment, such costs might have been currently expensed. Accordingly, if the Company's rate setting were changed from a cost-of-service approach and the Company were no longer allowed to defer these costs under FASB ASC 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 980 is appropriate. | |||||||||||
(m) Revenue and Natural Gas Purchased | |||||||||||
The 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 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 Company has not done. The 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 a 30 year average. As a result, the effect on revenue fluctuations of weather related gas sales is somewhat moderated. | |||||||||||
In addition to weather normalization, starting in September 2009, the Company 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 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 the next calendar year. | |||||||||||
Gas purchases are recorded on readings of suppliers' meters as of the end of the month. The Company's rate tariffs include a Gas Adjustment Clause (GAC) 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 PSC has provided for an annual reconciliation of recoverable GAC costs with applicable revenue billed. Any excess or deficiency in GAC revenue billed is deferred and the balance at the reconciliation date is either refunded to or recovered from customers over a subsequent 12-month period. | |||||||||||
(n) Federal Income Tax | |||||||||||
The Holding 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. | |||||||||||
(o) Dividends | |||||||||||
A dividend of $.125 a share was paid on October 15, 2013 to shareholders of record on September 30, 2013 and on January 15, 2014 to shareholders of record on December 3, 2013. At its regular meeting on February 20, 2014, the board of directors approved an increase in the quarterly dividend to $.135 a share. This dividend was paid on April 15, 2014 to shareholders of record on March 31, 2014 and on July 15, 2014 for shareholders of record on June 30, 2104. For the quarter ended September 30, 2014, $327,819 has been accrued for dividends paid on October 15, 2014 to shareholders of record on September 30, 2014. | |||||||||||
(p) Revenue Taxes | |||||||||||
The Company collects state revenue taxes on residential delivery rates. The amount included in Utility Operating Revenue and Taxes other than Federal Income Taxes was $168,900 and $153,346 in 2014 and 2013, respectively. | |||||||||||
(q) Stock Based Compensation | |||||||||||
The Holding Company accounts for stock based awards in accordance with FASB ASC 718. The Holding Company awards 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 25% less than the closing price of the stock on the day the stock was awarded. Each director is awarded 375 shares for each quarter served. Six directors received a total of 13,500 shares during fiscal 2013 and 9,000 shares during fiscal 2014. On November 13, 2014, shares were issued for the quarter ended September 30, 2014 with the new director, Robert Johnston receiving 317 shares (accrued for his service during the quarter). | |||||||||||
At its regularly scheduled meeting on December 11, 2012, the Compensation Committee of the Board of Directors of the Company made restricted stock awards of 600 shares each to the five officers of the Company in lieu of salary increases. Each restricted stock award vested 300 shares immediately and 300 shares on December 12, 2013 if the officer were still employed by the Company or one of its subsidiaries or affiliates on that date. Each award is subject to the terms and conditions of a restricted stock award agreement and the Holding Company's Amended and Restated 2007 Stock Plan. In addition, the Board of Directors authorized the sale on December 12, 2012, of 600 shares of the Holding Company's common stock to Carl T. Hayden in compensation for his past service as a director of the Holding Company's joint venture affiliate, Leatherstocking Gas Company, LLC and 75 shares each quarter thereafter until Leatherstocking Gas Company started serving customers at which point quarterly compensation increased to 112 shares for the quarter ended December 31, 2013. Mr. Hayden has received a total of 411 shares for his service. These shares are sold to Leatherstocking Gas Company from time to time at the fair market value determined as the closing price of the Holding Company's common stock on the 20th business day after quarter end. | |||||||||||
(r) Earnings Per Share | |||||||||||
Basic earnings per share are computed by dividing income available for common 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. The only potentially dilutive securities the Holding Company has outstanding are stock options. The diluted weighted average shares outstanding shown on the Consolidated Statements of Income reflects the potential dilution as a result of these stock options as determined using the Treasury Stock Method. Stock options that are antidilutive are excluded from the calculation of diluted earnings per common share. | |||||||||||
(s) 311 Transportation Agreement /Compressor Station | |||||||||||
On January 11, 2010, the Company entered into a contract (311 Transportation Agreement) with a local gas producer that provided for the building of a compressor station as well as the transfer of a 6” pipeline owned by the gas producer to the Company for nominal consideration. The contract also sets forth the terms, rates and condition of the transport of the local producer gas to the interstate pipeline system. On May 21, 2010, the 311 Transportation Agreement was revised to reflect a change in the projected gas delivery schedule and delivery volumes. The previously agreed to transportation rates did not change. The contract's maximum daily delivery quantity remained the same. The schedule for attaining the maximum daily delivery quantity was altered to accommodate the project's construction schedule. The Company bought the $11 million compressor station and $2.1 million pipeline from the local producer for two dollars. The local producer has the right to repurchase these facilities for two dollars in ten years. This transaction became effective on May 12, 2011, when the station began operations. Although the Company has $13.1 million in plant available for use, only two dollars was recognized in accordance with the Uniform System of Accounts (313.2) which states that in the case of gas plant contributed to the utility, gas plant accounts shall be charged only with such expenses, if any, incurred by the utility. | |||||||||||
(t) Collective Bargaining Agreement | |||||||||||
The Company had 58 employees as of September 30, 2014, and 56 as of September 30, 2013. Of this total, nearly half are union labor working under an agreement effective until April 2, 2015. | |||||||||||
(u) Leatherstocking Companies | |||||||||||
The Holding Company has a 50% investment in Leatherstocking Gas Company, LLC (Leatherstocking Gas) and Leatherstocking Pipeline Company, LLC (Leatherstocking Pipeline). The investment and equity in both companies (collectively, “Joint Ventures”) has been recognized in the consolidated financial statements. The Holding Company has accounted for its equity investment using the equity method of accounting based on the guidelines established in FASB ASC 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 Joint Ventures which is recognized through earnings. | |||||||||||
(v) Settlement of Lawsuits | |||||||||||
On August 30, 2012, counsel to Gas Natural, Inc. and Richard M. Osborne sent a letter to counsel representing the Company offering to settle and release, all claims related to Gas Natural Inc.'s previous offers to purchase the Company and other activities, including the Company's 2010 rights offering. On December 11, 2012, at its regularly scheduled meeting, the Board of Directors approved settling the claims for $200,000 in exchange for general releases and certain other consideration. On December 13, 2012, the Company was notified by counsel for Gas Natural, Inc. that Gas Natural, Inc.'s Board of Directors, Richard Osborne and the Osborne | |||||||||||
Trust had approved the settlement. The after tax expense that resulted from this agreement was $126,000 and was shown in other deductions, net for year ended September 30, 2013, on the Company's Consolidated Statement of Income and Comprehensive Income. The Company believes its actions in connection with the offers, the rights offering and other activities were in the best interest of the Company and its shareholders. | |||||||||||
(w) New Accounting Pronouncements Not Yet Adopted | |||||||||||
In May 2014, the FASB issued new accounting guidance on revenue from contracts with customers. The new guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods and services to customers. The updated guidance will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either a retrospective or cumulative effect transition method. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. We have not yet selected a transition method and we are currently evaluating the effect the updated standard will have on our consolidated financial statements and related disclosures. |
Major_Customers
Major Customers | 12 Months Ended |
Sep. 30, 2014 | |
Major Customers[Abstract] | |
Major Customers | (2) Major Customers |
The Gas Company has three major customers to which the Gas Company delivers gas: Corning Incorporated, New York State Electric & Gas (NYSEG) and Bath Electric Gas & Water Systems (BEGWS). 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. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||
Sep. 30, 2014 | |||
Property, Plant and Equipment [Abstract] | |||
Property, Plant and Equipment | (3) Property, Plant and Equipment | ||
The following table summarizes fixed asset included in utility plant on the Holding Company's Consolidated Balance Sheet at September 30, 2014 and 2013: | |||
2014 | 2013 | ||
Utility | 19,727,468 | 17,774,138 | |
Pipeline | 38,013,151 | 32,568,644 | |
Structures | 4,979,761 | 4,923,370 | |
Land and Land Rights | 661,864 | 648,326 | |
All Other and Corporate | 5,305,265 | 4,346,781 | |
68,687,509 | 60,261,259 | ||
Useful life for the above assets range from 35 to 52 years for utility plant, 66 years for pipeline, from 45 to 47 years for structures, 65 years for land rights and 8 to 25 years for all other and corporate fixed assets. |
Marketable_Securities
Marketable Securities | 12 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Marketable Securities [Abstract] | ||||||||||||||||||
Marketable Securities | (4) Marketable Securities | |||||||||||||||||
A summary of the marketable securities at September 30, 2014 and 2013 is as follows: | ||||||||||||||||||
Cost Basis | Unrealized Gain | Unrealized Loss | Fair Value | |||||||||||||||
2014 | ||||||||||||||||||
Cash and equivalents | $ | 59,096 | - | - | $ | 59,096 | ||||||||||||
MetLife stock value | 51,185 | - | - | 51,185 | ||||||||||||||
Government and agency bonds | 301,673 | - | 4,029 | 297,644 | ||||||||||||||
Corporate bonds | 303,428 | - | 5,050 | 298,378 | ||||||||||||||
Mutual funds | 56,515 | - | 449 | 56,066 | ||||||||||||||
Equity securities | 1,342,789 | 202,980 | - | 1,545,769 | ||||||||||||||
Total securities | $ | 2,114,686 | $ | 202,980 | $ | 9,528 | $ | 2,308,138 | ||||||||||
2013 | ||||||||||||||||||
Cash and equivalents | $ | 84,675 | - | - | $ | 84,675 | ||||||||||||
MetLife stock value | 51,185 | - | - | 51,185 | ||||||||||||||
Government and agency bonds | 301,716 | - | 7,935 | 293,781 | ||||||||||||||
Corporate bonds | 242,471 | - | 6,337 | 236,134 | ||||||||||||||
Mutual funds | 56,310 | 3,764 | - | 60,074 | ||||||||||||||
Equity securities | 1,453,457 | 63,234 | - | 1,516,691 | ||||||||||||||
Total securities | $ | 2,189,814 | $ | 66,998 | $ | 14,272 | $ | 2,242,540 |
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||
Sep. 30, 2014 | |||
Regulatory Matters [Abstract] | |||
Regulatory Matters | (5) Regulatory Matters | ||
Below is a summary of the Gas Company's regulatory assets as of September 30, 2014 and 2013: | |||
2014 | 2013 | ||
Deferred regulatory costs | 2,653,778 | 2,537,893 | |
Deferred unrecovered gas costs | 110,372 | 387,288 | |
Total regulatory assets | 2,764,150 | 2,925,181 | |
Unrecovered gas costs. These 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. | |||
The Gas Company expects that regulatory assets other than deferred unrecovered gas costs will be fully recoverable from customers by the end of its next rate case expected during the year ended September 30, 2018. The following table summarizes regulatory costs at September 30, 2014 and 2013: | |||
2014 | 2013 | ||
Deferred rate case costs | 971,364 | 1,423,886 | |
Deferred rate case reconciliations | 1,682,414 | 1,114,007 | |
Total | 2,653,778 | 2,537,893 | |
Deferred rate case costs are costs that were incurred in prior rate cases that are amortized over a period determined by the NYPSC in the current rate case and are recoverable over that period. Deferred rate case reconciliations result from target reconciliations set up in the current rate case and recovery will be determined by the NYPSC either through Delivery Rate Adjustment or the next rate case. | |||
Although the Company expects to recover the cost of its regulatory assets, it does not earn a return on them. |
Longterm_Debt
Long-term Debt | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Long-term Debt [Abstract] | ||||||||
Long-term Debt | (6) Long-term Debt | |||||||
Long-term debt, including the current portion, was as follows at September 30, 2014 and 2013: | ||||||||
2014 | 2013 | |||||||
Unsecured senior note - 7.9%, due serially with annual payments of $355,000 beginning on September 1, 2006, paid in full October 2013 | $- | $1,860,000 | ||||||
Note payable - variable rate with 4.5% floor with monthly | ||||||||
installments through May 2015 | 618,168 | 720,116 | ||||||
Note Payable - 5.79% with monthly installments through | ||||||||
Aug-18 | 593,857 | 727,847 | ||||||
Note Payable - variable rate with 4.25% floor, monthly | ||||||||
installments through November 2016 | 1,498,988 | 1,676,794 | ||||||
Note Payable - variable rate with 3.75% floor, monthly | ||||||||
installments through November 2017 | 2,067,499 | 2,279,408 | ||||||
Note Payable - 4.46% with monthly installments through | ||||||||
July 2017, then refinanced at new rate | 206,934 | 228,324 | ||||||
Note Payable - 4.46% with monthly installments through | ||||||||
July 2017, then refinanced at new rate | 206,931 | 228,324 | ||||||
Note Payable - 4.2% with monthly installments through | ||||||||
Nov-18 | 3,827,582 | 2,646,690 | ||||||
Note Payable - 4.51% with monthly installments through | ||||||||
Sep-18 | 2,406,486 | 2,955,246 | ||||||
Note Payable - 4.18% with monthly installments through | ||||||||
Nov-18 | 2,170,363 | 1,759,364 | ||||||
Note Payable - 4.39% with monthly installments | ||||||||
through November 2019 | 2,852,549 | - | ||||||
Note Payable - 4.49% with monthly installments | ||||||||
through July 2019 | 602,899 | - | ||||||
M&T Bank - vehicle loans bearing interest at rates ranging | ||||||||
from 4.37% to 5% | 216,630 | 205,990 | ||||||
Total long-term debt | $17,268,886 | $15,288,103 | ||||||
Less current installments | 2,697,140 | 1,827,322 | ||||||
Long-term debt less current installments | $14,571,746 | $13,460,781 | ||||||
The aggregate maturities of long-term debt for each of the five years subsequent to September 30, 2014 are as follows: | ||||||||
