Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Nov. 22, 2019 | Mar. 31, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | RGC RESOURCES INC | ||
Entity Central Index Key | 0001069533 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Emerging Growth Company | No | ||
Entity Shell Company | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 8,081,123 | ||
Entity Public Float | $ 199,858,266 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,631,348 | $ 247,411 |
Accounts receivable, net | 3,870,211 | 3,744,228 |
Materials and supplies | 1,021,882 | 913,889 |
Gas in storage | 6,448,307 | 7,627,196 |
Prepaid income taxes | 1,157,980 | 837,683 |
Regulatory assets | 1,521,939 | 1,385,500 |
Interest rate swap | 0 | 100,723 |
Other | 733,525 | 687,972 |
Total current assets | 16,385,192 | 15,544,602 |
UTILITY PROPERTY: | ||
In service | 237,786,964 | 224,854,320 |
Accumulated depreciation and amortization | (67,207,334) | (63,099,306) |
In service, net | 170,579,630 | 161,755,014 |
Construction work in progress | 11,423,326 | 4,208,614 |
Utility plant, net | 182,002,956 | 165,963,628 |
OTHER ASSETS: | ||
Regulatory assets | 12,178,853 | 8,862,147 |
Investment in unconsolidated affiliate | 47,375,459 | 28,507,146 |
Interest rate swap | 0 | 209,840 |
Other | 411,236 | 472,743 |
Total other assets | 59,965,548 | 38,051,876 |
TOTAL ASSETS | 258,353,696 | 219,560,106 |
CURRENT LIABILITIES: | ||
Dividends payable | 1,339,522 | 1,242,753 |
Accounts payable | 4,483,233 | 5,211,032 |
Capital contributions payable | 5,024,824 | 10,142,766 |
Customer credit balances | 880,295 | 1,003,622 |
Customer deposits | 1,432,031 | 1,421,043 |
Accrued expenses | 3,448,000 | 3,080,432 |
Interest rate swap | 147,556 | 0 |
Regulatory liabilities | 4,877,603 | 1,990,201 |
Total current liabilities | 21,633,064 | 24,091,849 |
LONG-TERM DEBT: | ||
Notes payable | 95,512,200 | 63,243,200 |
Line-of-credit | 8,172,473 | 7,361,017 |
Less unamortized debt issuance costs | (313,315) | (282,281) |
Long-term debt net of unamortized debt issuance costs | 103,371,358 | 70,321,936 |
DEFERRED CREDITS AND OTHER LIABILITIES: | ||
Interest rate swap | 746,785 | 0 |
Asset retirement obligations | 6,788,683 | 6,417,948 |
Regulatory cost of retirement obligations | 11,892,352 | 11,163,981 |
Benefit plan liabilities | 6,912,105 | 3,947,967 |
Deferred income taxes | 12,978,523 | 12,585,577 |
Regulatory liabilities | 10,934,434 | 11,447,736 |
Total deferred credits and other liabilities | 50,252,882 | 45,563,209 |
COMMITMENTS AND CONTINGENCIES (Note 12) | ||
Stockholders’ Equity: | ||
Common Stock, $5 par value; authorized 10,000,000 shares; issued and outstanding 8,073,264 and 7,994,615 shares in 2019 and 2018, respectively | 40,366,320 | 39,973,075 |
Preferred stock, no par; authorized 5,000,000 shares; no shares issued and outstanding in 2019 and 2018 | 0 | 0 |
Capital in excess of par value | 14,397,072 | 13,043,656 |
Retained earnings | 30,821,917 | 27,438,049 |
Accumulated other comprehensive loss | (2,488,917) | (871,668) |
Total stockholders’ equity | 83,096,392 | 79,583,112 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 258,353,696 | $ 219,560,106 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 5 | $ 5 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 8,073,264 | 7,994,615 |
Common stock, shares outstanding | 8,073,264 | 7,994,615 |
Preferred stock, no par value (in usd per share) | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING REVENUES: | |||
Revenues | $ 68,026,525 | $ 65,534,736 | $ 62,296,870 |
OPERATING EXPENSES: | |||
Operations and maintenance | 14,089,019 | 12,471,428 | 12,573,608 |
General taxes | 2,066,794 | 1,878,010 | 1,786,070 |
Depreciation and amortization | 7,454,274 | 6,956,344 | 6,256,737 |
Total operating expenses | 56,431,061 | 54,064,229 | 50,104,128 |
OPERATING INCOME | 11,595,464 | 11,470,507 | 12,192,742 |
Equity in earnings of unconsolidated affiliate | 3,020,348 | 938,531 | 421,646 |
Other income (expense), net | 351,882 | 244,868 | (658,879) |
Interest expense | 3,618,551 | 2,461,565 | 1,917,254 |
INCOME BEFORE INCOME TAXES | 11,349,143 | 10,192,341 | 10,038,255 |
INCOME TAX EXPENSE | 2,650,731 | 2,895,136 | 3,805,390 |
NET INCOME | $ 8,698,412 | $ 7,297,205 | $ 6,232,865 |
EARNINGS PER COMMON SHARE: | |||
Basic (in usd per share) | $ 1.08 | $ 0.95 | $ 0.86 |
Diluted (in usd per share) | $ 1.08 | $ 0.95 | $ 0.86 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic (in shares) | 8,039,484 | 7,649,025 | 7,218,686 |
Diluted (in shares) | 8,078,950 | 7,695,712 | 7,256,046 |
Gas Utility | |||
OPERATING REVENUES: | |||
Revenues | $ 67,306,260 | $ 64,341,783 | $ 61,252,015 |
OPERATING EXPENSES: | |||
Cost of gas - utility | 32,401,123 | 32,091,923 | 28,919,625 |
Non Utility | |||
OPERATING REVENUES: | |||
Revenues | 720,265 | 1,192,953 | 1,044,855 |
OPERATING EXPENSES: | |||
Cost of gas - utility | $ 419,851 | $ 666,524 | $ 568,088 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 8,698,412 | $ 7,297,205 | $ 6,232,865 |
Other comprehensive income, net of tax: | |||
Interest rate swaps | (894,761) | 137,850 | 72,489 |
Defined benefit plans | (722,488) | 406,798 | 1,222,478 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (1,617,249) | 544,648 | 1,294,967 |
COMPREHENSIVE INCOME | $ 7,081,163 | $ 7,841,853 | $ 7,527,832 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Sep. 30, 2016 | $ 55,667,072 | $ 23,941,445 | $ 9,509,548 | $ 24,713,310 | $ (2,497,231) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,232,865 | 6,232,865 | |||
Other comprehensive income (loss) | 1,294,967 | 1,294,967 | |||
Exercise of stock options | 142,241 | 50,250 | 91,991 | ||
Stock option grants | 73,780 | 73,780 | |||
Cash dividends declared | (4,195,910) | (4,195,910) | |||
Stock split | 0 | 12,029,790 | (10,025,546) | (2,004,244) | |
Issuance costs | (96,508) | (96,508) | |||
Issuance of common stock | 921,965 | 182,745 | 739,220 | ||
Ending balance at Sep. 30, 2017 | 60,040,472 | 36,204,230 | 292,485 | 24,746,021 | (1,202,264) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 7,297,205 | 7,297,205 | |||
Other comprehensive income (loss) | 544,648 | 544,648 | |||
Exercise of stock options | 19,945 | 7,875 | 12,070 | ||
Cash dividends declared | (4,839,514) | (4,839,514) | |||
Issuance costs | (990,459) | (990,459) | |||
Issuance of common stock | 17,490,530 | 3,760,970 | 13,729,560 | ||
Reclassification adjustment for effect of change in tax law | 20,285 | 234,337 | (214,052) | ||
Ending balance at Sep. 30, 2018 | 79,583,112 | 39,973,075 | 13,043,656 | 27,438,049 | (871,668) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 8,698,412 | 8,698,412 | |||
Other comprehensive income (loss) | (1,617,249) | (1,617,249) | |||
Exercise of stock options | 412,179 | 157,540 | 254,639 | ||
Cash dividends declared | (5,314,544) | (5,314,544) | |||
Issuance of common stock | 1,334,482 | 235,705 | 1,098,777 | ||
Ending balance at Sep. 30, 2019 | $ 83,096,392 | $ 40,366,320 | $ 14,397,072 | $ 30,821,917 | $ (2,488,917) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in usd per share) | $ 0.66 | $ 0.62 | $ 0.58 |
Issuance of stock (in shares) | 47,141 | 752,194 | 47,187 |
Options exercised (in shares) | 31,508 | 1,575 | 11,225 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 8,698,412 | $ 7,297,205 | $ 6,232,865 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Depreciation and amortization | 7,600,852 | 7,090,169 | 6,378,368 |
Cost of retirement of utility plant, net | (443,586) | (288,222) | (354,744) |
Stock option grants | 0 | 0 | 73,780 |
Equity in earnings of unconsolidated affiliate | (3,020,348) | (938,531) | (421,646) |
Deferred income taxes | 684,028 | 755,994 | 3,325,379 |
Other noncash items, net | 488,202 | 163,482 | 203,743 |
Changes in assets and liabilities which provided (used) cash: | |||
Accounts receivable and customer deposits, net | (122,165) | (476,161) | (191,386) |
Inventories and gas in storage | 1,070,896 | 182,000 | (462,161) |
Regulatory and other assets | (156,799) | (138,332) | (956,894) |
Accounts payable, customer credit balances and accrued expenses, net | (2,745,377) | (25,902) | (1,374,713) |
Regulatory liabilities | 2,643,589 | (117,907) | 528,387 |
Total adjustments | 5,999,292 | 6,206,590 | 6,748,113 |
Net cash provided by operating activities | 14,697,704 | 13,503,795 | 12,980,978 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Expenditures for utility property | (21,884,317) | (23,290,994) | (20,750,181) |
Investment in unconsolidated affiliate | (20,965,907) | (11,036,247) | (2,759,346) |
Proceeds from disposal of utility property | 20,219 | 160,663 | 16,972 |
Net cash used in investing activities | (42,830,005) | (34,166,578) | (23,492,555) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings under line-of-credit | 33,735,144 | 29,814,468 | 42,569,303 |
Repayments under line-of-credit | (32,923,688) | (40,245,210) | (39,334,328) |
Proceeds from issuance of unsecured notes | 56,269,000 | 19,431,000 | 9,916,000 |
Retirement of notes payable | (24,000,000) | 0 | 0 |
Debt issuance expenses | (93,104) | (32,678) | (64,835) |
Proceeds from issuance of stock | 1,746,661 | 16,520,016 | 967,698 |
Cash dividends paid | (5,217,775) | (4,647,042) | (4,115,873) |
Net cash provided by financing activities | 29,516,238 | 20,840,554 | 9,937,965 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,383,937 | 177,771 | (573,612) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 247,411 | 69,640 | 643,252 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 1,631,348 | 247,411 | 69,640 |
Cash paid (refunded) during the year for: | |||
Interest | 3,328,130 | 2,137,782 | 1,734,178 |
Income taxes | $ 2,287,000 | $ 1,180,000 | $ 726,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation —RGC Resources, Inc. is an energy services company primarily engaged in the sale and distribution of natural gas. The consolidated financial statements include the accounts of Resources and its wholly owned subsidiaries: Roanoke Gas, Diversified Energy and Midstream. Roanoke Gas is a natural gas utility, which distributes and sells natural gas to approximately 60,700 residential, commercial and industrial customers within its service areas in Roanoke, Virginia and the surrounding localities. The Company’s business is seasonal in nature as a majority of natural gas sales are for space heating during the winter season. Roanoke Gas is regulated by the SCC. Midstream is a wholly-owned subsidiary created primarily to invest in the Mountain Valley Pipeline project. Diversified Energy is inactive. The Company follows accounting and reporting standards established by the FASB and the SEC. On June 28, 2018, the SEC adopted amendments to the definition of a "smaller reporting company" that became effective on September 10, 2018. Under the rules for smaller reporting companies, certain disclosures required of larger public business entities are reduced or eliminated. As it has met the qualifications under the definition of smaller reporting company, the Company has used the smaller reporting company exception on a limited basis, but in most instances, disclosures have been consistent with the prior year. Rate Regulated Basis of Accounting —The Company’s regulated operations follow the accounting and reporting requirements of FASB ASC No. 980, Regulated Operations . The economic effects of regulation can result in a regulated company deferring costs that have been or are expected to be recovered from customers in a period different from the period in which the costs would be charged to expense by an unregulated enterprise. When this situation occurs, costs are deferred as assets in the consolidated balance sheet (regulatory assets) and recorded as expenses when such amounts are reflected in rates. Additionally, regulators can impose liabilities upon a regulated company for amounts previously collected from customers and for current collection in rates of costs that are expected to be incurred in the future (regulatory liabilities). In the event the provisions of FASB ASC No. 980 no longer apply to any or all regulatory assets or liabilities, the Company would write off such amounts and include them in the consolidated statements of income and comprehensive income in the period which FASB ASC No. 980 no longer applied. Regulatory assets and liabilities included in the Company’s consolidated balance sheets as of September 30, 2019 and 2018 are as follows: September 30 2019 2018 Assets: Current Assets: Regulatory assets: Accrued WNA revenues $ 569,558 $ 169,602 Under-recovery of gas costs — 922,898 ESAC assets 265,392 — Accrued pension and postretirement medical 602,674 293,000 Other deferred expenses 84,315 — Total current 1,521,939 1,385,500 Utility Property: In service: Other 11,945 11,945 Other Assets: Regulatory assets: Premium on early retirement of debt 1,712,808 1,826,995 Accrued pension and postretirement medical 9,414,695 5,704,718 ESAC assets 756,803 1,330,434 Other deferred expenses 294,547 — Total non-current 12,178,853 8,862,147 Total regulatory assets $ 13,712,737 $ 10,259,592 Liabilities and Stockholders' Equity: Current Liabilities: Regulatory liabilities: Over-recovery of gas costs $ 161,837 $ — Over-recovery of SAVE Plan revenues 574,181 670,034 Rate refund 3,827,588 1,320,167 Excess deferred income taxes 205,353 — Other deferred liabilities 108,644 — Total current 4,877,603 1,990,201 Deferred Credits and Other Liabilities: Asset retirement obligations 6,788,683 6,417,948 Regulatory cost of retirement obligations 11,892,352 11,163,981 Regulatory liabilities: Excess deferred income taxes 10,934,434 11,447,736 Total non-current $ 29,615,469 $ 29,029,665 Total regulatory liabilities $ 34,493,072 $ 31,019,866 As of September 30, 2019 , the Company had regulatory assets in the amount of $13,700,792 on which the Company did not earn a return during the recovery period. Utility Plant and Depreciation —Utility plant is stated at original cost and includes direct labor and materials, contractor costs, and all allocable overhead charges. The Company applies the group method of accounting, where the costs of like assets are aggregated and depreciated by applying a rate based on the average expected useful life of the assets. In accordance with Company policy, expenditures for depreciable assets with a life greater than one year are capitalized, along with any upgrades or improvements to existing assets, when they significantly improve or extend the original expected useful life of an asset. Expenditures for maintenance, repairs, and minor renewals and betterments are expensed as incurred. The original cost of depreciable property retired is removed from utility plant and charged to accumulated depreciation. The cost of asset removals, less salvage, is charged to “regulatory cost of retirement obligations” or “asset retirement obligations” as explained under Asset Retirement Obligations below. Utility plant is composed of the following major classes of assets: September 30 2019 2018 Distribution and transmission $ 209,171,339 $ 196,778,546 LNG storage 13,417,077 13,413,175 General and miscellaneous 15,198,548 14,662,599 Total utility plant in service $ 237,786,964 $ 224,854,320 Provisions for depreciation are computed principally at composite straight-line rates over periods ranging from 5 to 76 years . Rates are determined by depreciation studies which are required to be performed at least every 5 years on the regulated utility assets of Roanoke Gas. In September 2019, the SCC staff approved the Company's most recent depreciation study. The SCC directed the Company to implement the new rates retroactive to October 1, 2018. As a result of the new rates, the composite weighted-average depreciation rate was 3.31% for the year ended September 30, 2019 as compared to 3.32% and 3.29% for fiscal years ended September 30, 2018 and 2017, respectively. The implementation of the new depreciation rates reduced total depreciation expense by $32,570 for fiscal 2019 and increased net income by $24,187 or less than $0.01 per share. The composite rates are composed of two components, one based on average service life and one based on cost of retirement. As a result, the Company accrues the estimated cost of retirement of long-lived assets through depreciation expense. These retirement costs are not a legal obligation but rather the result of cost-based regulation and are accounted for under the provisions of FASB ASC No. 980. Such amounts are classified as a regulatory liability. The Company reviews long-lived assets and certain identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These reviews have not identified any impairments which would have a material effect on the results of operations or financial condition. Asset Retirement Obligations —FASB ASC No. 410, Asset Retirement and Environmental Obligations , requires entities to record the fair value of a liability for an ARO when there exists a legal obligation for the retirement of the asset. When the liability is initially recorded, the entity capitalizes the cost, thereby increasing the carrying amount of the underlying asset. In subsequent periods, the liability is accreted, and the capitalized cost is depreciated over the useful life of the underlying asset. The Company has recorded AROs for its future legal obligations related to purging and capping its distribution mains and services upon retirement, although the timing of such retirements is uncertain. The Company’s composite depreciation rates include a component to provide for the cost of retirement of assets. As a result, the Company accrues the estimated cost of retirement of its utility plant through depreciation expense and creates a corresponding regulatory liability. The costs of retirement considered in the development of the depreciation component include those costs associated with the legal liability. Therefore, the ARO is reclassified from the regulatory cost of retirement obligation. If the legal obligations were to exceed the regulatory liability provided for in the depreciation rates, the Company would establish a regulatory asset for such difference with the anticipation of future recovery through rates charged to customers. The following is a summary of the AROs: Years Ended September 30 2019 2018 Beginning balance $ 6,417,948 $ 6,069,993 Liabilities incurred 177,646 79,608 Liabilities settled (177,755 ) (126,907 ) Accretion 370,844 332,537 Revisions to estimated cash flows — 62,717 Ending balance $ 6,788,683 $ 6,417,948 Cash, Cash Equivalents and Short-Term Investments —From time to time, the Company will have balances on deposit at banks in excess of the amount insured by the FDIC. The Company has not experienced any losses on these accounts and does not consider these amounts to be at credit risk. As of September 30, 2019 , the Company did not have any bank deposits in excess of the FDIC insurance limits. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Customer Receivables and Allowance for Doubtful Accounts —Accounts receivable include amounts billed to customers for natural gas sales and related services and gas sales occurring subsequent to normal billing cycles but before the end of the period. The Company provides an estimate for losses on these receivables by utilizing historical information, current account balances, account aging and current economic conditions. Customer accounts are charged off annually when deemed uncollectible or when turned over to a collection agency for action. A reconciliation of changes in the allowance for doubtful accounts is as follows: Years Ended September 30 2019 2018 2017 Beginning balance $ 103,573 $ 99,456 $ 76,934 Provision for doubtful accounts 220,039 169,096 84,587 Recoveries of accounts written off 96,614 78,919 110,725 Accounts written off (309,483 ) (243,898 ) (172,790 ) Ending balance $ 110,743 $ 103,573 $ 99,456 Financing Receivables —Financing receivables represent a contractual right to receive money either on demand, or on fixed or determinable dates, and are recognized as assets on the entity’s balance sheet. Trade receivables, resulting from the sale of natural gas and other services to customers, are the Company's primary type of financing receivables. These receivables are short-term in nature with a provision for uncollectible balances included in the consolidated financial statements. Inventories —Natural gas in storage and materials and supplies inventories are recorded at average cost. Natural gas storage injections are priced at the purchase cost at the time of injection and storage withdrawals are priced at the weighted average cost of gas in storage. Materials and supplies are removed from inventory at average cost. Unbilled Revenues —The Company bills its natural gas customers on a monthly cycle; however, the billing cycle period for most customers does not coincide with the accounting periods used for financial reporting. As the Company recognizes revenue when gas is delivered, an accrual is made to estimate revenues for natural gas delivered to customers but not billed during the accounting period. The amounts of unbilled revenue receivable included in accounts receivable on the consolidated balance sheets at September 30, 2019 and 2018 were $1,236,384 and $911,657 , respectively. Income Taxes —Income taxes are accounted for using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the years in which those temporary differences are expected to be recovered or settled. A valuation allowance against deferred tax assets is provided if it is more likely than not the deferred tax asset will not be realized. The Company and its subsidiaries file state and federal consolidated income tax returns. Debt Expenses —Debt issuance expenses are deferred and amortized over the lives of the debt instruments. The unamortized balances are offset against the carrying value of long-term debt. Over/Under-Recovery of Natural Gas Costs —Pursuant to the provisions of the Company’s PGA clause, the SCC provides the Company with a method of passing along to its customers increases or decreases in natural gas costs incurred by its regulated operations, including gains and losses on natural gas derivative hedging instruments. On at least a quarterly basis, the Company files a PGA rate adjustment request with the SCC to increase or decrease the gas cost component of its rates, based on projected price and activity. Once administrative approval is received, the Company adjusts the gas cost component of its rates to reflect the approved amount. As actual costs will differ from the projections used in establishing the PGA rate, the Company may either over-recover or under-recover its actual gas costs during the period. Any difference between actual costs incurred and costs recovered through the application of the PGA is recorded as a regulatory asset or liability. At the end of the deferral period, the balance of the net deferred charge or credit is amortized over an ensuing 12 -month period as amounts are reflected in customer bill. Fair Value —Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company determines fair value based on the following fair value hierarchy which prioritizes each input to the valuation methods into one of the following three broad levels: • Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 – Inputs other than quoted prices in Level 1 that are either for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 – Unobservable inputs for the asset or liability where there is little, if any, market activity which require the Company to develop its own assumptions. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). All fair value disclosures are categorized within one of the three categories in the hierarchy. See fair value disclosures below and in Notes 9 and 13. Use of Estimates —The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Excise and Sales Taxes —Certain excise and sales taxes imposed by the state and local governments in the Company’s service territory are collected by the Company from its customers. These taxes are accounted for on a net basis and therefore are not included as revenues in the Company’s consolidated income statements. Earnings Per Share —Basic EPS and diluted EPS are calculated by dividing net income by the weighted-average common shares outstanding during the period and the weighted-average common shares outstanding during the period plus dilutive potential common shares, respectively. Dilutive potential common shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all options are used to repurchase common stock at market value. The amount of shares remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities. A reconciliation of basic and diluted EPS is presented below: Years Ended September 30 2019 2018 2017 Net Income $ 8,698,412 $ 7,297,205 $ 6,232,865 Weighted-average common shares 8,039,484 7,649,025 7,218,686 Effect of dilutive securities: Options to purchase common stock 39,466 46,687 37,360 Diluted average common shares 8,078,950 7,695,712 7,256,046 Earnings Per Share of Common Stock: Basic $ 1.08 $ 0.95 $ 0.86 Diluted $ 1.08 $ 0.95 $ 0.86 Business and Credit Concentrations — The primary business of the Company is the distribution of natural gas to residential, commercial and industrial customers in its service territories. No sales to individual customers accounted for more than 5% of total revenue in any period or amounted to more than 5% of total accounts receivable. Roanoke Gas currently holds the only franchises and CPCNs to distribute natural gas in its service area. These franchises are effective through January 1, 2036 . The Company's current CPCNs in Virginia are exclusive and are intended for perpetual duration. Roanoke Gas is served directly by two primary pipelines that provide all of the natural gas supplied to the Company’s customers. Depending upon weather conditions and the level of customer demand, failure of one or both of these transmission pipelines could have a major adverse impact on the Company. Derivative and Hedging Activities —FASB ASC No. 815, Derivatives and Hedging , requires the recognition of all derivative instruments as assets or liabilities in the Company’s consolidated balance sheet and measurement of those instruments at fair value. The Company’s hedging and derivatives policy allows management to enter into derivatives for the purpose of managing the commodity and financial market risks of its business operations. The Company’s hedging and derivatives policy specifically prohibits the use of derivatives for speculative purposes. The key market risks that the Company may hedge against include the price of natural gas and the cost of borrowed funds. The Company historically has entered into collars, swaps and caps for the purpose of hedging the price of natural gas in order to provide price stability during the winter months. The fair value of these instruments is recorded in the consolidated balance sheets with the offsetting entry to either under- or over-recovery of gas costs. Net income and other comprehensive income are not affected by the change in market value as any cost incurred or benefit received from these instruments is recoverable or refunded through the PGA as the SCC allows for full recovery of prudent costs associated with natural gas purchases. At September 30, 2019 and 2018 , the Company had no outstanding derivative instruments for the purchase of natural gas. The Company has three interest rate swaps associated with its variable rate debt. Roanoke Gas has a swap on its $7,000,000 term note that effectively converts the variable interest rate into a 2.30% fixed interest rate. In June 2019, Midstream entered into two variable-rate term notes in the amount of $14,000,000 and $10,000,000 with corresponding swap agreements to convert the variable interest rates into fixed rates of 3.24% and 3.14% , respectively. All swaps qualify as a cash flow hedge with changes in fair value reported in other comprehensive income. No portion of the swaps were deemed ineffective during the period. See Notes 7 and 13 for additional information on the swaps and fair value. Non-Cash Activity — A non-cash