SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Schedule of Demand Charges

The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30:

(Millions)	2019		2018		2017
Energy Services	$	120.4	$	153.0	$	126.4
Natural Gas Distribution	119.1		92.5		80.2
Total	$	239.5	$	245.5	$	206.6

Schedule of Property, Plant and Equipment

Property, plant and equipment was comprised of the following as of September 30:

(Thousands)
Property Classifications	Estimated Useful Lives	2019			2018
Distribution facilities	38 to 74 years	$	2,414,603		$	2,151,249
Transmission facilities	35 to 56 years	330,912			295,692
Storage facilities	34 to 47 years	79,916			79,470
Solar property	15 to 25 years	879,597			720,562
Midstream property	30 years	28,445			6,747
All other property	5 to 35 years	48,886			50,771
Total property, plant and equipment		3,782,359			3,304,491
Accumulated depreciation and amortization		(741,193		)	(653,442		)
Property, plant and equipment, net		$	3,041,166		$	2,651,049

Schedule of Capitalized Amounts Associated with Debt and Equity Component of AFUDC

Capitalized and deferred interest include the following for the fiscal years ended September 30:

($ in thousands)	2019			2018			2017
AFUDC:
Debt	$	3,710		$	1,979		$	1,311
Equity	6,492			5,531			3,867
Total	$	10,202		$	7,510		$	5,178
Weighted average interest rate	6.35		%	5.94		%	6.90		%

Summary of Gas in Storage

The following table summarizes gas in storage, at average cost by company, as of September 30:

	2019				2018
($ in thousands)	Gas in Storage			Bcf	Gas in Storage			Bcf
Energy Services		$	52,390	25.6		$	90,166	34.1
Natural Gas Distribution		117,413		27.0		94,467		24.9
Total		$	169,803	52.6		$	184,633	59.0

Schedule of Disposal Groups, Including Discontinued Operations

The major classes of assets and liabilities included within the disposal group as held for sale are as follows:

(Thousands)	September 30, 2018			Assets reclassified as held for sale		Assets Sold			Other adjustments (1)			September 30, 2019
Assets held for sale:
Property, plant and equipment - wind equipment, at cost	$	224,356		$	—	$	(224,356	)	$	—		$	—
Property, plant and equipment - accumulated depreciation, wind equipment	(18,501		)	—		18,501			$	—		—
Prepaid and accrued taxes	789			1,747		(1,541		)	$	(995	)	—
Other noncurrent assets	261			—		(261		)	$	—		—
	$	206,905		$	1,747	$	(207,657	)	$	(995	)	$	—
Liabilities held for sale:
Accounts payable and other (1)	$	186		$	—	$	(186	)	$	—		$	—
Asset retirement obligation	3,996			—		(3,996		)	—			—
	$	4,182		$	—	$	(4,182	)	$	—		$	—

(1)

Activity relates to amortization of prepaid and other current assets prior to the sale of the Company’s remaining wind assets in February 2019.

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated future amortization expense for the next five years as of September 30, is as follows:

(Thousands)
2020	$	5,011
2021	$	4,691
2022	$	2,561
2023	$	2,271
2024 and thereafter	$	77

Changes in Components of Accumulated Other Comprehensive Income, Net

The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects, as of September 30:

(Thousands)	Investments in Equity Securities			Adjustment to postemployment benefit obligation				Total
Balance at September 30, 2017	$	11,044		$	(14,300	)		$	(3,256	)
Other comprehensive income, net of tax
Other comprehensive (loss) income, before reclassifications, net of tax of $6,973, $(125), $6,848	(19,245		)	464				(18,781		)
Amounts reclassified from accumulated other comprehensive income, net of tax of $(858), $(448), $(1,306)	11,647			1,056			(1)	12,703
Net current-period other comprehensive (loss) income, net of tax of $6,115, $(573), $5,542	(7,598		)	1,520				(6,078		)
Reclassifications of certain income tax effects to retained earnings (2)	—			(3,276		)		(3,276		)
Balance at September 30, 2018	$	3,446		$	(16,056	)		$	(12,610	)
Other comprehensive income, net of tax
Other comprehensive (loss) income, before reclassifications, net of tax of $0, $6,557, $6,557	—			(16,978		)		(16,978		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $0, $(451), $(451)	—			1,247			(1)	1,247
Net current-period other comprehensive income, net of tax of $0, $6,106, $6,106	—			(15,731		)		(15,731		)
Reclassifications of certain income tax effects to retained earnings (3)	(3,446		)	—				(3,446		)
Balance at September 30, 2019	$	—		$	(31,787	)		$	(31,787	)

(1) Included in the computation of net periodic pension cost, a component of O&M expense on the Consolidated Statements of Operations. For more details, see Note 11. Employee Benefit Plans.

(2) Due to the adoption of ASU No. 2018-02, an amendment to ASC 740, Income Taxes. See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details.

(3)

Due to the adoption of ASU No. 2016-01, an amendment to ASC 825, Financial Instruments. See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details.

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Accordingly, the following table provides a reconciliation of cash and cash equivalents and restricted cash reported on the Consolidated Balance Sheets to the total amounts in the Consolidated Statements of Cash Flows as follows:

(Thousands)	September 30, 2019		September 30, 2018		September 30, 2017		September 30, 2016
Balance Sheet
Cash and cash equivalents	$	2,676	$	1,458	$	2,226	$	37,546
Restricted cash in other noncurrent assets	1,387		252		243		1,565
Statements of Cash Flow
Cash, cash equivalents and restricted cash in the statement of cash flows	$	4,063	$	1,710	$	2,469	$	39,111

Accordingly, the following amounts on the Consolidated Statement of Operations for fiscal 2018 and 2017 have been adjusted:

(Thousands)	As Previously Reported		Effect of Change			As Adjusted
Fiscal 2018
Statements of Operations
Operation and maintenance	$	266,919	$	(3,806	)	$	263,113
Total operating expenses	$	2,719,033	$	(3,806	)	$	2,715,227
Operating income	$	196,076	$	3,806		$	199,882
Other income (expense), net	$	16,853	$	(3,806	)	$	13,047
Fiscal 2017
Statements of Operations
Operation and maintenance	$	226,356	$	(4,180	)	$	222,176
Total operating expenses	$	2,101,573	$	(4,180	)	$	2,097,393
Operating income	$	167,044	$	4,180		$	171,224
Other income (expense), net	$	14,437	$	(4,180	)	$	10,257