2015 | $2,697,140 | |||||||
2016 | $2,828,572 | |||||||
2017 | $2,921,196 | |||||||
2018 | $2,979,871 | |||||||
2019 | $1,272,879 | |||||||
2020 + | $4,569,228 | |||||||
On May 7, 2008, the Gas Company entered into a Credit Agreement with Manufacturers and Traders Trust Company (“M&T Bank”) to provide for a $6.0 million loan for the purpose of retiring a $3.1 million first mortgage and an unsecured senior note in the amount of $1.5 million. The remaining proceeds were used to fund construction projects related to furnishing natural gas within the Gas Company's service area. This loan was converted to a long term loan on October 16, 2008, with an interest rate of 5.96%. On March 4, 2010, the $6 million loan agreement with M&T Bank was amended with the principal change being an increase in the interest rate to 6.5%. This loan was paid in full in September 2013. | ||||||||
On May 7, 2010, the Gas Company entered into a credit agreement with Community Bank N.A. for a $1.05 million Promissory Note at a fixed interest rate of 6.25% for the purpose of paying for the construction projects of our new franchise located in the town of Virgil, New York. This agreement gives our lender security interest in all fixtures, equipment and inventory related to the Gas Company's franchise in the town of Virgil as well as the Rabbi Trust account. The note also required an equity contribution of $350,000 which was accomplished by the exercise of 24,000 stock options by Michael I. German, President and CEO, at $15.00 per share or $360,000. The agreement included the following covenants to be measured at each fiscal year end starting with the September 30, 2009 financial statement: (i) maintain a tangible net worth of not less than $11.0 million, (ii) maintain a debt to tangible net worth of less than 3.0 to 1.0, and (iii) maintain a debt service coverage ratio of 1.10 to 1. On March 10, 2011, the interest rate on this loan was modified from a fixed interest rate to a floating rate of 30-day LIBOR plus 2.75% with a floor rate of 4.5% and a ceiling rate of 6.25%. The rate was 4.5% as of September 30, 2014. | ||||||||
In September 2010, the Gas Company entered into an agreement with Five Star Bank to provide $750,000 to fund construction of an upgrade to existing natural gas piping to serve increased gas demands on one of our main supply lines, including three Corning Incorporated plants. The Company gave the bank a security interest in all funds, deposits and other property, now or hereafter in the possession of the bank as collateral for this agreement. Interest is payable monthly at a fixed rate of 4.25% per annum and, unless sooner accelerated or demanded, the note was to mature on September 25, 2011. This note was refinanced with Five Star Bank on September 1, 2011 with no change in terms. On August 13, 2012 the note was refinanced at a variable interest rate of prime rate plus 1.00% until July 30, 2013. Commencing July 30, 2013 and continuing until August 1, 2018, the Gas Company will pay principal and interest at a fixed rate equal to the prevailing Federal Home Loan Bank of New York Fixed Advance Rate as published five days prior to July 30, 2013, plus 3.75%. The interest rate at September 30, 2013 was 5.79%. | ||||||||
On October 27, 2010, the Gas Company entered into a Multiple Disbursement Term Note with M&T Bank in the amount of $1,865,000 to refinance construction costs originally financed through internally generated funds. Pari-passeu first security interest in all fixed assets and equipment, contract rights, easements, right of ways, etc. of the Gas Company was granted as collateral. The interest rate of this note is 5.76% and is payable monthly for five years calculated on a ten year amortization schedule. A final payment will be due on the maturity date equal to the outstanding principal and interest. This loan was paid in full in September 3, 2013 (see information on September 3, 2014 refinancing below). | ||||||||
On July 14, 2011, the Gas Company entered into a Multiple Disbursement Term Note and Credit Agreement in the amount of $2 million with M&T Bank to fund construction projects in our NYPSC-mandated repair/replacement program for calendar year 2011. No additional collateral was required for this note. Until October 31, 2011, the note was payable as interest only at a rate of the greater of 3.50% above 30-day LIBOR or 4.25%. On November 1, 2011 the note converted to a permanent loan payable monthly for five years calculated on a ten-year amortization schedule with a variable rate, adjusting daily, based on the greater of 3.25 basis points above 30-day LIBOR or 4.25%. | ||||||||
On July 27, 2012, the Gas Company entered into a Line of Credit Agreement and Term Loan Agreement in the amount of $2.45 million with Community Bank, N.A. to fund construction projects in our NYPSC mandated repair/replacement program for 2012. This agreement gives our lender security interest in all fixtures, equipment and inventory related to the Gas Company's investment from these construction projects as well as the Rabbi Trust account. From July 27, 2012 to November 30, 2012 (“Draw Period”), the note was payable as interest only at a rate of the greater of 3.00 percentage points above 30-day LIBOR or 3.75%. On December 1, 2012, the note converted to a permanent loan payable monthly for five years with the same interest rate calculated on a ten-year amortization schedule. A final payment will be due on the maturity date equal to the outstanding principal and interest. | ||||||||
On August 13, 2012, the Gas Company entered into agreements with Five Star Bank pursuant to two Promissory Notes in the amount of $250,000 each. Each Note is payable monthly for five years at the fixed interest rate of 4.46% per annum. At that time, the Notes will have the option to be paid-in-full, refinanced or remain in place for an additional five years with a new effective rate established at that time. The purpose of these Notes was to fund construction of two major projects. Collateral for these notes is a first priority lien on all underground piping associated with one project and a first priority lien on the contract between the Gas Company and the customer for the other project. | ||||||||
On September 3, 2013, the Gas Company refinanced approximately $7.8 million of its existing indebtedness with M&T Bank and obtained $4.0 million in new financing from M&T Bank. The Gas Company entered into the following two notes in favor of M&T, which are in replacement of and in substitution for (a) a $6 million loan agreement and note with M&T, dated as of March 4, 2010, that had an interest rate to 6.5%, and (b) a note, dated as of October 27, 2010, executed by the Gas Company in favor of M&T in the original principal amount of approximately $1.8 million that had an interest rate of 5.76%: | ||||||||
A Replacement Multiple Disbursement Term Note, dated September 3, 2013, in the original principal amount of $4.8 million. As collateral, the Company granted M&T Bank security interest in all fixed assets and equipment, contract rights, easements, right of ways, etc. of the Gas Company. Until October 31, 2013, the note was payable as interest only at an interest rate equal to 3.25% above one-month LIBOR, adjusted daily. On October 31, 2013, the note converted to a permanent loan payable over five years in monthly installments of principal and interest of $85,247 calculated on a five-year amortization schedule. The interest rate on this note during the permanent loan period is 4.2%. The total amount borrowed under this agreement is $4,599,690. | ||||||||
A Replacement Term Note, dated September 3, 2013, in the original principal amount of $3.0 million that bears interest at a fixed rate of 4.51%. As collateral, the Gas Company granted M&T Bank security interest in all fixed assets and equipment, contract rights, easements, right of ways, etc. of the Gas Company. The note is payable over five years in equal monthly installments of principal and interest of $56,028. The note in the original principal amount of $3.0 million is also secured by a Mortgage dated May 7, 2008, in the amount of $3.0 million on the Gas Company's principal place of business. | ||||||||
Also on September 3, 2013, the Gas Company entered into a Multiple Disbursement Term Note with M&T Bank, dated as of September 3, 2013, in the original principal amount of $4.0 million, the proceeds of which were used to fund construction projects related to furnishing natural gas within the Gas Company's service area. As collateral, the Gas Company granted M&T Bank security interest in all fixed assets and equipment, contract rights, easements, right of ways, etc. of the Gas Company. Until November 30, 2013, the note was payable as interest only at an interest rate equal to the rate in effect each day as announced by M&T Bank as its prime rate of interest. On November 30, 2013, the note converted to a permanent loan payable over five years in equal monthly installments of principal and interest of $23,438 calculated on a ten-year amortization schedule. The interest rate on this note during the permanent loan period is 4.18% and the loan will mature on December 3, 2018. The Gas Company borrowed $2,329,223 before the note converted to a permanent loan. | ||||||||
On October 4, 2013, the Gas Company repaid in full the $1,966,469 in outstanding principal, accrued interest and premium owed under its 7.9% Unsecured Senior Notes, dated as of September 1, 1997 (the "Senior Notes"), as amended, which had an original aggregate principal amount of $4.7 million and were held by Great West Life & Annuity Insurance Company ("Great West"). As a result of the repayment, all of the Company's obligations with respect to the Senior Notes have been completed and the Senior Notes and the Intercreditor and Collateral Agency Agreement among Manufacturers and Traders Trust Company, as collateral agent and bank lender, and Great West, dated December 1, 2009, terminated in accordance with their respective terms. The Gas Company funded the repayment of the Senior Notes with proceeds from the $4.8 million of new financing from M&T Bank (see information on September 3, 2014 refinancing above). | ||||||||
On July 3, 2014, the Gas Company entered into a Multiple Disbursement Term Note and Credit Agreement in the amount of $3,796,000 with M&T. As collateral, the Gas Company granted M&T a security interest in all fixed assets and equipment, contract rights, easements, right of ways, etc. of the Gas Company. From July 3, 2014 to November 29, 2014 (“Draw Period”), the Note will be payable as interest only at the prime interest rate in effect at time of draw. On November 30, 2014 the Note converted to a permanent loan payable monthly for five years at an interest rate of 2.75 percentage points above the sum of the yield on United States Treasury Obligations to a constant maturity of five years plus the “ask” side of the five-year LIBOR swap. The monthly repayment amount will be calculated on a ten year amortization schedule. A final payment equal to the outstanding principal and interest will be due on the maturity date. The purpose of this Note is to fund construction projects in our New York Public Service Commission (“NYPSC”) mandated repair/replacement program for 2014. As of September 30, 2014, the Gas Company has drawn $2,852,549 on this note. The interest rate for this loan is 4.39% as of the loan conversion on November 30, 2014. | ||||||||
Also on July 3, 2014, the Gas Company entered into a Term Note and Credit Agreement with M&T in the amount of $615,000. As collateral, the Gas Company granted M&T a security interest in all fixed assets and equipment, contract rights, easements, right of ways, etc. of the Gas Company. Interest on this note will be a fixed rate of 4.49%. The monthly payments will be $6,371 with a final balloon payment due at loan maturity in July 2019. The purpose of this note is to refinance costs associated with 2013 mandated repair/replacement projects. | ||||||||
The Gas Company is in compliance with all of our loan covenants as of September 30, 2014. |
Lines_of_Credit
Lines of Credit | 12 Months Ended |
Sep. 30, 2014 | |
Lines of Credit [Abstract] | |
Lines of Credit | (7) Lines of Credit |
On March 25, 2014, the Gas Company refinanced its line of credit agreement with Community Bank N.A. (“Community Bank”) in the amount of $8.5 million. This line replaces the Gas Company's $8 million revolving line that expired on April 1, 2014 and the new line expires on April 1, 2015. Borrowings outstanding on this line were $4,614,541 and $4,407,305 at September 30, 2014 and 2013, respectively. The maximum amount outstanding during the years ended September 30, 2014 and 2013 were $7,140,511 and $5,652,671, respectively. The interest rate is calculated as the 30-day Libor Rate plus 2.8%. As security for the Gas Company's line of credit, Community Bank has a purchase money interest in all of our natural gas purchases utilizing funds advanced by Community Bank under the line-of-credit agreement and all proceeds of sale of the gas to customers and related accounts receivable. Under the terms of this line the Gas Company is required to maintain a debt to tangible net worth ratio of less than 2.5 to 1 and a debt service coverage ratio of 1.1 to 1. The Gas Company is in compliance with the loan covenants as of September 30, 2014. On September 30, 2014, the interest rate was 2.9565%. The weighted average interest rates on outstanding borrowings during fiscal 2014 and 2013 were 3.17% and 3.25%, respectively. |
Stockholders_Equity
Stockholders Equity | 12 Months Ended |
Sep. 30, 2014 | |
Stockholders Equity [Abstract] | |
Stockholders Equity | (8) Stockholders Equity |
On May 28, 2009, the Gas Company registered with the Securities and Exchange Commission (“SEC”) 100,000 shares of common stock with a par value of $5 per share for a dividend reinvestment program. On January 10, 2014, the Holding Company filed with the SEC a registration statement with respect to the then remaining 129,000 shares of the Holding Company's common stock issuable under the dividend reinvestment plan. As part of this program 761 shares were issued in fiscal year 2009, 2,319 shares were issued in fiscal year 2010, 3,976 shares in fiscal year 2011, 5,689 shares in fiscal year 2012 and 7,433 shares in fiscal year 2013 and 7,219 shares in 2014. A total of 27,397 shares have been issued since the program started. | |
The Holding Company entered into a series of stock purchase agreements selling to six investors an aggregate of 150,000 shares of common stock at a price of $16.40 per share. This private placement of common stock resulted in gross proceeds to the Holding Company of $2,460,000. A stock purchase agreement for 75,000 shares dated April 7, 2014, was entered into with the Article 6 Marital Trust under the First Amended and Restated Jerry Zucker Revocable Trust dated April 2, 2007 (the "Zucker Trust"). Closing was funded on or about April 9, 2014. Prior to this purchase, Anita G. Zucker, as trustee of the Zucker Trust, reported holding 214,451 shares of the Holding Company's common stock on a Schedule 13D dated September 24, 2012. On April 15, 2014, the Holding Company entered into four separate Stock Purchase Agreements with QCI Asset Management LLC ("QCI") and four of its advisees for an aggregate of 70,000 shares of common stock held for the benefit of the accounts of those advisees managed by QCI. QCI also manages certain funds of the Holding Company and subsidiaries. On April 16, 2014, the Holding Company entered into a stock purchase agreement with Robert B. Johnston for 5,000 shares. Mr. Johnston is or may be deemed an affiliate of the Zucker Trust and as of July 15, 2014, become a member the Holding Company's Board of Directors. The price of $16.40 per share was the same under each of the stock purchase agreements. Closing on these remaining 75,000 shares occurred on April 16, 2014. The proceeds were used initially to reduce the outstanding balance on the Company's line of credit and in the long term to help fund the Company's capital projects. |