decrease in unconsolidated affiliate and corresponding decrease in capital contributions payable of $5,117,942 occurred for the fiscal year ended September 30, 2019, while an increase in investment in unconsolidated affiliate and corresponding increase in capital contributions payable of $9,087,262 and $767,710 occurred for the fiscal years ended September 30, 2018 and 2017, respectively. Stock Issue — In March 2018, the Company issued 700,000 shares of common stock resulting in proceeds of $15,109,541 net of underwriting and other expenses. The Company issued the common shares to strengthen its balance sheet by increasing the equity component of its total capitalization ratio. The net proceeds were invested in Roanoke Gas to supplement the funding of its infrastructure improvement and replacement programs. Other Comprehensive Income (Loss) — A summary of other comprehensive income is provided below: Before Tax Amount Tax (Expense) or Benefit Net of Tax Amount Year Ended September 30, 2019: Interest rate swap: Unrealized losses $ (1,117,595 ) $ 287,669 $ (829,926 ) Transfer of realized gains to interest expense (87,309 ) 22,474 (64,835 ) Net interest rate swap (1,204,904 ) 310,143 (894,761 ) Defined benefit plans: Net loss arising during period $ (962,612 ) $ 247,777 $ (714,835 ) Amortization of actuarial gains (10,305 ) 2,652 (7,653 ) Net defined benefit plans (972,917 ) 250,429 (722,488 ) Other comprehensive loss $ (2,177,821 ) $ 560,572 $ (1,617,249 ) Year Ended September 30, 2018: Interest rate swap: Unrealized gains $ 217,773 $ (62,807 ) $ 154,966 Transfer of realized gains to interest expense (24,053 ) 6,937 (17,116 ) Net interest rate swap 193,720 (55,870 ) 137,850 Defined benefit plans: Net gain arising during period $ 595,570 $ (171,775 ) $ 423,795 Amortization of actuarial gains (23,887 ) 6,890 (16,997 ) Net defined benefit plans 571,683 (164,885 ) 406,798 Other comprehensive income $ 765,403 $ (220,755 ) $ 544,648 Year Ended September 30, 2017: Interest rate swaps: Unrealized gains $ 116,843 $ (44,354 ) $ 72,489 Net interest rate swaps 116,843 (44,354 ) 72,489 Defined benefit plans: Net gain arising during period $ 1,715,505 $ (651,892 ) $ 1,063,613 Amortization of actuarial losses 256,234 (97,369 ) 158,865 Net defined benefit plans 1,971,739 (749,261 ) 1,222,478 Other comprehensive income $ 2,088,582 $ (793,615 ) $ 1,294,967 The amortization of actuarial gains or losses are included as a component of net periodic pension and postretirement benefit costs under other income (expense), net. Composition of AOCI: Interest Rate Swaps Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) Balance September 30, 2016 $ — $ (2,497,231 ) $ (2,497,231 ) Other comprehensive income (loss) 72,489 1,222,478 1,294,967 Balance September 30, 2017 72,489 (1,274,753 ) (1,202,264 ) Other comprehensive income (loss) 137,850 406,798 544,648 Reclassification adjustment for the effect of change in tax law 20,285 (234,337 ) (214,052 ) Balance September 30, 2018 230,624 (1,102,292 ) (871,668 ) Other comprehensive income (loss) (894,761 ) (722,488 ) (1,617,249 ) Balance September 30, 2019 $ (664,137 ) $ (1,824,780 ) $ (2,488,917 ) The reclassification related to the interest rate swap was charged to regulatory liability to offset the adjustment made when revaluing the deferred tax liability of the interest rate swap for the reduction in corporate income tax rates. See recently adopted accounting standards for more information on the reclassification from AOCI. Financial Statement Reclassifications Reclassifications to certain line items of the prior years' consolidated balance sheet and consolidated income statements were made to place them on a comparable basis with the current year. The changes to the consolidated income statements are associated with the adoption of ASU 2017-07, Compensation - Retirement Benefits, which changed the income statement location of the components of net periodic benefit costs other than service cost. The changes to the consolidated income statements for the years ended September 30, 2018 and 2017 are reflected below and discussed in more detail under the recently adopted accounting standards section. Year Ended September 30, 2018 As Previously Reported Effect of Change As Adjusted Operation and maintenance 12,348,890 122,538 12,471,428 Total operating expenses 53,941,691 122,538 54,064,229 Operating income 11,593,045 (122,538 ) 11,470,507 Other income (expense), net 122,330 122,538 244,868 Income before income taxes 10,192,341 — 10,192,341 Year Ended September 30, 2017 As Previously Reported Effect of Change As Adjusted Operation and maintenance 13,100,041 (526,433 ) 12,573,608 Total operating expenses 50,630,561 (526,433 ) 50,104,128 Operating income 11,666,309 526,433 12,192,742 Other income (expense), net (132,446 ) (526,433 ) (658,879 ) Income before income taxes 10,038,255 — 10,038,255 The changes to the balance sheet relate to aggregating regulatory assets and liabilities that had been previously included in other financial statement line items into their own financial statement line item. This change allows for better presentation in the financial statements. September 30, 2018 As Previously Reported Effect of Change As Adjusted Current Assets: Accounts receivable, net 3,913,830 (169,602 ) 3,744,228 Under-recovery of gas cost 922,898 (922,898 ) — Other 980,972 (293,000 ) 687,972 Regulatory assets — 1,385,500 1,385,500 Current Liabilities: Accrued expenses 3,750,466 (670,034 ) 3,080,432 Rate refund 1,320,167 (1,320,167 ) — Regulatory liabilities — 1,990,201 1,990,201 Recently Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) that affects any entity that enters into contracts with customers for the transfer of goods or services or transfer of non-financial assets. This guidance supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when, or as, the entity satisfies the performance obligation. Subsequently issued ASUs provided additional guidance to assist in the implementation of the new revenue standard. The Company adopted ASU 2014-09 and all amendments beginning in fiscal 2019. Consistent with the modified retrospective adoption method, prior reporting period results remain unchanged and reported in accordance with ASC 605. As it relates to the Company’s contracts to deliver natural gas to customers, the guidance in ASC 606 is consistent with the guidance in ASC 605; therefore, the modified retrospective approach resulted in no cumulative catch-up to retained earnings. Furthermore, there was no significant impact to revenues recognized and no significant changes to the Company’s related business processes, systems or internal controls over financial reporting because of the new guidance. See Note 2 for additional information. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits . The primary objective of this guidance is to improve the financial statement presentation of net periodic pension and postretirement benefit costs; however, it also changes which cost components are eligible for capitalization. The amendments in the ASU require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and, if a subtotal for income from operations is presented, outside of income from operations. In addition, the ASU allows only the service cost component of periodic benefit cost to be eligible for capitalization when applicable. This change to capitalization eligibility differs from the treatment currently applied by the Company and from allowed regulatory accounting. The Company adopted the new guidance in fiscal 2019 and has reclassified the other components of net periodic benefit costs for prior years to other income (deductions) in the non-operating section of the consolidated income statements. The impact to the income statement for the adoption of this ASU is reflected under the Financial Statement Reclassifications section above. The Company also implemented the change in capitalization costs on a prospective basis. This change did not have a significant impact on the Company's consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU enhances the reporting model for financial instruments to provide users of the financial statements with more useful information through several provisions, including the following: (1) requires equity investments, excluding investments accounted for under the equity method, be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values, (3) eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (5) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. The Company adopted the ASU in fiscal 2019. The new guidance did not have a material effect on its financial position, results of operations or cash flows. See Note 13 for more information on fair value. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU provides the option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effects of the change in the U.S. federal corporate income tax rate, per the TCJA, is recorded. The new guidance is effective for the Company for the annual reporting period ending September 30, 2020 and interim periods within that annual period. Early adoption is permitted. Management completed its evaluation and adopted the new guidance in the fourth quarter of fiscal 2018. As a result, the Company reclassified $234,337 in stranded tax expense out of AOCI to retained earnings related to pension and postretirement plans for the unregulated operations of Resources. In addition, the Company also reclassified $20,285 out of AOCI to the regulatory liability for the stranded tax expense related to the interest rate swap. See the Other Comprehensive Income section above and Note 3 below for more information. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases. The ASU leaves the accounting for leases mostly unchanged for lessors, with the exception of targeted improvements for consistency; however, the new guidance requires lessees to recognize assets and liabilities for leases with terms of more than 12 months. The ASU also revises the definition of a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Consistent with current GAAP, the presentation and cash flows arising from a lease by a lessee will primarily depend on its classification as a finance or operating lease. In contrast, the new ASU requires both types of leases to be recognized on the balance sheet. I |
Revenue
Revenue | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 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 for the years ended September 30: 2019 Gas utility Non-utility Total operating revenues Natural Gas (Billed and Unbilled): Residential $ 39,519,618 $ — $ 39,519,618 Commercial 22,562,265 — 22,562,265 Industrial and Transportation 4,770,657 — 4,770,657 Revenue reductions (TCJA) (1) (523,881 ) — (523,881 ) Other 592,156 720,265 1,312,421 Total contracts with customers 66,920,815 720,265 67,641,080 Alternative Revenue Programs 385,445 — 385,445 Total operating revenues $ 67,306,260 $ 720,265 $ 68,026,525 2018 Gas utility Non-utility Total operating revenues Natural Gas (Billed and Unbilled): Residential $ 38,926,710 $ — $ 38,926,710 Commercial 22,158,226 — 22,158,226 Industrial and Transportation 4,316,526 — 4,316,526 Revenue reductions (TCJA) (1) (1,320,167 ) — (1,320,167 ) Other 690,787 1,192,953 1,883,740 Total contracts with customers 64,772,082 1,192,953 65,965,035 Alternative Revenue Programs (430,299 ) — (430,299 ) Total operating revenues $ 64,341,783 $ 1,192,953 $ 65,534,736 2017 Gas utility Non-utility Total operating revenues Natural Gas (Billed and Unbilled): Residential $ 34,462,456 $ — $ 34,462,456 Commercial 19,913,853 — 19,913,853 Industrial and Transportation 4,400,731 — 4,400,731 Other 693,435 1,044,855 1,738,290 Total contracts with customers 59,470,475 1,044,855 60,515,330 Alternative Revenue Programs 1,781,540 — 1,781,540 Total operating revenues $ 61,252,015 $ 1,044,855 $ 62,296,870 (1) Accrued refund associated with excess revenue collected in tariff rates associated with the reduction in federal income tax rates. See Note 3 for more information. Gas utility revenues Substantially all of Roanoke Gas’ revenues are derived from rates authorized by the SCC as reflected in its tariffs. Based on its evaluation, the Company has concluded that these tariff-based revenues fall within the scope of ASC 606. Tariff rates represent the transaction price. Performance obligations created under these tariff-based sales include commodity (the cost of natural gas sold to customers) and delivery (transporting natural gas through the Company’s distribution system to customers). The sale and/or delivery of natural gas to customers result in the satisfaction of the Company’s performance obligation over time as natural gas is delivered. All customers are billed monthly based on consumption as measured by metered usage. 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 above. 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 industrial 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. Non-utility (unregulated) activities provided by the Company include contract paving and other similar services. Regarding these activities, the customer is invoiced monthly based on services provided. 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, and the SAVE Plan over/under collection mechanism, which adjusts revenues for the differences between SAVE Plan revenues billed to customers in the current tariff rates and the revenues earned, as calculated based on the timing and extent of infrastructure replacement completed during the period. These amounts are ultimately collected from, or returned to, customers through future changes to tariff rates. Customer Accounts Receivable Accounts receivable, as reflected in the 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 September 30, 2018 $ 2,675,611 $ 911,657 $ 1,003,622 $ 1,421,043 September 30, 2019 2,590,702 1,236,384 880,295 1,432,031 Increase (decrease) $ (84,909 ) $ 324,727 $ (123,327 ) $ 10,988 (1) Included in "Accounts receivable, net" in the condensed consolidated balance sheet. Amounts shown net of reserve for bad debts. The Company had no significant contract assets or liabilities during the period. Furthermore, the Company did not incur any significant costs to obtain contracts. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Sep. 30, 2019 | |
Regulated Operations [Abstract] | |
Regulatory Matters | REGULATORY MATTERS The SCC exercises regulatory authority over the natural gas operations of Roanoke Gas. Such regulation encompasses terms, conditions and rates to be charged to customers for natural gas service, safety standards, service extension, accounting and depreciation. On October 10, 2018, Roanoke Gas filed a general rate case application requesting an increase in annual customer non-gas rates of $10.5 million. This application incorporated into the non-gas rate the impact of tax reform, non-SAVE utility plant investment, increased operating costs, recovery of regulatory assets associated with eligible safety activity costs and SAVE Plan investments and related costs that were previously recovered through the SAVE Rider. The new non-gas rates were placed in effect for service rendered on or after January 1, 2019, subject to refund pending audit and final order by the SCC. On June 28, 2019, the SCC staff issued their report including a recommendation for an annual non-gas rate increase of approximately $6.5 million . Management reviewed the SCC staff report and submitted rebuttal testimony in preparation for the hearing on the rate application. On August 14th and 15th, the SCC conducted a hearing on the rate application. The hearing examiner's report was not expected until December 2019 with a final order from the SCC not expected until early 2020. As a result of the assessment of the SCC staff report, in addition to the rebuttal testimony and positions taken by the Company, management has accrued an estimate for a refund for the difference between the rates placed into effect on January 1, 2019 and management's estimate of the non-gas rates that will be approved by the SCC. The amount reflected in the financial statements is an estimate and the final order could result in a higher or lower refund. On November 19, 2019, the hearing examiner issued his report that was subsequently revised on November 26, 2019. See Note 15 for more information. As referenced in Note 8, the TCJA reduced the federal corporate tax rate to 21% . The Company revalued its deferred tax assets and liabilities to reflect the new federal tax rate. Under the provisions of ASC 740, the corresponding adjustment to deferred income taxes generally flows directly to income tax expense. For rate regulated entities such as Roanoke Gas, these excess deferred taxes were originally recovered from its customers based on billing rates derived using a federal income tax rate of 34% . Therefore, the adjustment to the net deferred tax liabilities of Roanoke Gas, to the extent such net deferred tax liabilities are attributable to rate base or cost of service for customers, are refundable to customers. Roanoke Gas began accounting for the refund of these excess deferred taxes in fiscal 2018 along with reflecting a corresponding reduction in income tax expense. As of September 30, 2019, Roanoke Gas had approximately $11,100,000 remaining in the net regulatory liability related to these excess deferred income taxes, most of which will be refunded over a 28 year period per IRS normalization requirements. The SCC staff report on the general rate case application had no significant changes to the provision for and refund timing of the excess deferred taxes included in regulatory liabilities. The Company has transitioned to a corporate federal income tax rate of 21% and a combined 25.74% state and federal tax rate in fiscal 2019. In January 2018, the SCC issued a directive requiring the accrual of a regulatory liability for excess revenues collected from customers attributable to the higher federal income tax rate, included as a component of customer billing rates, until such time as the SCC approves revised billing rates incorporating the lower tax rate. Effective with January 2019 customer billings, the Company began refunding the excess revenues to customers. The SCC staff report on the general rate case application had no significant changes to the provision for and refund timing of the excess deferred taxes or the refund amount for excess revenues included in regulatory liabilities. The remaining balance of excess revenues related to the reduction in the federal income tax rate and the estimated accrued rate refund associated with the non-gas general rate application are reflected in the rate refund line item under the regulatory liabilities as detailed in Note 1. In June 2019, the Company submitted its updated depreciation study with the SCC staff. The depreciation study, which is based on average remaining service life, resulted in an overall composite weighted-average depreciation rate of 3.31% . In September 2019, the SCC staff approved the depreciation study filing and instructed the Company to implement the new rates retroactive to October 1, 2018. As a result, the Company recorded a $32,570 reduction in annual depreciation expense for the fiscal year ended September 30, 2019. See Note 1 for more information. In May 2019, the Company filed with the SCC its most recent SAVE Plan and Rider update. The SAVE Plan provides a mechanism for the Company to recover the related depreciation and expenses and return on rate base of its infrastructure replacement program. The updated SAVE filing continues the replacement of first generation plastic main and related services and includes the replacement of a natural gas transfer station. The filing also proposes to extend the Company's SAVE Plan to September 30, 2024. In September 2019, the SCC issued a final order on the SAVE Plan approving the extension of the SAVE Plan through September 30, 2024 and authorizing a SAVE Rider that provides up to $1.1 million in revenue in fiscal 2020 for SAVE Plan investment since January 1, 2019 and proposed fiscal 2020 SAVE investment. The SCC also approved the True-up factor to provide for the refund of approximately $543,000 in over-collected balance from the 2018 SAVE Plan. |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Operating segments are defined as components of an enterprise for which separate financial information is available and is evaluated regularly by the Company's chief operating decision maker in deciding how to allocate resources and assess performance. The Company uses operating income and equity in earnings to assess segment performance. Intersegment transactions are recorded at cost. The reportable segments disclosed herein are defined as follows: Gas Utility - The natural gas segment of the Company generates revenue from its tariff rates and other regulatory mechanisms through which it provides the sale and distribution of natural gas to its residential, commercial and industrial customers. Investment in Affiliates - The investment in affiliates segment reflects the income generated through the activities of the Company's investment in MVP and Southgate projects. Parent and Other - Parent and other include the unregulated activities of the Company as well as certain corporate eliminations. Information related to the segments of the Company are provided below: Gas Utility Investment in Affiliates Parent and Other Consolidated Total For the Year Ended September 30, 2019: Operating revenues $ 67,306,260 $ — $ 720,265 $ 68,026,525 Depreciation 7,454,274 — — 7,454,274 Operating income (loss) 11,458,679 (153,149 ) 289,934 11,595,464 Equity in earnings — 3,020,348 — 3,020,348 Interest expense 2,404,518 1,214,033 — 3,618,551 Income before income taxes 9,400,869 1,657,988 290,286 11,349,143 As of September 30, 2019: Total assets $ 195,969,019 $ 47,429,368 $ 14,955,309 $ 258,353,696 Gross additions to utility property 21,884,317 — — 21,884,317 Gross investment in MVP and Southgate — 20,965,907 — 20,965,907 Gas Utility Investment in Affiliates Parent and Other Consolidated Total For the Year Ended September 30, 2018: Operating revenues $ 64,341,783 $ — $ 1,192,953 $ 65,534,736 Depreciation 6,956,344 — — 6,956,344 Operating income (loss) 11,043,609 (92,981 ) 519,879 11,470,507 Equity in earnings — 938,531 — 938,531 Interest expense 2,079,553 382,012 — 2,461,565 Income before income taxes 9,208,921 463,541 519,879 10,192,341 As of September 30, 2018: Total assets $ 181,360,570 $ 28,540,978 $ 9,658,558 $ 219,560,106 Gross additions to utility property 23,290,994 — — 23,290,994 Gross investment in MVP and Southgate — 11,036,247 — 11,036,247 For the Year Ended September 30, 2017: Operating revenues $ 61,252,015 $ — $ 1,044,855 $ 62,296,870 Depreciation 6,256,737 — — 6,256,737 Operating income (loss) 11,790,728 (69,515 ) 471,529 12,192,742 Equity in earnings — 421,646 — 421,646 Interest expense 1,778,763 138,491 — 1,917,254 Income before income taxes 9,353,085 213,641 471,529 10,038,255 As of September 30, 2017: Total assets $ 162,727,812 $ 7,496,965 $ 12,910,294 $ 183,135,071 Gross additions to utility property 20,750,181 — — 20,750,181 Gross investment in MVP and Southgate — 2,759,346 — 2,759,346 |
Other Investments
Other Investments | 12 Months Ended |
Sep. 30, 2019 | |
Other Investments [Abstract] | |
Other Investments | OTHER INVESTMENTS In October 2015, Midstream, acquired a 1% equity interest in the Mountain Valley Pipeline, LLC. The LLC was established to construct and operate a natural gas pipeline originating in northern West Virginia and extending through south central Virginia. The proposed pipeline will have the capacity to transport approximately 2 million dths of natural gas per day. According to the LLC's managing partner, the anticipated project in-service date has been extended to late calendar 2020. The latest delay is due to a FERC issued project-wide stop order on October 15th, which halted construction in response to the Fourth Circuit granting a stay on a permit issued by the U.S. Fish and Wildlife Service in November 2017. The FERC order directed activity on the pipeline to be focused on restoration and stabilization activities along the pipeline. As a result of this recent FERC action and other judicial and regulatory actions, the estimated total project cost has grown to between $5.3 and $5.5 billion, thereby increasing Midstream's estimated total cash contributions to between $53 and $55 million. See Note 15 regarding an increase in the Company's participation in MVP. In April 2018, the LLC announced the MVP Southgate project, which is a planned 70 mile pipeline extending from the MVP mainline in Virginia to delivery points in North Carolina. Midstream is a less than 1% investor in this project, which will be accounted for under the cost method. Total estimated project cost is between $350 and $500 million of which Midstream's portion is approximately $1.8 to $2.5 million. The Southgate in-service date is currently targeted for the end of calendar 2020, subject to any further delays in the completion of the MVP mainline. Midstream held an approximate $47.4 million investment in the MVP and Southgate projects at September 30, 2019 . Funding for Midstream's investment is provided through unsecured Promissory Notes as further described in Note 7 below. The Company will participate in the earnings generated from the transportation of natural gas through both pipelines proportionate to its level of investment once the pipelines are placed in service. The financial statement locations of the investments by Midstream are as follows: September 30 Balance Sheet Location of Other Investments: 2019 2018 Other Assets: MVP $ 47,055,426 $ 28,387,032 Southgate 320,033 120,114 Investment in unconsolidated affiliate $ 47,375,459 $ 28,507,146 Current Liabilities: MVP $ 4,958,260 $ 10,022,652 Southgate 66,564 120,114 Capital contributions payable $ 5,024,824 $ 10,142,766 Years ended September 30 Income Statement Location of Other Investments: 2019 2018 2017 Equity in earnings of unconsolidated affiliate $ 3,020,348 $ 938,531 $ 421,646 September 30 2019 2018 Undistributed earnings, net of income taxes, of MVP in retained earnings $ 3,267,176 $ 1,024,266 The change in the investment in unconsolidated affiliate is provided below: September 30 2019 2018 2017 Cash investment $ 20,965,907 $ 11,036,247 $ 2,759,346 Change in accrued capital calls (5,117,942 ) 9,087,262 767,710 Equity in earnings of unconsolidated affiliates 3,020,348 938,531 421,646 Change in investment in unconsolidated affiliates $ 18,868,313 $ 21,062,040 $ 3,948,702 Summary unaudited financial statements of Mountain Valley Pipeline are presented below. Southgate financial statements, which is accounted for under the cost method, are not included: Income Statement Years Ended September 30, 2019 2018 2017 AFUDC $ 295,430,776 $ 90,096,350 $ 41,848,389 Net Other Income 5,655,644 3,433,365 327,078 Net Income $ 301,086,420 $ 93,529,715 $ 42,175,467 Balance Sheet September 30 2019 2018 Assets: Current Assets $ 485,323,892 $ 1,237,237,542 Construction Work in Progress 4,675,267,389 2,301,591,079 Other Assets 13,190,816 18,165,856 Total Assets $ 5,173,782,097 $ 3,556,994,477 Liabilities and Equity: Current Liabilities $ 466,776,233 $ 715,879,655 Capital 4,707,005,864 2,841,114,822 Total Liabilities and Equity $ 5,173,782,097 $ 3,556,994,477 |
Line-of-Credit
