CORNING NATURAL GAS CORPORATION AND SUBSIDIARY

Consolidated Balance Sheets

September 30, 2000 and 1999

2000

1999

Capitalization and liabilities:

Common stockholders' equity:

Common stock (common stock $5.00 par

$2,300,000

$2,300,000

value per share. Authorized 1,000,000

shares; issued and outstanding 460,000 shares)

Other paid-in capital

653,346

653,346

Retained earnings

1,967,389

2,093,937

Accumulated other comprehensive income-

net unrealized gain on securities available

for sale (net of income taxes of $67,376

in 2000 and $33,424 in 1999)

130,790

64,883

Total common stockholders' equity

5,051,525

5,112,166

Long-term debt, less current installments

11,429,421

11,507,315

Current liabilities:

Current portion of long term debt

374,335

367,048

Borrowings under lines-of-credit

5,175,359

2,165,000

Accounts payable

1,715,628

1,404,370

Accrued expenses

591,221

233,969

Customer deposits and accrued interest

674,458

665,990

Deferred income taxes

120,103

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Accrued general taxes

119,331

94,441

Supplier refunds

294,676

268,862

Dividends payable

149,500

149,500

Total current liabilities

9,214,611

5,349,180

Deferred credits and other liabilities:

Deferred income taxes

2,448,994

2,413,080

Deferred compensation and post-retirement

benefits

2,089,854

1,519,142

Other

92,107

612,888

Total deferred credits and other liabilities

4,630,955

4,545,110

Concentrations and commitments (notes 3 and 10)

Total capitalization and liabilities

$30,326,512

$26,513,771

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See accompanying notes to consolidated financial statements.