Investment_in_Joint_Ventures
Investment in Joint Ventures | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Investment in Joint Ventures [Abstract] | |||||||||
Investment in Joint Ventures | (9) Investment in Joint Ventures | ||||||||
After implementation of the holding company structure, the interests of the Appliance Corp. in Leatherstocking Gas, a joint venture with Mirabito Regulated Industries were transferred to the Holding Company. This joint venture is currently moving forward on expansions to several areas in the northeast. The Holding Company and Mirabito Regulated Industries each own 50% of the joint venture and each appoints three managers to operate Leatherstocking Gas. The seventh manager is a neutral manager agreed to by the Holding Company and Mirabito Regulated Industries who is not an officer, director, or employee of either company, currently Carl T. Hayden. The current managers are Joseph P. Mirabito, John J. Mirabito and William Mirabito from Mirabito Regulated Industries; Matthew J. Cook, Michael I. German and Russell S. Miller from the Company; and Carl T. Hayden as the neutral manager. Michael I. German is the Chief Executive Officer and President of the Holding Company and is also a stockholder and current board member of the Holding Company. Joseph P. Mirabito and William Mirabito are stockholders and current board members of the Holding Company. Mirabito Holdings, Inc. an affiliate of the co-venturer, holds shares of the Holding Company. Leatherstocking Gas has received franchises from the Village and Town of Sidney, Village and Town of Bainbridge, Village and Town of Windsor and Village and Town of Unadilla and the Village and Town of Delhi in New York. In addition, Leatherstocking Gas has acquired sixteen franchises in Susquehanna and Bradford Counties, Pennsylvania. Leatherstocking Gas has met with potential customers and public officials, as well as attended public hearings, and believes there is interest in acquiring gas service. On July 25, 2013, Leatherstocking Gas signed a loan agreement with Five Star Bank for $1.5 million to finance the construction in Bridgewater, Pennsylvania. This Line of Credit agreement was finalized when it was filed with the Pennsylvania Department of Transportation on July 30, 2013 and increased to $1.8 million before converting to a long-term note. Construction in the Township of Bridgewater began in July 2013 and Leatherstocking Gas began serving customers in October 2013. Construction of the Borough of Montrose system started this spring and construction started in the Township of Dimock in November 2014. On August 28, 2014, Leatherstocking Gas, as borrower, and Leatherstocking Pipeline as guarantor, entered into a loan agreement with Five Star Bank for up to $4 million over two years to finance the work and services required for the infrastructure costs and ongoing costs of underground piping construction projects in Montrose, Bridgewater and Dimock, Pennsylvania. As of September 30, 2014, Leatherstocking Gas has drawn $1.5 million on this loan. The Holding Company would be required to invest approximately $1 million to meet the loan requirements necessary to receive the balance on the agreement of $2.5 million from the bank. | |||||||||
The interests in Leatherstocking Pipeline, which was formed with the same structure and managers as Leatherstocking Gas, were also transferred to the Holding Company. Leatherstocking Pipeline is an unregulated company whose purpose is to serve one customer in Lawton, Pennsylvania. In the spring and summer of 2012, Leatherstocking Pipeline built and placed in service facilities to serve that customer. | |||||||||
The following table represents the Holding Company's investment activity in the Joint Ventures at September 30, 2014 and by the Gas Company, through its subsidiary the Appliance Corp. at September 30, 2013: | |||||||||
2014 | 2013 | ||||||||
Beginning balance in investment in joint ventures | $ | 587,678 | $ | 349,193 | |||||
Investment in joint ventures during year | 800,000 | 281,000 | |||||||
Income (loss) in joint ventures during year | (106,921 | ) | (42,515 | ) | |||||
Ending balance in joint ventures | $ | 1,280,757 | $ | 587,678 | |||||
At September 30, 2014, the Joint Ventures had combined assets of $6.7 million, combined liabilities of $4.2 million and combined net losses of $213,849. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Income Taxes [Abstract] | |||||||||
Income Taxes | (10) Income Taxes | ||||||||
Income tax expense (benefit) for the years ended September 30 is as follows: | |||||||||
2014 | 2013 | ||||||||
Current | $ | 70,000 | $ | (50,557 | ) | ||||
Deferred | 1,240,705 | 925,901 | |||||||
Total | $ | 1,310,705 | $ | 875,344 | |||||
Actual income tax expense differs from the expected tax expense (computed by applying the federal | |||||||||
corporate tax rate of 34% and state tax rate of 7.1% to income before income tax expense) as follows: | |||||||||
2014 | 2013 | ||||||||
Expected federal tax expense | $ | 1,148,692 | $ | 904,644 | |||||
Regulatory adjustment | (80,054 | ) | (51,551 | ) | |||||
Dividends received deduction | (12,665 | ) | (16,536 | ) | |||||
State tax expense (net of federal) | 223,157 | 113,808 | |||||||
Other, net | 31,575 | (75,021 | ) | ||||||
Actual tax expense | $ | 1,310,705 | $ | 875,344 | |||||
The tax effects of temporary differences that result in deferred income tax assets and liabilities at September 30 are as follows: | |||||||||
2014 | 2013 | ||||||||
Deferred income tax assets: | |||||||||
Unbilled revenue | $ | 15,510 | $ | - | |||||
Deferred compensation reserve | 684,897 | 571,926 | |||||||
Post-retirement benefit obligations | 551,579 | 413,963 | |||||||
Comprehensive income | 1,563,865 | 1,803,620 | |||||||
Inventories | 54,629 | - | |||||||
Deficiency of gas adjustment clause revenues billed | 121,316 | - | |||||||
NOL carryforwards | 3,146,186 | 5,590,448 | |||||||
Other | 407,984 | 1,279,979 | |||||||
Total deferred income tax assets | 6,545,966 | 9,659,936 | |||||||
Deferred income tax liabilities: | |||||||||
Property, plant and equipment, principally due to | |||||||||
differences in depreciation | 7,197,083 | 8,698,227 | |||||||
Pension benefit obligations | 238,880 | 863,056 | |||||||
Unbilled revenue | - | 42,635 | |||||||
Inventories | - | 48,381 | |||||||
Deferred rate expense and allocations | 438,469 | 528,458 | |||||||
Deficiency of gas adjustment clause revenues billed | - | 28,238 | |||||||
Prior period tax reconciliations | - | 29,045 | |||||||
Other | 111,166 | - | |||||||
Total deferred income tax liabilities | 7,985,598 | 10,238,040 | |||||||
Net deferred income tax (assets) liabilities | $ | 1,439,632 | $ | 578,104 | |||||
The Holding Company has federal and New York State tax net operating loss carry forwards available of approximately $8 million and $5.8 million, respectively, as of September 30, 2014 that begin to expire at the end of the Holding Company's fiscal 2025 tax year. | |||||||||
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 accordingly 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 will file a consolidated federal income tax return and state income tax returns in New York and Pennsylvania. The federal returns for the tax years ended prior to September 30, 2012 and the state returns for the tax years ended prior to September 30, 2010 are no longer subject to examination. The Gas Company's federal return is currently being examined for the tax year ended September 30, 2012. At this time, the Holding Company and Gas Company do not know of any material financial impact as a result of the audit. |
Pension_and_Other_Postretireme
Pension and Other Post-retirement Benefit Plans | 12 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Pension and Other Post-retirement Benefit Plans [Abstract] | |||||||||||||||||
Pension and Other Post-retirement Benefit Plans | (11) 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 sheet 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 $2,256,953 (plus $51,185 in additional stock) and $2,191,355 (plus $51,185 in additional stock) at September 30, 2014 and 2013, respectively, and the plan liability, which is labeled as deferred compensation on the balance sheet, was $1,666,415 and $1,545,747 at September 30, 2014 and 2013, respectively. The assets of the trust are available to general creditors in the event of insolvency. In 2014, the mortality assumption has changed from the 1994 Group Annuity Mortality Table for Males and Females without generational improvements to the RP-200 annuitant/non-annuitant Mortality Table for Males and Females with generational improvements projected using scale BB. This change resulted in an increase to the pension benefit obligation of approximately $131,200. | |||||||||||||||||
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 2, 2015. 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 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Change in benefit obligations: | |||||||||||||||||
Benefit obligation at beginning of year | $ | 17,099,633 | $ | 18,332,559 | $ | 1,118,819 | $ | 1,187,118 | |||||||||
Service cost | 306,274 | 395,916 | 16,096 | 17,285 | |||||||||||||
Interest cost | 806,489 | 715,062 | 52,682 | 46,223 | |||||||||||||
Participant contributions | - | - | 62,600 | 71,000 | |||||||||||||
Actuarial (gain) loss | 1,299,938 | (1,483,059 | ) | 136,781 | (68,807 | ) | |||||||||||
Benefits paid | (879,016 | ) | (860,845 | ) | (122,600 | ) | (134,000 | ) | |||||||||
Curtailments | - | - | - | - | |||||||||||||
Benefit obligation at end of year | 18,633,318 | 17,099,633 | 1,264,378 | 1,118,819 | |||||||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets at beginning of year | 12,224,984 | 11,498,019 | - | - | |||||||||||||
Actual return on plan assets | 1,164,288 | 715,932 | - | - | |||||||||||||
Company contributions | 1,164,898 | 877,480 | 60,000 | 63,000 | |||||||||||||
Participant contributions | - | - | 62,600 | 71,000 | |||||||||||||
Benefits paid | (879,016 | ) | (866,447 | ) | (122,600 | ) | (134,000 | ) | |||||||||
Fair value of plan assets at end of year | 13,675,154 | 12,224,984 | - | - | |||||||||||||
Funded status | (4,958,164 | ) | (4,874,649 | ) | (1,264,378 | ) | (1,118,819 | ) | |||||||||
Unrecognized net actuarial loss / (gain) | 3,572,106 | 2,950,422 | (79,013 | ) | (239,771 | ) | |||||||||||
Unrecognized prior service cost | 19,203 | 29,952 | 153,630 | 157,177 | |||||||||||||
(Accrued) prepaid benefit cost | (1,366,855 | ) | (1,894,275 | ) | (1,189,761 | ) | (1,201,413 | ) | |||||||||
Accrued contribution | - | - | - | - | |||||||||||||
Amounts recognized in the balance sheet consists of: | |||||||||||||||||
Prepaid (accrued) benefit liability | (4,958,164 | ) | (4,874,649 | ) | (1,264,378 | ) | (1,118,819 | ) | |||||||||
Amounts recognized in the Balance Sheets consist of: | |||||||||||||||||
(Accrued)/prepaid pension cost as of beginning of fiscal year | (1,894,275 | ) | (1,909,179 | ) | (1,201,413 | ) | (1,212,900 | ) | |||||||||
Pension (cost) income | (737,994 | ) | (637,478 | ) | (56,348 | ) | (53,513 | ) | |||||||||
Contributions | 1,164,898 | 877,480 | - | - | |||||||||||||
Change in receivable contribution | 100,516 | (225,098 | ) | - | - | ||||||||||||
Net benefits paid | - | - | 68,000 | 65,000 | |||||||||||||
Change in additional minimum liability | - | - | - | - | |||||||||||||
(Accrued)/prepaid pension cost as of end of fiscal year | (1,366,855 | ) | (1,894,275 | ) | (1,189,761 | ) | (1,201,413 | ) | |||||||||
Fair value of plan assets at end of year | |||||||||||||||||
Cash and equivalents | 333,449 | 168,627 | - | - | |||||||||||||
Government and agency issues | 2,084,850 | 2,056,301 | - | - | |||||||||||||
Corporate bonds | 3,523,711 | 3,193,521 | - | - | |||||||||||||
Fixed index funds | 609,911 | 421,120 | - | - | |||||||||||||
Fixed income | 1,095,214 | 373,592 | - | - | |||||||||||||
Equity securities | 6,028,019 | 6,011,823 | - | - | |||||||||||||
13,675,154 | 12,224,984 | - | - | ||||||||||||||
The funded status of both plans totaling a deficiency of approximately $6,200,000 and $6,000,000 at September 30, 2014 and 2013, respectively, are included in deferred pension & post-retirement benefits on the consolidated balance sheets which are offset by pension regulatory assets of approximately $131,000 and $383,000 at September 30, 2014 and 2013, respectively. The net actuarial loss/(gain) and unrecognized prior service cost are collectively the adjustment to other comprehensive income (loss)-minimum pension liability in the consolidated financial statements, which are presented net of tax. | |||||||||||||||||
Amortization of unrecognized net (gain)/loss for the Retirement Plan for fiscal year ending September 30, 2014: | |||||||||||||||||
1 | Projected benefit obligation as of September 30, 2014 | $ | 18,633,318 | ||||||||||||||
2 | Plan assets at September 30, 2014 | (13,675,154 | ) | ||||||||||||||
3 | Unrecognized (gain)/loss as of September 30, 2014 | 3,572,106 | |||||||||||||||
4 | Ten percent of greater of (1) or (2) | 1,863,332 | |||||||||||||||
5 | Unamortized (gain)/loss subject to amortization - (3) minus (4) | 1,708,774 | |||||||||||||||
6 | Active future service of active plan participants expected to receive benefits | 9.87 | |||||||||||||||
7 | Minimum amortization of unamortized net (gain)/loss - (5)/(6) | $ | 173,128 | ||||||||||||||
8 | Amortization of (gain)/loss for 2014-2015 | $ | 493,958 | ||||||||||||||
Amortization of unrecognized net (gain)/loss for the Post-Retirement Plan for the fiscal year ended September 30, 2014: | |||||||||||||||||
Unrecognized net (gain)/loss at October 1, 2014 subject to amortization | $ (79,013) | ||||||||||||||||
Amount to be amortized 2014 - 2015 | |||||||||||||||||
Amortization period | 10 years | ||||||||||||||||
Amortization for 2014 - 2015 ((gain)/loss divided by period) | $ (7,901) | ||||||||||||||||
Pension Benefits | Post-retirement Benefits | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Components of net period benefit cost (benefit): | |||||||||||||||||
Service cost | 311,274 | 395,916 | 16,096 | 17,285 | |||||||||||||
Interest cost | 806,489 | 715,062 | 52,682 | 46,223 | |||||||||||||
Expected return on plan assets | -926,361 | -886,563 | - | - | |||||||||||||
Amortization of prior service | 10,749 | 14,228 | 3,547 | 3,547 | |||||||||||||
Amortization of unrecognized actuarial loss (gain) | 435,327 | 623,933 | -23,977 | -15,542 | |||||||||||||
Net periodic benefit cost (benefit) | 637,478 | 862,576 | 48,348 | 51,513 | |||||||||||||
For ratemaking and financial statement purposes, pension expense represents the amount approved by the NYPSC in the Gas Company's most recently approved rate case. Pension expense (benefit) for ratemaking and financial statement purposes was approximately $970,000 for the years ended September 30, 2014 and 2013. 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 $227,024 and $432,766 as of September 30, 2014 and 2013, respectively. | |||||||||||||||||
