Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 01, 2015 | Mar. 31, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Corning Natural Gas Holding Corp | ||
Entity Central Index Key | 1,582,244 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
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 | $ 33,880,420 | ||
Entity Common Stock, Shares Outstanding | 2,463,574 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Trading Symbol | CNIG |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Plant: | ||
Utility property, plant and equipment | $ 74,297,174 | $ 68,687,509 |
Less: accumulated depreciation | (20,984,031) | (19,578,820) |
Total plant utility and non-utility, net | 53,313,143 | 49,108,689 |
Investments: | ||
Marketable securities available-for-sale at fair value | 2,153,785 | 2,308,138 |
Investment in joint ventures | 2,293,252 | 1,280,757 |
Total investments | 4,447,037 | 3,588,895 |
Current assets: | ||
Cash and cash equivalents | 75,289 | 108,086 |
Customer accounts receivable, (net of allowance for uncollectible accounts of $44,377 and $42,540), respectively | 1,585,845 | 1,788,447 |
Related party receivables | 525,920 | 446,154 |
Gas stored underground, at average cost | 1,182,955 | 2,291,665 |
Materials and supplies inventory | 1,295,304 | 937,459 |
Prepaid expenses | 1,203,355 | 982,198 |
Total current assets | 5,868,668 | 6,554,009 |
Regulatory assets: | ||
Unrecovered gas costs | 37,191 | 110,372 |
Deferred regulatory costs | 2,751,339 | $ 2,653,778 |
Deferred pension | 4,517,673 | |
Unamortized debt issuance cost (net of accumulated amortization of $675,326 and $595,637), respectively | 287,858 | $ 313,292 |
Other | 192,869 | 193,026 |
Total deferred debits and other assets | 7,786,930 | 3,270,468 |
Total assets | 71,415,778 | 62,522,061 |
Liabilities and capitalization: | ||
Long-term debt, less current installments | 12,554,397 | 14,571,746 |
Current liabilities: | ||
Current portion of long-term debt | 2,923,133 | 2,697,140 |
Borrowings under lines-of-credit and short-term debt | 9,003,599 | 4,614,541 |
Accounts payable | 1,721,720 | 1,903,594 |
Accrued expenses | 418,221 | 534,059 |
Customer deposits and accrued interest | 1,357,452 | 976,734 |
Dividends declared | 354,924 | 327,819 |
Deferred income taxes | 385,973 | 215,757 |
Total current liabilities | 16,165,022 | 11,269,644 |
Deferred credits and other: | ||
Deferred income taxes | 3,207,741 | 1,223,875 |
Deferred compensation | 1,492,488 | 1,666,415 |
Pension costs and post-retirement benefits | 6,857,399 | 6,091,540 |
Other | 1,410,299 | 1,113,655 |
Total deferred credits and other liabilities | $ 12,967,927 | $ 10,095,485 |
Commitments and contingencies (see Note 13) | ||
Common stockholders' equity: | ||
Common stock (common stock $.01 par value per share. Authorized 3,500,000 shares; issued and outstanding 2,449,647 shares at September 30, 2015 and 2,430,184 at September 30, 2014) | $ 24,496 | $ 24,302 |
Other paid-in capital | 26,362,369 | 26,037,603 |
Retained earnings | 3,312,638 | 2,921,478 |
Accumulated other comprehensive income (loss) | 28,929 | (2,398,197) |
Total common stockholders' equity | 29,728,432 | 26,585,186 |
Total liabilities and capitalization | $ 71,415,778 | $ 62,522,061 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Allowance for uncollectible accounts | $ 44,377 | $ 42,540 |
Net Regulatory Assets [Abstract] | ||
Accumulated amortization of debt issuance cost | $ 675,326 | $ 595,637 |
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 | 2,449,647 | 2,430,184 |
Common stock, shares outstanding | 2,449,647 | 2,430,184 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Utility operating revenues | $ 22,503,411 | $ 25,464,582 |
Natural gas purchased | 7,107,533 | 9,749,281 |
Gross margin | 15,395,878 | 15,715,301 |
Cost and expense | ||
Operating and maintenance expense | 7,806,524 | 7,564,842 |
Taxes other than income taxes | 1,981,439 | 1,944,352 |
Depreciation | 1,620,700 | 1,538,377 |
Other deductions, net | 284,331 | 479,449 |
Total costs and expenses | 11,692,994 | 11,527,020 |
Utility operating income | 3,702,884 | 4,188,281 |
Other income and (expense) | ||
Interest expense | (917,818) | (841,177) |
Other expense | (57,944) | (27,340) |
Other income | 59,992 | 51,750 |
Investment income | 133,551 | 65,361 |
(Loss) from joint ventures | (117,505) | (106,921) |
Rental income | 48,552 | 48,552 |
Net income from utility operations, before income taxes | 2,851,712 | 3,378,506 |
Income taxes | ||
Income tax (expense), current | (78,000) | (70,000) |
Income tax (expense), deferred | (991,631) | (1,240,705) |
Total income taxes | (1,069,631) | (1,310,705) |
Net income | 1,782,081 | 2,067,801 |
Other comprehensive income (loss) | ||
Minimum pension liability, net of tax of $155,163 and $332,859, respectively | (222,363) | $ (450,465) |
Accumulated OCI reduction for regulatory asset established, net of tax of $807,192 and $0, respectively | 2,748,238 | |
Net unrealized gain (loss) on securities available for sale net of tax of $45,587 and $49,956, respectively | (98,749) | $ 90,771 |
Total other comprehensive income | 2,427,126 | (359,694) |
Total comprehensive income | $ 4,209,207 | $ 1,708,107 |
Weighted average earnings per share- | ||
basic: | $ 0.73 | $ 0.88 |
diluted: | $ 0.73 | $ 0.88 |
Average shares outstanding - basic | 2,440,932 | 2,342,034 |
Average shares outstanding - diluted | 2,444,934 | 2,346,786 |
Consolidated Statements of Inc5
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Income taxes for minimum pension liability | $ 155,163 | $ 332,859 |
Income taxes for establishment of regulatory asset | 807,192 | 0 |
Income taxes for change in unrealized gain on securities available for sale | $ 45,587 | $ 49,956 |
Consolidated Statements of Stoc
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, 2013 | $ 23,391,931 | $ 22,626 | $ 23,309,764 | $ 2,098,044 | $ (2,038,503) |
Balances, shares at Sep. 30, 2013 | 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) | |||
Accumulated OCI reduction for regulatory asset established, net of income taxes | |||||
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 | |||
Issuance of common stock | $ 324,960 | $ 194 | $ 324,766 | ||
Issuance of common stock, shares | 19,463 | ||||
Dividends declared | (1,390,921) | $ (1,390,921) | |||
Comprehensive income: | |||||
Change in unrealized gain on securities available for sale, net of income taxes | (98,749) | $ (98,749) | |||
Minimum pension liability, net of income taxes | (222,363) | (222,363) | |||
Accumulated OCI reduction for regulatory asset established, net of income taxes | 2,748,238 | $ 2,748,238 | |||
Net income | 1,782,081 | $ 1,782,081 | |||
Total comprehensive income | 4,209,207 | ||||
Balances at Sep. 30, 2015 | $ 29,728,432 | $ 24,496 | $ 26,362,369 | $ 3,312,638 | $ 28,929 |
Balances, shares at Sep. 30, 2015 | 2,449,647 | 2,449,647 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 1,782,081 | $ 2,067,801 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 1,620,700 | 1,538,377 |
Amortization of debt issuance cost | 26,416 | 122,952 |
Non-cash pension expenses | 965,938 | 929,321 |
Regulatory asset amortizations | 219,042 | 274,135 |
Stock issued for services | 162,414 | 138,094 |
(Gain) on sale of marketable securities | (88,028) | (11,812) |
Deferred income taxes | 991,631 | 1,240,705 |
Bad debt expense | 159,734 | 233,729 |
Loss on joint ventures | 117,505 | 106,921 |
(Increase) decrease in: | ||
Accounts receivable | 42,868 | (497,976) |
Gas stored underground | 1,108,710 | (37,202) |
Materials and supplies inventories | (357,845) | 267,559 |
Prepaid expenses | (221,157) | (133,497) |
Unrecovered gas costs | 73,181 | 276,916 |
Deferred regulatory costs | (316,603) | (390,020) |
Other | 157 | 37,382 |
Increase (decrease) in: | ||
Accounts payable | (181,874) | (184,333) |
Accrued expenses | (115,838) | 26,107 |
Customer deposits and accrued interest | 380,718 | 24,497 |
Deferred compensation | (173,927) | 120,668 |
Deferred pension costs & post-retirement benefits | 1,055,158 | 1,224,898 |
Other liabilities and deferred credits | 363,848 | 656,761 |
Net cash provided by operating activities | 5,504,513 | 5,582,187 |
Cash flows from investing activities: | ||
Purchase of securities available-for-sale | (934,831) | (422,721) |
Proceeds from sales of securities available-for-sale | 1,036,993 | 497,408 |
Amount received from (paid to) related parties | (79,766) | 221,722 |
Investment in joint ventures | (1,130,000) | (800,000) |
Capital expenditures | (5,825,154) | (8,399,036) |
Net cash (used in) investing activities | (6,932,758) | (8,902,627) |
Cash flows from financing activities: | ||
Proceeds under lines-of-credit and short-term borrowings | 4,389,058 | 207,236 |
Debt issuance costs | (982) | (165,983) |
Cash received from sale of stock | 29,785 | 2,467,812 |
Dividends paid | (1,231,057) | (1,075,566) |
Proceeds under long-term debt | 982,903 | 6,086,300 |
Repayment of long-term debt | (2,774,259) | (4,105,517) |
Net cash provided by financing activities | 1,395,448 | 3,414,282 |
Net increase (decrease) in cash | (32,797) | 93,842 |
Cash and cash equivalents at beginning of period | 108,086 | 14,244 |
Cash and cash equivalents at end of period | 75,289 | 108,086 |
Cash paid during the period for: | ||
Interest | 922,562 | 841,404 |
Income Taxes | 190,736 | 290,653 |
Non-cash financing activities: | ||
Dividends paid with shares | $ 132,762 | $ 123,610 |
Number of shares issued for dividends | 6,995 | 7,219 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2015 | |
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 ” or “ Gas Company ” ), our principal subsidiary, which provid es 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 ( NY PSC) which has jurisdiction over and sets rates for New York State gas distribution companies. The Holding Company's regulated operations meet the criteria to 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 O n July 19, 2013 , t he Holding Company was incorporated under the laws of the State of New York to serve as the parent holding company of the Gas Company, Corning Natural Gas Appliance Corporation (Appliance Company) and, directly or indirectly, the interests in the Leatherstocking Joint Venture C ompanies , see Note 1(t) . 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 was approved by more than two-thirds of the share holders at a special meeting of the Gas Company's shareholders on November 6, 2013. The reorganization was effective on November 12, 2013, when each issued and outstanding share of Corning Gas' common stock, par value $ 5.00 one 0.01 The consolidated financial statements include the Holding Company and its wholly owned subsidiar ies , Corning Gas and Appliance C ompany . 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 or acquisition . Th e se costs include payroll, fringe benefits, materials and supplies and transportation costs. The Gas Company charges normal repairs to maintenance expense. (c) Depreciation The Gas Company provides for depreciation for accounting purposes using a straight-line method based on the estimated economic lives of property and equipment as determined by the current rate plan based on the latest depreciation study. The depreciation rate used for utility plant, expressed as an annual percentage of depreciable property was 2.2 for both of the years ended September 30 , 2015 and 2014. The NYPSC allows the Gas Company recovery in revenues to offset 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 Gas 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, 201 5 and 201 4 . (e) Marketable Securities Marketable securities, which are intended to fund the Gas 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 201 5 and 201 4 , the Gas Company sold equity securities for realized gains (losses) included in earnings of $ 88,028 and $ 11,812 , respectively. ( f ) Fair Value of Financial Instruments The Gas 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 m arketable securities , which fund the Gas Company's deferred compensation plan, are valued based on Level 1 inputs. The Gas 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, 201 5 and 201 4 are as follows: Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) Level 2 Level 3 September 30, 2015 Available-for-sale securities $ 2,153,785 $ 2,153,785 $ - $ - September 30, 2014 Available-for-sale securities $ 2,308,138 $ 2,308,138 $ - $ - Financial assets and liabilities valued using level 1 inputs are based on unadjusted quoted market prices within active markets. The pension assets in Note 11 are valued using level 1 inputs. ( g ) Cash and Cash Equivalents Cash and cash equivalents include time deposits, certificates of deposit, and all highly liquid debt instruments with original maturities of three months or less. Cash and cash equivalents at financial institutions may periodically exceed federally insured limits. ( h ) Accounts Receivable Accounts receivable are stated net of an allowance for doubtful accounts. The Gas 