Line-of-Credit | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Line-of-Credit | LINE-OF-CREDIT On March 26, 2019, Roanoke Gas entered into a new unsecured line-of-credit agreement. This agreement replaced the prior line-of-credit agreement scheduled to expire March 31, 2020 . The new agreement is for a 2 -year term expiring March 31, 2021 with a maximum borrowing limit of $30,000,000 . Amounts drawn against the new agreement are considered to be non-current, as the balance under the line-of-credit is not subject to repayment within the next 12-month period. The new agreement maintains the same variable interest rate based on 30-day LIBOR plus 100 basis points and availability fee of 15 basis points and provides multi-tiered borrowing limits to accommodate seasonal borrowing demands and minimize borrowing costs. The Company's total available borrowing limits under this agreement for the remaining term are as follows: As of Available Line-of-Credit September 30, 2019 $ 22,000,000 April 1, 2020 16,000,000 July 17, 2020 21,000,000 September 18, 2020 30,000,000 A summary of the line-of-credit follows: September 30 2019 2018 2017 Available line-of-credit at year-end $ 22,000,000 $ 20,000,000 $ 21,000,000 Outstanding balance at year-end 8,172,473 7,361,017 17,791,760 Highest month-end balance outstanding 15,801,798 17,054,377 17,791,760 Average daily balance 6,049,527 6,730,334 10,936,114 Average rate of interest during year on outstanding balances 3.40 % 2.53 % 1.92 % Interest rate at year-end 3.02 % 3.26 % 2.23 % Interest rate on unused line-of-credit 0.15 % 0.15 % 0.15 % Associated with the line-of-credit is a credit agreement that contains various representations, warranties and covenants including a requirement that the Company maintain an interest coverage ratio of not less than 1.5 to 1 and a long-term debt to long-term capitalization ratio of less than 65% . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT In June 2019, Midstream entered into two unsecured promissory notes and loan agreements. On June 12, 2019, Midstream entered into a 7 -year unsecured note in the aggregate principal amount of $14,000,000 at an interest rate of 30-day LIBOR plus 115 basis points. Midstream also entered into an interest rate swap agreement that converts the note's variable interest rate to a 3.24% fixed rate. On June 13, 2019, Midstream entered into a 5 -year unsecured note in the aggregate principal amount of $10,000,000 at an interest rate of 30-day LIBOR plus 120 basis points. Beginning in July 2022, the second note's terms require monthly principal repayments with the remaining unpaid balance due on June 1, 2024. In addition, Midstream entered into a second interest rate swap agreement that converts the second note's variable interest rate to a 3.14% fixed rate. The proceeds from the notes issued in June 2019 were used to pay down Midstream's notes under the existing non-revolving credit agreement as amended in February 2019. As a result, the corresponding available balances on the prior notes declined by $24,000,000 , thereby reducing the previously amended available balance from $50,000,000 to $26,000,000 . On June 5, 2019, Roanoke Gas entered into an agreement to issue notes in the aggregate principal amount of $10,000,000 . These notes are scheduled to be issued on the day of closing currently proposed for December 6, 2019. These notes will have a 10 -year term from the date of issue at a fixed interest rate of 3.60% . The proceeds from these notes will be used to finance a portion of Roanoke Gas' capital budget. On March 28, 2019, Roanoke Gas entered into 12 -year unsecured notes in the total principal amount of $10,000,000 with a fixed interest rate of 4.41% per annum. Proceeds from these notes were used to refinance a portion of Roanoke Gas' debt under the line-of-credit. Roanoke Gas also has other unsecured notes at varying fixed interest rates as well as a variable-rate note with interest based on 30-day LIBOR plus 90 basis points. The variable rate note is hedged by a swap agreement, which converts the debt into a fixed-rate instrument with an annual interest rate of 2.30% . Long-term debt consists of the following: September 30 2019 2018 Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs Roanoke Gas: Unsecured senior notes payable, at 4.26%, due on September 18, 2034 $ 30,500,000 $ 144,811 $ 30,500,000 $ 154,465 Unsecured term note payable, at 30-day LIBOR plus 0.90%, November 1, 2021 7,000,000 6,948 7,000,000 10,283 Unsecured term notes payable, at 3.58% due on October 2, 2027 8,000,000 38,528 8,000,000 43,343 Unsecured term notes payable at 4.41%, due on March 28, 2031 10,000,000 36,272 — — Midstream: Unsecured term notes payable, at 30-day LIBOR plus 1.35% due December 29, 2020 16,012,200 59,504 17,743,200 74,190 Unsecured term note payable, at 30-day LIBOR plus 1.15%, due June 12, 2026 14,000,000 16,252 — — Unsecured term note payable, at 30-day LIBOR plus 1.20%, due June 1, 2024 10,000,000 11,000 — — Total notes payable $ 95,512,200 $ 313,315 $ 63,243,200 $ 282,281 Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2021 8,172,473 — 7,361,017 — Total long-term debt $ 103,684,673 $ 313,315 $ 70,604,217 $ 282,281 Debt issuance costs are amortized over the life of the related debt. As of September 30, 2019 and 2018 , the Company also had an unamortized loss on the early retirement of debt of $1,712,808 and $1,826,995 , respectively, which has been deferred as a regulatory asset and is being amortized over a 20 year period. All of the debt agreements set forth certain representations, warranties and covenants to which the Company is subject, including financial covenants that require the ratio of long-term debt to long-term capitalization to not exceed 65% . All of the debt agreements except for the line-of-credit provide for priority indebtedness to not exceed 15% of consolidated total assets. The aggregate annual maturities of long-term debt for the next five years ending after September 30, 2019 are as follows: Year Ending September 30 Maturities 2020 $ — 2021 24,184,673 2022 7,000,000 2023 — 2024 10,000,000 Thereafter 62,500,000 Total $ 103,684,673 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES On December 22, 2017, the President signed into law the TCJA, which enacted significant changes to the Internal Revenue Code, including the reduction in the maximum federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result, the Company's statutory federal income tax rate transitioned from 34% in fiscal 2017 to 24.3% in fiscal 2018 and 21% in fiscal 2019. With a fiscal tax year ending in September, the Company applied a blended federal tax rate of 24.3% for the fiscal year ended September 30, 2018 as determined on the number of days of the Company's fiscal year at 34% and the number of days at 21% . Under the provisions of ASC 740 - Income Taxes , the deferred tax assets and liabilities of the Company were revalued in fiscal 2018 to reflect the reduction in the corporate federal income tax rate. The result of this revaluation was a reduction in the net deferred tax liability of approximately $9 million, including approximately $11.8 million reclassified to regulatory liability, a $3 million gross up to reflect pre-tax basis, and $0.26 million increase in income tax expense related to unregulated operations for fiscal 2018. The excess deferred income taxes are reflected on a pretax basis to appropriately contemplate future tax consequences in the periods when the regulatory liability is settled. The excess deferred taxes related to the depreciable property is being returned to customers through reduced billings over the remaining weighted average useful life of the property with a corresponding reduction in income tax expense. The details of income tax expense are as follows: Years Ended September 30 2019 2018 2017 Current income taxes: Federal $ 1,698,215 $ 1,831,085 $ 72,368 State 268,488 308,057 407,643 Total current income taxes 1,966,703 2,139,142 480,011 Deferred income taxes: Federal 272,079 440,282 3,129,925 State 411,949 315,712 195,454 Total deferred income taxes 684,028 755,994 3,325,379 Total income tax expense $ 2,650,731 $ 2,895,136 $ 3,805,390 Income tax expense for the years ended September 30, 2019 , 2018 and 2017 differed from amounts computed by applying the U.S. federal income tax rate to earnings before income taxes due to the following: Years Ended September 30 2019 2018 2017 Income before income taxes $ 11,349,143 $ 10,192,341 $ 10,038,255 Corporate federal income tax rate 21.0 % 24.3 % 34.0 % Income tax expense computed at the federal statutory rate $ 2,383,320 $ 2,476,739 $ 3,413,007 State income taxes, net of federal income tax benefit 537,545 472,193 398,044 Revaluation of unregulated deferred taxes to 21% — 256,444 — Net amortization of excess deferred taxes on regulated operations (212,896 ) (264,106 ) — Tax benefit recognized on stock compensation (96,499 ) (68,364 ) (26,421 ) Other, net 39,261 22,230 20,760 Total income tax expense $ 2,650,731 $ 2,895,136 $ 3,805,390 The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are as follows: September 30 2019 2018 Deferred tax assets: Allowance for uncollectibles $ 28,503 $ 26,658 Accrued pension and postretirement medical benefits 782,592 897,834 Regulatory effect of change in federal income tax rate 2,867,383 2,946,649 Accrued vacation 150,882 160,001 Over-recovery of gas costs 23,979 — Cost of gas held in storage 590,495 591,899 Deferred compensation 803,979 716,843 Interest rate swap 230,204 — Rate refund 130,063 339,812 Other 261,125 298,129 Total gross deferred tax assets 5,869,205 5,977,825 Deferred tax liabilities: Utility plant 18,132,022 17,982,215 Under-recovery of gas costs — 255,570 MVP investment 705,193 245,678 Other 10,513 79,939 Total gross deferred tax liabilities 18,847,728 18,563,402 Net deferred tax liability $ 12,978,523 $ 12,585,577 FASB ASC No. 740 - Income Taxes provides for the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recognized in the financial statements. The Company has evaluated its tax positions and accordingly has not identified any significant uncertain tax positions. The Company’s policy is to classify interest associated with uncertain tax positions as interest expense in the financial statements. Penalties are classified under other expense. The Company files a consolidated federal income tax return and state income tax returns in Virginia and West Virginia. The federal returns and the state returns for both Virginia and West Virginia for the tax years ended prior to September 30, 2016 are no longer subject to examination. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The Company sponsors both a noncontributory pension plan and a postretirement plan. The pension plan covers substantially all employees and benefits fully vest after 5 years of credited service. Benefits paid to retirees are based on age at retirement, years of service and average compensation. Effective January 1, 2017, a "soft freeze" to the pension plan was implemented, and employees hired on or after that date are no longer eligible to participate. Employees hired prior to January 1, 2017 will continue to participate in the plan and accrue benefits. Commensurate with the "soft freeze" in the pension plan, the Company amended its 401(k) Plan, allowing management to authorize a discretionary contribution to the 401(k) account for those employees hired on or after January 1, 2017. The amount, if any, of this discretionary contribution would be determined each year and would be applied to the eligible employees at the end of the calendar year. This Company contribution would be in addition to any employee elected deferrals and employer match as provided for under the 401(k) Plan. The postretirement plan provides certain health care, supplemental retirement and life insurance benefits to retired employees who meet specific age and service requirements. Employees hired prior to January 1, 2000 are eligible to participate in the postretirement plan. Employees must have a minimum of 10 years of service and retire after attaining the age of 55 in order to vest in the postretirement plan. Retiree contributions to the plan are based on the number of years of service to the Company as determined under the pension plan. Employers who sponsor defined benefit plans must recognize the funded status of defined benefit pension and other postretirement plans as an asset or liability in their statements of financial position and recognize changes in that funded status in the year in which the changes occur through comprehensive income. For pension plans, the benefit obligation is the projected benefit obligation, and for other postretirement plans, the benefit obligation is the accumulated benefit obligation. The Company established a regulatory asset for the portion of the obligation expected to be recovered in rates in future periods. The regulatory asset is adjusted for the amortization of the transition obligation and recognition of actuarial gains and losses. The portion of the obligation attributable to the unregulated operations of the holding company is recognized in other comprehensive income. The following tables set forth the benefit obligation, fair value of plan assets, the funded status of the plans, amounts recognized in the Company’s consolidated financial statements and the assumptions used: Pension Plan Postretirement Plan 2019 2018 2019 2018 Accumulated benefit obligation $ 30,927,973 $ 25,199,762 $ 18,030,399 $ 16,207,322 Change in benefit obligation: Benefit obligation at beginning of year $ 28,850,299 $ 29,657,347 $ 16,207,322 $ 17,666,812 Service cost 537,268 665,235 132,882 167,220 Interest cost 1,166,728 1,088,180 648,944 640,602 Actuarial (gain) loss 5,901,915 (1,727,767 ) 1,530,522 (1,774,320 ) Benefit payments, net of retiree contributions (905,223 ) (832,696 ) (489,271 ) (492,992 ) Benefit obligation at end of year $ 35,550,987 $ 28,850,299 $ 18,030,399 $ 16,207,322 Change in fair value of plan assets: Fair value of plan assets at beginning of year $ 28,184,697 $ 26,418,671 $ 12,924,957 $ 12,691,162 Actual return on plan assets, net of taxes 3,907,197 1,798,722 346,924 426,787 Employer contributions 2,400,000 800,000 300,000 300,000 Benefit payments, net of retiree contributions (905,223 ) (832,696 ) (489,271 ) (492,992 ) Fair value of plan assets at end of year $ 33,586,671 $ 28,184,697 $ 13,082,610 $ 12,924,957 Funded status $ (1,964,316 ) $ (665,602 ) $ (4,947,789 ) $ (3,282,365 ) Amounts recognized in the balance sheet consist of: Noncurrent liabilities $ (1,964,316 ) $ (665,602 ) $ (4,947,789 ) $ (3,282,365 ) Amounts recognized in accumulated other comprehensive loss: Net actuarial loss, net of tax $ 1,047,063 $ 361,215 $ 777,717 $ 741,077 Total amounts included in other comprehensive loss, net of tax $ 1,047,063 $ 361,215 $ 777,717 $ 741,077 Amounts deferred to a regulatory asset: Net actuarial loss $ 6,356,201 $ 3,894,221 $ 3,661,168 $ 2,103,497 Amounts recognized as regulatory assets $ 6,356,201 $ 3,894,221 $ 3,661,168 $ 2,103,497 The Company expects that approximately $90,000 before tax, of AOCI will be recognized in net periodic benefit costs in fiscal 2020 and approximately $603,000 of amounts deferred as regulatory assets will be amortized and recognized in net periodic benefit costs in fiscal 2020. The following table details the actuarial assumptions used in determining the projected benefit obligations and net benefit cost of the pension and the accumulated benefit obligations and net benefit cost of the postretirement plan for 2019 , 2018 and 2017 : Pension Plan Postretirement Plan 2019 2018 2017 2019 2018 2017 Assumptions used to determine benefit obligations: Discount rate 3.03 % 4.11 % 3.72 % 3.00 % 4.09 % 3.69 % Expected rate of compensation increase 4.00 % 4.00 % 4.00 % N/A N/A N/A Assumptions used to determine benefit costs: Discount rate 4.11 % 3.72 % 3.42 % 4.09 % 3.69 % 3.33 % Expected long-term rate of return on plan assets 5.50 % 7.00 % 7.00 % 4.30 % 4.84 % 4.84 % Expected rate of compensation increase 4.00 % 4.00 % 4.00 % N/A N/A N/A To develop the expected long-term rate of return on assets assumption, the Company, with input from the Plans' actuaries and investment advisors, considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of each plan’s portfolio. Components of net periodic benefit cost are as follows: Pension Plan Postretirement Plan 2019 2018 2017 2019 2018 2017 Service cost $ 537,268 $ 665,235 $ 706,677 $ 132,882 $ 167,220 $ 183,267 Interest cost 1,166,728 1,088,180 995,598 648,944 640,602 626,822 Expected return on plan assets (1,549,437 ) (1,862,838 ) (1,616,412 ) (547,218 ) (623,381 ) (571,513 ) Recognized loss 158,599 351,030 662,180 123,805 283,868 429,758 Net periodic benefit cost $ 313,158 $ 241,607 $ 748,043 $ 358,413 $ 468,309 $ 668,334 Service cost is included in operation and maintenance expense of the consolidated income statement. All other components of net periodic benefit costs are included in the other income (expense), net line. The assumed health care cost trend rates used in measuring the accumulated benefit obligation for the postretirement plan as of September 30, 2019 , 2018 and 2017 are presented below: Pre 65 Post 65 2019 2018 2017 2019 2018 2017 Health care cost trend rate assumed for next year 7.00 % 7.00 % 7.00 % 5.20 % 5.00 % 5.00 % Rate to which the cost trend is assumed to decline (the ultimate trend rate) 5.50 % 5.00 % 5.00 % 5.20 % 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2022 2026 2021 2019 2018 2017 The health care cost trend rate assumptions could have a significant effect on the amounts reported. A change of 1% would have the following effects: 1% Increase 1% Decrease Effect on total service and interest cost components $ 136,000 $ (109,000 ) Effect on accumulated postretirement benefit obligation 2,954,000 (2,387,000 ) The primary objectives of both plans' investment policies are to maintain investment portfolios that diversify risk through prudent asset allocation parameters, achieve asset returns that meet or exceed the corresponding actuarial assumptions, achieve asset returns that are competitive with like institutions employing similar investment strategies and meet expected future benefits in both the short-term and long-term. In 2018, the Company revised its targeted pension plan investment allocation by rebalancing the assets from a 60% equity allocation to a 40% equity allocation. This change in investment strategy was in response to the pension plan's improved funded position and the implementation of a "soft freeze", which will limit future growth in liabilities as no new employees will enter the plan. The change in investment allocation will allow the opportunity to reduce investment risk and volatility in asset performance while providing for asset growth through the reduced equity exposure. As a result, the Company's assumed long-term rate of return on pension and postretirement plan assets for fiscal 2019 was adjusted down to 5.5% and 4.3% , respectively. The investment policy continues to provide for a range of investment allocations to allow for continued flexibility in responding to market conditions. The Company’s target and actual asset allocation in the pension and postretirement plans as of September 30, 2019 and 2018 were: Pension Plan Postretirement Plan Target 2019 2018 Target 2019 2018 Asset category: Equity securities 40 % 40 % 40 % 50 % 49 % 49 % Debt securities 60 % 59 % 59 % 50 % 50 % 50 % Cash — % 1 % 1 % — % 1 % 1 % Other — % — % — % — % — % — % The assets of the plans are invested in mutual funds. The Company uses the fair value hierarchy described in Note 1 to classify these assets. The mutual funds are included under Level 2 in the fair value hierarchy as their fair values are determined based on individual prices for each security that comprises the mutual funds. Most of the individual investments are determined based on quoted market prices for each security; however, certain fixed income securities and other investments are not actively traded and are valued based on similar investments. The following tables contains the fair value classifications of the plans' assets: Pension Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 371,780 $ 371,780 $ — $ — Common and Collective Trust and Pooled Funds: Bonds Liability Driven Investment 19,702,561 — 19,702,561 — Equities Domestic Large Cap Growth 4,069,197 — 4,069,197 — Domestic Large Cap Value 4,055,518 — 4,055,518 — Domestic Small/Mid Cap Core 2,032,084 — 2,032,084 — Foreign Large Cap Value 1,783,990 — 1,783,990 — Mutual Funds: Equities Foreign Large Cap Growth 1,227,981 1,227,981 — — Foreign Large Cap Value 343,560 343,560 — — Total $ 33,586,671 $ 1,943,321 $ 31,643,350 $ — Pension Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 282,478 $ 282,478 $ — $ — Common and Collective Trust and Pooled Funds: Bonds Liability Driven Investment 16,504,956 — 16,504,956 — Equities Domestic Large Cap Growth 3,449,486 — 3,449,486 — Domestic Large Cap Value 3,381,285 — 3,381,285 — Domestic Small/Mid Cap Core 1,685,352 — 1,685,352 — Foreign Large Cap Value 1,527,796 — 1,527,796 — Mutual Funds: Equities Foreign Large Cap Growth 1,060,383 1,060,383 — — Foreign Large Cap Value 292,961 292,961 — — Total $ 28,184,697 $ 1,635,822 $ 26,548,875 $ — Postretirement Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 66,860 $ 66,860 $ — $ — Mutual Funds Bonds Domestic Fixed Income 5,987,248 5,987,248 — — Foreign Fixed Income 611,196 611,196 — — Equities Domestic Large Cap Growth 1,909,836 1,909,836 — — Domestic Large Cap Value 1,931,615 1,931,615 — — Domestic Small/Mid Cap Growth 210,251 210,251 — — Domestic Small/Mid Cap Value 214,034 214,034 — — Domestic Small/Mid Cap Core 464,526 464,526 — — Foreign Large Cap Growth 489,286 489,286 — — Foreign Large Cap Value 1,098,992 1,098,992 — — Foreign Large Cap Core 70,782 70,782 — — Other 27,984 — 27,984 — Total $ 13,082,610 $ 13,054,626 $ 27,984 $ — Postretirement Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 96,117 $ 96,117 $ — $ — Mutual Funds Bonds Domestic Fixed Income 5,859,588 5,859,588 — — Foreign Fixed Income 609,722 609,722 — — Equities Domestic Large Cap Growth 1,926,076 1,926,076 — — Domestic Large Cap Value 1,874,643 1,874,643 — — Domestic Small/Mid Cap Growth 214,180 214,180 — — Domestic Small/Mid Cap Value 210,891 210,891 — — Domestic Small/Mid Cap Core 459,363 459,363 — — Foreign Large Cap Growth 525,720 525,720 — — Foreign Large Cap Value 1,090,851 1,090,851 — — Foreign Large Cap Core 28,786 28,786 — — Other 29,020 — 29,020 — Total $ 12,924,957 $ 12,895,937 $ 29,020 $ — Each mutual fund has been categorized based on its primary investment strategy. Management has re-evaluated the fair value classifications for the investments in the pension and postretirement plans. The investments in mutual funds fit more closely to the Level 1 definition and have been reassigned accordingly. Prior year balances in mutual funds have been reclassified from Level 2 to Level 1 to place them on a basis consistent with the current year. All other investments remain at Level 2. The Company expects to contribute $800,000 to its pension plan and $400,000 to its postretirement plan in fiscal 2020. The following table reflects expected future benefit payments: Fiscal year ending September 30 Pension Postretirement 2020 $ 995,393 $ 633,473 2021 1,050,564 685,678 2022 1,134,262 732,085 2023 1,222,806 790,242 2024 1,316,860 794,515 2025-2029 7,825,994 4,039,665 The Company sponsors a 401k Plan covering all employees who elect to participate. Employees may contribute from 1% to 50% of their annual compensation to the 401k Plan, limited to a maximum annual amount as set periodically by the IRS. The Company matches 100% of the participant’s first 4% of contributions and 50% on the next 2% of contributions. Company matching contributions were $348,369 , $338,066 and $361,702 for 2019 , 2018 and 2017 , respectively. The Company also provided for $21,829 and $9,637 in discretionary contributions in 2019 and 2018 for those employees hired on or after January 1, 2017. |
Common Stock Options
Common Stock Options | 12 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Common Stock Options | COMMON STOCK OPTIONS The KESOP provides for the issuance of common stock options to officers and certain other full-time salaried employees to acquire shares of the Company’s common stock. As of September 30, 2019 , the number of shares available for future grants was 36,000 . FASB ASC No. 718 - Compensation - Stock Compensation requires that compensation expense be recognized for the issuance of equity instruments to employees. During the fiscal year ended 2017 , the Board approved stock option grants to certain officers. As required by the KESOP, each option's exercise price per share equaled the fair value of the Company's common stock on the grant date. Pursuant to the plan, the options vest over a six -month period and are exercisable over a ten -year period from the date of issuance. No options were granted in fiscal 2019 or 2018. As the Company's stock options are not traded on the open market, the fair value of each grant is estimated on the date of grant using the Black-Scholes option pricing model including the following assumptions: Years Ended September 30, 2019 2018 2017 Expected volatility N/A N/A 26.09% Expected dividends N/A N/A 3.81% Expected exercise term (years) N/A N/A 7.00 Risk-free interest rate N/A N/A 2.20% The underlying methods regarding each assumption are as follows: Expected volatility is based on the historical volatilities of the daily closing price of the Company's common stock. Expected dividend rate is based on historical dividend payout trends. Expected exercise term is based on the average time historical option grants were outstanding before being exercised. Risk-free interest rate is based on the 7 -year Treasury rate on the date of option grant. Forfeitures are recognized when they occur. Stock option transactions under the Company's plans for the years ended September 30, 2019 , 2018 and 2017 are summarized below. Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Terms (years) Aggregate Intrinsic Value 1 Options outstanding, September 30, 2016 87,300 $ 13.50 7.8 $ 200,211 Options granted 25,500 16.37 Options exercised (11,225 ) 12.67 Options expired — — Options forfeited — — Options outstanding, September 30, 2017 101,575 14.31 7.6 1,448,338 Options granted — — Options exercised (1,575 ) 12.66 Options expired — — Options forfeited — — Options outstanding, September 30, 2018 100,000 14.34 6.6 1,237,286 Options granted — — Options exercised (31,508 ) 13.08 Options expired — — Options forfeited — — Options outstanding, September 30, 2019 68,492 $ 14.91 6.2 $ 981,170 Vested and exercisable at September 30, 2019 68,492 $ 14.91 6.2 $ 981,170 1 Aggregate intrinsic value includes only those options where the exercise price is below the market price. Years Ended September 30, 2019 2018 2017 Weighted-average grant date option fair value $ — $ — $ 2.89 Stock option expense — — 73,780 Intrinsic value of options exercised 456,002 15,256 99,929 Proceeds from exercise of stock options 412,179 19,945 142,241 OTHER STOCK PLANS Dividend Reinvestment and Stock Purchase Plan The Company offers a DRIP Plan to shareholders of record for the reinvestment of dividends and the purchase of up to $40,000 per year in additional shares of common stock of the Company. Under the DRIP, the Company issued 26,716 , 31,744 and 36,446 shares in 2019 , 2018 and 2017 , respectively. As of September 30, 2019 , the Company had 390,513 shares of stock available for issuance under the DRIP. Restricted Stock Plan for Outside Directors The Board of Directors of the Company implemented the RSPD in 1997. Under the RSPD, each director may elect annually to have up to 100% of his or her fees paid in shares of common stock ("Director Restricted Stock"); however, a minimum of 40% of the monthly retainer fee must be paid to each non-employee director of Resources in shares of Director Restricted Stock until such time as the director has accumulated at least 10,000 shares. The number of shares of Director Restricted Stock awarded each month is determined based on the closing sales price of Resources' common stock on the NASDAQ Global Market on the first business day of the month. The Director Restricted Stock issued under the Plan vests only in the case of a participant's death, disability, retirement, or in the event of a change in control of Resources. The Director Restricted Stock may not be sold, transferred, assigned or pledged by the participant until the shares have vested under the terms of the Plan. The shares of Director Restricted Stock will be forfeited to Resources by a participant's voluntary resignation during his or her term on the Board or removal for cause as a director. The Company assumes all directors will complete their term and there will be no forfeiture of the Director Restricted Stock. Since the inception of the RSPD, no director has forfeited any shares of Director Restricted Stock. The Company recognizes as compensation the market value of the Director Restricted Stock in the period it is issued. The following table reflects the director compensation activity pursuant to the Plan: 2019 2018 2017 Shares Weighted-Average Fair Value on Date of Grant Shares Weighted-Average Fair Value on Date of Grant Shares Weighted-Average Fair Value on Date of Grant Beginning of year balance 98,302 $ 11.51 111,893 $ 10.56 107,023 $ 10.11 Granted 6,378 27.93 6,692 26.57 4,870 16.77 Vested — — (20,283 ) 11.20 — — Forfeited — — — — — — End of year balance 104,680 $ 12.51 98,302 $ 11.51 111,893 $ 10.56 The fair market value of the Director Restricted Stock included in compensation during fiscal 2019 , 2018 and 2017 was $178,100 , $177,800 and $99,400 . No Director Restricted Stock was forfeited during fiscal 2019 , 2018 or 2017 . As of September 30, 2019 , the Company had 65,208 shares available for issuance under the RSPD. RGC Resources, Inc. Restricted Stock Plan The Board of Directors of the Company implemented the RSPO in 2017 following approval by the shareholders at the Company's annual meeting held on February 6, 2017. Under the RSPO, the Compensation Committee of the Board of Directors may grant shares of common stock ("Officer Restricted Stock") that vest over time to key employees and officers for the purpose of attracting and retaining those individuals essential to the operation and growth of the Company. The RSPO provides for certain restrictions and non-transferability requirements until minimum levels of ownership are obtained. Such restrictions may continue beyond the vesting period. The Company assumes all officers will complete their requirements and there will be no forfeiture of the Officer Restricted Stock. The following table reflects the officer compensation activity pursuant to the RSPO: 2019 2018 Shares Weighted-Average Fair Value on Date of Grant Shares Weighted-Average Fair Value on Date of Grant Beginning of year balance 6,734 $ 26.33 — $ — Granted 10,227 29.80 10,101 26.33 Vested (6,776 ) 28.08 (3,367 ) 26.33 Forfeited — — — — End of year balance 10,185 $ 28.65 6,734 $ 26.33 The fair market value of the Officer Restricted Stock included as compensation during fiscal 2019 and 2018 was $282,365 and $188,388 . As of September 30, 2019 , the Company had 429,151 shares available for issuance under the RSPO. Stock Bonus Plan Shares from the Stock Bonus Plan may be issued to certain employees and management personnel in recognition of their performance and service. Under the Stock Bonus Plan, the Company issued no shares in 2019 and 2018 and 1,628 shares valued at $30,154 in 2017 . As of September 30, 2019 the Company had 4,785 shares of stock available for issuance under the Stock Bonus Plan. The Stock Bonus Plan is currently inactive and has been currently replaced by the Restricted Stock Plan. |
