SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Sep. 30, 2013

The following table presents a reconciliation of the beginning and ending balances of asset retirement obligations at September 30 as reported in the Consolidated Balance Sheets:



(Thousands)	2013			2012
Asset retirement obligations, beginning of year	$	40,368		$	27,495
Liabilities incurred during the period	801			851
Liabilities settled during the period	(1,089		)	(601		)
Accretion	2,322			1,637
Revisions in estimated cash flows	—			10,986
Addition of MGE asset retirement obligation	32,152			—
Asset retirement obligations, end of year	$	74,554		$	40,368

Regulatory Assets and Liabilities

The following regulatory assets and regulatory liabilities were reflected in the Consolidated Balance Sheets as of September 30:



(Thousands)	2013		2012
Regulatory Assets:
Future income taxes due from customers	$	112,912	$	118,997
Pension and postretirement benefit costs	381,395		304,446
Unamortized purchased gas adjustments	17,533		40,674
Purchased gas costs	18,249		18,386
Compensated absences	8,004		7,836
Other	25,387		6,382
Total Regulatory Assets	$	563,480	$	496,721
Regulatory Liabilities:
Unamortized investment tax credits	$	2,900	$	3,113
Accrued cost of removal	59,066		55,103
Other	23,494		1,216
Total Regulatory Liabilities	$	85,460	$	59,432

Off-System Sales



Laclede Gas
Pre-tax Income	Customer Share	Company Share
First $2 million	100%	—%
Next $2 million	80%	20%
Next $2 million	75%	25%
Amounts exceeding $6 million	70%	30%

MGE
Pre-tax Income	Customer Share	Company Share
First $1.2 million	85%	15%
Next $1.2 million	80%	20%
Next $1.2 million	75%	25%
Amounts exceeding $3.6 million	70%	30%