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280672
39418
1199712
2220098
2220098
197875
0.01
0.01
0.01
0.01
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(6) Long-term Debt
</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Long-term debt, including
the current portion, was as follows at September 30, 2016 and 2015:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note payable - variable rate with 4.5% floor
with monthly</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; padding-left: 5.4pt"><font style="color: Black">installments through May 2020</font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 12%; text-align: right"><font style="color: Black">—  </font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 12%; text-align: right"><font style="color: Black">501,931</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 5.79% with monthly installments
through</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">August 2018</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">451,323</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - variable rate with 4.25% floor,
monthly</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">installments through November 2016</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,313,318</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - variable rate with 3.75% floor,
monthly</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">installments through November 2017</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,847,391</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 4.46% with monthly installments
through</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">July 2017, then refinanced at new rate</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">184,654</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 4.46% with monthly installments
through</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">July 2017, then refinanced at new rate</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">184,651</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 4.2% with monthly installments
through</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">November 2018</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,950,113</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 4.51% with monthly installments
through</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">September 2018</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,831,886</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 4.18% with monthly installments
through</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">November 2018</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,972,221</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 4.39% with monthly installments</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">through November 2019</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">3,540,206</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 4.49% with monthly installments</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">through July 2019</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">552,853</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">M&T Bank - vehicle loans bearing interest
at rates ranging</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">from 4.37% to 5%</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">53,937</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">146,983</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - variable calculated quarterly
with monthly</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Installments through January 2022</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">17,400,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - variable calculated quarterly
with monthly</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Installments through January 2021</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">4,200,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Bond Payable - 7.07% paid semi-annually with
principal</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">due October 2018</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">3,200,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - variable calculated quarterly
with monthly</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Installments through August 2021</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">12,000,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total long-term debt</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">36,853,937</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">15,477,530</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Less current installments</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">5,558,156</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">2,923,133</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Long-term debt less current installments</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">31,295,781</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">12,554,397</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">  </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0">The
aggregate maturities of long-term debt for each of the five years subsequent to September
30, 2016 are as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="7" style="font: 12pt Times New Roman, Times, Serif"><p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"> </font></p></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 43%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2017</font></td><td style="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 43%; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 2%; font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="width: 9%; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt; color: Black">5,558,156</font></td><td style="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2018</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt; color: Black">3,745,604</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2019</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt; color: Black">3,812,603</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2020</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt; color: Black">3,894,393</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2021</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt; color: Black">12,055,575</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2022+</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt; color: Black">7,787,606</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">On January 27, 2016,
we entered into an agreement with Manufacturers and Traders Trust Company (“M&T”) in the amount of $17.4 million
to consolidate all previous term debt into one loan. As collateral, the Gas Company granted M&T a security interest in all
utility property, including plant and equipment, contract rights, easements and rights of way of the Gas Company. The agreement
includes the following covenants to be measured quarterly: (i) maintain a ratio of total funded debt to EBITDA (earnings before
interest, income taxes, depreciation and amortizations) of not greater than 3.75 to 1.0 and (ii) maintain cash flow coverage of
not less than 1.1 to 1.0 based on the Company’s trailing twelve month operating performance and fiscal operating statements.
The interest rate is a variable rate determined by the Gas Company’s funded debt to EBITDA ratio calculated ninety days
after the end of each quarter added to the daily LIBOR rate. Until the first rate adjustment on March 31, 2016, the rate was 2.4%.
On April 1, 2016 the rate continued at 2.4% and was 3.2% at September 30, 2016. This note will be due as interest only for the
first year. In February 2017, the first of fifty-nine equal monthly principal payments of $207,143 along with the variable accrued
interest will be due. In the sixtieth month there will be a final payment due equal to all outstanding principal and interest.
Only the difference between the amount of the note and the long term debt refinanced by the note has been recognized as a cash
item on the Consolidated Statements of Cash Flow. The Gas Company will owe a pre-payment penalty on payment of unpaid principal
made in advance of the maturity date and must give at least a three day notice prior to the payment.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Also on January 27,
2016, the Gas Company entered into an agreement with M&T in the amount of $4.2 million for a multiple disbursement note to
refinance seventy percent of the NYPSC mandated 2015 construction projects with no additional collateral pledged. All amounts
have been borrowed as of March 31, 2016. A NYPSC capital expenditure tracker report was required to receive any advances on this
note. Interest will be a variable rate determined by the Gas Company’s funded debt to EBITDA ratio calculated ninety days
after the end of each quarter added to the daily LIBOR rate. Until the first rate adjustment on March 31, 2016, the rate was 2.4%.
This rate continued at April 1, 2016 and was 3.2% at September 30, 2016. Interest only will be due for the first twelve months
then will convert to a term loan payable in forty-seven equal payments based on a seven year amortization schedule with a final
payment of all outstanding principal and interest due. Since this note replaced a $4.2 million short term note, it has not been
recognized as a financing activity on the Consolidated Statements of Cash Flow. The Gas Company will owe a pre-payment penalty
on payment of unpaid principal made in advance of the maturity date and must give at least a three day notice prior to the payment.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The Gas Company entered
into an additional $4.2 million Multiple Disbursement Term Note with M&T Bank on August 31, 2016 which permits draws from
time to time in accordance with its terms until December 31, 2016 at which time amounts outstanding under the note will be payable
in 56 monthly installments of principal, based on a 7-year amortization schedule, with all unpaid principal and interest payable
in full on August 31, 2021. Interest on the amounts outstanding under the note is based on a spread over LIBOR which varies from
1.9% to 2.8% based on the ratio of the Gas Company’s total funded debt to EBITDA (the “Leverage Ratio”) with
the spread set at 3.1% until September 30, 2016. If the Leverage Ratio is less than or equal to 2.0, the interest rate is LIBOR
plus 1.9%; if the Leverage Ratio is greater than 2.0 but less than or equal to 2.5, the interest rate is LIBOR plus 2.2%; if the
Leverage Ratio is greater than 2.5 but less than or equal to 3.0, the interest rate is LIBOR plus 2.5%; and if the Leverage Ratio
is greater than 3.0, the interest rate is LIBOR plus 2.8%. The obligations of the Gas Company to M&T Bank are secured under
an additional general security agreement covering the Gas Company’s tangible and intangible rights in its gas distribution
system, personal property and other assets. The Gas Company will owe a pre-payment penalty on payment of unpaid principal made
in advance of the maturity date and must give at least a three day notice prior to the payment. The first draw on this note was
$3.0 million on October 5, 2016.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">On August 31, 2016,
the Holding Company’s newly acquired, wholly-owned subsidiary Pike had outstanding $3.2 million in outstanding First Mortgage
Bonds, 7.07% Series C Due 2018 (the “Pike Bonds”) issued pursuant to the Indenture of Mortgage and Deed of Trust,
between Pike and Deutsche Bank as trustee (as successor to Bankers Trust Company) (the “Trustee”), as amended by the
First Supplemental Indenture, dated as of August 15, 1990 and the Second Supplemental Indenture, dated as of October 1, 1998 (collectively,
the “Indenture”). The Pike Bonds bear interest at 7.1% payable on the first day of each April and October and the
principal amount of $3.2 million is due and payable on October 1, 2018. The Holding Company has caused Pike to call the Pike Bonds
for redemption as of October 2, 2016, at the 100.372% of outstanding principal amount plus accrued and unpaid interest to the
redemption date. Substantially all of the real property and tangible personal property of Pike is subject to the lien of the Indenture.
The Indenture contains various covenants of Pike, including maintaining the assets of Pike which are secured under the Indenture
free of other liens subject to certain “Permitted Encumbrances” and other liens, including liens expressly junior
to the lien of the Indenture. Other covenants in the Indenture include obligations of Pike to pay taxes, maintain and repair its
properties, maintain insurance, and to not pay dividends or make repurchases or distributions on its common stock except from
its “Net Income” as defined in the Indenture plus $105,000 subject to certain exceptions. In addition, Pike covenants
in the Indenture not to sell or lease its property, pay management fees to its parent entity, or create funded debt, in each case
subject to exceptions. The Pike Bonds were repaid on October 3, 2016.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">On August 31, 2016,
Pike entered into a Credit Agreement with M&T Bank in the amount of $12.0 million. The Credit Agreement contains various affirmative
and negative covenants of Pike including, (i) a total funded debt to tangible net worth ratio of not greater than 1.4 to 1.0,
(ii) a total funded debt to EBITDA ratio of not greater than 3.75 to 1.0, and (iii) a minimum cash flow overage of not less than
1.1 to 1.0, with each of the financial covenants measured quarterly based on Pike’s trailing twelve month operating performance
and fiscal quarterly financial statements commencing with the period ended September 30, 2017; compliance, accounting, and financial
statement requirements, and prohibitions on changes in management or control, any sale of all or substantially all of its assets,
acquisitions of substantially all the asset of any other entity, or other material changes to its business, purposes, structure
or operations which could materially adversely affect Pike. The note bears interest at 3.0% above one month LIBOR, adjusting daily,
payable monthly commencing September 30, 2016. Principal on the note is payable commencing March 31, 2017 (after six-months of
interest only payments), with 53 consecutive monthly payments of $100,000 each due on the last day of each month, with the unpaid
principal and any unpaid interest due and payable in full on August 31, 2021. The proceeds of the note were used to pay a portion
of the purchase price of its capital stock purchase of Pike. Pike will owe a pre-payment penalty on payment of unpaid principal
made in advance of the maturity date and must give at least a three day notice prior to the payment.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The Gas Company and
Pike are in compliance with all of their loan covenants as of September 30, 2016.</font></p>
12554397
31295781
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note payable - variable rate with 4.5% floor
with monthly</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; padding-left: 5.4pt"><font style="color: Black">installments through May 2020</font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 12%; text-align: right"><font style="color: Black">—  </font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 12%; text-align: right"><font style="color: Black">501,931</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 5.79% with monthly installments
through</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">August 2018</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">451,323</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - variable rate with 4.25% floor,
monthly</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">installments through November 2016</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,313,318</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - variable rate with 3.75% floor,
monthly</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">installments through November 2017</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,847,391</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 4.46% with monthly installments
through</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">July 2017, then refinanced at new rate</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">184,654</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 4.46% with monthly installments
through</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">July 2017, then refinanced at new rate</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">184,651</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 4.2% with monthly installments
through</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">November 2018</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,950,113</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 4.51% with monthly installments
through</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">September 2018</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,831,886</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 4.18% with monthly installments
through</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">November 2018</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,972,221</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 4.39% with monthly installments</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">through November 2019</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">3,540,206</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - 4.49% with monthly installments</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">through July 2019</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">552,853</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">M&T Bank - vehicle loans bearing interest
at rates ranging</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">from 4.37% to 5%</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">53,937</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">146,983</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - variable calculated quarterly
with monthly</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Installments through January 2022</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">17,400,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - variable calculated quarterly
with monthly</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Installments through January 2021</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">4,200,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Bond Payable - 7.07% paid semi-annually with
principal</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">due October 2018</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">3,200,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Note Payable - variable calculated quarterly
with monthly</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Installments through August 2021</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">12,000,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total long-term debt</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">36,853,937</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">15,477,530</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Less current installments</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">5,558,156</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">2,923,133</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Long-term debt less current installments</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">31,295,781</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">12,554,397</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="7" style="font: 12pt Times New Roman, Times, Serif"><p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"></font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"> </font></p></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 43%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2017</font></td><td style="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 43%; font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 2%; font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="width: 9%; font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt; color: Black">5,558,156</font></td><td style="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2018</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt; color: Black">3,745,604</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2019</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt; color: Black">3,812,603</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2020</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt; color: Black">3,894,393</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2021</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt; color: Black">12,055,575</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2022+</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 10pt; color: Black">7,787,606</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
</table>
2923133
5558156
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(7) Lines of Credit
and Short Term Debt</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">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 million that originally was to expire expire on April 1, 2016. Borrowings outstanding on this line were $0 and $7,003,599
at September 30, 2016 and 2015, respectively. The maximum amount outstanding during the years ended September 30, 2016 and 2015
were $8,406,484 and $7,581,344, 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 to 1 and a debt service coverage ratio of 1.1 to 1. On September 30, 2015, the interest rate was 3.0%. This line
of credit was closed in January 2016. The weighted average interest rates on outstanding borrowings during fiscal years 2016 and
2015 were 2.8% and 2.9%, respectively.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">On January 27, 2016,
the Gas Company entered into an agreement with M&T for a revolving line of credit of $8.0 million at a variable interest rate
determined by the Gas Company’s funded debt to EBITDA ratio calculated ninety days after the end of each quarter added to
the daily LIBOR rate. This line expires on April 1, 2017. The amount outstanding under this line on September 30, 2016 was approximately
$7.5 million with an interest rate of 3.2%. The maximum amount outstanding during the year ended September 30, 2016 was $7,818,800.