Other Stock Plans
Other Stock Plans | 12 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Other Stock Plans | COMMON STOCK OPTIONS The KESOP provides for the issuance of common stock options to officers and certain other full-time salaried employees to acquire shares of the Company’s common stock. As of September 30, 2019 , the number of shares available for future grants was 36,000 . FASB ASC No. 718 - Compensation - Stock Compensation requires that compensation expense be recognized for the issuance of equity instruments to employees. During the fiscal year ended 2017 , the Board approved stock option grants to certain officers. As required by the KESOP, each option's exercise price per share equaled the fair value of the Company's common stock on the grant date. Pursuant to the plan, the options vest over a six -month period and are exercisable over a ten -year period from the date of issuance. No options were granted in fiscal 2019 or 2018. As the Company's stock options are not traded on the open market, the fair value of each grant is estimated on the date of grant using the Black-Scholes option pricing model including the following assumptions: Years Ended September 30, 2019 2018 2017 Expected volatility N/A N/A 26.09% Expected dividends N/A N/A 3.81% Expected exercise term (years) N/A N/A 7.00 Risk-free interest rate N/A N/A 2.20% The underlying methods regarding each assumption are as follows: Expected volatility is based on the historical volatilities of the daily closing price of the Company's common stock. Expected dividend rate is based on historical dividend payout trends. Expected exercise term is based on the average time historical option grants were outstanding before being exercised. Risk-free interest rate is based on the 7 -year Treasury rate on the date of option grant. Forfeitures are recognized when they occur. Stock option transactions under the Company's plans for the years ended September 30, 2019 , 2018 and 2017 are summarized below. Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Terms (years) Aggregate Intrinsic Value 1 Options outstanding, September 30, 2016 87,300 $ 13.50 7.8 $ 200,211 Options granted 25,500 16.37 Options exercised (11,225 ) 12.67 Options expired — — Options forfeited — — Options outstanding, September 30, 2017 101,575 14.31 7.6 1,448,338 Options granted — — Options exercised (1,575 ) 12.66 Options expired — — Options forfeited — — Options outstanding, September 30, 2018 100,000 14.34 6.6 1,237,286 Options granted — — Options exercised (31,508 ) 13.08 Options expired — — Options forfeited — — Options outstanding, September 30, 2019 68,492 $ 14.91 6.2 $ 981,170 Vested and exercisable at September 30, 2019 68,492 $ 14.91 6.2 $ 981,170 1 Aggregate intrinsic value includes only those options where the exercise price is below the market price. Years Ended September 30, 2019 2018 2017 Weighted-average grant date option fair value $ — $ — $ 2.89 Stock option expense — — 73,780 Intrinsic value of options exercised 456,002 15,256 99,929 Proceeds from exercise of stock options 412,179 19,945 142,241 OTHER STOCK PLANS Dividend Reinvestment and Stock Purchase Plan The Company offers a DRIP Plan to shareholders of record for the reinvestment of dividends and the purchase of up to $40,000 per year in additional shares of common stock of the Company. Under the DRIP, the Company issued 26,716 , 31,744 and 36,446 shares in 2019 , 2018 and 2017 , respectively. As of September 30, 2019 , the Company had 390,513 shares of stock available for issuance under the DRIP. Restricted Stock Plan for Outside Directors The Board of Directors of the Company implemented the RSPD in 1997. Under the RSPD, each director may elect annually to have up to 100% of his or her fees paid in shares of common stock ("Director Restricted Stock"); however, a minimum of 40% of the monthly retainer fee must be paid to each non-employee director of Resources in shares of Director Restricted Stock until such time as the director has accumulated at least 10,000 shares. The number of shares of Director Restricted Stock awarded each month is determined based on the closing sales price of Resources' common stock on the NASDAQ Global Market on the first business day of the month. The Director Restricted Stock issued under the Plan vests only in the case of a participant's death, disability, retirement, or in the event of a change in control of Resources. The Director Restricted Stock may not be sold, transferred, assigned or pledged by the participant until the shares have vested under the terms of the Plan. The shares of Director Restricted Stock will be forfeited to Resources by a participant's voluntary resignation during his or her term on the Board or removal for cause as a director. The Company assumes all directors will complete their term and there will be no forfeiture of the Director Restricted Stock. Since the inception of the RSPD, no director has forfeited any shares of Director Restricted Stock. The Company recognizes as compensation the market value of the Director Restricted Stock in the period it is issued. The following table reflects the director compensation activity pursuant to the Plan: 2019 2018 2017 Shares Weighted-Average Fair Value on Date of Grant Shares Weighted-Average Fair Value on Date of Grant Shares Weighted-Average Fair Value on Date of Grant Beginning of year balance 98,302 $ 11.51 111,893 $ 10.56 107,023 $ 10.11 Granted 6,378 27.93 6,692 26.57 4,870 16.77 Vested — — (20,283 ) 11.20 — — Forfeited — — — — — — End of year balance 104,680 $ 12.51 98,302 $ 11.51 111,893 $ 10.56 The fair market value of the Director Restricted Stock included in compensation during fiscal 2019 , 2018 and 2017 was $178,100 , $177,800 and $99,400 . No Director Restricted Stock was forfeited during fiscal 2019 , 2018 or 2017 . As of September 30, 2019 , the Company had 65,208 shares available for issuance under the RSPD. RGC Resources, Inc. Restricted Stock Plan The Board of Directors of the Company implemented the RSPO in 2017 following approval by the shareholders at the Company's annual meeting held on February 6, 2017. Under the RSPO, the Compensation Committee of the Board of Directors may grant shares of common stock ("Officer Restricted Stock") that vest over time to key employees and officers for the purpose of attracting and retaining those individuals essential to the operation and growth of the Company. The RSPO provides for certain restrictions and non-transferability requirements until minimum levels of ownership are obtained. Such restrictions may continue beyond the vesting period. The Company assumes all officers will complete their requirements and there will be no forfeiture of the Officer Restricted Stock. The following table reflects the officer compensation activity pursuant to the RSPO: 2019 2018 Shares Weighted-Average Fair Value on Date of Grant Shares Weighted-Average Fair Value on Date of Grant Beginning of year balance 6,734 $ 26.33 — $ — Granted 10,227 29.80 10,101 26.33 Vested (6,776 ) 28.08 (3,367 ) 26.33 Forfeited — — — — End of year balance 10,185 $ 28.65 6,734 $ 26.33 The fair market value of the Officer Restricted Stock included as compensation during fiscal 2019 and 2018 was $282,365 and $188,388 . As of September 30, 2019 , the Company had 429,151 shares available for issuance under the RSPO. Stock Bonus Plan Shares from the Stock Bonus Plan may be issued to certain employees and management personnel in recognition of their performance and service. Under the Stock Bonus Plan, the Company issued no shares in 2019 and 2018 and 1,628 shares valued at $30,154 in 2017 . As of September 30, 2019 the Company had 4,785 shares of stock available for issuance under the Stock Bonus Plan. The Stock Bonus Plan is currently inactive and has been currently replaced by the Restricted Stock Plan. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Long-Term Contracts Due to the nature of the natural gas distribution business, Roanoke Gas enters into agreements with both suppliers and pipelines to contract for natural gas commodity purchases, storage capacity and pipeline delivery capacity. Roanoke Gas obtains most of its regulated natural gas supply through an asset management contract with a third party asset manager. Roanoke Gas utilizes an asset manager to optimize the use of its transportation, storage rights, and gas supply inventories which helps to ensure a secure and reliable source of natural gas. Under the current asset management contract, Roanoke Gas has designated the asset manager to act as agent for its storage capacity and all gas balances in storage. Roanoke Gas retains ownership of gas in storage. Under provisions of this contract, Roanoke Gas is obligated to purchase its winter storage requirements from the asset manager during the spring and summer injection periods at market price. The table below details the volumetric obligations as of September 30, 2019 for the remainder of the contract period. The current asset management contract was renewed in April 2018 for a three year period which will expire in March 2021. The new contract was renewed at essentially the same terms and conditions as the prior agreement. Year Natural Gas Contracts 2019-2020 2,071,061 2020-2021 295,866 Total 2,366,927 Roanoke Gas also has contracts for pipeline and storage capacity which extend for various periods. These capacity costs and related fees are valued at tariff rates in place as of September 30, 2019 . These rates may increase or decrease in the future based upon rate filings and rate orders granting a rate change to the pipeline or storage operator. Roanoke Gas expended approximately $30,317,000 , $31,137,000 and $28,496,000 under the asset management, pipeline and storage contracts in fiscal years 2019 , 2018 and 2017 , respectively. The table below details the pipeline and storage capacity obligations as of September 30, 2019 for the remainder of the contract period. Year Pipeline and 2019-2020 $ 11,532,130 2020-2021 11,532,130 2021-2022 10,858,922 2022-2023 7,351,348 2023-2024 5,593,093 Thereafter 3,916,965 Total $ 50,784,588 Roanoke Gas maintains franchise agreements granted by the local cities and towns served by the Company. Roanoke Gas renewed it's franchise agreements with the City of Roanoke, the City of Salem and the Town of Vinton in 2016 for 20 -year terms to expire in December 2035. Per these agreements, franchise fees increase at a rate of 3% annually throughout the term of the agreements. As of September 30, 2019 , $2,405,109 in future obligations remain under the franchise agreements. Other Contracts The Company maintains other agreements in the ordinary course of business covering various lease, maintenance, equipment and service contracts. These agreements currently extend through December 2031 and are not material to the Company. Legal From time to time, the Company may become involved in litigation or claims arising out of its operations in the normal course of business. At the current time, the Company is not known to be a party to any legal proceedings that would be expected to have a materially adverse impact on its financial position, results of operations or cash flows. Environmental Matters Both Roanoke Gas and a previously owned gas subsidiary operated MGPs as a source of fuel for lighting and heating until the early 1950’s. A by-product of operating MGPs was coal tar, and the potential exists for tar waste contaminants at the former plant sites. While the Company does not currently recognize any commitments or contingencies related to environmental costs at either site, should the Company ever be required to remediate either site, it will pursue all prudent and reasonable means to recover any related costs, including the use of insurance claims and regulatory approval for rate case recognition of expenses associated with any work required. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The following table summarizes the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and the fair value measurements by level within the fair value hierarchy as defined in Note 1 as of September 30, 2019 and 2018 , respectively: Fair Value Measurements - September 30, 2019 Fair Value Quoted Prices in Significant Other Significant Liabilities: Natural gas purchases $ 397,757 $ — $ 397,757 $ — Interest rate swaps 894,341 — 894,341 — Total $ 1,292,098 $ — $ 1,292,098 $ — Fair Value Measurements - September 30, 2018 Fair Value Quoted Prices in Significant Other Significant Assets: Interest rate swap $ 310,563 $ — $ 310,563 $ — Total $ 310,563 $ — $ 310,563 $ — Liabilities: Natural gas purchases $ 693,495 $ — $ 693,495 $ — Total $ 693,495 $ — $ 693,495 $ — Under the asset management contract, a timing difference can exist between the payment for natural gas purchases and the actual receipt of such purchases. Payments are made based on a predetermined monthly volume with the price based on the weighted average first of the month index prices corresponding to the month of the scheduled payment. At September 30, 2019 and 2018 , the Company had recorded in accounts payable the estimated fair value of the liability determined on the corresponding first of month index prices for which the liability was expected to be settled. The Company’s non-financial assets and liabilities that are measured at fair value on a nonrecurring basis consist of its asset retirement obligations. The asset retirement obligations are measured at fair value at initial recognition based on expected future cash flows to settle the obligation. The carrying value of cash and cash equivalents, accounts receivable, borrowings under line-of-credit, accounts payable (with the exception of the timing difference under the asset management contract), customer credit balances and customer deposits is a reasonable estimate of fair value due to the shorter-term nature of these financial instruments. The following table summarizes the fair value of the Company’s financial assets and liabilities that are not adjusted to fair value in the financial statements as of September 30, 2019 and 2018 . Fair Value Measurements - September 30, 2019 Carrying Quoted Prices in Significant Other Significant Liabilities: Notes payable $ 95,512,200 $ — $ — $ 100,900,952 Total $ 95,512,200 $ — $ — $ 100,900,952 Fair Value Measurements - September 30, 2018 Carrying Quoted Prices in Significant Other Significant Liabilities: Notes payable $ 63,243,200 $ — $ — $ 62,435,237 Total $ 63,243,200 $ — $ — $ 62,435,237 The fair value of long-term debt is estimated by discounting the future cash flows of the fixed rate debt based on the underlying 20 -year Treasury rate or other Treasury instrument with a corresponding maturity period and estimated credit spread extrapolated based on market conditions since the issuance of the debt. The decline in interest rates during fiscal 2019 resulted in an increase in the fair value of the Company's outstanding debt. FASB ASC 825 – Financial Instruments requires disclosures regarding concentrations of credit risk from financial instruments. Cash equivalents are investments in high-grade, short-term securities (original maturity less than three months), placed with financially sound institutions. Accounts receivable are from a diverse group of customers including individuals and small and large companies in various industries. The Company maintains certain credit standards with its customers and requires a customer deposit if such evaluation warrants. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Sep. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Quarterly financial data for the years ended September 30, 2019 and 2018 is summarized as follows: 2019 First Second Third Fourth Operating revenues $ 21,216,747 $ 25,274,959 $ 11,682,950 $ 9,851,869 Operating income $ 3,264,222 $ 6,203,483 $ 1,637,057 $ 490,702 Net income $ 2,434,162 $ 4,670,090 $ 1,138,555 $ 455,605 Earnings per share of common stock: Basic $ 0.30 $ 0.58 $ 0.14 $ 0.06 Diluted $ 0.30 $ 0.58 $ 0.14 $ 0.06 2018 First Second Third Fourth Operating revenues $ 18,756,051 $ 24,917,973 $ 11,889,570 $ 9,971,142 Operating income $ 3,644,491 $ 5,276,085 $ 1,835,590 $ 714,341 Net income $ 2,059,462 $ 3,465,929 $ 1,087,355 $ 684,459 Earnings per share of common stock: Basic $ 0.28 $ 0.47 $ 0.14 $ 0.09 Diluted $ 0.28 $ 0.47 $ 0.14 $ 0.09 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On November 8, 2019, the Company's Board of Directors approved a pro rata increase in its participation in MVP which will result in an estimated additional $1.6 million investment above the current projected levels. As a result of this additional investment, Midstream's equity interest will increase from 1.00% to approximately 1.03% by the time the pipeline is placed in service. On November 19, 2019, the Company received the Hearing Examiner's report on Roanoke Gas' non-gas base rate application. The estimated rate refund included in the consolidated financial statements was consistent with the findings reflected in the hearing examiner's report. On November 26, 2019, the hearing examiner issued a revised report that currently would indicate a more favorable result to the Company. However, the final order is pending from the SCC, which may result in a different outcome than recommended in the hearing examiner's revised report. Accordingly, the final non-gas rate award and corresponding rate refund may be more or less than management's estimate reflected in the September 30, 2019 consolidated financial statements. The Company has evaluated subsequent events through the date the financial statements were issued. There were no other items not otherwise disclosed which would have materially impacted the Company’s consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation —RGC Resources, Inc. is an energy services company primarily engaged in the sale and distribution of natural gas. The consolidated financial statements include the accounts of Resources and its wholly owned subsidiaries: Roanoke Gas, Diversified Energy and Midstream. Roanoke Gas is a natural gas utility, which distributes and sells natural gas to approximately 60,700 residential, commercial and industrial customers within its service areas in Roanoke, Virginia and the surrounding localities. The Company’s business is seasonal in nature as a majority of natural gas sales are for space heating during the winter season. Roanoke Gas is regulated by the SCC. Midstream is a wholly-owned subsidiary created primarily to invest in the Mountain Valley Pipeline project. Diversified Energy is inactive. The Company follows accounting and reporting standards established by the FASB and the SEC. |
Rate Regulated Basis of Accounting | Rate Regulated Basis of Accounting —The Company’s regulated operations follow the accounting and reporting requirements of FASB ASC No. 980, Regulated Operations . The economic effects of regulation can result in a regulated company deferring costs that have been or are expected to be recovered from customers in a period different from the period in which the costs would be charged to expense by an unregulated enterprise. When this situation occurs, costs are deferred as assets in the consolidated balance sheet (regulatory assets) and recorded as expenses when such amounts are reflected in rates. Additionally, regulators can impose liabilities upon a regulated company for amounts previously collected from customers and for current collection in rates of costs that are expected to be incurred in the future (regulatory liabilities). In the event the provisions of FASB ASC No. 980 no longer apply to any or all regulatory assets or liabilities, the Company would write off such amounts and include them in the consolidated statements of income and comprehensive income in the period which FASB ASC No. 980 no longer applied. |
Utility Plant and Depreciation | Utility Plant and Depreciation —Utility plant is stated at original cost and includes direct labor and materials, contractor costs, and all allocable overhead charges. The Company applies the group method of accounting, where the costs of like assets are aggregated and depreciated by applying a rate based on the average expected useful life of the assets. In accordance with Company policy, expenditures for depreciable assets with a life greater than one year are capitalized, along with any upgrades or improvements to existing assets, when they significantly improve or extend the original expected useful life of an asset. Expenditures for maintenance, repairs, and minor renewals and betterments are expensed as incurred. The original cost of depreciable property retired is removed from utility plant and charged to accumulated depreciation. The cost of asset removals, less salvage, is charged to “regulatory cost of retirement obligations” or “asset retirement obligations” as explained under Asset Retirement Obligations below. Utility plant is composed of the following major classes of assets: September 30 2019 2018 Distribution and transmission $ 209,171,339 $ 196,778,546 LNG storage 13,417,077 13,413,175 General and miscellaneous 15,198,548 14,662,599 Total utility plant in service $ 237,786,964 $ 224,854,320 Provisions for depreciation are computed principally at composite straight-line rates over periods ranging from 5 to 76 years . Rates are determined by depreciation studies which are required to be performed at least every 5 years on the regulated utility assets of Roanoke Gas. In September 2019, the SCC staff approved the Company's most recent depreciation study. The SCC directed the Company to implement the new rates retroactive to October 1, 2018. As a result of the new rates, the composite weighted-average depreciation rate was 3.31% for the year ended September 30, 2019 as compared to 3.32% and 3.29% for fiscal years ended September 30, 2018 and 2017, respectively. The implementation of the new depreciation rates reduced total depreciation expense by $32,570 for fiscal 2019 and increased net income by $24,187 or less than $0.01 per share. The composite rates are composed of two components, one based on average service life and one based on cost of retirement. As a result, the Company accrues the estimated cost of retirement of long-lived assets through depreciation expense. These retirement costs are not a legal obligation but rather the result of cost-based regulation and are accounted for under the provisions of FASB ASC No. 980. Such amounts are classified as a regulatory liability. The Company reviews long-lived assets and certain identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These reviews have not identified any impairments which would have a material effect on the results of operations or financial condition. |
Asset Retirement Obligations | Asset Retirement Obligations —FASB ASC No. 410, Asset Retirement and Environmental Obligations , requires entities to record the fair value of a liability for an ARO when there exists a legal obligation for the retirement of the asset. When the liability is initially recorded, the entity capitalizes the cost, thereby increasing the carrying amount of the underlying asset. In subsequent periods, the liability is accreted, and the capitalized cost is depreciated over the useful life of the underlying asset. The Company has recorded AROs for its future legal obligations related to purging and capping its distribution mains and services upon retirement, although the timing of such retirements is uncertain. The Company’s composite depreciation rates include a component to provide for the cost of retirement of assets. As a result, the Company accrues the estimated cost of retirement of its utility plant through depreciation expense and creates a corresponding regulatory liability. The costs of retirement considered in the development of the depreciation component include those costs associated with the legal liability. Therefore, the ARO is reclassified from the regulatory cost of retirement obligation. If the legal obligations were to exceed the regulatory liability provided for in the depreciation rates, the Company would establish a regulatory asset for such difference with the anticipation of future recovery through rates charged to customers. |
Cash, Cash Equivalents and Short-Term Investments | Cash, Cash Equivalents and Short-Term Investments —From time to time, the Company will have balances on deposit at banks in excess of the amount insured by the FDIC. The Company has not experienced any losses on these accounts and does not consider these amounts to be at credit risk. As of September 30, 2019 , the Company did not have any bank deposits in excess of the FDIC insurance limits. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. |
Customer Receivables and Allowance for Doubtful Accounts | Customer Receivables and Allowance for Doubtful Accounts —Accounts receivable include amounts billed to customers for natural gas sales and related services and gas sales occurring subsequent to normal billing cycles but before the end of the period. The Company provides an estimate for losses on these receivables by utilizing historical information, current account balances, account aging and current economic conditions. Customer accounts are charged off annually when deemed uncollectible or when turned over to a collection agency for action. |
