Table of Contents 

----

----

| [ X ] | ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGEACT OF 1934 For the Fiscal Year Ended September 30, 2010 |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------|

| [     ] | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 For the Transition Period from ­__________ to __________ |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   Commission File Number |   Registrant  |   State of Incorporation | I.R.S.Employer IdentificationNumber |
|------------------------------------|-------------------------|------------------------------------|-------------------------------------|
| 1-16681                            | The Laclede Group, Inc. | Missouri                           | 74-2976504                          |
| 1-1822                             | Laclede Gas Company     | Missouri                           | 43-0368139                          |

|  Name of Registrant |  Title of Each Class       | Name of Each Exchange On Which Registered |
|--------------------------|---------------------------------|-------------------------------------------|
| The Laclede Group, Inc.  | Common Stock $1.00 par value    | New York Stock Exchange                   |
| The Laclede Group, Inc.  | Preferred Share Purchase Rights | New York Stock Exchange                   |
| Laclede Gas Company      | None                            |                                      |

| The Laclede Group, Inc.: | Yes    | [ X ]                       | No     | [     ] |
|--------------------------|--------|-----------------------------|--------|-----------------------------|
|                     |   |                        |   |                        |
| Laclede Gas Company:     | Yes    | [     ] | No     | [ X ]                       |

| The Laclede Group, Inc.: | Yes    | [     ] | No     | [ X ]  |
|--------------------------|--------|-----------------------------|--------|--------|
|                     |   |                        |   |   |
| Laclede Gas Company:     | Yes    | [     ] | No     | [ X ]  |

| The Laclede Group, Inc.: | Yes    | [ X ]  | No     | [     ] |
|--------------------------|--------|--------|--------|-----------------------------|
|                     |   |   |   |                        |
| Laclede Gas Company:     | Yes    | [ X ]  | No     | [     ] |

Table of Contents 

| The Laclede Group, Inc.: | Yes    | [ X ]                       | No     | [     ] |
|--------------------------|--------|-----------------------------|--------|-----------------------------|
|                     |   |                        |   |                        |
| Laclede Gas Company:     | Yes    | [     ] | No     | [     ] |

| The Laclede Group, Inc.: |                    |                        |   |                      |
|--------------------------|-------------------------|-----------------------------|--------|---------------------------|
|                     |                    |                        |   |                      |   |
|                     | Large accelerated filer | [ X ]                       |   | Accelerated filer         | [     ] |
|                     | Non-accelerated filer   | [     ] |   | Smaller reporting company | [     ] |
|                     |                    |                        |   |                      |   |
| Laclede Gas Company:     |                    |                        |   |                      |
|                     |                    |                        |   |                      |   |
|                     | Large accelerated filer | [     ] |   | Accelerated filer         | [     ] |
|                     | Non-accelerated filer   | [ X ]                       |   | Smaller reporting company | [     ] |

| The Laclede Group, Inc.: | Yes    | [     ] | No     | [ X ]  |
|--------------------------|--------|-----------------------------|--------|--------|
|                     |   |                        |   |   |
| Laclede Gas Company:     | Yes    | [     ] | No     | [ X ]  |

|                     |                           | Shares Outstanding At       |
|--------------------------|--------------------------------|-----------------------------|
| Registrant               | Description of Common Stock    | November 18, 2010 |
| The Laclede Group, Inc.: | Common Stock ($1.00 Par Value) | 22,296,998                  |
| Laclede Gas Company:     | Common Stock ($1.00 Par Value) | 11,674*                     |

Index to Exhibits

----

----

Table of Contents 

Exhibit 99.1

| TABLE OF CONTENTS                                                     | Page No.                                                                                                                                        |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                  |                                                                                                                                            |   |
| PART I                                                                |                                                                                                                                            |   |
|                                                                  |                                                                                                                                            |
| Forward-Looking Statements                                            | 5                                                                                                                                               |
|                                                                  |                                                                                                                                            |   |
| Item 1                                                                | Business                                                                                                                                        | 6 |
| Item 1A                                                               | Risk Factors                                                                                                                                    | 12 |
| Item 1B                                                               | Unresolved Staff Comments                                                                                                                       | 18 |
| Item 2                                                                | Properties                                                                                                                                      | 18 |
| Item 3                                                                | Legal Proceedings                                                                                                                               | 18 |
|                                                                  |                                                                                                                                            |   |
| Executive Officers of the Registrants (Item 401(b) of Regulation S-K) | 19                                                                                                                                              |
|                                                                  |                                                                                                                                            |   |
| PART II                                                               |                                                                                                                                            |   |
|                                                                  |                                                                                                                                            |   |
| Item 5                                                                | Market for Registrant’s Common Equity, Related Stockholder Matters     and Issuer Purchases of Equity Securities |  21 |
| Item 6                                                                | Selected Financial Data                                                                                                                         | 22 |
| Item 7                                                                | Management’s Discussion and Analysis of Financial Condition and     Results of Operations                        |  24 |
| Item 7A                                                               | Quantitative and Qualitative Disclosures About Market Risk                                                                                      | 43 |
| Item 8                                                                | Financial Statements and Supplementary Data                                                                                                     | 44 |
| Item 9                                                                | Changes in and Disagreements with Accountants on Accounting and     Financial Disclosure                               |  92 |
| Item 9A                                                               | Controls and Procedures                                                                                                                         | 92 |
| Item 9B                                                               | Other Information                                                                                                                               | 92 |
|                                                                  |                                                                                                                                            |   |
| PART III                                                              |                                                                                                                                            |   |
|                                                                  |                                                                                                                                            |   |
| Item 10                                                               | Directors, Executive Officers and Corporate Governance                                                                                          | 93 |
| Item 11                                                               | Executive Compensation                                                                                                                          | 93 |
| Item 12                                                               | Security Ownership of Certain Beneficial Owners and Management                                                                                  |   |
|                                                                  |      and Related Stockholder Matters                                                                                   | 93 |
| Item 13                                                               | Certain Relationships and Related Transactions, and Director Independence                                                                       | 94 |
| Item 14                                                               | Principal Accounting Fees and Services                                                                                                          | 94 |
|                                                                  |                                                                                                                                            |   |
| PART IV                                                               |                                                                                                                                            |   |
|                                                                  |                                                                                                                                            |   |
| Item 15                                                               | Exhibits, Financial Statement Schedules                                                                                                         | 95 |
|                                                                  |                                                                                                                                            |   |
| SIGNATURES                                                            |                                                                                                                                            | 96 |
|                                                                  |                                                                                                                                            |   |
| FINANCIAL STATEMENT SCHEDULES                                         | 98                                                                                                                                              |
|                                                                  |                                                                                                                                            |   |
| INDEX TO EXHIBITS                                                     | 100                                                                                                                                             |

Table of Contents 

FORWARD-LOOKING STATEMENTS

| • | weather conditions and catastrophic events, particularly severe weather in the natural gas producing areas of the country;                                                                                                                      |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | volatility in gas prices, particularly sudden and sustained changes in natural gas prices, including the related impact on margin deposits associated with the use of natural gas derivative instruments;                                       |
| • | the impact of changes and volatility in natural gas prices on our competitive position in relation to suppliers of alternative heating sources, such as electricity;                                                                            |
| • | changes in gas supply and pipeline availability, particularly those changes that impact supply for and access to the markets in which our subsidiaries transact business;                                                                       |
| • | legislative, regulatory and judicial mandates and decisions, some of which may be retroactive, including those affecting                                                                                                                        |
|    | •                                                                                                                                                                                                                                         | allowed rates of return |
|    | •                                                                                                                                                                                                                                         | incentive regulation |
|    | •                                                                                                                                                                                                                                         | industry structure |
|    | •                                                                                                                                                                                                                                         | purchased gas adjustment provisions |
|    | •                                                                                                                                                                                                                                         | rate design structure and implementation |
|    | •                                                                                                                                                                                                                                         | regulatory assets |
|    | •                                                                                                                                                                                                                                         | franchise renewals |
|    | •                                                                                                                                                                                                                                         | environmental or safety matters, including the potential impact of legislative and regulatory actions related to climate change |
|    | •                                                                                                                                                                                                                                         | taxes |
|    | •                                                                                                                                                                                                                                         | pension and other postretirement benefit liabilities and funding obligations |
|    | •                                                                                                                                                                                                                                         | accounting standards, including the effect of potential changes relative to adoption of or convergence with international accounting standards; |
| • | the results of litigation;                                                                                                                                                                                                                      |
| • | retention of, ability to attract, ability to collect from, and conservation efforts of, customers;                                                                                                                                              |
| • | capital and energy commodity market conditions, including the ability to obtain funds with reasonable terms for necessary capital expenditures and general operations and the terms and conditions imposed for obtaining sufficient gas supply; |
| • | discovery of material weakness in internal controls; and                                                                                                                                                                                        |
| • | employee workforce issues.                                                                                                                                                                                                                      |

Table of Contents 

Item 1

Note 15

| (Thousands)                 |   | 2010   |      | 2009   |   | 2008      |   |
|-----------------------------|--------|--------|-----------|--------|--------|-----------|--------|
| Regulated Gas Distribution  |   | $      | 864,297   |   | $      | 1,053,993 |   | $ | 1,128,287 |   |
| Non-Regulated Gas Marketing |   |   | 858,782   |   |   | 836,865   |   |   | 1,075,845 |   |
| Other                       |   |   | 11,950    |   |   | 4,340     |   |   | 4,841 |   |
| Total Operating Revenues    |   | $      | 1,735,029 |   | $      | 1,895,198 |   | $ | 2,208,973 |   |

Exhibit 99.1

Table of Contents 

| Organization Structure |
|------------------------|
|                   |
|                   |   |   |   |   |  The LacledeGroup, Inc.  |   |   |   |   |
|                   |   |   |   |   |   |   |   |   |   |   |   |
|                   |   |   |   |   |   |   |   |   |   |   |   |
| Laclede GasCompany     |   | Laclede Investment LLC |   |   | Laclede DevelopmentCompany |   | LacledePipelineCompany |
|                   |   |   |   |   |   |   |   |   |   |   |   |
|                   |   |   | LacledeEnergy Resources, Inc. |   |   |  Laclede Venture Corp. |   |   |   |
|                   |   |   |   |   |   |   |   |   |   |   |   |
|                   |   |   | Laclede Gas Family Services, Inc. |   |   |   |   |   |   |   |
|                   |   |   |   |   |   |   |   |   |   |   |   |

Table of Contents 

Regulatory and Other Matters

Table of Contents 

Note 16

Table of Contents 

| Regulated Gas Distribution Operating Revenues                    |   |
|------------------------------------------------------------------|--------|
|                                                             |   |   |   |   |   |   |   |
| (Thousands)                                                      |   | 2010 |   | 2009 |   | 2008 |   |
| Residential                                                      |   | $ | 589,350 |   | $ | 684,533 |   | $ | 696,919 |   |
| Commercial & Industrial                                      |   |   | 208,953 |   |   | 255,912 |   |   | 267,639 |   |
| Interruptible                                                    |   |   | 4,246 |   |   | 5,301 |   |   | 4,704 |   |
| Transportation                                                   |   |   | 13,378 |   |   | 14,394 |   |   | 16,008 |   |
| Off-System and Capacity Release                                  |   |   | 38,988 |   |   | 85,822 |   |   | 132,145 |   |
| Provision for Refunds and Other                                  |   |   | 9,382 |   |   | 8,031 |   |   | 10,872 |   |
|      Total                              |   | $ | 864,297 |   | $ | 1,053,993 |   | $ | 1,128,287 |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |
| Regulated Gas Distribution Therms Sold and Transported           |   |   |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |
| (Thousands)                                                      |   | 2010 |   | 2009 |   | 2008 |   |
| Residential                                                      |   |   | 506,576 |   |   | 509,025 |   |   | 514,450 |   |
| Commercial & Industrial                                      |   |   | 231,292 |   |   | 238,675 |   |   | 242,122 |   |
| Interruptible                                                    |   |   | 6,267 |   |   | 5,678 |   |   | 5,020 |   |
| Transportation                                                   |   |   | 150,386 |   |   | 154,603 |   |   | 172,985 |   |
|      System Therms Sold and Transported |   |   | 894,521 |   |   | 907,981 |   |   | 934,577 |   |
| Off-System                                                       |   |   | 70,966 |   |   | 163,020 |   |   | 143,686 |   |
|      Total Therms Sold and Transported  |   |   | 965,487 |   |   | 1,071,001 |   |   | 1,078,263 |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |
| Regulated Gas Distribution Customers (End of Period)             |   |   |   |   |
|                                                             |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Residential                                                      |   |   | 586,974 |   |   | 588,792 |   |   | 588,228 |   |
| Commercial & Industrial                                      |   |   | 40,264 |   |   | 40,608 |   |   | 40,801 |   |
| Interruptible                                                    |   |   | 18 |   |   | 17 |   |   | 17 |   |
| Transportation                                                   |   |   | 137 |   |   | 146 |   |   | 144 |   |
|      Total Customers                    |   |   | 627,393 |   |   | 629,563 |   |   | 629,190 |   |

Table of Contents 

|                                    |   |   |      |   |   |      |   |
|-----------------------------------------|--------|--------|-----------|--------|--------|-----------|--------|
| (Thousands)                             |   | 2010   |      | 2009   |   | 2008      |   |
| Non-Regulated Gas Marketing Revenues    |   | $      | 858,782   |   | $      | 836,865   |   | $ | 1,075,845 |   |
| Non-Regulated Gas Marketing Therms Sold |   |   | 1,864,104 |   |   | 1,826,465 |   |   | 1,229,221 |   |

Table of Contents 

Item 1A. Risk Factors

Table of Contents 

Critical Accounting Policies

Table of Contents 

| Type of Facility                 | S&P | Moody’s | Fitch |
|----------------------------------|---------|---------------|-------|
| Laclede Gas First Mortgage Bonds | A       | A2            | A+    |
| Laclede Gas Commercial Paper     | A-1     | P-2           | F1    |

