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Employee Benefit Plans
 12 Months Ended
Sep. 30, 2020
Retirement Benefits [Abstract]  
Employee Benefit Plans EMPLOYEE BENEFIT PLANS
The Company sponsors both a noncontributory pension plan and a postretirement plan. The pension plan covers all employees hired prior to January 2017 and benefits fully vest after 5 years of credited service. Benefits paid to retirees are based on age at retirement, years of service and average compensation. Effective January 1, 2017, a "soft freeze" to the pension plan was implemented, and employees hired on or after that date are no longer eligible to participate. Commensurate with the "soft freeze" in the pension plan, the Company amended its 401(k) Plan, allowing management to authorize a discretionary contribution to the 401(k) account for those employees hired on or after January 1, 2017. The amount, if any, of this discretionary contribution would be determined each year and would be applied to the eligible employees at the end of the calendar year. This Company contribution would be in addition to any employee elected deferrals and employer match as provided for under the 401(k) Plan.
The postretirement plan provides certain health care, supplemental retirement and life insurance benefits to retired employees who meet specific age and service requirements. Employees hired prior to January 1, 2000 are eligible to participate in the postretirement plan. Employees must have a minimum of 10 years of service and retire after attaining the age of 55 in order to vest in the postretirement plan. Retiree contributions to the plan are based on the number of years of service to the Company as determined under the pension plan.
Employers who sponsor defined benefit plans must recognize the funded status of defined benefit pension and other postretirement plans as an asset or liability in their statements of financial position and recognize changes in that funded status in the year in which the changes occur through comprehensive income. For pension plans, the benefit obligation is the projected benefit obligation, and for other postretirement plans, the benefit obligation is the accumulated benefit obligation. The Company established a regulatory asset for the portion of the obligation expected to be recovered in rates in future periods. The regulatory asset is adjusted for the recognition of actuarial gains and losses. The portion of the obligation attributable to the unregulated operations of the holding company is recognized in other comprehensive income.
The following tables set forth the benefit obligation, fair value of plan assets, the funded status of the plans, amounts recognized in the Company’s consolidated financial statements and the assumptions used:
 Pension PlanPostretirement Plan
 2020201920202019
Accumulated benefit obligation$34,821,069 $30,927,973 $17,925,409 $18,030,399 
Change in benefit obligation:
Benefit obligation at beginning of year$35,550,987 $28,850,299 $18,030,399 $16,207,322 
Service cost691,602 537,268 167,879 132,882 
Interest cost1,062,227 1,166,728 531,480 648,944 
Actuarial loss (gain)3,620,400 5,901,915 (325,269)1,530,522 
Benefit payments, net of retiree contributions(927,214)(905,223)(479,080)(489,271)
Benefit obligation at end of year$39,998,002 $35,550,987 $17,925,409 $18,030,399 
Change in fair value of plan assets:
Fair value of plan assets at beginning of year$33,586,671 $28,184,697 $13,082,610 $12,924,957 
Actual return on plan assets, net of taxes4,198,174 3,907,197 1,112,723 346,924 
Employer contributions800,000 2,400,000 400,000 300,000 
Benefit payments, net of retiree contributions(927,214)(905,223)(479,080)(489,271)
Fair value of plan assets at end of year$37,657,631 $33,586,671 $14,116,253 $13,082,610 
Funded status$(2,340,371)$(1,964,316)$(3,809,156)$(4,947,789)
Amounts recognized in the consolidated balance sheet consist of:
Noncurrent liabilities$(2,340,371)$(1,964,316)$(3,809,156)$(4,947,789)
Amounts recognized in accumulated other comprehensive loss:
Net actuarial loss, net of tax$1,181,744 $1,047,063 $614,987 $777,717 
Total amounts included in other comprehensive loss, net of tax$1,181,744 $1,047,063 $614,987 $777,717 
Amounts deferred to a regulatory asset:
Net actuarial loss$6,977,944 $6,356,201 $2,755,333 $3,661,168 
Amounts recognized as regulatory assets$6,977,944 $6,356,201 $2,755,333 $3,661,168 

