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Note 2 - Revenue | 9 Months Ended
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Jun. 30, 2024
Notes to Financial Statements |
Revenue from Contract with Customer [Text Block] |
2. | Revenue
The Company assesses new contracts and identifies related performance obligations for promises to transfer distinct goods or services to the customer. Revenue is recognized when performance obligations have been satisfied. In the case of Roanoke Gas, the Company contracts with its customers for the sale and/or delivery of natural gas. The following tables summarize revenue by customer, product and income statement classification:
|  | Three Months Ended June 30, 2024 |  |  | Three Months Ended June 30, 2023 |
|  | Gas utility |  |  | Non utility |  |  | Total operating revenues |  |  | Gas utility |  |  | Non utility |  |  | Total operating revenues |
Natural Gas (Billed and Unbilled): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 7,333,332 |  |  | $ | — |  |  | $ | 7,333,332 |  |  | $ | 7,405,959 |  |  | $ | — |  |  | $ | 7,405,959 |
Commercial |  |  | 4,706,086 |  |  |  | — |  |  |  | 4,706,086 |  |  |  | 4,459,667 |  |  |  | — |  |  |  | 4,459,667 |
Transportation and interruptible |  |  | 1,317,890 |  |  |  | — |  |  |  | 1,317,890 |  |  |  | 1,354,678 |  |  |  | — |  |  |  | 1,354,678 |
Other |  |  | 168,514 |  |  |  | 26,823 |  |  |  | 195,337 |  |  |  | 170,160 |  |  |  | 28,389 |  |  |  | 198,549 |
Total contracts with customers |  |  | 13,525,822 |  |  |  | 26,823 |  |  |  | 13,552,645 |  |  |  | 13,390,464 |  |  |  | 28,389 |  |  |  | 13,418,853 |
Alternative revenue programs |  |  | 905,557 |  |  |  | — |  |  |  | 905,557 |  |  |  | 241,392 |  |  |  | — |  |  |  | 241,392 |
Total operating revenues |  | $ | 14,431,379 |  |  | $ | 26,823 |  |  | $ | 14,458,202 |  |  | $ | 13,631,856 |  |  | $ | 28,389 |  |  | $ | 13,660,245 |
|  | Nine Months Ended June 30, 2024 |  |  | Nine Months Ended June 30, 2023 |
|  | Gas utility |  |  | Non utility |  |  | Total operating revenues |  |  | Gas utility |  |  | Non utility |  |  | Total operating revenues |
Natural Gas (Billed and Unbilled): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 40,001,039 |  |  | $ | — |  |  | $ | 40,001,039 |  |  | $ | 48,148,235 |  |  | $ | — |  |  | $ | 48,148,235 |
Commercial |  |  | 22,946,163 |  |  |  | — |  |  |  | 22,946,163 |  |  |  | 28,502,754 |  |  |  | — |  |  |  | 28,502,754 |
Transportation and interruptible |  |  | 4,047,151 |  |  |  | — |  |  |  | 4,047,151 |  |  |  | 4,508,997 |  |  |  | — |  |  |  | 4,508,997 |
Other |  |  | 653,571 |  |  |  | 81,366 |  |  |  | 734,937 |  |  |  | 855,079 |  |  |  | 86,637 |  |  |  | 941,716 |
Total contracts with customers |  |  | 67,647,924 |  |  |  | 81,366 |  |  |  | 67,729,290 |  |  |  | 82,015,065 |  |  |  | 86,637 |  |  |  | 82,101,702 |
Alternative revenue programs |  |  | 3,807,640 |  |  |  | — |  |  |  | 3,807,640 |  |  |  | 2,870,535 |  |  |  | — |  |  |  | 2,870,535 |
Total operating revenues |  | $ | 71,455,564 |  |  | $ | 81,366 |  |  | $ | 71,536,930 |  |  | $ | 84,885,600 |  |  | $ | 86,637 |  |  | $ | 84,972,237 |
Gas utility revenues Substantially all of Roanoke Gas' revenues are derived from rates authorized by the SCC through its tariffs. Based on its evaluation, the Company has concluded that these tariff-based revenues fall within the scope of ASC 606, Revenue from Contracts with Customers. Tariff rates represent the transaction price. Performance obligations created under these tariff-based sales include the cost of natural gas sold to customers (commodity) and the cost of transporting natural gas through the Company’s distribution system to customers (delivery). The delivery of natural gas to customers results in the satisfaction of the Company’s respective performance obligations over time. All customers are billed monthly based on consumption as measured by metered usage with payments due 20 days from the rendering of the bill. Revenue is recognized as bills are issued for natural gas that has been delivered or transported. In addition, the Company utilizes the practical expedient that allows an entity to recognize the invoiced amount as revenue, if that amount corresponds to the value received by the customer. Since customers are billed tariff rates, there is no variable consideration in the transaction price. Unbilled revenue is included in residential and commercial revenues in the preceding table. Natural gas consumption is estimated for the period subsequent to the last billed date and up through the last day of the month. Estimated volumes and approved tariff rates are utilized to calculate unbilled revenue. The following month, the unbilled estimate is reversed, the actual usage is billed and a new unbilled estimate is calculated. The Company obtains metered usage for transportation and interruptible customers at the end of each month, thereby eliminating any unbilled consideration for these rate classes. Other revenues Other revenues primarily consist of miscellaneous fees and charges, utility-related revenues not directly billed to utility customers and billings for non-utility activities. Customers are invoiced monthly based on services provided for these activities. The Company utilizes the practical expedient allowing revenue to be recognized based on invoiced amounts. The transaction price is based on a contractually predetermined rate schedule; therefore, the transaction price represents total value to the customer and no variable price consideration exists. Alternative revenue program revenues ARPs, which fall outside the scope of ASC 606, are SCC approved mechanisms that allow for the adjustment of revenues for certain broad, external factors, or for additional billings if the entity achieves certain performance targets. The Company's ARPs include its WNA, which adjusts revenues for the effects of weather temperature variations as compared to the 30-year average; the SAVE Plan over/under collection mechanism, which adjusts revenues for the differences between SAVE Plan revenues billed to customers and the revenue earned, as calculated based on the timing and extent of infrastructure replacement completed during the period; and the RNG over/under collection mechanism, which adjusts revenues similar to the SAVE Plan, but is calculated based on the timing and costs associated with owning, operating and maintaining the RNG facility. These amounts are ultimately collected from, or returned to, customers through future rate changes as approved by the SCC. Customer accounts receivable and liabilities Accounts receivable, as reflected in the condensed consolidated balance sheets, includes both billed and unbilled customer revenues, as well as amounts that are not related to customers. The balances of customer receivables are provided below:
|  | Current Assets |  |  | Current Liabilities |
|  | Trade accounts receivable(1) |  |  | Unbilled revenue(1) |  |  | Customer credit balances |  |  | Customer deposits |
Balance at September 30, 2023 |  | $ | 2,782,025 |  |  | $ | 1,240,097 |  |  | $ | 1,972,132 |  |  | $ | 1,476,321 |
Balance at June 30, 2024 |  |  | 3,783,662 |  |  |  | 1,423,346 |  |  |  | 1,075,453 |  |  |  | 1,586,618 |
Increase (decrease) |  | $ | 1,001,637 |  |  | $ | 183,249 |  |  | $ | (896,679 | ) |  | $ | 110,297 |
(1) Included in accounts receivable in the condensed consolidated balance sheet. Amounts shown net of reserve for credit losses. The Company had no significant contract assets or liabilities during the period. Furthermore, the Company did not incur any significant costs to obtain contracts.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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