Table of Contents 

Table of Contents 

Table of Contents 

Table of Contents 

Item 1B. Unresolved Staff Comments

Item 2. Properties

Note 16

Item 3. Legal Proceedings

Note 16
Regulatory and Other Matters

Table of Contents 

EXECUTIVE OFFICERS OF THE REGISTRANTS

| Name, Age, and Position with Company * | Appointed (1)                                          |
|----------------------------------------|--------------------------------------------------------|
|                                   |                                                   |   |   |
| D. H. Yaeger, Age 61                   |                                                   |
|                                   |                                                   |   |   |
|                                   | Laclede Group                                          |   |   |
|                                   | Chairman, President and Chief Executive Officer        | October 2000 |
|                                   |                                                   |   |   |
|                                   | Laclede Gas                                            |   |   |
|                                   | Chairman, President and Chief Executive Officer        | January 1999 |
|                                   |                                                   |   |   |
|                                   | LER                                                    |   |   |
|                                   | President                                              |   | January 1999 |
|                                   |                                                   |   |   |
| M. D. Waltermire, Age 52               |                                                   |
|                                   |                                                   |   |   |
|                                   | Laclede Group                                          |   |   |
|                                   | Chief Financial Officer                                | October 2007 |
|                                   |                                                   |   |   |
|                                   | Laclede Gas                                            |   |   |
|                                   | Senior Vice President and Chief Financial Officer      | October 2007 |
|                                   | Vice President – Operations & Marketing      | April 2003 |
|                                   |                                                   |   |   |
|                                   | LER                                                    |   |   |
|                                   | Vice President                                         | October 2007 |
|                                   |                                                   |   |   |
| M. C. Darrell, Age 52                  |                                                   |
|                                   |                                                   |   |   |
|                                   | Laclede Group                                          |   |   |
|                                   | General Counsel                                        | May 2004 |
|                                   |                                                   |   |   |
|                                   | Laclede Gas                                            |   |   |
|                                   | Senior Vice President and General Counsel              | October 2007 |
|                                   | General Counsel                                        | May 2004 |
|                                   |                                                   |   |   |
| R. A. Skau, Age 53                     |                                                   |
|                                   |                                                   |   |   |
|                                   | Laclede Gas                                            |   |   |
|                                   | Senior Vice President – Human Resources          | October 2007 |
|                                   | Vice President – Human Resources                 | February 2004 |
|                                   |                                                   |   |   |
| M. R. Spotanski, Age 50                |                                                   |
|                                   |                                                   |   |   |
|                                   | Laclede Gas                                            |   |   |
|                                   | Senior Vice President – Operations and Marketing | October 2007 |
|                                   | Vice President – Finance                         | January 2001 |
|                                   |                                                   |   |   |
| M. C. Kullman, Age 50                  |                                                   |
|                                   |                                                   |   |   |
|                                   | Laclede Group                                          |   |   |
|                                   | Chief Governance Officer and Corporate Secretary       | February 2004 |
|                                   |                                                   |   |   |
|                                   | Laclede Gas                                            |   |   |
|                                   | Chief Governance Officer and Corporate Secretary       | February 2004 |
|                                   |                                                   |   |   |
|                                   | LER                                                    |   |   |
|                                   | Secretary                                              | February 1998 |

Table of Contents 

| D. P. Abernathy, Age 49  |                                                                                                       |
|--------------------------|------------------------------------------------------------------------------------------------------------|
|                     |                                                                                                       |   |   |
|                     | Laclede Gas                                                                                                |   |   |
|                     | Vice President and Associate General Counsel –  Industrial Relations and Claims Management | October 2007 |
|                     |                                                                                                       |   |
|                     | Vice President – Associate General Counsel                                                           | September 2004 |
|                     |                                                                                                       |   |   |
| M. C. Geiselhart, Age 51 |                                                                                                       |
|                     |                                                                                                       |   |   |
|                     | Laclede Group                                                                                              |   |   |
|                     | Vice President – Strategic Development and Planning (2)                                              | August 2006 |
|                     |                                                                                                       |   |   |
|                     | Laclede Gas                                                                                                |   |   |
|                     | Vice President – Strategic Development and Planning                                                  | August 2006 |
|                     |                                                                                                       |   |   |
| S. F. Mathews, Age 52    |                                                                                                       |
|                     |                                                                                                       |   |   |
|                     | Laclede Gas                                                                                                |   |   |
|                     | Vice President – Gas Supply                                                                          | February 2003 |
|                     |                                                                                                       |   |   |
| M. C. Pendergast, Age 54 |                                                                                                       |
|                     |                                                                                                       |   |   |
|                     | Laclede Gas                                                                                                |   |   |
|                     | Vice President – Associate General Counsel                                                           | January 2002 |
|                     |                                                                                                       |   |   |
| S. P. Rasche, Age 50     |                                                                                                       |
|                     |                                                                                                       |   |   |
|                     | Laclede Gas                                                                                                |   |   |
|                     | Vice President – Finance (3)                                                                         | November 2009 |
|                     |                                                                                                       |   |   |
| J. A. Fallert, Age 55    |                                                                                                       |
|                     |                                                                                                       |   |   |
|                     | Laclede Gas                                                                                                |   |   |
|                     | Controller                                                                                                 |   | February 1998 |
|                     |                                                                                                       |   |   |
| S. E. Jaskowiak, Age 48  |                                                                                                       |
|                     |                                                                                                       |   |   |
|                     | LER                                                                                                        |   |   |
|                     | Vice President and General Manager                                                                         | February 2005 |
|                     |                                                                                                       |   |   |

| * | The information provided relates to the Company and its principal subsidiaries. Many of the executive officers have served or currently serve as officers or directors for other subsidiaries of the Company. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | Officers of Laclede are normally reappointed at the Annual Meeting of the Board of Directors in January of each year to serve at the pleasure of the Board of Directors for the ensuing year and until their successors are elected and qualify.        |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Mr. Geiselhart served as the Corporate Finance Consultant for Callaway Partners, LLC since 2003. During that time, he also served as Chief Financial Officer for both TowerLink Corporation, Inc. and Transcender Telecom Acquisition Corporation, Inc. |
| (3) | Mr. Rasche served as the Chief Financial Officer for TLCVision Corporation since 2004.                                                                                                                                                                  |

Table of Contents 

Part II

Item 5

|        | Fiscal 2010 | Fiscal 2009 |
|-------------|-------------|-------------|
|        | High        | Low         | High | Low |
| 1st Quarter | $           | 34.92       | $ | 30.17 | $ | 55.81 | $ | 33.55 |
| 2nd Quarter |        | 34.63       |   | 30.81 |   | 48.33 |   | 35.23 |
| 3rd Quarter |        | 35.89       |   | 31.65 |   | 39.90 |   | 29.26 |
| 4th Quarter |        | 35.92       |   | 32.50 |   | 35.24 |   | 30.85 |

|        | Fiscal 2010 | Fiscal 2009 |
|-------------|-------------|-------------|
| 1st Quarter | $           | 0.395       |       $ | 0.385 |
| 2nd Quarter |        | 0.395       |   | 0.385 |
| 3rd Quarter |        | 0.395       |   | 0.385 |
| 4th Quarter |        | 0.395       |   | 0.385 |

|              |   | Aggregate      |   |      |   |
|-------------------|--------|----------------|--------|-----------|--------|
|              |   | Purchase Price |   | Number    |   |
| Date of Sale      |   | (millions)     |   | of Shares |   |
|              |   |           |   |      |   |   |
| FY 2008           |   |           |   |      |   |   |
| December 20, 2007 |   | $              | 1.0    |      |   | 30 |   |   |
| February 14, 2008 |   |           | 1.0    |      |   | 28 |   |   |
| May 12, 2008      |   |           | 0.9    |      |   | 26 |   |   |
| August 18, 2008   |   |           | 0.9    |      |   | 25 |   |   |
|              |   |           |   |      |   |   |   |   |
| FY 2009           |   |           |   |      |   |   |   |   |
| November 20, 2008 |   |           | 40.0   |      |   | 1,161 |   |   |
| December 18, 2008 |   |           | 0.9    |      |   | 26 |   |   |
| February 10, 2009 |   |           | 0.4    |      |   | 11 |   |   |
| May 20, 2009      |   |           | 0.3    |      |   | 9 |   |   |
| August 14, 2009   |   |           | 0.4    |      |   | 11 |   |   |
|              |   |           |   |      |   |   |   |   |
| FY 2010           |   |           |   |      |   |   |   |   |
| December 15, 2009 |   |           | 0.3    |      |   | 10 |   |   |
| February 8, 2010  |   |           | 0.4    |      |   | 10 |   |   |
| May 7, 2010       |   |           | 0.4    |      |   | 10 |   |   |
| August 11, 2010   |   |           | 0.4    |      |   | 10 |   |   |

Table of Contents 

Item 6

|                                                                                                                                                                                                     |   | Fiscal Years Ended September 30 |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-----------|
| (Thousands, Except Per Share Amounts)                                                                                                                                                                    |   | 2010                            |      | 2009 |   | 2008 |   | 2007 |   | 2006 |   |
| Summary of Operations                                                                                                                                                                                    |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Revenues:                                                                                                                                                                                      |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Regulated Gas Distribution                                                                                                                                                                   |   | $                               | 864,297   |   | $ | 1,053,993 |   | $ | 1,128,287 |   | $ | 1,131,554 |   | $ | 1,141,011 |   |
|   Non-Regulated Gas Marketing                                                                                                                                                                  |   |                            | 858,782   |   |   | 836,865 |   |   | 1,075,845 |   |   | 718,704 |   |   | 689,572 |   |
|   Other                                                                                                                                                                                        |   |                            | 11,950    |   |   | 4,340 |   |   | 4,841 |   |   | 5,603 |   |   | 4,445 |   |
|           Total Operating Revenues                                                                                                                     |   |                            | 1,735,029 |   |   | 1,895,198 |   |   | 2,208,973 |   |   | 1,855,861 |   |   | 1,835,028 |   |
|                                                                                                                                                                                                     |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses:                                                                                                                                                                                      |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Regulated Gas Distribution                                                                                                                                                                   |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Natural and propane gas                                                                                                                                                          |   |                            | 519,905   |   |   | 699,984 |   |   | 770,097 |   |   | 797,924 |   |   | 821,721 |   |
|     Other operation expenses                                                                                                                                                         |   |                            | 141,995   |   |   | 146,542 |   |   | 144,611 |   |   | 131,798 |   |   | 128,180 |   |
|     Maintenance                                                                                                                                                                      |   |                            | 27,244    |   |   | 27,818 |   |   | 25,827 |   |   | 24,306 |   |   | 21,198 |   |
|     Depreciation and amortization                                                                                                                                                    |   |                            | 37,572    |   |   | 36,751 |   |   | 35,303 |   |   | 34,080 |   |   | 30,904 |   |
|     Taxes, other than income taxes                                                                                                                                                   |   |                            | 61,407    |   |   | 68,639 |   |   | 69,023 |   |   | 68,361 |   |   | 71,038 |   |
|           Total Regulated Gas Distribution               Operating Expenses |   |                            | 788,123   |   |   | 979,734 |   |   | 1,044,861 |   |   | 1,056,469 |   |   | 1,073,041 |   |
|   Non-Regulated Gas Marketing                                                                                                                                                                  |   |                            | 836,687   |   |   | 787,056 |   |   | 1,048,162 |   |   | 698,962 |   |   | 662,391 |   |
|   Other                                                                                                                                                                                        |   |                            | 5,353     |   |   | 3,344 |   |   | 4,603 |   |   | 5,376 |   |   | 5,024 |   |
|           Total Operating Expenses                                                                                                                     |   |                            | 1,630,163 |   |   | 1,770,134 |   |   | 2,097,626 |   |   | 1,760,807 |   |   | 1,740,456 |   |
| Operating Income                                                                                                                                                                                         |   |                            | 104,866   |   |   | 125,064 |   |   | 111,347 |   |   | 95,054 |   |   | 94,572 |   |
| Allowance for Funds Used During Construction                                                                                                                                                             |   |                            | (112      | ) |   | (152 | ) |   | (72 | )  |   | (17 | ) |   | (45 | ) |
| Other Income and (Income Deductions) - Net                                                                                                                                                               |   |                            | 3,232     |   |   | 1,605 |   |   | 1,953 |   |   | 6,830 |   |   | 5,553 |   |
| Interest Charges:                                                                                                                                                                                        |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Interest on long-term debt                                                                                                                                                                   |   |                            | 24,583    |   |   | 24,583 |   |   | 19,851 |   |   | 22,502 |   |   | 22,329 |   |
|   Interest on long-term debt to unconsolidated    affiliate trust                                                                                                          |   |                            | —   |   |   | — |   |   | 486 |   |   | 277 |   |   | 277 |   |
|   Other interest charges                                                                                                                                                                       |   |                            | 2,269     |   |   | 5,163 |   |   | 9,140 |   |   | 11,155 |   |   | 10,278 |   |
|           Total Interest Charges                                                                                                                       |   |                            | 26,852    |   |   | 29,746 |   |   | 29,477 |   |   | 33,934 |   |   | 32,884 |   |
| Income from Continuing Operations Before Income                                                                                                                                                          |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Taxes and Dividends on Laclede Gas Redeemable                                                                                                                                                |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Preferred Stock                                                                                                                                                                  |   |                            | 81,134    |   |   | 96,771 |   |   | 83,751 |   |   | 67,933 |   |   | 67,196 |   |
| Income Tax Expense                                                                                                                                                                                       |   |                            | 27,094    |   |   | 32,509 |   |   | 26,190 |   |   | 22,146 |   |   | 21,301 |   |
| Dividends on Laclede Gas Redeemable                                                                                                                                                                      |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Preferred Stock                                                                                                                                                                              |   |                            | —   |   |   | 15 |   |   | 35 |   |   | 43 |   |   | 48 |   |
| Income from Continuing Operations                                                                                                                                                                        |   |                            | 54,040    |   |   | 64,247 |   |   | 57,526 |   |   | 45,744 |   |   | 45,847 |   |
| Income from Discontinued Operations, Net                                                                                                                                                                 |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   of Income Tax                                                                                                                                                                                |   |                            | —   |   |   | — |   |   | 20,396 |   |   | 4,027 |   |   | 3,142 |   |
| Net Income                                                                                                                                                                                               |   | $                               | 54,040    |   | $ | 64,247 |   | $ | 77,922 |   | $ | 49,771 |   | $ | 48,989 |   |
|                                                                                                                                                                                                     |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Number of Common Shares Outstanding:                                                                                                                                                             |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Basic                                                                                                                                                                                        |   |                            | 21,986    |   |   | 21,893 |   |   | 21,657 |   |   | 21,455 |   |   | 21,247 |   |
|   Diluted                                                                                                                                                                                      |   |                            | 22,039    |   |   | 21,960 |   |   | 21,730 |   |   | 21,496 |   |   | 21,279 |   |
|                                                                                                                                                                                                     |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic Earnings Per Share of Common Stock:                                                                                                                                                                |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Income from Continuing Operations                                                                                                                                                            |   | $                               | 2.43      |   | $ | 2.90 |   | $ | 2.64 |   | $ | 2.12 |   | $ | 2.15 |   |
|   Income from Discontinued Operations                                                                                                                                                          |   |                            | —   |   |   | — |   |   | 0.93 |   |   | 0.19 |   |   | 0.15 |   |
|   Net Income                                                                                                                                                                                   |   | $                               | 2.43      |   | $ | 2.90 |   | $ | 3.57 |   | $ | 2.31 |   | $ | 2.30 |   |
|                                                                                                                                                                                                     |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted Earnings Per Share of Common Stock:                                                                                                                                                              |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Income from Continuing Operations                                                                                                                                                            |   | $                               | 2.43      |   | $ | 2.89 |   | $ | 2.63 |   | $ | 2.11 |   | $ | 2.15 |   |
|   Income from Discontinued Operations                                                                                                                                                          |   |                            | —   |   |   | — |   |   | 0.93 |   |   | 0.19 |   |   | 0.15 |   |
|   Net Income                                                                                                                                                                                   |   | $                               | 2.43      |   | $ | 2.89 |   | $ | 3.56 |   | $ | 2.30 |   | $ | 2.30 |   |