Our lender has a purchase money security interest in all our natural gas purchases utilizing funds advanced by the bank under
the credit agreement and all proceeds of sale and accounts receivable from the sale of that gas.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">On August 31, 2016,
Pike also entered into an agreement with M&T for a $2.0 million revolving line of credit at an interest rate equal to LIBOR
plus 2.75% with principal repayable on demand by the Lender. As of September 30, 2016, Pike had drawn $700,000 at an interest
rate of 3.3%. The agreement contains various affirmative and negative covenants of Pike including, (i) a total funded debt to
tangible net worth ratio of not greater than 1.4 to 1.0, (ii) a total funded debt to EBITDA ratio of not greater than 3.75 to
1.0, and (iii) a minimum cash flow overage of not less than 1.1 to 1.0, with each of the financial covenants measured quarterly
based on Pike’s trailing twelve month operating performance and fiscal quarterly financial statements commencing with the
period ended September 30, 2017; compliance, accounting, and financial statement requirements, and prohibitions on changes in
management or control, any sale of all or substantially all of its assets, acquisitions of substantially all the asset of any
other entity, or other material changes to its business, purposes, structure or operations which could materially adversely affect
Pike.</font></p>
9003599
8181499
4200000
19463
29637
600
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(9) Stockholders
Equity</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">For the fiscal year
ended September 30, 2016, there were a total of 29,637 shares of common stock issued for $125,392 of cash, $129,833 of services
and $151,131 of DRIP (dividend reinvestment program). There were 10,500 shares issued to directors, 600 shares sold to Leatherstocking
Gas, which used the shares to compensate its independent director, Carl Hayden, 9,537 shares issued to various investors under
the DRIP and 9,000 options exercised.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">On May 28, 2009, the
Gas Company registered with the Securities and Exchange Commission (“SEC”) 100,000 shares of common stock with a par
value of $.01 per share for the DRIP. As of November 12, 2013, the Holding Company registered 129,004 shares of common stock with
a par value of $.01 per share for the DRIP. As part of this program 761 shares were issued in fiscal year 2009, 2,319 shares were
issued in fiscal year 2010, 3,976 shares in fiscal year 2011, 5,689 shares in fiscal year 2012, 7,433 shares in fiscal year 2013,
7,219 shares in fiscal year 2014, 6,995 shares in fiscal year 2015 and 9,537 shares in fiscal 2016. A total of 43,929 shares have
been issued since the program started.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Dividends on shares
of common stock are accrued when declared by the board of directors. At its regular meeting on December 19, 2014, the board of
directors approved a quarterly dividend of $.135 a share. This dividend was paid on January 15, 2015 to shareholders of record
on December 31, 2014. At its regular meeting on January 20, 2015, the board of directors approved an increase in the quarterly
dividend to $.145 a share. This dividend was paid on April 15, 2015 to shareholders of record on March 31, 2015, and on July 15,
2015 to shareholders of record on June 30, 2015. There was a dividend paid on October 15, 2015 to shareholders of record on September
30, 2015 and on January 15, 2016 to shareholders of record on December 31, 2015. At its regular meeting on February 3, 2016, the
board of directors approved an increase in the quarterly dividend to $.15 a share. This dividend was paid to shareholders of record
on March 31, 2016 on April 15, 2016, and for shareholders of record on June 30, 2016 on July 15, 2016. For the quarter ended September
30, 2016, $371,608 was accrued for dividends paid on October 15, 2016 to common stock shareholders of record on September 30,
2016.</font></p>
1395448
1130000
23519932
1130000
850000
500000
350000
2293252
1280757
2583581
982903
540000
14740412
71415778
11900000
107004474
12600000
76173336
27340379
3490759
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Beginning balance in investment in
joint ventures</font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">2,293,252</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">1,280,757</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Investment in joint ventures during year</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">350,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,130,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">(Loss) in joint ventures
during year</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(59,670</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(117,505</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Ending balance in joint ventures</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,583,582</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,293,252</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(10) Investment
in Joint Ventures</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><font style="font-size: 10pt; color: Black">The
Holding Company has an interest in Leatherstocking Gas and Leatherstocking Pipeline, each of which is a joint venture with Mirabito
Regulated Industries, LLC, accounted for by the equity method. Leatherstocking Gas is currently moving forward on expansions to
several areas in the northeast. The Holding Company and Mirabito Regulated Industries, LLC each own 50% of the joint venture and
each appoints three managers to operate Leatherstocking Gas. The seventh manager is a neutral manager agreed to by the Holding
Company and Mirabito Regulated Industries, 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’ petitions
for authority to exercise its franchises in the Town and Village of Windsor are currently pending before the NYPSC. In addition,
Leatherstocking Gas has acquired sixteen franchises in Susquehanna and Bradford Counties, Pennsylvania. Leatherstocking Gas has
met with potential customers and public officials, as well as attended public hearings, and believes there is interest in acquiring
gas service. On July 25, 2013, Leatherstocking Gas signed a loan agreement with Five Star Bank for $1.5 million to finance construction
in Bridgewater, Pennsylvania. This agreement increased to $1.8 million before converting to a long-term note. Construction in
the Township of Bridgewater began in July 2013 and Leatherstocking Gas began serving customers in October 2013. Construction of
the Borough of Montrose system started in the spring of 2014 and construction started in the Township of Dimock in November 2014.
Leatherstocking Gas currently serves approximately 290 customers in these boroughs and townships as of June 30, 2016. On August
28, 2014, Leatherstocking Gas, as borrower, and Leatherstocking Pipeline as guarantor, entered into a loan agreement with Five
Star Bank for up to $4 million over two years to finance the work and services required for the infrastructure costs and ongoing
costs of underground piping construction projects in Montrose, Bridgewater and Dimock, Pennsylvania. This agreement required equity
investments from the Holding Company and Mirabito Regulated Industries for a total of 66% of all amounts borrowed. During fiscal
year 2014, $1,500,000 was borrowed and both the Holding Company and Mirabito Regulated Industries invested $500,000. During fiscal
year 2015, $2,500,000 was borrowed and both the Holding Company and Mirabito Regulated Industries invested $850,000. As of September
30, 2015, Leatherstocking Gas had drawn the $4 million available over the two year period on this loan. Both of these agreements
have a loan covenant related to debt service coverage being at least 1.15 to 1 at September 30, 2016. Leatherstocking Gas was
in violation of this covenant and received a waiver.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><font style="font-size: 10pt; color: Black">In
February 2015, Leatherstocking Gas purchased a 1.5 mile high pressure gas main along with a meter, heater and regulator station
for $900,000. This purchase was funded with a new loan agreement with Five Star Bank for $540,000 and investments from the Holding
Company and Mirabito Regulated Industries of $180,000 each. Another $100,000 was invested by both companies for total investments
of $1,130,000 by each for the year ended September 30, 2015. The new note matures on March 1, 2020 with an interest rate of 4.58%.
With this purchase, Leatherstocking Gas began service to a large industrial customer.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">On October 19, 2015,
Leatherstocking Gas and Five Star Bank entered into an agreement which allowed Leatherstocking Gas to borrow up to $500,000 as
a line-of-credit note with interest only payments to finance the continued and additional infrastructure cost of the construction
project in Northern Pennsylvania. This required an investment of approximately $166,667 from both the Holding Company and Mirabito
Regulated Industries. Leatherstocking Pipeline is a guarantor of this loan. The total of $500,000 had been drawn on this note
as of December 31, 2015 and the required investment was made in previous quarters.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">On July 11, 2016, Leatherstocking
Gas and Five Star Bank entered into an agreement which allows Leatherstocking Gas to borrow up to $1.25 million as a line-of-credit
note with interest only payments to finance the continued and additional infrastructure cost of the construction project in Northern
Pennsylvania. Approximately $613,000 has been drawn on this loan as of September 30, 2016 and required an investment of approximately
$204,000 each from the Holding Company and Mirabito Regulated Industries. Leatherstocking Pipeline is a guarantor of this loan.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The investment and
equity in both Leatherstocking companies (collectively, the “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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The following table
represents the Holding Company’s investment activity in the Joint Ventures at September 30, 2016 and September 30, 2015:</font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Beginning balance in investment in
joint ventures</font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">2,293,252</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">1,280,757</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Investment in joint ventures during year</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">350,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,130,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">(Loss) in joint ventures
during year</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(59,670</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(117,505</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Ending balance in joint ventures</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,583,582</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,293,252</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><font style="font-size: 10pt; color: Black">As
of and for the year ended September 30, 2016, the Joint Ventures had combined assets of $12.6 million, combined liabilities of
$7.5 million and combined net losses of approximately $119,000. As of and for the year ended September 30, 2015, the Joint Ventures
had combined assets of $11.9 million, combined liabilities of $7.3 million and combined net losses of approximately $235,000.</font></p>
13275900
7300000
19186229
7500000
27743924
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(17) Related Party
Transactions</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Related party receivables
are expenditures paid on behalf of the Holding Company’s joint venture investments. There were costs incurred in fiscal
year 2016 of $67,270 with approximately $9,900 due for shares sold to Leatherstocking Gas for director services. A total of $420,000
was paid in fiscal year 2016 and we expect repayment on the balance during the year ended September 30, 2017.</font></p>
2484211
2449647
2430184
2430184
2449647
2479284
2479284
74297174
21641078
39939110
5119970
696067
5510932
100550221
7158817
6195672
1709977
26617766
44440597
10618080
3809312
0
1390017
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Utility Plant</font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">26,617,766</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">21,641,078</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Poles & Line</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">10,618,080</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td style="font-family: Arial, Helvetica, Sans-Serif"><font style="color: Black"> </font></td>
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"><font style="color: Black"> </font></td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: right"><font style="color: Black">0</font></td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Pipeline</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">44,440,597</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">39,939,110</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Structures</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">7,158,817</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">5,119,970</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Land</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,709,977</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">696,067</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Construction Work in Progress</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">3,809,312</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,390,017</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">All Other</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">6,195,672</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">5,510,932</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">100,550,221</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">74,297,174</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
4447037
4803679
75289
108086
3808968
44377
30417
1585845
2957689
525920
172476
1182955
903007
1295304
1409207
1203355
1580598
5868668
12532749
37191
718705
2751339
3596302
4517673
6297895
675326
759459
287858
412316
75000
7786930
11836313
20984031
22718488
1721720
3321522
418221
651744
1357452
1654684
354924
434383
15857049
19811988
1492488
1453782
3500000
3500000
53313143
77831733
2449647
2479284
24496
24793
26362369
26768429
3312638
4901774
28929
95166
29728432
26585186
24302
-2398197
24496
3312638
28929
26362369
2921478
26037603
31790162
24793
26768429
4901774
95166
71415778
107004474
6857399
8513971
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(18) Subsequent
Events </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">On August 31, 2016,
the Holding Company’s newly acquired, wholly-owned subsidiary Pike had outstanding $3.2 million in outstanding First Mortgage
Bonds, 7.07% Series C Due 2018 (the “Pike Bonds”) issued pursuant to the Indenture of Mortgage and Deed of Trust,
between Pike and Deutsche Bank as trustee (as successor to Bankers Trust Company) (the “Trustee”), as amended by the
First Supplemental Indenture, dated as of August 15, 1990 and the Second Supplemental Indenture, dated as of October 1, 1998 (collectively,
the “Indenture”). The Pike Bonds were repaid on October 3, 2016.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The Gas Company entered
into an additional $4.2 million Multiple Disbursement Term Note with M&T Bank on August 31, 2016 which permits draws from
time to time in accordance with its terms until December 31, 2016. The first draw on this note was $3.0 million on October 5,
2016.</font></p>
192869
811095
78000
10000
3515714
5639619
1410299
946282
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(4) Marketable Securities</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">A summary of the marketable
securities at September 30, 2016 and 2015 is as follows:</font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="color: Black">Cost Basis</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="color: Black">Unrealized Gain</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="color: Black">Unrealized Loss</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="color: Black">Market Value</font></td></tr>
<tr style="text-align: center; vertical-align: bottom">
<td><font style="color: Black">2016</font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Cash and equivalents</font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">53,408</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 10%; text-align: right"><font style="color: Black">—  </font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 10%; text-align: right"><font style="color: Black">—  </font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 10%; text-align: right"><font style="color: Black">53,408</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Metlife stock value</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">51,185</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">51,185</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Government and agency bonds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">392,969</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">4,859</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">397,828</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Corporate bonds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">283,655</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,983</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">280,672</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Mutual funds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">43,624</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">4,206</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">39,418</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Corning Preferred A Stock</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">197,875</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">197,875</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Equity securities</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">1,035,809</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">163,903</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">1,199,712</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total securities</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,058,525</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">168,762</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">7,189</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,220,098</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="text-align: center; vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">2015</font></td><td><font style="color: Black"> </font></td>
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Cash and equivalents</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">41,500</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">41,500</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Metlife stock value</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">51,185</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">51,185</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Government and agency bonds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">301,673</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,763</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">303,436</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Corporate bonds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">337,757</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">3,973</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">333,784</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Mutual funds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">79,515</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">8,555</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">70,960</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Equity securities</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">1,293,039</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">59,881</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">1,352,920</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total securities</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,104,669</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">61,644</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">12,528</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,153,785</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The government and
agency bonds have contractual maturity dates between June 30, 2018 and August 15, 2024. The contractual maturity dates for the
corporate bonds are from December 15, 2016 to May 1, 2023.</font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black">Pension
Benefits</font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black">Post-retirement
Benefits</font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2016</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2015</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2016</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2015</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Components of net period benefit
cost (benefit):</font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Service cost</font></td><td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 10%; text-align: right"><font style="font-size: 10pt; color: Black">357,565</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 10%; text-align: right"><font style="font-size: 10pt; color: Black">343,039</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 10%; text-align: right"><font style="font-size: 10pt; color: Black">19,325</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 10%; text-align: right"><font style="font-size: 10pt; color: Black">20,979</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Interest cost</font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">977,868</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">919,156</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">50,423</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">48,673</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Expected return on plan assets</font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">(1,028,758</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">)</font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">(1,027,565</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">)</font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">—  </font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">—  </font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Amortization of prior service</font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">7,175</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">9,406</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">3,547</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">3,547</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Amortization
of unrecognized actuarial loss (gain)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">672,265</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">493,958</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">(4,111</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">(7,901</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Net periodic benefit cost (benefit)</font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">986,115</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">737,994</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">69,184</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">65,298</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="color: Black">Cost Basis</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="color: Black">Unrealized Gain</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="color: Black">Unrealized Loss</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="color: Black">Market Value</font></td></tr>
<tr style="text-align: center; vertical-align: bottom">
<td><font style="color: Black">2016</font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Cash and equivalents</font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">53,408</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 10%; text-align: right"><font style="color: Black">—  </font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 10%; text-align: right"><font style="color: Black">—  </font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 10%; text-align: right"><font style="color: Black">53,408</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Metlife stock value</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">51,185</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">51,185</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Government and agency bonds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">392,969</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">4,859</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">397,828</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Corporate bonds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">283,655</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,983</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">280,672</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Mutual funds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">43,624</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">4,206</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">39,418</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Corning Preferred A Stock</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">197,875</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">197,875</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Equity securities</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">1,035,809</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">163,903</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">1,199,712</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total securities</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,058,525</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">168,762</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">7,189</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,220,098</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="text-align: center; vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">2015</font></td><td><font style="color: Black"> </font></td>
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Cash and equivalents</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">41,500</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">41,500</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Metlife stock value</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">51,185</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">51,185</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Government and agency bonds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">301,673</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,763</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">303,436</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Corporate bonds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">337,757</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">3,973</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">333,784</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Mutual funds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">79,515</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">8,555</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">70,960</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Equity securities</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">1,293,039</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">59,881</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">1,352,920</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total securities</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,104,669</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">61,644</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">12,528</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,153,785</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
316603
474021
437322
-42868
91222
-1108710
-279948
357845
93852
-73181
681514
-157
307226
26416
84133
965938
929321
219042
-35000
1338048
356658
116000
372329
162414
129833
88028
62994
991631
1066466
159734
68561
-181874
836961
-115838
229097
380718
187858
-173927
-38706
363848
-1005940
5504513
3120950
934831
1642238
1036993
1546730
-79766
353444
5825154
7504955
7224955
280000
0
-6932758
-22907203
4389058
3377900
982
136326
29785
125392
-32797
3733679
922562
902161
132762
151131
6995
9537
1231057
1301671
2774259
764005
190736
197889
221157
152157
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>2015</u></font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Stock
Options</u></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Number
of</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Weighted</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Average</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Shares</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Average</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Remaining</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Remaining</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Exercise</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Contractual</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Options</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Price</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Term</u></font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Outstanding at October
1, 2014</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                13,500</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$12.83</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Options granted</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                         -</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Options exercised
during year ended September 30, 2015</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                  1,500</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$12.83</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Options expired during
year ended September 30, 2015</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                         -</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Outstanding at September
30, 2015</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: right"><font style="font-size: 10pt; text-underline-style: double; color: Black"><u>12,000
</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$12.83</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">.25
years</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Exercisable at September
30, 2015</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: right"><font style="font-size: 10pt; text-underline-style: double; color: Black"><u>12,000
</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$12.83</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">.25
years</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>2016</u></font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Stock
Options</u></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Number
of</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Weighted</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Average</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Shares</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Average</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Remaining</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Remaining</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Exercise</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Contractual</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Options</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Price</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Term</u></font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Outstanding at October
1, 2015</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                12,000</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$12.83</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Options granted</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                         -</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Options exercised
during year ended September 30, 2016</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                  9,000</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$12.83</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Options expired during
year ended September 30, 2016</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                  3,000</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$12.83</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Outstanding at September
30, 2016</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: right"><font style="font-size: 10pt; text-underline-style: double; color: Black"><u>-
</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$0.00</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Exercisable at September
30, 2016</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: right"><font style="font-size: 10pt; text-underline-style: double; color: Black"><u>-
</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$0.00</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><font style="font-size: 10pt; color: Black"><b>(5)
Regulatory Matters </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Below is a summary
of the Gas Company’s regulatory assets as of September 30, 2016 and 2015:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Unrecovered gas costs</font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">718,705</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">37,191</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Deferred regulatory costs</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">3,596,302</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,751,339</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Deferred pension costs</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">6,297,895</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">4,517,673</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total regulatory assets</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">10,612,902</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">7,306,203</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">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.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The following table
summarizes regulatory costs at September 30, 2016 and 2015:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Deferred rate case costs</font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">992,108</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">897,942</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Deferred rate case reconciliations</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">2,604,194</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">1,853,397</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Total</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">3,596,302</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,751,339</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Deferred rate case
costs are costs that were incurred in prior rate cases that are amortized over a period determined by the NYPSC or PAPUC 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 and PAPUC either through Delivery Rate Adjustment
or the next rate case.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">In fiscal year 2015
the Gas Company determined that it met 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 $6,297,895 and $4,517,673 as of September 30, 2016 and September 30, 2015, respectively.