Financing Receivables | Financing Receivables —Financing receivables represent a contractual right to receive money either on demand, or on fixed or determinable dates, and are recognized as assets on the entity’s balance sheet. Trade receivables, resulting from the sale of natural gas and other services to customers, are the Company's primary type of financing receivables. These receivables are short-term in nature with a provision for uncollectible balances included in the consolidated financial statements. |
Inventories | Inventories —Natural gas in storage and materials and supplies inventories are recorded at average cost. Natural gas storage injections are priced at the purchase cost at the time of injection and storage withdrawals are priced at the weighted average cost of gas in storage. Materials and supplies are removed from inventory at average cost. |
Unbilled Revenues | Unbilled Revenues —The Company bills its natural gas customers on a monthly cycle; however, the billing cycle period for most customers does not coincide with the accounting periods used for financial reporting. As the Company recognizes revenue when gas is delivered, an accrual is made to estimate revenues for natural gas delivered to customers but not billed during the accounting period. |
Income Taxes | Income Taxes —Income taxes are accounted for using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the years in which those temporary differences are expected to be recovered or settled. A valuation allowance against deferred tax assets is provided if it is more likely than not the deferred tax asset will not be realized. The Company and its subsidiaries file state and federal consolidated income tax returns. |
Debt Expenses | Debt Expenses —Debt issuance expenses are deferred and amortized over the lives of the debt instruments. The unamortized balances are offset against the carrying value of long-term debt. |
Over/Under-Recovery of Natural Gas Costs | Over/Under-Recovery of Natural Gas Costs —Pursuant to the provisions of the Company’s PGA clause, the SCC provides the Company with a method of passing along to its customers increases or decreases in natural gas costs incurred by its regulated operations, including gains and losses on natural gas derivative hedging instruments. On at least a quarterly basis, the Company files a PGA rate adjustment request with the SCC to increase or decrease the gas cost component of its rates, based on projected price and activity. Once administrative approval is received, the Company adjusts the gas cost component of its rates to reflect the approved amount. As actual costs will differ from the projections used in establishing the PGA rate, the Company may either over-recover or under-recover its actual gas costs during the period. Any difference between actual costs incurred and costs recovered through the application of the PGA is recorded as a regulatory asset or liability. At the end of the deferral period, the balance of the net deferred charge or credit is amortized over an ensuing 12 -month period as amounts are reflected in customer bill. |
Fair Value | Fair Value —Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company determines fair value based on the following fair value hierarchy which prioritizes each input to the valuation methods into one of the following three broad levels: • Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 – Inputs other than quoted prices in Level 1 that are either for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 – Unobservable inputs for the asset or liability where there is little, if any, market activity which require the Company to develop its own assumptions. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). All fair value disclosures are categorized within one of the three categories in the hierarchy. See fair value disclosures below and in Notes 9 and 13. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Excise and Sales Taxes | Excise and Sales Taxes —Certain excise and sales taxes imposed by the state and local governments in the Company’s service territory are collected by the Company from its customers. These taxes are accounted for on a net basis and therefore are not included as revenues in the Company’s consolidated income statements. |
Earnings Per Share | Earnings Per Share —Basic EPS and diluted EPS are calculated by dividing net income by the weighted-average common shares outstanding during the period and the weighted-average common shares outstanding during the period plus dilutive potential common shares, respectively. Dilutive potential common shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all options are used to repurchase common stock at market value. The amount of shares remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities. |
Business and Credit Concentrations | Business and Credit Concentrations — The primary business of the Company is the distribution of natural gas to residential, commercial and industrial customers in its service territories. No sales to individual customers accounted for more than 5% of total revenue in any period or amounted to more than 5% of total accounts receivable. Roanoke Gas currently holds the only franchises and CPCNs to distribute natural gas in its service area. These franchises are effective through January 1, 2036 . The Company's current CPCNs in Virginia are exclusive and are intended for perpetual duration. Roanoke Gas is served directly by two primary pipelines that provide all of the natural gas supplied to the Company’s customers. Depending upon weather conditions and the level of customer demand, failure of one or both of these transmission pipelines could have a major adverse impact on the Company. |
Derivative and Hedging Activities | Derivative and Hedging Activities —FASB ASC No. 815, Derivatives and Hedging , requires the recognition of all derivative instruments as assets or liabilities in the Company’s consolidated balance sheet and measurement of those instruments at fair value. The Company’s hedging and derivatives policy allows management to enter into derivatives for the purpose of managing the commodity and financial market risks of its business operations. The Company’s hedging and derivatives policy specifically prohibits the use of derivatives for speculative purposes. The key market risks that the Company may hedge against include the price of natural gas and the cost of borrowed funds. The Company historically has entered into collars, swaps and caps for the purpose of hedging the price of natural gas in order to provide price stability during the winter months. The fair value of these instruments is recorded in the consolidated balance sheets with the offsetting entry to either under- or over-recovery of gas costs. Net income and other comprehensive income are not affected by the change in market value as any cost incurred or benefit received from these instruments is recoverable or refunded through the PGA as the SCC allows for full recovery of prudent costs associated with natural gas purchases. |
Reclassification | Reclassifications to certain line items of the prior years' consolidated balance sheet and consolidated income statements were made to place them on a comparable basis with the current year. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards | Recently Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) that affects any entity that enters into contracts with customers for the transfer of goods or services or transfer of non-financial assets. This guidance supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when, or as, the entity satisfies the performance obligation. Subsequently issued ASUs provided additional guidance to assist in the implementation of the new revenue standard. The Company adopted ASU 2014-09 and all amendments beginning in fiscal 2019. Consistent with the modified retrospective adoption method, prior reporting period results remain unchanged and reported in accordance with ASC 605. As it relates to the Company’s contracts to deliver natural gas to customers, the guidance in ASC 606 is consistent with the guidance in ASC 605; therefore, the modified retrospective approach resulted in no cumulative catch-up to retained earnings. Furthermore, there was no significant impact to revenues recognized and no significant changes to the Company’s related business processes, systems or internal controls over financial reporting because of the new guidance. See Note 2 for additional information. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits . The primary objective of this guidance is to improve the financial statement presentation of net periodic pension and postretirement benefit costs; however, it also changes which cost components are eligible for capitalization. The amendments in the ASU require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and, if a subtotal for income from operations is presented, outside of income from operations. In addition, the ASU allows only the service cost component of periodic benefit cost to be eligible for capitalization when applicable. This change to capitalization eligibility differs from the treatment currently applied by the Company and from allowed regulatory accounting. The Company adopted the new guidance in fiscal 2019 and has reclassified the other components of net periodic benefit costs for prior years to other income (deductions) in the non-operating section of the consolidated income statements. The impact to the income statement for the adoption of this ASU is reflected under the Financial Statement Reclassifications section above. The Company also implemented the change in capitalization costs on a prospective basis. This change did not have a significant impact on the Company's consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU enhances the reporting model for financial instruments to provide users of the financial statements with more useful information through several provisions, including the following: (1) requires equity investments, excluding investments accounted for under the equity method, be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values, (3) eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (5) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. The Company adopted the ASU in fiscal 2019. The new guidance did not have a material effect on its financial position, results of operations or cash flows. See Note 13 for more information on fair value. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU provides the option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effects of the change in the U.S. federal corporate income tax rate, per the TCJA, is recorded. The new guidance is effective for the Company for the annual reporting period ending September 30, 2020 and interim periods within that annual period. Early adoption is permitted. Management completed its evaluation and adopted the new guidance in the fourth quarter of fiscal 2018. As a result, the Company reclassified $234,337 in stranded tax expense out of AOCI to retained earnings related to pension and postretirement plans for the unregulated operations of Resources. In addition, the Company also reclassified $20,285 out of AOCI to the regulatory liability for the stranded tax expense related to the interest rate swap. See the Other Comprehensive Income section above and Note 3 below for more information. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases. The ASU leaves the accounting for leases mostly unchanged for lessors, with the exception of targeted improvements for consistency; however, the new guidance requires lessees to recognize assets and liabilities for leases with terms of more than 12 months. The ASU also revises the definition of a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Consistent with current GAAP, the presentation and cash flows arising from a lease by a lessee will primarily depend on its classification as a finance or operating lease. In contrast, the new ASU requires both types of leases to be recognized on the balance sheet. In addition, the new guidance includes quantitative and qualitative disclosure requirements to aid financial statement users in better understanding the amount, timing and uncertainty of cash flows arising from leases. The new guidance is effective for the Company for the annual reporting period ending September 30, 2020 and interim periods within that annual period. Early adoption is permitted. The Company has completed its inventory of leases and does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting For Hedging Activities . The ASU is meant to simplify recognition and presentation guidance in an effort to improve financial reporting of cash flow and fair value hedging relationships to better portray the economic results of an entity's risk management activities. This is achieved through changes to both the designation and measurement guidance for qualifying hedging relationships, as well as changes to the presentation of hedge results. The new guidance is effective for the Company for the annual reporting period ending September 30, 2020 and interim periods within that annual period. Early adoption is permitted. Management has not completed its evaluation of the new guidance; however, it does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . This ASU modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The new guidance is effective for the Company for the annual reporting period ending September 30, 2021. Early adoption is permitted. Management has not completed its evaluation of the new guidance; however, the ASU only modifies disclosure requirements and will not affect financial position, results of operations or cash flows. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs incurred in a Cloud Computing Arrangement that is a Service Contract . This ASU reduces the complexity of accounting for costs of implementing a cloud computing service arrangement and aligns the following requirements to capitalize implementation costs: 1) those incurred in a hosting arrangement that is a service contract, and 2) those incurred to develop or obtain internal-use software, including hosting arrangements that include an internal software license. The new guidance is effective for the Company for the annual reporting period beginning October 1, 2020. Management has not completed its evaluation of the new guidance; however, it believes the new guidance will change the future treatment of certain contracts by allowing related implementation costs to be capitalized and amortized over time, rather than directly expensed. Management does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. Other accounting standards that have been issued or proposed by the FASB or other standard–setting bodies are not currently applicable to the Company or are not expected to have a significant impact on the Company’s financial position, results of operations and cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Regulatory Assets | Regulatory assets and liabilities included in the Company’s consolidated balance sheets as of September 30, 2019 and 2018 are as follows: September 30 2019 2018 Assets: Current Assets: Regulatory assets: Accrued WNA revenues $ 569,558 $ 169,602 Under-recovery of gas costs — 922,898 ESAC assets 265,392 — Accrued pension and postretirement medical 602,674 293,000 Other deferred expenses 84,315 — Total current 1,521,939 1,385,500 Utility Property: In service: Other 11,945 11,945 Other Assets: Regulatory assets: Premium on early retirement of debt 1,712,808 1,826,995 Accrued pension and postretirement medical 9,414,695 5,704,718 ESAC assets 756,803 1,330,434 Other deferred expenses 294,547 — Total non-current 12,178,853 8,862,147 Total regulatory assets $ 13,712,737 $ 10,259,592 Liabilities and Stockholders' Equity: Current Liabilities: Regulatory liabilities: Over-recovery of gas costs $ 161,837 $ — Over-recovery of SAVE Plan revenues 574,181 670,034 Rate refund 3,827,588 1,320,167 Excess deferred income taxes 205,353 — Other deferred liabilities 108,644 — Total current 4,877,603 1,990,201 Deferred Credits and Other Liabilities: Asset retirement obligations 6,788,683 6,417,948 Regulatory cost of retirement obligations 11,892,352 11,163,981 Regulatory liabilities: Excess deferred income taxes 10,934,434 11,447,736 Total non-current $ 29,615,469 $ 29,029,665 Total regulatory liabilities $ 34,493,072 $ 31,019,866 |
Schedule of Regulatory Liabilities | Regulatory assets and liabilities included in the Company’s consolidated balance sheets as of September 30, 2019 and 2018 are as follows: September 30 2019 2018 Assets: Current Assets: Regulatory assets: Accrued WNA revenues $ 569,558 $ 169,602 Under-recovery of gas costs — 922,898 ESAC assets 265,392 — Accrued pension and postretirement medical 602,674 293,000 Other deferred expenses 84,315 — Total current 1,521,939 1,385,500 Utility Property: In service: Other 11,945 11,945 Other Assets: Regulatory assets: Premium on early retirement of debt 1,712,808 1,826,995 Accrued pension and postretirement medical 9,414,695 5,704,718 ESAC assets 756,803 1,330,434 Other deferred expenses 294,547 — Total non-current 12,178,853 8,862,147 Total regulatory assets $ 13,712,737 $ 10,259,592 Liabilities and Stockholders' Equity: Current Liabilities: Regulatory liabilities: Over-recovery of gas costs $ 161,837 $ — Over-recovery of SAVE Plan revenues 574,181 670,034 Rate refund 3,827,588 1,320,167 Excess deferred income taxes 205,353 — Other deferred liabilities 108,644 — Total current 4,877,603 1,990,201 Deferred Credits and Other Liabilities: Asset retirement obligations 6,788,683 6,417,948 Regulatory cost of retirement obligations 11,892,352 11,163,981 Regulatory liabilities: Excess deferred income taxes 10,934,434 11,447,736 Total non-current $ 29,615,469 $ 29,029,665 Total regulatory liabilities $ 34,493,072 $ 31,019,866 |
Schedule of Utility Plant | Utility plant is composed of the following major classes of assets: September 30 2019 2018 Distribution and transmission $ 209,171,339 $ 196,778,546 LNG storage 13,417,077 13,413,175 General and miscellaneous 15,198,548 14,662,599 Total utility plant in service $ 237,786,964 $ 224,854,320 |
Summary of Asset Retirement Obligation | The following is a summary of the AROs: Years Ended September 30 2019 2018 Beginning balance $ 6,417,948 $ 6,069,993 Liabilities incurred 177,646 79,608 Liabilities settled (177,755 ) (126,907 ) Accretion 370,844 332,537 Revisions to estimated cash flows — 62,717 Ending balance $ 6,788,683 $ 6,417,948 |
Reconciliation of Changes in Allowance for Doubtful Accounts | A reconciliation of changes in the allowance for doubtful accounts is as follows: Years Ended September 30 2019 2018 2017 Beginning balance $ 103,573 $ 99,456 $ 76,934 Provision for doubtful accounts 220,039 169,096 84,587 Recoveries of accounts written off 96,614 78,919 110,725 Accounts written off (309,483 ) (243,898 ) (172,790 ) Ending balance $ 110,743 $ 103,573 $ 99,456 |
Reconciliation of Basic and Diluted Earnings Per Share | A reconciliation of basic and diluted EPS is presented below: Years Ended September 30 2019 2018 2017 Net Income $ 8,698,412 $ 7,297,205 $ 6,232,865 Weighted-average common shares 8,039,484 7,649,025 7,218,686 Effect of dilutive securities: Options to purchase common stock 39,466 46,687 37,360 Diluted average common shares 8,078,950 7,695,712 7,256,046 Earnings Per Share of Common Stock: Basic $ 1.08 $ 0.95 $ 0.86 Diluted $ 1.08 $ 0.95 $ 0.86 |
Summary of Other Comprehensive Income (Loss) | A summary of other comprehensive income is provided below: Before Tax Amount Tax (Expense) or Benefit Net of Tax Amount Year Ended September 30, 2019: Interest rate swap: Unrealized losses $ (1,117,595 ) $ 287,669 $ (829,926 ) Transfer of realized gains to interest expense (87,309 ) 22,474 (64,835 ) Net interest rate swap (1,204,904 ) 310,143 (894,761 ) Defined benefit plans: Net loss arising during period $ (962,612 ) $ 247,777 $ (714,835 ) Amortization of actuarial gains (10,305 ) 2,652 (7,653 ) Net defined benefit plans (972,917 ) 250,429 (722,488 ) Other comprehensive loss $ (2,177,821 ) $ 560,572 $ (1,617,249 ) Year Ended September 30, 2018: Interest rate swap: Unrealized gains $ 217,773 $ (62,807 ) $ 154,966 Transfer of realized gains to interest expense (24,053 ) 6,937 (17,116 ) Net interest rate swap 193,720 (55,870 ) 137,850 Defined benefit plans: Net gain arising during period $ 595,570 $ (171,775 ) $ 423,795 Amortization of actuarial gains (23,887 ) 6,890 (16,997 ) Net defined benefit plans 571,683 (164,885 ) 406,798 Other comprehensive income $ 765,403 $ (220,755 ) $ 544,648 Year Ended September 30, 2017: Interest rate swaps: Unrealized gains $ 116,843 $ (44,354 ) $ 72,489 Net interest rate swaps 116,843 (44,354 ) 72,489 Defined benefit plans: Net gain arising during period $ 1,715,505 $ (651,892 ) $ 1,063,613 Amortization of actuarial losses 256,234 (97,369 ) 158,865 Net defined benefit plans 1,971,739 (749,261 ) 1,222,478 Other comprehensive income $ 2,088,582 $ (793,615 ) $ 1,294,967 |
Components of Accumulated Comprehensive Income (Loss) | Composition of AOCI: Interest Rate Swaps Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) Balance September 30, 2016 $ — $ (2,497,231 ) $ (2,497,231 ) Other comprehensive income (loss) 72,489 1,222,478 1,294,967 Balance September 30, 2017 72,489 (1,274,753 ) (1,202,264 ) Other comprehensive income (loss) 137,850 406,798 544,648 Reclassification adjustment for the effect of change in tax law 20,285 (234,337 ) (214,052 ) Balance September 30, 2018 230,624 (1,102,292 ) (871,668 ) Other comprehensive income (loss) (894,761 ) (722,488 ) (1,617,249 ) Balance September 30, 2019 $ (664,137 ) $ (1,824,780 ) $ (2,488,917 ) |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The changes to the consolidated income statements are associated with the adoption of ASU 2017-07, Compensation - Retirement Benefits, which changed the income statement location of the components of net periodic benefit costs other than service cost. The changes to the consolidated income statements for the years ended September 30, 2018 and 2017 are reflected below and discussed in more detail under the recently adopted accounting standards section. Year Ended September 30, 2018 As Previously Reported Effect of Change As Adjusted Operation and maintenance 12,348,890 122,538 12,471,428 Total operating expenses 53,941,691 122,538 54,064,229 Operating income 11,593,045 (122,538 ) 11,470,507 Other income (expense), net 122,330 122,538 244,868 Income before income taxes 10,192,341 — 10,192,341 Year Ended September 30, 2017 As Previously Reported Effect of Change As Adjusted Operation and maintenance 13,100,041 (526,433 ) 12,573,608 Total operating expenses 50,630,561 (526,433 ) 50,104,128 Operating income 11,666,309 526,433 12,192,742 Other income (expense), net (132,446 ) (526,433 ) (658,879 ) Income before income taxes 10,038,255 — 10,038,255 The changes to the balance sheet relate to aggregating regulatory assets and liabilities that had been previously included in other financial statement line items into their own financial statement line item. This change allows for better presentation in the financial statements. September 30, 2018 As Previously Reported Effect of Change As Adjusted Current Assets: Accounts receivable, net 3,913,830 (169,602 ) 3,744,228 Under-recovery of gas cost 922,898 (922,898 ) — Other 980,972 (293,000 ) 687,972 Regulatory assets — 1,385,500 1,385,500 Current Liabilities: Accrued expenses 3,750,466 (670,034 ) 3,080,432 Rate refund 1,320,167 (1,320,167 ) — Regulatory liabilities — 1,990,201 1,990,201 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following tables summarize revenue by customer, product and income statement classification for the years ended September 30: 2019 Gas utility Non-utility Total operating revenues Natural Gas (Billed and Unbilled): Residential $ 39,519,618 $ — $ 39,519,618 Commercial 22,562,265 — 22,562,265 Industrial and Transportation 4,770,657 — 4,770,657 Revenue reductions (TCJA) (1) (523,881 ) — (523,881 ) Other 592,156 720,265 1,312,421 Total contracts with customers 66,920,815 720,265 67,641,080 Alternative Revenue Programs 385,445 — 385,445 Total operating revenues $ 67,306,260 $ 720,265 $ 68,026,525 2018 Gas utility Non-utility Total operating revenues Natural Gas (Billed and Unbilled): Residential $ 38,926,710 $ — $ 38,926,710 Commercial 22,158,226 — 22,158,226 Industrial and Transportation 4,316,526 — 4,316,526 Revenue reductions (TCJA) (1) (1,320,167 ) — (1,320,167 ) Other 690,787 1,192,953 1,883,740 Total contracts with customers 64,772,082 1,192,953 65,965,035 Alternative Revenue Programs (430,299 ) — (430,299 ) Total operating revenues $ 64,341,783 $ 1,192,953 $ 65,534,736 2017 Gas utility Non-utility Total operating revenues Natural Gas (Billed and Unbilled): Residential $ 34,462,456 $ — $ 34,462,456 Commercial 19,913,853 — 19,913,853 Industrial and Transportation 4,400,731 — 4,400,731 Other 693,435 1,044,855 1,738,290 Total contracts with customers 59,470,475 1,044,855 60,515,330 Alternative Revenue Programs 1,781,540 — 1,781,540 Total operating revenues $ 61,252,015 $ 1,044,855 $ 62,296,870 (1) Accrued refund associated with excess revenue collected in tariff rates associated with the reduction in federal income tax rates. See Note 3 for more information. |
Customer receivables | The balances of customer receivables are provided below: Current Assets Current Liabilities Trade accounts receivable (1) Unbilled revenue (1) Customer credit balances Customer deposits September 30, 2018 $ 2,675,611 $ 911,657 $ 1,003,622 $ 1,421,043 September 30, 2019 2,590,702 1,236,384 880,295 1,432,031 Increase (decrease) $ (84,909 ) $ 324,727 $ (123,327 ) $ 10,988 (1) Included in "Accounts receivable, net" in the condensed consolidated balance sheet. Amounts shown net of reserve for bad debts. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Information related to segments | Information related to the segments of the Company are provided below: Gas Utility Investment in Affiliates Parent and Other Consolidated Total For the Year Ended September 30, 2019: Operating revenues $ 67,306,260 $ — $ 720,265 $ 68,026,525 Depreciation 7,454,274 — — 7,454,274 Operating income (loss) 11,458,679 (153,149 ) 289,934 11,595,464 Equity in earnings — 3,020,348 — 3,020,348 Interest expense 2,404,518 1,214,033 — 3,618,551 Income before income taxes 9,400,869 1,657,988 290,286 11,349,143 As of September 30, 2019: Total assets $ 195,969,019 $ 47,429,368 $ 14,955,309 $ 258,353,696 Gross additions to utility property 21,884,317 — — 21,884,317 Gross investment in MVP and Southgate — 20,965,907 — 20,965,907 Gas Utility Investment in Affiliates Parent and Other Consolidated Total For the Year Ended September 30, 2018: Operating revenues $ 64,341,783 $ — $ 1,192,953 $ 65,534,736 Depreciation 6,956,344 — — 6,956,344 Operating income (loss) 11,043,609 (92,981 ) 519,879 11,470,507 Equity in earnings — 938,531 — 938,531 Interest expense 2,079,553 382,012 — 2,461,565 Income before income taxes 9,208,921 463,541 519,879 10,192,341 As of September 30, 2018: Total assets $ 181,360,570 $ 28,540,978 $ 9,658,558 $ 219,560,106 Gross additions to utility property 23,290,994 — — 23,290,994 Gross investment in MVP and Southgate — 11,036,247 — 11,036,247 For the Year Ended September 30, 2017: Operating revenues $ 61,252,015 $ — $ 1,044,855 $ 62,296,870 Depreciation 6,256,737 — — 6,256,737 Operating income (loss) 11,790,728 (69,515 ) 471,529 12,192,742 Equity in earnings — 421,646 — 421,646 Interest expense 1,778,763 138,491 — 1,917,254 Income before income taxes 9,353,085 213,641 471,529 10,038,255 As of September 30, 2017: Total assets $ 162,727,812 $ 7,496,965 $ 12,910,294 $ 183,135,071 Gross additions to utility property 20,750,181 — — 20,750,181 Gross investment in MVP and Southgate — 2,759,346 — 2,759,346 |
Other Investments (Tables)