Table of Contents 

|                                                                                                              |   | Fiscal Years Ended September 30 |      |
|-------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-----------|
| (Thousands, Except Per Share Amounts)                                                                             |   | 2010                            |      | 2009 |   | 2008 |   | 2007 |   | 2006 |   |
|                                                                                                              |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends Declared –                                                                                        |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Common Stock                                                                                          |   | $                               | 35,127    |   | $ | 34,100 |   | $ | 32,776 |   | $ | 31,505 |   | $ | 30,045 |   |
| Dividends Declared Per                                                                                            |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Share of Common Stock                                                                                 |   | $                               | 1.58      |   | $ | 1.54 |   | $ | 1.50 |   | $ | 1.46 |   | $ | 1.41 |   |
|                                                                                                              |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Utility Plant                                                                                                     |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Gross Plant – End of Period                                                                     |   | $                               | 1,326,284 |   | $ | 1,280,238 |   | $ | 1,229,174 |   | $ | 1,187,828 |   | $ | 1,149,104 |   |
|   Net Plant – End of Period                                                                       |   |                            | 884,084   |   |   | 855,929 |   |   | 823,197 |   |   | 793,794 |   |   | 763,827 |   |
|   Capital Expenditures                                                                                  |   |                            | 56,234    |   |   | 51,384 |   |   | 55,304 |   |   | 56,434 |   |   | 57,925 |   |
|   Property Retirements                                                                                  |   |                            | 10,946    |   |   | 9,732 |   |   | 15,629 |   |   | 16,331 |   |   | 22,588 |   |
| Non-Utility Property                                                                                              |   |                            | 4,551     |   |   | 4,061 |   |   | 3,793 |   |   | 4,065 |   |   | 4,263 |   |
| Other Investments                                                                                                 |   |                            | 50,226    |   |   | 44,973 |   |   | 43,314 |   |   | 43,635 |   |   | 41,354 |   |
| Total Assets of Discontinued Operations                                                                           |   |                            | —   |   |   | — |   |   | — |   |   | 73,357 |   |   | 76,353 |   |
| Total Assets – End of Period                                                                                |   |                            | 1,840,196 |   |   | 1,762,018 |   |   | 1,772,655 |   |   | 1,641,153 |   |   | 1,570,160 |   |
|                                                                                                              |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capitalization – End of Period                                                                              |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Common Stock and Paid-In Capital                                                                      |   | $                               | 180,991   |   | $ | 176,386 |   | $ | 169,234 |   | $ | 157,707 |   | $ | 148,487 |   |
|   Retained Earnings                                                                                     |   |                            | 361,723   |   |   | 342,810 |   |   | 312,808 |   |   | 268,761 |   |   | 250,495 |   |
|   Accumulated Other Comprehensive Income (Loss)                                                         |   |                            | (7,137    | ) |   | (2,166 | ) |   | 4,437 |   |   | 1,857 |   |   | 3,655 |   |
|         Common Stock Equity                                               |   |                            | 535,577   |   |   | 517,030 |   |   | 486,479 |   |   | 428,325 |   |   | 402,637 |   |
|   Laclede Gas Redeemable Preferred Stock                                                                |   |                            | —   |   |   | — |   |   | 467 |   |   | 627 |   |   | 787 |   |
|   Long-Term Debt to Unconsolidated Affiliate Trust                                                      |   |                            | —   |   |   | — |   |   | — |   |   | 46,400 |   |   | 46,400 |   |
|   Long-Term Debt – Laclede Gas                                                                    |   |                            | 364,298   |   |   | 389,240 |   |   | 389,181 |   |   | 309,122 |   |   | 349,041 |   |
| Total Capitalization                                                                                              |   | $                               | 899,875   |   | $ | 906,270 |   | $ | 876,127 |   | $ | 784,474 |   | $ | 798,865 |   |
|                                                                                                              |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares of Common Stock                                                                                            |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Outstanding – End of Period                                                                     |   |                            | 22,293    |   |   | 22,168 |   |   | 21,993 |   |   | 21,646 |   |   | 21,362 |   |
|   Book Value Per Share – End of Period                                                            |   | $                               | 24.02     |   | $ | 23.32 |   | $ | 22.12 |   | $ | 19.79 |   | $ | 18.85 |   |
|                                                                                                              |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated Net Economic Earnings Data (a)                                                                       |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Economic Earnings (Non-GAAP)                                                                                  |   | $                               | 56,165    |   | $ | 60,806 |   | $ | 59,154 |   | $ | 46,082 |   | $ | 44,482 |   |
| Add: Unrealized gain (loss) on energy-related  derivative contracts, net of tax                         |   |                            | (2,125    | ) |   | 3,441 |   |   | (1,628 | ) |   | (338 | ) |   | 1,365 |   |
| Income from Continuing Operations (GAAP)                                                                          |   | $                               | 54,040    |   | $ | 64,247 |   | $ | 57,526 |   | $ | 45,744 |   | $ | 45,847 |   |
|                                                                                                              |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted Earnings per Share of Common Stock:                                                                       |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net Economic Earnings (Non-GAAP)                                                                      |   | $                               | 2.52      |   | $ | 2.74 |   | $ | 2.70 |   | $ | 2.13 |   | $ | 2.08 |   |
|   Add: Unrealized gain (loss) on energy-related    derivative contracts, net of tax |   |                            | (0.09     | ) |   | 0.15 |   |   | (0.07 | ) |   | (0.02 | ) |   | 0.07 |   |
|   Income from Continuing Operations (GAAP)                                                              |   | $                               | 2.43      |   | $ | 2.89 |   | $ | 2.63 |   | $ | 2.11 |   | $ | 2.15 |   |

|   (a) | This section contains the non-GAAP financial measures of net economic earnings and net economic earnings per share. Refer to the Earnings section of Management’s Discussion and Analysis of Financial Condition and Results of Operations on page 27 for a discussion regarding the use of non-GAAP measures. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note:  | Earnings per share (EPS) and diluted shares outstanding amounts for previous periods have been restated to reflect the retrospective application of a new accounting standard that the Company adopted on October 1, 2009. Reported net income was not affected by the adoption of this new accounting standard. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                       |
|   | Discontinued operations reflects the operations and sale of the Company’s former subsidiary, SM&P Utility Resources, Inc., which was sold on March 31, 2008.                                                                                                                                           |

Table of Contents 

ITEM 7

Table of Contents 

| • | the Utility’s ability to recover the costs of purchasing and distributing natural gas from its customers;                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | the impact of weather and other factors, such as customer conservation, on revenues and expenses;                                                                                                 |
| • | changes in the regulatory environment at the federal, state, and local levels, as well as decisions by regulators, that impact the Utility’s ability to earn its authorized rate of return; |
| • | the Utility’s ability to access credit markets and maintain working capital sufficient to meet operating requirements; and,                                                                 |
| • | the effect of natural gas price volatility on the business.                                                                                                                                       |

| • | the risks of competition;                                   |
|---------|-------------------------------------------------------------|
| • | regional fluctuations in natural gas prices;                |
| • | new national pipeline infrastructure projects;              |
| • | credit and/or capital market access;                        |
| • | counterparty risks; and,                                    |
| • | the effect of natural gas price volatility on the business. |

Regulatory and Other Matters

Table of Contents 

Liquidity and Capital Resources

Table of Contents 

EARNINGS

| 1) | changes in fair values of physical and/or financial derivatives prior to the period of settlement; and,                                                                                                                                                                                 |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2) | ineffective portions of accounting hedges, required to be recorded in earnings prior to settlement, due to differences in commodity price changes between the locations of the forecasted physical purchase or sale transactions and the locations of the underlying hedge instruments. |

Table of Contents 

| (Millions, except per share amounts) | Net Economic Earnings(Non-GAAP)                                                                                                                                                                                                                                                                                                                                                                                                                    | Add: Unrealized gain (loss) on energy-related derivative contracts* | Income from Continuing Operations(GAAP) |
|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|-----------------------------------------|
| Year Ended September 30, 2010        |                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                |                                    |   |   |   |   |   |   |   |   |   |
|                                 | Regulated Gas Distribution                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                | $                                       | 36.1 |   |   | $ | (0.1 | ) |   | $ | 36.0 |   |
|                                 | Non-Regulated Gas Marketing                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                |                                    | 15.7 |   |   |   | (2.0 | ) |   |   | 13.7 |   |
|                                 | Other                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                |                                    | 4.3 |   |   |   | — |   |   |   | 4.3 |   |
|                                 |      Total                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                | $                                       | 56.1 |   |   | $ | (2.1 | ) |   | $ | 54.0 |   |
|                                 | Per Share Amounts **                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                | $                                       | 2.52 |   |   | $ | (0.09 | ) |   | $ | 2.43 |   |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                |                                    |   |   |   |   |   |   |   |   |   |   |
| Year Ended September 30, 2009        |                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                |                                    |   |   |   |   |   |   |   |   |   |
|                                 | Regulated Gas Distribution                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                | $                                       | 33.1 |   |   | $ | 0.1 |   |   | $ | 33.2 |   |
|                                 | Non-Regulated Gas Marketing                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                |                                    | 28.1 |   |   |   | 3.3 |   |   |   | 31.4 |   |
|                                 | Other                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                |                                    | (0.4 | ) |   |   | — |   |   |   | (0.4 | ) |
|                                 |      Total                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                | $                                       | 60.8 |   |   | $ | 3.4 |   |   | $ | 64.2 |   |
|                                 | Per Share Amounts **                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                | $                                       | 2.74 |   |   | $ | 0.15 |   |   | $ | 2.89 |   |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                |                                    |   |   |   |   |   |   |   |   |   |   |
| Year Ended September 30, 2008        |                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                |                                    |   |   |   |   |   |   |   |   |   |
|                                 | Regulated Gas Distribution                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                | $                                       | 39.1 |   |   | $ | — |   |   | $ | 39.1 |   |
|                                 | Non-Regulated Gas Marketing                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                |                                    | 20.9 |   |   |   | (1.6 | ) |   |   | 19.3 |   |
|                                 | Other                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                |                                    | (0.9 | ) |   |   | — |   |   |   | (0.9 | ) |
|                                 |      Total                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                | $                                       | 59.1 |   |   | $ | (1.6 | ) |   | $ | 57.5 |   |
|                                 | Per Share Amounts **                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                | $                                       | 2.70 |   |   | $ | (0.07 | ) |   | $ | 2.63 |   |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| *                                    | Amounts presented net of income taxes. Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of unrealized gain (loss) on energy-related derivative contracts. For the fiscal years ended 2010, 2009 and 2008 the amount of income tax expense (benefit) included in the total reconciling item above is $(1.3) million, $2.2 million, and $(1.0) million, respectively. |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| **                                   | Net economic earnings per share is calculated by replacing consolidated income from continuing operations with consolidated net economic earnings in the GAAP diluted earnings per share calculation.                                                                                                                                                                                                                                              |

Table of Contents 

|   | • | decreases in operation and maintenance expense totaling $5.1 million, including a lower provision for uncollectible accounts totaling $3.4 million; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | higher Infrastructure System Replacement Surcharge (ISRS) revenues totaling $3.2 million; and,                                                      |
|   | • | the benefit of the general rate increase, effective September 1, 2010, totaling $2.5 million.                                                       |

|   | • | lower income from off-system sales and capacity release totaling $4.3 million; and,      |
|--------|---------|------------------------------------------------------------------------------------------|
|   | • | the effect of lower system gas sales volumes and other variations totaling $2.8 million. |

|   | • | increases in operation and maintenance expenses, excluding the provision for uncollectible accounts, totaling $4.9 million;                                              |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | the effect of lower system gas sales volumes and other variations totaling $2.0 million;                                                                                 |
|   | • | the effect of the recognition of previously unrecognized tax benefits and the reversal of related expenses recorded during fiscal year 2008, totaling $1.6 million; and, |
|   | • | an increase in depreciation and amortization expense totaling $1.4 million.                                                                                              |

Table of Contents 

| (Millions)                                                                                                                                          |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Lower wholesale gas costs passed on to Utility customers (subject to prudence review by the MoPSC)                                                  |   | $      | (141.1 | ) |
| Lower off-system sales volumes (reflecting less favorable market conditions as described in greater detail in the  Results of Operations) |   |   | (42.8  | ) |
| Lower system sales volumes and other variations                                                                                                     |   |   | (10.2  | ) |
| Higher ISRS revenues                                                                                                                                |   |   | 3.2    |   |
| General rate increase, effective September 1, 2010                                                                                        |   |   | 2.5    |   |
| Lower prices charged for off-system sales                                                                                                           |   |   | (1.3   | ) |
|       Total Variation                                                                                                 |   | $      | (189.7 | ) |

| (Millions)                                                                                                                                           |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Lower prices charged for off-system sales                                                                                                            |   | $      | (64.2  | ) |
| Lower wholesale gas costs passed on to Utility customers (subject to prudence review by the MoPSC)                                                   |   |   | (19.0  | ) |
| Higher off-system sales volumes (reflecting more favorable market conditions as described in greater  detail in the Results of Operations) |   |   | 16.6   |   |
| Lower system sales volumes and other variations                                                                                                      |   |   | (11.5  | ) |
| Higher ISRS revenues                                                                                                                                 |   |   | 3.8    |   |
|       Total Variation                                                                                                  |   | $      | (74.3  | ) |

