Regulatory mechanism threshold (in percent)

  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended June 30, 2022 |  | Three Months Ended June 30, 2021 |
|  | Distribution |  | Pipeline and Storage |  | Distribution |  | Pipeline and Storage |
|  | (In thousands) |
| Gas sales revenues: |  |  |  |  |  |  |  |
| Residential | $ | 441,806  |  |  | $ | —  |  |  | $ | 336,016  |  |  | $ | —  |  |
| Commercial | 231,309  |  |  | —  |  |  | 157,314  |  |  | —  |  |
| Industrial | 57,045  |  |  | —  |  |  | 25,348  |  |  | —  |  |
| Public authority and other | 13,080  |  |  | —  |  |  | 8,870  |  |  | —  |  |
| Total gas sales revenues | 743,240  |  |  | —  |  |  | 527,548  |  |  | —  |  |
| Transportation revenues | 27,216  |  |  | 186,405  |  |  | 25,903  |  |  | 164,619  |  |
| Miscellaneous revenues | 2,453  |  |  | 3,104  |  |  | 2,615  |  |  | 3,895  |  |
| Revenues from contracts with customers | 772,909  |  |  | 189,509  |  |  | 556,066  |  |  | 168,514  |  |
| Alternative revenue program revenues (1) | (77) |  |  | (6,097) |  |  | 2,206  |  |  | (5,527) |  |
| Other revenues | 479  |  |  | —  |  |  | 478  |  |  | —  |  |
| Total operating revenues | $ | 773,311  |  |  | $ | 183,412  |  |  | $ | 558,750  |  |  | $ | 162,987  |  |



|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |
|  | Nine Months Ended June 30, 2022 |  | Nine Months Ended June 30, 2021 |
|  | Distribution |  | Pipeline and Storage |  | Distribution |  | Pipeline and Storage |
|  | (In thousands) |
| Gas sales revenues: |  |  |  |  |  |  |  |
| Residential | $ | 2,108,349  |  |  | $ | —  |  |  | $ | 1,821,570  |  |  | $ | —  |  |
| Commercial | 910,400  |  |  | —  |  |  | 692,443  |  |  | —  |  |
| Industrial | 160,098  |  |  | —  |  |  | 81,122  |  |  | —  |  |
| Public authority and other | 54,668  |  |  | —  |  |  | 42,159  |  |  | —  |  |
| Total gas sales revenues | 3,233,515  |  |  | —  |  |  | 2,637,294  |  |  | —  |  |
| Transportation revenues | 87,886  |  |  | 514,114  |  |  | 84,643  |  |  | 480,945  |  |
| Miscellaneous revenues | 7,732  |  |  | 11,931  |  |  | 8,336  |  |  | 12,921  |  |
| Revenues from contracts with customers | 3,329,133  |  |  | 526,045  |  |  | 2,730,273  |  |  | 493,866  |  |
| Alternative revenue program revenues (1) | 25,663  |  |  | (15,968) |  |  | (13,666) |  |  | (16,998) |  |
| Other revenues | 1,483  |  |  | —  |  |  | 1,467  |  |  | —  |  |
| Total operating revenues | $ | 3,356,279  |  |  | $ | 510,077  |  |  | $ | 2,718,074  |  |  | $ | 476,868  |  |

(1)    In our distribution segment, we have weather-normalization adjustment mechanisms that serve to mitigate the effects of weather on our revenue. Additionally, APT has a regulatory mechanism that requires that we share with its tariffed customers 75% of the difference between the total non-tariffed revenues earned during a test period and a regulatorily determined revenue benchmark.Accounts receivable and allowance for uncollectible accountsAccounts receivable arise from natural gas sales to residential, commercial, industrial, public authority and other customers. Our accounts receivable balance includes unbilled amounts which represent a customer’s consumption of gas from the date of the last cycle billing through the last day of the month. The receivable balances are short term and generally do not extend beyond one month. To minimize credit risk, we assess the credit worthiness of new customers, require deposits where necessary, assess late fees, pursue collection activities and disconnect service for nonpayment. After disconnection, accounts are written off when deemed uncollectible. Our policy related to the accounting for our allowance for uncollectible accounts is fully described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021. During the nine months ended June 30, 2022, there were no material changes to this policy. Rollforwards of our allowance for uncollectible accounts for the three and nine months ended June 30, 2022 and 2021 are presented in the table below. The allowance excludes the gas cost portion of customers’ bills for approximately 79 percent of our customers as we have the ability to collect these gas costs through our gas cost recovery mechanisms in most of our jurisdictions.12
