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Financial Instruments (Table)
 12 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of financial instrument assets and liabilities at fair value
The following table shows the fair values of our risk management assets and liabilities by segment at September 30, 2014 and 2013:
 
Regulated
Distribution
 
Nonregulated
 
Total
 
(In thousands)
September 30, 2014
 
 
 
 
 
Assets from risk management activities, current(1)
$
23,102

 
$
22,725

 
$
45,827

Assets from risk management activities, noncurrent
13,038

 
—

 
13,038

Liabilities from risk management activities, current(1)
(1,730
)
 
—

 
(1,730
)
Liabilities from risk management activities, noncurrent(1)
(20,126
)
 
—

 
(20,126
)
Net assets
$
14,284

 
$
22,725

 
$
37,009

September 30, 2013
 
 
 
 
 
Assets from risk management activities, current(2)
$
1,837

 
$
10,129

 
$
11,966

Assets from risk management activities, noncurrent
109,354

 
—

 
109,354

Liabilities from risk management activities, current(2)
(1,543
)
 
—

 
(1,543
)
Liabilities from risk management activities, noncurrent(2)
—

 
—

 
—

Net assets
$
109,648

 
$
10,129

 
$
119,777


 
(1) 
Includes $25.8 million of cash held on deposit to collateralize certain financial instruments. Of this amount, $3.1 million was used to offset current and noncurent risk management liabilities under master netting arrangements and the remaining $22.7 million is classified as current risk management assets.
(2) 
Includes $24.8 million of cash held on deposit to collateralize certain financial instruments. Of this amount, $14.7 million was used to offset current and noncurrent risk management liabilities under master netting arrangements and the remaining $10.1 million is classified as current risk management assets.
Outstanding commodity contracts volumes table
As of September 30, 2014, we had net long/(short) commodity contracts outstanding in the following quantities:
Contract Type
 
Hedge
Designation
 
Regulated
Distribution
 
Nonregulated
 
 
 
 
Quantity (MMcf)
Commodity contracts
 
Fair Value
 
—

 
(10,298
)
 
 
Cash Flow
 
—

 
49,290

 
 
Not designated
 
31,812

 
96,711

 
 
 
 
31,812

 
135,703
Financial instruments on the balance sheet
The following tables present the fair value and balance sheet classification of our financial instruments by operating segment as of September 30, 2014 and 2013. The gross amounts of recognized assets and liabilities are netted within our Consolidated Balance Sheets to the extent that we have netting arrangements with the counterparties.

 
 
 
Regulated Distribution
 
Nonregulated
 
Balance Sheet Location
 
Assets
 
Liabilities
 
Assets
 
Liabilities
 
 
 
 (In thousands)
September 30, 2014
 
 
 
 
 
 
 
 
 
Designated As Hedges:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
$
—

 
$
—

 
$
8,912

 
$
(7,082
)
Interest rate contracts
Other current assets /
Other current liabilities
 
21,869

 
—

 
—

 
—

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

 
—

 
757

 
(2,459
)
Interest rate contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
12,608

 
(19,835
)
 
—

 
—

Total
 
 
34,477

 
(19,835
)
 
9,669

 
(9,541
)
Not Designated As Hedges:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
1,233

 
(1,730
)
 
43,677

 
(47,729
)
Commodity contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
430

 
(291
)
 
15,677

 
(14,786
)
Total
 
 
1,663

 
(2,021
)
 
59,354

 
(62,515
)
Gross Financial Instruments
 
 
36,140

 
(21,856
)
 
69,023

 
(72,056
)
Gross Amounts Offset on Consolidated Balance Sheet:
 
 
 
 
 
 
 
 
 
Contract netting
 
 
—

 
—

 
(69,023
)
 
69,023

Net Financial Instruments
 
 
36,140

 
(21,856
)
 
—

 
(3,033
)
Cash collateral
 
 
—

 
—

 
22,725

 
3,033

Net Assets/Liabilities from Risk Management Activities
 
 
$
36,140

 
$
(21,856
)
 
$
22,725

 
$
—

 
 
 
Regulated 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

 
$
—
Fair value hedges table
The impact of our nonregulated commodity contracts designated as fair value hedges and the related hedged item on our consolidated income statement for the years ended September 30, 2014, 2013 and 2012 is presented below.
 