The NYPSC has allowed the Gas Company to recover incremental cost associated with post-retirement benefits through rates on a current basis. Due to the timing differences between the Company's rate case filings and financial reporting period, a regulatory receivable of $147,168 and $188,112 has been recognized at September 30, 2014 and 2013, respectively. | |||||||||||||||||
Pension Benefits | Post-retirement Benefits | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average assumptions used to determine net | |||||||||||||||||
period cost at September 30: | |||||||||||||||||
Discount rate | 5.07 | % | 4.85 | % | 3.95 | % | 4.85 | % | |||||||||
Salary increases | 2 | % | 2 | % | N/A | N/A | |||||||||||
Expected return on assets | 7.5 | % | 7.5 | % | N/A | N/A | |||||||||||
For the period ended September 30, 2013, the discount rate which is used approximates the Mercer Yield Curve Above Mean Model. The yield curve is a spot rate yield curve that provides a zero-coupon interest rate for each year into the future. For the period ended September 30, 2014, 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. In 2014, the mortality assumption has changed from the 1994 Group Annuity Mortality Table for Males and Females without generational improvements to the RP-200 annuitant/non-annuitant Mortality Table for Males and Females with generational improvements projected using scale BB. This change resulted in an increase to the pension benefit obligation of approximately $1,394,000. The net effect of these two changes to the assumptions is a decrease of approximately $759,000 to the pension benefit obligation. | |||||||||||||||||
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 limitation 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, a 6% annual rate of increase in the per capita cost of covered benefits (health care cost trend rate) was assumed for 2014. The rate is assumed to increase by 6% each year thereafter. A 1% increase in the actual health care cost trend would result in approximately a 4.4% increase in the service and interest cost components of the annual net periodic post-retirement benefit cost and a 5.6% increase in the accumulated post-retirement benefit obligation. A 1% decrease in the actual health care cost trend would result in approximately a 3.7% decrease in the service and interest cost components of the annual net periodic post-retirement benefit cost and a 4.7% decrease in the accumulated post-retirement benefit obligation. | |||||||||||||||||
The Gas Company expects to contribute $1,000,000 to the Retirement Plan during the year ended September 30, 2015. | |||||||||||||||||
The estimated pension plan benefit payments are as follows: | |||||||||||||||||
2015 | $ | 1,008,000 | |||||||||||||||
2016 | $ | 1,078,000 | |||||||||||||||
2017 | $ | 1,117,000 | |||||||||||||||
2018 | $ | 1,133,000 | |||||||||||||||
2019 | $ | 1,196,000 | |||||||||||||||
2020+ | $ | 6,732,000 | |||||||||||||||
The Gas Company also maintains the Corning Natural Gas Corporation Employee Savings Plan (the "Savings Plan"). All employees of the 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. For all employees, the Company will match one-half of the participant's contribution up to a total of 50% 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 Company contribution to the plan was $87,712 in 2014 and $83,938 in 2013. | |||||||||||||||||
Stock_Options
Stock Options | 12 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Stock Options [Abstract] | |||||||||||||||||
Stock Options | (12) Stock Options | ||||||||||||||||
A summary of all stock option activity and information related to all options outstanding follows: | |||||||||||||||||
2013 | |||||||||||||||||
Stock Options | |||||||||||||||||
Number of | Weighted | Average | |||||||||||||||
Shares | Average | Remaining | |||||||||||||||
Remaining | Exercise | Contractual | |||||||||||||||
Options | Price | Term | |||||||||||||||
Outstanding at October 1, 2012 | 42,000 | $ | 11.81 | ||||||||||||||
Options granted | - | ||||||||||||||||
Options exercised during year ended September 30, 2013 | 17,700 | $ | 11.33 | ||||||||||||||
Options expired during year ended September 30, 2013 | 10,800 | ||||||||||||||||
Outstanding at September 30, 2013 | 13,500 | $ | 12.83 | 2.25 years | |||||||||||||
Exercisable at September 30, 2013 | 13,500 | $ | 12.83 | 2.25 years | |||||||||||||
2014 | |||||||||||||||||
Stock Options | |||||||||||||||||
Number of | Weighted | Average | |||||||||||||||
Shares | Average | Remaining | |||||||||||||||
Remaining | Exercise | Contractual | |||||||||||||||
Options | Price | Term | |||||||||||||||
Outstanding at October 1, 2013 | 13,500 | $ | 12.83 | ||||||||||||||
Options granted | - | ||||||||||||||||
Options exercised during year ended September 30, 2014 | - | ||||||||||||||||
Options expired during year ended September 30, 2014 | - | ||||||||||||||||
Outstanding at September 30, 2014 | 13,500 | $ | 12.83 | 1.25 years | |||||||||||||
Exercisable at September 30, 2014 | 13,500 | $ | 12.83 | 1.25 years | |||||||||||||
There is no unrecognized cost related to options at September 30, 2014 because all options are vested. |
Commitments
Commitments | 12 Months Ended |
Sep. 30, 2014 | |
Commitments [Abstract] | |
Commitments | (13) Commitments |
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. In 2011, the Gas Company entered into an asset management agreement with ConocoPhillips. As of April 2014, the Gas Company assumed responsibility for managing its own gas supply assets. The Company purchased approximately $2.3 million of gas by the end of September 2014 that was placed into storage. As a result of these actions, the Gas Company anticipates that it will have sufficient gas to supply its customers for the 2014-2015 winter season. | |
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, approximately 14,800 customers. | |
On April 25, 2011, the Gas Company entered into a Letter of Credit for $324,000 with Community Bank, N.A. required by Arlington Storage Company for gas inventory storage. The Gas Company pays an annual fee equal to 1% of the Letter of Credit amount and expires on April 30, 2015. The Gas Company does not know if this letter will be required to be renewed at that time. | |
On December 30, 2011, the Gas Company entered into a definitive Settlement and Release Agreement (the “Agreement”) settling two lawsuits by a former Chairman of the Gas Company. As previously disclosed, Thomas K. Barry sought damages from the Gas Company for failure to transfer to Mr. Barry a key-man life insurance policy and for terminating payments under a deferred compensation agreement. Please refer to the Gas Company's Form 10-K for the fiscal year ended September 30, 2011 for disclosure regarding the original claims. Under the Agreement, the Gas Company paid to Mr. Barry $285,000 on January 13, 2012, and beginning in calendar 2013, the Gas Company will pay Mr. Barry on or before each January 5, $40,000 plus interest compounded annually at 4% (less than one-half of the amount in Mr. Barry's deferred compensation agreement) for the longer of ten years or Mr. Barry's lifetime. The Gas Company will pay Mr. Barry $15,000 annually for the longer of ten years or Mr. Barry's lifetime up to a maximum of 20 payments to replace the life insurance policy. The Gas Company has paid the amounts due in January 2013 and 2014. In addition, the Company will provide certain health and prescription drug insurance benefits to Mr. Barry and his wife for life. The Company and Mr. Barry exchanged mutual general releases. The present value of the expected future obligation is estimated at $555,104 and $517,973 at September 30, 2014 and 2013, respectively, and recorded in deferred compensation in the accompanying consolidated balance sheets. | |
On August 24, 2014, Leatherstocking Gas and Five Star Bank entered into an agreement which allows Leatherstocking Gas to borrow up to $4 million over a two year period as a line of credit note with interest only payments due at a variable rate equal to the prime rate announced in the Wall Street Journal on a monthly basis. The note will then convert to a permanent loan payable over five years at a fixed rate. The note requires matching 60% of each advance with 40% of borrower equity. That will require an additional investment of approximately $1 million from the Holding Company in the next fiscal year. Leatherstocking Pipeline is a guarantor of this loan. The interests of the Holding Company and Mirabito Regulated Industries, LLC in equal parts have been pledged as additional collateral. | |
Environmental Considerations: The Gas Company is subject to various federal, state and local environments laws and regulations. The Gas 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 Gas Company is in compliance with all applicable regulations. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (14) Related Party Transactions |
A director is performing legal services of approximately $250,000 related to some property tax savings but the cost will not be collected from the Gas Company until that cost is reimbursed by the customer responsible for payment of the property tax. No amounts have been recorded in the consolidated financial statements until the transaction is complete and the amounts have been paid by the customer to the Gas Company. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | (15) Subsequent Events |
On November 26, 2014, the Gas Company and one of its major customers, Bath Electric, Gas & Water Systems (“BEGWS”), filed a Memorandum of Understanding (“MOU”) with the NYPSC to settle the dispute in Case 10-G-0598, subject to approval of the MOU by the NYPSC. BEGWS agreed to drop its claims against the Company and the Company agreed to make certain capital expenditures of approximately $250,000 to improve the reliability to BEGWS and the Company's Hammondsport pipeline. | |
On December 12, 2014, in Case 13-G-0465, the NYPSC approved the recovery of $809,299 for the large customer deferral for rate year two and the balance of rate year one under-collection not previously approved. These amounts are included in deferred rate case reconciliations in Note 5 to the financial statements. The rate years are from May 1, 2012 through April 30, 2015. Recovery of the property tax deferral under-collection and certain other large customer deferral amounts are still being reviewed. Management expects to start recovering on any remaining amounts in the next rate case expected to be concluded during the year ended September 30, 2015. The amounts that were approved now will reduce the under-collection and additional billings to the customers during the next rate case. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||
Principles of Consolidation and Presentation | (a) Principles of Consolidation and Presentation | ||||||||||
In order to reorganize the regulated and unregulated businesses of the Company, Corning Natural Gas Holding Corporation (the “Holding Company”), a wholly-owned subsidiary of the Company at September 30, 2013, was incorporated under the laws of the State of New York on July 19, 2013. The Holding Company was formed to serve as the parent holding company of the Company, Appliance Corp and, directly or indirectly, the interests in the Leatherstocking Joint Venture Companies. The NYPSC approved the formation of the Holding Company and the reorganization of the Gas Company into a holding company structure on May 17, 2013. The reorganization into the holding company structure required approval of holders of at least 66 2/3rds of the Gas Company's common stock and the exchange of shares of common stock of the Gas Company for common stock of the Holding Company. On August 1, 2013, the Holding Company filed a Registration Statement/Proxy Statement on Form S-4 (the “Registration Statement”) with the U.S. Securities and Exchange Commission (“SEC”) to register the securities to be issued by the Holding Company in connection with the exchange and to file a proxy statement for a special meeting of the Gas Company's shareholders regarding the proposal to create the holding company structure and the exchange of shares of the Gas Company's common stock on a one-for-one basis for shares of the Holding Company's common stock. The Registration Statement was effective September 30, 2013. In a special shareholder meeting on November 6, 2013, the proposal was approved by more than two-thirds of shareholders of the Gas Company. The effective date of reorganization was November 12, 2013. Pursuant to the Agreement and Plan of Share Exchange, dated September 12, 2013, between the Holding Company and Corning Gas (the “Exchange Agreement”), and the Certificate of Exchange, on the Effective Date, each issued and outstanding share of Corning Gas' common stock, par value $5.00 per share, was converted into one share of the Holding Company's common stock, par value $0.01 per share. The effect of this share exchange has been reflected retroactively in all periods presented. This resulted in a reclassification between Common Stock and Additional Paid in Capital of $11,290,644 as of September 30, 2013. | |||||||||||
The consolidated financial statements include the Holding Company and its wholly owned subsidiaries, Corning Gas and Corning Natural Gas Appliance Corporation (Appliance Corp.). All intercompany accounts and balances have been eliminated. | |||||||||||
It is the Holding Company's policy to reclassify amounts in the prior year financial statements to conform to the current year presentation. | |||||||||||
Property, Plant and Equipment | (b) Property, Plant and Equipment | ||||||||||
Property, plant and equipment are stated at the historical cost of construction. Those 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 as determined by the current rate plan based on the latest depreciation study. The depreciation rate used for utility plant, expressed as an annual percentage of depreciable property was 2.2% in 2014 and 3.7% in 2013. The NYPSC is allowing the Company recovery in revenues to offset our costs of building certain projects. At the time utility properties are retired, the original cost plus costs of removal less any salvage are charged to accumulated depreciation. | |||||||||||
Accounting for Impairment | (d) Accounting for Impairment | ||||||||||
The Financial Accounting Standards Board (FASB) ASC 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 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 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 the years ended September 30, 2014 and 2013. | |||||||||||
Marketable Securities | (e) Marketable Securities | ||||||||||
Marketable securities, which are intended to fund the Company's deferred compensation plan obligations, are classified as available for sale. Such securities are reported at fair value based on quoted market prices, with unrealized gains and losses, net of the related income tax effect, excluded from income, and reported as a component of accumulated other comprehensive income in stockholders' equity until realized. 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 2014 and 2013, the Company sold equity securities for realized gains (losses) included in earnings of $11,812 and $65,276, 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 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”. | |||||||||||