The increase to OCI was $2,748,238 for the year ended September 30, 2015. For periods after the fiscal year ended September 30,
2015, there will be no change to OCI because of the change. Factors considered included: (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 met the criteria as set forth in ASC 980-725-25-5.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Also included in pension
costs and post-retirement benefits is approximately $116,000 and ($35,000) for 2016 and 2015, 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
$372,329 and $1,388,049 for the periods ended September 30, 2016 and 2015 for deferred rate case reconciliations.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Although the Company
expects to recover the cost of its regulatory assets, it does not earn a return on them. The 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.</font></p>
324960
324766
194
406357
297
406060
1390921
1390921
1469482
1469482
Corning Natural Gas Holding Corp
0001582244
10-K
2016-09-30
false
--09-30
No
No
Yes
Smaller Reporting Company
FY
2016
CNIG
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(2) Major Customers
</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The Gas Company has
four major customers, Corning Incorporated, New York State Electric & Gas, Bath Electric, Gas & Water Systems, and Repsol
Energy North America (“Repsol”, formerly Talisman Energy USA Incorporated). Although Repsol is a significant customer,
the Gas Company does not deliver gas to Repsol. Rather the Gas Company receives gas from several of Repsol’s gathering systems
and wells, and transports its gas through our system. Although no customer represents at least 10% of our total revenue, the loss
of any of these customers could have a significant impact on the Company’s financial results.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(3) Property, Plant
and Equipment</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The following table
summarizes fixed assets included in utility plant on the Holding Company’s Consolidated Balance Sheet at September 30, 2016
and 2015:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Utility Plant</font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">26,617,766</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">21,641,078</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Poles & Line</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">10,618,080</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td style="font-family: Arial, Helvetica, Sans-Serif"><font style="color: Black"> </font></td>
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"><font style="color: Black"> </font></td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: right"><font style="color: Black">0</font></td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Pipeline</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">44,440,597</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">39,939,110</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Structures</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">7,158,817</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">5,119,970</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Land</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,709,977</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">696,067</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Construction Work in Progress</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">3,809,312</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,390,017</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">All Other</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">6,195,672</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">5,510,932</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">100,550,221</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">74,297,174</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Useful life for the
above assets range from 35 to 55 years for utility plant, 30 to 65 years for poles and line, 66 years for pipeline, from 45 to
47 years for structures, 50 to 65 years for land rights and 5 to 25 years for all other and corporate fixed assets. Utility plant
includes station equipment, services, meters, regulators including all costs to install those assets. Poles and line include poles,
line and conductors. Total mains installed are represented in pipeline. Structures include both regulator station buildings and
office and operations buildings. All other plant includes all general plant except for buildings and land and land rights.</font></p>
724554
976250
22503411
19088609
19051661
36948
0
620637
0
620637
0
22503411
19709246
260017
7107533
4152704
62776
1782081
3058618
4209207
3187631
155163
0
807192
0
45587
46220
1232082
855851
2557916
4920314
0
3200000
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(8) Preferred Stock</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The Holding Company
filed a Registration Statement on Form S-1 with the Securities and Exchange Commission with respect to a subscription rights offering
to its stockholders to issue up to approximately $11.0 million in preferred stock. The subscription rights were distributed on
a one-for-one basis to stockholders of record as of April 14, 2016 and expired on June 20, 2016. The Form S-1 covered 2,468,961
subscription rights for the purchase of up to 140,000 shares of 6% Series A Cumulative Preferred Stock and up to 360,000 shares
of 4.8% Series B Convertible Preferred Stock. Each subscription right entitled the holder to purchase either: (i) one-eighth share
of the 6% Series A Cumulative Preferred Stock, par value $0.01 per share, for $25.00 per share, or (ii) one-sixth share of the
4.8% Series B Convertible Preferred Stock, par value $0.01 per share, for $20.75 per share, which is convertible in accordance
with its terms into one share of common stock, subject to adjustment. Of the 140,000 shares of Series A Cumulative Preferred Stock
available, 105,303 shares were subscribed and of the 360,000 shares of Series B Convertible Preferred Stock available, 244,263
shares were subscribed. Each shareholder exercising over-subscription rights was able to purchase all of the additional shares
of Preferred Stock for which the shareholder subscribed. During the year ended September 30, 2016 the Holding Company received
approximately $7.7 million less issuance costs of approximately $225,000 for net proceeds of approximately $7.5 million, of which
approximately $197,000 of the Series A Preferred Stock proceeds was received from the Company’s Rabbi Trust investment.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Series A Cumulative
Preferred Stock accrues cumulative dividends at a rate of 6.0% of the liquidation preference per share ($25.00) and are expected
to be paid on or about the 14th day of April, July, October and January of each year starting October 14, 2016. The dates of record
for the dividends, if any, will be March 31, June 30, September 30 and December 31, immediately preceding the relevant dividend
payment date. On September 30, 2023, outstanding shares of Series A Cumulative Preferred Stock will mature and be redeemed solely
in cash at a redemption price equal to the liquidation preference per share plus an amount equal to all accrued but unpaid dividends
subject to our having funds legally available for redemption under New York law. In the event of a fundamental change as defined
on the Certificate of Amendment to the Certificate of Incorporation, holders of Series A Cumulative Preferred Stock have the right
to redeem their shares at a redemption price equal to the liquidation preference per share plus an amount equal to all accrued
but unpaid dividends prior to the effective date of the fundamental change subject to our having funds legally available for such
redemption under New York law. A fundamental change is generally defined as a change of control of the Holding Company. The holders
of Series A Cumulative Preferred Stock will have no voting rights except as specifically required by New York laws or by the Charter,
as amended by the Certificate of Amendment which allows voting rights under specific circumstances. If dividends on shares of
Series A Cumulative Preferred Stock have not been declared and paid for eight or more consecutive dividend periods, the holders
of Series A Cumulative Preferred Stock and Series B Convertible Preferred Stock, voting together as a single class with holders
of all other preferred stock of equal rank having similar voting rights, will be entitled at our next special or annual meeting
of shareholders to vote for the election of a total of one additional member of our Board of Directors, subject to certain limitations.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The Series A Cumulative
Preferred Stock will rank, with respect to priority of dividend payments and rights upon liquidation, dissolution or winding up,
senior to all classes or series of our common stock, and to any other class or series of our capital stock issued in the future,
unless the terms of that capital stock expressly provide that it ranks senior to, or on parity with, the Series B Convertible
Preferred Stock; on parity with any class or series of our capital stock, the terms of which expressly provide that it will rank
on parity with the Series A Cumulative Preferred Stock, including the Series B Convertible Preferred Stock; and junior to any
other class or series of our capital stock, the terms of which expressly provide that it will rank senior to the Series A Cumulative
Preferred Stock, none of which exists on the date hereto, and the issue of which would be subject to the approval of a majority
of the outstanding shares of Series A Cumulative Preferred Stock and all other preferred stock of equal rank having similar rights
voting as a single class; and subject to funds legally available and payment of or provision for our debts and other liabilities.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">In accordance with
ASC 480, because of the mandatory redemption feature this is treated as liability. The issuance costs of approximately $75,000
are treated as debt issuance costs and will be amortized over the life of the instrument. Future dividends will be recorded as
interest expense. Dividends will begin to accrue July 1, 2016. For the quarter ended September 30, 2016, $40,542 was accrued for
dividends paid on October 15, 2016 to shareholders of record on September 30, 2016.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Series B Convertible
Preferred Stock accrues cumulative dividends at a rate of 4.8% of the liquidation preference per share ($20.75) and are expected
to be paid on or about the 14th day of April, July, October and January of each year commencing October 14, 2016. The dates of
record for the dividends, if any, will be March 31, June 30, September 30 and December 31, immediately preceding the relevant
dividend payment date. At any time and from time to time after issuance, the shares of Series B Convertible Preferred Stock are
convertible, in whole or in part, at the option of the holder into shares of common stock at the rate of one (1) share of our
common stock for each one (1) share of Series B Convertible Preferred Stock, subject to adjustment for standard anti-dilution
adjustments such as stock dividends or stock distributions; subdivisions or combinations of our common stock; and certain tender
or exchange offers by us or one of our subsidiaries for our common stock, in each case subject to certain exceptions. In the event
a holder of shares of the Series B Convertible Preferred Stock elects to convert any shares of Series B Convertible Preferred
Stock that would result in such shareholder owning more than 10% of the capital stock of the Gas Company under the provisions
of Section 70 of the New York Public Service Law, that holder would be unable to exercise the conversion right without prior consent
of the NYPSC. The Holding Company will not pay any cash to a holder in respect of such conversion or otherwise settle any such
conversion in cash, other than the right of the holder to receive payment in lieu of any fraction of a share in exchange therefor.
The NYPSC approved the exercise of conversion rights on any Series B Convertible Preferred Stock by our three existing shareholders
of 10% or more of our common stock.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">On September 30, 2026,
outstanding shares of Series B Cumulative Preferred Stock will mature and be redeemed solely in cash at a redemption price equal
to the liquidation preference per share plus an amount equal to all accrued but unpaid dividends subject to our having funds legally
available under New York law. In the event of a fundamental change as defined on the Certificate of Amendment to the Certificate
of Incorporation, holders of Series B Convertible Preferred Stock have the right to redeem their shares at a redemption price
equal to the liquidation preference per share plus an amount equal to all accrued but unpaid dividends prior to the effective
date of the fundamental change subject to our having funds legally available for such redemption under New York law. A fundamental
change is generally defined as a change of control of the Holding Company.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The holders of Series
B Convertible Preferred Stock will have no voting rights except as specifically required by New York laws or by the Holding Company’s
Charter, as amended by the Certificate of Amendment which allows voting rights under specific circumstances as described in the
Certificate of Amendment. If dividends on shares of Series B Convertible Preferred Stock have not been declared and paid for eight
or more consecutive dividend periods, the holders of Series B Convertible Preferred Stock and the Series A Cumulative Preferred
Stock, voting together as a single class with holders of all other preferred stock of equal rank having similar voting rights,
will be entitled at our next special or annual meeting of shareholders to vote for the election of a total of one additional member
of our Board of Directors, subject to certain limitations.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The Series B Convertible
Preferred Stock will rank, with respect to priority of dividend payments and rights upon liquidation, dissolution or winding up
senior to all classes or series of our common stock, and to any other class or series of our capital stock issued in the future,
unless the terms of that capital stock expressly provide that it ranks senior to, or on parity with, the Series A Cumulative Preferred
Stock; on parity with any class or series of our capital stock, the terms of which expressly provide that it will rank on parity
with the Series B Convertible Preferred Stock, including the Series A Cumulative Preferred Stock; and junior to any other class
or series of our capital stock, the terms of which expressly provide that it will rank senior to the Series B Convertible Preferred
Stock, none of which exists on the date of this report, and the issue of which would be subject to the approval of a majority
of the outstanding shares of Series B Convertible Preferred Stock and all other stock of equal rank having similar rights voting
as a single class; and subject to funds legally available and payment of or provision for our debts and other liabilities.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">In accordance with
ASC 480, Series B Cumulative Preferred Stock is not considered mandatorily redeemable as a result of the conversion feature presenting
a contingency related to the redemption dates. Accordingly, this is not considered a liability. However, as a result of the decision
related to conversion and not reaching redemption resting with the holder, this instrument has been classified as temporary equity
in accordance with ASC 480. Upon conversion, the instrument would be reclassified as permanent equity. Dividends will be recorded
each period in the consolidated statement of changes in stockholders’ equity and will begin to accrue July 1, 2016. For
the quarter ended September 30, 2016, $62,776 was accrued for dividends paid on October 15, 2016 to shareholders of record on
September 30, 2016. The Company determined that bifurcation of the embedded conversion option feature was not required. The issuance
costs of approximately $150,000 reduce the initial proceeds and will be accreted until redemption or conversion.</font></p>
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0.017
88028
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175294
158893
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317
75
2625
0.25
600
2625
10500
11000000
2100000
2
13100000
4002
81421
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P45Y
P25Y
P35Y
P66Y
P47Y
P5Y
P30Y
P65Y
P65Y
P50Y
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79515
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392969
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3973
7189
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2751339
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4200000
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3200000
12000000
3200000
4200000
2016-01-27
2016-01-27
2016-08-31
2016-08-31
2016-08-31
2016-08-31
2021-08-31
2018-10-01
2021-08-31
2016-10-03
2.5
1.4
1.4
1.1
1.15
3.75
0.031
3.75
3.75
1.1
1.1
1.1
If the Leverage Ratio is less than or equal to 2.0, the interest rate is LIBOR plus 1.9%; if the Leverage Ratio is greater
than 2.0 but less than or equal to 2.5, the interest rate is LIBOR plus 2.2%; if the Leverage Ratio is greater than 2.5 but less than or equal to 3.0, the interest rate is LIBOR plus 2.5%; and if the Leverage Ratio is greater than 3.0, the interest rate is LIBOR plus 2.8%.