The Company expects that approximately $80,000 before tax, of AOCI will be recognized in net periodic benefit costs in fiscal 2021 and approximately $577,000 of amounts deferred as regulatory assets will be amortized and recognized in net periodic benefit costs in fiscal 2021.
The following table details the actuarial assumptions used in determining the projected benefit obligations and net benefit cost of the pension and the accumulated benefit obligations and net benefit cost of the postretirement plan:
 Pension PlanPostretirement Plan
 2020201920202019
Assumptions used to determine benefit obligations:
Discount rate2.47 %3.03 %2.44 %3.00 %
Expected rate of compensation increase4.00 %4.00 %N/AN/A
Assumptions used to determine benefit costs:
Discount rate3.03 %4.11 %3.00 %4.09 %
Expected long-term rate of return on plan assets5.50 %5.50 %4.26 %4.30 %
Expected rate of compensation increase4.00 %4.00 %N/AN/A

To develop the expected long-term rate of return on assets assumption, the Company, with input from the Plans' actuaries and investment advisors, considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of each plan’s portfolio.
Components of net periodic benefit cost are as follows:
 Pension PlanPostretirement Plan
 2020201920202019
Service cost$691,602 $537,268 $167,879 $132,882 
Interest cost1,062,227 1,166,728 531,480 648,944 
Expected return on plan assets(1,836,623)(1,549,437)(550,394)(547,218)
Recognized loss455,744 158,599 237,371 123,805 
Net periodic benefit cost$372,950 $313,158 $386,336 $358,413 

Service cost is included in operation and maintenance expense of the consolidated income statement. All other components of net periodic benefit costs are included in the other income, net line.
The assumed health care cost trend rates used in measuring the accumulated benefit obligation for the postretirement plan are presented below:
 Pre 65Post 65
 2020201920202019
Health care cost trend rate assumed for next year7.00 %7.00 %5.20 %5.20 %
Rate to which the cost trend is assumed to decline (the ultimate trend rate)5.50 %5.50 %5.20 %5.20 %
Year that the rate reaches the ultimate trend rate2023202220202019

The health care cost trend rate assumptions could have a significant effect on the amounts reported. A change of 1% would have the following effects: 
1% Increase1% Decrease
Effect on total service and interest cost components$132,000 $(105,000)
Effect on accumulated postretirement benefit obligation3,042,000 (2,454,000)

The primary objectives of both plans' investment policies are to maintain investment portfolios that diversify risk through prudent asset allocation parameters, achieve asset returns that meet or exceed the corresponding actuarial assumptions, achieve asset returns that are competitive with like institutions employing similar investment strategies and meet expected future benefits in both the short-term and long-term. In 2020, the Company revised its targeted pension plan investment allocation by rebalancing the assets from a 40% equity allocation to a 30% equity allocation. This change in investment allocation corresponds with the Company's strategy to continue to match the duration of the pension plan's assets with its liabilities. This change in investment allocation will continue to reduce investment risk and volatility in asset performance while providing for some asset growth. As a result, the Company's assumed long-
term rate of return on pension assets for fiscal 2021 was adjusted down to 5.4%. The investment policy continues to provide for a range of investment allocations to allow for continued flexibility in responding to market conditions.
The Company’s target and actual asset allocation in the pension and postretirement plans as of September 30, 2020 and 2019 were: 
 Pension PlanPostretirement Plan
 Target20202019Target20202019
Asset category:
Equity securities30 %30 %40 %50 %51 %49 %
Debt securities70 %69 %59 %50 %48 %50 %
Cash— %1 %1 %— %1 %1 %
Other— %— %— %— %— %— %