Table of Contents 

Table of Contents 

CRITICAL ACCOUNTING POLICIES

|   | Accounts Receivable and Allowance for Doubtful Accounts – Trade accounts receivable are recorded at the amounts due from customers, including unbilled amounts. Estimates of the collectibility of trade accounts receivable are based on historical trends, age of receivables, economic conditions, credit risk of specific customers, and other factors. Accounts receivable are written off against the allowance for doubtful accounts when they are deemed to be uncollectible. The Utility’s provision for uncollectible accounts includes the amortization of previously deferred uncollectible expenses, as approved by the MoPSC. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Employee Benefits and Postretirement Obligations – Pension and postretirement obligations are calculated by actuarial consultants that utilize several statistical factors and other assumptions provided by management related to future events, such as discount rates, returns on plan assets, compensation increases, and mortality rates. For the Utility, the amount of expense recognized and the amounts reflected in other comprehensive income are dependent upon the regulatory treatment provided for such costs, as discussed further below. Certain liabilities related to group medical benefits and workers’ compensation claims, portions of which are self-insured and/or contain “stop-loss” coverage with third-party insurers to limit exposure, are established based on historical trends. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents 

| Pension Plan Benefits:                                                                                                                                                                                                                    |   |            |   |   |   |          |           |   |   |          |           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|--------|--------|--------|---------------|----------------|--------|--------|---------------|----------------|
|                                                                                                                                                                                                                                      |   |            |   |   |   |          |           |   |   |          |           |
|                                                                                                                                                                                                                                      |   |            |   |   |   | Estimated     |           |   |   | Estimated     |           |
|                                                                                                                                                                                                                                      |   |            |   |   |   | Increase/     |           |   |   | Increase/     |           |
|                                                                                                                                                                                                                                      |   |            |   |   |   | (Decrease) to |           |   |   | (Decrease) to |           |
|                                                                                                                                                                                                                                      |   |            |   |   |   | Projected     |           |   |   | Annual        |           |
|                                                                                                                                                                                                                                      |   |            |   |   |   | Benefit       |           |   |   | Net Pension   |           |
|                                                                                                                                                                                                                                      |   | Increase/       |   |   |   | Obligation    |           |   |   | Cost*         |           |
| Actuarial Assumptions                                                                                                                                                                                                                     |   | (Decrease)      |   |   |   | (Thousands)   |           |   |   | (Thousands)   |           |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          |           |   |   |          |           |   |
| Discount Rate                                                                                                                                                                                                                             |   | 0.25            | %      |   |   | $             | (9,820         | )      |   | $             | 199            |   |
|                                                                                                                                                                                                                                      |   | (0.25           | )      |   |   |          | 10,120         |   |   |          | (220           | ) |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          |           |   |   |          |           |   |
| Rate of Future Compensation Increase                                                                                                                                                                                                      |   | 0.25            | %      |   |   |          | 6,400          |   |   |          | 380            |   |
|                                                                                                                                                                                                                                      |   | (0.25           | )      |   |   |          | (6,300         | )      |   |          | (370           | ) |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          |           |   |   |          |           |   |
| Expected Return on Plan Assets                                                                                                                                                                                                            |   | 0.25            | %      |   |   |          | —        |   |   |          | (610           | ) |
|                                                                                                                                                                                                                                      |   | (0.25           | )      |   |   |          | —        |   |   |          | 610            |   |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          |           |   |   |          |           |   |
| Postretirement Benefits:                                                                                                                                                                                                                  |   |            |   |   |   |          |           |   |   |          |           |   |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          |           |   |   |          |           |   |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          | Estimated      |   |   |          | Estimated      |   |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          | Increase/      |   |   |          | Increase/      |   |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          | (Decrease) to  |   |   |          | (Decrease) to  |   |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          | Projected      |   |   |          | Annual Net     |   |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          | Postretirement |   |   |          | Postretirement |   |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          | Benefit        |   |   |          | Benefit        |   |
|                                                                                                                                                                                                                                      |   | Increase/  |   |   |   |          | Obligation     |   |   |          | Cost*          |   |
| Actuarial Assumptions                                                                                                                                                                                                                     |   | (Decrease)      |   |   |   |          | (Thousands)    |   |   |          | (Thousands)    |   |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          |           |   |   |          |           |   |
| Discount Rate                                                                                                                                                                                                                             |   | 0.25            | %      |   |   | $             | (2,320         | )      |   | $             | (116           | ) |
|                                                                                                                                                                                                                                      |   | (0.25           | )      |   |   |          | 2,380          |   |   |          | 114            |   |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          |           |   |   |          |           |   |
| Expected Return on Plan Assets                                                                                                                                                                                                            |   | 0.25            | %      |   |   |          | —        |   |   |          | (100           | ) |
|                                                                                                                                                                                                                                      |   | (0.25           | )      |   |   |          | —        |   |   |          | 100            |   |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          |           |   |   |          |           |   |
| Annual Medical Cost Trend                                                                                                                                                                                                                 |   | 1.00            | %      |   |   |          | 5,850          |   |   |          | 1,270          |   |
|                                                                                                                                                                                                                                      |   | (1.00           | )      |   |   |          | (5,300         | )      |   |          | (1,130         | ) |
|                                                                                                                                                                                                                                      |   |            |   |   |   |          |           |   |   |          |           |   |
| * Excludes the impact of regulatory deferral mechanism. See Note 3, Pension Plans and Other Postretirement Benefits, of the Notes to Consolidated Financial Statements for information regarding the regulatory treatment of these costs. |

Table of Contents 

|   | The Utility’s PGA Clause allows Laclede Gas to flow through to customers, subject to prudence review, the cost of purchased gas supplies, including the costs, cost reductions, and related carrying costs associated with the Utility’s use of natural gas derivative instruments to hedge the purchase price of natural gas. The difference between actual costs incurred and costs recovered through the application of the PGA are recorded as regulatory assets and regulatory liabilities that are recovered or refunded in a subsequent period. The PGA Clause also authorizes the Utility to recover costs it incurs to finance its investment in gas supplies that are purchased during the storage injection season for sale during the heating season. The PGA Clause also permits the application of carrying costs to all over- or under-recoveries of gas costs, including costs and cost reductions associated with the use of derivative instruments. The PGA Clause also provides for a portion of income from off-system sales and capacity release revenues to be flowed through to customers. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | The Company records deferred tax liabilities and assets measured by enacted tax rates for the net tax effect of all temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes, and the amounts used for income tax purposes. Changes in enacted tax rates, if any, and certain property basis differences will be reflected by entries to regulatory asset or regulatory liability accounts for regulated companies, and will be reflected as income or loss for non-regulated companies. Pursuant to the direction of the MoPSC, Laclede Gas’ provision for income tax expense for financial reporting purposes reflects an open-ended method of tax depreciation. Laclede Gas’ provision for income tax expense also records the income tax effect associated with the difference between overheads capitalized to construction for financial reporting purposes and those recognized for tax purposes without recording an offsetting deferred income tax expense. These two methods are consistent with the regulatory treatment prescribed by the MoPSC. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | Asset retirement obligations are recorded in accordance with GAAP using various assumptions related to the timing, method of settlement, inflation, and profit margins that third parties would demand to settle the future obligations. These assumptions require the use of judgment and estimates and may change in future periods as circumstances dictate. As authorized by the MoPSC, Laclede Gas accrues future removal costs associated with its property, plant and equipment through its depreciation rates, even if a legal obligation does not exist as defined by GAAP. The difference between removal costs recognized in depreciation rates and the accretion expense and depreciation expense recognizable pursuant to GAAP is a timing difference between the recovery of these costs in rates and their recognition for financial reporting purposes. Accordingly, these differences are deferred as regulatory liabilities.                                                                                                                                                                                |

Table of Contents 

|   | The amount of net periodic pension and other postretirement benefit cost recognized in the financial statements related to the Utility’s qualified pension plans and other postretirement benefit plans is based upon allowances, as approved by the MoPSC, which have been established in the rate-making process for the recovery of these costs from customers. The differences between these amounts and actual pension and other postretirement benefit costs incurred for financial reporting purposes are deferred as regulatory assets or regulatory liabilities. GAAP also requires that changes that affect the funded status of pension and other postretirement benefit plans, but that are not yet required to be recognized as components of pension and other postretirement benefit cost, be reflected in other comprehensive income. For the Utility’s qualified pension plans and other postretirement benefit plans, amounts that would otherwise be reflected in other comprehensive income are deferred with entries to regulatory assets or regulatory liabilities. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Note 11

Note 1

REGULATORY AND OTHER MATTERS

Table of Contents 

Table of Contents 

Note 1

Table of Contents 

LIQUIDITY AND CAPITAL RESOURCES

Table of Contents 

| Type of Facility                 | S&P | Moody’s | Fitch |
|----------------------------------|---------|---------------|-------|
| Laclede Group Issuer Rating      | A       |          | A-    |
| Laclede Gas First Mortgage Bonds | A       | A2            | A+    |
| Laclede Gas Commercial Paper     | A-1     | P-2           | F1    |

Table of Contents 

|                                         |   | Payments due by period |    |
|----------------------------------------------|--------|------------------------|---------|
|                                         |   |                   |    | Less than |   | 1-3 |   | 3-5 |   | More than |   |
| Contractual Obligations                      |   | Total                  |    | 1 Year |   | Years |   | Years |   | 5 Years |   |
| Principal Payments on Long-Term Debt         |   | $                      | 390.0   |   | $ | 25.0 |   | $ | 25.0 |   | $ | — |   | $ | 340.0 |   |
| Interest Payments on Long-Term Debt          |   |                   | 484.9   |   |   | 23.8 |   |   | 45.1 |   |   | 42.7 |   |   | 373.3 |   |
| Operating Leases (a)                         |   |                   | 15.3    |   |   | 5.1 |   |   | 7.0 |   |   | 3.2 |   |   | — |   |
| Purchase Obligations – Natural Gas (b) |   |                   | 908.0   |   |   | 494.7 |   |   | 372.2 |   |   | 26.7 |   |   | 14.4 |   |
| Purchase Obligations – Other (c)       |   |                   | 89.8    |   |   | 17.8 |   |   | 18.4 |   |   | 16.7 |   |   | 36.9 |   |
| Total (d)                                    |   | $                      | 1,888.0 |   | $ | 566.4 |   | $ | 467.7 |   | $ | 89.3 |   | $ | 764.6 |   |

| (a) | Operating lease obligations are primarily for office space, vehicles, and power operated equipment in the Regulated Gas Distribution segment. Additional payments will be incurred if renewal options are exercised under the provisions of certain agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | These purchase obligations represent the minimum payments required under existing natural gas transportation and storage contracts and natural gas supply agreements in the Regulated Gas Distribution and Non-Regulated Gas Marketing segments. These amounts reflect fixed obligations as well as obligations to purchase natural gas at future market prices, calculated using September 30, 2010 forward market prices. Laclede Gas recovers the costs related to its purchases, transportation, and storage of natural gas through the operation of its PGA Clause, subject to prudence review by the MoPSC; however, variations in the timing of collections of gas costs from customers affect short-term cash requirements. Additional contractual commitments are generally entered into prior to or during the heating season.                                                                                                                                                                                                                                                                                                                                                                                                         |
| (c) | These purchase obligations reflect miscellaneous agreements for the purchase of materials and the procurement of services necessary for normal operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (d) | The categories of Capital Leases and Other Long-Term Liabilities have been excluded from the table above because there are no material amounts of contractual obligations under these categories. Long-term liabilities associated with unrecognized tax benefits, totaling $6.4 million, have been excluded from the table above because the timing of future cash outflows, if any, cannot be reasonably estimated. Also, commitments related to pension and postretirement benefit plans have been excluded from the table above. The Company expects to make contributions to its qualified, trusteed pension plans totaling $10.6 million in fiscal year 2011. Laclede Gas anticipates a $2.4 million contribution relative to its non-qualified pension plans during fiscal year 2011. With regard to the postretirement benefits, the Company anticipates Laclede Gas will contribute $13.3 million to the qualified trusts and $0.3 million directly to participants from Laclede Gas’ funds during fiscal year 2011. For further discussion of the Company’s pension and postretirement benefit plans, refer to Note 3, Pension Plans and Other Postretirement Benefits, of the Notes to Consolidated Financial Statements. |

Table of Contents 

MARKET RISK

Note 11

| (Thousands)                                                          |   | DerivativeFairValues |    | CashMargin |   | Derivativesand CashMargin |   |
|----------------------------------------------------------------------|--------|----------------------|---------|------------|--------|---------------------------|--------|
|                                                                 |   |                 |    |       |   |                      |   |   |   |   |
| Net balance of derivative assets at September 30, 2009               |   | $                    | 1,807   |       | $      | 960                       |   | $ | 2,767 |   |
| Changes in fair value                                                |   |                 | 3,568   |       |   | —                   |   |   | 3,568 |   |
| Settlements                                                          |   |                 | (15,337 | )          |   | —                   |   |   | (15,337 | ) |
| Changes in cash margin                                               |   |                 | — |       |   | 10,608                    |   |   | 10,608 |   |
| Net balance of derivative assets (liabilities) at September 30, 2010 |   | $                    | (9,962  | )          | $      | 11,568                    |   | $ | 1,606 |   |

| (Thousands)                                                          |   | At September 30, 2010   |   |
|----------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                 |   | Maturity by Fiscal Year |   |
|                                                                 |   |                    | Total  |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |
| Fair values of exchange-traded/cleared natural gas derivatives - net |   | $                       | (9,962 | ) | $ | (6,531 | ) | $ | (3,418 | ) | $ | (13 | ) |
|                                                                 |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| MMBtu – net long futures/swap positions                        |   |                    | 4,550  |   |   | 2,310 |   |   | 2,180 |   |   | 60 |   |

Table of Contents 

| (Thousands)                                            |   |   |   |
|--------------------------------------------------------|--------|--------|--------|
|                                                   |   |   |   |   |
| Net balance of derivative assets at September 30, 2009 |   | $      | 1,066  |   |
| Changes in fair value                                  |   |   | 834    |   |
| Settlements                                            |   |   | (1,732 | ) |
| Net balance of derivative assets at September 30, 2010 |   | $      | 168    |   |

Note 11

Note 12

Note 16

Table of Contents 

Item 7A

Market Risk

Table of Contents 

| Item 8. Financial Statements and Supplementary Data |   |
|-----------------------------------------------------|--------|
|                                                |   |   | 2010 10-K Page |
|                                                |   |   |   |
|                                                |   | Management Report on Internal Control Over Financial Reporting | 45 |
|                                                |   | Reports of Independent Registered Public Accounting Firm | 46-47 |
|                                                |   |   |   |
|                                                |   | Financial Statements: |   |
|                                                |   |   |   |
|                                                |   | The Laclede Group, Inc.: |   |
|                                                |   | For Years Ended September 30, 2010, 2009, and 2008: |   |
|                                                |   | Statements of Consolidated Income | 48 |
|                                                |   | Statements of Consolidated Comprehensive Income | 49 |
|                                                |   | Consolidated Statements of Common Shareholders’ Equity | 53 |
|                                                |   | Statements of Consolidated Cash Flows | 54 |
|                                                |   | As of September 30, 2010 and 2009: |   |
|                                                |   | Consolidated Balance Sheets | 50-51 |
|                                                |   | Statements of Consolidated Capitalization | 52 |
|                                                |   | Notes to Consolidated Financial Statements: |   |
|                                                |   |     Note 1 Summary of Significant Accounting Policies | 55 |
|                                                |   |     Note 2 Discontinued Operations | 61 |
|                                                |   |     Note 3 Pension Plans and Other Postretirement Benefits | 62 |
|                                                |   |     Note 4 Stock-Based Compensation | 70 |
|                                                |   |     Note 5 Earnings Per Common Share | 74 |
|                                                |   |     Note 6 Stockholders’ Equity | 75 |
|                                                |   |     Note 7 Long-Term Debt | 76 |
|                                                |   |     Note 8 Notes Payable and Credit Agreements | 77 |
|                                                |   |     Note 9 Fair Value of Financial Instruments | 77 |
|                                                |   |     Note 10 Fair Value Measurements | 78 |
|                                                |   |     Note 11 Derivative Instruments and Hedging Activities | 79 |
|                                                |   |     Note 12 Concentrations of Credit Risk | 83 |
|                                                |   |     Note 13 Income Taxes | 84 |
|                                                |   |     Note 14 Other Income and (Income Deduction) – Net | 85 |
|                                                |   |     Note 15 Information By Operating Segment | 86 |
|                                                |   |     Note 16 Commitments and Contingencies | 88 |
|                                                |   |     Note 17 Interim Financial Information (Unaudited) | 91 |

Table of Contents 

Management Report on Internal Control Over Financial Reporting

Table of Contents 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Table of Contents 