Fiscal Year Ended September 30
 
2014
 
2013
 
2012
 
(In thousands)
Commodity contracts
$
(792
)
 
$
2,165

 
$
30,266

Fair value adjustment for natural gas inventory designated as the hedged item
2,486

 
15,938

 
(5,797
)
Total decrease in purchased gas cost
$
1,694

 
$
18,103

 
$
24,469

The decrease in purchased gas cost is comprised of the following:
 
 
 
 
 
Basis ineffectiveness
$
(919
)
 
$
(208
)
 
$
1,170

Timing ineffectiveness
2,613

 
18,311

 
23,299

 
$
1,694

 
$
18,103

 
$
24,469
Cash flow hedges table
The impact of cash flow hedges on our consolidated income statements for the years ended September 30, 2014, 2013 and 2012 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.
 
Fiscal Year Ended September 30, 2014
 
Regulated
Distribution
 
Nonregulated
 
Consolidated
 
(In thousands)
Gain reclassified from AOCI for effective portion of commodity contracts
$
—

 
$
8,365

 
$
8,365

Gain arising from ineffective portion of commodity contracts
—

 
198

 
198

Total impact on purchased gas cost
—

 
8,563

 
8,563

Net loss on settled interest rate agreements reclassified from AOCI into interest expense
(4,230
)
 
—

 
(4,230
)
Total impact from cash flow hedges
$
(4,230
)
 
$
8,563

 
$
4,333


 
Fiscal Year Ended September 30, 2013
 
Regulated
Distribution
 
Nonregulated
 
Consolidated
 
(In thousands)
Loss reclassified from AOCI for effective portion of commodity contracts
$
—

 
$
(10,778
)
 
$
(10,778
)
Gain arising from ineffective portion of commodity contracts
—

 
97

 
97

Total impact on purchased gas cost
—

 
(10,681
)
 
(10,681
)
Net loss on settled interest rate agreements reclassified from AOCI into interest expense
(3,489
)
 
—

 
(3,489
)
Total impact from cash flow hedges
$
(3,489
)
 
$
(10,681
)
 
$
(14,170
)
 
 
Fiscal Year Ended September 30, 2012
 
Regulated
Distribution
 
Nonregulated
 
Consolidated
 
(In thousands)
Loss reclassified from AOCI for effective portion of commodity contracts
$
—

 
$
(62,678
)
 
$
(62,678
)
Loss arising from ineffective portion of commodity contracts
—

 
(1,369
)
 
(1,369
)
Total impact on purchased gas cost
—

 
(64,047
)
 
(64,047
)
Net loss on settled interest rate agreements reclassified from AOCI into interest expense
(2,009
)
 
—

 
(2,009
)
Total impact from cash flow hedges
$
(2,009
)
 
$
(64,047
)
 
$
(66,056
)
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 years ended September 30, 2014 and 2013. The amounts included in the table below exclude gains and losses arising from ineffectiveness because these amounts are immediately recognized in the income statement as incurred.
 
Fiscal Year Ended
September 30
 
2014
 
2013
 
(In thousands)
Increase (decrease) in fair value:
 
 
 
Interest rate agreements
$
(58,973
)
 
$
79,963

Forward commodity contracts
7,904

 
(2,057
)
Recognition of (gains) losses in earnings due to settlements:
 
 
 
Interest rate agreements
2,686

 
2,216

Forward commodity contracts
(5,102
)
 
6,576

Total other comprehensive income (loss) from hedging, net of tax(1)
$
(53,485
)
 
$
86,698


 
(1) 
Utilizing an income tax rate ranging from approximately 37 percent to 39 percent based on the effective rates in each taxing jurisdiction.
Expected recognition in earnings of deferred 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 September 30, 2014. However, the table below does not include the expected recognition in earnings of the interest rate agreements entered into in October 2012 and fiscal 2014 as those financial instruments have not yet settled.
 
Interest Rate
Agreements
 
Commodity
Contracts
 
Total
 
(In thousands)
2015
$
(804
)
 
$
(632
)
 
$
(1,436
)
2016
(634
)
 
(907
)
 
(1,541
)
2017
(735
)
 
(107
)
 
(842
)
2018
(936
)
 
(38
)
 
(974
)
2019
(961
)
 
10

 
(951
)
Thereafter
(23,609
)
 
—

 
(23,609
)
Total(1) 
$
(27,679
)
 
$
(1,674
)
 
$
(29,353
)

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