Other Investments (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Other Investments [Abstract] | |
Schedule of Other Investments | The financial statement locations of the investments by Midstream are as follows: September 30 Balance Sheet Location of Other Investments: 2019 2018 Other Assets: MVP $ 47,055,426 $ 28,387,032 Southgate 320,033 120,114 Investment in unconsolidated affiliate $ 47,375,459 $ 28,507,146 Current Liabilities: MVP $ 4,958,260 $ 10,022,652 Southgate 66,564 120,114 Capital contributions payable $ 5,024,824 $ 10,142,766 Years ended September 30 Income Statement Location of Other Investments: 2019 2018 2017 Equity in earnings of unconsolidated affiliate $ 3,020,348 $ 938,531 $ 421,646 September 30 2019 2018 Undistributed earnings, net of income taxes, of MVP in retained earnings $ 3,267,176 $ 1,024,266 The change in the investment in unconsolidated affiliate is provided below: September 30 2019 2018 2017 Cash investment $ 20,965,907 $ 11,036,247 $ 2,759,346 Change in accrued capital calls (5,117,942 ) 9,087,262 767,710 Equity in earnings of unconsolidated affiliates 3,020,348 938,531 421,646 Change in investment in unconsolidated affiliates $ 18,868,313 $ 21,062,040 $ 3,948,702 |
Summary Unaudited Financial Statements - Equity Method Investment | Summary unaudited financial statements of Mountain Valley Pipeline are presented below. Southgate financial statements, which is accounted for under the cost method, are not included: Income Statement Years Ended September 30, 2019 2018 2017 AFUDC $ 295,430,776 $ 90,096,350 $ 41,848,389 Net Other Income 5,655,644 3,433,365 327,078 Net Income $ 301,086,420 $ 93,529,715 $ 42,175,467 Balance Sheet September 30 2019 2018 Assets: Current Assets $ 485,323,892 $ 1,237,237,542 Construction Work in Progress 4,675,267,389 2,301,591,079 Other Assets 13,190,816 18,165,856 Total Assets $ 5,173,782,097 $ 3,556,994,477 Liabilities and Equity: Current Liabilities $ 466,776,233 $ 715,879,655 Capital 4,707,005,864 2,841,114,822 Total Liabilities and Equity $ 5,173,782,097 $ 3,556,994,477 |
Line-of-Credit (Tables)
Line-of-Credit (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Available Limits Under Line of Credit Agreement | The Company's total available borrowing limits under this agreement for the remaining term are as follows: As of Available Line-of-Credit September 30, 2019 $ 22,000,000 April 1, 2020 16,000,000 July 17, 2020 21,000,000 September 18, 2020 30,000,000 |
Summary of Line of Credit | A summary of the line-of-credit follows: September 30 2019 2018 2017 Available line-of-credit at year-end $ 22,000,000 $ 20,000,000 $ 21,000,000 Outstanding balance at year-end 8,172,473 7,361,017 17,791,760 Highest month-end balance outstanding 15,801,798 17,054,377 17,791,760 Average daily balance 6,049,527 6,730,334 10,936,114 Average rate of interest during year on outstanding balances 3.40 % 2.53 % 1.92 % Interest rate at year-end 3.02 % 3.26 % 2.23 % Interest rate on unused line-of-credit 0.15 % 0.15 % 0.15 % |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: September 30 2019 2018 Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs Roanoke Gas: Unsecured senior notes payable, at 4.26%, due on September 18, 2034 $ 30,500,000 $ 144,811 $ 30,500,000 $ 154,465 Unsecured term note payable, at 30-day LIBOR plus 0.90%, November 1, 2021 7,000,000 6,948 7,000,000 10,283 Unsecured term notes payable, at 3.58% due on October 2, 2027 8,000,000 38,528 8,000,000 43,343 Unsecured term notes payable at 4.41%, due on March 28, 2031 10,000,000 36,272 — — Midstream: Unsecured term notes payable, at 30-day LIBOR plus 1.35% due December 29, 2020 16,012,200 59,504 17,743,200 74,190 Unsecured term note payable, at 30-day LIBOR plus 1.15%, due June 12, 2026 14,000,000 16,252 — — Unsecured term note payable, at 30-day LIBOR plus 1.20%, due June 1, 2024 10,000,000 11,000 — — Total notes payable $ 95,512,200 $ 313,315 $ 63,243,200 $ 282,281 Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2021 8,172,473 — 7,361,017 — Total long-term debt $ 103,684,673 $ 313,315 $ 70,604,217 $ 282,281 |
Summary of Aggregate Annual Maturities of Long-Term Debt | The aggregate annual maturities of long-term debt for the next five years ending after September 30, 2019 are as follows: Year Ending September 30 Maturities 2020 $ — 2021 24,184,673 2022 7,000,000 2023 — 2024 10,000,000 Thereafter 62,500,000 Total $ 103,684,673 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Details of Income Tax Expense | The details of income tax expense are as follows: Years Ended September 30 2019 2018 2017 Current income taxes: Federal $ 1,698,215 $ 1,831,085 $ 72,368 State 268,488 308,057 407,643 Total current income taxes 1,966,703 2,139,142 480,011 Deferred income taxes: Federal 272,079 440,282 3,129,925 State 411,949 315,712 195,454 Total deferred income taxes 684,028 755,994 3,325,379 Total income tax expense $ 2,650,731 $ 2,895,136 $ 3,805,390 |
Reconciliation of Income Tax Expense Based on Federal Statutory Rate | Income tax expense for the years ended September 30, 2019 , 2018 and 2017 differed from amounts computed by applying the U.S. federal income tax rate to earnings before income taxes due to the following: Years Ended September 30 2019 2018 2017 Income before income taxes $ 11,349,143 $ 10,192,341 $ 10,038,255 Corporate federal income tax rate 21.0 % 24.3 % 34.0 % Income tax expense computed at the federal statutory rate $ 2,383,320 $ 2,476,739 $ 3,413,007 State income taxes, net of federal income tax benefit 537,545 472,193 398,044 Revaluation of unregulated deferred taxes to 21% — 256,444 — Net amortization of excess deferred taxes on regulated operations (212,896 ) (264,106 ) — Tax benefit recognized on stock compensation (96,499 ) (68,364 ) (26,421 ) Other, net 39,261 22,230 20,760 Total income tax expense $ 2,650,731 $ 2,895,136 $ 3,805,390 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are as follows: September 30 2019 2018 Deferred tax assets: Allowance for uncollectibles $ 28,503 $ 26,658 Accrued pension and postretirement medical benefits 782,592 897,834 Regulatory effect of change in federal income tax rate 2,867,383 2,946,649 Accrued vacation 150,882 160,001 Over-recovery of gas costs 23,979 — Cost of gas held in storage 590,495 591,899 Deferred compensation 803,979 716,843 Interest rate swap 230,204 — Rate refund 130,063 339,812 Other 261,125 298,129 Total gross deferred tax assets 5,869,205 5,977,825 Deferred tax liabilities: Utility plant 18,132,022 17,982,215 Under-recovery of gas costs — 255,570 MVP investment 705,193 245,678 Other 10,513 79,939 Total gross deferred tax liabilities 18,847,728 18,563,402 Net deferred tax liability $ 12,978,523 $ 12,585,577 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Benefit Obligations and Fair Value of Plan Assets, Funded Status of the Plan, and Amount Recognized in the Financial Statements | The following tables set forth the benefit obligation, fair value of plan assets, the funded status of the plans, amounts recognized in the Company’s consolidated financial statements and the assumptions used: Pension Plan Postretirement Plan 2019 2018 2019 2018 Accumulated benefit obligation $ 30,927,973 $ 25,199,762 $ 18,030,399 $ 16,207,322 Change in benefit obligation: Benefit obligation at beginning of year $ 28,850,299 $ 29,657,347 $ 16,207,322 $ 17,666,812 Service cost 537,268 665,235 132,882 167,220 Interest cost 1,166,728 1,088,180 648,944 640,602 Actuarial (gain) loss 5,901,915 (1,727,767 ) 1,530,522 (1,774,320 ) Benefit payments, net of retiree contributions (905,223 ) (832,696 ) (489,271 ) (492,992 ) Benefit obligation at end of year $ 35,550,987 $ 28,850,299 $ 18,030,399 $ 16,207,322 Change in fair value of plan assets: Fair value of plan assets at beginning of year $ 28,184,697 $ 26,418,671 $ 12,924,957 $ 12,691,162 Actual return on plan assets, net of taxes 3,907,197 1,798,722 346,924 426,787 Employer contributions 2,400,000 800,000 300,000 300,000 Benefit payments, net of retiree contributions (905,223 ) (832,696 ) (489,271 ) (492,992 ) Fair value of plan assets at end of year $ 33,586,671 $ 28,184,697 $ 13,082,610 $ 12,924,957 Funded status $ (1,964,316 ) $ (665,602 ) $ (4,947,789 ) $ (3,282,365 ) Amounts recognized in the balance sheet consist of: Noncurrent liabilities $ (1,964,316 ) $ (665,602 ) $ (4,947,789 ) $ (3,282,365 ) Amounts recognized in accumulated other comprehensive loss: Net actuarial loss, net of tax $ 1,047,063 $ 361,215 $ 777,717 $ 741,077 Total amounts included in other comprehensive loss, net of tax $ 1,047,063 $ 361,215 $ 777,717 $ 741,077 Amounts deferred to a regulatory asset: Net actuarial loss $ 6,356,201 $ 3,894,221 $ 3,661,168 $ 2,103,497 Amounts recognized as regulatory assets $ 6,356,201 $ 3,894,221 $ 3,661,168 $ 2,103,497 |
Schedule of Actuarial Assumptions Used | The following table details the actuarial assumptions used in determining the projected benefit obligations and net benefit cost of the pension and the accumulated benefit obligations and net benefit cost of the postretirement plan for 2019 , 2018 and 2017 : Pension Plan Postretirement Plan 2019 2018 2017 2019 2018 2017 Assumptions used to determine benefit obligations: Discount rate 3.03 % 4.11 % 3.72 % 3.00 % 4.09 % 3.69 % Expected rate of compensation increase 4.00 % 4.00 % 4.00 % N/A N/A N/A Assumptions used to determine benefit costs: Discount rate 4.11 % 3.72 % 3.42 % 4.09 % 3.69 % 3.33 % Expected long-term rate of return on plan assets 5.50 % 7.00 % 7.00 % 4.30 % 4.84 % 4.84 % Expected rate of compensation increase 4.00 % 4.00 % 4.00 % N/A N/A N/A |
Schedule of Components of Net Periodic Benefit Cost | Components of net periodic benefit cost are as follows: Pension Plan Postretirement Plan 2019 2018 2017 2019 2018 2017 Service cost $ 537,268 $ 665,235 $ 706,677 $ 132,882 $ 167,220 $ 183,267 Interest cost 1,166,728 1,088,180 995,598 648,944 640,602 626,822 Expected return on plan assets (1,549,437 ) (1,862,838 ) (1,616,412 ) (547,218 ) (623,381 ) (571,513 ) Recognized loss 158,599 351,030 662,180 123,805 283,868 429,758 Net periodic benefit cost $ 313,158 $ 241,607 $ 748,043 $ 358,413 $ 468,309 $ 668,334 |
Summary of Assumed Health Care Cost Trend Rates Used | The assumed health care cost trend rates used in measuring the accumulated benefit obligation for the postretirement plan as of September 30, 2019 , 2018 and 2017 are presented below: Pre 65 Post 65 2019 2018 2017 2019 2018 2017 Health care cost trend rate assumed for next year 7.00 % 7.00 % 7.00 % 5.20 % 5.00 % 5.00 % Rate to which the cost trend is assumed to decline (the ultimate trend rate) 5.50 % 5.00 % 5.00 % 5.20 % 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2022 2026 2021 2019 2018 2017 |
Effect of a 1% Change in Health Care Cost Trend Rate Assumptions | The health care cost trend rate assumptions could have a significant effect on the amounts reported. A change of 1% would have the following effects: 1% Increase 1% Decrease Effect on total service and interest cost components $ 136,000 $ (109,000 ) Effect on accumulated postretirement benefit obligation 2,954,000 (2,387,000 ) |
Schedule of Target and Actual Asset Allocation | The Company’s target and actual asset allocation in the pension and postretirement plans as of September 30, 2019 and 2018 were: Pension Plan Postretirement Plan Target 2019 2018 Target 2019 2018 Asset category: Equity securities 40 % 40 % 40 % 50 % 49 % 49 % Debt securities 60 % 59 % 59 % 50 % 50 % 50 % Cash — % 1 % 1 % — % 1 % 1 % Other — % — % — % — % — % — % |
Summary of Fair Value Classifications of Benefit Plan Assets | The following tables contains the fair value classifications of the plans' assets: Pension Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 371,780 $ 371,780 $ — $ — Common and Collective Trust and Pooled Funds: Bonds Liability Driven Investment 19,702,561 — 19,702,561 — Equities Domestic Large Cap Growth 4,069,197 — 4,069,197 — Domestic Large Cap Value 4,055,518 — 4,055,518 — Domestic Small/Mid Cap Core 2,032,084 — 2,032,084 — Foreign Large Cap Value 1,783,990 — 1,783,990 — Mutual Funds: Equities Foreign Large Cap Growth 1,227,981 1,227,981 — — Foreign Large Cap Value 343,560 343,560 — — Total $ 33,586,671 $ 1,943,321 $ 31,643,350 $ — Pension Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 282,478 $ 282,478 $ — $ — Common and Collective Trust and Pooled Funds: Bonds Liability Driven Investment 16,504,956 — 16,504,956 — Equities Domestic Large Cap Growth 3,449,486 — 3,449,486 — Domestic Large Cap Value 3,381,285 — 3,381,285 — Domestic Small/Mid Cap Core 1,685,352 — 1,685,352 — Foreign Large Cap Value 1,527,796 — 1,527,796 — Mutual Funds: Equities Foreign Large Cap Growth 1,060,383 1,060,383 — — Foreign Large Cap Value 292,961 292,961 — — Total $ 28,184,697 $ 1,635,822 $ 26,548,875 $ — Postretirement Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 66,860 $ 66,860 $ — $ — Mutual Funds Bonds Domestic Fixed Income 5,987,248 5,987,248 — — Foreign Fixed Income 611,196 611,196 — — Equities Domestic Large Cap Growth 1,909,836 1,909,836 — — Domestic Large Cap Value 1,931,615 1,931,615 — — Domestic Small/Mid Cap Growth 210,251 210,251 — — Domestic Small/Mid Cap Value 214,034 214,034 — — Domestic Small/Mid Cap Core 464,526 464,526 — — Foreign Large Cap Growth 489,286 489,286 — — Foreign Large Cap Value 1,098,992 1,098,992 — — Foreign Large Cap Core 70,782 70,782 — — Other 27,984 — 27,984 — Total $ 13,082,610 $ 13,054,626 $ 27,984 $ — Postretirement Plan Fair Value Level 1 Level 2 Level 3 Asset Class: Cash $ 96,117 $ 96,117 $ — $ — Mutual Funds Bonds Domestic Fixed Income 5,859,588 5,859,588 — — Foreign Fixed Income 609,722 609,722 — — Equities Domestic Large Cap Growth 1,926,076 1,926,076 — — Domestic Large Cap Value 1,874,643 1,874,643 — — Domestic Small/Mid Cap Growth 214,180 214,180 — — Domestic Small/Mid Cap Value 210,891 210,891 — — Domestic Small/Mid Cap Core 459,363 459,363 — — Foreign Large Cap Growth 525,720 525,720 — — Foreign Large Cap Value 1,090,851 1,090,851 — — Foreign Large Cap Core 28,786 28,786 — — Other 29,020 — 29,020 — Total $ 12,924,957 $ 12,895,937 $ 29,020 $ — |
Schedule of Expected Future Benefit Payments | The following table reflects expected future benefit payments: Fiscal year ending September 30 Pension Postretirement 2020 $ 995,393 $ 633,473 2021 1,050,564 685,678 2022 1,134,262 732,085 2023 1,222,806 790,242 2024 1,316,860 794,515 2025-2029 7,825,994 4,039,665 |
Common Stock Options (Tables)
Common Stock Options (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Fair Value of Stock Options | As the Company's stock options are not traded on the open market, the fair value of each grant is estimated on the date of grant using the Black-Scholes option pricing model including the following assumptions: Years Ended September 30, 2019 2018 2017 Expected volatility N/A N/A 26.09% Expected dividends N/A N/A 3.81% Expected exercise term (years) N/A N/A 7.00 Risk-free interest rate N/A N/A 2.20% |
Schedule of Stock Option Transactions | Stock option transactions under the Company's plans for the years ended September 30, 2019 , 2018 and 2017 are summarized below. Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Terms (years) Aggregate Intrinsic Value 1 Options outstanding, September 30, 2016 87,300 $ 13.50 7.8 $ 200,211 Options granted 25,500 16.37 Options exercised (11,225 ) 12.67 Options expired — — Options forfeited — — Options outstanding, September 30, 2017 101,575 14.31 7.6 1,448,338 Options granted — — Options exercised (1,575 ) 12.66 Options expired — — Options forfeited — — Options outstanding, September 30, 2018 100,000 14.34 6.6 1,237,286 Options granted — — Options exercised (31,508 ) 13.08 Options expired — — Options forfeited — — Options outstanding, September 30, 2019 68,492 $ 14.91 6.2 $ 981,170 Vested and exercisable at September 30, 2019 68,492 $ 14.91 6.2 $ 981,170 1 Aggregate intrinsic value includes only those options where the exercise price is below the market price. Years Ended September 30, 2019 2018 2017 Weighted-average grant date option fair value $ — $ — $ 2.89 Stock option expense — — 73,780 Intrinsic value of options exercised 456,002 15,256 99,929 Proceeds from exercise of stock options 412,179 19,945 142,241 |
Other Stock Plans (Tables)
Other Stock Plans (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Director Compensation Activity | The following table reflects the director compensation activity pursuant to the Plan: 2019 2018 2017 Shares Weighted-Average Fair Value on Date of Grant Shares Weighted-Average Fair Value on Date of Grant Shares Weighted-Average Fair Value on Date of Grant Beginning of year balance 98,302 $ 11.51 111,893 $ 10.56 107,023 $ 10.11 Granted 6,378 27.93 6,692 26.57 4,870 16.77 Vested — — (20,283 ) 11.20 — — Forfeited — — — — — — End of year balance 104,680 $ 12.51 98,302 $ 11.51 111,893 $ 10.56 |
Officer Compensation Activity | The following table reflects the officer compensation activity pursuant to the RSPO: 2019 2018 Shares Weighted-Average Fair Value on Date of Grant Shares Weighted-Average Fair Value on Date of Grant Beginning of year balance 6,734 $ 26.33 — $ — Granted 10,227 29.80 10,101 26.33 Vested (6,776 ) 28.08 (3,367 ) 26.33 Forfeited — — — — End of year balance 10,185 $ 28.65 6,734 $ 26.33 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Volumetric and Pipeline and Storage Capacity Obligations | The table below details the pipeline and storage capacity obligations as of September 30, 2019 for the remainder of the contract period. Year Pipeline and 2019-2020 $ 11,532,130 2020-2021 11,532,130 2021-2022 10,858,922 2022-2023 7,351,348 2023-2024 5,593,093 Thereafter 3,916,965 Total $ 50,784,588 The table below details the volumetric obligations as of September 30, 2019 for the remainder of the contract period. The current asset management contract was renewed in April 2018 for a three year period which will expire in March 2021. The new contract was renewed at essentially the same terms and conditions as the prior agreement. Year Natural Gas Contracts 2019-2020 2,071,061 2020-2021 295,866 Total 2,366,927 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis | The following table summarizes the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and the fair value measurements by level within the fair value hierarchy as defined in Note 1 as of September 30, 2019 and 2018 , respectively: Fair Value Measurements - September 30, 2019 Fair Value Quoted Prices in Significant Other Significant Liabilities: Natural gas purchases $ 397,757 $ — $ 397,757 $ — Interest rate swaps 894,341 — 894,341 — Total $ 1,292,098 $ — $ 1,292,098 $ — Fair Value Measurements - September 30, 2018 Fair Value Quoted Prices in Significant Other Significant Assets: Interest rate swap $ 310,563 $ — $ 310,563 $ — Total $ 310,563 $ — $ 310,563 $ — Liabilities: Natural gas purchases $ 693,495 $ — $ 693,495 $ — Total $ 693,495 $ — $ 693,495 $ — |
Summary of the Fair Value of Financial Assets and Liabilities Not Adjusted to Fair Value | The following table summarizes the fair value of the Company’s financial assets and liabilities that are not adjusted to fair value in the financial statements as of September 30, 2019 and 2018 . Fair Value Measurements - September 30, 2019 Carrying Quoted Prices in Significant Other Significant Liabilities: Notes payable $ 95,512,200 $ — $ — $ 100,900,952 Total $ 95,512,200 $ — $ — $ 100,900,952 Fair Value Measurements - September 30, 2018 Carrying Quoted Prices in Significant Other Significant Liabilities: Notes payable $ 63,243,200 $ — $ — $ 62,435,237 Total $ 63,243,200 $ — $ — $ 62,435,237 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | Quarterly financial data for the years ended September 30, 2019 and 2018 is summarized as follows: 2019 First Second Third Fourth Operating revenues $ 21,216,747 $ 25,274,959 $ 11,682,950 $ 9,851,869 Operating income $ 3,264,222 $ 6,203,483 $ 1,637,057 $ 490,702 Net income $ 2,434,162 $ 4,670,090 $ 1,138,555 $ 455,605 Earnings per share of common stock: Basic $ 0.30 $ 0.58 $ 0.14 $ 0.06 Diluted $ 0.30 $ 0.58 $ 0.14 $ 0.06 2018 First Second Third Fourth Operating revenues $ 18,756,051 $ 24,917,973 $ 11,889,570 $ 9,971,142 Operating income $ 3,644,491 $ 5,276,085 $ 1,835,590 $ 714,341 Net income $ 2,059,462 $ 3,465,929 $ 1,087,355 $ 684,459 Earnings per share of common stock: Basic $ 0.28 $ 0.47 $ 0.14 $ 0.09 Diluted $ 0.28 $ 0.47 $ 0.14 $ 0.09 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018USD ($)shares | Sep. 30, 2019USD ($)pipelineinstrument_heldcustomer$ / sharesshares | Sep. 30, 2018USD ($)instrument_heldshares | Sep. 30, 2017USD ($)shares | Jun. 30, 2019USD ($)instrument_held | Jun. 13, 2019USD ($) | Jun. 12, 2019USD ($)debt_instrument | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of customers | customer | 60,700 | ||||||
Remaining amount of regulatory assets that did not earn a return during the recovery period | $ 13,700,792 | ||||||
Regulatory utility assets provision, review period | 5 years | ||||||
Composite weighted-average depreciation rate | 3.31% | 3.32% | 3.29% | ||||
Effect of change in deprecation rate on depreciation expense | $ (32,570) | ||||||
Effect of change in depreciation rate on net income | $ 24,187 | ||||||
Effect of change in deprecation rate on EPS (in usd per share) | $ / shares | $ 0.01 | ||||||
Unbilled revenue | $ 1,236,384 | $ 911,657 | |||||
Deferred charges, amortization period | 12 months | ||||||
Number of pipelines | pipeline | 2 | ||||||
Noncash increase (decrease) in unconsolidated affiliate | $ (5,117,942) | $ 9,087,262 | $ 767,710 | ||||
Issuance of stock (in shares) | shares | 700,000 | 47,141 | 752,194 | 47,187 | |||
Proceeds from issuance of stock | $ 1,746,661 | $ 16,520,016 | $ 967,698 | ||||
Reclassification adjustment for the effect of change in tax law | 20,285 | ||||||
Defined Benefit Plans | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Reclassification adjustment for the effect of change in tax law | (234,337) | ||||||
Interest Rate Swaps | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Reclassification adjustment for the effect of change in tax law | $ 20,285 | ||||||
Natural Gas | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of derivative instruments | instrument_held | 0 | 0 | |||||
Interest Rate Swap | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of derivative instruments | instrument_held | 3 | ||||||
Minimum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Useful life (in years) | 5 years | ||||||
Maximum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Useful life (in years) | 76 years | ||||||
Roanoke Gas | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Proceeds from issuance of stock | $ 15,109,541 | ||||||
RGC Midstream, LLC | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of unsecured Promissory Notes funding the investment | 2 | 2 | |||||
Unsecured term note payable, at 30-day LIBOR plus 0.90%, November 1, 2021 | Roanoke Gas | Unsecured Debt | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Fixed rate related to interest rate swap | 2.30% | ||||||
Debt instrument, face amount | $ 7,000,000 | ||||||
Unsecured term note payable, at 30-day LIBOR plus 1.15%, due June 12, 2026 [Member] | RGC Midstream, LLC | Unsecured Debt | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Fixed rate related to interest rate swap | 3.24% | 3.24% | |||||
Debt instrument, face amount | $ 14,000,000 | $ 14,000,000 | |||||
Unsecured term note payable, at 30-day LIBOR plus 1.20%, due June 1, 2024 [Member] | RGC Midstream, LLC | Unsecured Debt | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Fixed rate related to interest rate swap | 3.14% | 3.14% | |||||
Debt instrument, face amount | $ 10,000,000 | $ 10,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Regulatory Assets and Liabilities) (Details) - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
Regulatory Assets [Line Items] | ||
Current regulatory assets | $ 1,521,939 | $ 1,385,500 |
Noncurrent regulatory assets | 12,178,853 | 8,862,147 |
Total regulatory assets | 13,712,737 | 10,259,592 |
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 4,877,603 | 1,990,201 |
Regulatory liabilities | 10,934,434 | 11,447,736 |
Regulatory Liability Noncurrent Gross | 29,615,469 | 29,029,665 |
Total regulatory liabilities | 34,493,072 | 31,019,866 |
Over-recovery of gas costs | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 161,837 | 0 |
Over-recovery of SAVE Plan revenues | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 574,181 | 670,034 |
Rate refund | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 3,827,588 | 1,320,167 |
Other Liabilities [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 108,644 | 0 |
Asset retirement obligations | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 6,788,683 | 6,417,948 |
Regulatory cost of retirement obligations | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 11,892,352 | 11,163,981 |
Excess deferred income taxes | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 205,353 | 0 |
Regulatory liabilities | 10,934,434 | 11,447,736 |
Accrued WNA revenues | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 569,558 | 169,602 |
Under-recovery of gas costs | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 0 | 922,898 |
ESAC assets | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 265,392 | 0 |
Noncurrent regulatory assets | 756,803 | 1,330,434 |
Accrued pension and postretirement medical | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 602,674 | 293,000 |
Noncurrent regulatory assets | 9,414,695 | 5,704,718 |
Utility property, in service, other | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 11,945 | 11,945 |
Premium on early retirement of debt | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 1,712,808 | 1,826,995 |
Other | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 84,315 | 0 |
Noncurrent regulatory assets | $ 294,547 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Components of Utility Plant) (Details) - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Distribution and transmission | $ 209,171,339 | $ 196,778,546 |
LNG storage | 13,417,077 | 13,413,175 |
General and miscellaneous | 15,198,548 | 14,662,599 |
Total utility plant in service | $ 237,786,964 | $ 224,854,320 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Summary of Asset Retirement Obligations) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning balance | $ 6,417,948 | $ 6,069,993 |
Liabilities incurred | 177,646 | 79,608 |
Liabilities settled | (177,755) | (126,907) |
Accretion | 370,844 | 332,537 |
Revisions to estimated cash flows | 0 | 62,717 |
Ending balance | $ 6,788,683 | $ 6,417,948 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Reconciliation of Changes in Allowance for Doubtful Accounts) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 103,573 | $ 99,456 | $ 76,934 |
Provision for doubtful accounts | 220,039 | 169,096 | 84,587 |
Recoveries of accounts written off | 96,614 | 78,919 | 110,725 |
Accounts written off | (309,483) | (243,898) | (172,790) |
Ending balance | $ 110,743 | $ 103,573 | $ 99,456 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Reconciliation of Basic and Diluted Earnings Per Share) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||
Net income | $ 455,605 | $ 1,138,555 | $ 4,670,090 | $ 2,434,162 | $ 684,459 | $ 1,087,355 | $ 3,465,929 | $ 2,059,462 | $ 8,698,412 | $ 7,297,205 | $ 6,232,865 |
Weighted-average common shares (in shares) | 8,039,484 | 7,649,025 | 7,218,686 | ||||||||
Effect of dilutive securities: | |||||||||||
Options to purchase common stock (in shares) | 39,466 | 46,687 | 37,360 | ||||||||
Diluted average common shares (in shares) | 8,078,950 | 7,695,712 | 7,256,046 | ||||||||
Earnings Per Share of Common Stock: | |||||||||||
Basic (in usd per share) | $ 0.06 | $ 0.14 | $ 0.58 | $ 0.30 | $ 0.09 | $ 0.14 | $ 0.47 | $ 0.28 | $ 1.08 | $ 0.95 | $ 0.86 |
Diluted (in usd per share) | $ 0.06 | $ 0.14 | $ 0.58 | $ 0.30 | $ 0.09 | $ 0.14 | $ 0.47 | $ 0.28 | $ 1.08 | $ 0.95 | $ 0.86 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Summary of Other Comprehensive Income) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Before Tax Amount | |||