Table of Contents 

| THE LACLEDE GROUP, INC.                                                                                         |   |   |   |   |      |   |   |   |   |      |   |   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|-----------|--------|--------|--------|
| STATEMENTS OF CONSOLIDATED INCOME                                                                               |   |   |   |   |      |   |   |   |   |      |   |   |   |
|                                                                                                            |   |   |   |   |      |   |   |   |   |      |   |   |   |
| (Thousand, Except Per Share Amounts)                                                                            |   |   |   |   |      |   |   |   |   |      |   |   |   |
| Years Ended September 30                                                                                        |   |   |   | 2010   |      |   |   | 2009   |   |      |   | 2008   |   |
|                                                                                                            |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
| Operating Revenues:                                                                                             |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
|   Regulated Gas Distribution                                                                          |   |   |   | $      | 864,297   |   |   |   | $      | 1,053,993 |   |   |   | $ | 1,128,287 |   |
|   Non-Regulated Gas Marketing                                                                         |   |   |   |   | 858,782   |   |   |   |   | 836,865   |   |   |   |   | 1,075,845 |   |
|   Other                                                                                               |   |   |   |   | 11,950    |   |   |   |   | 4,340     |   |   |   |   | 4,841 |   |
|           Total Operating Revenues                            |   |   |   |   | 1,735,029 |   |   |   |   | 1,895,198 |   |   |   |   | 2,208,973 |   |
| Operating Expenses:                                                                                             |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
|   Regulated Gas Distribution                                                                          |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
|     Natural and propane gas                                                                 |   |   |   |   | 519,905   |   |   |   |   | 699,984   |   |   |   |   | 770,097 |   |
|     Other operation expenses                                                                |   |   |   |   | 141,995   |   |   |   |   | 146,542   |   |   |   |   | 144,611 |   |
|     Maintenance                                                                             |   |   |   |   | 27,244    |   |   |   |   | 27,818    |   |   |   |   | 25,827 |   |
|     Depreciation and amortization                                                           |   |   |   |   | 37,572    |   |   |   |   | 36,751    |   |   |   |   | 35,303 |   |
|     Taxes, other than income taxes                                                          |   |   |   |   | 61,407    |   |   |   |   | 68,639    |   |   |   |   | 69,023 |   |
|           Total Regulated Gas Distribution Operating Expenses |   |   |   |   | 788,123   |   |   |   |   | 979,734   |   |   |   |   | 1,044,861 |   |
|   Non-Regulated Gas Marketing                                                                         |   |   |   |   | 836,687   |   |   |   |   | 787,056   |   |   |   |   | 1,048,162 |   |
|   Other                                                                                               |   |   |   |   | 5,353     |   |   |   |   | 3,344     |   |   |   |   | 4,603 |   |
|           Total Operating Expenses                            |   |   |   |   | 1,630,163 |   |   |   |   | 1,770,134 |   |   |   |   | 2,097,626 |   |
| Operating Income                                                                                                |   |   |   |   | 104,866   |   |   |   |   | 125,064   |   |   |   |   | 111,347 |   |
| Other Income and (Income Deductions) – Net                                                                |   |   |   |   | 3,120     |   |   |   |   | 1,453     |   |   |   |   | 1,881 |   |
| Interest Charges:                                                                                               |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
|     Interest on long-term debt                                                              |   |   |   |   | 24,583    |   |   |   |   | 24,583    |   |   |   |   | 19,851 |   |
|     Interest on long-term debt to unconsolidated affiliate trust                            |   |   |   |   | —   |   |   |   |   | —   |   |   |   |   | 486 |   |
|     Other interest charges                                                                  |   |   |   |   | 2,269     |   |   |   |   | 5,163     |   |   |   |   | 9,140 |   |
|           Total Interest Charges                              |   |   |   |   | 26,852    |   |   |   |   | 29,746    |   |   |   |   | 29,477 |   |
| Income from Continuing Operations Before Income Taxes                                                           |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
|   and Dividends on Laclede Gas Redeemable Preferred Stock                                             |   |   |   |   | 81,134    |   |   |   |   | 96,771    |   |   |   |   | 83,751 |   |
| Income Tax Expense                                                                                              |   |   |   |   | 27,094    |   |   |   |   | 32,509    |   |   |   |   | 26,190 |   |
| Dividends on Laclede Gas Redeemable Preferred Stock                                                             |   |   |   |   | —   |   |   |   |   | 15        |   |   |   |   | 35 |   |
| Income from Continuing Operations                                                                               |   |   |   |   | 54,040    |   |   |   |   | 64,247    |   |   |   |   | 57,526 |   |
| Income from Discontinued Operations, Net of Income Tax (Note 2)                                                 |   |   |   |   | —   |   |   |   |   | —   |   |   |   |   | 20,396 |   |
| Net Income                                                                                                      |   |   |   | $      | 54,040    |   |   |   | $      | 64,247    |   |   |   | $ | 77,922 |   |
|                                                                                                            |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
| Average Number of Common Shares Outstanding:                                                                    |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
|   Basic                                                                                               |   |   |   |   | 21,986    |   |   |   |   | 21,893    |   |   |   |   | 21,657 |   |
|   Diluted                                                                                             |   |   |   |   | 22,039    |   |   |   |   | 21,960    |   |   |   |   | 21,730 |   |
|                                                                                                            |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
| Basic Earnings Per Share of Common Stock:                                                                       |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
|   Income from Continuing Operations                                                                   |   |   |   | $      | 2.43      |   |   |   | $      | 2.90      |   |   |   | $ | 2.64 |   |
|   Income from Discontinued Operations                                                                 |   |   |   |   | —   |   |   |   |   | —   |   |   |   |   | 0.93 |   |
|   Net Income                                                                                          |   |   |   | $      | 2.43      |   |   |   | $      | 2.90      |   |   |   | $ | 3.57 |   |
|                                                                                                            |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
| Diluted Earnings Per Share of Common Stock:                                                                     |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
|   Income from Continuing Operations                                                                   |   |   |   | $      | 2.43      |   |   |   | $      | 2.89      |   |   |   | $ | 2.63 |   |
|   Income from Discontinued Operations                                                                 |   |   |   |   | —   |   |   |   |   | —   |   |   |   |   | 0.93 |   |
|   Net Income                                                                                          |   |   |   | $      | 2.43      |   |   |   | $      | 2.89      |   |   |   | $ | 3.56 |   |
|                                                                                                            |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
|                                                                                                            |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
|                                                                                                            |   |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
| See the accompanying Notes to Consolidated Financial Statements.                                                |   |   |   |   |      |   |   |   |   |      |   |

Table of Contents 

| THE LACLEDE GROUP, INC.                                                                                            |   |   |   |   |    |   |   |   |   |    |   |   |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|---------|--------|--------|--------|--------|---------|--------|--------|--------|
| STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME                                                                    |   |   |   |   |    |   |   |   |   |
|                                                                                                               |   |   |   |   |    |   |   |   |   |    |   |   |   |
| (Thousands)                                                                                                        |   |   |   |   |    |   |   |   |   |    |   |   |   |
| Years Ended September 30                                                                                           |   |   |   | 2010   |    |   |   | 2009   |   |    |   | 2008   |   |
|                                                                                                               |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
| Net Income                                                                                                         |   |   |   | $      | 54,040  |   |   |   | $      | 64,247  |   |   |   | $ | 77,922 |   |
| Other Comprehensive Income (Loss), Before Tax:                                                                     |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
|   Net gains (losses) on cash flow hedging derivative instruments:                                        |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
|     Net hedging gain arising during the period                                                 |   |   |   |   | 5,259   |   |   |   |   | 6,019   |   |   |   |   | 8,091 |   |
|     Reclassification adjustment for gains included in net income                               |   |   |   |   | (13,045 | )      |   |   |   | (15,270 | )      |   |   |   | (3,814 | ) |
|         Net unrealized (losses) gains on cash flow hedging                 |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
|           derivative instruments                                 |   |   |   |   | (7,786  | )      |   |   |   | (9,251  | )      |   |   |   | 4,277 |   |
|   Defined benefit pension and other postretirement benefit plans:                                        |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
|     Net actuarial loss arising during the period                                               |   |   |   |   | (1,783  | )      |   |   |   | (1,728  | )      |   |   |   | (271 | ) |
|     Amortization of actuarial loss included in net periodic pension and                        |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
|       postretirement benefit cost                                                    |   |   |   |   | 1,471   |   |   |   |   | 199     |   |   |   |   | 171 |   |
|         Net defined benefit pension and other postretirement benefit plans |   |   |   |   | (312    | )      |   |   |   | (1,529  | )      |   |   |   | (100 | ) |
| Other Comprehensive (Loss) Income, Before Tax                                                                      |   |   |   |   | (8,098  | )      |   |   |   | (10,780 | )      |   |   |   | 4,177 |   |
| Income Tax (Benefit) Expense Related to Items                                                                      |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
|   of Other Comprehensive Income (Loss)                                                                   |   |   |   |   | (3,127  | )      |   |   |   | (4,146  | )      |   |   |   | 1,597 |   |
| Other Comprehensive (Loss) Income, Net of Tax                                                                      |   |   |   |   | (4,971  | )      |   |   |   | (6,634  | )      |   |   |   | 2,580 |   |
| Comprehensive Income                                                                                               |   |   |   | $      | 49,069  |   |   |   | $      | 57,613  |   |   |   | $ | 80,502 |   |
|                                                                                                               |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
|                                                                                                               |   |   |   |   |    |   |   |   |   |    |   |   |   |   |   |   |
|                                                                                                               |   |   |   |   |    |   |   |   |   |    |   |   |   |
| See the accompanying Notes to Consolidated Financial Statements.                                                   |   |   |   |   |    |   |   |   |   |    |   |   |   |

Table of Contents 

| THE LACLEDE GROUP, INC.                                                                    |   |   |   |   |      |   |   |   |   |
|--------------------------------------------------------------------------------------------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                |   |   |   |   |      |   |   |   |   |
|                                                                                       |   |   |   |   |      |   |   |   |   |
| (Thousands)                                                                                |   |   |   |   |      |   |   |   |   |
| September 30                                                                               |   |   |   | 2010   |      |   |   | 2009   |   |
|                                                                                       |   |   |   |   |      |   |   |   |   |   |   |
| ASSETS                                                                                     |   |   |   |   |      |   |   |   |   |   |   |
| Utility Plant                                                                              |   |   |   | $      | 1,326,284 |   |   |   | $      | 1,280,238 |   |
|   Less – Accumulated depreciation and amortization                         |   |   |   |   | 442,200   |   |   |   |   | 424,309 |   |
|           Net Utility Plant              |   |   |   |   | 884,084   |   |   |   |   | 855,929 |   |
|                                                                                       |   |   |   |   |      |   |   |   |   |   |   |
| Non-utility property (net of accumulated depreciation and                                  |   |   |   |   |      |   |   |   |   |   |   |
|   amortization, 2010, $3,864; 2009, $3,508)                                      |   |   |   |   | 4,551     |   |   |   |   | 4,061 |   |
| Other investments                                                                          |   |   |   |   | 50,226    |   |   |   |   | 44,973 |   |
|           Other Property and Investments |   |   |   |   | 54,777    |   |   |   |   | 49,034 |   |
|                                                                                       |   |   |   |   |      |   |   |   |   |   |   |
| Current Assets:                                                                            |   |   |   |   |      |   |   |   |   |   |   |
|   Cash and cash equivalents                                                      |   |   |   |   | 86,919    |   |   |   |   | 74,591 |   |
|   Accounts receivable:                                                           |   |   |   |   |      |   |   |   |   |   |   |
|     Utility                                                            |   |   |   |   | 70,053    |   |   |   |   | 81,262 |   |
|     Non-utility                                                        |   |   |   |   | 56,160    |   |   |   |   | 42,382 |   |
|     Other                                                              |   |   |   |   | 11,671    |   |   |   |   | 7,511 |   |
|     Allowance for doubtful accounts                                    |   |   |   |   | (10,295   | )      |   |   |   | (11,160 | ) |
|   Inventories:                                                                   |   |   |   |   |      |   |   |   |   |   |   |
|     Natural gas stored underground at LIFO cost                        |   |   |   |   | 113,576   |   |   |   |   | 93,313 |   |
|     Propane gas at FIFO cost                                           |   |   |   |   | 15,625    |   |   |   |   | 19,847 |   |
|     Materials, supplies, and merchandise at average cost               |   |   |   |   | 3,867     |   |   |   |   | 4,158 |   |
|   Natural gas receivable                                                         |   |   |   |   | 22,963    |   |   |   |   | 28,344 |   |
|   Derivative instrument assets                                                   |   |   |   |   | 10,285    |   |   |   |   | 17,178 |   |
|   Unamortized purchased gas adjustments                                          |   |   |   |   | 23,718    |   |   |   |   | — |   |
|   Deferred income taxes                                                          |   |   |   |   | —   |   |   |   |   | 1,707 |   |
|   Prepayments and other                                                          |   |   |   |   | 9,653     |   |   |   |   | 9,650 |   |
|           Total Current Assets           |   |   |   |   | 414,195   |   |   |   |   | 368,783 |   |
|                                                                                       |   |   |   |   |      |   |   |   |   |   |   |
| Deferred Charges:                                                                          |   |   |   |   |      |   |   |   |   |   |   |
|   Regulatory assets                                                              |   |   |   |   | 479,462   |   |   |   |   | 482,999 |   |
|   Other                                                                          |   |   |   |   | 7,678     |   |   |   |   | 5,273 |   |
|           Total Deferred Charges         |   |   |   |   | 487,140   |   |   |   |   | 488,272 |   |
| Total Assets                                                                               |   |   |   | $      | 1,840,196 |   |   |   | $      | 1,762,018 |   |