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 . Related party receivables are expenditures paid on behalf of the Holding Company's J oint V enture investments . We expect repayment on these amounts during the year ended September 30, 201 6 . (l) 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 i nventories are stated at the lower of cost or market, cost being determined on a n average unit price basis. ( k ) Debt Issuance Costs Costs associated with the issuance of debt by the Gas Company are deferred and amortized over the lives of the related debt. ( l ) Regulatory Matters Certain costs of the Gas Company are deferred and recognized as expenses when they are reflected in rates and recovered from customers as permitted by FAS B 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 of NYPSC for utilities . As a regulated utility, the Gas Company deferred certain costs for future recovery. In a purely competitive environment, such costs might have been currently expensed. Accordingly, if the Gas Company's rate setting were changed from a cost-of-service approach and the Gas Company were no longer allowed to defer these costs under FASB ASC 980 , certain of these assets might not be fully recoverable. However, the Gas Company cannot predict the impact, if any, of competition and continues to operate in a cost-of-service based regulatory environment. Accordingly, the Gas Company believes that accounting under FASB ASC 980 is appropriate . ( m ) Revenue and Natural Gas Purchased The Gas Company records revenues from residential and commercial customers based on meters read on a cyclical basis throughout each month, while certain large industrial and utility customers' meters are read at the end of each month. Several meters are read at the end of each month to calculate local production revenues. The Gas Company does not accrue revenue for gas delivered but not yet billed, as the NYPSC requires that such accounting must be adopted during a rate proceeding, which the Gas Company has not done. The Gas Company, as part of its currently effective rate plan, has a weather normalization clause as protection against severe weather fluctuations. This affects space heating customers and is activated when degree days are 2.2 the 30 - year average. As a result, the effect on revenue fluctuations o f weather related gas sales is somewhat moderated. In addition to weather normalization, starting in September 2009, the Gas 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 Gas Company will refund or surcharge customers for differences between actual and allowed revenues. The shortfall or excess after the annual reconciliation will be surcharged or refunded to customers over a twelve month period starting September 1 st each year . Gas purchases are recorded on readings of suppliers' meters as of the end of each month. The Gas 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 NY 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 twelve -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 ) Revenue Taxes The Gas Company collects state revenue taxes on residential delivery rates . The amount included in Utility Operating Revenue and Taxes other than Federal Income Taxes was $ 175,294 and $ 168,900 in 201 5 and 20 1 4 , respectively. ( p ) Stock Based Compensation The Holding Company accounts for stock based awards in accordance with FASB ASC 718 . T he Holding Company award s 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 f or their service as directors. Since these shares are restricted, in recording compensation expense, the expense incurred is 25 Each director is awarded 375 Seven directors received a total of 9,000 shares during fiscal 201 4 and 10,442 shares during fiscal 201 5 . On November 13, 2014, shares were issued for the quarter ended September 30, 2014 with the new director, Robert Johnston receiving 317 On December 1, 2015 , 2,625 shares were issued for the quarter ended September 30, 2015. T he Board of Directors authorized the issuance on December 12, 2012, of 600 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 until Leatherstocking Gas Company started serving customers at which point quarterly compensation increased to 112 Quarterly compensation increased to 150 Mr. Hayden has received a total of 937 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 20 th business day after quarter end . ( q ) 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. ( r ) 311 Transportation Agreement /Compressor Station On January 11, 2010, the Gas 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 Gas Company bought the $ 11 compressor station and $ 2.1 two two ten Gas Company has a plant available for use that had an original cost of $ 13.1 , only two ( s ) Collective Bargaining Agreement The Gas Company had 58 employees as of September 30, 201 5 , and 57 as of September 30, 201 4 . Of this total, nearly half are members of the International Brotherhood of Electrical Workers Local 139 union working under an agreement effective until April 2, 201 8 . ( t ) Leatherstocking Companies The Holding Company has a 50 “ 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 ( u ) 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. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 . We ar e currently evaluating the effect the updated standard will have on our consolidated financial statements and related disclosures. In April 2015, the FASB issued new accounting guidance on the presentation of debt issuance costs. The new guidance requires that debt issuance costs related to a note be presented as a direct deduction from that note. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. We do not believe this guidance will have a material effect on our consolidated financial statements when adopted. In July 2015, the FASB issued new accounting guidance simplifying inventory measurement by requiring companies to value inventory at the lower of cost and net realizable value. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. We do not believe this guidance will have a material effect on our consolidated financial statements when adopted. In September 2015, the FASB issued new accounting guidance on the recognition by the acquiring entity of adjustment to provisional amounts during the measurement period. The new guidance requires that the adjustments that are identified to be recognized in the same period's financial statements in which the adjustment amounts are determined. The entity must also present separately on the face of the income statement, or disclose separately in the notes, the portion of the amount recorded in the current-period earnings by line item that would have been recorded in previous periods if the adjustment had been identified as of the acquisition date. We are still evaluating whether this guidance will have a material effect on our consolidated financial statements when adopted. In November 2015, the FASB issued new accounting guidance on the classification of deferred taxes. The new guidance requires that all deferred tax asset and liabilities be classified as noncurrent in a classified statement of financial position. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early application is permitted. When the guidance is effective all deferred tax assets and liabilities will be presented as noncurrent. We do not believe this guidance will have a material effect on our consolidated financial statements when adopted. |
Major Customers
Major Customers | 12 Months Ended |
Sep. 30, 2015 | |
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, t he 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, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | (3) Property, Plant and Equipment The following table summarizes fixed assets included in utility plant on the Holding Company's Consolidated Balance Sheet at September 30, 2015 and 2014: 2015 2014 Utility Plant $ 21,641,078 $ 19,727,468 Pipeline 39,939,110 38,013,151 Structures 5,119,970 4,979,761 Land 696,067 661,864 All Other 6,900,949 5,305,265 $ 74,297,174 $ 68,687,509 Useful life for the above assets range from 35 52 66 45 47 65 8 25 |
Marketable Securities
Marketable Securities | 12 Months Ended |
Sep. 30, 2015 | |
Marketable Securities [Abstract] | |
Marketable Securities | (4) Marketable Securities A summary of the marketable securities at September 30, 2015 and 2014 is as follows: Cost Basis Unrealized Gain Unrealized Loss Market Value 2015 Cash and equivalents $ 41,500 - - $ 41,500 Metlife stock value 51,185 - - 51,185 Government and agency bonds 301,673 1,763 - 303,436 Corporate bonds 337,757 - 3,973 333,784 Mutual funds 79,515 - 8,555 70,960 Equity securities 1,293,039 59,881 - 1,352,920 Total securities $ 2,104,669 $ 61,644 $ 12,528 $ 2,153,785 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 The government and agency bonds have contractual maturity dates between August 31, 2017 and November 21, 2024. The contractual maturity dates for the corporate bonds are from September 15, 2016 to December 1, 2022. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Sep. 30, 2015 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | ( 5 ) Regulatory Matters Below is a summary of the Gas Company's regulatory assets as of September 30, 20 1 5 and 20 1 4 : 2015 2014 Unrecovered gas costs $ 37,191 $ 110,372 Deferred regulatory costs 2,751,339 2,653,778 Deferred pension costs 4,517,673 - Total regulatory assets $ 7,306,203 $ 2,764,150 Unrecovered gas costs arise from an annual reconciliation of certain gas revenue and costs (as described in Note 1) and are recoverable in customer rates in the year following the reconciliation. The following table summarizes regulatory costs at September 30, 201 5 and 201 4 : 2015 2014 Deferred rate case costs $ 897,942 $ 971,364 Deferred rate case reconciliations 1,853,397 1,682,413 Total $ 2,751,339 $ 2,653,778 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. In fiscal year 2015 the Gas Company determined that it meets the criteria to record the minimum pension liability as a regulatory asset in accordance with ASC 980-715-25-5. As a result of this change in estimate , amounts previously recorded as Accumulated OCI , net of tax have been recorded as regulatory assets in the current year in accordance with ASC 980-715-25-8 , as well as a related deferred tax liability . The amount of the regulatory asset was $ 3,665,926 2,748,238 : (1) consistent recovery of the pension costs on an accrual basis historically and in the current rate case, (2) no indication of expected changes to recovery, and (3) the existence of a reconciliation process to track the recovery of these costs. For these reasons management determined the Gas Company meets the criteria as set forth in ASC 980-725-25-5. Also included in pension costs and post-retirement benefits is approximately ($ 35,000 ) and $ 131,000 for 2015 and 2014, respectively, for regulatory assets and (liabilities) related to pension and post-retirement costs. These amounts include both amounts approved to be amortized in the previous rate case and amounts being accumulated for the next rate case. Included in other in deferred credits and other is $ 1,338,048 1,041,345 Although the Gas Company expects to recover the cost of its regulatory assets, it does not earn a return on them . The Gas Company expects that regulatory assets other than deferred unrecovered gas costs and deferred pension costs related to minimum pension liability will be fully recoverable from customers by the end of its next rate case expected during the year ended September 30, 2018. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Sep. 30, 2015 | |
Long-term Debt [Abstract] | |