Fair value of assets and liabilities measured on a recurring basis at September 30, 2014 and 2013 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 | ||||||||
30-Sep-14 | |||||||||||
Available-for-sale securities | $2,308,138 | $2,308,138 | $- | $- | |||||||
30-Sep-13 | |||||||||||
Available-for-sale securities | $2,242,540 | $2,242,540 | $- | $- | |||||||
Financial assets and liabilities valued using level 1 inputs are based on unadjusted quoted market prices within active markets. | |||||||||||
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 regarding customer disconnects. On August 2, 2012, the Company received notice that a significant customer filed for protection under Chapter 11 of the United States Bankruptcy Code. That customer received funding from its principal lender to continue to operate and pay bills going forward. As of September 30, 2013, the Company had reserved 100% of the $252,456 outstanding at the time of the bankruptcy filing which is consistent with the Company's accounting policies. During the year ended September 30, 2014 the amount was written off. | |||||||||||
Related party receivables are expenditures paid on behalf of the Holding Company's joint venture investments. We expect repayment on these amounts during the year ended September 30, 2015. | |||||||||||
Gas Stored Underground | (i) Gas Stored Underground | ||||||||||
Gas stored underground is carried at an average unit cost method as prescribed by the NYPSC. | |||||||||||
Materials and Supplies Inventories | (j) Materials and Supplies Inventories | ||||||||||
Materials and supplies inventories are stated at the lower of cost or market, cost being determined on an average unit price basis. | |||||||||||
Debt Issuance Costs | (k) Debt Issuance Costs | ||||||||||
Costs associated with the issuance of debt by the Company are deferred and amortized over the lives of the related debt. | |||||||||||
Regulatory Matters | (l) Regulatory Matters | ||||||||||
Certain costs are deferred and recognized as expenses when they are reflected in rates and recovered from customers as permitted by FASB ASC 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. | |||||||||||
As a regulated utility, the Company deferred certain costs for future recovery. In a purely competitive environment, such costs might have been currently expensed. Accordingly, if the Company's rate setting were changed from a cost-of-service approach and the Company were no longer allowed to defer these costs under FASB ASC 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 980 is appropriate. | |||||||||||
Revenue and Natural Gas Purchased | (m) Revenue and Natural Gas Purchased | ||||||||||
The 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 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 Company has not done. The 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 a 30 year average. As a result, the effect on revenue fluctuations of weather related gas sales is somewhat moderated. | |||||||||||
In addition to weather normalization, starting in September 2009, the Company 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 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 the next calendar year. | |||||||||||
Gas purchases are recorded on readings of suppliers' meters as of the end of the month. The Company's rate tariffs include a Gas Adjustment Clause (GAC) 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 PSC has provided for an annual reconciliation of recoverable GAC costs with applicable revenue billed. Any excess or deficiency in GAC revenue billed is deferred and the balance at the reconciliation date is either refunded to or recovered from customers over a subsequent 12-month period. | |||||||||||
Federal Income Tax | (n) Federal Income Tax | ||||||||||
The Holding 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. | |||||||||||
Dividends | (o) Dividends | ||||||||||
A dividend of $.125 a share was paid on October 15, 2013 to shareholders of record on September 30, 2013 and on January 15, 2014 to shareholders of record on December 3, 2013. At its regular meeting on February 20, 2014, the board of directors approved an increase in the quarterly dividend to $.135 a share. This dividend was paid on April 15, 2014 to shareholders of record on March 31, 2014 and on July 15, 2014 for shareholders of record on June 30, 2104. For the quarter ended September 30, 2014, $327,819 has been accrued for dividends paid on October 15, 2014 to shareholders of record on September 30, 2014. | |||||||||||
Revenue Taxes | (p) Revenue Taxes | ||||||||||
The Company collects state revenue taxes on residential delivery rates. The amount included in Utility Operating Revenue and Taxes other than Federal Income Taxes was $168,900 and $153,346 in 2014 and 2013, respectively. | |||||||||||
Stock Based Compensation | (q) Stock Based Compensation | ||||||||||
The Holding Company accounts for stock based awards in accordance with FASB ASC 718. The Holding Company awards 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 25% less than the closing price of the stock on the day the stock was awarded. Each director is awarded 375 shares for each quarter served. Six directors received a total of 13,500 shares during fiscal 2013 and 9,000 shares during fiscal 2014. On November 13, 2014, shares were issued for the quarter ended September 30, 2014 with the new director, Robert Johnston receiving 317 shares (accrued for his service during the quarter). | |||||||||||
At its regularly scheduled meeting on December 11, 2012, the Compensation Committee of the Board of Directors of the Company made restricted stock awards of 600 shares each to the five officers of the Company in lieu of salary increases. Each restricted stock award vested 300 shares immediately and 300 shares on December 12, 2013 if the officer were still employed by the Company or one of its subsidiaries or affiliates on that date. Each award is subject to the terms and conditions of a restricted stock award agreement and the Holding Company's Amended and Restated 2007 Stock Plan. In addition, the Board of Directors authorized the sale on December 12, 2012, of 600 shares of the Holding Company's common stock to Carl T. Hayden in compensation for his past service as a director of the Holding Company's joint venture affiliate, Leatherstocking Gas Company, LLC and 75 shares each quarter thereafter until Leatherstocking Gas Company started serving customers at which point quarterly compensation increased to 112 shares for the quarter ended December 31, 2013. Mr. Hayden has received a total of 411 shares for his service. These shares are sold to Leatherstocking Gas Company from time to time at the fair market value determined as the closing price of the Holding Company's common stock on the 20th business day after quarter end. | |||||||||||
Earnings Per Share | (r) Earnings Per Share | ||||||||||
Basic earnings per share are computed by dividing income available for common 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. The only potentially dilutive securities the Holding Company has outstanding are stock options. The diluted weighted average shares outstanding shown on the Consolidated Statements of Income reflects the potential dilution as a result of these stock options as determined using the Treasury Stock Method. Stock options that are antidilutive are excluded from the calculation of diluted earnings per common share. | |||||||||||
311 Transportation Agreement/Compressor Station | (s) 311 Transportation Agreement /Compressor Station | ||||||||||
On January 11, 2010, the Company entered into a contract (311 Transportation Agreement) with a local gas producer that provided for the building of a compressor station as well as the transfer of a 6” pipeline owned by the gas producer to the Company for nominal consideration. The contract also sets forth the terms, rates and condition of the transport of the local producer gas to the interstate pipeline system. On May 21, 2010, the 311 Transportation Agreement was revised to reflect a change in the projected gas delivery schedule and delivery volumes. The previously agreed to transportation rates did not change. The contract's maximum daily delivery quantity remained the same. The schedule for attaining the maximum daily delivery quantity was altered to accommodate the project's construction schedule. The Company bought the $11 million compressor station and $2.1 million pipeline from the local producer for two dollars. The local producer has the right to repurchase these facilities for two dollars in ten years. This transaction became effective on May 12, 2011, when the station began operations. Although the Company has $13.1 million in plant available for use, only two dollars was recognized in accordance with the Uniform System of Accounts (313.2) which states that in the case of gas plant contributed to the utility, gas plant accounts shall be charged only with such expenses, if any, incurred by the utility. | |||||||||||
Collective Bargaining Agreement | (t) Collective Bargaining Agreement | ||||||||||
The Company had 58 employees as of September 30, 2014, and 56 as of September 30, 2013. Of this total, nearly half are union labor working under an agreement effective until April 2, 2015. | |||||||||||
Leatherstocking Companies | (u) Leatherstocking Companies | ||||||||||
The Holding Company has a 50% investment in Leatherstocking Gas Company, LLC (Leatherstocking Gas) and Leatherstocking Pipeline Company, LLC (Leatherstocking Pipeline). The investment and equity in both companies (collectively, “Joint Ventures”) has been recognized in the consolidated financial statements. The Holding Company has accounted for its equity investment using the equity method of accounting based on the guidelines established in FASB ASC 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 Joint Ventures which is recognized through earnings. | |||||||||||
Settlement of Lawsuits | (v) Settlement of Lawsuits | ||||||||||
On August 30, 2012, counsel to Gas Natural, Inc. and Richard M. Osborne sent a letter to counsel representing the Company offering to settle and release, all claims related to Gas Natural Inc.'s previous offers to purchase the Company and other activities, including the Company's 2010 rights offering. On December 11, 2012, at its regularly scheduled meeting, the Board of Directors approved settling the claims for $200,000 in exchange for general releases and certain other consideration. On December 13, 2012, the Company was notified by counsel for Gas Natural, Inc. that Gas Natural, Inc.'s Board of Directors, Richard Osborne and the Osborne | |||||||||||
Trust had approved the settlement. The after tax expense that resulted from this agreement was $126,000 and was shown in other deductions, net for year ended September 30, 2013, on the Company's Consolidated Statement of Income and Comprehensive Income. The Company believes its actions in connection with the offers, the rights offering and other activities were in the best interest of the Company and its shareholders. | |||||||||||
New Accounting Pronouncements Not Yet Adopted | (w) New Accounting Pronouncements Not Yet Adopted | ||||||||||
In May 2014, the FASB issued new accounting guidance on revenue from contracts with customers. The new guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods and services to customers. The updated guidance will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either a retrospective or cumulative effect transition method. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. We have not yet selected a transition method and we are currently evaluating the effect the updated standard will have on our consolidated financial statements and related disclosures. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Summary of Significant 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, 2014 and 2013 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 | ||||||||
30-Sep-14 | |||||||||||
Available-for-sale securities | $2,308,138 | $2,308,138 | $- | $- | |||||||
30-Sep-13 | |||||||||||
Available-for-sale securities | $2,242,540 | $2,242,540 | $- | $- | |||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||
Sep. 30, 2014 | |||
Property, Plant and Equipment [Abstract] | |||
Schedule of Fixed Assets Included in Utility Plant | The following table summarizes fixed asset included in utility plant on the Holding Company's Consolidated Balance Sheet at September 30, 2014 and 2013: | ||
2014 | 2013 | ||
Utility | 19,727,468 | 17,774,138 | |
Pipeline | 38,013,151 | 32,568,644 | |
Structures | 4,979,761 | 4,923,370 | |
Land and Land Rights | 661,864 | 648,326 | |
All Other and Corporate | 5,305,265 | 4,346,781 | |
68,687,509 | 60,261,259 |
Marketable_Securities_Tables
Marketable Securities (Tables) | 12 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Marketable Securities [Abstract] | ||||||||||||||||||
Summary of Marketable Securities | A summary of the marketable securities at September 30, 2014 and 2013 is as follows: | |||||||||||||||||
Cost Basis | Unrealized Gain | Unrealized Loss | Fair Value | |||||||||||||||
2014 | ||||||||||||||||||
Cash and equivalents | $ | 59,096 | - | - | $ | 59,096 | ||||||||||||
MetLife stock value | 51,185 | - | - | 51,185 | ||||||||||||||
Government and agency bonds | 301,673 | - | 4,029 | 297,644 | ||||||||||||||
Corporate bonds | 303,428 | - | 5,050 | 298,378 | ||||||||||||||
Mutual funds | 56,515 | - | 449 | 56,066 | ||||||||||||||
Equity securities | 1,342,789 | 202,980 | - | 1,545,769 | ||||||||||||||
Total securities | $ | 2,114,686 | $ | 202,980 | $ | 9,528 | $ | 2,308,138 | ||||||||||
2013 | ||||||||||||||||||
Cash and equivalents | $ | 84,675 | - | - | $ | 84,675 | ||||||||||||
MetLife stock value | 51,185 | - | - | 51,185 | ||||||||||||||
Government and agency bonds | 301,716 | - | 7,935 | 293,781 | ||||||||||||||
Corporate bonds | 242,471 | - | 6,337 | 236,134 | ||||||||||||||
Mutual funds | 56,310 | 3,764 | - | 60,074 | ||||||||||||||
Equity securities | 1,453,457 | 63,234 | - | 1,516,691 | ||||||||||||||
Total securities | $ | 2,189,814 | $ | 66,998 | $ | 14,272 | $ | 2,242,540 |
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | ||
Sep. 30, 2014 | |||
Regulatory Matters [Abstract] | |||
Schedule of Regulatory Assets | Below is a summary of the Gas Company's regulatory assets as of September 30, 2014 and 2013: | ||
2014 | 2013 | ||
Deferred regulatory costs | 2,653,778 | 2,537,893 | |
Deferred unrecovered gas costs | 110,372 | 387,288 | |
Total regulatory assets | 2,764,150 | 2,925,181 | |
Unrecovered gas costs. These 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. | |||
The Gas Company expects that regulatory assets other than deferred unrecovered gas costs will be fully recoverable from customers by the end of its next rate case expected during the year ended September 30, 2018. The following table summarizes regulatory costs at September 30, 2014 and 2013: | |||
2014 | 2013 | ||
Deferred rate case costs | 971,364 | 1,423,886 | |
Deferred rate case reconciliations | 1,682,414 | 1,114,007 | |
Total | 2,653,778 | 2,537,893 | |
Longterm_Debt_Tables
Long-term Debt (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Long-term Debt [Abstract] | ||||||||
Schedule of Long Term Debt | Long-term debt, including the current portion, was as follows at September 30, 2014 and 2013: | |||||||