0.025
0.024
0.024
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0.028
0.0275
0.0579
0.0425
0.045
0.0451
0.0449
0.0418
0.0446
0.0439
0.042
0.0375
0.0446
0.032
0.032
0.071
0.03
0.0707
0.0437
0.05
207143
100000
3000000
1.00372
15477530
552853
501931
451323
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1831886
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1847391
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53937
36853937
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4200000
3200000
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3894393
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500000
4000000
1800000
1500000
12000000
8500000
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1250000
2500000
2100000
4000000
7003599
0
7500000
500000
613000
105503
140000
360000
0.06
0.048
0.01
0.01
0.01
105303
244263
2468961
7500000
197000
7700000
25.00
20.75
105503
2023
40542
62776
0.10
0.10
129004
100000
9537
7219
6995
3976
7433
761
2319
5689
9537
43929
29637
125392
151131
129833
1500
9000
371608
0.145
0.135
0.15
0.50
166667
204000
16
290
0.66
2500000
1500000
1.5
900000
180000
100000
0.0458
0.0707
6400000
2025-09-30
969582
1427272
-55600
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11433
11888
175331
190076
-8249
31481
0.34
0.34
349547
57521
48327
604458
556653
2246383
2678585
27788
20054
85262
2597946
2852220
1285010
971815
6904368
7127654
7759860
9171142
1298794
1830050
19892
61866
365091
379879
138153
10420082
12767273
3515714
5639619
13757839
2102600
13675154
175950
2920406
3691645
540732
6104302
324804
14884196
2168913
406557
4227227
2809435
403756
552373
6484848
51185
51185
24784
171000
350000
150
0.40
-6800000
-5526763
-1295660
-8600000
-1486476
-7143780
851547
4517673
3666126
222363
35000
970000
970000
89746
264693
123174
103066
0.06
0.01
0.039
0.057
0.032
0.0420
1183628
0.50
0.06
0.50
64261
990897
87456
70172
957516
87595
2500000
19284602
1264378
1295660
18633318
1486476
22027976
20979
337039
19325
351565
48673
919156
50423
977868
63740
77754
-25891
-300931
-191240
-2361479
128001
905842
147926
947538
4126
1122982
45221
-4403014
-150130
-5998607
150083
9797
146536
2622
-1113952
-1190798
-1189810
-1142551
1113952
1189761
1190798
1366855
1189810
1142551
70313
986115
73647
1254598
990897
957516
-248121
-268483
69276
74635
2202798
-3795809
P9Y10M24D
379961
P11Y
13648
1027016
20979
343039
19325
357565
1027565
1028758
3547
9406
3547
7175
7901
-493958
4111
-672265
65298
737994
69184
986115
0.0522
0.0400
0.0325
0.0420
0.0200
0.0200
0.0750
0.0750
1162055
1183273
1248018
1358644
1410391
7215801
14800
5800
13100000
530000
2500000
1970000
3200000
3200000
725000
530000
194619
311000
311000
306740
1349183
414044
18754174
744345
22074105
17283214
15086989
28202000
33721000
4350000
3517000
1.74
1.34
440791
424744
16047
0
12000
13500
3000
12000
12.83
12.83
0.00
12.83
12.83
12.83
12.83
0.00
P3M
P3M
736000
565014
67270
9900
420000
7581344
8406484
7818800
0.03
0.032
0.033
0.029
0.028
1055158
1027688
4790891
140000
11000000
976445
1062042
124141
5526763
1295660
1486476
7143780
62776
62776
218744
59
P7Y
P7Y
P7Y
105000
0.125
0.167
140000
360000
150000
225000
25.00
20.75
3616924
3200000
1.00372
1372147
15310184
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; margin-left: 1in">
<tr style="text-align: center; vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Net income attributable
to common shareholders</font></td><td style="width: 8%; color: red"><font style="color: Black"> </font></td>
<td style="width: 1%; color: red; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; color: red; text-align: right"><font style="color: Black">3,058,618</font></td><td style="width: 1%; color: red; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">1,782,081</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="color: red; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Add Preferred
B Dividends</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">62,776</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Net income</font></td><td style="color: red"><font style="color: Black"> </font></td>
<td style="color: red; text-align: left"><font style="color: Black">$</font></td><td style="color: red; text-align: right"><font style="color: Black">3,121,394</font></td><td style="color: red; text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,782,081</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Average shares outstanding - basic</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,470,171</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,440,932</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Effect of dilutive stock options</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">4,002</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Effect of Preferred B Shares</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">81,421</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Average shares outstanding - diluted</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,551,592</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,444,934</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td colspan="3" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline"><font style="font-size: 10pt; color: Black"><u>Fair
Value Measurements at Reporting Date Using:</u></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: top">
<td style="width: 24%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"><u>Fair
Value</u></font></td>
<td style="width: 41%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"><u>Quoted
Prices In Active Markets for Identical Assets/Liabilities (Level 1)</u></font></td>
<td nowrap="nowrap" style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"><u>Level
2</u></font></td>
<td nowrap="nowrap" style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"><u>Level
3</u></font></td></tr>
<tr>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>September
30, 2016</u></font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Available-for-sale
securities</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">$2,220,098</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">$2,220,098</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">$-</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">$-</font></td></tr>
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>September
30, 2015</u></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Available-for-sale
securities</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">$2,153,785</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">$2,153,785</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">$-</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">$-</font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Unrecovered gas costs</font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">718,705</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">37,191</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Deferred regulatory costs</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">3,596,302</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,751,339</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Deferred pension costs</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">6,297,895</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">4,517,673</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total regulatory assets</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">10,612,902</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">7,306,203</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Deferred rate case costs</font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">992,108</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">897,942</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Deferred rate case reconciliations</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">2,604,194</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">1,853,397</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Total</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">3,596,302</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,751,339</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black">Income tax expense for the years ended September 30 is as follows:</font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; padding-left: 5.4pt"><font style="color: Black">Current</font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">10,000</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">78,000</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Deferred</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">1,066,466</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">991,631</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Total</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,076,466</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,069,631</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Deferred income tax assets:</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Unbilled revenue</font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">48,327</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">57,521</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Deferred compensation reserve</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">556,653</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">604,458</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Post-retirement benefit obligations</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,678,585</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,246,383</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Inventories</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">20,054</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">27,788</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Deficiency of gas adjustment clause revenues
billed</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">85,262</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">NOL carryforwards</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,852,220</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,597,946</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Other</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">971,815</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">1,285,010</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total deferred income tax assets</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">7,127,654</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">6,904,368</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Deferred income tax liabilities:</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Property, plant and equipment, principally due
to</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">differences in depreciation</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">9,171,142</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">7,759,860</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Pension benefit obligations</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,830,050</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,298,794</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Comprehensive income</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">61,866</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">19,892</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Deferred rate expense and allocations</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">379,879</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">365,091</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Deficiency of gas adjustment clause revenues
billed</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">138,153</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Intangibles</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">124,141</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Other</font></td><td style="color: red; padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; color: red; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; color: red; text-align: right"><font style="color: Black">1,062,042</font></td><td style="padding-bottom: 1pt; color: red; text-align: left"><font style="color: Black"> </font></td><td style="color: red; padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; color: red; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; color: red; text-align: right"><font style="color: Black">976,445</font></td><td style="padding-bottom: 1pt; color: red; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total deferred income tax liabilities</font></td><td style="color: red"><font style="color: Black"> </font></td>
<td style="color: red; text-align: left"><font style="color: Black"> </font></td><td style="color: red; text-align: right"><font style="color: Black">12,767,273</font></td><td style="color: red; text-align: left"><font style="color: Black"> </font></td><td style="color: red"><font style="color: Black"> </font></td>
<td style="color: red; text-align: left"><font style="color: Black"> </font></td><td style="color: red; text-align: right"><font style="color: Black">10,420,082</font></td><td style="color: red; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Net deferred income tax (assets) liabilities</font></td><td style="color: red"><font style="color: Black"> </font></td>
<td style="color: red; text-align: left"><font style="color: Black">$</font></td><td style="color: red; text-align: right"><font style="color: Black">5,639,619</font></td><td style="color: red; text-align: left"><font style="color: Black"> </font></td><td style="color: red"><font style="color: Black"> </font></td>
<td style="color: red; text-align: left"><font style="color: Black">$</font></td><td style="color: red; text-align: right"><font style="color: Black">3,515,714</font></td><td style="color: red; text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="7" style="text-align: center"><font style="color: Black">Pension Benefits</font></td><td><font style="color: Black"> </font></td>
<td colspan="7" style="text-align: center"><font style="color: Black">Post-retirement Benefits</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="17"><font style="color: Black">Change in benefit obligations:</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left; padding-left: 5.4pt"><font style="color: Black">  Benefit obligation at
beginning of year</font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">19,284,602</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">18,633,318</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">1,295,660</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">1,264,378</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Service cost (excluding expected
expenses)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">351,565</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">337,039</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">19,325</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">20,979</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Interest cost</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">977,868</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">919,156</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">50,423</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">48,673</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Participant contributions</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">77,754</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">63,740</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Actuarial loss</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,361,479</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">300,931</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">191,240</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">25,891</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Benefits paid</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(947,538</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(905,842</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(147,926</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(128,001</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Curtailments</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Benefit obligation at end of year</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">22,027,976</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">19,284,602</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,486,476</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,295,660</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Change in plan assets:</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Fair value of plan assets at beginning
of year</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">13,757,839</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">13,675,154</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Actual return on plan assets</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,122,982</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">4,126</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Company contributions</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">957,516</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">990,897</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">70,172</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">64,261</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Participant contributions</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">77,754</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">63,740</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">  Benefits paid</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(954,141</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(912,338</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(147,926</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(128,001</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">  Fair value of
plan assets at end of year</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">14,884,196</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">13,757,839</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Funded status</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(7,143,780</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(5,526,763</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,486,476</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,295,660</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Unrecognized net actuarial loss/(gain)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">5,998,607</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">4,403,014</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">150,130</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(45,221</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Unrecognized prior service cost</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,622</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">9,797</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">146,536</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">150,083</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">(Accrued) prepaid benefit cost</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,142,551</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,113,952</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,189,810</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,190,798</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Accrued contribution</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Amounts recognized in the balance sheet consists
of:</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Prepaid (accrued) benefit liability</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(7,143,780</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(5,526,763</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,486,476</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,295,660</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Amounts recognized in the Balance Sheets consist
of:</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  (Accrued)/prepaid pension cost as
of beginning of fiscal year</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,113,952</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,366,855</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,190,798</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,189,761</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Pension (cost) income</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,254,598</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(986,115</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(73,647</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(70,313</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">  Contributions</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">957,516</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">990,897</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Change in receivable contribution</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">268,483</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">248,121</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Net benefits paid</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">74,635</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">69,276</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Change in additional minimum liability</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  (Accrued)/prepaid pension cost as
of end of fiscal year</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">(1,142,551</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">(1,113,952</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">(1,189,810</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">(1,190,798</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Fair value of plan assets at end of year</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Cash and equivalents</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">406,557</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">175,950</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Government and agency issues</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">4,227,227</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,920,406</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Corporate bonds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,809,435</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">3,691,645</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Fixed index funds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">403,756</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">324,804</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Fixed income</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">552,373</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">540,732</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">  Equity securities</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">6,484,848</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">6,104,302</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">14,884,196</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">13,757,839</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">1</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Projected
benefit obligation as of September 30, 2016</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> $   22,027,976</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">2</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Plan
assets at September 30, 2016</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">    (14,884,196)</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">3</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Unrecognized
(gain)/loss as of September 30, 2016</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">        5,998,607</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">4</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Ten percent
of greater of (1) or (2)</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">        2,202,798</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">5</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Unamortized
(gain)/loss subject to amortization - (3) minus (4)</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">        3,795,809</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">6</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Active
future service of active plan participants expected to receive benefits</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">                 9.99</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">7</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Minimum
amortization of unamortized net (gain)/loss - (5)/(6)</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> $        379,961</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">8</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Amortization
of (gain)/loss for 2016-2017</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> $     1,027,016</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font-size: 10pt; color: Black"> </font></p></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" colspan="2" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Pension
Benefits</font></td>
<td nowrap="nowrap" colspan="2" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Post-retirement
Benefits</font></td></tr>
<tr>
<td nowrap="nowrap" style="text-align: center; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>2016</u></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>2015</u></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>2016</u></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>2015</u></font></td></tr>
<tr style="vertical-align: top">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Weighted average
assumptions used to determine net</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: top">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">period cost at September
30:</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: top">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Discount rate</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">4.20%</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">5.22%</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">3.25%</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">4.00%</font></td></tr>
<tr style="vertical-align: top">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Salary increases</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">2.00%</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">2.00%</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">N/A</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">N/A</font></td></tr>
<tr style="vertical-align: top">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Expected return on
assets</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">7.50%</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">7.50%</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">N/A</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">N/A</font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(13) Acquisition
of Pike County Light & Power Company</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">As previously reported,
on October 13, 2015, the Holding Company entered into a Stock Purchase Agreement with O&R for the purchase of all of the outstanding
capital stock of Pike, a Pennsylvania corporation operating as a regulated electric and gas utility serving approximately 5,800
customers in Pike County, Pennsylvania. The purchase price for the stock of Pike was $13.1 million, with an initial closing date
working capital adjustment of $2.5 million which was adjusted to $1.97 million for the final working capital adjustment, subsequent
to year end, and the approximately $530,000 is included in Acquisition receivable on the consolidated balance sheet and assumption
of $3.2 million in Pike’s outstanding bonds and closed on August 31, 2016. In addition, O&R agreed to provide transition
assistance pursuant to a Transition Services Agreement (“TSA”), and to continue to supply electric power and gas to
Pike County pursuant to Electric and Gas Supply Agreements (“ESA” and “GSA”). The Gas and Electric Supply
Agreements are each for a term of 36 months, with up to three 12-month renewal terms.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The acquisition of
Pike was financed in part by financing from M&T Bank, including a $12 million term loan, a $2 million line of credit, one
or more letters of credit with a limit of up to $2.5 million and an initial amount of $2.1 million, issued to O&R as collateral
security for the obligations of Pike under the TSA, the GSA and the ESA. The debt is guaranteed by Corning Holding. There also
was $3,616,924 paid in cash. Immediately after the closing, Corning Holding caused Pike to issue a notice of redemption to the
holders of its $3.2 million in bonds, to repurchase the bonds at 100.372% of their principal amount effective October 2, 2016.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><font style="font-size: 10pt; color: Black">The
consolidated balance sheet reflects the identification by the Company of the fair value of identifiable tangible and intangible
assets and liabilities acquired. The excess of net value over the purchase price was recorded as other income in fiscal 2016 as
a bargain purchase of $1,306,007. The current receivable of approximately $725,000 recognized as “Acquisition receivable”
on the consolidated balance sheet, is mainly attributable to a working capital adjustment of approximately $530,000 that was received
by Pike in October 2016 and additional cash payment from the acquisition not received until October 2016. The trade name valued
at $311,000, the acquired intangible assets, will be amortized over five years and is included in “Other assets” on
the consolidated balance sheet. The following table summarizes the fair value of assets acquired and liabilities assumed:</font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="width: 70%; padding-left: 5.4pt"><font style="color: Black">Cash</font></td><td style="width: 10%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 18%; text-align: right"><font style="color: Black">306,740</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Customer accounts receivable</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,349,183</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Acquisition receivable</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">194,619</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Current assets</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">414,044</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Property and equipment</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">18,754,174</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Other assets</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">744,345</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Acquired intangibles:</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">     Trade