Long-term Debt | ( 6 ) Long-term Debt Long-term debt, including the current portion, was as follows at September 30, 201 5 and 201 4 : 2015 2014 Note payable - variable rate with 4.5 installments through May 2020 $ 501,931 $ 618,168 Note Payable - 5.79 August 2018 451,323 593,857 Note Payable - variable rate with 4.25 installments through November 2016 1,313,318 1,498,988 Note Payable - variable rate with 3.75 installments through November 2017 1,847,391 2,067,499 Note Payable - 4.46 July 2017, then refinanced at new rate 184,654 206,934 Note Payable - 4.46 July 2017, then refinanced at new rate 184,651 206,931 Note Payable - 4.2 November 2018 2,950,113 3,827,582 Note Payable - 4.51 September 2018 1,831,886 2,406,486 Note Payable - 4.18 November 2018 1,972,221 2,170,363 Note Payable - 4.39 through November 2019 3,540,206 2,852,549 Note Payable - 4.49 through July 2019 552,853 602,899 M&T Bank - vehicle loans bearing interest at rates ranging from 4.37 5 146,983 216,630 Total long-term debt $ 15,477,530 $ 17,268,886 Less current installments 2,923,133 2,697,140 Long-term debt less current installments $ 12,554,397 $ 14,571,746 The aggregate maturities of long-term debt for each of the five years subsequent to September 30, 2015 are as follows: 2016 $ 2,923,133 2017 $ 3,020,343 2018 $ 4,206,271 2019 $ 2,548,616 2020 $ 668,009 2021+ $ 2,111,158 On May 10 , 2010 , the Gas Company entered into a credit agreement with Community Bank N.A. for a $ 1.05 6.25 , New York . This agreement gives our lender a security interest in all fixtures, equipment and inventory related to the Gas Company's franchise in the town of Virgil as well as marketable securities . The note also required an equity contribution of $ 350,000 24,000 15.00 360,000 (i) maintain a tangible net worth of not less than $ 11.0 3.0 (iii) maintain a debt service coverage ratio of 1.10 7 , 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 4.5 6.25 4.5 5 . On May 8, 2015, this loan was extended until May 10, 2020 In September 2010 the Gas Company entered into an agreement with Five Star Bank to provide $ 750,000 Gas 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 no change in terms . On August 13, 2012 the note was refinanced at a variable interest rate of prime rate plus 1.00 August 1, 2018 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 5 was 5.79 On July 14, 2011 Gas Company entered into a Multiple Disbursement Term Note and Credit Agreement in the amount of $ 2 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 percentage points above 30-day LIBOR or 4.25 five ten 3.25 4.25 On July 27, 2012 Gas Company entered into a Line of Credit Agreement and Term Loan Agreement in the amount of $ 2.45 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 marketable securities . 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 3.75 five ten On August 13, 2012 Gas Company entered into agreements with Five Star Bank pursuant to two Promissory Notes in the amount of $ 250,000 five 4.46 five 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 f o r the other project . On September 3, 2013 Gas Company refinanced approximately $ 7.8 4.0 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 6.5 Gas Company in favor of M&T in the original principal amount of approximately $ 1.8 5.76 . Also on September 3, 2013 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 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 of $ 23,438 calculated on a ten is 4.18 he loan will mature on December 3, 2018 The Gas Company borrowed $ 2,329,223 before the note converted to a permanent loan. On July 3, 2014 Gas Company entered into a Multiple Disbursement Term Note and Credit Agreement in the amount of $ 3,796,000 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 convert ed to a permanent loan payable monthly for five 2.75 five ten As of the loan conversion on November 30, 2014, the Gas Company had drawn the total amount of the note, with $ 943,451 4.39 39,257 Also on July 3, 2014 Gas Company entered into a Term Note and Credit Agreement with M&T in the amount of $ 615,000 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 6,371 July 2019 The Gas Company is in compliance with all of its loan covenants as of September 30, 201 5 . |
Lines of Credit and Short Term
Lines of Credit and Short Term Debt | 12 Months Ended |
Sep. 30, 2015 | |
Lines of Credit and Short Term Debt [Abstract] | |
Lines of Credit and Short Term Debt | ( 7 ) Lines of Credit and Short Term Debt On October 27, 2015 , the Gas Company extended its line of credit agreement with Community Bank N.A. (“Community Bank”) in the amount of $ 8.5 that will expire on April 1, 2016 . Borrowings outstanding on this line were $ 7,003,599 and $ 4 , 614,541 at September 30, 201 5 and 201 4 , respectively. The maximum amount outstanding during the years ended September 30, 201 5 and 201 4 were $ 7,581,344 and $ 7,140 , 511 , respectively. The interest rate is calculated as the 30-day Libor Rate plus 2.5 %. 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 1.1 The Gas Company is in compliance with the loan covenants as of September 30, 201 5 . On September 30, 201 5 , the interest rate was 2.9905 The weighted average interest rates on outstanding borrowings during fiscal years 201 5 and 201 4 were 2.90 % and 3.17 %, respectively. On August 17, 2015, the Gas Company entered into a Term Note and Agreement with M&T in the amount of $ 2,000,000 2.30 mandated construction projects. The maturity date of this note was November 17, 20 15. On October 14, 2015, the Gas Company entered into a Term Note and Agreement with M&T in the amount of $ 1,000,000 2.75 LIBOR for the purpose of short term financing of mandated construction projects. The maturity date of this note was January 14, 2016. On November 6, 2015, the Gas Company entered into a Term Note and Agreement with M&T in the amount of $ 3,000,000 2,000,000 1,000,000 2.75 As of September 30, 2015, we believe that cash flow from operating activities and borrowings under our lines of credit will not be sufficient to satisfy our working capital and debt service requirements over the next twelve months. We believe modifications and or refinancing of current debt amounts, as well as new debt instruments and proceeds from equity will be required to satisfy our capital expenditures to finance our internal growth needs for the next twelve months. Also see Note 15 to the Notes to the Consolidated Financial Statements for additional borrowings to finance a potential acquisition. |
Stockholders Equity
Stockholders Equity | 12 Months Ended |
Sep. 30, 2015 | |
Stockholders Equity [Abstract] | |
Stockholders Equity | ( 8 ) Stockholders Equity For the fiscal year ended September 30, 2015 there were a total of 19,463 29,785 162,414 132,761 the DRIP (dividend reinvestment program). There were 10,442 526 6,995 1,500 9,000 for proceeds of $ 115,470 On May 28, 2009, the Gas Company registered with the Securities and Exchange Commission (“SEC”) 100,000 .01 per share for the DRIP . On January 10, 2014, the Holding Company filed with the SEC a registration statement with respect to the then remaining 129,000 As part of this program 761 2,319 3,976 5,689 7,433 7,219 , and 6,995 34,392 The Holding Company entered into a series of stock purchase agreements selling to six investors an aggregate of 150,000 16.40 2,460,000 75,000 214,451 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 5,000 and as of July 15, 2014, become a member the Holding Company's Board of Directors . The price of $ 16.40 75,000 Dividends are accrued when declared by the board of directors. A dividend of $ .125 .135 327,819 .135 .145 , and on July 15, 2015 to shareholders of record on June 30, 2015. For the quarter ended September 30, 2015, $ 354,924 |
Investment in Joint Ventures
Investment in Joint Ventures | 12 Months Ended |
Sep. 30, 2015 | |
Investment in Joint Ventures [Abstract] | |
Investment in Joint Ventures | ( 9 ) Investment in Joint Ventures The Holding Company has an interest in Leatherstocking Gas, a joint venture with Mirabito Regulated Industries , LLC, accounted for by the equity method. This joint venture is currently moving forward on expansions to several areas in the northeast. The Holding Company and Mirabito Regulated Industries , LLC each own 50 , LLC 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 , LLC ; Matthew J. Cook, Michael I. German and Russell S. Miller from the Holding 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. Leatherstocking Gas has received franchises from the Village and Town of Sidney, Village and Town of Bainbridge, Village and Town of Windsor, Village and Town of Unadilla, and Village and Town of Delhi in New York. Leatherstocking Gas' petition for authority to exercise its franchises in the Town and Village of Winsor is currently pending before the NYPSC. In addition, Leatherstocking Gas has acquired sixteen 1.5 1.8 240 customers in these boroughs and townships as of September 30, 2015 . 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 two d equity investments from the Holding Company and Mirabito Regulated Industries for a total of 66 During fiscal year 2014, $ 1,500,000 Regulated Industries invested $ 500,000 During fiscal year 2015 , $ 2,500,000 850,000 September 30, 2015, Leatherstocking Gas has drawn the $ 4 Both of these agreements have a loan covenant related to debt service coverage being at least 1.15 In February 2015 , Leatherstocking Gas purchased a 1.5 station for $ 900,000 loan agreement with Five Star Bank for $ 540,000 180,000 . Another $ 100,000 for total investments of $ 1 , 1 30,000 by each for the year ended September 30, 2015. The new note matures on March 1, 2020 with an interest rate of 4.58 On October 19, 2015, Leatherstocking Gas and Five Star Bank entered into an agreement which allows Leatherstocking Gas to borrow up to $ 500,000 166,667 from both the Holding Company and Mirabito Regulated Industries . Leatherstocking Pipeline is a guarantor of this loan. The interests in Leatherstocking Pipeline, which was formed with the same structure and managers as Leatherstocking Gas, are also held by 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 investment and equity in both Leatherstocking 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. The following table represents the Holding Company' s investment activity in the Joint Ventures at September 30, 201 5 and September 30, 201 4 : 2015 2014 Beginning balance in investment in joint ventures $ 1,280,757 $ 587,678 Investment in joint ventures during year 1,130,000 800,000 Income (loss) in joint ventures during year (117,505 ) (106,921 ) Ending balance in joint ventures $ 2,293,252 $ 1,280,757 At September 30, 201 5 , the Joint Ventures had combined assets of $ 11.9 million , combined liabilities of $ 7.3 million and combined net losses of approximately $ 235,000 . |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | ( 10 ) Income Taxes Income tax expense for the years ended September 30 is as follows: 2015 2014 Current $ 78,000 $ 70,000 Deferred 991,631 1,240,705 Total $ 1,069,631 $ 1,310,705 Actual income tax expense differs from the expected tax expense (computed by applying the federal 34 7.1 2015 2014 Expected federal tax expense $ 969,582 $ 1,148,692 Regulatory adjustment (55,600 ) (80,054 ) Dividends received deduction (11,433 ) (12,665 ) State tax expense (net of federal) 175,331 223,157 Other, net (8,249 ) 31,575 Actual tax expense $ 1,069,631 $ 1,310,705 The tax effects of temporary differences that result in deferred income tax assets and liabilities at September 30 are as follows: 2015 2014 Deferred income tax assets: Unbilled revenue $ 57,521 $ 15,510 Deferred compensation reserve 604,458 684,897 Post-retirement benefit obligations 2,246,383 551,579 Comprehensive income - 1,563,865 Inventories 27,788 54,629 Deficiency of gas adjustment clause revenues billed 85,262 121,316 NOL carryforwards 2,597,946 3,146,186 Other 1,285,010 407,984 Total deferred income tax assets 6,904,368 6,545,966 Deferred income tax liabilities: Property, plant and equipment, principally due to differences in depreciation 7,759,860 7,197,083 Pension benefit obligations 1,298,794 238,880 Comprehensive income 19,892 - Deferred rate expense and allocations 365,091 438,469 Other 1,054,445 111,166 Total deferred income tax liabilities 10,498,082 7,985,598 Net deferred income tax liabilities $ 3,593,714 $ 1,439,632 The Holding Company has federal and New York State tax net operating loss carry forwards available of approximately $ 6.4 million as of September 30, 201 5 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 September 30, 201 2 and prior to September 30, 2011 are no longer subject to examination. The state returns for the tax years ended prior to September 30, 2012 are no longer subject to examination. The Gas Company ' s federal return is currently being examined for the tax year ended September 30, 201 1 . At this time, the Holding Company and Gas Company do not know of any material financial impact as a result of the examination . |
Pension and Other Post-retireme
Pension and Other Post-retirement Benefit Plans | 12 Months Ended |
Sep. 30, 2015 | |
