Financial Instruments (Table)

12 Months Ended

Sep. 30, 2011

Financial Instruments Note Tables Abstract

Schedule of financial instrument assets and liabilities at fair value

	Natural Gas Distribution		Nonregulated		Total
		(In thousands)
September 30, 2011(3)
Assets from risk management activities, current (1)	$	843	$	17,501	$	18,344
Assets from risk management activities, noncurrent		998		-		998
Liabilities from risk management activities, current (1)		(11,916)		(3,537)		(15,453)
Liabilities from risk management activities, noncurrent		(67,862)		(10,227)		(78,089)
Net assets (liabilities)	$	(77,937)	$	3,737	$	(74,200)
September 30, 2010
Assets from risk management activities, current (2)	$	2,219	$	18,356	$	20,575
Assets from risk management activities, noncurrent		47		890		937
Liabilities from risk management activities, current (2)		(48,942)		(731)		(49,673)
Liabilities from risk management activities, noncurrent		(2,924)		(6,000)		(8,924)
Net assets (liabilities)	$	(49,600)	$	12,515	$	(37,085)

Oustanding commodity contracts volumes table

Contract Type	Hedge Designation	Natural Gas Distribution	Nonregulated
		Quantity (MMcf)
Commodity contracts	Fair Value	-	(13,950)
	Cash Flow	-	38,713
	Not designated	26,977	31,648
		26,977	56,411

Financial instruments on the balance sheet

						Natural
						Gas
				Balance Sheet Location		Distribution		Nonregulated		Total
September 30, 2011						(In thousands)
Designated As Hedges:
	Asset Financial Instruments
		Current commodity contracts		Other current assets		$	-	$	22,396	$	22,396
		Noncurrent commodity		Deferred charges and
			contracts		other assets		-		174		174
	Liability Financial Instruments
		Current commodity contracts		Other current liabilities			-		(31,064)		(31,064)
		Noncurrent commodity		Deferred credits and
			contracts		other liabilities		(67,527)		(7,709)		(75,236)
	Total						(67,527)		(16,203)		(83,730)
Not Designated As Hedges:
	Asset Financial Instruments
		Current commodity contracts		Other current assets			843		67,710		68,553
		Noncurrent commodity		Deferred charges and
			contracts		other assets		998		22,379		23,377
	Liability Financial Instruments
		Current commodity contracts		Other current liabilities(1)			(13,256)		(73,865)		(87,121)
		Noncurrent commodity		Deferred credits and
			contracts		other liabilities		(335)		(25,071)		(25,406)
	Total						(11,750)		(8,847)		(20,597)
Total Financial Instruments						$	(79,277)	$	(25,050)	$	(104,327)
(1) Other current liabilities not designated as hedges in our natural gas distribution segment include $1.3 million related to risk management liabilities that were classified as assets held for sale at September 30, 2011.

							Natural
							Gas
				Balance Sheet Location			Distribution		Nonregulated		Total
September 30, 2010						(In thousands)
Designated As Hedges:
	Asset Financial Instruments
		Current commodity contracts		Other current assets			$	-	$	40,030	$	40,030
		Noncurrent commodity		Deferred charges and
			contracts		other assets			-		2,461		2,461
	Liability Financial Instruments
		Current commodity contracts		Other current liabilities				-		(56,575)		(56,575)
		Noncurrent commodity		Deferred credits and
			contracts		other liabilities			-		(9,222)		(9,222)
	Total							-		(23,306)		(23,306)
Not Designated As Hedges:
	Asset Financial Instruments
		Current commodity contracts		Other current assets				2,219		16,459		18,678
		Noncurrent commodity		Deferred charges and
			contracts		other assets			47		2,056		2,103
	Liability Financial Instruments
		Current commodity contracts		Other current liabilities				(48,942)		(7,178)		(56,120)
		Noncurrent commodity		Deferred credits and
			contracts		other liabilities			(2,924)		(405)		(3,329)
	Total							(49,600)		10,932		(38,668)
Total Financial Instruments							$	(49,600)	$	(12,374)	$	(61,974)

