Line-of-Credit

12 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Line-of-Credit

LINE-OF-CREDIT

In March 2020, Roanoke Gas renewed its unsecured line-of-credit agreement, which was scheduled to expire March 31, 2021. The new agreement is for a two-year term expiring March 31, 2022 with a maximum borrowing limit of $28,000,000. Amounts drawn against the agreement are considered to be non-current, as the balance under the line-of-credit is not subject to repayment within the next 12-month period. The agreement has a variable interest rate based on 30-day LIBOR plus 100 basis points, an availability fee of 15 basis points and provides multi-tiered borrowing limits associated with the seasonal borrowing demands of the Company.

The Company's total available borrowing limits for the remaining term are as follows:

As of	Available Line-of-Credit
September 30, 2020	$	19,000,000
March 1, 2021	15,000,000
July 20, 2021	20,000,000
September 20, 2021	28,000,000

A summary of the line-of-credit follows:

	September 30
	2020			2019
Available line-of-credit at year-end	$	19,000,000		$	22,000,000
Outstanding balance at year-end	9,143,606			8,172,473
Highest month-end balance outstanding	12,983,210			15,801,798
Average daily balance	3,286,033			6,049,527
Average rate of interest during year on outstanding balances	2.16		%	3.40		%
Interest rate at year-end	1.15		%	3.02		%
Interest rate on unused line-of-credit	0.15		%	0.15		%

Associated with the line-of-credit is a credit agreement that contains various representations, warranties and covenants including a requirement that the Company maintain an interest coverage ratio of not less than 1.5 to 1 and a long-term debt to long-term capitalization ratio of less than 65%.