CORNING NATURAL GAS CORPORATION AND SUBSIDIARY

Consolidated Balance Sheets

September 30, 2000 and 1999

Assets

2000

1999

Utility plant:

Utility property, plant and equipment:

$22,251,342

$21,667,115

Non-utility - property, plant and equipment

4,176,447

3,941,232

Less accumulated depreciation

9,734,579

9,113,046

Total plant utility and non-utility net

16,693,210

16,495,301

Investments:

Marketable securities available for sale at fair value

1,334,094

1,021,696

Investment in joint venture

174,794

---

Total investments

1,508,888

1,021,696

Current assets:

Cash and cash equivalents

257,035

205,787

Customer accounts receivable, less allowance for

uncollectible accounts of $97,000 in 2000 and 1999

1,310,689

1,883,915

Gas stored underground, at average cost

2,194,436

134,650

Gas and appliance inventories

638,891

634,348

Prepaid expenses

529,905

427,458

Prepaid income taxes

354,619

340,328

Deferred income tax assets

---

11,000

Total current assets

5,285,575

3,637,486

Deferred debits and other assets:

Regulatory assets:

Income taxes recoverable through rates

1,016,661

1,016,661

Prepaid pension costs

1,833,979

1,380,984

Unrecovered gas costs

1,362,394

---

Other

---

196,707

Goodwill net of amortization of $220,031 in 2000

and $131,744 in 1999

1,763,338

1,851,625

Unamortized debt issuance cost (net of amortization

349,759

371,317

of $189,814 in 2000 and $168,256 in 1999)

Other

512,708

541,994

Total deferred debits and other assets

6,838,839

5,359,288

Total assets

$30,326,512

$26,513,771

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See accompanying notes to consolidated financial statements.