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Derivative Instruments and Hedging Activities (Tables)
6 Months Ended
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts Related to Open Derivative Contracts
The following table summarizes by derivative type the gross notional amounts related to open derivative contracts at March 31, 2022, September 30, 2021 and March 31, 2021, and the final settlement dates of the Company's open derivative contracts as of March 31, 2022, excluding those derivatives that qualified for the NPNS exception:
Notional Amounts
(in millions)
TypeUnitsSettlements Extending ThroughMarch 31, 2022September 30, 2021March 31, 2021
Commodity Price Risk:
Regulated Utility Operations
PA Gas Utility NYMEX natural gas futures and option contractsDekathermsFebruary 202311 20 12 
Non-utility Operations
LPG swapsGallonsSeptember 2024622 708 557 
Natural gas futures, forward, basis swap, options and pipeline contractsDekathermsMarch 2026346 355 338 
Electricity forward and futures contractsKilowatt hoursJanuary 20263,098 4,302 4,773 
Interest Rate Risk:
Interest rate swapsEuroOctober 2022300 300 300 
Interest rate swapsUSDSeptember 2024$1,414 $1,421 $1,302 
Foreign Currency Exchange Rate Risk:
Forward foreign currency exchange contractsUSDSeptember 2024$274 $509 $384 
Net investment hedge forward foreign exchange contractsEuroDecember 2026486 173 173 
Schedule of Derivative Assets, Liabilities and Effects of Offsetting
The following table presents the Company’s derivative assets and liabilities by type, as well as the effects of offsetting:
March 31,
2022
September 30,
2021
March 31,
2021
Derivative assets:
Derivatives designated as hedging instruments:  
Foreign currency contracts$18 $20 $16 
Interest rate contracts31 — — 
49 20 16 
Derivatives subject to PGC and DS mechanisms:
Commodity contracts38 58 
Derivatives not designated as hedging instruments:  
Commodity contracts1,931 1,591 233 
Foreign currency contracts17 18 
1,948 1,609 242 
Total derivative assets — gross2,035 1,687 260 
Gross amounts offset in the balance sheet(215)(216)(35)
Cash collateral received(603)(468)(37)
Total derivative assets — net$1,217 $1,003 $188 
Derivative liabilities:
Derivatives designated as hedging instruments:
Interest rate contracts$(1)$(29)$(39)
Derivatives subject to PGC and DS mechanisms:
Commodity contracts(17)(23)(1)
Derivatives not designated as hedging instruments:
Commodity contracts(304)(257)(71)
Foreign currency contracts(2)(8)(12)
(306)(265)(83)
Total derivative liabilities — gross(324)(317)(123)
Gross amounts offset in the balance sheet215 216 35 
Cash collateral pledged— — 
Total derivative liabilities — net$(109)$(98)$(88)
Effects of Derivative Instruments on Condensed Consolidated Statements of Income and Changes in AOCI
The following tables provide information on the effects of derivative instruments on the Condensed Consolidated Statements of Income and changes in AOCI:
Three Months Ended March 31,:
Gain
Recognized in
AOCI
Loss
Reclassified from
AOCI into Income
Location of Loss Reclassified from
AOCI into Income
Cash Flow Hedges:2022202120222021
Interest rate contracts$36 $$(7)$(6)Interest expense
Net Investment Hedges:
Foreign currency contracts$11 $
Gain (Loss)
Recognized in Income
Derivatives Not Designated as Hedging Instruments:20222021Location of Gain (Loss) Recognized in Income
Commodity contracts$(7)$(2)Revenues
Commodity contracts599 135 Cost of sales
Commodity contracts— (2)Operating and administrative expenses
Foreign currency contracts17 Other non-operating income (expense), net
Total$599 $148 
Six Months Ended March 31,:
Gain (Loss)
Recognized in
AOCI
Loss
Reclassified from
AOCI into Income
Location of Loss Reclassified from
AOCI into Income
Cash Flow Hedges:2022202120222021
Interest rate contracts$48 $$(13)$(13)Interest expense
Net Investment Hedges:
Foreign currency contracts$11 $(1)
Gain (Loss)
Recognized in Income
Derivatives Not Designated as Hedging Instruments:20222021Location of Gain (Loss) Recognized in Income
Commodity contracts$$Revenues
Commodity contracts326 238 Cost of sales
Commodity contracts— Other operating income, net
Foreign currency contracts15 (3)Other non-operating income (expense), net
Total$342 $241