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Financial Instruments (Table)
 6 Months Ended
Mar. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Oustanding commodity contracts volumes table
As of March 31, 2014, we had net long/(short) commodity contracts outstanding in the following quantities:
Contract Type
 
Hedge Designation
 
Natural Gas
Distribution
 
Nonregulated
 
 
 
 
Quantity (MMcf)
Commodity contracts
 
Fair Value
 
—

 
(5,770
)
 
 
Cash Flow
 
—

 
21,795

 
 
Not designated
 
8,428

 
45,975

 
 
 
 
8,428

 
62,000
Financial instruments on the balance sheet
 
 
 
Natural Gas Distribution
 
Nonregulated
 
Balance Sheet Location
 
Assets
 
Liabilities
 
Assets
 
Liabilities
 
 
 
 (In thousands)
September 30, 2013
 
 
 
 
 
 
 
 
 
Designated As Hedges:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
$
—

 
$
—

 
$
9,094

 
$
(12,173
)
Commodity contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
—

 
—

 
416

 
(1,639
)
Interest rate contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
107,512

 
—

 
—

 
—

Total
 
 
107,512

 
—

 
9,510

 
(13,812
)
Not Designated As Hedges:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
1,837

 
(1,543
)
 
65,388

 
(70,876
)
Commodity contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
1,842

 
—

 
40,982

 
(45,892
)
Total
 
 
3,679

 
(1,543
)
 
106,370

 
(116,768
)
Gross Financial Instruments
 
 
111,191

 
(1,543
)
 
115,880

 
(130,580
)
Gross Amounts Offset on Consolidated Balance Sheet:
 
 
 
 
 
 
 
 
 
Contract netting
 
 
—

 
—

 
(115,875
)
 
115,875

Net Financial Instruments
 
 
111,191

 
(1,543
)
 
5

 
(14,705
)
Cash collateral
 
 
—

 
—

 
10,124

 
14,705

Net Assets/Liabilities from Risk Management Activities
 
 
$
111,191

 
$
(1,543
)
 
$
10,129

 
$
—


 
The following tables present the fair value and balance sheet classification of our financial instruments by operating segment as of March 31, 2014 and September 30, 2013. The gross amounts of recognized assets and liabilities are netted within our unaudited Condensed Consolidated Balance Sheets to the extent that we have netting arrangements with the counterparties.
 
 
 
Natural Gas Distribution
 
Nonregulated
 
Balance Sheet Location
 
Assets
 
Liabilities
 
Assets
 
Liabilities
 
 
 
 (In thousands)
March 31, 2014
 
 
 
 
 
 
 
 
 
Designated As Hedges:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
$
—

 
$
—

 
$
11,398

 
$
(6,849
)
Interest rate contracts
Other current assets /
Other current liabilities
 
54,093

 
—

 
—

 
—

Commodity contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
—

 
—

 
557

 
(944
)
Interest rate contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
30,665

 
—

 
—

 
—

Total
 
 
84,758

 
—

 
11,955

 
(7,793
)
Not Designated As Hedges:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
4,653

 
—

 
48,402

 
(56,065
)
Commodity contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
—

 
—

 
34,017

 
(24,720
)
Total
 
 
4,653

 
—

 
82,419

 
(80,785
)
Gross Financial Instruments
 
 
89,411

 
—

 
94,374

 
(88,578
)
Gross Amounts Offset on Consolidated Balance Sheet:
 
 
 
 
 
 
 
 
 
Contract netting
 
 
—

 
—

 
(85,464
)
 
85,464

Net Financial Instruments
 
 
89,411

 
—

 
8,910

 
(3,114
)
Cash collateral
 
 
—

 
—

 
7,940

 
3,114

Net Assets/Liabilities from Risk Management Activities
 
 
$
89,411

 
$
—

 
$
16,850

 
$
—
Fair value hedges table
The impact of our nonregulated commodity contracts designated as fair value hedges and the related hedged item on our condensed consolidated income statement for the three and six months ended March 31, 2014 and 2013 is presented below.
 
Three Months Ended 
 March 31
 
2014
 
2013
 
(In thousands)
Commodity contracts
$
3,587

 
$
(17,846
)
Fair value adjustment for natural gas inventory designated as the hedged item
(7,450
)
 
19,586

Total (increase) decrease in purchased gas cost
$
(3,863
)
 
$
1,740

The (increase) decrease in purchased gas cost is comprised of the following:
 
 
 
Basis ineffectiveness
$
(579
)
 
$
1,458

Timing ineffectiveness
(3,284
)
 
282

 
$
(3,863
)
 
$
1,740

 
 
 
 
 
Six Months Ended 
 March 31
 
2014
 
2013
 
(In thousands)
Commodity contracts
$
(4,974
)
 
$
(10,532
)
Fair value adjustment for natural gas inventory designated as the hedged item
6,329

 
28,405

Total decrease in purchased gas cost
$
1,355

 
$
17,873

The (increase) decrease in purchased gas cost is comprised of the following:
 
 
 
Basis ineffectiveness
$
(1,199
)
 
$
1,218

Timing ineffectiveness
2,554

 
16,655

 
$
1,355

 
$
17,873
Cash flow hedges
The impact of cash flow hedges on our condensed consolidated income statements for the three and six months ended March 31, 2014 and 2013 is presented below. Note that this presentation does not reflect the financial impact arising from the hedged physical transaction. Therefore, this presentation is not indicative of the economic gross profit we realized when the underlying physical and financial transactions were settled.
 
