As explained in Note 1, Summary of Significant Accounting Policies, the Utilities account for regulated operations in accordance with FASB ASC Topic 980, Regulated Operations. The following regulatory assets and regulatory liabilities were reflected in the balance sheets of the Company, Spire Missouri and Spire Alabama as of December 31, 2024, September 30, 2024, and December 31, 2023.


	December 31,		September 30,		December 31,
Spire	2024		2024		2023
Regulatory Assets:
Current:
Unamortized purchased gas adjustments	$	12.2	$	28.9	$	207.0
Other		77.4		86.5		49.4
Total Current Regulatory Assets		89.6		115.4		256.4
Noncurrent:
Pension and postretirement benefit costs		248.4		237.5		255.3
Cost of removal		676.1		668.2		640.8
Future income taxes due from customers		152.4		150.7		145.6
Energy efficiency		61.3		61.0		57.5
Unamortized purchased gas adjustments		—		1.2		20.3
Other		150.2		133.2		147.4
Total Noncurrent Regulatory Assets		1,288.4		1,251.8		1,266.9
Total Regulatory Assets	$	1,378.0	$	1,367.2	$	1,523.3
Regulatory Liabilities:
Current:
Unamortized purchased gas adjustments	$	39.2	$	42.3	$	—
Other		11.8		7.2		7.1
Total Current Regulatory Liabilities		51.0		49.5		7.1
Noncurrent:
Deferred taxes due to customers		110.7		114.2		124.5
Pension and postretirement benefit costs		253.2		232.9		188.2
Accrued cost of removal		136.7		133.6		130.3
Unamortized purchased gas adjustments		40.4		17.2		23.7
Other		36.2		37.6		20.5
Total Noncurrent Regulatory Liabilities		577.2		535.5		487.2
Total Regulatory Liabilities	$	628.2	$	585.0	$	494.3


	December 31,		September 30,		December 31,
Spire Missouri	2024		2024		2023
Regulatory Assets:
Current:
Unamortized purchased gas adjustments	$	11.8	$	28.1	$	194.1
Other		44.9		55.9		18.8
Total Current Regulatory Assets		56.7		84.0		212.9
Noncurrent:
Future income taxes due from customers		144.5		142.7		137.3
Pension and postretirement benefit costs		179.7		166.5		185.5
Energy efficiency		61.3		61.0		57.5
Unamortized purchased gas adjustments		—		1.2		20.3
Cost of removal		97.0		97.0		97.0
Other		137.2		119.6		133.2
Total Noncurrent Regulatory Assets		619.7		588.0		630.8
Total Regulatory Assets	$	676.4	$	672.0	$	843.7
Regulatory Liabilities:
Current:
Unamortized purchased gas adjustments	$	17.4	$	10.2	$	—
Total Current Regulatory Liabilities		17.4		10.2		—
Noncurrent:
Deferred taxes due to customers		98.6		101.8		111.6
Pension and postretirement benefit costs		218.0		196.6		160.2
Accrued cost of removal		96.8		94.5		93.4
Unamortized purchased gas adjustments		40.4		17.2		23.7
Other		32.2		33.2		15.6
Total Noncurrent Regulatory Liabilities		486.0		443.3		404.5
Total Regulatory Liabilities	$	503.4	$	453.5	$	404.5


Spire Alabama
Regulatory Assets:
Current:
Unamortized purchased gas adjustments	$	—	$	—	$	12.2
Other		17.4		19.2		18.8
Total Current Regulatory Assets		17.4		19.2		31.0
Noncurrent:
Future income taxes due from customers		1.7		1.8		1.9
Pension and postretirement benefit costs		66.1		68.2		66.0
Cost of removal		579.1		571.2		543.7
Other		0.4		0.8		1.0
Total Noncurrent Regulatory Assets		647.3		642.0		612.6
Total Regulatory Assets	$	664.7	$	661.2	$	643.6
Regulatory Liabilities:
Current:
Unamortized purchased gas adjustments	$	20.7	$	30.9	$	—
Other		7.0		2.9		—
Total Current Regulatory Liabilities		27.7		33.8		—
Noncurrent:
Pension and postretirement benefit costs		24.2		25.1		17.3
Other		2.7		3.2		3.4
Total Noncurrent Regulatory Liabilities		26.9		28.3		20.7
Total Regulatory Liabilities	$	54.6	$	62.1	$	20.7

A portion of the Company’s and Spire Missouri’s regulatory assets are not earning a return, as shown in the table below:


	December 31,		September 30,		December 31,
	2024		2024		2023
Spire
Pension and postretirement benefit costs	$	129.8	$	129.7	$	134.0
Future income taxes due from customers		150.7		148.9		143.6
Unamortized purchased gas adjustments		11.8		29.3		214.4
Other		143.1		132.5		117.0
Total Regulatory Assets Not Earning a Return	$	435.4	$	440.4	$	609.0

Spire Missouri
Pension and postretirement benefit costs	$	129.8	$	129.7	$	134.0
Future income taxes due from customers		144.5		142.7		137.3
Unamortized purchased gas adjustments		11.8		29.3		214.4
Other		143.1		132.5		117.0
Total Regulatory Assets Not Earning a Return	$	429.2	$	434.2	$	602.7

Like all the Company’s regulatory assets, these regulatory assets as of December 31, 2024 are probable of recovery from customers in future rates. The recovery period for the future income taxes due from customers and pension and other postretirement benefit costs could be 20 years or longer, based on current Internal Revenue Service guidelines and average remaining service life of active participants, respectively. The recovery period for the PGA assets is about one year. The other items not earning a return are expected to be recovered over a period not to exceed 15 years, consistent with precedent set by the MoPSC, except for certain debt costs expected to be recovered over the related debt term (currently up to 2051). Spire Alabama does not have any regulatory assets that are not earning a return.