2014 | 2013 | |||||||
Unsecured senior note - 7.9%, due serially with annual payments of $355,000 beginning on September 1, 2006, paid in full October 2013 | $- | $1,860,000 | ||||||
Note payable - variable rate with 4.5% floor with monthly | ||||||||
installments through May 2015 | 618,168 | 720,116 | ||||||
Note Payable - 5.79% with monthly installments through | ||||||||
Aug-18 | 593,857 | 727,847 | ||||||
Note Payable - variable rate with 4.25% floor, monthly | ||||||||
installments through November 2016 | 1,498,988 | 1,676,794 | ||||||
Note Payable - variable rate with 3.75% floor, monthly | ||||||||
installments through November 2017 | 2,067,499 | 2,279,408 | ||||||
Note Payable - 4.46% with monthly installments through | ||||||||
July 2017, then refinanced at new rate | 206,934 | 228,324 | ||||||
Note Payable - 4.46% with monthly installments through | ||||||||
July 2017, then refinanced at new rate | 206,931 | 228,324 | ||||||
Note Payable - 4.2% with monthly installments through | ||||||||
Nov-18 | 3,827,582 | 2,646,690 | ||||||
Note Payable - 4.51% with monthly installments through | ||||||||
Sep-18 | 2,406,486 | 2,955,246 | ||||||
Note Payable - 4.18% with monthly installments through | ||||||||
Nov-18 | 2,170,363 | 1,759,364 | ||||||
Note Payable - 4.39% with monthly installments | ||||||||
through November 2019 | 2,852,549 | - | ||||||
Note Payable - 4.49% with monthly installments | ||||||||
through July 2019 | 602,899 | - | ||||||
M&T Bank - vehicle loans bearing interest at rates ranging | ||||||||
from 4.37% to 5% | 216,630 | 205,990 | ||||||
Total long-term debt | $17,268,886 | $15,288,103 | ||||||
Less current installments | 2,697,140 | 1,827,322 | ||||||
Long-term debt less current installments | $14,571,746 | $13,460,781 | ||||||
Schedule of Long-Term Debt Maturities | The aggregate maturities of long-term debt for each of the five years subsequent to September 30, 2014 are as follows: | |||||||
2015 | $2,697,140 | |||||||
2016 | $2,828,572 | |||||||
2017 | $2,921,196 | |||||||
2018 | $2,979,871 | |||||||
2019 | $1,272,879 | |||||||
2020 + | $4,569,228 |
Investment_in_Joint_Ventures_T
Investment in Joint Ventures (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Investment in 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, 2014 and by the Gas Company, through its subsidiary the Appliance Corp. at September 30, 2013: | ||||||||
2014 | 2013 | ||||||||
Beginning balance in investment in joint ventures | $ | 587,678 | $ | 349,193 | |||||
Investment in joint ventures during year | 800,000 | 281,000 | |||||||
Income (loss) in joint ventures during year | (106,921 | ) | (42,515 | ) | |||||
Ending balance in joint ventures | $ | 1,280,757 | $ | 587,678 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Income Taxes [Abstract] | |||||||||
Schedule of Income Tax Expense | Income tax expense (benefit) for the years ended September 30 is as follows: | ||||||||
2014 | 2013 | ||||||||
Current | $ | 70,000 | $ | (50,557 | ) | ||||
Deferred | 1,240,705 | 925,901 | |||||||
Total | $ | 1,310,705 | $ | 875,344 | |||||
Schedule of Reconciliation of Income Tax | Actual income tax expense differs from the expected tax expense (computed by applying the federal | ||||||||
corporate tax rate of 34% and state tax rate of 7.1% to income before income tax expense) as follows: | |||||||||
2014 | 2013 | ||||||||
Expected federal tax expense | $ | 1,148,692 | $ | 904,644 | |||||
Regulatory adjustment | (80,054 | ) | (51,551 | ) | |||||
Dividends received deduction | (12,665 | ) | (16,536 | ) | |||||
State tax expense (net of federal) | 223,157 | 113,808 | |||||||
Other, net | 31,575 | (75,021 | ) | ||||||
Actual tax expense | $ | 1,310,705 | $ | 875,344 | |||||
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: | ||||||||
2014 | 2013 | ||||||||
Deferred income tax assets: | |||||||||
Unbilled revenue | $ | 15,510 | $ | - | |||||
Deferred compensation reserve | 684,897 | 571,926 | |||||||
Post-retirement benefit obligations | 551,579 | 413,963 | |||||||
Comprehensive income | 1,563,865 | 1,803,620 | |||||||
Inventories | 54,629 | - | |||||||
Deficiency of gas adjustment clause revenues billed | 121,316 | - | |||||||
NOL carryforwards | 3,146,186 | 5,590,448 | |||||||
Other | 407,984 | 1,279,979 | |||||||
Total deferred income tax assets | 6,545,966 | 9,659,936 | |||||||
Deferred income tax liabilities: | |||||||||
Property, plant and equipment, principally due to | |||||||||
differences in depreciation | 7,197,083 | 8,698,227 | |||||||
Pension benefit obligations | 238,880 | 863,056 | |||||||
Unbilled revenue | - | 42,635 | |||||||
Inventories | - | 48,381 | |||||||
Deferred rate expense and allocations | 438,469 | 528,458 | |||||||
Deficiency of gas adjustment clause revenues billed | - | 28,238 | |||||||
Prior period tax reconciliations | - | 29,045 | |||||||
Other | 111,166 | - | |||||||
Total deferred income tax liabilities | 7,985,598 | 10,238,040 | |||||||
Net deferred income tax (assets) liabilities | $ | 1,439,632 | $ | 578,104 |
Pension_and_Other_Postretireme1
Pension and Other Post-retirement Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Pension and Other Post-retirement Benefit Plans [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 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Change in benefit obligations: | |||||||||||||||||
Benefit obligation at beginning of year | $ | 17,099,633 | $ | 18,332,559 | $ | 1,118,819 | $ | 1,187,118 | |||||||||
Service cost | 306,274 | 395,916 | 16,096 | 17,285 | |||||||||||||
Interest cost | 806,489 | 715,062 | 52,682 | 46,223 | |||||||||||||
Participant contributions | - | - | 62,600 | 71,000 | |||||||||||||
Actuarial (gain) loss | 1,299,938 | (1,483,059 | ) | 136,781 | (68,807 | ) | |||||||||||
Benefits paid | (879,016 | ) | (860,845 | ) | (122,600 | ) | (134,000 | ) | |||||||||
Curtailments | - | - | - | - | |||||||||||||
Benefit obligation at end of year | 18,633,318 | 17,099,633 | 1,264,378 | 1,118,819 | |||||||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets at beginning of year | 12,224,984 | 11,498,019 | - | - | |||||||||||||
Actual return on plan assets | 1,164,288 | 715,932 | - | - | |||||||||||||
Company contributions | 1,164,898 | 877,480 | 60,000 | 63,000 | |||||||||||||
Participant contributions | - | - | 62,600 | 71,000 | |||||||||||||
Benefits paid | (879,016 | ) | (866,447 | ) | (122,600 | ) | (134,000 | ) | |||||||||
Fair value of plan assets at end of year | 13,675,154 | 12,224,984 | - | - | |||||||||||||
Funded status | (4,958,164 | ) | (4,874,649 | ) | (1,264,378 | ) | (1,118,819 | ) | |||||||||
Unrecognized net actuarial loss / (gain) | 3,572,106 | 2,950,422 | (79,013 | ) | (239,771 | ) | |||||||||||
Unrecognized prior service cost | 19,203 | 29,952 | 153,630 | 157,177 | |||||||||||||
(Accrued) prepaid benefit cost | (1,366,855 | ) | (1,894,275 | ) | (1,189,761 | ) | (1,201,413 | ) | |||||||||
Accrued contribution | - | - | - | - | |||||||||||||
Amounts recognized in the balance sheet consists of: | |||||||||||||||||
Prepaid (accrued) benefit liability | (4,958,164 | ) | (4,874,649 | ) | (1,264,378 | ) | (1,118,819 | ) | |||||||||
Amounts recognized in the Balance Sheets consist of: | |||||||||||||||||
(Accrued)/prepaid pension cost as of beginning of fiscal year | (1,894,275 | ) | (1,909,179 | ) | (1,201,413 | ) | (1,212,900 | ) | |||||||||
Pension (cost) income | (737,994 | ) | (637,478 | ) | (56,348 | ) | (53,513 | ) | |||||||||
Contributions | 1,164,898 | 877,480 | - | - | |||||||||||||
Change in receivable contribution | 100,516 | (225,098 | ) | - | - | ||||||||||||
Net benefits paid | - | - | 68,000 | 65,000 | |||||||||||||
Change in additional minimum liability | - | - | - | - | |||||||||||||
(Accrued)/prepaid pension cost as of end of fiscal year | (1,366,855 | ) | (1,894,275 | ) | (1,189,761 | ) | (1,201,413 | ) | |||||||||
Schedule of fair value of plan assets | Fair value of plan assets at end of year | ||||||||||||||||
Cash and equivalents | 333,449 | 168,627 | - | - | |||||||||||||
Government and agency issues | 2,084,850 | 2,056,301 | - | - | |||||||||||||
Corporate bonds | 3,523,711 | 3,193,521 | - | - | |||||||||||||
Fixed index funds | 609,911 | 421,120 | - | - | |||||||||||||
Fixed income | 1,095,214 | 373,592 | - | - | |||||||||||||
Equity securities | 6,028,019 | 6,011,823 | - | - | |||||||||||||
13,675,154 | 12,224,984 | - | - | ||||||||||||||
Schedule of amortization of unrecognized net (gain)/loss | Amortization of unrecognized net (gain)/loss for the Retirement Plan for fiscal year ending September 30, 2014: | ||||||||||||||||
1 | Projected benefit obligation as of September 30, 2014 | $ | 18,633,318 | ||||||||||||||
2 | Plan assets at September 30, 2014 | (13,675,154 | ) | ||||||||||||||
3 | Unrecognized (gain)/loss as of September 30, 2014 | 3,572,106 | |||||||||||||||
4 | Ten percent of greater of (1) or (2) | 1,863,332 | |||||||||||||||
5 | Unamortized (gain)/loss subject to amortization - (3) minus (4) | 1,708,774 | |||||||||||||||
6 | Active future service of active plan participants expected to receive benefits | 9.87 | |||||||||||||||
7 | Minimum amortization of unamortized net (gain)/loss - (5)/(6) | $ | 173,128 | ||||||||||||||
8 | Amortization of (gain)/loss for 2014-2015 | $ | 493,958 | ||||||||||||||
Amortization of unrecognized net (gain)/loss for the Post-Retirement Plan for the fiscal year ended September 30, 2014: | |||||||||||||||||
Unrecognized net (gain)/loss at October 1, 2014 subject to amortization | $ (79,013) | ||||||||||||||||
Amount to be amortized 2014 - 2015 | |||||||||||||||||
Amortization period | 10 years | ||||||||||||||||
Amortization for 2014 - 2015 ((gain)/loss divided by period) | $ (7,901) | ||||||||||||||||
Schedule of components of net periodic benefit cost | Pension Benefits | Post-retirement Benefits | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Components of net period benefit cost (benefit): | |||||||||||||||||
Service cost | 311,274 | 395,916 | 16,096 | 17,285 | |||||||||||||
Interest cost | 806,489 | 715,062 | 52,682 | 46,223 | |||||||||||||
Expected return on plan assets | -926,361 | -886,563 | - | - | |||||||||||||
Amortization of prior service | 10,749 | 14,228 | 3,547 | 3,547 | |||||||||||||
Amortization of unrecognized actuarial loss (gain) | 435,327 | 623,933 | -23,977 | -15,542 | |||||||||||||
Net periodic benefit cost (benefit) | 637,478 | 862,576 | 48,348 | 51,513 | |||||||||||||
Schedule of weighted average assumptions used to determine net period cost | The NYPSC has allowed the Gas Company to recover incremental cost associated with post-retirement benefits through rates on a current basis. Due to the timing differences between the Company's rate case filings and financial reporting period, a regulatory receivable of $147,168 and $188,112 has been recognized at September 30, 2014 and 2013, respectively. | ||||||||||||||||
Pension Benefits | Post-retirement Benefits | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average assumptions used to determine net | |||||||||||||||||
period cost at September 30: | |||||||||||||||||
Discount rate | 5.07 | % | 4.85 | % | 3.95 | % | 4.85 | % | |||||||||
Salary increases | 2 | % | 2 | % | N/A | N/A | |||||||||||
Expected return on assets | 7.5 | % | 7.5 | % | N/A | N/A | |||||||||||
Schedule of estimated pension plan payments | The estimated pension plan benefit payments are as follows: | ||||||||||||||||
2015 | $ | 1,008,000 | |||||||||||||||
2016 | $ | 1,078,000 | |||||||||||||||
2017 | $ | 1,117,000 | |||||||||||||||
2018 | $ | 1,133,000 | |||||||||||||||
2019 | $ | 1,196,000 | |||||||||||||||
2020+ | $ | 6,732,000 | |||||||||||||||
Stock_Options_Tables
Stock Options (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Stock Options [Abstract] | |||||||||||||||||
Schedule of Stock Option Activity | A summary of all stock option activity and information related to all options outstanding follows: | ||||||||||||||||
2013 | |||||||||||||||||
Stock Options | |||||||||||||||||
Number of | Weighted | Average | |||||||||||||||
Shares | Average | Remaining | |||||||||||||||
Remaining | Exercise | Contractual | |||||||||||||||
Options | Price | Term | |||||||||||||||
Outstanding at October 1, 2012 | 42,000 | $ | 11.81 | ||||||||||||||
Options granted | - | ||||||||||||||||
Options exercised during year ended September 30, 2013 | 17,700 | $ | 11.33 | ||||||||||||||
Options expired during year ended September 30, 2013 | 10,800 | ||||||||||||||||
Outstanding at September 30, 2013 | 13,500 | $ | 12.83 | 2.25 years | |||||||||||||
Exercisable at September 30, 2013 | 13,500 | $ | 12.83 | 2.25 years | |||||||||||||
2014 | |||||||||||||||||
Stock Options | |||||||||||||||||
Number of | Weighted | Average | |||||||||||||||
Shares | Average | Remaining | |||||||||||||||
Remaining | Exercise | Contractual | |||||||||||||||
Options | Price | Term | |||||||||||||||
Outstanding at October 1, 2013 | 13,500 | $ | 12.83 | ||||||||||||||
Options granted | - | ||||||||||||||||
Options exercised during year ended September 30, 2014 | - | ||||||||||||||||
Options expired during year ended September 30, 2014 | - | ||||||||||||||||
Outstanding at September 30, 2014 | 13,500 | $ | 12.83 | 1.25 years | |||||||||||||
Exercisable at September 30, 2014 | 13,500 | $ | 12.83 | 1.25 years |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||
12-May-11 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 11, 2012 | Nov. 12, 2013 | Sep. 30, 2012 | 28-May-09 | |
Significant Accounting Policies [Line Items] | ||||||||||||
Common stock, par value | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $5 | |||||
Common Stock | $24,302 | $22,626 | $24,302 | $22,626 | ||||||||
Additional Paid in Capital | 26,037,603 | 23,309,764 | 26,037,603 | 23,309,764 | ||||||||
Depreciation rate, annual percentage of depreciable property | 2.20% | 3.70% | ||||||||||
Impairment losses | ||||||||||||
Marketable securities, realized gains (losses) | 11,812 | 65,276 | ||||||||||
Allowance for uncollectible accounts | 42,540 | 297,846 | 42,540 | 297,846 | ||||||||
Accounts receivable | 1,991,809 | 1,727,562 | 1,991,809 | 1,727,562 | ||||||||
Dividends payable, amount per share | $0.14 | $0.14 | $0.13 | $0.13 | $0.13 | |||||||
Dividends payable | 327,819 | 327,819 | ||||||||||
Dividends payable, date declared | 20-Feb-14 | |||||||||||
Dividends payable, date of record | 30-Sep-14 | 30-Jun-14 | 31-Mar-14 | 3-Dec-13 | 30-Sep-13 | |||||||
Dividends payable, date to be paid | 15-Oct-14 | 15-Jul-14 | 15-Apr-14 | 15-Jan-14 | 15-Oct-13 | |||||||
State revenue taxes collected | 168,900 | 153,346 | ||||||||||
Compressor station, value | 11,000,000 | |||||||||||
Pipeline, value | 2,100,000 | |||||||||||
Purchase/repurchase price per agreement | 2 | |||||||||||
Total value of new plant | 13,100,000 | |||||||||||
Number of employees | 58 | 56 | 58 | 56 | ||||||||
Leatherstocking Gas Company, LLC and Leatherstocking Pipeline Company, LLC [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Ownership percentage of joint venture | 50.00% | 50.00% | ||||||||||
Restricted Stock [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Compensation expense, percent less than closing price of stock | 25.00% | |||||||||||
Restricted Stock [Member] | Each Director, Quarterly [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Shares issued for services, shares | 375 | |||||||||||
Restricted Stock [Member] | Six Directors [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Shares issued for services, shares | 9,000 | 13,500 | ||||||||||