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 $ 2,102,600 (plus $ 51,185 and $ 2 , 256,953 (plus $ 51,185 at September 30, 201 5 and 20 1 4 , respectively, and the plan liability, which is labeled as deferred compensation on the balance sheet, was $ 1 , 492,488 and $ 1 , 666,415 at September 30, 201 5 and 20 1 4 , respectively. The assets of the trust are available to general creditors in the event of insolvency. In 2015, the mortality assumption was changed from the RP-2000 annuitant/non-annuitant mortality table with generational improvements using scale BB to the 2008 VBT Primary Male Smoker tables with generational improvements for two of the covered participants which resulted in a decrease to the pension obligation of approximately $ 171,000 . In 2014, the mortality assumption was changed from the 1994 Group Annuity Mortality Table for Males and Females without generational improvements to the RP-200 0 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 in fiscal 2014 . 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 April 2, 201 8 . The monthly benefit for all non-union employees, who retire between the ages of 62 and 65 , will be the lesser of 40 150 . After age 65, the Gas Company pays up to $ 150 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 2015 2014 2015 2014 Change in benefit obligations: Benefit obligation at beginning of year $ 18,633,318 $ 17,099,633 $ 1,264,378 $ 1,118,819 Service cost 337,039 306,274 20,979 16,096 Interest cost 919,156 806,489 48,673 52,682 Participant contributions - - 63,740 62,600 Actuarial (gain) loss 300,931 1,299,938 25,891 136,781 Benefits paid (905,842 ) (879,016 ) (128,001 ) (122,600 ) Curtailments - - - - Benefit obligation at end of year 19,284,602 18,633,318 1,295,660 1,264,378 Change in plan assets: Fair value of plan assets at beginning of year 13,675,154 12,224,984 - - Actual return on plan assets 4,126 1,164,288 - - Company contributions 990,897 1,164,898 64,261 60,000 Participant contributions - - 63,740 62,600 Benefits paid (912,338 ) (879,016 ) (128,001 ) (122,600 ) Fair value of plan assets at end of year 13,757,839 13,675,154 - - Funded status (5,526,763 ) (4,958,164 ) (1,295,660 ) (1,264,378 ) Unrecognized net actuarial loss/(gain) 4,403,014 3,572,106 (45,221 ) (79,013 ) Unrecognized prior service cost 9,797 19,203 150,083 153,630 (Accrued) prepaid benefit cost (1,113,952 ) (1,366,855 ) (1,190,798 ) (1,189,761 ) Accrued contribution - - - - Amounts recognized in the balance sheet consists of: Prepaid (accrued) benefit liability (5,526,763 ) (4,958,164 ) (1,295,660 ) (1,264,378 ) Amounts recognized in the Balance Sheets consist of: (Accrued)/prepaid pension cost as of beginning of fiscal year (1,366,855 ) (1,894,275 ) (1,189,761 ) (1,201,413 ) Pension (cost) income (986,115 ) (737,994 ) (70,313 ) (56,348 ) Contributions 990,897 1,164,898 - - Change in receivable contribution 248,121 100,516 - - Net benefits paid - - 69,276 68,000 Change in additional minimum liability - - - - (Accrued)/prepaid pension cost as of end of fiscal year (1,113,952 ) (1,366,855 ) (1,190,798 ) (1,189,761 ) Fair value of plan assets at end of year Cash and equivalents 175,950 333,449 - - Government and agency issues 2,920,406 2,084,850 - - Corporate bonds 3,691,645 3,523,711 - - Fixed index funds 324,804 609,911 - - Fixed income 540,732 1,095,214 - - Equity securities 6,104,302 6,028,019 - - 13,757,839 13,675,154 - - The funded status of both plans totaling a deficiency of approximately $ 6,800,000 and $ 6 , 200,000 at September 30, 201 5 and 201 4 , respectively, are included in deferred pension & post-retirement benefits on the consolidated balance sheets which are offset by a pension regulatory liability of approximately $ 35,000 at September 2015 and a pension regulatory asset of approximately $ 131,000 at September 30, 201 4 . In accordance with ASC 715, the net actuarial loss/(gain) and unrecognized prior s ervice cost are collectively adjust ed through other comprehensive income (loss)-minimum pension liability and included in accumulated other comprehensive income in the consolidated financial statements, which are presented net of tax for fiscal 2014 . In the fourth quarter of fiscal 2015 the Gas Company determined that it meets the criteria to record these items as a regulatory asset in accordance with ASC 980-715-25-5. See Note 5 to the financial statements. During the year ended September 30, 2015, the pre-tax accumulated net actuarial loss/(gain) and unrecognized prior service cost increased by $ 851,547 from $ 3,666,126 $ 4,517,673 these items had been recorded net of tax in the consolidated statements of changes in stockholders' equity. During first three quarters of the year ended September 30, 2015, the Gas Company recorded $ 222,363 377,526 OCI for the estimated change in these items based on estimate s prepared by the actuary during the year ended September 30, 2014. After removing these items from OCI and establishing the regulated asset i n the fourth quarter of the year ended September 30, 2015, the remain ing change of $ 474,021 to this asset . Beginning w ith the year ended September 30, 2016 the change in pre-tax net actuarial loss/(gain) and unrecognized prior service will be recorded directly to the regulatory asset related to pension. Amortization of unrecognized net (gain)/loss for the Retirement Plan for fiscal year ending September 30, 201 5 : 1 Projected benefit obligation as of September 30, 2015 $ 19,284,602 2 Plan assets at September 30, 2015 (13,757,839 ) 3 Unrecognized (gain)/loss as of September 30, 2015 4,403,014 4 Ten percent of greater of (1) or (2) 1,928,460 5 Unamortized (gain)/loss subject to amortization - (3) minus (4) 2,474,554 6 Active future service of active plan participants expected to receive benefits 9.79 7 Minimum amortization of unamortized net (gain)/loss - (5)/(6) $ 252,763 8 Amortization of (gain)/loss for 2015-2016 $ 672,265 Amortization of unrecognized net (gain)/loss for the Post-Retirement Plan for the fiscal year ended September 30, 201 5 : Unrecognized net (gain)/loss at October 1, 2015 subject to amortization $ (45,221) Amount to be amortized 2015 - 2016 Amortization period 10 Amortization for 2015 - 2016 ((gain)/loss divided by period) $ (4,522) Pension Benefits Post-retirement Benefits 2015 2014 2015 2014 Components of net period benefit cost (benefit): Service cost 343,039 311,274 20,979 16,096 Interest cost 919,156 806,489 48,673 52,682 Expected return on plan assets (1,027,565 ) (926,361 ) Amortization of prior service 9,406 10,749 3,547 3,547 Amortization of unrecognized actuarial loss (gain) 493,958 435,327 (7,901 ) (23,977 ) Net periodic benefit cost (benefit) 737,994 637,478 65,298 48,348 For ratemaking and financial statement purposes, pension expense represents the amount approved by the NY PSC in the Gas Company's most recently approved rate case. Pension expense (benefit) for ratemaking and financial statement purposes was approximately $ 970,000 f or the years ended September 30, 201 5 and 201 4 . 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 $ 89,746 and $ 227,024 as of September 30, 201 5 and 201 4 , respectively. The NYPSC has allowed the Gas C ompany 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 $ 123,174 and $ 147,168 has been recognized at September 30, 201 5 and 201 4 , respectively. Pension Benefits Post-retirement Benefits 2015 2014 2015 2014 Weighted average assumptions used to determine net period cost at September 30: Discount rate 5.22 % 5.07 % 4.00 % 3.95 % Salary increases 2.00 % 2.00 % N/A N/A Expected return on assets 7.50 % 7.50 % N/A N/A 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 $ 1,394,000 759,000 In fiscal 2015, the same methodology was used as in 2014. The change in discount rate from 5.07 5.22 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 s 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 5 . The rate is assumed to increase by 6 1 3.9 % increase in the service and interest cost components of the annual net periodic post-retirement benefit cost and a 5.7 % increase in the accumulated post-retirement benefit obligation. A 1% decrease in the actual health care cost trend would result in approximately a 3.2 % decrease in the service and interest cost components of the annual net periodic post-retirement benefit cost and a 4.8 % decrease in the accumulated post-retirement benefit obligation. The Gas Company expects to contribute $ 960,819 to the Retirement Plan during the year ended September 30, 201 6 . The estimated pension plan benefit payments are as follows: 2016 $ 1,103,000 2017 $ 1,141,000 2018 $ 1,161,000 2019 $ 1,226,000 2020 $ 1,337,000 2021+ $ 7,057,000 The Gas Company also maintains the Corning Natural Gas Corporation Employee Savings Plan (the “ Savings Plan ” ). All employees of the Gas Company who work for more than 1,000 50 Gas Company will match one-half of the participant's contribution up to a total of 50 6 Gas Company contribution to the plan was $ 87 , 456 in 201 5 and $ 87,712 in 201 4 . |
Stock Options
Stock Options | 12 Months Ended |
Sep. 30, 2015 | |
Stock Options [Abstract] | |
Stock Options | (12) Stock Options A summary of all stock option activity and information related to all options outstanding follows: 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 Exercisable at September 30, 2014 13,500 $ 12.83 1.25 2015 Stock Options Number of Weighted Average Shares Average Remaining Remaining Exercise Contractual Options Price Term Outstanding at October 1, 2014 13,500 $ 12.83 Options granted - Options exercised during year ended September 30, 2015 1,500 $ 12.83 Options expired during year ended September 30, 2015 - Outstanding at September 30, 2015 12,000 $ 12.83 .25 Exercisable at September 30, 2015 12,000 $ 12.83 .25 There is no unrecognized cost related to options at September 30, 2015 because all options are vested. On October 21, 2015, an additional 9,000 |
Commitments
Commitments | 12 Months Ended |
Sep. 30, 2015 | |
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 736,000 654,040 1.2 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 On September 9, 2015, the Holding Company and M&T Bank signed a Commitment Letter for up to a $ 12 2 five 300 275 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, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (14) Related Party Transactions A director performed legal services for the Gas Company of approximately $ 174,000 Related party receivables are expenditures paid on behalf of the Holding Company's joint venture investments. There were costs incurred in fiscal 2015 of $ 118,108 10,500 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | (15) Subsequent Events On October 13, 2015, the Holding Company entered into a Stock Purchase Agreement with Orange and Rockland Utilities, Inc. (“O&R”) for the purchase of all of the outstanding capital stock of Pike County Light & Power Company (“PCL&P”), a Pennsylvania corporation operating as a regulated electric and gas utility serving approximately 5,800 13.117 3 3.2 On October 14, 2015, the Gas Company entered into a Term Note and Agreement with M&T in the amount of $ 1,000,000 2.75 3,000,000 2,000,000 1,000,000 2.75 On October 19, 2015, the NYPSC adopted the terms of the Extension Joint Proposal, including the Safety and Reliability Charge which permits the Gas Company to collect approximately $ 466,000 575,000 1,041,000 426,000 On October 19, 2015, Leatherstocking Gas and Five Star Bank entered into an agreement which allows Leatherstocking Gas to borrow up to $ 500,000 five 166,667 On October 21, 2015, 9,000 115,470 On December 1, 2015, 2,625 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation and Presentation | (a) Principles of Consolidation and Presentation O n July 19, 2013 , t he Holding Company was incorporated under the laws of the State of New York to serve as the parent holding company of the Gas Company, Corning Natural Gas Appliance Corporation (Appliance Company) and, directly or indirectly, the interests in the Leatherstocking Joint Venture C ompanies , see Note 1(t) . 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 was approved by more than two-thirds of the share holders at a special meeting of the Gas Company's shareholders on November 6, 2013. The reorganization was effective on November 12, 2013, when each issued and outstanding share of Corning Gas' common stock, par value $ 5.00 one 0.01 The consolidated financial statements include the Holding Company and its wholly owned subsidiar ies , Corning Gas and Appliance C ompany . 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 or acquisition . Th e se costs include payroll, fringe benefits, materials and supplies and transportation costs. The Gas Company charges normal repairs to maintenance expense. |
Depreciation | (c) Depreciation The Gas Company provides for depreciation for accounting purposes using a straight-line method based on the estimated economic lives of property and equipment as determined by the current rate plan based on the latest depreciation study. The depreciation rate used for utility plant, expressed as an annual percentage of depreciable property was 2.2 for both of the years ended September 30 , 2015 and 2014. The NYPSC allows the Gas Company recovery in revenues to offset 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 Gas 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, 201 5 and 201 4 . |
Marketable Securities | (e) Marketable Securities Marketable securities, which are intended to fund the Gas 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 201 5 and 201 4 , the Gas Company sold equity securities for realized gains (losses) included in earnings of $ 88,028 and $ 11,812 , respectively. |
Fair Value of Financial Instruments | ( f ) Fair Value of Financial Instruments The Gas 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 m arketable securities , which fund the Gas Company's deferred compensation plan, are valued based on Level 1 inputs. The Gas 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, 201 5 and 201 4 are as follows: Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) Level 2 Level 3 September 30, 2015 Available-for-sale securities $ 2,153,785 $ 2,153,785 $ - $ - September 30, 2014 Available-for-sale securities $ 2,308,138 $ 2,308,138 $ - $ - Financial assets and liabilities valued using level 1 inputs are based on unadjusted quoted market prices within active markets. The pension assets in Note 11 are valued using level 1 inputs. |