On November 12, 2024, the MoPSC approved a PGA decrease of approximately 30% for both the eastern and western service territories of Spire Missouri effective November 15, 2024.

On November 25, 2024, Spire Missouri filed a general rate case with the MoPSC that includes new proposed rates for its service areas. The case proposes an increase in base rates, reflecting recovery of system investments and operating costs necessary to maintain the safety and reliability of its natural gas distribution systems, as well as to support enhancements to customer service. Spire’s request, if approved, represents a base rate increase of $289.5. Spire is already recovering $53.6 from customers through the Infrastructure System Replacement Surcharge (ISRS) for its eligible capital projects through August 2024, resulting in a net base rate increase request of $235.9. The proposed rates are calculated on a filed rate base of $4,386.0. The rate base has increased by 32 percent since Spire’s last general rate filing test year ended September 30, 2022, reflecting the significant investment made in infrastructure upgrades and other systems. Among other things, the filing proposes changes in recovery mechanisms to address the impacts of both weather and conservation, updates Spire Missouri’s cost of capital, and further aligns the tariffs of its service areas. The filing assumes a common equity ratio of 55.0% and a 10.5% return on equity. Certain measures, such as rate base, capital structure and operating costs may be updated over the course of the rate proceeding. In accordance with Missouri law, the MoPSC has 11 months to consider this filing. According to the procedural schedule established on January 9, 2025, the evidentiary hearing will be held August 4–13, 2025.

The ISRS allows Spire Missouri expedited recovery for its investment to replace qualifying components of its infrastructure without the necessity of a formal rate case. On January 17, 2025, Spire Missouri initiated an ISRS case for approximately $19.0 reflecting eligible capital projects from September 2024 through February 2025 (including estimates for January and February). The MoPSC has up to six months to consider the case.

The Rate Stabilization and Equalization (RSE) mechanism requires Spire Alabama to file an annual rate review based on the utility’s budget for the upcoming fiscal year. Filings are reviewed by the APSC and Office of the Attorney General and approved by the APSC. Revenue requirements are calculated to include Spire Alabama’s anticipated cost of service in addition to an updated return on common equity (RCE) within the allowed range. Rates are set by allocating the revenue requirements among the volumes budgeted for each of Spire Alabama’s customer classes. In addition, the utility is subject to points of test to periodically measure whether fiscal year earnings are projected to be above the allowed RCE range. If so, a revenue adjustment is recorded and the excess is returned to customers as stipulated by the APSC as a rate reduction commonly referred to as an “RSE giveback.”

In October 2023, Spire Alabama made its annual RSE rate filing presenting the utility’s budget for the fiscal year ended September 30, 2024, and new rates designed to provide an annualized revenue increase of $14.3 became effective January 1, 2024. At the September 30, 2024 point of test, the RCE was above the allowed range, resulting in an annualized refund of $4.0 accrued at year end and reflected in a rate reduction effective December 1, 2024. On October 24, 2024, Spire Alabama made its annual RSE rate filing, presenting the utility’s preliminary budget for the fiscal year ending September 30, 2025. The final budget was filed and approved on November 26, 2024. No adjustment to the rates that were effective December 1, 2024 was required. Based on results through December 31, 2024, Spire Alabama’s RCE for the year is projected to be above the allowed range as of the March point of test, and a provision of $4.1 reducing revenue was recorded in the first quarter in anticipation of an RSE giveback.

Spire Alabama’s rate schedules for natural gas distribution charges contain a GSA rider which permits the pass-through to customers of changes in the cost of gas supply. In fiscal 2024 and 2025, GSA rate decreases were effective October 1, 2023, January 1, 2024, April 1, 2024, and October 1, 2024, primarily attributable to changes in natural gas commodity prices.

In addition to those discussed above for Spire Missouri and Spire Alabama, Spire is affected by the following regulatory matters.

Spire Gulf operates under an interpretation of the RSE mechanism similar to that of Spire Alabama. In the fiscal year ended September 30, 2023, Spire Gulf's September RSE point of test reflected that its actual RCE exceeded the allowed RCE, resulting in an annualized refund of $2.0 that reduced rates effective December 1, 2023. In October 2023, Spire Gulf made its annual RSE filing, presenting the utility’s budget for the fiscal year ended September 30, 2024, and new rates designed to provide an annualized revenue increase of $2.7 became effective December 13, 2023. On October 25, 2024, Spire Gulf made its annual RSE rate filing, presenting the utility’s preliminary budget for the fiscal year ending September 30, 2025. The final budget was filed and approved on December 2, 2024, reflecting an approved increase in annual revenues of $1.3, with new rates effective December 4, 2024.

The Mississippi Public Service Commission (MSPSC) approved stipulation agreements between the Mississippi Public Utility Staff (MPUS) and Spire Mississippi that provided for increased annual revenues of $1.0 and $0.6 through rates effective on January 1, 2024 and 2025, respectively.