The assets of the plans are invested in mutual funds. The Company uses the fair value hierarchy described in Note 1 to classify these assets. The mutual funds are included under Level 1 in the fair value hierarchy as their fair values are determined based on individual prices for each security that comprises the mutual funds. The common and collective trust funds are included under Level 2. The following tables contains the fair value classifications of the plans' assets:
  Pension Plan
Fair Value Measurements - September 30, 2020
 Fair ValueLevel 1Level 2Level 3
Asset Class:
Cash$339,287 $339,287 $— $— 
Common and Collective Trust and Pooled Funds:
Bonds
Liability Driven Investment26,038,966 — 26,038,966 — 
Equities
Domestic Large Cap Growth3,462,841 — 3,462,841 — 
Domestic Large Cap Value3,351,694 — 3,351,694 — 
Domestic Small/Mid Cap Core1,665,005 — 1,665,005 — 
Foreign Large Cap Value1,473,427 — 1,473,427 — 
        Mutual Funds:
Equities
Foreign Large Cap Growth1,047,274 1,047,274 — — 
Foreign Large Cap Value279,137 279,137 — — 
Total$37,657,631 $1,665,698 $35,991,933 $— 
  Pension Plan
Fair Value Measurements - September 30, 2019
 Fair ValueLevel 1Level 2Level 3
Asset Class:
Cash$371,780 $371,780 $— $— 
Common and Collective Trust and Pooled Funds:
Bonds
Liability Driven Investment19,702,561 — 19,702,561 — 
Equities
Domestic Large Cap Growth4,069,197 — 4,069,197 — 
Domestic Large Cap Value4,055,518 — 4,055,518 — 
Domestic Small/Mid Cap Core2,032,084 — 2,032,084 — 
Foreign Large Cap Value1,783,990 — 1,783,990 — 
Mutual Funds:
Equities
Foreign Large Cap Growth1,227,981 1,227,981 — — 
Foreign Large Cap Value343,560 343,560 — — 
Total$33,586,671 $1,943,321 $31,643,350 $— 

  Postretirement Plan
Fair Value Measurements - September 30, 2020
 Fair ValueLevel 1Level 2Level 3
Asset Class:
Cash$73,908 $73,908 $— $— 
Mutual Funds
Bonds
Domestic Fixed Income6,163,808 6,163,808 — — 
Foreign Fixed Income638,709 638,709 — — 
Equities
Domestic Large Cap Growth2,197,839 2,197,839 — — 
Domestic Large Cap Value2,119,433 2,119,433 — — 
Domestic Small/Mid Cap Growth262,726 262,726 — — 
Domestic Small/Mid Cap Value235,216 235,216 — — 
Domestic Small/Mid Cap Core552,607 552,607 — — 
Foreign Large Cap Growth548,967 548,967 — — 
Foreign Large Cap Value1,224,420 1,224,420 — — 
Foreign Large Cap Core77,471 77,471 — — 
Other21,149 — 21,149 — 
Total$14,116,253 $14,095,104 $21,149 $— 
  Postretirement Plan
Fair Value Measurements - September 30, 2019
 Fair ValueLevel 1Level 2Level 3
Asset Class:
Cash$66,860 $66,860 $— $— 
Mutual Funds
Bonds
Domestic Fixed Income5,987,248 5,987,248 — — 
Foreign Fixed Income611,196 611,196 — — 
Equities
Domestic Large Cap Growth1,909,836 1,909,836 — — 
Domestic Large Cap Value1,931,615 1,931,615 — — 
Domestic Small/Mid Cap Growth210,251 210,251 — — 
Domestic Small/Mid Cap Value214,034 214,034 — — 
Domestic Small/Mid Cap Core464,526 464,526 — — 
Foreign Large Cap Growth489,286 489,286 — — 
Foreign Large Cap Value1,098,992 1,098,992 — — 
Foreign Large Cap Core70,782 70,782 — — 
Other27,984 — 27,984 — 
Total$13,082,610 $13,054,626 $27,984 $— 

Each mutual fund or common collective trust fund has been categorized based on its primary investment strategy.

The Company expects to contribute $500,000 to its pension plan and $400,000 to its postretirement plan in fiscal 2021.
The following table reflects expected future benefit payments:
Fiscal year ending September 30Pension
Plan		Postretirement
Plan
2021$1,043,787 $568,170 
20221,133,470 605,966 
20231,221,341 666,049 
20241,320,157 678,659 
20251,416,485 684,989 
2026-20308,355,472 3,637,984 

The Company sponsors a 401k Plan covering all employees who elect to participate. Employees may contribute from 1% to 50% of their annual compensation to the 401k Plan, limited to a maximum annual amount as set periodically by the IRS. The Company matches 100% of the participant’s first 4% of contributions and 50% on the next 2% of contributions. The Company also provided discretionary contributions for those employees hired on or after January 1, 2017. The following table reflects the Company's contributions:
Years Ended September 30,
20202019
Matching contribution$364,773 $348,369 
Discretionary contribution18,313 21,829