Cash and Cash Equivalents | ( g ) Cash and Cash Equivalents Cash and cash equivalents include time deposits, certificates of deposit, and all highly liquid debt instruments with original maturities of three months or less. Cash and cash equivalents at financial institutions may periodically exceed federally insured limits. |
Accounts Receivable | ( h ) Accounts Receivable Accounts receivable are stated net of an allowance for doubtful accounts. The Gas 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 . Related party receivables are expenditures paid on behalf of the Holding Company's J oint V enture investments . We expect repayment on these amounts during the year ended September 30, 201 6 . |
Gas Stored Underground | (l) 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 i nventories are stated at the lower of cost or market, cost being determined on a n average unit price basis. |
Debt Issuance Costs | ( k ) Debt Issuance Costs Costs associated with the issuance of debt by the Gas Company are deferred and amortized over the lives of the related debt. |
Regulatory Matters | ( l ) Regulatory Matters Certain costs of the Gas Company are deferred and recognized as expenses when they are reflected in rates and recovered from customers as permitted by FAS B 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 of NYPSC for utilities . As a regulated utility, the Gas Company deferred certain costs for future recovery. In a purely competitive environment, such costs might have been currently expensed. Accordingly, if the Gas Company's rate setting were changed from a cost-of-service approach and the Gas Company were no longer allowed to defer these costs under FASB ASC 980 , certain of these assets might not be fully recoverable. However, the Gas Company cannot predict the impact, if any, of competition and continues to operate in a cost-of-service based regulatory environment. Accordingly, the Gas Company believes that accounting under FASB ASC 980 is appropriate . |
Revenue and Natural Gas Purchased | ( m ) Revenue and Natural Gas Purchased The Gas Company records revenues from residential and commercial customers based on meters read on a cyclical basis throughout each month, while certain large industrial and utility customers' meters are read at the end of each month. Several meters are read at the end of each month to calculate local production revenues. The Gas Company does not accrue revenue for gas delivered but not yet billed, as the NYPSC requires that such accounting must be adopted during a rate proceeding, which the Gas Company has not done. The Gas Company, as part of its currently effective rate plan, has a weather normalization clause as protection against severe weather fluctuations. This affects space heating customers and is activated when degree days are 2.2 the 30 - year average. As a result, the effect on revenue fluctuations o f weather related gas sales is somewhat moderated. In addition to weather normalization, starting in September 2009, the Gas 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 Gas Company will refund or surcharge customers for differences between actual and allowed revenues. The shortfall or excess after the annual reconciliation will be surcharged or refunded to customers over a twelve month period starting September 1 st each year . Gas purchases are recorded on readings of suppliers' meters as of the end of each month. The Gas 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 NY 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 twelve -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. |
Revenue Taxes | ( o ) Revenue Taxes The Gas Company collects state revenue taxes on residential delivery rates . The amount included in Utility Operating Revenue and Taxes other than Federal Income Taxes was $ 175,294 and $ 168,900 in 201 5 and 20 1 4 , respectively. |
Stock Based Compensation | ( p ) Stock Based Compensation The Holding Company accounts for stock based awards in accordance with FASB ASC 718 . T he Holding Company award s 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 f or their service as directors. Since these shares are restricted, in recording compensation expense, the expense incurred is 25 Each director is awarded 375 Seven directors received a total of 9,000 shares during fiscal 201 4 and 10,442 shares during fiscal 201 5 . On November 13, 2014, shares were issued for the quarter ended September 30, 2014 with the new director, Robert Johnston receiving 317 On December 1, 2015 , 2,625 shares were issued for the quarter ended September 30, 2015. T he Board of Directors authorized the issuance on December 12, 2012, of 600 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 until Leatherstocking Gas Company started serving customers at which point quarterly compensation increased to 112 Quarterly compensation increased to 150 Mr. Hayden has received a total of 937 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 20 th business day after quarter end . |
Earnings Per Share | ( q ) 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 | ( r ) 311 Transportation Agreement /Compressor Station On January 11, 2010, the Gas 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 Gas Company bought the $ 11 compressor station and $ 2.1 two two ten Gas Company has a plant available for use that had an original cost of $ 13.1 , only two |
Collective Bargaining Agreement | ( s ) Collective Bargaining Agreement The Gas Company had 58 employees as of September 30, 201 5 , and 57 as of September 30, 201 4 . Of this total, nearly half are members of the International Brotherhood of Electrical Workers Local 139 union working under an agreement effective until April 2, 201 8 . |
Leatherstocking Companies | ( t ) Leatherstocking Companies The Holding Company has a 50 “ 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 |
New Accounting Pronouncements Not Yet Adopted | ( u ) 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. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 . We ar e currently evaluating the effect the updated standard will have on our consolidated financial statements and related disclosures. In April 2015, the FASB issued new accounting guidance on the presentation of debt issuance costs. The new guidance requires that debt issuance costs related to a note be presented as a direct deduction from that note. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. We do not believe this guidance will have a material effect on our consolidated financial statements when adopted. In July 2015, the FASB issued new accounting guidance simplifying inventory measurement by requiring companies to value inventory at the lower of cost and net realizable value. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. We do not believe this guidance will have a material effect on our consolidated financial statements when adopted. In September 2015, the FASB issued new accounting guidance on the recognition by the acquiring entity of adjustment to provisional amounts during the measurement period. The new guidance requires that the adjustments that are identified to be recognized in the same period's financial statements in which the adjustment amounts are determined. The entity must also present separately on the face of the income statement, or disclose separately in the notes, the portion of the amount recorded in the current-period earnings by line item that would have been recorded in previous periods if the adjustment had been identified as of the acquisition date. We are still evaluating whether this guidance will have a material effect on our consolidated financial statements when adopted. In November 2015, the FASB issued new accounting guidance on the classification of deferred taxes. The new guidance requires that all deferred tax asset and liabilities be classified as noncurrent in a classified statement of financial position. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early application is permitted. When the guidance is effective all deferred tax assets and liabilities will be presented as noncurrent. We do not believe this guidance will have a material effect on our consolidated financial statements when adopted. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis | Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1) Level 2 Level 3 September 30, 2015 Available-for-sale securities $ 2,153,785 $ 2,153,785 $ - $ - September 30, 2014 Available-for-sale securities $ 2,308,138 $ 2,308,138 $ - $ - |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets Included in Utility Plant | 2015 2014 Utility Plant $ 21,641,078 $ 19,727,468 Pipeline 39,939,110 38,013,151 Structures 5,119,970 4,979,761 Land 696,067 661,864 All Other 6,900,949 5,305,265 $ 74,297,174 $ 68,687,509 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Marketable Securities [Abstract] | |
Summary of Marketable Securities | Cost Basis Unrealized Gain Unrealized Loss Market Value 2015 Cash and equivalents $ 41,500 - - $ 41,500 Metlife stock value 51,185 - - 51,185 Government and agency bonds 301,673 1,763 - 303,436 Corporate bonds 337,757 - 3,973 333,784 Mutual funds 79,515 - 8,555 70,960 Equity securities 1,293,039 59,881 - 1,352,920 Total securities $ 2,104,669 $ 61,644 $ 12,528 $ 2,153,785 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 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Regulatory Matters [Abstract] | |
Schedule of Regulatory Assets | 2015 2014 Unrecovered gas costs $ 37,191 $ 110,372 Deferred regulatory costs 2,751,339 2,653,778 Deferred pension costs 4,517,673 - Total regulatory assets $ 7,306,203 $ 2,764,150 2015 2014 Deferred rate case costs $ 897,942 $ 971,364 Deferred rate case reconciliations 1,853,397 1,682,413 Total $ 2,751,339 $ 2,653,778 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Long-term Debt [Abstract] | |
Schedule of Long Term Debt | 2015 2014 Note payable - variable rate with 4.5 installments through May 2020 $ 501,931 $ 618,168 Note Payable - 5.79 August 2018 451,323 593,857 Note Payable - variable rate with 4.25 installments through November 2016 1,313,318 1,498,988 Note Payable - variable rate with 3.75 installments through November 2017 1,847,391 2,067,499 Note Payable - 4.46 July 2017, then refinanced at new rate 184,654 206,934 Note Payable - 4.46 July 2017, then refinanced at new rate 184,651 206,931 Note Payable - 4.2 November 2018 2,950,113 3,827,582 Note Payable - 4.51 September 2018 1,831,886 2,406,486 Note Payable - 4.18 November 2018 1,972,221 2,170,363 Note Payable - 4.39 through November 2019 3,540,206 2,852,549 Note Payable - 4.49 through July 2019 552,853 602,899 M&T Bank - vehicle loans bearing interest at rates ranging from 4.37 5 146,983 216,630 Total long-term debt $ 15,477,530 $ 17,268,886 Less current installments 2,923,133 2,697,140 Long-term debt less current installments $ 12,554,397 $ 14,571,746 |
Schedule of Long-Term Debt Maturities | 2016 $ 2,923,133 2017 $ 3,020,343 2018 $ 4,206,271 2019 $ 2,548,616 2020 $ 668,009 2021+ $ 2,111,158 |
Investment in Joint Ventures (T
Investment in Joint Ventures (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Investment in Joint Ventures [Abstract] | |
Schedule of investment in joint ventures | 2015 2014 Beginning balance in investment in joint ventures $ 1,280,757 $ 587,678 Investment in joint ventures during year 1,130,000 800,000 Income (loss) in joint ventures during year (117,505 ) (106,921 ) Ending balance in joint ventures $ 2,293,252 $ 1,280,757 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Schedule of Income Tax Expense | 2015 2014 Current $ 78,000 $ 70,000 Deferred 991,631 1,240,705 Total $ 1,069,631 $ 1,310,705 |
Schedule of Reconciliation of Income Tax | 2015 2014 Expected federal tax expense $ 969,582 $ 1,148,692 Regulatory adjustment (55,600 ) (80,054 ) Dividends received deduction (11,433 ) (12,665 ) State tax expense (net of federal) 175,331 223,157 Other, net (8,249 ) 31,575 Actual tax expense $ 1,069,631 $ 1,310,705 |
Schedule of Deferred Income Tax Assets and Liabilities | 2015 2014 Deferred income tax assets: Unbilled revenue $ 57,521 $ 15,510 Deferred compensation reserve 604,458 684,897 Post-retirement benefit obligations 2,246,383 551,579 Comprehensive income - 1,563,865 Inventories 27,788 54,629 Deficiency of gas adjustment clause revenues billed 85,262 121,316 NOL carryforwards 2,597,946 3,146,186 Other 1,285,010 407,984 Total deferred income tax assets 6,904,368 6,545,966 Deferred income tax liabilities: Property, plant and equipment, principally due to differences in depreciation 7,759,860 7,197,083 Pension benefit obligations 1,298,794 238,880 Comprehensive income 19,892 - Deferred rate expense and allocations 365,091 438,469 Other 1,054,445 111,166 Total deferred income tax liabilities 10,498,082 7,985,598 Net deferred income tax liabilities $ 3,593,714 $ 1,439,632 |