Unrealized losses | $ (1,117,595) | $ 217,773 | $ 116,843 |
Transfer of realized gains to interest expense | (87,309) | (24,053) | |
Net interest rate swap | (1,204,904) | 193,720 | 116,843 |
Net gain (loss) arising during period | (962,612) | 595,570 | 1,715,505 |
Amortization of actuarial gains | (10,305) | (23,887) | 256,234 |
Net defined benefit plans | (972,917) | 571,683 | 1,971,739 |
Other comprehensive income (loss) | (2,177,821) | 765,403 | 2,088,582 |
Tax (Expense) or Benefit | |||
Unrealized losses | 287,669 | (62,807) | (44,354) |
Transfer of realized gains to interest expense | 22,474 | 6,937 | |
Net interest rate swap | 310,143 | (55,870) | (44,354) |
Net gain (loss) arising during period | 247,777 | (171,775) | (651,892) |
Amortization of actuarial gains | 2,652 | 6,890 | (97,369) |
Net defined benefit plans | 250,429 | (164,885) | (749,261) |
Other comprehensive income (loss) | 560,572 | (220,755) | (793,615) |
Net of Tax Amount | |||
Unrealized losses | (829,926) | 154,966 | 72,489 |
Transfer of realized gains to interest expense | (64,835) | (17,116) | |
Net interest rate swap | (894,761) | 137,850 | 72,489 |
Net gain (loss) arising during period | (714,835) | 423,795 | 1,063,613 |
Amortization of actuarial gains | (7,653) | (16,997) | 158,865 |
Net defined benefit plans | (722,488) | 406,798 | 1,222,478 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | $ (1,617,249) | $ 544,648 | $ 1,294,967 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Components of Accumulated Comprehensive Income (Loss)) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 79,583,112 | $ 60,040,472 | $ 55,667,072 |
Other comprehensive income (loss) | (1,617,249) | 544,648 | 1,294,967 |
Reclassification adjustment for the effect of change in tax law | 20,285 | ||
Ending balance | 83,096,392 | 79,583,112 | 60,040,472 |
Interest Rate Swaps | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 230,624 | 72,489 | 0 |
Other comprehensive income (loss) | (894,761) | 137,850 | 72,489 |
Reclassification adjustment for the effect of change in tax law | 20,285 | ||
Ending balance | (664,137) | 230,624 | 72,489 |
Defined Benefit Plans | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (1,102,292) | (1,274,753) | (2,497,231) |
Other comprehensive income (loss) | (722,488) | 406,798 | 1,222,478 |
Reclassification adjustment for the effect of change in tax law | (234,337) | ||
Ending balance | (1,824,780) | (1,102,292) | (1,274,753) |
Accumulated Other Comprehensive Income (Loss) | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (871,668) | (1,202,264) | (2,497,231) |
Other comprehensive income (loss) | (1,617,249) | 544,648 | 1,294,967 |
Reclassification adjustment for the effect of change in tax law | (214,052) | ||
Ending balance | $ (2,488,917) | $ (871,668) | $ (1,202,264) |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Financial Statement Reclassifications) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Operations and maintenance | $ 14,089,019 | $ 12,471,428 | $ 12,573,608 | ||||||||
Total operating expenses | 56,431,061 | 54,064,229 | 50,104,128 | ||||||||
Operating income | $ 490,702 | $ 1,637,057 | $ 6,203,483 | $ 3,264,222 | $ 714,341 | $ 1,835,590 | $ 5,276,085 | $ 3,644,491 | 11,595,464 | 11,470,507 | 12,192,742 |
Other income (expense), net | 351,882 | 244,868 | (658,879) | ||||||||
Income before income taxes | 11,349,143 | 10,192,341 | 10,038,255 | ||||||||
Accounts Receivable | 3,870,211 | 3,744,228 | 3,870,211 | 3,744,228 | |||||||
Unrecovered Costs for Purchased Gas Amount | 0 | 0 | |||||||||
Other | 733,525 | 687,972 | 733,525 | 687,972 | |||||||
Regulatory assets | 1,521,939 | 1,385,500 | 1,521,939 | 1,385,500 | |||||||
Accrued expenses | 3,448,000 | 3,080,432 | 3,448,000 | 3,080,432 | |||||||
Rate refund | 0 | 0 | |||||||||
Regulatory liabilities | $ 4,877,603 | 1,990,201 | $ 4,877,603 | 1,990,201 | |||||||
As Previously Reported | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Operations and maintenance | 12,348,890 | 13,100,041 | |||||||||
Total operating expenses | 53,941,691 | 50,630,561 | |||||||||
Operating income | 11,593,045 | 11,666,309 | |||||||||
Other income (expense), net | 122,330 | (132,446) | |||||||||
Income before income taxes | 10,192,341 | 10,038,255 | |||||||||
Accounts Receivable | 3,913,830 | 3,913,830 | |||||||||
Unrecovered Costs for Purchased Gas Amount | 922,898 | 922,898 | |||||||||
Other | 980,972 | 980,972 | |||||||||
Regulatory assets | 0 | 0 | |||||||||
Accrued expenses | 3,750,466 | 3,750,466 | |||||||||
Rate refund | 1,320,167 | 1,320,167 | |||||||||
Regulatory liabilities | 0 | 0 | |||||||||
Restatement Adjustment [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Accounts Receivable | (169,602) | (169,602) | |||||||||
Unrecovered Costs for Purchased Gas Amount | (922,898) | (922,898) | |||||||||
Other | (293,000) | (293,000) | |||||||||
Regulatory assets | 1,385,500 | 1,385,500 | |||||||||
Accrued expenses | (670,034) | (670,034) | |||||||||
Rate refund | (1,320,167) | (1,320,167) | |||||||||
Regulatory liabilities | $ 1,990,201 | 1,990,201 | |||||||||
Accounting Standards Update 2017-07 [Member] | Restatement Adjustment [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Operations and maintenance | 122,538 | (526,433) | |||||||||
Total operating expenses | 122,538 | (526,433) | |||||||||
Operating income | (122,538) | 526,433 | |||||||||
Other income (expense), net | 122,538 | (526,433) | |||||||||
Income before income taxes | $ 0 | $ 0 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | $ 67,641,080 | $ 65,965,035 | $ 60,515,330 | ||||||||
Revenue reductions (TCJA) | (523,881) | (1,320,167) | |||||||||
Alternative Revenue Programs | 385,445 | (430,299) | 1,781,540 | ||||||||
Revenues | $ 9,851,869 | $ 11,682,950 | $ 25,274,959 | $ 21,216,747 | $ 9,971,142 | $ 11,889,570 | $ 24,917,973 | $ 18,756,051 | 68,026,525 | 65,534,736 | 62,296,870 |
Natural gas | Residential customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | 39,519,618 | 38,926,710 | 34,462,456 | ||||||||
Natural gas | Commercial customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | 22,562,265 | 22,158,226 | 19,913,853 | ||||||||
Natural gas | Industrial and transportation customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | 4,770,657 | 4,316,526 | 4,400,731 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | 1,312,421 | 1,883,740 | 1,738,290 | ||||||||
Gas Utility | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | 66,920,815 | 64,772,082 | 59,470,475 | ||||||||
Revenue reductions (TCJA) | (523,881) | (1,320,167) | |||||||||
Alternative Revenue Programs | 385,445 | (430,299) | 1,781,540 | ||||||||
Revenues | 67,306,260 | 64,341,783 | 61,252,015 | ||||||||
Gas Utility | Natural gas | Residential customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | 39,519,618 | 38,926,710 | 34,462,456 | ||||||||
Gas Utility | Natural gas | Commercial customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | 22,562,265 | 22,158,226 | 19,913,853 | ||||||||
Gas Utility | Natural gas | Industrial and transportation customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | 4,770,657 | 4,316,526 | 4,400,731 | ||||||||
Gas Utility | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | 592,156 | 690,787 | 693,435 | ||||||||
Non Utility | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | 720,265 | 1,192,953 | 1,044,855 | ||||||||
Revenue reductions (TCJA) | 0 | 0 | |||||||||
Alternative Revenue Programs | 0 | 0 | 0 | ||||||||
Revenues | 720,265 | 1,192,953 | 1,044,855 | ||||||||
Non Utility | Natural gas | Residential customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | 0 | 0 | 0 | ||||||||
Non Utility | Natural gas | Commercial customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | 0 | 0 | 0 | ||||||||
Non Utility | Natural gas | Industrial and transportation customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | 0 | 0 | 0 | ||||||||
Non Utility | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total contracts with customers | $ 720,265 | $ 1,192,953 | $ 1,044,855 |
Revenue (Customer Accounts Rece
Revenue (Customer Accounts Receivable) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 3,870,211 | $ 3,744,228 |
Unbilled revenue | 1,236,384 | 911,657 |
Increase (decrease) in unbilled revenue | 324,727 | |
Customer credit balances | 880,295 | 1,003,622 |
Increase (decrease) in customer credit balances | (123,327) | |
Customer deposits | 1,432,031 | 1,421,043 |
Increase (decrease) in customer deposits | 10,988 | |
Trade accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | 2,590,702 | $ 2,675,611 |
Increase (decrease) in trade accounts receivable | $ (84,909) |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) | Jun. 28, 2019 | Oct. 10, 2018 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Public Utilities, General Disclosures [Line Items] | ||||||
Corporate federal income tax rate | 25.74% | |||||
Composite weighted-average depreciation rate | 3.31% | 3.32% | 3.29% | |||
Effect of change in deprecation rate on depreciation expense | $ (32,570) | |||||
Roanoke Gas | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Regulatory liabilities | $ 11,100,000 | $ 11,100,000 | ||||
Regulatory liability, refund period (in years) | 28 years | |||||
General Rate Case | Virginia State Corporate Commission (SCC) | Roanoke Gas | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Requested non-gas rates increase | $ 10,500,000 | |||||
Initial Staff recommended rate increase | $ 6,500,000 | |||||
SAVE Plan and Rider Filing | Virginia State Corporate Commission (SCC) | Roanoke Gas | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved SAVE rates | 1,100,000 | |||||
Refund of SAVE over collection | $ 543,000 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Segment Income to Consolidated) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | $ 9,851,869 | $ 11,682,950 | $ 25,274,959 | $ 21,216,747 | $ 9,971,142 | $ 11,889,570 | $ 24,917,973 | $ 18,756,051 | $ 68,026,525 | $ 65,534,736 | $ 62,296,870 |
Depreciation | 7,454,274 | 6,956,344 | 6,256,737 | ||||||||
Operating income (loss) | 490,702 | $ 1,637,057 | $ 6,203,483 | $ 3,264,222 | 714,341 | $ 1,835,590 | $ 5,276,085 | $ 3,644,491 | 11,595,464 | 11,470,507 | 12,192,742 |
Equity in earnings | 3,020,348 | 938,531 | 421,646 | ||||||||
Interest expense | 3,618,551 | 2,461,565 | 1,917,254 | ||||||||
Income before income taxes | 11,349,143 | 10,192,341 | 10,038,255 | ||||||||
Total assets | 258,353,696 | 219,560,106 | 258,353,696 | 219,560,106 | 183,135,071 | ||||||
Gross additions to utility property | 21,884,317 | 23,290,994 | 20,750,181 | ||||||||
Gross investment in MVP and Southgate | 20,965,907 | 11,036,247 | 2,759,346 | ||||||||
Operating segments | Gas Utility | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 67,306,260 | 64,341,783 | 61,252,015 | ||||||||
Depreciation | 7,454,274 | 6,956,344 | 6,256,737 | ||||||||
Operating income (loss) | 11,458,679 | 11,043,609 | 11,790,728 | ||||||||
Equity in earnings | 0 | 0 | 0 | ||||||||
Interest expense | 2,404,518 | 2,079,553 | 1,778,763 | ||||||||
Income before income taxes | 9,400,869 | 9,208,921 | 9,353,085 | ||||||||
Total assets | 195,969,019 | 181,360,570 | 195,969,019 | 181,360,570 | 162,727,812 | ||||||
Gross additions to utility property | 21,884,317 | 23,290,994 | 20,750,181 | ||||||||
Gross investment in MVP and Southgate | 0 | 0 | 0 | ||||||||
Operating segments | Investment in Affiliates | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 0 | 0 | 0 | ||||||||
Depreciation | 0 | 0 | 0 | ||||||||
Operating income (loss) | (153,149) | (92,981) | (69,515) | ||||||||
Equity in earnings | 3,020,348 | 938,531 | 421,646 | ||||||||
Interest expense | 1,214,033 | 382,012 | 138,491 | ||||||||
Income before income taxes | 1,657,988 | 463,541 | 213,641 | ||||||||
Total assets | 47,429,368 | 28,540,978 | 47,429,368 | 28,540,978 | 7,496,965 | ||||||
Gross additions to utility property | 0 | 0 | 0 | ||||||||
Gross investment in MVP and Southgate | 20,965,907 | 11,036,247 | 2,759,346 | ||||||||
Parent and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating revenues | 720,265 | 1,192,953 | 1,044,855 | ||||||||
Depreciation | 0 | 0 | 0 | ||||||||
Operating income (loss) | 289,934 | 519,879 | 471,529 | ||||||||
Equity in earnings | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Income before income taxes | 290,286 | 519,879 | 471,529 | ||||||||
Total assets | $ 14,955,309 | $ 9,658,558 | 14,955,309 | 9,658,558 | 12,910,294 | ||||||
Gross additions to utility property | 0 | 0 | 0 | ||||||||
Gross investment in MVP and Southgate | $ 0 | $ 0 | $ 0 |
Other Investments (Narrative) (
Other Investments (Narrative) (Details) Bcf in Millions | 1 Months Ended | |||
Apr. 30, 2018USD ($)mi | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Oct. 31, 2015Bcf | |
Investment [Line Items] | ||||
Investments unconsolidated affiliate | $ 47,375,459 | $ 28,507,146 | ||
MVP Investment | RGC Midstream, LLC | ||||
Investment [Line Items] | ||||
Equity interest (as a percent) | 1.00% | 1.00% | ||
Pipeline capacity (in bcf per day) | Bcf | 2 | |||
MVP Investment | Minimum | RGC Midstream, LLC | ||||
Investment [Line Items] | ||||
Total project cost | $ 5,300,000,000 | |||
Total estimated investment | 53,000,000 | |||
MVP Investment | Maximum | RGC Midstream, LLC | ||||
Investment [Line Items] | ||||
Total project cost | 5,500,000,000 | |||
Total estimated investment | $ 55,000,000 | |||
MVP Southgate Investment | RGC Midstream, LLC | ||||
Investment [Line Items] | ||||
Length, planned natural gas pipeline (in miles) | mi | 70 | |||
Ownership percentage (less than) | 1.00% | |||
MVP Southgate Investment | Minimum | RGC Midstream, LLC | ||||
Investment [Line Items] | ||||
Total project cost | $ 350,000,000 | |||
Total estimated investment | 1,800,000 | |||
MVP Southgate Investment | Maximum | RGC Midstream, LLC | ||||
Investment [Line Items] | ||||
Total project cost | 500,000,000 | |||
Total estimated investment | $ 2,500,000 |
Other Investments (Schedule of
Other Investments (Schedule of Other Investments) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Assets: | |||
Investment in unconsolidated affiliate | $ 47,375,459 | $ 28,507,146 | |
Current Liabilities: | |||
Capital contributions payable | 5,024,824 | 10,142,766 | |
Income Statement Location of Other Investments: | |||
Equity in earnings of unconsolidated affiliate | 3,020,348 | 938,531 | $ 421,646 |
Undistributed earnings, net of income taxes, of MVP in retained earnings | 3,267,176 | 1,024,266 | |
Change in investment in unconsolidated affiliate [Abstract] | |||
Cash investment | 20,965,907 | 11,036,247 | 2,759,346 |
Change in accrued capital calls | (5,117,942) | 9,087,262 | 767,710 |
Equity in earnings of unconsolidated affiliate | 3,020,348 | 938,531 | 421,646 |
Change in investment in unconsolidated affiliates | 18,868,313 | 21,062,040 | $ 3,948,702 |
MVP Investment | |||
Other Assets: | |||
MVP | 47,055,426 | 28,387,032 | |
Current Liabilities: | |||
Capital contributions payable | 4,958,260 | 10,022,652 | |
MVP Southgate Investment | |||
Other Assets: | |||
Southgate | 320,033 | 120,114 | |
Current Liabilities: | |||
Capital contributions payable | $ 66,564 | $ 120,114 |
Other Investments (Investment i
Other Investments (Investment in Unconsolidated Entity) (Details) - Mountain Valley Pipeline LLC (Unconsolidated Entity) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement | |||
AFUDC | $ 295,430,776 | $ 90,096,350 | $ 41,848,389 |
Net Other Income | 5,655,644 | 3,433,365 | 327,078 |
Net Income | 301,086,420 | 93,529,715 | $ 42,175,467 |
Assets | |||
Current Assets | 485,323,892 | 1,237,237,542 | |
Construction Work In Progress | 4,675,267,389 | 2,301,591,079 | |
Other Assets | 13,190,816 | 18,165,856 | |
Total Assets | 5,173,782,097 | 3,556,994,477 | |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | |||
Current Liabilities | 466,776,233 | 715,879,655 | |
Capital | 4,707,005,864 | 2,841,114,822 | |
Total Liabilities and Equity | $ 5,173,782,097 | $ 3,556,994,477 |
Line-of-Credit (Narrative) (Det
Line-of-Credit (Narrative) (Details) - USD ($) | Mar. 26, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Instrument [Line Items] | ||||
Promissory Notes term | 20 years | |||
Interest rate on unused line-of-credit (as a percent) | 0.15% | 0.15% | 0.15% | |
Debt covenant, maximum ratio of total long-term debt to total capitalization | 65.00% | |||
Roanoke Gas | Line of Credit | Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2021 | ||||
Debt Instrument [Line Items] | ||||
Promissory Notes term | 2 years | |||
Line-of-credit, maximum borrowing limit | $ 30,000,000 | |||
Interest rate on unused line-of-credit (as a percent) | 0.15% | |||
Minimum interest coverage ratio | 1.5 | |||
Debt covenant, maximum ratio of total long-term debt to total capitalization | 65.00% | |||
30-day LIBOR | Roanoke Gas | Line of Credit | Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2021 | ||||
Debt Instrument [Line Items] | ||||
Variable rate basis points (as a percent) | 1.00% | 1.00% |
Line-of-Credit (Summary of Avai
Line-of-Credit (Summary of Available Limits Under Line of Credit Agreement) (Details) | Sep. 30, 2019USD ($) |
September 30, 2019 | |
Short-term Debt [Line Items] | |
Available Line-of-Credit | $ 22,000,000 |
April 1, 2020 | |
Short-term Debt [Line Items] | |
Available Line-of-Credit | 16,000,000 |
July 17, 2020 | |
Short-term Debt [Line Items] | |
Available Line-of-Credit | 21,000,000 |
September 18, 2020 | |
Short-term Debt [Line Items] | |
Available Line-of-Credit | $ 30,000,000 |
Line-of-Credit (Summary of Line
Line-of-Credit (Summary of Line-of-Credit) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |||
Available line-of-credit at year-end | $ 22,000,000 | $ 20,000,000 | $ 21,000,000 |
Outstanding balance at year-end | 8,172,473 | 7,361,017 | 17,791,760 |
Highest month-end balance outstanding | 15,801,798 | 17,054,377 | 17,791,760 |
Average daily balance | $ 6,049,527 | $ 6,730,334 | $ 10,936,114 |
Average rate of interest during year on outstanding balances (as a percent) | 3.40% | 2.53% | 1.92% |
Interest rate at year-end (as a percent) | 3.02% | 3.26% | 2.23% |
Interest rate on unused line-of-credit (as a percent) | 0.15% | 0.15% | 0.15% |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Dec. 06, 2019USD ($) | Jun. 13, 2019USD ($) | Jun. 12, 2019USD ($)debt_instrument | Mar. 28, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2019USD ($)instrument_held | Feb. 19, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||
Promissory Notes term | 20 years | ||||||||
Retirement of notes payable | $ 24,000,000 | $ 0 | $ 0 | ||||||
Unamortized loss on early retirement of debt deferred as regulatory asset | $ 1,712,808 | $ 1,826,995 | |||||||
Unamortized loss on early retirement of debt, amortization period | 20 years | ||||||||
Debt covenant, maximum ratio of total long-term debt to total capitalization | 65.00% | ||||||||
Roanoke Gas | Unsecured Debt | Unsecured term notes payable, at 3.58%, due October 2, 2027 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated percentage rate | 3.58% | ||||||||
Debt covenant, maximum ratio of priority indebtedness to total assets | 15.00% | ||||||||
Roanoke Gas | Unsecured Debt | Unsecured term notes payable at 4.41%, due on March 28, 2031 | |||||||||
Debt Instrument [Line Items] | |||||||||
Promissory Notes term | 12 years | ||||||||
Debt instrument, face amount | $ 10,000,000 | ||||||||
Stated percentage rate | 4.41% | 4.41% | |||||||
Debt covenant, maximum ratio of priority indebtedness to total assets | 15.00% | ||||||||
Roanoke Gas | Unsecured Debt | Unsecured term note payable, at 30-day LIBOR plus 0.90%, November 1, 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 7,000,000 | ||||||||
Fixed rate related to interest rate swap | 2.30% | ||||||||
Debt covenant, maximum ratio of priority indebtedness to total assets | 15.00% | ||||||||
Roanoke Gas | Unsecured Debt | Unsecured term note payable, at 30-day LIBOR plus 0.90%, November 1, 2021 | 30-day LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate basis points (as a percent) | 0.90% | ||||||||
Roanoke Gas | Unsecured Senior Notes | Unsecured senior notes payable, at 4.26%, due on September 18, 2034 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated percentage rate | 4.26% | ||||||||
Debt covenant, maximum ratio of priority indebtedness to total assets | 15.00% | ||||||||
RGC Midstream, LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of unsecured Promissory Notes funding the investment | 2 | 2 | |||||||
RGC Midstream, LLC | Unsecured Debt | Unsecured term notes payable, at 30-day LIBOR plus 1.35% due December 29, 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Retirement of notes payable | $ 24,000,000 | ||||||||
Debt covenant, maximum ratio of priority indebtedness to total assets | 15.00% | ||||||||
RGC Midstream, LLC | Unsecured Debt | Unsecured term notes payable, at 30-day LIBOR plus 1.35% due December 29, 2020 | 30-day LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate basis points (as a percent) | 1.35% | ||||||||
RGC Midstream, LLC | Unsecured Debt | Unsecured term note payable, at 30-day LIBOR plus 1.15%, due June 12, 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Promissory Notes term | 7 years | ||||||||
Debt instrument, face amount | $ 14,000,000 | $ 14,000,000 | |||||||
Fixed rate related to interest rate swap | 3.24% | 3.24% | |||||||
Debt covenant, maximum ratio of priority indebtedness to total assets | 15.00% | ||||||||
RGC Midstream, LLC | Unsecured Debt | Unsecured term note payable, at 30-day LIBOR plus 1.15%, due June 12, 2026 [Member] | 30-day LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate basis points (as a percent) | 1.15% | 1.15% | |||||||
RGC Midstream, LLC | Unsecured Debt | Unsecured term note payable, at 30-day LIBOR plus 1.20%, due June 1, 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Promissory Notes term | 5 years | ||||||||
Debt instrument, face amount | $ 10,000,000 | $ 10,000,000 | |||||||
Fixed rate related to interest rate swap | 3.14% | 3.14% | |||||||
Debt covenant, maximum ratio of priority indebtedness to total assets | 15.00% | ||||||||
RGC Midstream, LLC | Unsecured Debt | Unsecured term note payable, at 30-day LIBOR plus 1.20%, due June 1, 2024 [Member] | 30-day LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate basis points (as a percent) | 1.20% | 1.20% | |||||||
Maximum | RGC Midstream, LLC | Unsecured Debt | Unsecured term notes payable, at 30-day LIBOR plus 1.35% due December 29, 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 26,000,000 | $ 50,000,000 | |||||||
Scenario, Forecast | Roanoke Gas | Unsecured Debt | Unsecured Term Notes Payable, at 3.60%, due December 6, 2029 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Promissory Notes term | 10 years | ||||||||
Debt instrument, face amount | $ 10,000,000 | ||||||||
Stated percentage rate | 3.60% |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) | Jun. 13, 2019 | Jun. 12, 2019 | Mar. 26, 2019 | Sep. 30, 2019 | Mar. 28, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Principal | |||||||
Notes payable | $ 95,512,200 | $ 63,243,200 | |||||
Line-of-credit | 8,172,473 | 7,361,017 | $ 17,791,760 | ||||
Total | 103,684,673 | 70,604,217 | |||||
Unamortized Debt Issuance Costs | 313,315 | 282,281 | |||||
Notes Payable | |||||||
Principal | |||||||
Notes payable | 95,512,200 | 63,243,200 | |||||
Unamortized Debt Issuance Costs | 313,315 | 282,281 | |||||
Roanoke Gas | Unsecured Senior Notes | Unsecured senior notes payable, at 4.26%, due on September 18, 2034 | |||||||
Principal | |||||||
Notes payable | 30,500,000 | 30,500,000 | |||||
Unamortized Debt Issuance Costs | $ 144,811 | 154,465 | |||||
Stated percentage rate | 4.26% | ||||||
Roanoke Gas | Unsecured Debt | Unsecured term note payable, at 30-day LIBOR plus 0.90%, November 1, 2021 | |||||||
Principal | |||||||
Notes payable | $ 7,000,000 | 7,000,000 | |||||
Unamortized Debt Issuance Costs | $ 6,948 | 10,283 | |||||
Roanoke Gas | Unsecured Debt | Unsecured term note payable, at 30-day LIBOR plus 0.90%, November 1, 2021 | 30-day LIBOR | |||||||
Principal | |||||||
Variable rate basis points (as a percent) | 0.90% | ||||||
Roanoke Gas | Unsecured Debt | Unsecured term notes payable, at 3.58% due on October 2, 2027 | |||||||
Principal | |||||||
Notes payable | $ 8,000,000 | 8,000,000 | |||||
Unamortized Debt Issuance Costs | $ 38,528 | 43,343 | |||||
Stated percentage rate | 3.58% | ||||||
Roanoke Gas | Unsecured Debt | Unsecured term notes payable at 4.41%, due on March 28, 2031 | |||||||
Principal | |||||||
Notes payable | $ 10,000,000 | 0 | |||||
Unamortized Debt Issuance Costs | $ 36,272 | 0 | |||||
Stated percentage rate | 4.41% | 4.41% | |||||
Roanoke Gas | Line of Credit | Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2021 | |||||||
Principal | |||||||
Line-of-credit | 7,361,017 | ||||||
Unamortized Debt Issuance Costs | $ 0 | 0 | |||||
Roanoke Gas | Line of Credit | Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2021 | 30-day LIBOR | |||||||
Principal | |||||||
Variable rate basis points (as a percent) | 1.00% | 1.00% | |||||
RGC Midstream, LLC | Unsecured Debt | Unsecured term notes payable, at 30-day LIBOR plus 1.35% due December 29, 2020 | |||||||
Principal | |||||||
Notes payable | $ 16,012,200 | 17,743,200 | |||||
Unamortized Debt Issuance Costs | $ 59,504 | 74,190 | |||||
RGC Midstream, LLC | Unsecured Debt | Unsecured term notes payable, at 30-day LIBOR plus 1.35% due December 29, 2020 | 30-day LIBOR | |||||||
Principal | |||||||
Variable rate basis points (as a percent) | 1.35% | ||||||
RGC Midstream, LLC | Unsecured Debt | Unsecured term note payable, at 30-day LIBOR plus 1.15%, due June 12, 2026 [Member] | |||||||
Principal | |||||||
Notes payable | $ 14,000,000 | 0 | |||||
Unamortized Debt Issuance Costs | $ 16,252 | 0 | |||||
RGC Midstream, LLC | Unsecured Debt | Unsecured term note payable, at 30-day LIBOR plus 1.15%, due June 12, 2026 [Member] | 30-day LIBOR | |||||||
Principal | |||||||
Variable rate basis points (as a percent) | 1.15% | 1.15% | |||||
RGC Midstream, LLC | Unsecured Debt | Unsecured term note payable, at 30-day LIBOR plus 1.20%, due June 1, 2024 [Member] | |||||||
Principal | |||||||
Notes payable | $ 10,000,000 | 0 | |||||
Unamortized Debt Issuance Costs | $ 11,000 | $ 0 | |||||
RGC Midstream, LLC | Unsecured Debt | Unsecured term note payable, at 30-day LIBOR plus 1.20%, due June 1, 2024 [Member] | 30-day LIBOR | |||||||
Principal | |||||||
Variable rate basis points (as a percent) | 1.20% | 1.20% |
Long-Term Debt (Summary of Aggr
Long-Term Debt (Summary of Aggregate Maturities of Long-Term Debt) (Details) - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
Maturities | ||
2020 | $ 0 | |
2021 | 24,184,673 | |
2022 | 7,000,000 | |
2023 | 0 | |
2024 | 10,000,000 | |
Thereafter | 62,500,000 | |
Total | $ 103,684,673 | $ 70,604,217 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Corporate federal income tax rate | 21.00% | 24.30% | 34.00% |
Deferred tax liability decrease, tax reform | $ 9,000,000 | ||
Regulatory liability - deferred income taxes, gross | 11,800,000 | ||
Gross-up to pre-tax basis, tax reform | 3,000,000 | ||
Revaluation of unregulated deferred taxes to 21% | $ 0 | $ 256,444 | $ 0 |
Income Taxes (Details of Income
Income Taxes (Details of Income Tax Expense) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Current income taxes: | |||
Federal | $ 1,698,215 | $ 1,831,085 | $ 72,368 |
State | 268,488 | 308,057 | 407,643 |
Total current income taxes | 1,966,703 | 2,139,142 | 480,011 |
Deferred income taxes: | |||
Federal | 272,079 | 440,282 | 3,129,925 |
State | 411,949 | 315,712 | 195,454 |
Total deferred income taxes | 684,028 | 755,994 | 3,325,379 |
Total income tax expense | $ 2,650,731 | $ 2,895,136 | $ 3,805,390 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Tax Expense Based on Federal Statutory Rate) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes | $ 11,349,143 | $ 10,192,341 | $ 10,038,255 |
Corporate federal income tax rate | 21.00% | 24.30% | 34.00% |
Income tax expense computed at the federal statutory rate | $ 2,383,320 | $ 2,476,739 | $ 3,413,007 |
