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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 12 Months Ended
Sep. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities
The Company’s exchange-traded/cleared derivative instruments consist primarily of NYMEX and ICE positions. The NYMEX is the primary national commodities exchange on which natural gas derivatives are traded. Open NYMEX/ICE and OTCBB natural gas futures and swap positions at September 30, 2013 were as follows:
 
Laclede Gas Company
 
Laclede Energy
Resources, Inc.
 
MMBtu
(millions)
 
Avg. Price
Per
MMBtu
 
MMBtu
(millions)
 
Avg. Price
Per
MMBtu
NYMEX/ICE open short futures/swap positions
 
 
 
 
 
 
 
Fiscal 2014
—

 
$
—

 
12.91

 
$
3.98

Fiscal 2015
—

 
—

 
0.06

 
4.21

NYMEX/ICE open long futures/swap positions
 
 
 
 
 
 
 
Fiscal 2014
7.26

 
$
3.99

 
1.71

 
$
3.94

Fiscal 2015
0.94

 
3.84

 
0.19

 
4.06

Fiscal 2016
—

 
—

 
0.02

 
4.15

OTCBB open long futures
 
 
 
 
 
 
 
Fiscal 2014
16.81

 
$
3.97

 
—

 
$
—

Fiscal 2015
7.58

 
4.22

 
—

 
—
The Effect of Derivative Instruments on the Statements of Consolidated Income and Statements of Consolidated Comprehensive Income
The Effect of Derivative Instruments on the Statements of Consolidated Income and Statements of Consolidated Comprehensive Income
 
Location of Gain (Loss)
 
 
 
 
 
(Thousands)
Recorded in Income
2013
 
2012
 
2011
Derivatives in Cash Flow Hedging Relationships
 
 
 
 
 
Effective portion of gain (loss) recognized in OCI on derivatives:
 
 
 
 
 
NYMEX/ICE natural gas contracts
 
$
4,923

 
$
4,505

 
$
5,226

NYMEX gasoline and heating oil contracts
 
123

 
297

 
355

Total
 
$
5,046

 
$
4,802

 
$
5,581

Effective portion of gain (loss) reclassified from AOCI to income:
 
 
 
 
 
NYMEX/ICE natural gas contracts
Gas Marketing Operating Revenues
$
(4
)
 
$
18,929

 
$
7,443

 
Gas Marketing Operating Expenses
(509
)
 
(10,532
)
 
(9,770
)
Sub-total
 
$
(513
)
 
$
8,397

 
$
(2,327
)
NYMEX gasoline and heating oil contracts
Gas Utility Other Operation Expenses
211

 
—

 
466

Total
 
$
(302
)
 
$
8,397

 
$
(1,861
)
  Ineffective portion of gain (loss) on derivatives
    recognized in income:
 
 
 
 
 
 
NYMEX/ICE natural gas contracts
Gas Marketing Operating Revenues
$
(420
)
 
$
(36
)
 
$
966

 
Gas Marketing Operating Expenses
(239
)
 
(263
)
 
(1,322
)
Sub-total
 
$
(659
)
 
$
(299
)
 
$
(356
)
NYMEX gasoline and heating oil contracts
Gas Utility Other Operation Expenses
(127
)
 
175

 
12

Total
 
$
(786
)
 
$
(124
)
 
$
(344
)
Derivatives Not Designated as Hedging Instruments*
 
 
 
 
 
Gain (loss) recognized in income on derivatives:
 
 
 
 
 
 
Natural gas commodity contracts
Gas Marketing Operating Revenues
$
(78
)
 
$
3,782

 
$
(660
)
 
Gas Marketing Operating Expenses
—

 
687

 
4,229

NYMEX/ICE natural gas contracts
Gas Marketing Operating Revenues
(778
)
 
(615
)
 
(115
)
 
Gas Marketing Operating Expenses
—

 
(625
)
 
(3
)
NYMEX gasoline and heating oil contracts
Other Income and (Income Deductions) - Net
41

 
19

 
37

Total
 
$
(815
)
 
$
3,248

 
$
3,488


*
Gains and losses on the Utility’s natural gas derivative instruments, which are not designated as hedging instruments for financial reporting purposes, are deferred pursuant to the Utility’s PGA Clause and initially recorded as regulatory assets or regulatory liabilities. These gains and losses are excluded from the table above because they have no direct impact on the Statements of Consolidated Income. Such amounts are recognized in the Statements of Consolidated Income as a component of Regulated Gas Distribution Natural and Propane Gas operating expenses when they are recovered through the PGA Clause and reflected in customer billings.
Fair Value of Derivative Instruments in the Consolidated Balance Sheet
Fair Value of Derivative Instruments in the Consolidated Balance Sheet at September 30, 2013
 