Pension and Other Post-retire31
Pension and Other Post-retirement Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Pension and Other Post-retirement Benefit Plans [Abstract] | |
Schedule of reconciliation of pension and post-retirement benefit plans | Pension Benefits Post-retirement Benefits 2015 2014 2015 2014 Change in benefit obligations: Benefit obligation at beginning of year $ 18,633,318 $ 17,099,633 $ 1,264,378 $ 1,118,819 Service cost 337,039 306,274 20,979 16,096 Interest cost 919,156 806,489 48,673 52,682 Participant contributions - - 63,740 62,600 Actuarial (gain) loss 300,931 1,299,938 25,891 136,781 Benefits paid (905,842 ) (879,016 ) (128,001 ) (122,600 ) Curtailments - - - - Benefit obligation at end of year 19,284,602 18,633,318 1,295,660 1,264,378 Change in plan assets: Fair value of plan assets at beginning of year 13,675,154 12,224,984 - - Actual return on plan assets 4,126 1,164,288 - - Company contributions 990,897 1,164,898 64,261 60,000 Participant contributions - - 63,740 62,600 Benefits paid (912,338 ) (879,016 ) (128,001 ) (122,600 ) Fair value of plan assets at end of year 13,757,839 13,675,154 - - Funded status (5,526,763 ) (4,958,164 ) (1,295,660 ) (1,264,378 ) Unrecognized net actuarial loss/(gain) 4,403,014 3,572,106 (45,221 ) (79,013 ) Unrecognized prior service cost 9,797 19,203 150,083 153,630 (Accrued) prepaid benefit cost (1,113,952 ) (1,366,855 ) (1,190,798 ) (1,189,761 ) Accrued contribution - - - - Amounts recognized in the balance sheet consists of: Prepaid (accrued) benefit liability (5,526,763 ) (4,958,164 ) (1,295,660 ) (1,264,378 ) Amounts recognized in the Balance Sheets consist of: (Accrued)/prepaid pension cost as of beginning of fiscal year (1,366,855 ) (1,894,275 ) (1,189,761 ) (1,201,413 ) Pension (cost) income (986,115 ) (737,994 ) (70,313 ) (56,348 ) Contributions 990,897 1,164,898 - - Change in receivable contribution 248,121 100,516 - - Net benefits paid - - 69,276 68,000 Change in additional minimum liability - - - - (Accrued)/prepaid pension cost as of end of fiscal year (1,113,952 ) (1,366,855 ) (1,190,798 ) (1,189,761 ) Fair value of plan assets at end of year Cash and equivalents 175,950 333,449 - - Government and agency issues 2,920,406 2,084,850 - - Corporate bonds 3,691,645 3,523,711 - - Fixed index funds 324,804 609,911 - - Fixed income 540,732 1,095,214 - - Equity securities 6,104,302 6,028,019 - - 13,757,839 13,675,154 - - |
Schedule of amortization of unrecognized net (gain)/loss | Unrecognized net (gain)/loss at October 1, 2015 subject to amortization $ (45,221) Amount to be amortized 2015 - 2016 Amortization period 10 Amortization for 2015 - 2016 ((gain)/loss divided by period) $ (4,522) 1 Projected benefit obligation as of September 30, 2015 $ 19,284,602 2 Plan assets at September 30, 2015 (13,757,839 ) 3 Unrecognized (gain)/loss as of September 30, 2015 4,403,014 4 Ten percent of greater of (1) or (2) 1,928,460 5 Unamortized (gain)/loss subject to amortization - (3) minus (4) 2,474,554 6 Active future service of active plan participants expected to receive benefits 9.79 7 Minimum amortization of unamortized net (gain)/loss - (5)/(6) $ 252,763 8 Amortization of (gain)/loss for 2015-2016 $ 672,265 |
Schedule of components of net periodic benefit cost | Pension Benefits Post-retirement Benefits 2015 2014 2015 2014 Components of net period benefit cost (benefit): Service cost 343,039 311,274 20,979 16,096 Interest cost 919,156 806,489 48,673 52,682 Expected return on plan assets (1,027,565 ) (926,361 ) Amortization of prior service 9,406 10,749 3,547 3,547 Amortization of unrecognized actuarial loss (gain) 493,958 435,327 (7,901 ) (23,977 ) Net periodic benefit cost (benefit) 737,994 637,478 65,298 48,348 |
Schedule of weighted average assumptions used to determine net period cost | Pension Benefits Post-retirement Benefits 2015 2014 2015 2014 Weighted average assumptions used to determine net period cost at September 30: Discount rate 5.22 % 5.07 % 4.00 % 3.95 % Salary increases 2.00 % 2.00 % N/A N/A Expected return on assets 7.50 % 7.50 % N/A N/A |
Schedule of estimated pension plan payments | 2016 $ 1,103,000 2017 $ 1,141,000 2018 $ 1,161,000 2019 $ 1,226,000 2020 $ 1,337,000 2021+ $ 7,057,000 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Stock Options [Abstract] | |
Schedule of Stock Option Activity | 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 Exercisable at September 30, 2014 13,500 $ 12.83 1.25 2015 Stock Options Number of Weighted Average Shares Average Remaining Remaining Exercise Contractual Options Price Term Outstanding at October 1, 2014 13,500 $ 12.83 Options granted - Options exercised during year ended September 30, 2015 1,500 $ 12.83 Options expired during year ended September 30, 2015 - Outstanding at September 30, 2015 12,000 $ 12.83 .25 Exercisable at September 30, 2015 12,000 $ 12.83 .25 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Narrative) (Details) | Dec. 01, 2015shares | Nov. 13, 2014shares | Dec. 11, 2012shares | May. 12, 2011USD ($) | Mar. 31, 2015shares | Dec. 31, 2013shares | Sep. 30, 2015USD ($)item$ / sharesshares | Sep. 30, 2014USD ($)item$ / sharesshares | Nov. 12, 2013$ / shares |
Significant Accounting Policies [Line Items] | |||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 5 | ||||||
Depreciation rate, annual percentage of depreciable property | 2.20% | 2.20% | |||||||
Marketable securities, realized gains (losses) | $ | $ 88,028 | $ 11,812 | |||||||
State revenue taxes collected | $ | $ 175,294 | $ 168,900 | |||||||
Shares issued for stock-based director compensation | 10,442 | ||||||||
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 | item | 58 | 57 | |||||||
Subsequent Event [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Shares issued for stock-based director compensation | 2,625 | ||||||||
Leatherstocking Gas Company, LLC and Leatherstocking Pipeline Company, LLC [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Ownership percentage of joint venture | 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 | 10,442 | 9,000 | |||||||
Restricted Stock [Member] | Robert Johnston [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Shares issued for services, shares | 317 | ||||||||
Restricted Stock [Member] | Robert Johnston [Member] | Subsequent Event [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Shares issued for services, shares | 2,625 | ||||||||
Restricted Stock [Member] | Carl T. Hayden [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Shares issued for services, shares | 937 | ||||||||
Shares issued for stock-based director compensation | 600 | ||||||||
Restricted Stock [Member] | Carl T. Hayden, Quarterly [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Shares issued for services, shares | 75 | 150 | 112 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Schedule of Fair Value of Assets and Liabilities) (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 2,153,785 | $ 2,308,138 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,153,785 | 2,308,138 |
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 | $ 2,153,785 | $ 2,308,138 |
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 Equipment35
Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $ 74,297,174 | $ 68,687,509 |
Utility Plant [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $ 21,641,078 | 19,727,468 |
Utility Plant [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 35 years | |
Utility Plant [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 52 years | |
Pipeline [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $ 39,939,110 | 38,013,151 |
Useful life | 66 years | |
Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $ 5,119,970 | 4,979,761 |
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 | $ 696,067 | 661,864 |
Useful life | 65 years | |
All Other and Corporate [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Utility property, plant and equipment | $ 6,900,949 | $ 5,305,265 |
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 ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Marketable Securities | ||
Cost Basis | $ 2,104,669 | $ 2,114,686 |
Unrealized Gain | 61,644 | 202,980 |
Unrealized Loss | 12,528 | 9,528 |
Market Value | 2,153,785 | 2,308,138 |
Cash and equivalents [Member] | ||
Marketable Securities | ||
Cost Basis | $ 41,500 | $ 59,096 |
Unrealized Gain | ||
Unrealized Loss | ||
Market Value | $ 41,500 | $ 59,096 |
MetLife Stock Value [Member] | ||
Marketable Securities | ||
Cost Basis | $ 51,185 | $ 51,185 |
Unrealized Gain | ||
Unrealized Loss | ||
Market Value | $ 51,185 | $ 51,185 |
Government and agency bonds [Member] | ||
Marketable Securities | ||
Cost Basis | 301,673 | $ 301,673 |
Unrealized Gain | $ 1,763 | |
Unrealized Loss | $ 4,029 | |
Market Value | $ 303,436 | 297,644 |
Corporate bonds [ Member] | ||
Marketable Securities | ||
Cost Basis | $ 337,757 | $ 303,428 |
Unrealized Gain | ||
Unrealized Loss | $ 3,973 | $ 5,050 |
Market Value | 333,784 | 298,378 |
Mutual Funds [Member] | ||
Marketable Securities | ||
Cost Basis | $ 79,515 | $ 56,515 |
Unrealized Gain | ||
Unrealized Loss | $ 8,555 | $ 449 |
Market Value | 70,960 | 56,066 |
Equity Securities [Member] | ||
Marketable Securities | ||
Cost Basis | 1,293,039 | 1,342,789 |
Unrealized Gain | $ 59,881 | $ 202,980 |
Unrealized Loss | ||
Market Value | $ 1,352,920 | $ 1,545,769 |
Regulatory Matters (Schedule of
Regulatory Matters (Schedule of Regulatory Assets) (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 7,306,203 | $ 2,764,150 |
Unrecovered Gas Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 37,191 | 110,372 |
Deferred Regulatory Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 2,751,339 | $ 2,653,778 |
Deferred Pension Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 4,517,673 |
Regulatory Matters (Schedule 38
Regulatory Matters (Schedule of Regulatory Costs) (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 7,306,203 | $ 2,764,150 |
Deferred Rate Case Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 897,942 | 971,364 |
Deferred Rate Case Reconciliations [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 1,853,397 | 1,682,413 |
Deferred Regulatory Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 2,751,339 | $ 2,653,778 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 7,306,203 | $ 2,764,150 |
Accumulated OCI reduction for regulatory asset established, net of income taxes | 2,748,238 | |
Regulatory asset amortizations | 219,042 | $ 274,135 |
Pension Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 3,665,926 | |
Pension and Other Postretirement Plans Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 4,517,673 | |
Regulatory asset amortizations | (35,000) | 131,000 |
Deferred Rate Case Reconciliations [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 1,853,397 | 1,682,413 |
Regulatory asset amortizations | $ 1,338,048 | $ 1,041,345 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) - USD ($) | Aug. 13, 2012 | Oct. 31, 2011 | Dec. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Nov. 30, 2013 |
Debt Instrument [Line Items] | ||||||
Stock options exercised, shares | 12,000 | 13,500 | ||||
Stock options exercised, price per share | $ 12.83 | $ 12.83 | ||||
Debt outstanding | $ 15,477,530 | $ 17,268,886 | ||||
Community Bank Notes Payable [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 1,050,000 | |||||
Maturity date | May 10, 2020 | |||||
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 | $ 501,931 | 618,168 | ||||
Five Star Bank Notes Payable [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 750,000 | |||||
Maturity date | Aug. 1, 2018 | |||||
Stated interest rate | 4.25% | |||||
Interest rate, spread on basis | 1.00% | 3.75% | ||||
Effective interest rate | 5.79% | |||||
Debt outstanding | $ 451,323 | 593,857 | ||||
Multiple Disbursement Term Note M&T Bank 2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 2,000,000 | |||||
Interest rate, spread on basis | 3.50% | 3.25% | ||||
Interest rate, floor | 4.25% | 4.25% | ||||
Effective interest rate | 4.25% | |||||
Debt outstanding | $ 1,313,318 | 1,498,988 | ||||
Term Loan Agreement Community Bank [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 2,450,000 | |||||
Interest rate, spread on basis | 3.00% | |||||
Interest rate, floor | 3.75% | |||||
Debt outstanding | $ 1,847,391 | 2,067,499 | ||||
Five Star Bank Promissory Note 1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 250,000 | |||||
Stated interest rate | 4.46% | |||||
Effective interest rate | 4.46% | |||||
Debt outstanding | $ 184,654 | 206,934 | ||||
Five Star Bank Promissory Note 2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 250,000 | |||||
Stated interest rate | 4.46% | |||||
Effective interest rate | 4.46% | |||||
Debt outstanding | $ 184,651 | 206,931 | ||||
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 | $ 6,000,000 | |||||
