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Related Party Transactions
12 Months Ended
Sep. 30, 2018
Related Party Transactions [Abstract]  
Related Party Transactions
RELATED PARTY TRANSACTIONS

UGI provides certain financial and administrative services to UGI Utilities. UGI bills UGI Utilities monthly for all direct expenses incurred by UGI on behalf of UGI Utilities and an allocated share of indirect corporate expenses incurred or paid with respect to services provided to UGI Utilities. The allocation of indirect UGI corporate expenses to UGI Utilities utilizes a weighted, three-component formula comprising revenues, operating expenses and net assets employed and considers UGI Utilities’ relative percentage of such items to the total of such items for all UGI operating subsidiaries for which general and administrative services are provided. Management believes that this allocation method is reasonable and equitable to UGI Utilities and this allocation method has been accepted by the PAPUC in past rate case proceedings and management audits as a reasonable method of allocating such expenses. UGI Utilities also engages in other services with various other affiliates pursuant to arrangements authorized by the PAPUC using similar allocation or market-based pricing methods. These billed expenses are classified as “Operating and administrative expenses — related parties” in the Consolidated Statements of Income. In addition, UGI Utilities provides limited administrative services to UGI and certain of UGI’s subsidiaries under PAPUC affiliated interest agreements. Amounts billed to these entities by UGI Utilities during Fiscal 2018, Fiscal 2017 and Fiscal 2016 totaled $5,305, $4,346 and $5,069, respectively.

UGI Utilities is a party to SCAAs with Energy Services which have terms of up to three years. At September 30, 2018, UGI Utilities was a party to four SCAAs with Energy Services, and, during the periods covered by the financial statements, was a party to other SCAAs with Energy Services. Under the SCAAs, UGI Utilities has, among other things, released certain storage and transportation contracts (subject to recall for operational purposes) to Energy Services for the terms of the SCAAs. UGI Utilities also transferred certain associated storage inventories upon the commencement of the SCAAs, receives a transfer of storage inventories at the end of the SCAAs, and makes payments associated with refilling storage inventories during the term of the SCAAs. UGI Utilities incurred costs associated with Energy Services’ SCAAs during Fiscal 2018, Fiscal 2017 and Fiscal 2016 totaling $19,854, $21,424 and $12,739, respectively. Energy Services, in turn, provides a firm delivery service and makes certain payments to UGI Utilities for its various obligations under the SCAAs. During Fiscal 2018, Fiscal 2017 and Fiscal 2016, these payments totaled $2,824, $2,747 and $2,002, respectively. In conjunction with the SCAAs, UGI Utilities received security deposits from Energy Services. At September 30, 2018 and 2017, the amounts of such security deposits, which are included in “Other current liabilities” on the Consolidated Balance Sheets, were $11,040.
UGI Utilities reflects the historical cost of the gas storage inventories and any exchange receivable from Energy Services (representing amounts of natural gas inventories used but not yet replenished by Energy Services) on its balance sheet under the caption “Inventories.” At September 30, 2018 and 2017, the carrying values of these gas storage inventories, comprising approximately 6.7 bcf and 6.8 bcf of natural gas, were $17,701 and $19,323, respectively.

UGI Utilities has gas supply and delivery service agreements with Energy Services pursuant to which Energy Services provides certain gas supply and related delivery service to Gas Utility primarily during the heating season months of November through March. The aggregate amount of these transactions (exclusive of transactions pursuant to the SCAAs) during Fiscal 2018, Fiscal 2017 and Fiscal 2016 totaled $93,577, $76,010 and $63,331, respectively.

From time to time, UGI Utilities sells natural gas or pipeline capacity to Energy Services. During Fiscal 2018, Fiscal 2017 and Fiscal 2016, revenues associated with such sales to Energy Services totaled $103,667, $50,948 and $30,743, respectively. Also from time to time, UGI Utilities purchases natural gas, pipeline capacity and electricity from Energy Services (in addition to those transactions already described above) and purchases a firm storage service from UGI Storage Company, a subsidiary of Energy Services, under one-year agreements. During Fiscal 2018, Fiscal 2017 and Fiscal 2016, such purchases totaled $156,794, $84,402 and $35,067, respectively.