name</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">311,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total fair value of assets acquired</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">22,074,105</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Current liabilities assumed</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,372,147</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Bond assumed</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(3,200,000</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Other liabilities assumed</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(218,744</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Net liabilities assumed</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(4,790,891</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Net assets acquired</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">17,283,214</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Cash consideration</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(15,086,989</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="width: 70%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Gain before deferred tax benefit</font></td><td style="width: 10%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 18%; text-align: right"><font style="color: Black">2,196,225</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Income tax benefit - deferred</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(964,143</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="color: Black">Gain on bargain purchase</font></td><td style="padding-bottom: 2.5pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="color: Black">1,232,082</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The business combination
was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. As an acquirer
for accounting purposes, the Company has estimated the fair value of Pike’s assets and liabilities assumed and ensured that
the accounting policies of Pike were consistent with that of the Company. ASC requires that when fair value of the net assets
acquired exceeds the purchase price, resulting in a bargain purchase of assets, the acquirer must reassess the reasonableness
of the values assigned to all of the net assets acquired, liabilities assumed and consideration transferred. The Company performed
such assessment and concluded that the values assigned for the acquisition were reasonable. In the case of the acquisition of
Pike, many factors contributed to a bargain purchase. O & R primarily operates in New York and New Jersey, and having an operation
in Pennsylvania created numerous additional operating costs given its differing jurisdiction. Additionally, Pike represented approximately
6,000 customers as compared to O & R’s overall customer base of over 100,000. Thus, the incremental operating costs
were not economically viable for O & R. Another factor contributing to the bargain purchase is that the market for utility
companies the size of Pike is relatively small, which resulted in a limited number of bidders. The bargain purchase gain will
reduce the tax basis of the assets acquired, resulting in a deferred tax liability of $964,143 in connection with the acquisition
accounting.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Pro forma unaudited
condensed consolidated financial information for the years ended September 30, 2016 and September 30, 2015 give effect as if the
acquisition occurred on October 1 of the respective year:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="7" style="text-align: center"><font style="color: Black">Fiscal Year Ended</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="7" style="text-align: center"><font style="color: Black">(Unaudited)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">September 30, 2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">September 30, 2015</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; padding-left: 5.4pt"><font style="color: Black">Revenue</font></td><td style="width: 5%"><font style="color: Black"> </font></td>
<td style="width: 4%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">28,202,000</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 5%"><font style="color: Black"> </font></td>
<td style="width: 4%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">33,721,000</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Net income</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">4,350,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">3,517,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Net income per share</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1.74</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1.34</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The combined proforma
financial information does not reflect the realization of any expected cost savings or other synergies from the acquisition of
Pike as a result of restructuring activities, other cost savings initiatives or sales synergies following the completion of the
business combination.</font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"><tr style="vertical-align: bottom"><td style="width: 70%; padding-left: 5.4pt"><font style="color: Black">Cash</font></td><td style="width: 10%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 18%; text-align: right"><font style="color: Black">306,740</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Customer accounts receivable</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,349,183</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Acquisition receivable</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">194,619</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Current assets</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">414,044</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Property and equipment</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">18,754,174</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Other assets</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">744,345</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Acquired intangibles:</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">     Trade
name</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">311,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total fair value of assets acquired</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">22,074,105</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Current liabilities assumed</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,372,147</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Bond assumed</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(3,200,000</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Other liabilities assumed</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(218,744</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Net liabilities assumed</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(4,790,891</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Net assets acquired</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">17,283,214</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Cash consideration</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(15,086,989</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="width: 70%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Gain before deferred tax benefit</font></td><td style="width: 10%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 18%; text-align: right"><font style="color: Black">2,196,225</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Income tax benefit - deferred</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(964,143</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="color: Black">Gain on bargain purchase</font></td><td style="padding-bottom: 2.5pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="color: Black">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="color: Black">1,232,082</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="color: Black"> </font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="7" style="text-align: center"><font style="color: Black">Fiscal Year Ended</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="7" style="text-align: center"><font style="color: Black">(Unaudited)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">September 30, 2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">September 30, 2015</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; padding-left: 5.4pt"><font style="color: Black">Revenue</font></td><td style="width: 5%"><font style="color: Black"> </font></td>
<td style="width: 4%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">28,202,000</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 5%"><font style="color: Black"> </font></td>
<td style="width: 4%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">33,721,000</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Net income</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">4,350,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">3,517,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Net income per share</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1.74</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1.34</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(14) Segment Reporting</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><font style="font-size: 10pt; color: Black">The
Company’s reportable segments have been determined based upon the nature of the products and services offered, customer
base, availability of discrete internal financial information, homogeneity of products, delivery channel and other factors.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><font style="font-size: 10pt; color: Black">The
Corning Natural Gas Corporation (the “Gas Company”) is a gas distribution company providing gas on a commodity and
transportation basis to its customers in the Southern Tier of New York State. Pike County Light & Power Company (“Pike”)
provides electricity and natural gas to Pike County, Pennsylvania. The Holding Company is the parent company of all subsidiaries
and has a 50% ownership in the Leatherstocking joint ventures. Corning Natural Gas Appliance Corporation’s (the “Appliance
Company”) information is presented with the Holding Company as it is has little activity.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The following table
reflects the results of the segments consistent with the Holding Company’s internal financial reporting process. The following
results are used in part, by management, both in evaluating the performance of, and in allocating resources to, each of the segments.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center; vertical-align: bottom"><font style="color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; vertical-align: bottom"><font style="color: Black">Gas Company</font></td><td style="text-align: center; vertical-align: bottom"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; vertical-align: bottom"><font style="color: Black">Pike</font></td><td style="text-align: center; vertical-align: bottom"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; vertical-align: bottom"><font style="color: Black">Holding Company</font></td><td style="text-align: center; vertical-align: bottom"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; vertical-align: bottom"><font style="color: Black">Total Consolidated</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Total electric utility revenue</font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">0</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">620,637</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">0</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">620,637</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total gas utility revenue</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">19,051,661</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">36,948</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">19,088,609</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Bargain purchase adjustment (1)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,232,082</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,232,082</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Investment income</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">102,524</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">102,524</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Equity investment (loss)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">($</font></td><td style="text-align: right"><font style="color: Black">59,670</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">($</font></td><td style="text-align: right"><font style="color: Black">59,670</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Net income (loss)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,003,556</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,179,102</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">($</font></td><td style="text-align: right"><font style="color: Black">61,264</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">3,121,394</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Income tax expense (benefit)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,140,527</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">($</font></td><td style="text-align: right"><font style="color: Black">26,408</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">($</font></td><td style="text-align: right"><font style="color: Black">37,653</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,076,466</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Interest expense</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">865,391</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">35,625</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,291</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">903,307</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Depreciation expense</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,703,190</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">54,414</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,757,604</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Amortization expense</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">424,744</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">16,047</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">440,791</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total assets</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">76,173,336</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">27,340,379</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">3,490,759</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">107,004,474</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Capital expenditures</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">7,224,955</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">280,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">7,504,955</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font-size: 10pt; color: Black">(1)</font></td><td><font style="font-size: 10pt; color: Black">This
is a one-time transaction resulting from the acquisition of Pike.</font></td></tr></table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in"><font style="font-size: 10pt; color: Black">Prior to
the acquisition of Pike County Light & Power Company, Management viewed the Company as one segment.</font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center; vertical-align: bottom"><font style="color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; vertical-align: bottom"><font style="color: Black">Gas Company</font></td><td style="text-align: center; vertical-align: bottom"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; vertical-align: bottom"><font style="color: Black">Pike</font></td><td style="text-align: center; vertical-align: bottom"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; vertical-align: bottom"><font style="color: Black">Holding Company</font></td><td style="text-align: center; vertical-align: bottom"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: center; vertical-align: bottom"><font style="color: Black">Total Consolidated</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Total electric utility revenue</font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">0</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">620,637</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">0</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">620,637</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total gas utility revenue</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">19,051,661</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">36,948</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">19,088,609</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Bargain purchase adjustment (1)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,232,082</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,232,082</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Investment income</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">102,524</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">102,524</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Equity investment (loss)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">($</font></td><td style="text-align: right"><font style="color: Black">59,670</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">($</font></td><td style="text-align: right"><font style="color: Black">59,670</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Net income (loss)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,003,556</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,179,102</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">($</font></td><td style="text-align: right"><font style="color: Black">61,264</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">3,121,394</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Income tax expense (benefit)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,140,527</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">($</font></td><td style="text-align: right"><font style="color: Black">26,408</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">($</font></td><td style="text-align: right"><font style="color: Black">37,653</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,076,466</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Interest expense</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">865,391</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">35,625</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">2,291</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">903,307</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Depreciation expense</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,703,190</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">54,414</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,757,604</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Amortization expense</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">424,744</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">16,047</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">440,791</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total assets</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">76,173,336</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">27,340,379</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">3,490,759</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">107,004,474</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Capital expenditures</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">7,224,955</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">280,000</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">0</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">7,504,955</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.25in"><font style="font-size: 10pt; color: Black">(1)</font></td><td><font style="font-size: 10pt; color: Black">This
is a one-time transaction resulting from the acquisition of Pike.</font></td></tr></table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(15) Stock Options</b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">A summary of all stock
option activity and information related to all options outstanding follows:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>2015</u></font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Stock
Options</u></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Number
of</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Weighted</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Average</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Shares</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Average</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Remaining</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Remaining</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Exercise</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Contractual</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Options</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Price</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Term</u></font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Outstanding at October
1, 2014</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                13,500</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$12.83</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Options granted</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                         -</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Options exercised
during year ended September 30, 2015</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                  1,500</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$12.83</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Options expired during
year ended September 30, 2015</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                         -</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Outstanding at September
30, 2015</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: right"><font style="font-size: 10pt; text-underline-style: double; color: Black"><u>12,000
</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$12.83</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">.25
years</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Exercisable at September
30, 2015</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: right"><font style="font-size: 10pt; text-underline-style: double; color: Black"><u>12,000
</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$12.83</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">.25
years</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>2016</u></font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" colspan="3" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Stock
Options</u></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Number
of</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Weighted</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Average</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Shares</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Average</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Remaining</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Remaining</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Exercise</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Contractual</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Options</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Price</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>Term</u></font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Outstanding at October
1, 2015</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                12,000</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$12.83</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Options granted</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                         -</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Options exercised
during year ended September 30, 2016</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                  9,000</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$12.83</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Options expired during
year ended September 30, 2016</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">                  3,000</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$12.83</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Outstanding at September
30, 2016</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: right"><font style="font-size: 10pt; text-underline-style: double; color: Black"><u>-
</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$0.00</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Exercisable at September
30, 2016</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: right"><font style="font-size: 10pt; text-underline-style: double; color: Black"><u>-
</u></font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">$0.00</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">There is no unrecognized
cost related to options at September 30, 2016 because all options have fully vested.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(16) Commitments
</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The Gas Company is
a local distribution company and has contracted for gas supply from various sources to provide the commodity to the city gates.
The city gate is the transfer point at which we take ownership of the gas supply from local producers and interstate pipelines
and billing metering starts. The Gas Company maintains storage capacity of approximately 736,000 Dekatherms. Prior to April 2014,
the Gas Company contracted with a third-party to manage its gas supply and storage. Starting in April 2014, the Gas Company assumed
responsibility for managing its gas supply assets. At September 30, 2016, the Gas Company had 565,014 dekatherms at $903,007 in
storage. As the result of these actions, we anticipate that the Gas Company will have sufficient gas to supply our customers for
the 2016-2017 winter heating season. The contract with O&R should provide sufficient electricity and natural gas to supply
Pike for the 2016-2017 winter heating and summer cooling.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The Gas Company has
secured the NYPSC required fixed price and storage gas supply for the winter season and is managing its gas storage and gas contracts
to assure that the Gas Company follows its gas supply and acquisition plan. The gas supply plan is a formal document that defines
how we acquire natural gas to supply our customers. The plan is submitted to the NYPSC every year and adherence to the plan is
a regulatory mandate. Assuming no extraordinary conditions for the winter season, gas supply, both flowing and storage, will be
adequate to serve our approximately 14,800 customers.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Environmental Considerations:
The Gas Company and Pike are 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 is currently putting procedures in place to do the same at Pike. Management
believes the Gas Company and Pike are in compliance with all applicable regulations.</font></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(1) Summary of Significant Accounting Policies </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The Corning Natural Gas Holding
Corporation’s (the “Holding Company”) primary business, through its subsidiaries, Corning Natural Gas Corporation
(“Corning Gas” or “Gas Company”) and Pike County Light & Power Company (“Pike”), is natural
gas and electric distribution. Corning Gas provides gas on a commodity and transportation basis to its customers in the Southern
Tier of New York State. Pike provides electric and gas service to customers in Pike County, Pennsylvania. As used in these notes,
the term “the Company” refers to the consolidated operations of the Holding Company, the Gas Company, Pike and the
Appliance Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The Company follows the Uniform
System of Accounts prescribed by the Public Service Commission of the State of New York (NYPSC) which has jurisdiction over and
sets rates for New York State gas distribution companies and the Pennsylvania Public Utility Commission (“PAPUC”) which
has jurisdiction over and sets rates for Pennsylvania gas and electric distribution companies. The Company’s regulated operations
meet the criteria to and, accordingly, follow the accounting and reporting of the Financial Accounting Standard Board (“FASB”)
ASC 980 “Regulated Operations”<i>. </i>The 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 Company are summarized below.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font-size: 10pt"><b>(a) Principles of Consolidation and Presentation </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The consolidated financial
statements include the Holding Company and its wholly owned subsidiaries, Corning Gas, Pike and Appliance Company. All intercompany
accounts and balances have been eliminated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">It is the Company’s
policy to reclassify amounts in the prior year financial statements to conform to the current year presentation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 6pt"><b>(b) Property, Plant
and Equipment </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Property, plant and equipment
are stated at the historical cost of construction or acquisition. These costs include payroll, fringe benefits, materials and supplies
and transportation costs. The Company charges normal repairs to maintenance expense.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(c) Depreciation</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><b> </b></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The 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 Corning Gas utility
plant, expressed as an annual percentage of depreciable property was 1.7% and 2.2% for of the years ended September 30, 2016 and
2015, respectively. 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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The depreciation rate for
one month for Pike utility plant was 0.3%. The annualized percentage would be 3.5%. Pike also charges the original cost plus costs
of removal less any salvage to accumulated depreciation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(d) Accounting for Impairment</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b> </b></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">FASB ASC 360-10-15, “Accounting
for the Impairment or Disposal of Long-Lived Assets” establishes accounting standards to account for the impairment of long-lived
assets, and certain identifiable intangibles. Under FASB ASC 360-10-15, the Company reviews assets for impairment whenever events
or changes in circumstances indicate that the carrying amount may not be recoverable. FASB ASC 360-10-15 also requires that a rate
regulated enterprise recognize an impairment when regulatory assets are no longer probable of recovery. No impairment losses were
incurred for the years ended September 30, 2016 and 2015.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(e) Marketable Securities</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">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 2016 and 2015, the Gas Company sold equity securities
for realized gains included in earnings of $62,994 and $88,028, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(f) Fair Value of Financial
Instruments</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The Company has determined
the fair value of debt and other financial instruments using a valuation hierarchy. The hierarchy, which prioritizes the inputs
used in measuring fair value, consists of three levels. Level 1 uses observable inputs such as quoted prices in active markets;
Level 2 uses inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3,
which is defined as unobservable inputs in which little or no market data exists, requires the Company to develop its own assumptions.