Asset Derivatives*
 
Liability Derivatives*
(Thousands)
Balance Sheet Location
Fair Value
 
Balance Sheet Location
Fair  Value
Derivatives designated as hedging instruments
 
 
 
 
NYMEX/ICE natural gas contracts
Derivative Instrument Assets
$
2,222

 
Derivative Instrument Assets
$
440

 
Other Deferred Charges
22

 
Other Deferred Charges
11

NYMEX gasoline and heating oil contracts
Accounts Receivable - Other
105

 
Accounts Receivable - Other
—

Sub-total
 
2,349

 
 
451

Derivatives not designated as hedging instruments
 
 
 
 
NYMEX/ICE natural gas contracts
Derivative Instrument Assets
950

 
Derivative Instrument Assets
100

 
Accounts Receivable - Other
1,434

 
Accounts Receivable - Other
3,455

 
Other Deferred Charges
32

 
Other Deferred Charges
—

OTCBB natural gas contracts
Other Current Liabilities
228

 
Other Current Liabilities
4,045

 
Other Deferred Credits
4

 
Other Deferred Credits
1,398

Natural gas commodity contracts
Derivative Instrument Assets
991

 
Derivative Instrument Assets
90

 
Other Deferred Charges
20

 
Other Deferred Charges
137

 
Other Current Liabilities
247

 
Other Current Liabilities
830

 
Other Deferred Credits
21

 
Other Deferred Credits
123

Sub-total
 
3,927

 
 
10,178

Total derivatives
 
$
6,276

 
 
$
10,629

 
 
 
 
 
 
 
 
 
 
 
 
Fair Value of Derivative Instruments in the Consolidated Balance Sheet at September 30, 2012
 
Asset Derivatives
 
Liability Derivatives
(Thousands)
Balance Sheet Location
Fair Value
*
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 
 
 
NYMEX/ICE natural gas contracts
Accounts Receivable - Other
$
405

 
Accounts Receivable - Other
$
3,413

 
 
 
 
 
 
NYMEX gasoline and heating oil contracts
Accounts Receivable - Other
334

 
Accounts Receivable - Other
—

Sub-total
 
739

 
 
3,413

Derivatives not designated as hedging instruments
 
 
 
 
NYMEX/ICE natural gas contracts
Accounts Receivable - Other
8,000

 
Accounts Receivable - Other
10,731

 
Other Deferred Charges
—

 
Other Deferred Charges
—

Natural gas commodity contracts
Derivative Instrument Assets
3,150

 
Derivative Instrument Assets
295

 
Other Current Liabilities
4

 
Other Current Liabilities
137

 
Other Deferred Charges
19

 
Other Deferred Charges
—

NYMEX gasoline and heating oil contracts
Accounts Receivable - Other
10

 
Accounts Receivable - Other
—

Sub-total
 
11,183

 
 
11,163

Total derivatives
 
$
11,922

 
 
$
14,576


*
The fair values of Asset Derivatives and Liability Derivatives exclude the fair value of cash margin receivables or payables with counterparties subject to netting arrangements. Fair value amounts of derivative contracts (including the fair value amounts of cash margin receivables and payables) for which there is a legal right to set off are presented net on the Consolidated Balance Sheets. As such, the gross balances presented in the table above are not indicative of the Company’s net economic exposure. Refer to Note 10, Fair Value Measurements, for information on the valuation of derivative instruments.
Derivative instrument Reconciliation
Following is a reconciliation of the amounts in the tables above to the amounts presented in the Consolidated Balance Sheets:
(Thousands)
2013
 
2012
Fair value of asset derivatives presented above
6,276

 
11,922

Fair value of cash margin receivables offset with derivatives
1,765

 
5,478

Netting of assets and liabilities with the same counterparty
(4,739
)
 
(14,526
)
Total
3,302

 
2,874

 
 
 
 
Derivative Instrument Assets, per Consolidated Balance Sheets:
 
 
 
Derivative instrument assets
3,291

 
2,855

Other deferred charges
11

 
19

Total
3,302

 
2,874

 
 
 
 
Fair value of liability derivatives presented above
10,629

 
14,576

Fair value of cash margin payables offset with derivatives
6

 
83

Netting of assets and liabilities with the same counterparty
(4,739
)
 
(14,526
)
Derivative instrument liabilities, per Consolidated Balance Sheets
5,896

 
133

 
 
 
 
Derivative Instrument Liabilities, per Consolidated Balance Sheets:
 
 
 
Other current liabilities
$
4,400

 
$
133

Other deferred credits
1,496

 
—

Total
$
5,896

 
$
133