Table of Contents 

| THE LACLEDE GROUP, INC.                                                                                  |   |   |   |   |      |   |   |   |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|
| CONSOLIDATED BALANCE SHEETS (Continued)                                                                  |   |   |   |   |      |   |   |   |   |
|                                                                                                     |   |   |   |   |      |   |   |   |   |
| (Thousands)                                                                                              |   |   |   |   |      |   |   |   |   |
| September 30                                                                                             |   |   |   | 2010   |      |   |   | 2009   |   |
|                                                                                                     |   |   |   |   |      |   |   |   |   |   |   |
| CAPITALIZATION AND LIABILITIES                                                                           |   |   |   |   |      |   |   |   |   |   |   |
| Capitalization:                                                                                          |   |   |   |   |      |   |   |   |   |   |   |
|   Common stock equity                                                                          |   |   |   | $      | 535,577   |   |   |   | $      | 517,030 |   |
|   Long-term debt – Laclede Gas                                                           |   |   |   |   | 364,298   |   |   |   |   | 389,240 |   |
|           Total Capitalization                         |   |   |   |   | 899,875   |   |   |   |   | 906,270 |   |
|                                                                                                     |   |   |   |   |      |   |   |   |   |   |   |
| Current Liabilities:                                                                                     |   |   |   |   |      |   |   |   |   |   |   |
|   Notes payable                                                                                |   |   |   |   | 129,650   |   |   |   |   | 129,800 |   |
|   Accounts payable                                                                             |   |   |   |   | 95,595    |   |   |   |   | 72,765 |   |
|   Advance customer billings                                                                    |   |   |   |   | 16,809    |   |   |   |   | 21,140 |   |
|   Current portion of long-term debt                                                            |   |   |   |   | 25,000    |   |   |   |   | — |   |
|   Wages and compensation accrued                                                               |   |   |   |   | 13,410    |   |   |   |   | 12,682 |   |
|   Dividends payable                                                                            |   |   |   |   | 8,942     |   |   |   |   | 8,687 |   |
|   Customer deposits                                                                            |   |   |   |   | 11,244    |   |   |   |   | 12,400 |   |
|   Interest accrued                                                                             |   |   |   |   | 9,639     |   |   |   |   | 9,943 |   |
|   Taxes accrued                                                                                |   |   |   |   | 10,501    |   |   |   |   | 15,951 |   |
|   Unamortized purchased gas adjustments                                                        |   |   |   |   | —   |   |   |   |   | 3,130 |   |
|   Deferred income taxes                                                                        |   |   |   |   | 155       |   |   |   |   | — |   |
|   Other                                                                                        |   |   |   |   | 12,979    |   |   |   |   | 12,642 |   |
|           Total Current Liabilities                    |   |   |   |   | 333,924   |   |   |   |   | 299,140 |   |
|                                                                                                     |   |   |   |   |      |   |   |   |   |   |   |
| Deferred Credits and Other Liabilities:                                                                  |   |   |   |   |      |   |   |   |   |   |   |
|   Deferred income taxes                                                                        |   |   |   |   | 292,391   |   |   |   |   | 256,196 |   |
|   Unamortized investment tax credits                                                           |   |   |   |   | 3,538     |   |   |   |   | 3,754 |   |
|   Pension and postretirement benefit costs                                                     |   |   |   |   | 207,607   |   |   |   |   | 202,681 |   |
|   Asset retirement obligations                                                                 |   |   |   |   | 25,837    |   |   |   |   | 25,503 |   |
|   Regulatory liabilities                                                                       |   |   |   |   | 47,365    |   |   |   |   | 44,225 |   |
|   Other                                                                                        |   |   |   |   | 29,659    |   |   |   |   | 24,249 |   |
|           Total Deferred Credits and Other Liabilities |   |   |   |   | 606,397   |   |   |   |   | 556,608 |   |
| Commitments and Contingencies (Note 16)                                                                  |   |   |   |   |      |   |   |   |   |   |   |
|           Total Capitalization and Liabilities         |   |   |   | $      | 1,840,196 |   |   |   | $      | 1,762,018 |   |
|                                                                                                     |   |   |   |   |      |   |   |   |   |   |   |
|                                                                                                     |   |   |   |   |      |   |   |   |   |   |   |
|                                                                                                     |   |   |   |   |      |   |   |   |   |   |   |
| See the accompanying Notes to Consolidated Financial Statements.                                         |   |   |   |   |      |   |   |   |   |   |   |

Table of Contents 

| THE LACLEDE GROUP, INC.                                                                                 |   |   |   |   |    |   |   |   |   |
|---------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|---------|--------|--------|--------|--------|
| STATEMENTS OF CONSOLIDATED CAPITALIZATION                                                               |   |   |   |   |    |   |   |   |   |
|                                                                                                    |   |   |   |   |    |   |   |   |   |
| (Thousands, Except for Shares and Per Share Amounts)                                                    |   |   |   |   |    |   |   |   |   |
| September 30                                                                                            |   |   |   | 2010   |    |   |   | 2009   |   |
|                                                                                                    |   |   |   |   |    |   |   |   |   |   |   |
| Common Stock Equity:                                                                                    |   |   |   |   |    |   |   |   |   |   |   |
|   Common stock, par value $1 per share:                                                       |   |   |   |   |    |   |   |   |   |   |   |
|     Authorized – 2010 and 2009, 70,000,000 shares                             |   |   |   |   |    |   |   |   |   |   |   |
|       Issued – 2010, 22,292,804 shares; and 2009, 22,168,120 shares |   |   |   | $      | 22,293  |   |   |   | $      | 22,168 |   |
|   Paid-in capital                                                                             |   |   |   |   | 158,698 |   |   |   |   | 154,218 |   |
|   Retained earnings                                                                           |   |   |   |   | 361,723 |   |   |   |   | 342,810 |   |
|   Accumulated other comprehensive loss                                                        |   |   |   |   | (7,137  | )      |   |   |   | (2,166 | ) |
|           Total Common Stock Equity                   |   |   |   |   | 535,577 |   |   |   |   | 517,030 |   |
|                                                                                                    |   |   |   |   |    |   |   |   |   |   |   |
| Long-Term Debt – Laclede Gas:                                                                     |   |   |   |   |    |   |   |   |   |   |   |
|   First Mortgage Bonds:                                                                       |   |   |   |   |    |   |   |   |   |   |   |
|     6-1/2% Series, due November 15, 2010                                       |   |   |   |   | — |   |   |   |   | 25,000 |   |
|     6-1/2% Series, due October 15, 2012                                        |   |   |   |   | 25,000  |   |   |   |   | 25,000 |   |
|     5-1/2% Series, due May 1, 2019                                             |   |   |   |   | 50,000  |   |   |   |   | 50,000 |   |
|     7% Series, due June 1, 2029                                                |   |   |   |   | 25,000  |   |   |   |   | 25,000 |   |
|     7.90% Series, due September 15, 2030                                       |   |   |   |   | 30,000  |   |   |   |   | 30,000 |   |
|     6% Series, due May 1, 2034                                                 |   |   |   |   | 100,000 |   |   |   |   | 100,000 |   |
|     6.15% Series, due June 1, 2036                                             |   |   |   |   | 55,000  |   |   |   |   | 55,000 |   |
|     6.35% Series, due October 15, 2038                                              |   |   |   |   | 80,000  |   |   |   |   | 80,000 |   |
|           Total                                       |   |   |   |   | 365,000 |   |   |   |   | 390,000 |   |
|   Unamortized discount, net of premium, on long-term debt                                     |   |   |   |   | (702    | )      |   |   |   | (760 | ) |
|           Total Long-Term Debt – Laclede Gas    |   |   |   |   | 364,298 |   |   |   |   | 389,240 |   |
|           Total Capitalization                        |   |   |   | $      | 899,875 |   |   |   | $      | 906,270 |   |
|                                                                                                    |   |   |   |   |    |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |    |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |    |   |   |   |   |   |   |
| Long-term debt dollar amounts are exclusive of current portion.                                         |   |   |   |   |    |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |    |   |   |   |   |   |   |
| See the accompanying Notes to Consolidated Financial Statements.                                        |   |   |   |   |    |   |   |   |   |   |   |

Table of Contents 

| THE LACLEDE GROUP, INC.                                                                                                |   |                |   |    |    |     |   |             |   |   |    |
|------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|---------|---------|----------|--------|------------------|--------|--------|---------|
| CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS’ EQUITY                                                           |   |                |   |    |    |     |   |
|                                                                                                                   |   |                |   |    |    |     |   |
|                                                                                                                   |   | Common Stock Issued |   | Paid-in |    | Retained |   | Accum.OtherComp. |   |   |    |
| (Thousands, Except for Shares and Per Share Amounts)                                                                   |   | Shares              |   | Amount  |    | Capital  |   | Earnings         |   | Income |    | Total |   |
|                                                                                                                   |   |                |   |    |    |     |   |             |   |   |    |   |   |   |   |   |   |   |
| BALANCE OCTOBER 1, 2007                                                                                           |   | 21,645,637          |   | $       | 21,646  |     | $      | 136,061          |   | $      | 268,761 |   | $ | 1,857 |   | $ | 428,325 |   |
|   Adoption of FIN 48, as codified in    ASC Topic 740, as of October 1, 2007             |   | —             |   |    | — |     |   | —          |   |   | (1,099  | ) |   | — |   |   | (1,099 | ) |
|   Net income                                                                                                 |   | —             |   |    | — |     |   | —          |   |   | 77,922  |   |   | — |   |   | 77,922 |   |
|   Dividend reinvestment plan                                                                                 |   | 106,436             |   |    | 106     |     |   | 3,681            |   |   | — |   |   | — |   |   | 3,787 |   |
|   Stock-based compensation costs                                                                             |   | —             |   |    | — |     |   | 2,615            |   |   | — |   |   | — |   |   | 2,615 |   |
|   Employee stock options exercised                                                                           |   | 178,750             |   |    | 179     |     |   | 4,833            |   |   | — |   |   | — |   |   | 5,012 |   |
|   Employee restricted stock awards                                                                           |   | 62,650              |   |    | 62      |     |   | (62              | )      |   | — |   |   | — |   |   | — |   |
|   Non-employee directors’ restricted stock awards                                                      |   | —             |   |    | — |     |   | (421             | )      |   | — |   |   | — |   |   | (421 | ) |
|   Tax benefit – stock compensation                                                                     |   | —             |   |    | — |     |   | 534              |   |   | — |   |   | — |   |   | 534 |   |
|   Dividends declared:                                                                                        |   |                |   |    |    |     |   |             |   |   |    |   |   |   |   |   |   |   |
|     Common stock ($1.50 per share)                                                                 |   | —             |   |    | — |     |   | —          |   |   | (32,776 | ) |   | — |   |   | (32,776 | ) |
|   Other comprehensive income, net of tax                                                                     |   | —             |   |    | — |     |   | —          |   |   | — |   |   | 2,580 |   |   | 2,580 |   |
| BALANCE SEPTEMBER 30, 2008                                                                                        |   | 21,993,473          |   |    | 21,993  |     |   | 147,241          |   |   | 312,808 |   |   | 4,437 |   |   | 486,479 |   |
|   Net income                                                                                                 |   | —             |   |    | — |     |   | —          |   |   | 64,247  |   |   | — |   |   | 64,247 |   |
|   Dividend reinvestment plan                                                                                 |   | 47,037              |   |    | 47      |     |   | 1,969            |   |   | — |   |   | — |   |   | 2,016 |   |
|   Stock-based compensation costs                                                                             |   | —             |   |    | — |     |   | 3,981            |   |   | — |   |   | — |   |   | 3,981 |   |
|   Employee stock options exercised                                                                           |   | 54,125              |   |    | 54      |     |   | 1,604            |   |   | — |   |   | — |   |   | 1,658 |   |
|   Employee restricted stock awards                                                                           |   | 73,485              |   |    | 74      |     |   | (74              | )      |   | — |   |   | — |   |   | — |   |
|   Employees’ taxes paid associated with restricted    shares withheld upon vesting |   | —             |   |    | — |     |   | (675             | )      |   | — |   |   | — |   |   | (675 | ) |
|   Non-employee directors’ restricted stock awards                                                      |   | —             |   |    | — |     |   | (570             | )      |   | — |   |   | — |   |   | (570 | ) |
|   Tax benefit – stock compensation                                                                     |   | —             |   |    | — |     |   | 742              |   |   | — |   |   | — |   |   | 742 |   |
|   Dividends declared:                                                                                        |   |                |   |    |    |     |   |             |   |   |    |   |   |   |   |   |   |   |
|     Common stock ($1.54 per share)                                                                 |   | —             |   |    | — |     |   | —          |   |   | (34,100 | ) |   | — |   |   | (34,100 | ) |
|   Other comprehensive loss, net of tax                                                                       |   | —             |   |    | — |     |   | —          |   |   | — |   |   | (6,634 | )  |   | (6,634 | ) |
|   Adoption of SFAS No. 158, as codified in    ASC Topic 715, net of tax                  |   | —             |   |    | — |     |   | —          |   |   | (145    | ) |   | 31 |   |   | (114 | ) |
| BALANCE SEPTEMBER 30, 2009                                                                                   |   | 22,168,120          |   |    | 22,168  |     |   | 154,218          |   |   | 342,810 |   |   | (2,166 | )  |   | 517,030 |   |
|   Net income                                                                                                 |   | —             |   |    | — |     |   | —          |   |   | 54,040  |   |   | — |   |   | 54,040 |   |
|   Dividend reinvestment plan                                                                                 |   | 42,733              |   |    | 43      |     |   | 1,379            |   |   | — |   |   | — |   |   | 1,422 |   |
|   Stock-based compensation costs                                                                             |   | —             |   |    | — |     |   | 3,783            |   |   | — |   |   | — |   |   | 3,783 |   |
|   Employee stock options exercised                                                                           |   | 12,500              |   |    | 13      |     |   | 371              |   |   | — |   |   | — |   |   | 384 |   |
|   Employee restricted stock awards                                                                           |   | 69,451              |   |    | 69      |     |   | (69              | )      |   | — |   |   | — |   |   | — |   |
|   Employees’ taxes paid associated with restricted    shares withheld upon vesting |   | —             |   |    | — |     |   | (576             | )      |   | — |   |   | — |   |   | (576 | ) |
|   Non-employee directors’ restricted stock awards                                                      |   | —             |   |    | — |     |   | (406             | )      |   | — |   |   | — |   |   | (406 | ) |
|   Tax benefit – stock compensation                                                                     |   | —             |   |    | — |     |   | (2               | )      |   | — |   |   | — |   |   | (2 | ) |
|   Dividends declared:                                                                                        |   |                |   |    |    |     |   |             |   |   |    |   |   |   |   |   |   |   |
|     Common stock ($1.58 per share)                                                                 |   | —             |   |    | — |     |   | —          |   |   | (35,127 | ) |   | — |   |   | (35,127 | ) |
|   Other comprehensive loss, net of tax                                                                       |   | —             |   |    | — |     |   | —          |   |   | — |   |   | (4,971 | ) |   | (4,971 | ) |
| BALANCE SEPTEMBER 30, 2010                                                                                   |   | 22,292,804          |   | $       | 22,293  |     | $      | 158,698          |   | $      | 361,723 |   | $ | (7,137 | ) | $ | 535,577 |   |
|                                                                                                                   |   |                |   |    |    |     |   |             |   |   |    |   |   |   |   |   |   |   |
|                                                                                                                   |   |                |   |    |    |     |   |             |   |   |    |   |   |   |   |   |   |   |
|                                                                                                                   |   |                |   |    |    |     |   |             |   |   |    |   |   |   |   |   |   |   |
| See the accompanying Notes to Consolidated Financial Statements.                                                       |   |                |   |    |    |     |   |             |   |   |    |   |   |