The carrying amount of debt on the Consolidated Balance Sheets approximates fair value as a result of instruments bearing interest
rates that approximate current market rates for similar instruments, and the carrying amounts for cash, accounts receivable and
accounts payable approximate fair value due to their short-term nature. The assets used to fund the pension plan and marketable
securities, which fund the Gas Company’s deferred compensation plan, are valued based on Level 1 inputs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The Company has determined
the fair value of certain assets through application of FASB ASC 820 “Fair Value Measurements and Disclosures”.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Fair value of assets and
liabilities measured on a recurring basis at September 30, 2016 and 2015 are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font-size: 12pt; width: 100%; border-collapse: collapse">
<tr>
<td colspan="3" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline"><font style="font-size: 10pt"><u>Fair Value Measurements at Reporting Date Using:</u></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 23%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt"><u>Fair Value</u></font></td>
<td style="width: 42%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt"><u>Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1)</u></font></td>
<td nowrap="nowrap" style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt"><u>Level 2</u></font></td>
<td nowrap="nowrap" style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt"><u>Level 3</u></font></td></tr>
<tr>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt"><u>September 30, 2016</u></font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">Available-for-sale securities</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$2,220,098</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$2,220,098</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$-</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$-</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"> </td></tr>
<tr>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt"><u>September 30, 2015</u></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">Available-for-sale securities</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$2,153,785</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$2,153,785</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$-</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$-</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><font style="font-size: 10pt"> </font> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Financial assets and liabilities
valued using level 1 inputs are based on unadjusted quoted market prices within active markets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The pension assets in Note
11 are valued using level 1 inputs.</p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font-size: 12pt; border-collapse: collapse">
<tr>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: bottom; width: 16px; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: bottom; width: 16px; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(g) Cash and Cash Equivalents
</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(h) Accounts Receivable
</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Accounts receivable are stated
net of an allowance for doubtful accounts. The Company estimates the allowance based on its analysis of specific balances, taking
into consideration the age of past due accounts and relying on rules and guidelines established by the NYPSC and PAPUC regarding
customer disconnects. Under the terms of the Transitional Service Agreement (“TSA”) signed as part of the Pike acquisition
from Orange & Rockland Utilities, Inc. (“O&R”), O&R will continue to bill Pike customers for up to twelve
months after closing.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Pike accrues for unbilled
revenue monthly for customer meters read in the current month and not billed until the next month. The unbilled revenues are recognized
as an unbilled revenue asset, separate from customer accounts receivable on the Company’s Consolidated Balance Sheet.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Related party receivables
are expenditures paid on behalf of the Holding Company’s Joint Venture investments. We expect repayment on these amounts
during the year ended September 30, 2017.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font-size: 10pt"><b>(l) </b></p>
<p style="font-size: 10pt"><b>Gas Stored Underground</b></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Gas stored underground is
carried at an average unit cost method as prescribed by the NYPSC. Pike does not have any gas storage.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(j) Materials and Supplies
Inventories </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Materials and supplies inventories
are stated at the lower of cost or market, cost being determined on an average unit price basis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(k) Debt Issuance Costs</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b> </b></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Costs associated with the
issuance of debt by the Company are deferred and amortized over the lives of the related debt.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(l) Regulatory Matters</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Certain costs of the Company
are deferred and recognized as expenses when they are reflected in rates and recovered from customers as permitted by FASB ASC
980. These costs are shown as regulatory assets. Such costs arise from the traditional cost-of-service rate setting approach whereby
all prudently incurred costs are generally recoverable through rates. Deferral of these costs is appropriate while the Company’s
rates are regulated under a cost-of-service approach of the NYPSC and PAPUC for utilities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">As regulated utilities, the
Gas Company and Pike defer certain costs for future recovery. In a purely competitive environment, such costs might have been currently
expensed. Accordingly, if the Company’s rate settings were changed from a cost-of-service approach and the Gas Company and
Pike were no longer allowed to defer these costs under FASB ASC 980, certain of these assets might not be fully recoverable. However,
the Company cannot predict the impact, if any, of competition and continues to operate in a cost-of-service based regulatory environment.
Accordingly, the Company believes that accounting under FASB ASC 980 is appropriate<b>.</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(m) Revenue and Cost of
Sales</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">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% greater or less than the 30-year average. As a result, the effect
on revenue fluctuations of weather related gas sales is somewhat moderated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Pike recognizes revenues
for electric and gas service on a monthly billing cycle basis. Pike does accrue for gas and electricity delivered. Pike does not
have a weather normalization clause as protection against severe weather.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">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<sup>st</sup> each year. Pike does not have a revenue decoupling mechanism as part of
their rate structure.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Gas purchases are recorded
on readings of suppliers’ meters as of the end of each month. The Gas Company’s and Pike’s rate tariffs include
a Gas Adjustment Clause (“GAC”) or Gas Rate Clause (“GRC”) 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 NYPSC and PAPUC have provided
for an annual reconciliation of recoverable GAC and GRC costs with applicable revenue billed. Any excess or deficiency in GAC and
GRC 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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">As part of its rate structure
for electric sales, Pike is required to file quarterly a Statement of Default Services Charges. The Default Service Charges are
separated into two components: (1) the Market Price of Electric Supply which is based on the forecast of electric supply costs
applied to service classification-specific factors to reflect each service classification’s load characteristics, forecast
sales and applicable losses, and (2) an Electric Supply Adjustment Charge to reconcile differences between default service revenues
and costs. The new electric rates go into effect on the first day of the month after the filing is accepted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(n) Federal Income Tax
</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The 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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(o) Revenue Taxes</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The Gas Company collects
state revenue taxes on residential delivery rates. The amount included in Revenue and Taxes other than Federal Income Taxes was
$158,893 and $175,294 in 2016 and 2015, respectively. Pike collects state revenue taxes on residential electric delivery rates.
The amounts included in the financial statements were immaterial for one month of activity.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(p) Stock Based Compensation</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The Holding Company accounts
for stock based awards in accordance with FASB ASC 718. The Holding Company awards restricted shares as compensation to our directors. 
The shares awarded become unrestricted upon a director leaving the board.  Directors who also serve as officers of Corning
Gas are not compensated for their service as directors. Since these shares are restricted, in recording compensation expense,
the expense incurred is 25% less than the closing price of the stock on the day the stock was awarded. Each director is awarded
375 shares for each quarter served.</p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font-size: 12pt; border-collapse: collapse">
<tr>
<td style="vertical-align: top; width: 15%; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 24%; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 15%; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 15%; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 15%; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 16%; padding-right: 5.4pt; padding-left: 5.4pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(q) Earnings Per Share</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Basic earnings per share
are computed by dividing income available for common stock (net income less dividends declared on Series B Preferred 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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">For the fiscal years 2016
and 2015, the net additional common stock equivalents had a $0.02 and $0.00 per share effect on the calculation of the dilutive
earnings per share. The net income and average shares outstanding used to compute basic and diluted earnings per share for the
years ended September 30, 2016 and September 30, 2015 are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt">
<tr style="text-align: center; vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid">2016</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: Black 1pt solid">2015</td></tr>
<tr style="vertical-align: bottom">
<td style="width: 58%; text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt">Net income attributable to common shareholders</font></td>
<td style="width: 8%; color: red"> </td>
<td style="width: 1%; color: red; text-align: left">$</td>
<td style="width: 11%; color: red; text-align: right">3,058,618</td>
<td style="width: 1%; color: red; text-align: left"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 11%; text-align: right">1,782,081</td>
<td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="color: red; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Add Preferred B Dividends</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">62,776</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">Net income</td>
<td style="color: red"> </td>
<td style="color: red; text-align: left">$</td>
<td style="color: red; text-align: right">3,121,394</td>
<td style="color: red; text-align: left"> </td>
<td> </td>
<td style="text-align: left">$</td>
<td style="text-align: right">1,782,081</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt">Average shares outstanding - basic</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">2,470,171</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">2,440,932</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt">Effect of dilutive stock options</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">—  </td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">4,002</td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Effect of Preferred B Shares</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">81,421</td>
<td style="padding-bottom: 1pt; text-align: left"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt">Average shares outstanding - diluted</td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">2,551,592</td>
<td style="text-align: left"> </td>
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: right">2,444,934</td>
<td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(r) 311 Transportation
Agreement /Compressor Station</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">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 million compressor station and $2.1 million pipeline from the local producer
for two dollars. The local producer has the right to repurchase these facilities for two dollars in ten years. This transaction
became effective on May 12, 2011, when the station began operations. Although the Gas Company has plant available for use that
had an original cost of $13.1 million, only two dollars was recognized in accordance with the Uniform System of Accounts (313.2)
which states that in the case of gas plant contributed to the utility, gas plant accounts shall be charged only with such expenses,
if any, incurred by the utility.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(s) Collective Bargaining
Agreement</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The Company had 59 employees
as of September 30, 2016, and 58 as of September 30, 2015. Of this total, nearly half are members of the International Brotherhood
of Electrical Workers Local 139 labor union working under an agreement effective until April 2, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(t) Leatherstocking Companies</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The Holding Company has a
50% investment in Leatherstocking Gas Company, LLC (“Leatherstocking Gas”) and Leatherstocking Pipeline Company, LLC
(“Leatherstocking Pipeline”). The investment and equity in both companies (collectively, “Joint Ventures”)
has been recognized in the consolidated financial statements. The Holding Company has accounted for its equity investment using
the equity method of accounting based on the guidelines established in FASB ASC 323. In applying the guidance of FASB ASC 323,
the Holding Company recognized the investment in the Joint Ventures as an asset at cost. The investment will fluctuate in future
periods based on the Holding Company’s allocable share of earnings or losses from the Joint Ventures which is recognized
through earnings.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><b> </b></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(u) Business Combination
</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The Company applies the acquisition
method of accounting for business acquisitions. Under the acquisition method, the underlying tangible and intangible assets acquired
and liabilities assumed are recorded based on their respective fair values at the date of acquisition. The Company uses a valuation
hierarchy, as further described in Fair Value of Financial Instruments, to determine the fair values. Fair Value is subject to
revision within the measurement period, not to exceed one year from the date of acquisition. Administration costs to acquire a
business may include, but are not limited to, fees for accounting, legal and valuation services and are expensed as incurred in
the Consolidated Statements of Comprehensive Income. In the case of the acquisition of Pike, many factors contributed to a bargain
purchase. O & R primarily operates in New York and New Jersey, and having an operation in Pennsylvania created numerous additional
operating costs given its differing jurisdiction. Additionally, Pike represented approximately 6,000 customers as compared to O
& R’s overall customer base of over 100,000. Thus, the incremental operating costs were not economically viable for O
& R. Another factor contributing to the bargain purchase is that the market for utility companies the size of Pike is relatively
small, which resulted in a limited number of bidders.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(v) Preferred Stock and
Temporary Equity</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">This is a new accounting
policy effective for fiscal 2016. The Holding Company classifies conditionally redeemable convertible preferred shares, which includes
preferred shares subject to redemption upon the occurrence of uncertain events not solely within control of the Holding Company,
as temporary equity in the mezzanine section of the balance sheet, in accordance with the guidance enumerated in FASB ASC No. 480-10
"Distinguishing Liabilities from Equity". The Company also analyzes the embedded conversion feature for bifurcation, based
on whether the host instrument has more equity-like or debt-like characteristics. Dividends are recorded as a reduction to retained
earnings and issuance costs reduce the initial proceeds and then accreted over the life of the instrument to the redemption amount.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The Holding Company records
mandatorily redeemable stock as a liability in accordance with ASC 480. Dividends are recorded as interest expense and issuance
costs are treated the same way as debt issuance costs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(w) New Accounting Pronouncements
Not Yet Adopted </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">In May 2014, the Financial
Accounting Standards Board (“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 are currently evaluating the effect the updated standard will have on our consolidated financial statements and related
disclosures but do not expect the adoption to have a material impact.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">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. The debt issuance costs will be reclassified
to liabilities on the balance sheet. The amount as of September 30, 2016 is $412,316.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">In July 2015, the FASB issued
new accounting guidance simplifying inventory measurement by requiring companies to value inventory at the lower of cost or 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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">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 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. This guidance is effective
for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years.
We are still evaluating whether this guidance will have a material effect on our consolidated financial statements when adopted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">In January 2016, the FASB
issued new accounting guidance on the recognition and measurement of financial assets and financial liabilities. The new guidance
requires for equity investments (except those accounted for under the equity method of accounting or those that request in consolidation
of the investee) to be measured at fair value with changes in fair value recognized in net income. This guidance is effective for
financial statements issued for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early
application is not permitted. We are still evaluating whether this guidance will have a material effect on our consolidated financial
statements when adopted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">In March 2016, the FASB issued
new accounting guidance on investments that qualify for use of the equity method of accounting. The new guidance eliminates the
need for retroactive adjustments when qualifying for the equity method. 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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">In March 2016, the FASB issued
new guidance regarding share-based payment transactions, including income tax consequence, classification of awards and classification
on the statement of cash flows. This guidance is effective for financial statements issued for fiscal years beginning after December
15, 2016 and interim periods within those fiscal years. We are still evaluating whether this guidance will have a material effect
on our consolidated financial statements when adopted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b><u>Early Adoption of New
Accounting Guidance</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">In November 2015, the FASB
issued new accounting guidance on the classification of deferred taxes. The new guidance requires that all deferred tax assets
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 have chosen
to apply the guidance retroactively. As a result, as of September 30, 2015, we have reclassified a deferred tax liability of $385,973
from short-term to long-term. As of September 30, 2016, we have reclassified a deferred tax liability of $471,764 from short-term
to long-term.</p>
<p style="margin: 0pt"></p>
<font style="font-size: 10pt; color: Black"><b>(a)</b></font> <font style="font-size: 10pt; color: Black"><b>Principles of Consolidation and Presentation </b></font>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">The consolidated
financial statements include the Holding Company and its wholly owned subsidiaries, Corning Gas, Pike and Appliance Company. All
intercompany accounts and balances have been eliminated.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">It is the Company’s
policy to reclassify amounts in the prior year financial statements to conform to the current year presentation.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 6pt"><font style="font-size: 10pt; color: Black"><b>(b)
Property, Plant and Equipment </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">Property, plant
and equipment are stated at the historical cost of construction or acquisition. These costs include payroll, fringe benefits,
materials and supplies and transportation costs. The Company charges normal repairs to maintenance expense.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(c) Depreciation</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">The 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 Corning
Gas utility plant, expressed as an annual percentage of depreciable property was 1.7% and 2.2% for of the years ended September
30, 2016 and 2015, respectively. 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.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">The depreciation
rate for one month for Pike utility plant was 0.3%. The annualized percentage would be 3.5%. Pike also charges the original cost
plus costs of removal less any salvage to accumulated depreciation.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(d)
Accounting for Impairment</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b></b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">FASB ASC 360-10-15,
“Accounting for the Impairment or Disposal of Long-Lived Assets” establishes accounting standards to account for the
impairment of long-lived assets, and certain identifiable intangibles. Under FASB ASC 360-10-15, the Company reviews assets for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. FASB ASC 360-10-15
also requires that a rate regulated enterprise recognize an impairment when regulatory assets are no longer probable of recovery.
No impairment losses were incurred for the years ended September 30, 2016 and 2015.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(e) Marketable
Securities</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">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 2016 and 2015, the Gas Company sold equity securities for realized gains included in earnings
of $62,994 and $88,028, respectively.</font></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><b>(f) Fair Value of Financial
Instruments</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The Company has determined
the fair value of debt and other financial instruments using a valuation hierarchy. The hierarchy, which prioritizes the inputs
used in measuring fair value, consists of three levels. Level 1 uses observable inputs such as quoted prices in active markets;
Level 2 uses inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3,
which is defined as unobservable inputs in which little or no market data exists, requires the Company to develop its own assumptions.