Interest rate, ceiling | 6.50% | |||||
Effective interest rate | 4.20% | |||||
Debt outstanding | $ 2,950,113 | 3,827,582 | ||||
M&T Promissory Note 2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 1,800,000 | |||||
Stated interest rate | 5.76% | |||||
Effective interest rate | 4.51% | |||||
Debt outstanding | $ 1,831,886 | 2,406,486 | ||||
Multiple Disbursement Term Note M&T Bank [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 4,000,000 | |||||
Maturity date | Dec. 3, 2018 | |||||
Effective interest rate | 4.18% | |||||
Debt outstanding | $ 1,972,221 | 2,170,363 | $ 2,329,223 | |||
Periodic payment amount, interest and principal | 23,438 | |||||
Multiple Disbursement Term Note and Credit Agreement M&T Bank [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 3,796,000 | |||||
Interest rate, spread on basis | 2.75% | |||||
Effective interest rate | 4.39% | |||||
Debt outstanding | $ 3,540,206 | 2,852,549 | ||||
Periodic payment amount, interest and principal | 39,257 | |||||
Proceeds from Issuance of Debt | $ 943,451 | |||||
Term Note and Credit Agreement M&T Bank [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 615,000 | |||||
Stated interest rate | 4.49% | |||||
Effective interest rate | 4.49% | |||||
Debt outstanding | $ 552,853 | 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 | $ 146,983 | $ 216,630 |
Long-term Debt (Schedule of Lon
Long-term Debt (Schedule of Long-term Debt) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2011 | Sep. 30, 2015 | Sep. 30, 2014 | Nov. 30, 2013 | |
Debt Instrument [Line Items] | ||||
Long term debt | $ 15,477,530 | $ 17,268,886 | ||
Less current installments | 2,923,133 | 2,697,140 | ||
Long-term debt less current installments | 12,554,397 | 14,571,746 | ||
Community Bank Notes Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 501,931 | 618,168 | ||
Effective interest rate | 4.50% | |||
Interest rate, floor | 4.50% | |||
Interest rate, ceiling | 6.25% | |||
Five Star Bank Notes Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 451,323 | 593,857 | ||
Effective interest rate | 5.79% | |||
Multiple Disbursement Term Note M&T Bank 2 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 1,313,318 | 1,498,988 | ||
Effective interest rate | 4.25% | |||
Interest rate, floor | 4.25% | 4.25% | ||
Term Loan Agreement Community Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 1,847,391 | 2,067,499 | ||
Interest rate, floor | 3.75% | |||
Five Star Bank Promissory Note 1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 184,654 | 206,934 | ||
Effective interest rate | 4.46% | |||
Five Star Bank Promissory Note 2 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 184,651 | 206,931 | ||
Effective interest rate | 4.46% | |||
M&T Promissory Note 1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 2,950,113 | 3,827,582 | ||
Effective interest rate | 4.20% | |||
Interest rate, ceiling | 6.50% | |||
M&T Promissory Note 2 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 1,831,886 | 2,406,486 | ||
Effective interest rate | 4.51% | |||
Multiple Disbursement Term Note M&T Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 1,972,221 | 2,170,363 | $ 2,329,223 | |
Effective interest rate | 4.18% | |||
Multiple Disbursement Term Note and Credit Agreement M&T Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 3,540,206 | 2,852,549 | ||
Effective interest rate | 4.39% | |||
Term Note and Credit Agreement M&T Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 552,853 | 602,899 | ||
Effective interest rate | 4.49% | |||
M&T Bank - Vehicle Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt | $ 146,983 | $ 216,630 | ||
Interest rate, floor | 4.37% | |||
Interest rate, ceiling | 5.00% |
Long-term Debt (Schedule of Agg
Long-term Debt (Schedule of Aggregates of Long-term Debt) (Details) | Sep. 30, 2015USD ($) |
Aggregate maturity of debt in fiscal year: | |
2,016 | $ 2,923,133 |
2,017 | 3,020,343 |
2,018 | 4,206,271 |
2,019 | 2,548,616 |
2,020 | 668,009 |
2021+ | $ 2,111,158 |
Lines of Credit and Short Ter43
Lines of Credit and Short Term Debt (Details) - USD ($) | Nov. 06, 2015 | Oct. 14, 2015 | Aug. 17, 2015 | Sep. 30, 2015 | Sep. 30, 2014 |
Line of Credit Facility [Line Items] | |||||
Short-term Debt | $ 9,003,599 | $ 4,614,541 | |||
Term Note and Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, spread on basis | 2.30% | ||||
Short-term Debt | $ 2,000,000 | ||||
Term Note and Agreement Two [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, spread on basis | 2.75% | ||||
Short-term Debt | $ 1,000,000 | ||||
Consolidated Term Note and Agreement [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, spread on basis | 2.75% | ||||
Short-term Debt | $ 3,000,000 | ||||
Community Bank line of credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit, maximum borrowing capacity | 8,500,000 | ||||
Line of credit outstanding | 7,003,599 | 4,614,541 | |||
Line of credit, maximum amount outstanding | $ 7,581,344 | $ 7,140,511 | |||
Interest rate, spread on basis | 2.50% | ||||
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 | 2.9905% | ||||
Weighted average interest rate during period | 2.90% | 3.17% |
Stockholders Equity (Details)
Stockholders Equity (Details) - USD ($) | Dec. 01, 2015 | Oct. 21, 2015 | Apr. 16, 2014 | Apr. 16, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2009 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jan. 10, 2014 | Dec. 31, 2013 | Nov. 12, 2013 | May. 28, 2009 |
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 | $ 5 | |||||||||||||||||
Shares issued under dividend reinvestment program | 6,995 | 7,219 | 7,433 | 5,689 | 3,976 | 2,319 | 761 | 34,392 | |||||||||||||
Shares issued in private placement | 19,463 | ||||||||||||||||||||
Proceeds from private placement | $ 29,785 | ||||||||||||||||||||
Value of shares issued under DRIP | 132,761 | ||||||||||||||||||||
Shares issued for services | $ 162,414 | ||||||||||||||||||||
Shares issued for stock-based director compensation | 10,442 | ||||||||||||||||||||
Shares issued for stock options exercised | 1,500 | ||||||||||||||||||||
Dividends payable | $ 354,924 | $ 327,819 | $ 354,924 | ||||||||||||||||||
Dividends payable, amount per share | $ 0.125 | $ 0.145 | $ 0.145 | $ 0.135 | $ 0.135 | $ 0.135 | $ 0.125 | ||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||
Shares issued for stock-based director compensation | 2,625 | ||||||||||||||||||||
Shares issued for stock options exercised | 9,000 | ||||||||||||||||||||
Proceeds from stock options exercised | $ 115,470 | ||||||||||||||||||||
Leatherstocking Gas Company LLC And Leatherstocking Pipeline Company LLC [Member] | |||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||
Issuance of common stock, shares | 526 | ||||||||||||||||||||
Anita G. Zucker [Member] | |||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||
Shares held | 214,451 | 214,451 | |||||||||||||||||||
Private Placement [Member] | |||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||
Issuance of common stock, shares | 150,000 | 75,000 | |||||||||||||||||||
Proceeds from private placement | $ 2,460,000 | ||||||||||||||||||||
Per share price of shares issued | $ 16.40 | $ 16.40 | |||||||||||||||||||
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) | Oct. 19, 2015USD ($) | Feb. 28, 2015USD ($)mi | Sep. 30, 2015USD ($)item | Sep. 30, 2015USD ($)item | Sep. 30, 2014USD ($) | Aug. 28, 2014USD ($) | Jul. 30, 2013USD ($) | Jul. 25, 2013USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||||
Combined assets | $ 71,415,778 | $ 71,415,778 | $ 62,522,061 | |||||
Combined liabilties | $ 12,967,927 | 12,967,927 | 10,095,485 | |||||
Combined net losses | 1,782,081 | 2,067,801 | ||||||
Investment in joint ventures during year | 1,130,000 | 800,000 | ||||||
Proceeds under long-term debt | 982,903 | 6,086,300 | ||||||
Proceeds from debt and investment | $ 1,395,448 | 3,414,282 | ||||||
Leatherstocking Gas Company LLC And Leatherstocking Pipeline Company LLC [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage of joint venture | 50.00% | 50.00% | ||||||
Agreement amount | $ 4,000,000 | $ 1,800,000 | $ 1,500,000 | |||||
Amount drawn on agreement | $ 4,000,000 | $ 4,000,000 | ||||||
Debt service coverage ratio that must be retained | 115.00% | 115.00% | ||||||
Combined assets | $ 11,900,000 | $ 11,900,000 | ||||||
Combined liabilties | $ 7,300,000 | 7,300,000 | ||||||
Combined net losses | $ (235,000) | |||||||
Franchises purchased | item | 16 | |||||||
Number of customers | item | 240 | 240 | ||||||
Percentage of borrowings required to be invested | 66.00% | |||||||
Investment in joint ventures during year | $ 850,000 | 500,000 | ||||||
Proceeds from lines of credit | 2,500,000 | $ 1,500,000 | ||||||
Length of gasline | mi | 1.5 | |||||||
Payments to acquire oil and gas property and equipment | $ 900,000 | |||||||
Proceeds under long-term debt | 540,000 | |||||||
Proceeds from contributions | $ 180,000 | $ 100,000 | ||||||
Proceeds from debt and investment | $ 1,130,000 | |||||||
Stated interest rate | 4.58% | 4.58% | ||||||
Leatherstocking Gas Company LLC And Leatherstocking Pipeline Company LLC [Member] | Subsequent Event [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Agreement amount | $ 500,000 | |||||||
Investment amount required to draw remaining agreement amount | $ 166,667 |
Investment in Joint Ventures (S
Investment in Joint Ventures (Schedule of Investment Activity) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Investment in Joint Ventures [Abstract] | ||
Beginning balance in investment in joint ventures | $ 1,280,757 | $ 587,678 |
Investment in joint ventures during year | 1,130,000 | 800,000 |
Income (loss) in joint ventures during year | (117,505) | (106,921) |
Ending balance in joint ventures | $ 2,293,252 | $ 1,280,757 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | Sep. 30, 2015USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating loss carry forwards | $ 6.4 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred and Current Income Tax Expense) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes [Abstract] | ||
Current | $ 78,000 | $ 70,000 |
Deferred | 991,631 | 1,240,705 |
Total actual tax expense | $ 1,069,631 | $ 1,310,705 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Reconciliation) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes [Abstract] | ||
Expected federal tax expense | $ 969,582 | $ 1,148,692 |
Regulatory adjustment | (55,600) | (80,054) |
Dividends received deduction | (11,433) | (12,665) |
State tax expense (net of federal) | 175,331 | 223,157 |
Other, net | (8,249) | 31,575 |
Total actual tax expense | $ 1,069,631 | $ 1,310,705 |
Federal corporate tax rate | 34.00% | |
State tax rate | 7.10% |
Income Taxes (Schedule of Inc50
Income Taxes (Schedule of Income Tax Assets and Liabilities) (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Deferred income tax assets: | ||
Unbilled revenue | $ 57,521 | $ 15,510 |
Deferred compensation reserve | 604,458 | 684,897 |
Post-retirement benefit obligations | $ 2,246,383 | 551,579 |
Comprehensive income | 1,563,865 | |
Inventories | $ 27,788 | 54,629 |
Deficiency of gas adjustment clause revenues billed | 85,262 | 121,316 |
NOL carryforwards | 2,597,946 | 3,146,186 |
Other | 1,285,010 | 407,984 |
Total deferred income tax assets | 6,904,368 | 6,545,966 |
Deferred income tax liabilities: | ||
Property, plant and equipment, principally due to differences in depreciation | 7,759,860 | 7,197,083 |
Pension benefit obligations | 1,298,794 | $ 238,880 |
Comprehensive income | 19,892 | |
Deferred rate expense and allocations | 365,091 | $ 438,469 |
Other | 1,054,445 | 111,166 |
Total deferred income tax liabilities | 10,498,082 | 7,985,598 |
Net deferred income tax liabilities | $ 3,593,714 | $ 1,439,632 |
Pension and Other Post-retire51
Pension and Other Post-retirement Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation | $ 1,492,488 | $ 1,666,415 | |
Funded status | 6,800,000 | 6,200,000 | |
Change in pre-tax accumulated net actuarial loss/(gain) and unrecognized prior service cost | 851,547 | ||
Accumulated items, before tax | 4,517,673 | 3,666,126 | |
Increase in other regulatory assets | 316,603 | 390,020 | |
Other comprehensive income, after tax | 2,427,126 | (359,694) | |
Regulatory assets | 7,306,203 | 2,764,150 | |
Pension expense | 970,000 | 970,000 | |
Amounts not included in prepaid pension cost | 89,746 | 227,024 | |
Regulatory receiveable | $ 123,174 | 147,168 | |
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 | 3.90% | ||
Change in accumulated benefit obligations with increase in health care costs | 5.70% | ||
Change in service and interest costs with decrease in health care costs | (3.20%) | ||
Change in accumulated benefit obligations with decrease in health care costs | (4.80%) | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other comprehensive income, before tax | $ 222,363 | ||
Other comprehensive income, after tax | 377,526 | ||