Table of Contents 

| THE LACLEDE GROUP, INC.                                                                                         |   |   |    |   |   |     |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|----------|--------|
| STATEMENTS OF CONSOLIDATED CASH FLOWS                                                                           |   |   |    |   |   |     |   |
|                                                                                                            |   |   |    |   |   |     |   |
| (Thousands)                                                                                                     |   |   |    |   |   |     |   |
| Years Ended September 30                                                                                        |   | 2010   |    | 2009   |   | 2008     |   |
|                                                                                                            |   |   |    |   |   |     |   |   |   |   |
| Operating Activities:                                                                                           |   |   |    |   |   |     |   |   |   |   |
|   Net Income                                                                                          |   | $      | 54,040  |   | $      | 64,247   |   | $ | 77,922 |   |
|   Adjustments to reconcile net income to                                                              |   |   |    |   |   |     |   |   |   |   |
|       net cash provided by (used in) operating activities:                        |   |   |    |   |   |     |   |   |   |   |
|     Gain on sale of discontinued operations                                                 |   |   | — |   |   | —  |   |   | (44,401 | ) |
|     Depreciation, amortization and accretion                                                |   |   | 37,908  |   |   | 37,041   |   |   | 36,913 |   |
|     Deferred income taxes and investment tax credits                                        |   |   | 32,757  |   |   | 17,937   |   |   | 5,786 |   |
|     Other - net                                                                             |   |   | 2,891   |   |   | 3,682    |   |   | 5,494 |   |
|     Changes in assets and liabilities:                                                      |   |   |    |   |   |     |   |   |   |   |
|       Accounts receivable – net                                             |   |   | (7,594  | )      |   | 78,964   |   |   | (50,106 | ) |
|       Unamortized purchased gas adjustments                                       |   |   | (26,848 | )      |   | 36,541   |   |   | (20,598 | ) |
|       Deferred purchased gas costs                                                |   |   | 20,265  |   |   | (45,234  | )      |   | (19,614 | ) |
|       Accounts payable                                                            |   |   | 22,457  |   |   | (86,184  | )      |   | 59,161 |   |
|       Advance customer billings – net                                       |   |   | (4,331  | )      |   | (4,408   | )      |   | 108 |   |
|       Taxes accrued                                                               |   |   | (5,583  | )      |   | 4,546    |   |   | (6,886 | ) |
|       Natural gas stored underground                                              |   |   | (20,263 | )      |   | 102,868  |   |   | (68,011 | ) |
|       Other assets and liabilities                                                |   |   | 1,216   |   |   | 18,753   |   |   | (12,300 | ) |
|           Net cash provided by (used in) operating activities |   |   | 106,915 |   |   | 228,753  |   |   | (36,532 | ) |
|                                                                                                            |   |   |    |   |   |     |   |   |   |   |
| Investing Activities:                                                                                           |   |   |    |   |   |     |   |   |   |   |
|   Proceeds from sale of discontinued operations                                                       |   |   | — |   |   | —  |   |   | 83,554 |   |
|   Capital expenditures                                                                                |   |   | (56,997 | )      |   | (52,384  | )      |   | (56,621 | ) |
|   Other investments                                                                                   |   |   | (3,776  | )      |   | 130      |   |   | (1,393 | ) |
|   Proceeds from unconsolidated affiliate trust’s redemption of its common securities            |   |   | — |   |   | —  |   |   | 1,400 |   |
|           Net cash (used in) provided by investing activities |   |   | (60,773 | )      |   | (52,254  | )      |   | 26,940 |   |
|                                                                                                            |   |   |    |   |   |     |   |   |   |   |
| Financing Activities:                                                                                           |   |   |    |   |   |     |   |   |   |   |
|   Issuance of first mortgage bonds                                                                    |   |   | — |   |   | —  |   |   | 80,000 |   |
|   Maturity of first mortgage bonds                                                                    |   |   | — |   |   | —  |   |   | (40,000 | ) |
|   Redemption of long-term debt to unconsolidated affiliate trust                                      |   |   | — |   |   | —  |   |   | (46,400 | ) |
|   (Repayment) issuance of short-term debt - net                                                       |   |   | (150    | )      |   | (86,100  | )      |   | 4,500 |   |
|   Change in book overdrafts                                                                           |   |   | 358     |   |   | 652      |   |   | — |   |
|   Issuance of common stock                                                                            |   |   | 1,806   |   |   | 3,674    |   |   | 8,799 |   |
|   Non-employee directors’ restricted stock awards                                               |   |   | (406    | )      |   | (570     | )      |   | (421 | ) |
|   Dividends paid                                                                                      |   |   | (34,851 | )      |   | (33,806  | )      |   | (32,430 | ) |
|   Preferred stock redeemed/reacquired                                                                 |   |   | — |   |   | (627     | )      |   | (160 | ) |
|   Employees’ taxes paid associated with restricted shares withheld upon vesting                 |   |   | (576    | )      |   | (675     | )      |   | — |   |
|   Excess tax benefits from stock-based compensation                                                   |   |   | 131     |   |   | 761      |   |   | 387 |   |
|   Other                                                                                               |   |   | (126    | )      |   | (116     | )      |   | (2,530 | ) |
|           Net cash used in financing activities               |   |   | (33,814 | )      |   | (116,807 | )      |   | (28,255 | ) |
|                                                                                                            |   |   |    |   |   |     |   |   |   |   |
| Net Increase (Decrease) in Cash and Cash Equivalents                                                            |   |   | 12,328  |   |   | 59,692   |   |   | (37,847 | ) |
| Cash and Cash Equivalents at Beginning of Year                                                                  |   |   | 74,591  |   |   | 14,899   |   |   | 52,746 |   |
| Cash and Cash Equivalents at End of Year                                                                        |   | $      | 86,919  |   | $      | 74,591   |   | $ | 14,899 |   |
|                                                                                                            |   |   |    |   |   |     |   |   |   |   |
| Supplemental Disclosure of Cash Paid (Refunded) During the Year for:                                            |   |   |    |   |   |     |   |   |   |   |
|     Interest                                                                                |   | $      | 26,393  |   | $      | 29,266   |   | $ | 32,687 |   |
|     Income taxes                                                                            |   |   | (3,842  | )      |   | 5,936    |   |   | 47,572 |   |
|                                                                                                            |   |   |    |   |   |     |   |   |   |   |
|                                                                                                            |   |   |    |   |   |     |   |   |   |   |
| See the accompanying Notes to Consolidated Financial Statements.                                                |   |   |    |   |   |     |   |   |   |   |

Table of Contents 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

| 1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|----|--------------------------------------------|

Note 15

Note 2

Note 15

Table of Contents 

|   | (Thousands)                                     |   | 2010   |   | 2009   |   |
|--------|-------------------------------------------------|--------|--------|--------|--------|--------|
|   |                                            |   |   |   |   |   |   |   |
|   | Asset retirement obligations, beginning of year |   | $      | 25,503 |   | $      | 26,833 |   |
|   | Liabilities incurred during the period          |   |   | 208    |   |   | 415 |   |
|   | Liabilities settled during the period           |   |   | (904   | )      |   | (2,776 | ) |
|   | Accretion                                       |   |   | 1,526  |   |   | 1,567 |   |
|   | Revisions in estimated cash flows               |   |   | (496   | )      |   | (536 | ) |
|   | Asset retirement obligations, end of year       |   | $      | 25,837 |   | $      | 25,503 |   |

Table of Contents 

|   | (Thousands)                                                |   | 2010   |    | 2009   |   |
|--------|------------------------------------------------------------|--------|--------|---------|--------|--------|
|   |                                                       |   |   |    |   |   |   |   |
|   | Regulatory Assets:                                         |   |   |    |   |   |   |   |
|   |   Future income taxes due from customers         |   | $      | 100,624 |   | $      | 91,782 |   |
|   |   Pension and postretirement benefit costs       |   |   | 288,077 |   |   | 280,939 |   |
|   |   Unamortized purchased gas adjustments          |   |   | 23,718  |   |   | — |   |
|   |   Purchased gas costs                            |   |   | 74,040  |   |   | 94,305 |   |
|   |   Compensated absences                           |   |   | 7,885   |   |   | 7,425 |   |
|   |   Cold weather rule                              |   |   | 4,275   |   |   | 5,264 |   |
|   |   Other                                          |   |   | 4,561   |   |   | 3,284 |   |
|   |      Total Regulatory Assets      |   | $      | 503,180 |   | $      | 482,999 |   |
|   | Regulatory Liabilities:                                    |   |   |    |   |   |   |   |
|   |   Unamortized purchased gas adjustments          |   | $      | — |   | $      | 3,130 |   |
|   |   Unamortized investment tax credits             |   |   | 3,538   |   |   | 3,754 |   |
|   |   Accrued cost of removal                        |   |   | 45,441  |   |   | 41,590 |   |
|   |   Other                                          |   |   | 1,924   |   |   | 2,635 |   |
|   |      Total Regulatory Liabilities |   | $      | 50,903  |   | $      | 51,109 |   |

Note 11

Table of Contents 

|   | • | The tariffs allow the Utility flexibility to make up to three discretionary PGA changes during each year, in addition to its mandatory November PGA change, so long as such changes are separated by at least two months.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | The Utility is authorized to recover gas inventory carrying costs through its PGA rates to recover costs it incurs to finance its investment in gas supplies that are purchased during the storage injection season for sale during the heating season. The Utility is also authorized to apply carrying costs to all over- or under-recoveries of gas costs, including costs and cost reductions associated with the use of derivative instruments, including cash payments for margin deposits.                                                                                                                                                                                                             |
|   | • | The MoPSC approved a plan applicable to the Utility’s gas supply commodity costs under which it retains a portion of cost savings associated with the acquisition of natural gas below an established benchmark level of gas cost. This gas supply cost management program  allows the Utility to retain 10% of cost savings, up to a maximum of $3.0 million annually. The Utility recorded $0.6 million in pre-tax income under the plan in fiscal year 2008. Laclede Gas did not record any income under the plan during fiscal years 2009 and 2010. Income recorded under the plan is included in Regulated Gas Distribution Operating Revenues on the Statements of Consolidated Income. |

|   | Pre-tax Income               | Customer Share |   | Company Share |
|--------|------------------------------|----------------|--------|---------------|
|   | First $2 million             | 85%            |   | 15%           |
|   | Next $2 million              | 80%            |   | 20%           |
|   | Next $2 million              | 75%            |   | 25%           |
|   | Amounts exceeding $6 million | 70%            |   | 30%           |

Table of Contents 

Note 5

Table of Contents 

Note 3
Note 9
Note 10

Note 4

NEW ACCOUNTING STANDARDS 

Note 10

Note 5

Table of Contents 

Note 3

Note 10

| 2. | DISCONTINUED OPERATIONS |
|----|-------------------------|

Note 16

|   | (Thousands)                         |   | 2008   |   |
|--------|-------------------------------------|--------|--------|--------|
|   |                                |   |   |   |   |
|   | Operating revenues                  |   | $      | 65,423 |   |
|   |                                |   |   |   |   |
|   | Loss from operations                |   |   | (9,434 | ) |
|   | Gain on disposal                    |   |   | 44,401 |   |
|   | Pre-tax income                      |   |   | 34,967 |   |
|   | Income tax expense                  |   |   | 14,571 |   |
|   | Income from Discontinued Operations |   | $      | 20,396 |   |

| 3. | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS |
|----|-------------------------------------------------|

|   | (Thousands)                                            |   | 2010   |    | 2009   |   | 2008    |   |
|--------|--------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
|   |                                                   |   |   |    |   |   |    |   |   |   |   |
|   | Service cost – benefits earned during the period |   | $      | 8,841   |   | $      | 8,936   |   | $ | 12,970 |   |
|   | Interest cost on projected benefit obligation          |   |   | 19,729  |   |   | 20,957  |   |   | 18,680 |   |
|   | Expected return on plan assets                         |   |   | (20,256 | )      |   | (20,938 | )      |   | (20,650 | ) |
|   | Amortization of prior service cost                     |   |   | 756     |   |   | 1,035   |   |   | 1,088 |   |
|   | Amortization of actuarial loss                         |   |   | 8,107   |   |   | 3,096   |   |   | 3,165 |   |
|   | Sub-total                                              |   |   | 17,177  |   |   | 13,086  |   |   | 15,253 |   |
|   | Loss on lump-sum settlement                            |   |   | 1,078   |   |   | — |   |   | — |   |
|   | Regulatory adjustment                                  |   |   | (10,862 | )      |   | (6,890  | )      |   | (9,120 | ) |
|   | Net pension cost                                       |   | $      | 7,393   |   | $      | 6,196   |   | $ | 6,133 |   |

|   | (Thousands)                                    |   | 2010   |   | 2009   |   | 2008    |   |
|--------|------------------------------------------------|--------|--------|--------|--------|--------|---------|--------|
|   |                                           |   |   |   |   |   |    |   |   |   |   |
|   | Current year actuarial loss                    |   | $      | 3,822  |   | $      | 84,187  |   | $ | 18,050 |   |
|   | Amortization of actuarial loss                 |   |   | (9,185 | )      |   | (3,096  | )      |   | (3,165 | ) |
|   | Current year prior service credit              |   |   | (2,949 | )      |   | — |   |   | — |   |
|   | Amortization of prior service cost             |   |   | (756   | )      |   | (1,035  | )      |   | (1,088 | ) |
|   | Sub-total                                      |   |   | (9,068 | )      |   | 80,056  |   |   | 13,797 |   |
|   | Regulatory adjustment                          |   |   | 9,380  |   |   | (78,527 | )      |   | (13,697 | ) |
|   | Total recognized in other comprehensive income |   | $      | 312    |   | $      | 1,529   |   | $ | 100 |   |

Table of Contents 

|   | (Thousands)                                   |   | 2010   |    | 2009 * |   |
|--------|-----------------------------------------------|--------|--------|---------|--------|--------|
|   |                                          |   |   |    |   |   |   |   |
|   | Benefit obligation at beginning of year       |   | $      | 378,032 |   | $      | 308,736 |   |
|   | Service cost                                  |   |   | 8,841   |   |   | 12,371 |   |
|   | Interest cost                                 |   |   | 19,729  |   |   | 26,150 |   |
|   | Plan amendments                               |   |   | (2,949  | )      |   | — |   |
|   | Actuarial loss                                |   |   | 28,437  |   |   | 54,769 |   |
|   | Settlement loss                               |   |   | 778     |   |   | — |   |
|   | Gross benefits paid **                        |   |   | (34,508 | )      |   | (23,994 | ) |
|   |                                          |   |   |    |   |   |   |   |
|   | Benefit obligation at end of year             |   | $      | 398,360 |   | $      | 378,032 |   |
|   |                                          |   |   |    |   |   |   |   |
|   | Accumulated benefit obligation at end of year |   | $      | 338,042 |   | $      | 305,255 |   |

|   | *      | Due to the change in measurement date, fiscal year 2009 amounts reflect 15 months of activity from July 1, 2008 to September 30, 2009.  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                        |
|   | **     | Includes $(2,293) lump-sum payments recognized as settlements in fiscal year 2010. No lump-sum payments were recognized as settlements in fiscal year 2009. |

|   | (Thousands)                                    |   | 2010   |     | 2009 * |   |
|--------|------------------------------------------------|--------|--------|----------|--------|--------|
|   |                                           |   |   |     |   |   |   |   |
|   | Fair value of plan assets at beginning of year |   | $      | 223,688  |   | $      | 248,346 |   |
|   | Actual return on plan assets                   |   |   | 45,648   |   |   | (3,245 | ) |
|   | Employer contributions                         |   |   | 6,094    |   |   | 2,581 |   |
|   | Gross benefits paid **                         |   |   | (34,508  | )      |   | (23,994 | ) |
|   | Fair value of plan assets at end of year       |   | $      | 240,922  |   | $      | 223,688 |   |
|   |                                           |   |   |     |   |   |   |   |
|   | Funded status of plans, end of year            |   | $      | (157,438 | )      | $      | (154,344 | ) |

|   | *      | Due to the change in measurement date, fiscal year 2009 amounts reflect 15 months of activity from July 1, 2008 to September 30, 2009.  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                        |
|   | **     | Includes $(2,293) lump-sum payments recognized as settlements in fiscal year 2010. No lump-sum payments were recognized as settlements in fiscal year 2009. |