The carrying amount of debt on the Consolidated Balance Sheets approximates fair value as a result of instruments bearing interest
rates that approximate current market rates for similar instruments, and the carrying amounts for cash, accounts receivable and
accounts payable approximate fair value due to their short-term nature. The assets used to fund the pension plan and marketable
securities, which fund the Gas Company’s deferred compensation plan, are valued based on Level 1 inputs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The Company has determined
the fair value of certain assets through application of FASB ASC 820 “Fair Value Measurements and Disclosures”.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Fair value of assets and
liabilities measured on a recurring basis at September 30, 2016 and 2015 are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font-size: 12pt; width: 100%; border-collapse: collapse">
<tr>
<td colspan="3" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline"><font style="font-size: 10pt"><u>Fair Value Measurements at Reporting Date Using:</u></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 23%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt"><u>Fair Value</u></font></td>
<td style="width: 42%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt"><u>Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1)</u></font></td>
<td nowrap="nowrap" style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt"><u>Level 2</u></font></td>
<td nowrap="nowrap" style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt"><u>Level 3</u></font></td></tr>
<tr>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt"><u>September 30, 2016</u></font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">Available-for-sale securities</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$2,220,098</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$2,220,098</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$-</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$-</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"> </td></tr>
<tr>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt"><u>September 30, 2015</u></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">Available-for-sale securities</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$2,153,785</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$2,153,785</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$-</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt">$-</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><font style="font-size: 10pt"> </font> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">Financial assets and liabilities
valued using level 1 inputs are based on unadjusted quoted market prices within active markets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0">The pension assets in Note
11 are valued using level 1 inputs.</p>
<p style="margin: 0pt"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(g) Cash
and Cash Equivalents </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">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.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(h) Accounts
Receivable </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">Accounts receivable
are stated net of an allowance for doubtful accounts. The Company estimates the allowance based on its analysis of specific balances,
taking into consideration the age of past due accounts and relying on rules and guidelines established by the NYPSC and PAPUC
regarding customer disconnects. Under the terms of the Transitional Service Agreement (“TSA”) signed as part of the
Pike acquisition from Orange & Rockland Utilities, Inc. (“O&R”), O&R will continue to bill Pike customers
for up to twelve months after closing.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">Pike accrues
for unbilled revenue monthly for customer meters read in the current month and not billed until the next month. The unbilled revenues
are recognized as an unbilled revenue asset, separate from customer accounts receivable on the Company’s Consolidated Balance
Sheet.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">Related party
receivables are expenditures paid on behalf of the Holding Company’s Joint Venture investments. We expect repayment on these
amounts during the year ended September 30, 2017.</font></p>
<font style="font-size: 10pt; color: Black"><b>(l) </b></font><font style="font-size: 10pt; color: Black"><b>Gas
Stored Underground</b></font>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 1in"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">Gas
stored underground is carried at an average unit cost method as prescribed by the NYPSC. Pike does not have any gas storage.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(j)
Materials and Supplies Inventories </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">Materials and
supplies inventories are stated at the lower of cost or market, cost being determined on an average unit price basis.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(k)
Debt Issuance Costs</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b></b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">Costs
associated with the issuance of debt by the Company are deferred and amortized over the lives of the related debt.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(l)
Regulatory Matters</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">Certain
costs of the Company are deferred and recognized as expenses when they are reflected in rates and recovered from customers as
permitted by FASB ASC 980. These costs are shown as regulatory assets. Such costs arise from the traditional cost-of-service rate
setting approach whereby all prudently incurred costs are generally recoverable through rates. Deferral of these costs is appropriate
while the Company’s rates are regulated under a cost-of-service approach of the NYPSC and PAPUC for utilities.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">As regulated
utilities, the Gas Company and Pike defer certain costs for future recovery. In a purely competitive environment, such costs might
have been currently expensed. Accordingly, if the Company’s rate settings were changed from a cost-of-service approach and
the Gas Company and Pike were no longer allowed to defer these costs under FASB ASC 980, certain of these assets might not be
fully recoverable. However, the Company cannot predict the impact, if any, of competition and continues to operate in a cost-of-service
based regulatory environment. Accordingly, the Company believes that accounting under FASB ASC 980 is appropriate<b>.</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(m)
Revenue and Cost of Sales</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">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% greater or less than the 30-year average. As a result, the effect on revenue fluctuations of weather related
gas sales is somewhat moderated.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">Pike recognizes
revenues for electric and gas service on a monthly billing cycle basis. Pike does accrue for gas and electricity delivered. Pike
does not have a weather normalization clause as protection against severe weather.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">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<sup>st</sup> each year. Pike does not have a revenue decoupling mechanism
as part of their rate structure.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">Gas purchases
are recorded on readings of suppliers’ meters as of the end of each month. The Gas Company’s and Pike’s rate
tariffs include a Gas Adjustment Clause (“GAC”) or Gas Rate Clause (“GRC”) 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 NYPSC
and PAPUC have provided for an annual reconciliation of recoverable GAC and GRC costs with applicable revenue billed. Any excess
or deficiency in GAC and GRC 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.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">As part of
its rate structure for electric sales, Pike is required to file quarterly a Statement of Default Services Charges. The Default
Service Charges are separated into two components: (1) the Market Price of Electric Supply which is based on the forecast of electric
supply costs applied to service classification-specific factors to reflect each service classification’s load characteristics,
forecast sales and applicable losses, and (2) an Electric Supply Adjustment Charge to reconcile differences between default service
revenues and costs. The new electric rates go into effect on the first day of the month after the filing is accepted.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(n)
Federal Income Tax </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">The 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.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(o) Revenue
Taxes</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">The Gas Company
collects state revenue taxes on residential delivery rates. The amount included in Revenue and Taxes other than Federal Income
Taxes was $158,893 and $175,294 in 2016 and 2015, respectively. Pike collects state revenue taxes on residential electric delivery
rates. The amounts included in the financial statements were immaterial for one month of activity.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(p)
Stock Based Compensation</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">The Holding
Company accounts for stock based awards in accordance with FASB ASC 718. The Holding Company awards restricted shares as compensation
to our directors.  The shares awarded become unrestricted upon a director leaving the board.  Directors who also serve
as officers of Corning Gas are not compensated for their service as directors. Since these shares are restricted, in recording
compensation expense, the expense incurred is 25% less than the closing price of the stock on the day the stock was awarded. Each
director is awarded 375 shares for each quarter served.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(q)
Earnings Per Share</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><font style="font-size: 10pt; color: Black"><b><i> </i></b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">Basic earnings
per share are computed by dividing income available for common stock (net income less dividends declared on Series B Preferred
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.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">For the fiscal
years 2016 and 2015, the net additional common stock equivalents had a $0.02 and $0.00 per share effect on the calculation of
the dilutive earnings per share. The net income and average shares outstanding used to compute basic and diluted earnings per
share for the years ended September 30, 2016 and September 30, 2015 are as follows:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="text-align: center; vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Net income attributable
to common shareholders</font></td><td style="width: 8%; color: red"><font style="color: Black"> </font></td>
<td style="width: 1%; color: red; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; color: red; text-align: right"><font style="color: Black">3,058,618</font></td><td style="width: 1%; color: red; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">1,782,081</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="color: red; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Add Preferred
B Dividends</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">62,776</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Net income</font></td><td style="color: red"><font style="color: Black"> </font></td>
<td style="color: red; text-align: left"><font style="color: Black">$</font></td><td style="color: red; text-align: right"><font style="color: Black">3,121,394</font></td><td style="color: red; text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,782,081</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Average shares outstanding - basic</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,470,171</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,440,932</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Effect of dilutive stock options</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">4,002</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Effect of Preferred B Shares</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">81,421</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Average shares outstanding - diluted</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,551,592</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,444,934</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(r)
311 Transportation Agreement /Compressor Station</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">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 million compressor station and $2.1 million pipeline
from the local producer for two dollars. The local producer has the right to repurchase these facilities for two dollars in ten
years. This transaction became effective on May 12, 2011, when the station began operations. Although the Gas Company has plant
available for use that had an original cost of $13.1 million, only two dollars was recognized in accordance with the Uniform System
of Accounts (313.2) which states that in the case of gas plant contributed to the utility, gas plant accounts shall be charged
only with such expenses, if any, incurred by the utility.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(s) Collective
Bargaining Agreement</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">The Company
had 59 employees as of September 30, 2016, and 58 as of September 30, 2015. Of this total, nearly half are members of the International
Brotherhood of Electrical Workers Local 139 labor union working under an agreement effective until April 2, 2018.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(t) Leatherstocking
Companies</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">The
Holding Company has a 50% investment in Leatherstocking Gas Company, LLC (“Leatherstocking Gas”) and
Leatherstocking Pipeline Company, LLC (“Leatherstocking Pipeline”). The investment and equity in both companies
(collectively, “Joint Ventures”) has been recognized in the consolidated financial statements. The Holding
Company has accounted for its equity investment using the equity method of accounting based on the guidelines
established in FASB ASC 323. In applying the guidance of FASB ASC 323, the Holding Company recognized the investment in the
Joint Ventures as an asset at cost. The investment will fluctuate in future periods based on the Holding Company’s
allocable share of earnings or losses from the Joint Ventures which is recognized through earnings.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(u)
Business Combination </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">The Company
applies the acquisition method of accounting for business acquisitions. Under the acquisition method, the underlying tangible
and intangible assets acquired and liabilities assumed are recorded based on their respective fair values at the date of acquisition.
The Company uses a valuation hierarchy, as further described in Fair Value of Financial Instruments, to determine the fair values.
Fair Value is subject to revision within the measurement period, not to exceed one year from the date of acquisition. Administration
costs to acquire a business may include, but are not limited to, fees for accounting, legal and valuation services and are expensed
as incurred in the Consolidated Statements of Comprehensive Income. In the case of the acquisition of Pike, many factors contributed
to a bargain purchase. O & R primarily operates in New York and New Jersey, and having an operation in Pennsylvania created
numerous additional operating costs given its differing jurisdiction. Additionally, Pike represented approximately 6,000 customers
as compared to O & R’s overall customer base of over 100,000. Thus, the incremental operating costs were not economically
viable for O & R. Another factor contributing to the bargain purchase is that the market for utility companies the size of
Pike is relatively small, which resulted in a limited number of bidders.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(v)
Preferred Stock and Temporary Equity</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">This is a new
accounting policy effective for fiscal 2016. The Holding Company classifies conditionally redeemable convertible preferred shares,
which includes preferred shares subject to redemption upon the occurrence of uncertain events not solely within control of the
Holding Company, as temporary equity in the mezzanine section of the balance sheet, in accordance with the guidance enumerated
in FASB ASC No. 480-10 "Distinguishing Liabilities from Equity". The Company also analyzes the embedded conversion feature
for bifurcation, based on whether the host instrument has more equity-like or debt-like characteristics. Dividends are recorded
as a reduction to retained earnings and issuance costs reduce the initial proceeds and then accreted over the life of the instrument
to the redemption amount.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">The Holding
Company records mandatorily redeemable stock as a liability in accordance with ASC 480. Dividends are recorded as interest expense
and issuance costs are treated the same way as debt issuance costs.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b>(w)
New Accounting Pronouncements Not Yet Adopted </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">In May 2014,
the Financial Accounting Standards Board (“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 are currently evaluating the effect the updated standard will have on our consolidated financial statements
and related disclosures but do not expect the adoption to have a material impact.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">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. The debt issuance costs
will be reclassified to liabilities on the balance sheet. The amount as of September 30, 2016 is $412,316.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">In July 2015,
the FASB issued new accounting guidance simplifying inventory measurement by requiring companies to value inventory at the lower
of cost or 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.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">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 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. This
guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within
those fiscal years. We are still evaluating whether this guidance will have a material effect on our consolidated financial statements
when adopted.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">In January
2016, the FASB issued new accounting guidance on the recognition and measurement of financial assets and financial liabilities.
The new guidance requires for equity investments (except those accounted for under the equity method of accounting or those that
request in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This
guidance is effective for financial statements issued for fiscal years beginning after December 15, 2017 and interim periods within
those fiscal years. Early application is not permitted. We are still evaluating whether this guidance will have a material effect
on our consolidated financial statements when adopted.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">In March 2016,
the FASB issued new accounting guidance on investments that qualify for use of the equity method of accounting. The new guidance
eliminates the need for retroactive adjustments when qualifying for the equity method. 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.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">In March 2016,
the FASB issued new guidance regarding share-based payment transactions, including income tax consequence, classification of awards
and classification on the statement of cash flows. This guidance is effective for financial statements issued for fiscal years
beginning after December 15, 2016 and interim periods within those fiscal years. We are still evaluating whether this guidance
will have a material effect on our consolidated financial statements when adopted.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black"><b><u>Early
Adoption of New Accounting Guidance</u></b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0"><font style="font-size: 10pt; color: Black">In
November 2015, the FASB issued new accounting guidance on the classification of deferred taxes. The new guidance requires that
all deferred tax assets 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 have chosen to apply the guidance retroactively. As a result, as of September 30, 2015, we have reclassified
a deferred tax liability of $385,973 from short-term to long-term. As of September 30, 2016, we have reclassified a deferred tax
liability of $471,764 from short-term to long-term.</font></p>
4920314
2632575
360000
244263
244263
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(11) Income Taxes
</b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black">Income tax expense for the years ended September 30 is as follows:</font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="3"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; padding-left: 5.4pt"><font style="color: Black">Current</font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">10,000</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">78,000</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Deferred</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">1,066,466</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">991,631</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Total</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,076,466</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,069,631</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="9"><font style="color: Black">Actual income tax expense differs from the expected tax expense (computed by applying
the federal corporate tax rate of 34%),</font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="9"><font style="color: Black">as follows:</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td colspan="2" style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td colspan="2" style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Expected federal tax expense</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,427,272</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">969,582</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Regulatory deferred tax adjustment</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(141,567</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(55,600</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Bargain purchase tax adjustment</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(418,908</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Dividends received deduction</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(11,888</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(11,433</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">State tax expense (net of federal)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">190,076</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">175,331</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Other, net</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">31,481</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(8,249</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Actual tax expense</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,076,466</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,069,631</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Regulatory deferred
tax adjustment represents the deferred tax on the leak survey and repair costs petition that the Gas Company filed in April, 2016
with the New York Public Service Commission. In that petition the Gas Company is requesting recovery of the $349,547 and the associated
income tax effects. The gain on the bargain purchase adjustment with respect to the acquisition of Pike is included in net income
and is not taxable so was presented as an offset to income.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The tax effects of
temporary differences that result in deferred income tax assets and liabilities at September 30 are as follows:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Deferred income tax assets:</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"><font style="color: Black">Unbilled revenue</font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">48,327</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 8%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 12%; text-align: right"><font style="color: Black">57,521</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Deferred compensation reserve</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">556,653</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">604,458</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Post-retirement benefit obligations</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,678,585</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,246,383</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Inventories</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">20,054</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">27,788</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Deficiency of gas adjustment clause revenues
billed</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">85,262</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">NOL carryforwards</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,852,220</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,597,946</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Other</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">971,815</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">1,285,010</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total deferred income tax assets</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">7,127,654</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">6,904,368</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Deferred income tax liabilities:</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Property, plant and equipment, principally due
to</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">differences in depreciation</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">9,171,142</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">7,759,860</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Pension benefit obligations</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,830,050</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,298,794</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Comprehensive income</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">61,866</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">19,892</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Deferred rate expense and allocations</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">379,879</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">365,091</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Deficiency of gas adjustment clause revenues
billed</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">138,153</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Intangibles</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">124,141</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Other</font></td><td style="color: red; padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; color: red; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; color: red; text-align: right"><font style="color: Black">1,062,042</font></td><td style="padding-bottom: 1pt; color: red; text-align: left"><font style="color: Black"> </font></td><td style="color: red; padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; color: red; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; color: red; text-align: right"><font style="color: Black">976,445</font></td><td style="padding-bottom: 1pt; color: red; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Total deferred income tax liabilities</font></td><td style="color: red"><font style="color: Black"> </font></td>
<td style="color: red; text-align: left"><font style="color: Black"> </font></td><td style="color: red; text-align: right"><font style="color: Black">12,767,273</font></td><td style="color: red; text-align: left"><font style="color: Black"> </font></td><td style="color: red"><font style="color: Black"> </font></td>
<td style="color: red; text-align: left"><font style="color: Black"> </font></td><td style="color: red; text-align: right"><font style="color: Black">10,420,082</font></td><td style="color: red; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Net deferred income tax (assets) liabilities</font></td><td style="color: red"><font style="color: Black"> </font></td>
<td style="color: red; text-align: left"><font style="color: Black">$</font></td><td style="color: red; text-align: right"><font style="color: Black">5,639,619</font></td><td style="color: red; text-align: left"><font style="color: Black"> </font></td><td style="color: red"><font style="color: Black"> </font></td>
<td style="color: red; text-align: left"><font style="color: Black">$</font></td><td style="color: red; text-align: right"><font style="color: Black">3,515,714</font></td><td style="color: red; text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><font style="font-size: 10pt; color: Black">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, 2016 that begin to expire at the end of the Holding Company’s fiscal 2025 tax year.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">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 the Gas Company and Pike will file separate state income tax returns in
New York and Pennsylvania. The federal returns for the tax years ended September 30, 2013 and prior to September 30, 2012 are
no longer subject to examination. The state returns for the tax years ended prior to September 30, 2013 are no longer subject
to examination.</font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td colspan="2" style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td colspan="2" style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Expected federal tax expense</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,427,272</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">969,582</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Regulatory deferred tax adjustment</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(141,567</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(55,600</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Bargain purchase tax adjustment</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(418,908</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Dividends received deduction</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(11,888</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(11,433</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">State tax expense (net of federal)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">190,076</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">175,331</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Other, net</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">31,481</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(8,249</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">Actual tax expense</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,076,466</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">1,069,631</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b>(12) Pension and
Other Post-retirement Benefit Plans </b></font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"><b> </b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">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
$2,168,913 (plus $51,185 in additional stock)and $2,102,600 (plus $51,185 in additional stock) at September 30, 2016 and 2015,
respectively, and the plan liability, which is labeled as deferred compensation on the balance sheet, was $1,453,782 and $1,492,488
at September 30, 2016 and 2015, respectively. The assets of the trust are available to general creditors in the event of insolvency.