Restricted Stock [Member] | Robert Johnston [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Shares issued for services, shares | 317 | |||||||||||
Restricted Stock [Member] | Each of Five Officers [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Shares issued for share-based compensation | 600 | |||||||||||
Restricted Stock [Member] | Each of Five Officers [Member] | Vesting Immediately [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Number of shares vested | 300 | |||||||||||
Restricted Stock [Member] | Each of Five Officers [Member] | Vesting December 12, 2013 [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Number of shares vested | 300 | |||||||||||
Restricted Stock [Member] | Carl T. Hayden [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Shares issued for services, shares | 411 | 600 | ||||||||||
Restricted Stock [Member] | Carl T. Hayden, Quarterly [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Shares issued for services, shares | 112 | 75 | ||||||||||
Customer in Chapter 11 [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Allowance for uncollectible accounts | 252,456 | 252,456 | ||||||||||
Accounts receivable | 252,456 | 252,456 | ||||||||||
Reclassification Adjustment [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Common Stock | -11,290,644 | -11,290,644 | ||||||||||
Additional Paid in Capital | 11,290,644 | 11,290,644 | ||||||||||
Corning Natural Gas [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Common stock, par value | $5 | |||||||||||
Gas Natural, Inc. and Richard M. Osborne [Member] | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Litigation settlement amount | 200,000 | |||||||||||
Litigation settlement after tax expense | $126,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Schedule of Fair Value of Assets and Liabilities) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $2,308,138 | $2,242,540 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,308,138 | 2,242,540 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,308,138 | 2,242,540 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $68,687,509 | $60,261,259 |
Utility [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | 19,727,468 | 17,774,138 |
Utility [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 35 years | |
Utility [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 52 years | |
Pipeline [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | 38,013,151 | 32,568,644 |
Useful life | 66 years | |
Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | 4,979,761 | 4,923,370 |
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 | 661,864 | 648,326 |
Useful life | 65 years | |
All Other and Corporate [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $5,305,265 | $4,346,781 |
All Other and Corporate [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 8 years | |
All Other and Corporate [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 25 years |
Marketable_Securites_Details
Marketable Securites (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Marketable Securities | ||
Cost Basis | $2,114,686 | $2,189,814 |
Unrealized Gain | 202,980 | 66,998 |
Unrealized Loss | 9,528 | 14,272 |
Fair Value | 2,308,138 | 2,242,540 |
Cash and equivalents [Member] | ||
Marketable Securities | ||
Cost Basis | 59,096 | 84,675 |
Unrealized Gain | ||
Unrealized Loss | ||
Fair Value | 59,096 | 84,675 |
MetLife Stock Value [Member] | ||
Marketable Securities | ||
Cost Basis | 51,185 | 51,185 |
Unrealized Gain | ||
Unrealized Loss | ||
Fair Value | 51,185 | 51,185 |
Government and agency bonds [Member] | ||
Marketable Securities | ||
Cost Basis | 301,673 | 301,716 |
Unrealized Gain | ||
Unrealized Loss | 4,029 | 7,935 |
Fair Value | 297,644 | 293,781 |
Corporate bonds [ Member] | ||
Marketable Securities | ||
Cost Basis | 303,428 | 242,471 |
Unrealized Gain | ||
Unrealized Loss | 5,050 | 6,337 |
Fair Value | 298,378 | 236,134 |
Mutual Funds [Member] | ||
Marketable Securities | ||
Cost Basis | 56,515 | 56,310 |
Unrealized Gain | 3,764 | |
Unrealized Loss | 449 | |
Fair Value | 56,066 | 60,074 |
Equity Securities [Member] | ||
Marketable Securities | ||
Cost Basis | 1,342,789 | 1,453,457 |
Unrealized Gain | 202,980 | 63,234 |
Unrealized Loss | ||
Fair Value | $1,545,769 | $1,516,691 |
Regulatory_Matters_Schedule_of
Regulatory Matters (Schedule of Regulatory Assets) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Regulatory Matters [Abstract] | ||
Deferred regulatory costs | $2,653,778 | $2,537,893 |
Deferred unrecovered gas costs | 110,372 | 387,288 |
Total regulatory assets | $2,764,150 | $2,925,181 |
Regulatory_Matters_Schedule_of1
Regulatory Matters (Schedule of Regulatory Costs) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Regulatory Matters [Abstract] | ||
Deferred rate case costs | $971,364 | $1,423,886 |
Deferred rate case reconciliations | 1,682,414 | 1,114,007 |
Deferred regulatory costs | $2,653,778 | $2,537,893 |
Longterm_Debt_Narrative_Detail
Long-term Debt (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||||
Sep. 30, 2014 | Aug. 13, 2012 | Oct. 31, 2011 | Oct. 04, 2013 | Sep. 30, 2013 | Mar. 04, 2010 | Oct. 16, 2008 | Sep. 03, 2013 | Nov. 30, 2013 | |
Debt Instrument [Line Items] | |||||||||
Stock options exercised, shares | 13,500 | 13,500 | |||||||
Stock options exercised, price per share | $12.83 | $12.83 | |||||||
Debt outstanding | $17,268,886 | $15,288,103 | |||||||
M&T Bank Loans Payable [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 6,000,000 | ||||||||
Issuance date | 7-May-08 | ||||||||
Mortgage loan retired | 3,100,000 | ||||||||
Unsecured senior note retired | 1,500,000 | ||||||||
Stated interest rate | 6.50% | 5.96% | |||||||
Community Bank Notes Payable [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 1,050,000 | ||||||||
Issuance date | 7-May-10 | ||||||||
Maturity date | 31-May-15 | ||||||||
Stated interest rate | 6.25% | ||||||||
Equity contribution required to enter into note | 350,000 | ||||||||
Stock options exercised, shares | 24,000 | ||||||||
Stock options exercised, price per share | $15 | ||||||||
Stock options exercised, total amount | 360,000 | ||||||||
Tangible net worth requirement | 11,000,000 | ||||||||
Debt to tangible net worth ratio that must be maintained | 300.00% | ||||||||
Debt service coverage ratio that must be retained | 110.00% | ||||||||
Interest rate, spread on basis | 2.75% | ||||||||
Interest rate, floor | 4.50% | ||||||||
Interest rate, ceiling | 6.25% | ||||||||
Effective interest rate | 4.50% | ||||||||
Debt outstanding | 618,168 | 720,116 | |||||||
Five Star Bank Notes Payable [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 750,000 | ||||||||
Issuance date | 1-Sep-10 | ||||||||
Maturity date | 1-Aug-18 | ||||||||
Stated interest rate | 4.25% | ||||||||
Interest rate, spread on basis | 3.75% | 1.00% | |||||||
Effective interest rate | 5.79% | ||||||||
Debt outstanding | 593,857 | 727,847 | |||||||
Multiple Disbursement Term Note M&T Bank 1 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 1,865,000 | ||||||||
Issuance date | 27-Oct-10 | ||||||||
Stated interest rate | 5.76% | ||||||||
Multiple Disbursement Term Note M&T Bank 2 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 2,000,000 | ||||||||
Issuance date | 14-Jul-11 | ||||||||
Maturity date | 30-Nov-16 | ||||||||
Interest rate, spread on basis | 3.25% | 3.50% | |||||||
Effective interest rate | 4.25% | 4.25% | |||||||
Debt outstanding | 1,498,988 | 1,676,794 | |||||||
Term Loan Agreement Community Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 2,450,000 | ||||||||
Issuance date | 27-Jul-12 | ||||||||
Maturity date | 30-Nov-17 | ||||||||
Interest rate, spread on basis | 3.00% | ||||||||
Effective interest rate | 3.75% | ||||||||
Debt outstanding | 2,067,499 | 2,279,408 | |||||||
Five Star Bank Promissory Note 1 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 250,000 | ||||||||
Issuance date | 31-Aug-12 | ||||||||
Maturity date | 31-Jul-17 | ||||||||
Stated interest rate | 4.46% | ||||||||
Debt outstanding | 206,934 | 228,324 | |||||||
Five Star Bank Promissory Note 2 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 250,000 | ||||||||
Issuance date | 31-Aug-12 | ||||||||
Maturity date | 31-Jul-17 | ||||||||
Stated interest rate | 4.46% | ||||||||
Debt outstanding | 206,931 | 228,324 | |||||||
M&T Promissory Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 4,000,000 | ||||||||
Face amount of existing debt refinanced | 7,800,000 | ||||||||
M&T Promissory Note 1 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 4,800,000 | ||||||||
Issuance date | 3-Sep-13 | ||||||||
Maturity date | 30-Nov-18 | ||||||||
Interest rate, spread on basis | 3.25% | ||||||||
Effective interest rate | 4.20% | ||||||||
Debt outstanding | 3,827,582 | 2,646,690 | |||||||
Periodic payment amount, interest and principal | 85,247 | ||||||||
M&T Promissory Note 2 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 3,000,000 | ||||||||
Issuance date | 3-Sep-13 | ||||||||
Maturity date | 30-Sep-18 | ||||||||
Stated interest rate | 4.51% | ||||||||
Debt outstanding | 2,406,486 | 2,955,246 | |||||||
Periodic payment amount, interest and principal | 56,028 | ||||||||
Mortgage securing loan | 3,000,000 | ||||||||
Multiple Disbursement Term Note M&T Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 4,000,000 | ||||||||
Issuance date | 3-Sep-13 | ||||||||
Maturity date | 3-Dec-18 | ||||||||
Effective interest rate | 4.18% | ||||||||
Debt outstanding | 2,170,363 | 1,759,364 | 2,329,223 | ||||||
Periodic payment amount, interest and principal | 23,438 | ||||||||
Unsecured Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 4,700,000 | ||||||||
Issuance date | 1-Sep-97 | ||||||||
Stated interest rate | 7.90% | ||||||||
Debt outstanding | 1,860,000 | ||||||||
Periodic payment amount, interest and principal | 355,000 | ||||||||
Debt repayments | 1,966,469 | ||||||||
Multiple Disbursement Term Note and Credit Agreement M&T Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 3,796,000 | ||||||||
Issuance date | 3-Jul-14 | ||||||||
Maturity date | 30-Nov-19 | ||||||||
Interest rate, spread on basis | 2.75% | ||||||||
Effective interest rate | 4.39% | ||||||||
Debt outstanding | 2,852,549 | ||||||||
Term Note and Credit Agreement M&T Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 615,000 | ||||||||
Issuance date | 3-Jul-14 | ||||||||
Maturity date | 31-Jul-19 | ||||||||
Stated interest rate | 4.49% | ||||||||
Debt outstanding | 602,899 | ||||||||
Periodic payment amount, interest and principal | 6,371 | ||||||||
M&T Bank - Vehicle Loans [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate, floor | 4.37% | ||||||||
Interest rate, ceiling | 5.00% | ||||||||
Debt outstanding | $216,630 | $205,990 |
Longterm_Debt_Schedule_of_Long
Long-term Debt (Schedule of Long-term Debt) (Details) (USD $) | Sep. 30, 2014 | Nov. 30, 2013 | Sep. 30, 2013 |
Debt Instrument [Line Items] | |||
Long term debt | $17,268,886 | $15,288,103 | |
Less current installments | 2,697,140 | 1,827,322 | |
Long-term debt less current installments | 14,571,746 | 13,460,781 | |
Unsecured Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 1,860,000 | ||
Community Bank Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 618,168 | 720,116 | |
Five Star Bank Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 593,857 | 727,847 | |
Multiple Disbursement Term Note M&T Bank 2 [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 1,498,988 | 1,676,794 | |
Term Loan Agreement Community Bank [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 2,067,499 | 2,279,408 | |
Five Star Bank Promissory Note 1 [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 206,934 | 228,324 | |
Five Star Bank Promissory Note 2 [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 206,931 | 228,324 | |
M&T Promissory Note 1 [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 3,827,582 | 2,646,690 | |
M&T Promissory Note 2 [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 2,406,486 | 2,955,246 | |
Multiple Disbursement Term Note M&T Bank [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 2,170,363 | 2,329,223 | 1,759,364 |
Multiple Disbursement Term Note and Credit Agreement M&T Bank [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 2,852,549 | ||
Term Note and Credit Agreement M&T Bank [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 602,899 | ||
M&T Bank - Vehicle Loans [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | $216,630 | $205,990 |
Longterm_Debt_Schedule_of_Aggr
Long-term Debt (Schedule of Aggregates of Long-term Debt) (Details) (USD $) | Sep. 30, 2014 |
Aggregate maturity of debt in fiscal year: | |
2015 | $2,697,140 |
2016 | 2,828,572 |
2017 | 2,921,196 |
2018 | 2,979,871 |
2019 | 1,272,879 |
2020 + | $4,569,228 |
Lines_of_Credit_Details
Lines of Credit (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Community Bank line of credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing capacity | $8,500,000 | |
Refinancing date | 25-Mar-14 | |
Expiration date | 1-Apr-15 | |
Line of credit outstanding | 4,614,541 | 4,407,305 |
Line of credit, maximum amount outstanding | 7,140,511 | 5,652,671 |
Interest rate, spread on basis | 2.80% | |
Debt to tangible net worth ratio that must be maintained | 250.00% | |
Debt service coverage ratio that must be retained | 110.00% | |
Effective interest rate | 2.96% | |
Weighted average interest rate during period | 3.17% | 3.25% |
Old line of credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing capacity | $8,000,000 | |
Expiration date | 1-Apr-14 |
Stockholders_Equity_Details
Stockholders Equity (Details) (USD $) | 12 Months Ended | 72 Months Ended | 0 Months Ended | |||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2009 | Sep. 30, 2014 | Apr. 16, 2014 | Apr. 16, 2014 | Apr. 09, 2014 | Jan. 10, 2014 | Nov. 12, 2013 | 28-May-09 | Apr. 06, 2014 | |
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Shares authorized under dividend reinvestment program | 129,000 | 100,000 | ||||||||||||
Par value of common stock | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $5 | ||||||||
Shares issued under dividend reinvestment program | 7,219 | 7,433 | 5,689 | 3,976 | 2,319 | 761 | 27,397 | |||||||
Anita G. Zucker [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Shares held | 214,451 | |||||||||||||
Private Placement [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Shares issued in private placement | 75,000 | 150,000 | ||||||||||||
Price per share | $16.40 | $16.40 | ||||||||||||
Proceeds from private placement | $2,460,000 | |||||||||||||
Private Placement [Member] | Zucker Trust [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Shares issued in private placement | 75,000 | |||||||||||||
Private Placement [Member] | QCI Asset Management LLC and Four Advisees [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Shares issued in private placement | 70,000 | |||||||||||||
Private Placement [Member] | Robert B. Johnston [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Shares issued in private placement | 5,000 |
Investment_in_Joint_Ventures_N
Investment in Joint Ventures (Narrative) (Details) (USD $) | 12 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Aug. 28, 2014 | Jul. 30, 2013 | Jul. 25, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||||
Combined assets | $62,522,061 | $55,018,600 | |||
Combined liabilties | 10,095,485 | 7,673,305 | |||