Fair value hedges table

			Fiscal Year Ended September 30
		2011		2010		2009
			(In thousands)
Commodity contracts		$	16,552	$	34,650	$	45,120
Fair value adjustment for natural gas
	inventory designated as the hedged item		9,824		19,867		(28,831)
Total impact on revenue		$	26,376	$	54,517	$	16,289
The impact on revenue is comprised of
the following:
	Basis ineffectiveness	$	803	$	(1,272)	$	5,958
	Timing ineffectiveness		25,573		55,789		10,331
		$	26,376	$	54,517	$	16,289

Cash flow hedges table

		Fiscal Year Ended September 30, 2011
		Natural		Regulated
		Gas		Transmission
		Distribution		and Storage		Nonregulated		Consolidated
		(In thousands)
Loss reclassified from AOCI into revenue for
	effective portion of commodity contracts	$	-	$	-	$	(28,430)	$	(28,430)
Loss arising from ineffective portion of
	commodity contracts		-		-		(1,585)		(1,585)
Total impact on revenue			-		-		(30,015)		(30,015)
Net loss on settled Treasury lock agreements
	reclassified from AOCI into interest expense		(2,455)		-		-		(2,455)
Gain on unwinding of Treasury lock reclassified
	from AOCI into miscellaneous income		21,803		6,000		-		27,803
Total impact from cash flow hedges		$	19,348	$	6,000	$	(30,015)	$	(4,667)
		Fiscal Year Ended September 30, 2010
		Natural		Regulated
		Gas		Transmission
		Distribution		and Storage		Nonregulated		Consolidated
		(In thousands)
Loss reclassified from AOCI into revenue for
	effective portion of commodity contracts	$	-	$	-	$	(44,809)	$	(44,809)
Loss arising from ineffective portion of
	commodity contracts		-		-		(2,717)		(2,717)
Total impact on revenue			-		-		(47,526)		(47,526)
Net loss on settled Treasury lock agreements
	reclassified from AOCI into interest expense		(2,678)		-		-		(2,678)
Total impact from cash flow hedges		$	(2,678)	$	-	$	(47,526)	$	(50,204)
		Fiscal Year Ended September 30, 2009
		Natural		Regulated
		Gas		Transmission
		Distribution		and Storage		Nonregulated		Consolidated
		(In thousands)
Loss reclassified from AOCI into revenue for
	effective portion of commodity contracts	$	-	$	-	$	(136,540)	$	(136,540)
Loss arising from ineffective portion of
	commodity contracts		-		-		(9,888)		(9,888)
Total impact on revenue			-		-		(146,428)		(146,428)
Net loss on settled Treasury lock agreements
	reclassified from AOCI into interest expense		(4,070)		-		-		(4,070)
Total impact from cash flow hedges		$	(4,070)	$	-	$	(146,428)	$	(150,498)

Other comprehensive income from hedging table

		Fiscal Year Ended September 30
		2011		2010
		(In thousands)
Increase (decrease) in fair value:
	Treasury lock agreements	$	(12,720)	$	343
	Forward commodity contracts		(12,096)		(34,296)
Recognition of (gains) losses in earnings due to settlements:
	Treasury lock agreements		(15,969)		1,687
	Forward commodity contracts		17,344		27,333
Total other comprehensive loss from
	hedging, net of tax (1)	$	(23,441)	$	(4,933)

Expected recognition in earnings of deferred losses in AOCI table

	Treasury
	Lock		Commodity
	Agreements		Contracts		Total
	(In thousands)
2012	$	(1,266)	$	(12,160)	$	(13,426)
2013		(1,266)		(3,214)		(4,480)
2014		(1,266)		(1,461)		(2,727)
2015		601		(29)		572
2016		770		3		773
Thereafter		10,812		-		10,812
Total(1)	$	8,385	$	(16,861)	$	(8,476)