In 2016, the mortality assumption were based on the 2008 VBT Primary Male Smoker tables with generational improvements using scale
MP-2016 for two of the covered participants which resulted in a decrease in the liabilities of approximately $24,784. 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 using scale MP-2015 for the same two covered
participants which resulted in a decrease to the pension obligation of approximately $171,000.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">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.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">In addition to the
Gas Company’s defined benefit pension plans, the Gas Company offers post-retirement benefits comprised of medical and life
coverage to its employees who meet certain age and service criteria. For union participants who retire on or after September 2,
1992, the Gas Company cost for post-retirement benefits is contractually limited and will not exceed $150 per month. This contract
is in effect until April 2, 2018. The monthly benefit for all non-union employees, who retire between the ages of 62 and 65, will
be the lesser of 40% of the retiree’s plan premium or $150. After age 65, the Gas Company pays up to $150 a month for the
cost of the retiree’s supplemental plan. In addition, the Gas Company offers limited life insurance coverage to active employees
and retirees. The post-retirement benefit plan is not funded. The Gas Company accrues the cost of providing post-retirement benefits
during the active service period of the employee.</font></p>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The following table
shows reconciliations of the Gas Company’s pension and post-retirement plan benefits as of September 30:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td colspan="7" style="text-align: center"><font style="color: Black">Pension Benefits</font></td><td><font style="color: Black"> </font></td>
<td colspan="7" style="text-align: center"><font style="color: Black">Post-retirement Benefits</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2016</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td colspan="3" style="text-align: right; border-bottom: Black 1pt solid"><font style="color: Black">2015</font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="17"><font style="color: Black">Change in benefit obligations:</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left; padding-left: 5.4pt"><font style="color: Black">  Benefit obligation at
beginning of year</font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">19,284,602</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">18,633,318</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">1,295,660</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td><td style="width: 3%"><font style="color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="color: Black">$</font></td><td style="width: 10%; text-align: right"><font style="color: Black">1,264,378</font></td><td style="width: 1%; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Service cost (excluding expected
expenses)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">351,565</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">337,039</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">19,325</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">20,979</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Interest cost</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">977,868</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">919,156</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">50,423</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">48,673</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Participant contributions</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">77,754</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">63,740</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Actuarial loss</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,361,479</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">300,931</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">191,240</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">25,891</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Benefits paid</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(947,538</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(905,842</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(147,926</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(128,001</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">Curtailments</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Benefit obligation at end of year</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">22,027,976</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">19,284,602</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,486,476</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,295,660</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Change in plan assets:</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Fair value of plan assets at beginning
of year</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">13,757,839</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">13,675,154</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Actual return on plan assets</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">1,122,982</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">4,126</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Company contributions</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">957,516</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">990,897</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">70,172</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">64,261</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Participant contributions</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">77,754</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">63,740</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">  Benefits paid</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(954,141</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(912,338</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(147,926</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">(128,001</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">  Fair value of
plan assets at end of year</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">14,884,196</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">13,757,839</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Funded status</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(7,143,780</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(5,526,763</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,486,476</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,295,660</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Unrecognized net actuarial loss/(gain)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">5,998,607</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">4,403,014</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">150,130</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(45,221</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Unrecognized prior service cost</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,622</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">9,797</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">146,536</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">150,083</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">(Accrued) prepaid benefit cost</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,142,551</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,113,952</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,189,810</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,190,798</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Accrued contribution</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Amounts recognized in the balance sheet consists
of:</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Prepaid (accrued) benefit liability</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(7,143,780</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(5,526,763</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,486,476</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,295,660</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Amounts recognized in the Balance Sheets consist
of:</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  (Accrued)/prepaid pension cost as
of beginning of fiscal year</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,113,952</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,366,855</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,190,798</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,189,761</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Pension (cost) income</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(1,254,598</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(986,115</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(73,647</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">(70,313</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black">  Contributions</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">957,516</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">990,897</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Change in receivable contribution</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">268,483</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">248,121</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Net benefits paid</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">74,635</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">69,276</font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Change in additional minimum liability</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  (Accrued)/prepaid pension cost as
of end of fiscal year</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">(1,142,551</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">(1,113,952</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">(1,189,810</font></td><td style="text-align: left"><font style="color: Black">)</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">(1,190,798</font></td><td style="text-align: left"><font style="color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">Fair value of plan assets at end of year</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black"> </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Cash and equivalents</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">406,557</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">175,950</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Government and agency issues</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">4,227,227</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,920,406</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Corporate bonds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">2,809,435</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">3,691,645</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Fixed index funds</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">403,756</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">324,804</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="color: Black">  Fixed income</font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">552,373</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">540,732</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="color: Black">  Equity securities</font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">6,484,848</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">6,104,302</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="color: Black">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">14,884,196</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black">$</font></td><td style="text-align: right"><font style="color: Black">13,757,839</font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td><td><font style="color: Black"> </font></td>
<td style="text-align: left"><font style="color: Black"> </font></td><td style="text-align: right"><font style="color: Black">—  </font></td><td style="text-align: left"><font style="color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The funded status of
both plans totaling a deficiency of approximately $8,600,000 and $6,800,000 at September 30, 2016 and 2015, respectively, are
included in deferred pension & post-retirement benefits on the consolidated balance sheets, which are offset by a pension
regulatory asset of approximately $116,000 at September 2016 and a pension regulatory liability of approximately $35,000 at September
30, 2015. In accordance with ASC 715, the net actuarial loss/(gain) and unrecognized prior service cost are collectively adjusted
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 Notes of the Consolidated Financial Statements for additional information.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">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 to $4,517,673. Historically, the change in 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, net of tax) through OCI for the estimated change in these items based on estimates prepared by the actuary
during the year ended September 30, 2014. After removing these items from OCI and establishing the regulated asset in the fourth
quarter of the year ended September 30, 2015, the remaining change of $474,021 was recorded directly as an increase to this asset.
Beginning with the year ended September 30, 2016 the change in pre-tax net actuarial loss/(gain) and unrecognized prior service
was recorded directly to the regulatory asset related to pension.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Amortization of unrecognized
net (gain)/loss for the Retirement Plan for fiscal year ending September 30, 2016:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">1</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Projected
benefit obligation as of September 30, 2016</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> $   22,027,976</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">2</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Plan
assets at September 30, 2016</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">    (14,884,196)</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">3</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Unrecognized
(gain)/loss as of September 30, 2016</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">        5,998,607</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">4</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Ten percent
of greater of (1) or (2)</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">        2,202,798</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">5</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Unamortized
(gain)/loss subject to amortization - (3) minus (4)</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">        3,795,809</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">6</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Active
future service of active plan participants expected to receive benefits</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">                 9.99</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">7</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Minimum
amortization of unamortized net (gain)/loss - (5)/(6)</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> $        379,961</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">8</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Amortization
of (gain)/loss for 2016-2017</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> $     1,027,016</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font-size: 10pt; color: Black"> </font></p></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">Amortization of unrecognized
net (gain)/loss for the Post-Retirement Plan for the fiscal year ended September 30, 2016:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Unrecognized
net (gain)/loss at October 1, 2016 subject to amortization</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> $        150,130</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">  Amount
to be amortized 2016 - 2017</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">       Amortization
period</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black">11
years</font></td></tr>
<tr style="vertical-align: bottom">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">       Amortization
for 2016 - 2017 ((gain)/loss divided by period)</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> $          13,648</font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black">Pension
Benefits</font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black">Post-retirement
Benefits</font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2016</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2015</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2016</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2015</font></td><td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Components of net period benefit
cost (benefit):</font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Service cost</font></td><td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 10%; text-align: right"><font style="font-size: 10pt; color: Black">357,565</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 10%; text-align: right"><font style="font-size: 10pt; color: Black">343,039</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 10%; text-align: right"><font style="font-size: 10pt; color: Black">19,325</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 3%"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 10%; text-align: right"><font style="font-size: 10pt; color: Black">20,979</font></td><td style="width: 1%; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Interest cost</font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">977,868</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">919,156</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">50,423</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">48,673</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Expected return on plan assets</font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">(1,028,758</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">)</font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">(1,027,565</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black">)</font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">—  </font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">—  </font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Amortization of prior service</font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">7,175</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">9,406</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">3,547</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">3,547</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Amortization
of unrecognized actuarial loss (gain)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">672,265</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">493,958</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">(4,111</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 10pt; color: Black">(7,901</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 10pt; color: Black">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Net periodic benefit cost (benefit)</font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">986,115</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">737,994</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">69,184</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td><font style="font-size: 10pt; color: Black"> </font></td>
<td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td><td style="text-align: right"><font style="font-size: 10pt; color: Black">65,298</font></td><td style="text-align: left"><font style="font-size: 10pt; color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">For ratemaking and
financial statement purposes, pension expense represents the amount approved by the NYPSC in the Gas Company’s most recently
approved rate case. Pension expense (benefit) for ratemaking and financial statement purposes was approximately $970,000 for the
years ended September 30, 2016 and 2015. 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 $264,693 and $89,746 as of September 30, 2016 and 2015, respectively.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The NYPSC has allowed
the Gas Company to recover incremental cost associated with post-retirement benefits through rates on a current basis. Due to
the timing differences between the Company’s rate case filings and financial reporting period, a regulatory receivable of
$103,066 and $123,174 has been recognized at September 30, 2016 and 2015, respectively.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" colspan="2" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Pension
Benefits</font></td>
<td nowrap="nowrap" colspan="2" style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 10pt; color: Black">Post-retirement
Benefits</font></td></tr>
<tr>
<td nowrap="nowrap" style="text-align: center; padding-right: 5.4pt; padding-left: 5.4pt; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>2016</u></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>2015</u></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>2016</u></font></td>
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center"><font style="font-size: 10pt; color: Black"><u>2015</u></font></td></tr>
<tr style="vertical-align: top">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Weighted average
assumptions used to determine net</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: top">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">period cost at September
30:</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: top">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Discount rate</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">4.20%</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">5.22%</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">3.25%</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">4.00%</font></td></tr>
<tr style="vertical-align: top">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Salary increases</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">2.00%</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">2.00%</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">N/A</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">N/A</font></td></tr>
<tr style="vertical-align: top">
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt; color: Black">Expected return on
assets</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">7.50%</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">7.50%</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">N/A</font></td>
<td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 10pt; color: Black">N/A</font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">For the periods ended
September 30, 2016 and September 30, 2015, 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 2015, the mortality assumption used is the RP-200 annuitant/non-annuitant
Mortality Table for Males and Females with generational improvements projected using scale BB. In 2016, the mortality assumption
was changed to the sex-distinct RP-2014 Mortality Tables with improvements projected using Scale MP-2016 on a fully generational
basis. This change reduced the benefit obligation by approximately $350,000. The change in discount rate from 5.22% to 4.20% increased
the benefit obligation by approximately $2.5 million.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">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 limitations, 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.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">For measurement purposes,
a 6% annual rate of increase in the per capita cost of covered benefits (health care cost trend rate) was assumed for 2016. The
rate is assumed to increase by 6% each year thereafter. A 1% increase in the actual health care cost trend would result in approximately
a 3.9%</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">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.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">The Gas Company expects
to contribute $1,183,628 to the Retirement Plan during the year ended September 30, 2017.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="7" style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">The
estimated pension plan benefit payments are as follows:</font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 43%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2017</font></td><td style="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 10%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">$</font></td><td style="width: 43%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">1,162,055</font></td><td style="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2018</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">1,183,273</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2019</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">1,248,018</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2020</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">1,358,644</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2021</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">1,410,391</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2022+</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">7,215,801</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 10pt; color: Black">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 hours per year and who have completed one year of service may enroll in the Savings Plan
at the beginning of each calendar quarter. Under the Savings Plan, participants may contribute up to 50% of their wages. For all
employees, the Gas Company will match one-half of the participant’s contribution up to a total of 50% of the participant’s
contribution up to a total of 6% of the participant’s wages. The plan is subject to the federal limitation. The Gas Company
contribution to the plan was $87,595 in 2016 and $87,456 in 2015.</font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 43%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2017</font></td><td style="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="width: 10%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">$</font></td><td style="width: 43%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">1,162,055</font></td><td style="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2018</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">1,183,273</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2019</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">1,248,018</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2020</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">1,358,644</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2021</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">1,410,391</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">2022+</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">$</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black">7,215,801</font></td><td style="font: 12pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom"><font style="font-size: 10pt; color: Black"> </font></td></tr>
</table>
This is a one-time transaction resulting from the acquisition of Pike.