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Financial Instruments (Table)
 6 Months Ended
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Oustanding commodity contracts volumes table
As of March 31, 2016, 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
 
—

 
(35,770
)
 
 
Cash Flow
 
—

 
46,553

 
 
Not designated
 
4,690

 
55,854

 
 
 
 
4,690

 
66,637
Financial instruments on the balance sheet
 
 
 
Regulated Distribution
 
Nonregulated
 
Balance Sheet Location
 
Assets
 
Liabilities
 
Assets
 
Liabilities
 
 
 
 (In thousands)
September 30, 2015
 
 
 
 
 
 
 
 
 
Designated As Hedges:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
$
—

 
$
—

 
$
11,680

 
$
(36,067
)
Commodity contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
—

 
—

 
126

 
(9,918
)
Interest rate contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
—

 
(110,539
)
 
—

 
—

Total
 
 
—

 
(110,539
)
 
11,806

 
(45,985
)
Not Designated As Hedges:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
378

 
(9,568
)
 
65,239

 
(65,780
)
Commodity contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
368

 
—

 
14,318

 
(14,218
)
Total
 
 
746

 
(9,568
)
 
79,557

 
(79,998
)
Gross Financial Instruments
 
 
746

 
(120,107
)
 
91,363

 
(125,983
)
Gross Amounts Offset on Consolidated Balance Sheet:
 
 
 
 
 
 
 
 
 
Contract netting
 
 
—

 
—

 
(91,363
)
 
91,363

Net Financial Instruments
 
 
746

 
(120,107
)
 
—

 
(34,620
)
Cash collateral
 
 
—

 
—

 
8,854

 
34,620

Net Assets/Liabilities from Risk Management Activities
 
 
$
746

 
$
(120,107
)
 
$
8,854

 
$
—


 
The following tables present the fair value and balance sheet classification of our financial instruments by operating segment as of March 31, 2016 and September 30, 2015. 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.
 
 
 
Regulated Distribution
 
Nonregulated
 
Balance Sheet Location
 
Assets
 
Liabilities
 
Assets
 
Liabilities
 
 
 
 (In thousands)
March 31, 2016
 
 
 
 
 
 
 
 
 
Designated As Hedges:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
$
—

 
$
—

 
$
16,032

 
$
(37,251
)
Commodity contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
—

 
—

 
920

 
(6,194
)
Interest rate contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
—

 
(187,717
)
 
—

 
—

Total
 
 
—

 
(187,717
)
 
16,952

 
(43,445
)
Not Designated As Hedges:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
637

 
(784
)
 
39,964

 
(33,248
)
Commodity contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
—

 
—

 
14,767

 
(11,075
)
Total
 
 
637

 
(784
)
 
54,731

 
(44,323
)
Gross Financial Instruments
 
 
637

 
(188,501
)
 
71,683

 
(87,768
)
Gross Amounts Offset on Consolidated Balance Sheet:
 
 
 
 
 
 
 
 
 
Contract netting
 
 
—

 
—

 
(71,683
)
 
71,683

Net Financial Instruments
 
 
637

 
(188,501
)
 
—

 
(16,085
)
Cash collateral
 
 
—

 
2,660

 
6,837

 
16,085

Net Assets/Liabilities from Risk Management Activities
 
 
$
637

 
$
(185,841
)
 
$
6,837

 
$
—
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, 2016 and 2015 is presented below.
 
Three Months Ended 
 March 31
 
2016
 
2015
 
(In thousands)
Commodity contracts
$
4,594

 
$
(7,622
)
Fair value adjustment for natural gas inventory designated as the hedged item
(7,939
)
 
5,142

Total increase in purchased gas cost
$
(3,345
)
 
$
(2,480
)
The increase in purchased gas cost is comprised of the following:
 
 
 
Basis ineffectiveness
$
(2,095
)
 
$
(678
)
Timing ineffectiveness
(1,250
)
 
(1,802
)
 
$
(3,345
)
 
$
(2,480
)
 
 
 
 
 
 
 
 
 
Six Months Ended 
 March 31
 
2016
 
2015
 
(In thousands)
Commodity contracts
$
10,338

 
$
7,469

Fair value adjustment for natural gas inventory designated as the hedged item
(5,778
)
 