State income taxes, net of federal income tax benefit | 537,545 | 472,193 | 398,044 |
Revaluation of unregulated deferred taxes to 21% | 0 | 256,444 | 0 |
Net amortization of excess deferred taxes on regulated operations | (212,896) | (264,106) | 0 |
Tax benefit recognized on stock compensation | (96,499) | (68,364) | (26,421) |
Other, net | 39,261 | 22,230 | 20,760 |
Total income tax expense | $ 2,650,731 | $ 2,895,136 | $ 3,805,390 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
Deferred tax assets: | ||
Allowance for uncollectibles | $ 28,503 | $ 26,658 |
Accrued pension and postretirement medical benefits | 782,592 | 897,834 |
Regulatory effect of change in federal income tax rate | 2,867,383 | 2,946,649 |
Accrued vacation | 150,882 | 160,001 |
Over-recovery of gas costs | 23,979 | 0 |
Cost of gas held in storage | 590,495 | 591,899 |
Deferred compensation | 803,979 | 716,843 |
Interest rate swap | 230,204 | 0 |
Rate refund | 130,063 | 339,812 |
Other | 261,125 | 298,129 |
Total gross deferred tax assets | 5,869,205 | 5,977,825 |
Deferred tax liabilities: | ||
Utility plant | 18,132,022 | 17,982,215 |
Under-recovery of gas costs | 0 | 255,570 |
MVP investment | 705,193 | 245,678 |
Other | 10,513 | 79,939 |
Total gross deferred tax liabilities | 18,847,728 | 18,563,402 |
Net deferred tax liability | $ 12,978,523 | $ 12,585,577 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected amount of accumulated other comprehensive loss recognized in net periodic benefit costs | $ 90,000 | ||
Expected amount of deferred regulatory assets to be recognized in net periodic benefit costs | 603,000 | ||
Company's matching contribution | $ 348,369 | $ 338,066 | $ 361,702 |
First Portion Match | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employers percentage match of employees match percentage | 100.00% | ||
Percentage of employee's gross pay that is matched by the employer | 4.00% | ||
Second Portion Match | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employers percentage match of employees match percentage | 50.00% | ||
Percentage of employee's gross pay that is matched by the employer | 2.00% | ||
Additional discretionary payment to employees hired beginning January 2017 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's matching contribution | $ 21,829 | $ 9,637 | |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee contribution percent | 1.00% | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee contribution percent | 50.00% | ||
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Years until benefits are fully vested | 5 years | ||
Expected long-term rate of return on plan assets | 5.50% | 7.00% | 7.00% |
Expected employer contributions in next fiscal year | $ 800,000 | ||
Pension Plan | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation, percentage | 40.00% | 60.00% | |
Postretirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum service requirement for postretirement benefit vesting | 10 years | ||
Retirement age requirement, postretirement plan | 55 years | ||
Expected long-term rate of return on plan assets | 4.30% | 4.84% | 4.84% |
Expected employer contributions in next fiscal year | $ 400,000 | ||
Postretirement Plan | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation, percentage | 50.00% |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Changes in Benefit Obligations and Fair Value of Plan Assets, Funded Status of the Plan, and Amount Recognized in the Financial Statements) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Change in fair value of plan assets: | |||
Noncurrent liabilities | $ (6,912,105) | $ (3,947,967) | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 30,927,973 | 25,199,762 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 28,850,299 | 29,657,347 | |
Service cost | 537,268 | 665,235 | $ 706,677 |
Interest cost | 1,166,728 | 1,088,180 | 995,598 |
Actuarial (gain) loss | 5,901,915 | (1,727,767) | |
Benefit payments, net of retiree contributions | (905,223) | (832,696) | |
Benefit obligation at end of year | 35,550,987 | 28,850,299 | 29,657,347 |
Change in fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 28,184,697 | 26,418,671 | |
Actual return on plan assets, net of taxes | 3,907,197 | 1,798,722 | |
Employer contributions | 2,400,000 | 800,000 | |
Benefit payments, net of retiree contributions | (905,223) | (832,696) | |
Fair value of plan assets at end of year | 33,586,671 | 28,184,697 | 26,418,671 |
Funded status | (1,964,316) | (665,602) | |
Noncurrent liabilities | (1,964,316) | (665,602) | |
Net actuarial loss, net of tax | 1,047,063 | 361,215 | |
Total amounts included in other comprehensive loss, net of tax | 1,047,063 | 361,215 | |
Net actuarial loss | 6,356,201 | 3,894,221 | |
Amounts recognized as regulatory assets | 6,356,201 | 3,894,221 | |
Postretirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 18,030,399 | 16,207,322 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 16,207,322 | 17,666,812 | |
Service cost | 132,882 | 167,220 | 183,267 |
Interest cost | 648,944 | 640,602 | 626,822 |
Actuarial (gain) loss | 1,530,522 | (1,774,320) | |
Benefit payments, net of retiree contributions | (489,271) | (492,992) | |
Benefit obligation at end of year | 18,030,399 | 16,207,322 | 17,666,812 |
Change in fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 12,924,957 | 12,691,162 | |
Actual return on plan assets, net of taxes | 346,924 | 426,787 | |
Employer contributions | 300,000 | 300,000 | |
Benefit payments, net of retiree contributions | (489,271) | (492,992) | |
Fair value of plan assets at end of year | 13,082,610 | 12,924,957 | $ 12,691,162 |
Funded status | (4,947,789) | (3,282,365) | |
Noncurrent liabilities | (4,947,789) | (3,282,365) | |
Net actuarial loss, net of tax | 777,717 | 741,077 | |
Total amounts included in other comprehensive loss, net of tax | 777,717 | 741,077 | |
Net actuarial loss | 3,661,168 | 2,103,497 | |
Amounts recognized as regulatory assets | $ 3,661,168 | $ 2,103,497 |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Actuarial Assumptions Used) (Details) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pension Plan | |||
Assumptions used to determine benefit obligations: | |||
Discount rate | 3.03% | 4.11% | 3.72% |
Expected rate of compensation increase | 4.00% | 4.00% | 4.00% |
Assumptions used to determine benefit costs: | |||
Discount rate | 4.11% | 3.72% | 3.42% |
Expected long-term rate of return on plan assets | 5.50% | 7.00% | 7.00% |
Expected rate of compensation increase | 4.00% | 4.00% | 4.00% |
Postretirement Plan | |||
Assumptions used to determine benefit obligations: | |||
Discount rate | 3.00% | 4.09% | 3.69% |
Assumptions used to determine benefit costs: | |||
Discount rate | 4.09% | 3.69% | 3.33% |
Expected long-term rate of return on plan assets | 4.30% | 4.84% | 4.84% |
Employee Benefit Plans (Sched_3
Employee Benefit Plans (Schedule of Components of Net Periodic Cost) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 537,268 | $ 665,235 | $ 706,677 |
Interest cost | 1,166,728 | 1,088,180 | 995,598 |
Expected return on plan assets | (1,549,437) | (1,862,838) | (1,616,412) |
Recognized loss | 158,599 | 351,030 | 662,180 |
Net periodic benefit cost | 313,158 | 241,607 | 748,043 |
Postretirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 132,882 | 167,220 | 183,267 |
Interest cost | 648,944 | 640,602 | 626,822 |
Expected return on plan assets | (547,218) | (623,381) | (571,513) |
Recognized loss | 123,805 | 283,868 | 429,758 |
Net periodic benefit cost | $ 358,413 | $ 468,309 | $ 668,334 |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of Assumed Health Care Cost Trend Rates Used) (Details) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pre 65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | 7.00% | 7.00% | 7.00% |
Rate to which the cost trend is assumed to decline (the ultimate trend rate) | 5.50% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2022 | 2026 | 2021 |
Post 65 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | 5.20% | 5.00% | 5.00% |
Rate to which the cost trend is assumed to decline (the ultimate trend rate) | 5.20% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2019 | 2018 | 2017 |
Employee Benefit Plans (Effect
Employee Benefit Plans (Effect of a 1% Change in Health Care Cost Trend Rate Assumptions) (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($) | |
1% Increase | |
Effect on total service and interest cost components | $ 136 |
Effect on accumulated postretirement benefit obligation | 2,954 |
1% Decrease | |
Effect on total service and interest cost components | (109) |
Effect on accumulated postretirement benefit obligation | $ (2,387) |
Employee Benefit Plans (Sched_4
Employee Benefit Plans (Schedule of Target and Actual Asset Allocation) (Details) | Sep. 30, 2019 | Sep. 30, 2018 |
Pension Plan | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 40.00% | 60.00% |
Actual | 40.00% | 40.00% |
Pension Plan | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 60.00% | |
Actual | 59.00% | 59.00% |
Pension Plan | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 0.00% | |
Actual | 1.00% | 1.00% |
Pension Plan | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 0.00% | |
Actual | 0.00% | 0.00% |
Postretirement Plan | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 50.00% | |
Actual | 49.00% | 49.00% |
Postretirement Plan | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 50.00% | |
Actual | 50.00% | 50.00% |
Postretirement Plan | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 0.00% | |
Actual | 1.00% | 1.00% |
Postretirement Plan | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 0.00% | |
Actual | 0.00% | 0.00% |
Employee Benefit Plans (Summa_2
Employee Benefit Plans (Summary of Fair Value Classifications of Benefit Plan Assets ) (Details) - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 33,586,671 | $ 28,184,697 | $ 26,418,671 |
Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,943,321 | 1,635,822 | |
Pension Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 31,643,350 | 26,548,875 | |
Pension Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 371,780 | 282,478 | |
Pension Plan | Cash | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 371,780 | 282,478 | |
Pension Plan | Cash | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Cash | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Liability Driven Investment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 19,702,561 | 16,504,956 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Liability Driven Investment | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Liability Driven Investment | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 19,702,561 | 16,504,956 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Liability Driven Investment | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 4,069,197 | 3,449,486 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Growth | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Growth | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 4,069,197 | 3,449,486 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Growth | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 4,055,518 | 3,381,285 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 4,055,518 | 3,381,285 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Large Cap Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Small/Mid Cap Core | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 2,032,084 | 1,685,352 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Small/Mid Cap Core | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Small/Mid Cap Core | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 2,032,084 | 1,685,352 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Domestic Small/Mid Cap Core | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Foreign Large Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,783,990 | 1,527,796 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Foreign Large Cap Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Foreign Large Cap Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,783,990 | 1,527,796 | |
Pension Plan | Common and Collective Trust and Pooled Funds | Foreign Large Cap Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Mutual Funds | Foreign Large Cap Growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,227,981 | 1,060,383 | |
Pension Plan | Mutual Funds | Foreign Large Cap Growth | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,227,981 | 1,060,383 | |
Pension Plan | Mutual Funds | Foreign Large Cap Growth | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Mutual Funds | Foreign Large Cap Growth | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Mutual Funds | Foreign Large Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 343,560 | 292,961 | |
Pension Plan | Mutual Funds | Foreign Large Cap Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 343,560 | 292,961 | |
Pension Plan | Mutual Funds | Foreign Large Cap Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Pension Plan | Mutual Funds | Foreign Large Cap Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 13,082,610 | 12,924,957 | $ 12,691,162 |
Postretirement Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 13,054,626 | 12,895,937 | |
Postretirement Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 27,984 | 29,020 | |
Postretirement Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 66,860 | 96,117 | |
Postretirement Plan | Cash | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 66,860 | 96,117 | |
Postretirement Plan | Cash | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Cash | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 5,987,248 | 5,859,588 | |
Postretirement Plan | Mutual Funds | Domestic Fixed Income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 5,987,248 | 5,859,588 | |
Postretirement Plan | Mutual Funds | Domestic Fixed Income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Fixed Income | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Foreign Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 611,196 | 609,722 | |
Postretirement Plan | Mutual Funds | Foreign Fixed Income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 611,196 | 609,722 | |
Postretirement Plan | Mutual Funds | Foreign Fixed Income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Foreign Fixed Income | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,909,836 | 1,926,076 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Growth | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,909,836 | 1,926,076 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Growth | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Growth | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,931,615 | 1,874,643 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,931,615 | 1,874,643 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Large Cap Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 210,251 | 214,180 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Growth | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 210,251 | 214,180 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Growth | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Growth | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 214,034 | 210,891 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 214,034 | 210,891 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Core | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 464,526 | 459,363 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Core | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 464,526 | 459,363 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Core | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Domestic Small/Mid Cap Core | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 489,286 | 525,720 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Growth | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 489,286 | 525,720 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Growth | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Growth | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,098,992 | 1,090,851 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 1,098,992 | 1,090,851 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Core | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 70,782 | 28,786 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Core | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 70,782 | 28,786 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Core | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Foreign Large Cap Core | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 27,984 | 29,020 | |
Postretirement Plan | Mutual Funds | Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 0 | 0 | |
Postretirement Plan | Mutual Funds | Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 27,984 | 29,020 | |
Postretirement Plan | Mutual Funds | Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 0 | $ 0 |
Employee Benefit Plans (Sched_5
Employee Benefit Plans (Schedule of Expected Future Benefit Payments) (Details) | Sep. 30, 2019USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 995,393 |
2021 | 1,050,564 |
2022 | 1,134,262 |
2023 | 1,222,806 |
2024 | 1,316,860 |
2025-2029 | 7,825,994 |
Postretirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 633,473 |
2021 | 685,678 |
2022 | 732,085 |
2023 | 790,242 |
2024 | 794,515 |
2025-2029 | $ 4,039,665 |
Common Stock Options (Narrative
Common Stock Options (Narrative) (Details) - shares | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Number of shares available for future grant (in shares) | 36,000 | ||
Award vesting period | 6 months | ||
Award expiration period | 10 years | ||
Options granted (in shares) | 0 | 0 | 25,500 |
Expected exercise term (years) | 7 years |
Common Stock Options (Fair Valu
Common Stock Options (Fair Value Assumptions) (Details) | 12 Months Ended |
Sep. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | |
Expected volatility (as a percent) | 26.09% |
Expected dividends (as a percent) | 3.81% |
Expected exercise term (years) | 7 years |
Risk-free interest rate | 2.20% |
Common Stock Options (Schedule
Common Stock Options (Schedule of Stock Option Activity) (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Number of Shares | ||||
Options outstanding, beginning balance (in shares) | 100,000 | 101,575 | 87,300 | |
Options granted (in shares) | 0 | 0 | 25,500 | |
Options exercised (in shares) | (31,508) | (1,575) | (11,225) | |
Options expired (in shares) | 0 | 0 | 0 | |
Options forfeited (in shares) | 0 | 0 | 0 | |
Options outstanding, ending balance (in shares) | 68,492 | 100,000 | 101,575 | 87,300 |
Vested and exercisable at end of period (in shares) | 68,492 | |||
Weighted- Average Exercise Price | ||||
Options outstanding, beginning balance (in usd per share) | $ 14.34 | $ 14.31 | $ 13.50 | |
Options granted (in usd per share) | 0 | 0 | 16.37 | |
Options exercised (in usd per share) | 13.08 | 12.66 | 12.67 | |
Options expired (in usd per share) | 0 | 0 | 0 | |
Options forfeited (in usd per share) | 0 | 0 | 0 | |
Options outstanding, ending balance (in usd per share) | 14.91 | $ 14.34 | $ 14.31 | $ 13.50 |
Vested and exercisable at end of period (in usd per share) | $ 14.91 | |||
Options, Additional Disclosures | ||||
Weighted- Average Remaining Contractual Terms (years) | 6 years 2 months | 6 years 7 months | 7 years 7 months | 7 years 10 months |
Weighted-Average Remaining Contractual Term, Vested and exercisable at September 30, 2017 | 6 years 2 months | |||
Aggregate Intrinsic Value | $ 981,170 | $ 1,237,286 | $ 1,448,338 | $ 200,211 |
Aggregate Intrinsic Value, Vested and exercisable at end of period | $ 981,170 | |||
Weighted-average grant date option fair value (in usd per share) | $ 0 | $ 0 | $ 2.89 | |
Stock option expense | $ 0 | $ 0 | $ 73,780 | |
Intrinsic value of options exercised | 456,002 | 15,256 | 99,929 | |
Proceeds from exercise of stock options | $ 412,179 | $ 19,945 | $ 142,241 |
Other Stock Plans (Narrative) (
Other Stock Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance (in shares) | 36,000 | ||
Dividend Reinvestment and Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum amount shareholders can partake in the DRIP plan | $ 40,000 | ||
Number of shares issued under the Dividend Reinvestment and Stock Purchase Plan | 26,716 | 31,744 | 36,446 |
Shares of stock available for issuance under the DRIP Plan | 390,513 | ||
Restricted Stock Plan for Outside Directors | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum allowed percent of retainer fee that can be paid in common stock | 100.00% | ||
Minimum percentage of monthly retainer fee paid in shares of common stock | 40.00% | ||
Minimum number of shares that must be owned to avoid percentage of monthly retainer fee paid in shares of common stock | 10,000 | ||
Value of shares issued under the plan | $ 178,100 | $ 177,800 | $ 99,400 |
Stock forfeited during the period (in shares) | 0 | 0 | 0 |
Shares available for issuance (in shares) | 65,208 | ||
RGC Resources, Inc. Restricted Stock Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Value of shares issued under the plan | $ 282,365 | $ 188,388 | |
Stock forfeited during the period (in shares) | 0 | 0 | |
Shares available for issuance (in shares) | 429,151 | ||
Stock Bonus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Value of shares issued under the plan | $ 0 | $ 0 | $ 30,154 |
Shares available for issuance (in shares) | 4,785 | ||
Shares issued under the plan (shares) | 0 | 0 | 1,628 |
Other Stock Plans (Director Com
Other Stock Plans (Director Compensation Activity) (Details) - Restricted Stock Plan for Outside Directors - Restricted Stock - $ / shares | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Shares | |||
Beginning of year balance (in shares) | 98,302 | 111,893 | 107,023 |
Granted (in shares) | 6,378 | 6,692 | 4,870 |
Vested (in shares) | 0 | (20,283) | 0 |
Forfeited (in shares) | 0 | 0 | 0 |
End of year balance (in shares) | 104,680 | 98,302 | 111,893 |
Weighted-Average Fair Value on Date of Grant | |||
Beginning of year balance (in usd per share) | $ 11.51 | $ 10.56 | $ 10.11 |
Granted (in usd per share) | 27.93 | 26.57 | 16.77 |
Vested (in usd per share) | 0 | 11.20 | 0 |
Forfeited (in usd per share) | 0 | 0 | 0 |
End of year balance (in usd per share) | $ 12.51 | $ 11.51 | $ 10.56 |
Other Stock Plans (Officer Comp
Other Stock Plans (Officer Compensation Activity) (Details) - RGC Resources, Inc. Restricted Stock Plan - Restricted Stock - $ / shares | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Shares | ||
Beginning of year balance (in shares) | 6,734 | 0 |
Granted (in shares) | 10,227 | 10,101 |
Vested (in shares) | (6,776) | (3,367) |
Forfeited (in shares) | 0 | 0 |
End of year balance (in shares) | 10,185 | 6,734 |
Weighted-Average Fair Value on Date of Grant | ||
Beginning of year balance (in usd per share) | $ 26.33 | $ 0 |
Granted (in usd per share) | 29.80 | 26.33 |
Vested (in usd per share) | 28.08 | 26.33 |
Forfeited (in usd per share) | 0 | 0 |
End of year balance (in usd per share) | $ 28.65 | $ 26.33 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Asset management contract term | 3 years | |||
Product Information [Line Items] | ||||
Franchise agreement term | 20 years | |||
Franchise fee annual increase | 3.00% | |||
Franchise fee, total cost through end of agreement | $ 2,405,109 | |||
Natural Gas Pipeline and Storage Capacity | ||||
Product Information [Line Items] | ||||
Cost of gas - utility | $ 30,317,000 | $ 31,137,000 | $ 28,496,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Volumetric Obligations) (Details) | Sep. 30, 2019MMBTU |
Commitments and Contingencies Disclosure [Abstract] | |
2019-2020 | 2,071,061 |
2020-2021 | 295,866 |
Total | 2,366,927 |
Commitments and Contingencies_4
Commitments and Contingencies (Schedule of Pipeline and Storage Capacity Obligations) (Details) | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019-2020 | $ 11,532,130 |
2020-2021 | 11,532,130 |
2021-2022 | 10,858,922 |
2022-2023 | 7,351,348 |
2023-2024 | 5,593,093 |
Thereafter | 3,916,965 |
Total | $ 50,784,588 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis) (Details) - Estimate of Fair Value Measurement - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
Quoted Prices in Active Markets Level 1 | ||
Liabilities: | ||
Total | $ 0 | $ 0 |
Significant Other Observable Inputs Level 2 | ||
Liabilities: | ||
Total | 0 | 0 |
Significant Unobservable Inputs Level 3 | ||
Liabilities: | ||
Total | 100,900,952 | 62,435,237 |
Fair Value, Recurring | ||
Assets: | ||
Total | 310,563 | |
Liabilities: | ||
Natural gas purchases | 397,757 | 693,495 |
Total | 1,292,098 | 693,495 |
Fair Value, Recurring | Quoted Prices in Active Markets Level 1 | ||
Assets: | ||
Total | 0 | |
Liabilities: | ||
Natural gas purchases | 0 | 0 |
Total | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs Level 2 | ||
Assets: | ||
Total | 310,563 | |
Liabilities: | ||
Natural gas purchases | 397,757 | 693,495 |
Total | 1,292,098 | 693,495 |
Fair Value, Recurring | Significant Unobservable Inputs Level 3 | ||
Assets: | ||
Total | 0 | |
Liabilities: | ||
Natural gas purchases | 0 | 0 |
Total | 0 | 0 |
Interest Rate Swap | Fair Value, Recurring | ||
Assets: | ||
Interest rate swap | 310,563 | |
Liabilities: | ||
Interest rate swaps | 894,341 | |
Interest Rate Swap | Fair Value, Recurring | Quoted Prices in Active Markets Level 1 | ||
Assets: | ||
Interest rate swap | 0 | |
Liabilities: | ||
Interest rate swaps | 0 | |
Interest Rate Swap | Fair Value, Recurring | Significant Other Observable Inputs Level 2 | ||
Assets: | ||
Interest rate swap | 310,563 | |
Liabilities: | ||
Interest rate swaps | 894,341 | |
Interest Rate Swap | Fair Value, Recurring | Significant Unobservable Inputs Level 3 | ||
Assets: | ||
Interest rate swap | $ 0 | |
Liabilities: | ||
Interest rate swaps | $ 0 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of the Fair Value of Financial Assets and Liabilities Not Adjusted to Fair Value) (Details) - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
Reported Value Measurement | ||
Liabilities: | ||
Notes payable | $ 95,512,200 | $ 63,243,200 |
Total | 95,512,200 | 63,243,200 |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets Level 1 | ||
Liabilities: | ||
Notes payable | 0 | 0 |
Total | 0 | 0 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs Level 2 | ||
Liabilities: | ||
Notes payable | 0 | 0 |
Total | 0 | 0 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs Level 3 | ||
Liabilities: | ||
Notes payable | 100,900,952 | 62,435,237 |
Total | $ 100,900,952 | $ 62,435,237 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 12 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Treasury rate, period | 20 years |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating revenues | $ 9,851,869 | $ 11,682,950 | $ 25,274,959 | $ 21,216,747 | $ 9,971,142 | $ 11,889,570 | $ 24,917,973 | $ 18,756,051 | $ 68,026,525 | $ 65,534,736 | $ 62,296,870 |
Operating income | 490,702 | 1,637,057 | 6,203,483 | 3,264,222 | 714,341 | 1,835,590 | 5,276,085 | 3,644,491 | 11,595,464 | 11,470,507 | 12,192,742 |
Net income | $ 455,605 | $ 1,138,555 | $ 4,670,090 | $ 2,434,162 | $ 684,459 | $ 1,087,355 | $ 3,465,929 | $ 2,059,462 | $ 8,698,412 | $ 7,297,205 | $ 6,232,865 |
Earnings per share of common stock: | |||||||||||
Basic (in usd per share) | $ 0.06 | $ 0.14 | $ 0.58 | $ 0.30 | $ 0.09 | $ 0.14 | $ 0.47 | $ 0.28 | $ 1.08 | $ 0.95 | $ 0.86 |
Diluted (in usd per share) | $ 0.06 | $ 0.14 | $ 0.58 | $ 0.30 | $ 0.09 | $ 0.14 | $ 0.47 | $ 0.28 | $ 1.08 | $ 0.95 | $ 0.86 |
Subsequent Events (Details)
Subsequent Events (Details) - MVP Investment - RGC Midstream, LLC - USD ($) $ in Millions | Nov. 08, 2019 | Sep. 30, 2019 | Oct. 31, 2015 |
Subsequent Event [Line Items] | |||
Equity interest (as a percent) | 1.00% | 1.00% | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Estimated pro rata increase in MVP at project completion | $ 1.6 | ||
Equity interest (as a percent) | 1.03% |