Combined net losses | 2,067,801 | 1,785,374 | |||
Leatherstocking Joint Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage of joint venture | 50.00% | ||||
Agreement amount | 4,000,000 | 1,800,000 | 1,500,000 | ||
Amount drawn on agreement | 1,500,000 | ||||
Investment amount required to draw remaining agreement amount | 1,000,000 | ||||
Remaining agreement amount | 2,500,000 | ||||
Combined assets | 6,700,000 | ||||
Combined liabilties | 4,200,000 | ||||
Combined net losses | ($213,849) |
Investment_in_Joint_Ventures_S
Investment in Joint Ventures (Schedule of Investment Activity) (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Investment in Joint Ventures [Abstract] | ||
Beginning balance in investment in joint ventures | $587,678 | $349,193 |
Investment in joint ventures during year | 800,000 | 281,000 |
Income (loss) in joint ventures during year | -106,921 | -42,515 |
Ending balance in joint ventures | $1,280,757 | $587,678 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Minimum [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carry forwards, expiration | 30-Sep-25 |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carry forwards | 8 |
New York State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carry forwards | 5.8 |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred and Current Income Tax Expense) (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes [Abstract] | ||
Current | $70,000 | ($50,557) |
Deferred | 1,240,705 | 925,901 |
Total actual tax expense | $1,310,705 | $875,344 |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income Tax Reconciliation) (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes [Abstract] | ||
Expected federal tax expense | $1,148,692 | $904,644 |
Regulatory adjustment | -80,054 | -51,551 |
Dividends received deduction | -12,665 | -16,536 |
State tax expense (net of federal) | 223,157 | 113,808 |
Other, net | 31,575 | -75,021 |
Total actual tax expense | $1,310,705 | $875,344 |
Federal corporate tax rate | 34.00% | |
State tax rate | 7.10% |
Income_Taxes_Schedule_of_Incom1
Income Taxes (Schedule of Income Tax Assets and Liabilities) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Deferred income tax assets: | ||
Unbilled revenue | $15,510 | |
Deferred compensation reserve | 684,897 | 571,926 |
Post-retirement benefit obligations | 551,579 | 413,963 |
Comprehensive income | 1,563,865 | 1,803,620 |
Inventories | 54,629 | |
Deficiency of gas adjustment clause revenues billed | 121,316 | |
NOL carryforwards | 3,146,186 | 5,590,448 |
Other | 407,984 | 1,279,979 |
Total deferred income tax assets | 6,545,966 | 9,659,936 |
Deferred income tax liabilities: | ||
Property, plant and equipment, principally due to differences in depreciation | 7,197,083 | 8,698,227 |
Pension benefit obligations | 238,880 | 863,056 |
Unbilled revenue | 42,635 | |
Inventories | 48,381 | |
Deferred rate expense and allocations | 438,469 | 528,458 |
Deficiency of gas adjustment clause revenues billed | 28,238 | |
Prior period tax reconciliations | 29,045 | |
Other | 111,166 | |
Total deferred income tax liabilities | 7,985,598 | 10,238,040 |
Net deferred income tax (assets) liabilities | $1,439,632 | $578,104 |
Pension_and_Other_Postretireme2
Pension and Other Post-retirement Benefit Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation | $1,666,415 | $1,545,747 | |
Funded status | 6,200,000 | 6,000,000 | |
Regulatory assets | 2,764,150 | 2,925,181 | |
Pension expense | 970,000 | ||
Amounts not included in prepaid pension cost | 227,024 | 432,766 | |
Regulatory receiveable | 147,168 | 188,112 | |
Annual rate increase of health care costs assumed | 6.00% | ||
Percentage change in health care costs (positive or negative) | 1.00% | ||
Change in service and interest costs with increase in health care costs | 4.40% | ||
Change in accumulated benefit obligations with increase in health care costs | 5.60% | ||
Change in service and interest costs with decrease in health care costs | -3.70% | ||
Change in accumulated benefit obligations with decrease in health care costs | -4.70% | ||
Pension and Other Postretirement Plans Costs [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Regulatory assets | 131,000 | 383,000 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 13,675,154 | 12,224,984 | 11,498,019 |
Increase in pension benefit obligation due to change in Mortality Table assumption | 1,394,000 | ||
Funded status | 4,958,164 | 4,874,649 | |
Decrease in pension benefit obligation due to change in Mortality Table assumption and discount rate | -759,000 | ||
Expected contribution in 2015 | 1,000,000 | ||
Company contributions | 1,164,898 | 877,480 | |
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 | 1,264,378 | 1,118,819 | |
Company contributions | 60,000 | 63,000 | |
Rabbi Trust [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 2,256,953 | 2,191,355 | |
Stock included in deferred compensation plan | 51,185 | 51,185 | |
Increase in pension benefit obligation due to change in Mortality Table assumption | 131,200 | ||
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 matching contribution percentage | 50.00% | ||
Company contributions | $87,712 | $83,938 |
Pension_and_Other_Postretireme3
Pension and Other Post-retirement Benefit Plans (Schedule of Pension and Post-retirement Plan Benefits Reconciliation) (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Change in plan assets: | ||
Funded status | ($6,200,000) | ($6,000,000) |
Pension Benefits [Member] | ||
Change in benefit obligation: | ||
Benefit obligation at beginning of year | 17,099,633 | 18,332,559 |
Service cost | 306,274 | 395,916 |
Interest cost | 806,489 | 715,062 |
Participant contributions | ||
Actuarial (gain) loss | 1,299,938 | -1,483,059 |
Benefits paid | -879,016 | -860,845 |
Curtailments | ||
Benefit obligations at end of year | 18,633,318 | 17,099,633 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 12,224,984 | 11,498,019 |
Actual return on plan assets | 1,164,288 | 715,932 |
Company contributions | 1,164,898 | 877,480 |
Participant contributions | ||
Benefits paid | 879,016 | 860,845 |
Fair value of plan assets at end of year | 13,675,154 | 12,224,984 |
Funded status | -4,958,164 | -4,874,649 |
Unrecognized net actuarial loss/ (gain) | 3,572,106 | 2,950,422 |
Unrecognized prior service cost | 19,203 | 29,952 |
(Accrued) prepaid benefit cost | -1,366,855 | -1,894,275 |
Accrued contribution | ||
Amounts recognized in the balance sheet consists of: | ||
Prepaid (accrued) benefit liability | -4,958,164 | -4,874,649 |
(Accrued)/prepaid pension cost as of beginning of fiscal year | -1,894,275 | -1,909,179 |
Pension (cost) income | -737,994 | -637,478 |
Contributions | 1,164,898 | 877,480 |
Change in receivable contribution | 100,516 | -225,098 |
Net benefits paid | ||
Change in additional minimum liability | ||
(Accrued)/prepaid pension cost as of end of fiscal year | -1,366,855 | -1,894,275 |
Post-retirement Benefits [Member] | ||
Change in benefit obligation: | ||
Benefit obligation at beginning of year | 1,118,819 | 1,187,118 |
Service cost | 16,096 | 17,285 |
Interest cost | 52,682 | 46,223 |
Participant contributions | 62,600 | 71,000 |
Actuarial (gain) loss | 136,781 | -68,807 |
Benefits paid | -122,600 | -134,000 |
Curtailments | ||
Benefit obligations at end of year | 1,264,378 | 1,118,819 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | ||
Actual return on plan assets | ||
Company contributions | 60,000 | 63,000 |
Participant contributions | 62,600 | 71,000 |
Benefits paid | 122,600 | 134,000 |
Fair value of plan assets at end of year | ||
Funded status | -1,264,378 | -1,118,819 |
Unrecognized net actuarial loss/ (gain) | -79,013 | -239,771 |
Unrecognized prior service cost | 153,630 | 157,177 |
(Accrued) prepaid benefit cost | -1,189,761 | -1,201,413 |
Accrued contribution | ||
Amounts recognized in the balance sheet consists of: | ||
Prepaid (accrued) benefit liability | -1,264,378 | -1,118,819 |
(Accrued)/prepaid pension cost as of beginning of fiscal year | -1,201,413 | -1,212,900 |
Pension (cost) income | -56,348 | -53,513 |
Contributions | ||
Change in receivable contribution | ||
Net benefits paid | 68,000 | 65,000 |
Change in additional minimum liability | ||
(Accrued)/prepaid pension cost as of end of fiscal year | ($1,189,761) | ($1,201,413) |
Pension_and_Other_Postretireme4
Pension and Other Post-retirement Benefit Plans (Schedule of Fair Value of Plan Assets) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | $13,675,154 | $12,224,984 | $11,498,019 |
Pension Benefits [Member] | Cash and equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 333,449 | 168,627 | |
Pension Benefits [Member] | Government and agency issues [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 2,084,850 | 2,056,301 | |
Pension Benefits [Member] | Corporate bonds [ Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 3,523,711 | 3,193,521 | |
Pension Benefits [Member] | Fixed index funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 609,911 | 421,120 | |
Pension Benefits [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 1,095,214 | 373,592 | |
Pension Benefits [Member] | Equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 6,028,019 | 6,011,823 | |
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 equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | |||
Post-retirement Benefits [Member] | Government and agency issues [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 |
Pension_and_Other_Postretireme5
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, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Pension Benefits [Member] | |||
Amortization of unrecognized net (gain)/loss for fiscal year ending September 30, 2014: | |||
Projected benefit obligation as of September 30, 2014 | $18,633,318 | $17,099,633 | $18,332,559 |
Plan assets at September 30, 2014 | -13,675,154 | -12,224,984 | -11,498,019 |
Unrecognized (gain)/loss as of September 30, 2014 | 3,572,106 | 2,950,422 | |
Ten percent of greater of (1) or (2) | 1,863,332 | ||
Unamortized (gain)/loss subject to amortization - (3) minus (4) | 1,708,774 | ||
Active future service of active plan participants expected to receive benefits | 9 years 10 months 13 days | ||
Minimum amortization of unamortized net (gain)/loss - (5)/(6) | 173,128 | ||
Amortization of (gain)/loss for 2014-2015 | 493,958 | ||
Post-retirement Benefits [Member] | |||
Amortization of unrecognized net (gain)/loss for fiscal year ending September 30, 2014: | |||
Projected benefit obligation as of September 30, 2014 | 1,264,378 | 1,118,819 | 1,187,118 |
Plan assets at September 30, 2014 | |||
Unrecognized (gain)/loss as of September 30, 2014 | -79,013 | -239,771 | |
Amortization period | 10 years | ||
Amortization of (gain)/loss for 2014-2015 | ($7,901) |
Pension_and_Other_Postretireme6
Pension and Other Post-retirement Benefit Plans (Schedule of Net Period Benefit Cost (Benefit)) (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Pension Benefits [Member] | ||
Components of net period benefit cost (benefit): | ||
Service cost | $306,274 | $395,916 |
Interest cost | 806,489 | 715,062 |
Expected return on plan assets | -926,361 | -886,563 |
Amortization of prior service | 10,749 | 14,228 |
Amortization of unrecognized actuarial loss (gain) | 435,327 | 623,933 |
Net periodic benefit cost (benefit) | 637,478 | 862,576 |
Post-retirement Benefits [Member] | ||
Components of net period benefit cost (benefit): | ||
Service cost | 16,096 | 17,285 |
Interest cost | 52,682 | 46,223 |
Expected return on plan assets | ||
Amortization of prior service | 3,547 | 3,547 |
Amortization of unrecognized actuarial loss (gain) | -23,977 | -15,542 |
Net periodic benefit cost (benefit) | $48,348 | $51,513 |
Pension_and_Other_Postretireme7
Pension and Other Post-retirement Benefit Plans (Schedule of Weighted Average Assumptions) (Details) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Pension Benefits [Member] | ||
Weighted average assumptions used to determine period cost at September 30: | ||
Discount rate | 5.07% | 4.85% |
Salary increases | 2.00% | 2.00% |
Expected return on assets | 7.50% | 7.50% |
Post-retirement Benefits [Member] | ||
Weighted average assumptions used to determine period cost at September 30: | ||
Discount rate | 3.95% | 4.85% |
Salary increases | ||
Expected return on assets |
Pension_and_Other_Postretireme8
Pension and Other Post-retirement Benefit Plans (Schedule of Estimated Plan Benefit Payments) (Details) (USD $) | Sep. 30, 2014 |
Estimated pension plan benefit payments in fiscal year; | |
2015 | $1,008,000 |
2016 | 1,078,000 |
2017 | 1,117,000 |
2018 | 1,133,000 |
2019 | 1,196,000 |
2020+ | $6,732,000 |
Stock_Options_Details
Stock Options (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Number of Shares Remaining Options | ||
Outstanding | 13,500 | 42,000 |
Options granted | ||
Options exercised | 17,700 | |
Options expired | 10,800 | |
Outstanding | 13,500 | 13,500 |
Exercisable | 13,500 | 13,500 |
Weighted Average Exercise Price | ||
Outstanding | $12.83 | $11.81 |
Options exercised | $11.33 | |
Outstanding | $12.83 | $12.83 |
Exercisable | $12.83 | $12.83 |
Average Remaining Contractual Term | ||
Outstanding | 1 year 3 months | 2 years 3 months |
Exercisable | 1 year 3 months | 2 years 3 months |
Commitments_Details
Commitments (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Sep. 30, 2014 | Jan. 13, 2012 | Sep. 30, 2013 | Aug. 28, 2014 | Jul. 30, 2013 | Jul. 25, 2013 | |
Customers | ||||||
Dekatherms | ||||||
Commitments [Line Items] | ||||||
Storage Capacity Maintained | 736,000 | |||||
Asset Management agreement | $2,300,000 | |||||
Customers | 14,800 | |||||
Letter of Credit [Member] | ||||||
Commitments [Line Items] | ||||||
Initiation date | 25-Apr-11 | |||||
Borrowing amount | 324,000 | |||||
Annual fee, percentage | 1.00% | |||||
Expiration date | 30-Apr-15 | |||||
Settlement and Release Agreement, Thomas K. Barry [Member] | ||||||
Commitments [Line Items] | ||||||
Litigation Settlement, Amount | 285,000 | |||||
Release agreement for the settlement of two lawsuits, annual payment | 40,000 | |||||
Release agreement for the settlement of two lawsuits, interest compounded annually | 4.00% | |||||
Release agreement for the settlement of two lawsuits, payment to replace life insurance policy | 15,000 | |||||
Release agreement for the settlement of two lawsuits, maximum number of payments to replace life insurance policy | 20 | |||||
Present value of expected future obligation | 555,104 | 517,973 | ||||
Leatherstocking Joint Venture [Member] | ||||||
Commitments [Line Items] | ||||||
Borrowing amount | 4,000,000 | 1,800,000 | 1,500,000 | |||
Investment amount required to draw remaining agreement amount | $1,000,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Director [Member], Scenario, Plan [Member], USD $) | 12 Months Ended |
Sep. 30, 2014 | |
Director [Member] | Scenario, Plan [Member] | |
Related Party Transaction [Line Items] | |
Legal services | $250,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 1 Months Ended | |||
Nov. 26, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 12, 2014 | |
Subsequent Event [Line Items] | ||||
Deferred rate case reconciliations | $1,682,414 | $1,114,007 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Deferred rate case reconciliations | 809,299 | |||
Subsequent Event [Member] | Scenario, Plan [Member] | ||||
Subsequent Event [Line Items] | ||||
Capital expenditures to settle dispute | $250,000 |