(11,641
)
Total (increase) decrease in purchased gas cost
$
4,560

 
$
(4,172
)
The (increase) decrease in purchased gas cost is comprised of the following:
 
 
 
Basis ineffectiveness
$
(806
)
 
$
309

Timing ineffectiveness
5,366

 
(4,481
)
 
$
4,560

 
$
(4,172
)
Cash flow hedges
The impact of cash flow hedges on our condensed consolidated income statements for the three and six months ended March 31, 2016 and 2015 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, 2016
 
Regulated Distribution
 
Nonregulated
 
Consolidated
 
(In thousands)
Loss reclassified from AOCI for effective portion of commodity contracts
$
—

 
$
(12,703
)
 
$
(12,703
)
Gain arising from ineffective portion of commodity contracts
—

 
61

 
61

Total impact on purchased gas cost
—

 
(12,642
)
 
(12,642
)
Net loss on settled interest rate agreements reclassified from AOCI into interest expense
(136
)
 
—

 
(136
)
Total Impact from Cash Flow Hedges
$
(136
)
 
$
(12,642
)
 
$
(12,778
)
 
Three Months Ended March 31, 2015
 
Regulated Distribution
 
Nonregulated
 
Consolidated
 
(In thousands)
Loss reclassified from AOCI for effective portion of commodity contracts
$
—

 
$
(13,078
)
 
$
(13,078
)
Gain arising from ineffective portion of commodity contracts
—

 
163

 
163

Total impact on purchased gas cost
—

 
(12,915
)
 
(12,915
)
Net loss on settled interest rate agreements reclassified from AOCI into interest expense
(136
)
 
—

 
(136
)
Total Impact from Cash Flow Hedges
$
(136
)
 
$
(12,915
)
 
$
(13,051
)
 
Six Months Ended March 31, 2016
 
Regulated Distribution
 
Nonregulated
 
Consolidated
 
(In thousands)
Loss reclassified from AOCI for effective portion of commodity contracts
$
—

 
$
(35,668
)
 
$
(35,668
)
Gain arising from ineffective portion of commodity contracts
—

 
18

 
18

Total impact on purchased gas cost
—

 
(35,650
)
 
(35,650
)
Net loss on settled interest rate agreements reclassified from AOCI into interest expense
(273
)
 
—

 
(273
)
Total Impact from Cash Flow Hedges
$
(273
)
 
$
(35,650
)
 
$
(35,923
)
 
Six Months Ended March 31, 2015
 
Regulated Distribution
 
Nonregulated
 
Consolidated
 
(In thousands)
Loss reclassified from AOCI for effective portion of commodity contracts
$
—

 
$
(12,734
)
 
$
(12,734
)
Loss arising from ineffective portion of commodity contracts
—

 
(327
)
 
(327
)
Total impact on purchased gas cost
—

 
(13,061
)
 
(13,061
)
Net loss on settled interest rate agreements reclassified from AOCI into interest expense
(580
)
 
—

 
(580
)
Total Impact from Cash Flow Hedges
$
(580
)
 
$
(13,061
)
 
$
(13,641
)
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, 2016 and 2015. 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
 
2016
 
2015
 
2016
 
2015
 
(In thousands)
Decrease in fair value:
 
 
 
 
 
 
 
Interest rate agreements
$
(53,704
)
 
$
(32,755
)
 
$
(49,008
)
 
$
(84,824
)
Forward commodity contracts
(7,529
)
 
(10,160
)
 
(19,185
)
 
(38,902
)
Recognition of losses in earnings due to settlements:
 
 
 
 
 
 
 
Interest rate agreements
86

 
86

 
173

 
368

Forward commodity contracts
7,749

 
7,978

 
21,758

 
7,768

Total other comprehensive loss from hedging, net of tax(1)
$
(53,398
)
 
$
(34,851
)
 
$
(46,262
)
 
$
(115,590
)

 
(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 losses recorded in AOCI associated with our financial instruments, based upon the fair values of these financial instruments as of March 31, 2016. 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
$
(347
)
 
$
(19,651
)
 
$
(19,998
)
Thereafter
(18,130
)
 
(3,213
)
 
(21,343
)
Total(1) 
$
(18,477
)
 
$
(22,864
)
 
$
(41,341
)

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