Pension and Other Postretirement Plans Costs [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Increase in other regulatory assets | 474,021 | ||
Regulatory assets | 4,517,673 | ||
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 13,757,839 | 13,675,154 | $ 12,224,984 |
Increase in pension benefit obligation due to change in Mortality Table assumption | 1,394,000 | ||
Funded status | 5,526,763 | 4,958,164 | |
Regulatory assets | 131,000 | ||
Regulatory liabilities | 35,000 | ||
Decrease in pension benefit obligation due to change in Mortality Table assumption and discount rate | (759,000) | ||
Expected contribution in 2016 | 960,819 | ||
Company contributions | $ 990,897 | $ 1,164,898 | |
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 | $ 1,295,660 | $ 1,264,378 | |
Company contributions | 64,261 | 60,000 | |
Rabbi Trust [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 2,102,600 | 2,256,953 | |
Stock included in deferred compensation plan | 51,185 | 51,185 | |
Increase in pension benefit obligation due to change in Mortality Table assumption | $ (171,000) | 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 | $ 87,456 | $ 87,712 |
Pension and Other Post-retire52
Pension and Other Post-retirement Benefit Plans (Schedule of Pension and Post-retirement Plan Benefits Reconciliation) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Change in plan assets: | ||
Funded status | $ (6,800,000) | $ (6,200,000) |
Pension Benefits [Member] | ||
Change in benefit obligation: | ||
Benefit obligation at beginning of year | 18,633,318 | 17,099,633 |
Service cost | 337,039 | 306,274 |
Interest cost | $ 919,156 | $ 806,489 |
Participant contributions | ||
Actuarial (gain) loss | $ 300,931 | $ 1,299,938 |
Benefits paid | $ (905,842) | $ (879,016) |
Curtailments | ||
Benefit obligations at end of year | $ 19,284,602 | $ 18,633,318 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 13,675,154 | 12,224,984 |
Actual return on plan assets | 4,126 | 1,164,288 |
Company contributions | $ 990,897 | $ 1,164,898 |
Participant contributions | ||
Benefits paid | $ (905,842) | $ (879,016) |
Fair value of plan assets at end of year | 13,757,839 | 13,675,154 |
Funded status | (5,526,763) | (4,958,164) |
Unrecognized net actuarial loss/ (gain) | 4,403,014 | 3,572,106 |
Unrecognized prior service cost | 9,797 | 19,203 |
(Accrued) prepaid benefit cost | $ (1,113,952) | $ (1,366,855) |
Accrued contribution | ||
Amounts recognized in the balance sheet consists of: | ||
Prepaid (accrued) benefit liability | $ (5,526,763) | $ (4,958,164) |
(Accrued)/prepaid pension cost as of beginning of fiscal year | (1,366,855) | (1,894,275) |
Pension (cost) income | (986,115) | (737,994) |
Contributions | 990,897 | 1,164,898 |
Change in receivable contribution | $ 248,121 | $ 100,516 |
Net benefits paid | ||
Change in additional minimum liability | ||
(Accrued)/prepaid pension cost as of end of fiscal year | $ (1,113,952) | $ (1,366,855) |
Post-retirement Benefits [Member] | ||
Change in benefit obligation: | ||
Benefit obligation at beginning of year | 1,264,378 | 1,118,819 |
Service cost | 20,979 | 16,096 |
Interest cost | 48,673 | 52,682 |
Participant contributions | 63,740 | 62,600 |
Actuarial (gain) loss | 25,891 | 136,781 |
Benefits paid | $ (128,001) | $ (122,600) |
Curtailments | ||
Benefit obligations at end of year | $ 1,295,660 | $ 1,264,378 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | ||
Actual return on plan assets | ||
Company contributions | $ 64,261 | $ 60,000 |
Participant contributions | 63,740 | 62,600 |
Benefits paid | $ (128,001) | $ (122,600) |
Fair value of plan assets at end of year | ||
Funded status | $ (1,295,660) | $ (1,264,378) |
Unrecognized net actuarial loss/ (gain) | (45,221) | (79,013) |
Unrecognized prior service cost | 150,083 | 153,630 |
(Accrued) prepaid benefit cost | $ (1,190,798) | $ (1,189,761) |
Accrued contribution | ||
Amounts recognized in the balance sheet consists of: | ||
Prepaid (accrued) benefit liability | $ (1,295,660) | $ (1,264,378) |
(Accrued)/prepaid pension cost as of beginning of fiscal year | (1,189,761) | (1,201,413) |
Pension (cost) income | $ (70,313) | $ (56,348) |
Contributions | ||
Change in receivable contribution | ||
Net benefits paid | $ 69,276 | $ 68,000 |
Change in additional minimum liability | ||
(Accrued)/prepaid pension cost as of end of fiscal year | $ (1,190,798) | $ (1,189,761) |
Pension and Other Post-retire53
Pension and Other Post-retirement Benefit Plans (Schedule of Fair Value of Plan Assets) (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | $ 13,757,839 | $ 13,675,154 | $ 12,224,984 |
Pension Benefits [Member] | Cash and equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 175,950 | 333,449 | |
Pension Benefits [Member] | Government and agency issues [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 2,920,406 | 2,084,850 | |
Pension Benefits [Member] | Corporate bonds [ Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 3,691,645 | 3,523,711 | |
Pension Benefits [Member] | Fixed index funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 324,804 | 609,911 | |
Pension Benefits [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | 540,732 | 1,095,214 | |
Pension Benefits [Member] | Equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at end of year | $ 6,104,302 | $ 6,028,019 | |
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 Post-retire54
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, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Pension Benefits [Member] | |||
Amortization of unrecognized net (gain)/loss for fiscal year ending September 30, 2015: | |||
Projected benefit obligation as of September 30, 2015 | $ 19,284,602 | $ 18,633,318 | $ 17,099,633 |
Plan assets at September 30, 2015 | (13,757,839) | (13,675,154) | (12,224,984) |
Unrecognized (gain)/loss as of September 30, 2015 | 4,403,014 | 3,572,106 | |
Ten percent of greater of (1) or (2) | 1,928,460 | ||
Unamortized (gain)/loss subject to amortization - (3) minus (4) | $ 2,474,554 | ||
Active future service of active plan participants expected to receive benefits | 9 years 9 months 14 days | ||
Minimum amortization of unamortized net (gain)/loss - (5)/(6) | $ 252,763 | ||
Amortization of (gain)/loss for 2015-2016 | 672,265 | ||
Post-retirement Benefits [Member] | |||
Amortization of unrecognized net (gain)/loss for fiscal year ending September 30, 2015: | |||
Projected benefit obligation as of September 30, 2015 | $ 1,295,660 | $ 1,264,378 | $ 1,118,819 |
Plan assets at September 30, 2015 | |||
Unrecognized (gain)/loss as of September 30, 2015 | $ (45,221) | $ (79,013) | |
Amortization period | 10 years | ||
Amortization of (gain)/loss for 2015-2016 | $ (4,522) |
Pension and Other Post-retire55
Pension and Other Post-retirement Benefit Plans (Schedule of Net Period Benefit Cost (Benefit)) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Benefits [Member] | ||
Components of net period benefit cost (benefit): | ||
Service cost | $ 343,039 | $ 311,274 |
Interest cost | 919,156 | 806,489 |
Expected return on plan assets | (1,027,565) | (926,361) |
Amortization of prior service | 9,406 | 10,749 |
Amortization of unrecognized actuarial loss (gain) | 493,958 | 435,327 |
Net periodic benefit cost (benefit) | 737,994 | 637,478 |
Post-retirement Benefits [Member] | ||
Components of net period benefit cost (benefit): | ||
Service cost | 20,979 | 16,096 |
Interest cost | 48,673 | 52,682 |
Amortization of prior service | 3,547 | 3,547 |
Amortization of unrecognized actuarial loss (gain) | (7,901) | (23,977) |
Net periodic benefit cost (benefit) | $ 65,298 | $ 48,348 |
Pension and Other Post-retire56
Pension and Other Post-retirement Benefit Plans (Schedule of Weighted Average Assumptions) (Details) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Benefits [Member] | ||
Weighted average assumptions used to determine period cost at September 30: | ||
Discount rate | 5.22% | 5.07% |
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 | 4.00% | 3.95% |
Salary increases | ||
Expected return on assets |
Pension and Other Post-retire57
Pension and Other Post-retirement Benefit Plans (Schedule of Estimated Plan Benefit Payments) (Details) | Sep. 30, 2015USD ($) |
Estimated pension plan benefit payments in fiscal year; | |
2,016 | $ 1,103,000 |
2,017 | 1,141,000 |
2,018 | 1,161,000 |
2,019 | 1,226,000 |
2,020 | 1,337,000 |
2021+ | $ 7,057,000 |
Stock Options (Details)
Stock Options (Details) - $ / shares | Oct. 21, 2015 | Sep. 30, 2015 | Sep. 30, 2014 |
Number of Shares Remaining Options | |||
Outstanding | 13,500 | 13,500 | |
Options granted | |||
Options exercised | 1,500 | ||
Options expired | |||
Outstanding | 12,000 | 13,500 | |
Exercisable | 12,000 | 13,500 | |
Weighted Average Exercise Price | |||
Outstanding | $ 12.83 | $ 12.83 | |
Options exercised | 12.83 | ||
Outstanding | 12.83 | $ 12.83 | |
Exercisable | $ 12.83 | $ 12.83 | |
Average Remaining Contractual Term | |||
Outstanding | 3 months | 1 year 3 months | |
Exercisable | 3 months | 1 year 3 months | |
Subsequent Event [Member] | |||
Number of Shares Remaining Options | |||
Options exercised | 9,000 |
Commitments (Details)
Commitments (Details) | 12 Months Ended | |
Sep. 30, 2015USD ($)Dekathermsitem | Sep. 30, 2014USD ($) | |
Commitments [Line Items] | ||
Storage Capacity Maintained | Dekatherms | 736,000 | |
Energy in storage | Dekatherms | 654,040 | |
Gas stored underground | $ 1,182,955 | $ 2,291,665 |
Customers | item | 14,800 | |
M&T Term Loan [Member] | ||
Commitments [Line Items] | ||
Debt term | 5 years | |
Borrowing amount | $ 12,000,000 | |
Interest rate, spread on basis | 3.00% | |
M&T Line of Credit [Member] | ||
Commitments [Line Items] | ||
Borrowing amount | $ 2,000,000 | |
Interest rate, spread on basis | 2.75% |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended |
Sep. 30, 2015USD ($) | |
Expenditures Paid on Behalf of Corning [Member] | |
Related Party Transaction [Line Items] | |
Amount of transaction | $ 118,108 |
Shares Sold for Director Services [Member] | |
Related Party Transaction [Line Items] | |
Amount of transaction | 10,500 |
Director [Member] | |
Related Party Transaction [Line Items] | |
Legal services | $ 174,000 |
Subsequent Events (Details)
Subsequent Events (Details) | Dec. 01, 2015shares | Nov. 06, 2015USD ($) | Oct. 21, 2015USD ($)shares | Oct. 19, 2015USD ($) | Oct. 14, 2015USD ($) | Oct. 13, 2015USD ($)item | Aug. 17, 2015USD ($) | Sep. 30, 2015USD ($)itemshares | Sep. 30, 2014USD ($)shares | Apr. 30, 2017USD ($) | May. 01, 2017USD ($) | Apr. 30, 2016USD ($) | Aug. 28, 2014USD ($) | Jul. 30, 2013USD ($) | Jul. 25, 2013USD ($) |
Subsequent Event [Line Items] | |||||||||||||||
Customers | item | 14,800 | ||||||||||||||
Borrowings under lines-of-credit and short-term debt | $ 9,003,599 | $ 4,614,541 | |||||||||||||
Shares issued for stock options exercised | shares | 1,500 | ||||||||||||||
Shares issued for stock-based director compensation | shares | 10,442 | ||||||||||||||
Leatherstocking Gas Company LLC And Leatherstocking Pipeline Company LLC [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Agreement amount | $ 4,000,000 | $ 1,800,000 | $ 1,500,000 | ||||||||||||
Term Note and Agreement [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Borrowings under lines-of-credit and short-term debt | $ 2,000,000 | ||||||||||||||
Interest rate, spread on basis | 2.30% | ||||||||||||||
Subsequent Event [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Shares issued for stock options exercised | shares | 9,000 | ||||||||||||||
Proceeds from stock options exercised | $ 115,470 | ||||||||||||||
Shares issued for stock-based director compensation | shares | 2,625 | ||||||||||||||
Subsequent Event [Member] | Pike County Light & Power Company [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Customers | item | 5,800 | ||||||||||||||
Purchase price | $ 13,117,000 | ||||||||||||||
Working capital adjustment | 3,000,000 | ||||||||||||||
Bonds assumed | $ 3,200,000 | ||||||||||||||
Subsequent Event [Member] | Scenario, Forecast [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Deferred rate case reconciliations | $ 575,000 | $ 1,041,000 | $ 466,000 | ||||||||||||
Net effect of rate change | $ 426,000 | ||||||||||||||
Subsequent Event [Member] | Leatherstocking Gas Company LLC And Leatherstocking Pipeline Company LLC [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Agreement amount | $ 500,000 | ||||||||||||||
Debt term | 5 years | ||||||||||||||
Investment amount required to draw remaining agreement amount | $ 166,667 | ||||||||||||||
Subsequent Event [Member] | Term Note and Agreement Two [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Borrowings under lines-of-credit and short-term debt | $ 1,000,000 | ||||||||||||||
Interest rate, spread on basis | 2.75% | ||||||||||||||
Subsequent Event [Member] | Consolidated Term Note and Agreement [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Borrowings under lines-of-credit and short-term debt | $ 3,000,000 | ||||||||||||||
Interest rate, spread on basis | 2.75% |