Three Months Ended March 31, 2014
 
Natural
Gas
Distribution
 
Nonregulated
 
Consolidated
 
(In thousands)
Gain reclassified from AOCI for effective portion of commodity contracts
$
—

 
$
7,184

 
$
7,184

Gain arising from ineffective portion of commodity contracts
—

 
142

 
142

Total impact on purchased gas cost
—

 
7,326

 
7,326

Net loss on settled interest rate agreements reclassified from AOCI into interest expense
(1,057
)
 
—

 
(1,057
)
Total Impact from Cash Flow Hedges
$
(1,057
)
 
$
7,326

 
$
6,269

 
Three Months Ended March 31, 2013
 
Natural
Gas
Distribution
 
Nonregulated
 
Consolidated
 
(In thousands)
Loss reclassified from AOCI for effective portion of commodity contracts
$
—

 
$
(5,199
)
 
$
(5,199
)
Loss arising from ineffective portion of commodity contracts
—

 
(83
)
 
(83
)
Total impact on purchased gas cost
—

 
(5,282
)
 
(5,282
)
Net loss on settled interest rate agreements reclassified from AOCI into interest expense
(873
)
 
—

 
(873
)
Total Impact from Cash Flow Hedges
$
(873
)
 
$
(5,282
)
 
$
(6,155
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended March 31, 2014
 
Natural
Gas
Distribution
 
Nonregulated
 
Consolidated
 
(In thousands)
Gain reclassified from AOCI for effective portion of commodity contracts
$
—

 
$
4,574

 
$
4,574

Gain arising from ineffective portion of commodity contracts
—

 
24

 
24

Total impact on purchased gas cost
—

 
4,598

 
4,598

Loss on settled interest rate agreements reclassified from AOCI into interest expense
(2,115
)
 
—

 
(2,115
)
Total Impact from Cash Flow Hedges
$
(2,115
)
 
$
4,598

 
$
2,483

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended March 31, 2013
 
Natural Gas
Distribution
 
Nonregulated
 
Consolidated
 
(In thousands)
Loss reclassified from AOCI for effective portion of commodity contracts
$
—

 
$
(10,359
)
 
$
(10,359
)
Loss arising from ineffective portion of commodity contracts
—

 
(102
)
 
(102
)
Total impact on purchased gas cost
—

 
(10,461
)
 
(10,461
)
Loss on settled interest rate agreements reclassified from AOCI into interest expense
(1,375
)
 
—

 
(1,375
)
Total Impact from Cash Flow Hedges
$
(1,375
)
 
$
(10,461
)
 
$
(11,836
)
Other comprehensive income from hedging table
The following table summarizes the gains and losses arising from hedging transactions that were recognized as a component of other comprehensive income (loss), net of taxes, for the three and six months ended March 31, 2014 and 2013. The amounts included in the table below exclude gains and losses arising from ineffectiveness because those amounts are immediately recognized in the income statement as incurred.
 
Three Months Ended 
 March 31
 
Six Months Ended 
 March 31
 
2014
 
2013
 
2014
 
2013
 
(In thousands)
Increase (decrease) in fair value:
 
 
 
 
 
 
 
Interest rate agreements
$
(27,718
)
 
$
22,955

 
$
(14,448
)
 
$
34,900

Forward commodity contracts
5,483

 
5,666

 
11,709

 
2,153

Recognition of (gains) losses in earnings due to settlements:
 
 
 
 
 
 
 
Interest rate agreements
671

 
554

 
1,343

 
873

Forward commodity contracts
(4,382
)
 
3,172

 
(2,790
)
 
6,320

Total other comprehensive income (loss) from hedging, net of tax(1)
$
(25,946
)
 
$
32,347

 
$
(4,186
)
 
$
44,246


 
(1) 
Utilizing an income tax rate ranging from 37 percent to 39 percent based on the effective rates in each taxing jurisdiction.
Expected recognition in earnings of deferred gains/(losses) in AOCI table
The following amounts, net of deferred taxes, represent the expected recognition in earnings of the deferred gains (losses) recorded in AOCI associated with our financial instruments, based upon the fair values of these financial instruments as of March 31, 2014. However, the table below does not include the expected recognition in earnings of our outstanding interest rate agreements as those instruments have not yet settled.
 
Interest Rate
Agreements
 
Commodity
Contracts
 
Total
 
(In thousands)
Next twelve months
$
(1,830
)
 
$
4,682

 
$
2,852

Thereafter
(27,191
)
 
(239
)
 
(27,430
)
Total(1) 
$
(29,021
)
 
$
4,443

 
$
(24,578
)

 
(1) 
Utilizing an income tax rate ranging from 37 percent to 39 percent based on the effective rates in each taxing jurisdiction.