Table of Contents 

|   | (Thousands)                                                                           |   | 2010   |     | 2009   |   |
|--------|---------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|
|   |                                                                                  |   |   |     |   |   |   |   |
|   | Current liabilities                                                                   |   | $      | (2,420   | )      | $      | (1,920 | ) |
|   | Noncurrent liabilities                                                                |   |   | (155,018 | )      |   | (152,424 | ) |
|   |   Total                                                                     |   | $      | (157,438 | )      | $      | (154,344 | ) |
|   |                                                                                  |   |   |     |   |   |   |   |
|   | Pre-tax amounts recognized in accumulated other comprehensive income                  |   |   |     |   |   |   |   |
|   |   not yet recognized as components of net periodic pension cost consist of: |   |   |     |   |   |   |   |
|   | Net actuarial loss                                                                    |   | $      | 157,327  |   | $      | 162,689 |   |
|   | Prior service costs                                                                   |   |   | 6,245    |   |   | 9,950 |   |
|   |   Sub-total                                                                 |   |   | 163,572  |   |   | 172,639 |   |
|   | Adjustments for amounts included in Regulatory Assets                                 |   |   | (158,867 | )      |   | (168,246 | ) |
|   |   Total                                                                     |   | $      | 4,705    |   | $      | 4,393 |   |

|   | (Thousands)                        |   |   |    |
|--------|------------------------------------|--------|--------|---------|
|   |                               |   |   |    |   |
|   | Amortization of net actuarial loss |   | $      | 10,228  |   |
|   | Amortization of prior service cost |   |   | 642     |   |
|   |   Sub-total              |   |   | 10,870  |   |
|   | Regulatory adjustment              |   |   | (10,444 | ) |
|   |   Total                  |   | $      | 426     |   |

|   |                                                  | 2010   |   | 2009   |   | 2008   |
|--------|-------------------------------------------------------|--------|--------|--------|--------|--------|
|   |                                                  |   |   |   |   |   |
|   | Weighted average discount rate                        | 5.25%  |   | 6.60%  |   | 6.25%  |
|   | Weighted average rate of future compensation increase | 3.25%  |   | 3.75%  |   | 3.50%  |
|   | Expected long-term rate of return on plan assets      | 8.25%  |   | 8.25%  |   | 8.25%  |

|   |                                                  | 2010   |   | 2009   |
|--------|-------------------------------------------------------|--------|--------|--------|
|   |                                                  |   |   |   |
|   | Weighted average discount rate                        | 4.75%  |   | 5.25%  |
|   | Weighted average rate of future compensation increase | 3.00%  |   | 3.25%  |

Table of Contents 

|   | (Thousands)                    |   | 2010   |    | 2009   |   |
|--------|--------------------------------|--------|--------|---------|--------|--------|
|   |                           |   |   |    |   |   |   |   |
|   | Projected benefit obligation   |   | $      | 398,360 |   | $      | 378,032 |   |
|   | Fair value of plan assets      |   |   | 240,922 |   |   | 223,688 |   |
|   |                           |   |   |    |   |   |   |   |
|   | Accumulated benefit obligation |   |   | 338,042 |   |   | 305,255 |   |
|   | Fair value of plan assets      |   |   | 240,922 |   |   | 223,688 |   |

|   |              | 2011   |   | 2010   |   | 2009   |
|--------|-------------------|--------|--------|--------|--------|--------|
|   |              | Target |   | Actual |   | Actual |
|   |              |   |   |   |   |   |
|   | Equity Strategy   | 50%    |   | 49%    |   | 50%    |
|   | Debt Securities   | 50%    |   | 51%    |   | 50%    |
|   |   Total | 100%   |   | 100%   |   | 100%   |

|   |  (Millions)  |   |  Pensions fromQualified Trust |   | Pensions fromLaclede GasFunds |   |
|--------|-------------------|--------|------------------------------------|--------|-------------------------------|--------|
|   |              |   |                               |   |                          |   |   |   |   |   |   |   |
|   | 2011              |   |                               | $      | 22.0                          |   |   |   | $ | 2.4 |   |   |
|   | 2012              |   |                               |   | 20.8                          |   |   |   |   | 1.5 |   |   |
|   | 2013              |   |                               |   | 23.8                          |   |   |   |   | 1.0 |   |   |
|   | 2014              |   |                               |   | 25.9                          |   |   |   |   | 0.8 |   |   |
|   | 2015              |   |                               |   | 30.1                          |   |   |   |   | 0.7 |   |   |
|   | 2016 – 2020 |   |                               |   | 188.2                         |   |   |   |   | 3.7 |   |   |

Table of Contents 

|   | (Thousands)                                            |   | 2010   |   | 2009   |   | 2008   |   |
|--------|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|   |                                                   |   |   |   |   |   |   |   |   |   |   |
|   | Service cost – benefits earned during the period |   | $      | 6,442  |   | $      | 5,132  |   | $ | 4,560 |   |
|   | Interest cost on accumulated postretirement            |   |   |   |   |   |   |   |   |   |   |
|   |   benefit obligation                         |   |   | 4,515  |   |   | 4,679  |   |   | 3,909 |   |
|   | Expected return on plan assets                         |   |   | (3,032 | )      |   | (2,376 | )      |   | (2,039 | ) |
|   | Amortization of transition obligation                  |   |   | 136    |   |   | 136    |   |   | 136 |   |
|   | Amortization of prior service credit                   |   |   | (2,328 | )      |   | (2,328 | )      |   | (2,328 | ) |
|   | Amortization of actuarial loss                         |   |   | 3,980  |   |   | 3,509  |   |   | 2,985 |   |
|   | Sub-total                                              |   |   | 9,713  |   |   | 8,752  |   |   | 7,223 |   |
|   | Regulatory adjustment                                  |   |   | (2,071 | )      |   | (1,110 | )      |   | 419 |   |
|   | Net postretirement benefit cost                        |   | $      | 7,642  |   | $      | 7,642  |   | $ | 7,642 |   |

|   | (Thousands)                                    |   | 2010   |    | 2009   |   | 2008    |   |
|--------|------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
|   |                                           |   |   |    |   |   |    |   |   |   |   |
|   | Current year actuarial loss                    |   | $      | 6,713   |   | $      | 11,137  |   | $ | 9,772 |   |
|   | Amortization of actuarial loss                 |   |   | (3,980  | )      |   | (3,509  | )      |   | (2,985 | ) |
|   | Amortization of prior service credit           |   |   | 2,328   |   |   | 2,328   |   |   | 2,328 |   |
|   | Amortization of transition obligation          |   |   | (136    | )      |   | (136    | )      |   | (136 | ) |
|   | Sub-total                                      |   |   | 4,925   |   |   | 9,820   |   |   | 8,979 |   |
|   | Regulatory adjustment                          |   |   | (4,925  | )      |   | (9,820  | )      |   | (8,979 | ) |
|   | Total recognized in other comprehensive income |   | $      | — |   | $      | — |   | $ | — |   |

|   | (Thousands)                             |   | 2010   |   | 2009 * |   |
|--------|-----------------------------------------|--------|--------|--------|--------|--------|
|   |                                    |   |   |   |   |   |   |   |
|   | Benefit obligation at beginning of year |   | $      | 83,631 |   | $      | 69,714 |   |
|   | Service cost                            |   |   | 6,442  |   |   | 6,415 |   |
|   | Interest cost                           |   |   | 4,515  |   |   | 5,848 |   |
|   | Actuarial loss                          |   |   | 7,564  |   |   | 7,298 |   |
|   | Gross benefits paid                     |   |   | (4,173 | )      |   | (5,644 | ) |
|   | Benefit obligation at end of year       |   | $      | 97,979 |   | $      | 83,631 |   |

|   | * | Due to the change in measurement date, fiscal year 2009 amounts reflect 15 months of activity from July 1, 2008 to September 30, 2009. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents 

|   | (Thousands)                                    |   | 2010   |    | 2009 * |   |
|--------|------------------------------------------------|--------|--------|---------|--------|--------|
|   |                                           |   |   |    |   |   |   |   |
|   | Fair value of plan assets at beginning of year |   | $      | 33,561  |   | $      | 26,082 |   |
|   | Actual return on plan assets                   |   |   | 3,883   |   |   | (869 | ) |
|   | Employer contributions                         |   |   | 11,819  |   |   | 13,992 |   |
|   | Gross benefits paid                            |   |   | (4,173  | )      |   | (5,644 | ) |
|   | Fair value of plan assets at end of year       |   | $      | 45,090  |   | $      | 33,561 |   |
|   |                                           |   |   |    |   |   |   |   |
|   | Funded status of plans, end of year            |   | $      | (52,889 | )      | $      | (50,070 | ) |

|   | * | Due to the change in measurement date, fiscal year 2009 amounts reflect 15 months of activity from July 1, 2008 to September 30, 2009. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (Thousands)                                                                      |   | 2010   |    | 2009   |   |
|--------|----------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
|   |                                                                             |   |   |    |   |   |   |   |
|   | Current liabilities                                                              |   | $      | (300    | )      | $      | (280 | ) |
|   | Noncurrent liabilities                                                           |   |   | (52,589 | )      |   | (49,790 | ) |
|   |   Total                                                                |   | $      | (52,889 | )      | $      | (50,070 | ) |
|   |                                                                             |   |   |    |   |   |   |   |
|   | Pre-tax amounts recognized in accumulated other comprehensive income             |   |   |    |   |   |   |   |
|   |   not yet recognized as components of net periodic postretirement cost |   |   |    |   |   |   |   |
|   |     consist of:                                              |   |   |    |   |   |   |   |
|   | Net actuarial loss                                                               |   | $      | 49,442  |   | $      | 46,709 |   |
|   | Prior service credit                                                             |   |   | (4,423  | )      |   | (6,751 | ) |
|   | Transition obligation                                                            |   |   | 365     |   |   | 501 |   |
|   |   Sub-total                                                            |   |   | 45,384  |   |   | 40,459 |   |
|   | Adjustments for amounts included in Regulatory Assets                            |   |   | (45,384 | )      |   | (40,459 | ) |
|   |   Total                                                                |   | $      | — |   | $      | — |   |

|   |   (Thousands)                           |   |   |    |   |
|--------|----------------------------------------------|--------|--------|---------|--------|
|   |   Amortization of net actuarial loss    |   | $      | 4,443   |   |
|   |   Amortization of prior service credit  |   |   | (2,328  | )      |
|   |   Amortization of transition obligation |   |   | 136     |   |
|   |     Sub-total                 |   |   | 2,251   |   |
|   |   Regulatory adjustment                 |   |   | (2,251  | )      |
|   |     Total                     |   | $      | — |   |

|   |                                                  | 2010   |   | 2009   |   | 2008   |
|--------|-------------------------------------------------------|--------|--------|--------|--------|--------|
|   |                                                  |   |   |   |   |   |
|   | Weighted average discount rate                        | 5.15%  |   | 6.35%  |   | 6.25%  |
|   | Weighted average rate of future compensation increase | 3.25%  |   | 3.75%  |   | 3.50%  |
|   | Expected long-term rate of return on plan assets      | 8.25%  |   | 8.25%  |   | 8.25%  |

Table of Contents 

|   |                                                  | 2010   |   | 2009   |
|--------|-------------------------------------------------------|--------|--------|--------|
|   |                                                  |   |   |   |
|   | Weighted average discount rate                        | 4.70%  |   | 5.15%  |
|   | Weighted average rate of future compensation increase | 3.00%  |   | 3.25%  |

|   |                                                            | 2010   |   | 2009   |
|--------|-----------------------------------------------------------------|--------|--------|--------|
|   | Medical cost trend assumed for next year                        | 8.00%  |   | 8.00%  |
|   | Rate to which the medical cost trend rate is assumed to decline |   |   |   |
|   |     (the ultimate medical cost trend rate)  | 5.00%  |   | 5.00%  |
|   | Year that the rate reaches the ultimate trend                   | 2017   |   | 2016   |

|   | (Thousands)                                             |   | 1% Increase |   | 1% Decrease |   |
|--------|---------------------------------------------------------|--------|-------------|--------|-------------|--------|
|   |                                                    |   |        |   |        |   |   |   |   |   |
|   | Effect on net periodic postretirement benefit cost      |   |        | $      | 1,270       |   |   | $ | (1,130 | ) |
|   | Effect on accumulated postretirement benefit obligation |   |        |   | 5,850       |   |   |   | (5,300 | ) |

|   |              | 2011   |   | 2010   |   | 2009   |
|--------|-------------------|--------|--------|--------|--------|--------|
|   |              | Target |   | Actual |   | Actual |
|   |              |   |   |   |   |   |
|   | Equity Securities | 60%    |   | 59%    |   | 58%    |
|   | Debt Securities   | 40%    |   | 41%    |   | 42%    |
|   |   Total | 100%   |   | 100%   |   | 100%   |

Table of Contents 

|   |  (Millions)  |   | Benefits PaidfromQualified Trust |    | Benefits Paidfrom Laclede GasFunds |   |
|--------|-------------------|--------|----------------------------------|--------------|------------------------------------|--------|
|   |              |   |                             |         |                               |   |   |   |   |   |   |   |
|   | 2011              |   |                             | $            | 5.0                                |   |   |   | $ | 0.3 |   |   |
|   | 2012              |   |                             |         | 5.3                                |   |   |   |   | 0.3 |   |   |
|   | 2013              |   |                             |         | 5.5                                |   |   |   |   | 0.3 |   |   |
|   | 2014              |   |                             |         | 5.9                                |   |   |   |   | 0.3 |   |   |
|   | 2015              |   |                             |         | 6.4                                |   |   |   |   | 0.3 |   |   |
|   | 2016 – 2020 |   |                             |         | 45.7                               |   |   |   |   | 1.9 |   |   |

|   | (Thousands)                                                       |   |   | QuotedPrices inActiveMarkets(Level 1) |   |   | SignificantObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |   | Total   |   |
|--------|-------------------------------------------------------------------|--------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|--------|----------------------------------------|--------|--------|---------|--------|
|   | As of September 30, 2010                                |   |   |                                  |   |   |                                 |   |   |                                   |   |   |    |   |
|   | Cash and cash equivalents                                         |   | $      | 1,406                                 |   | $      | —                              |   | $      | —                                |   | $      | 1,406   |   |
|   | Debt Securities                                                   |   |   |                                  |   |   |                                 |   |   |                                   |   |   |    |   |
|   |   U.S. bond mutual funds                                |   |   | 33,082                                |   |   | —                              |   |   | —                                |   |   | 33,082  |   |
|   |   U.S. government                                       |   |   | —                               |   |   | 90,993                               |   |   | —                                |   |   | 90,993  |   |
|   |   U.S. corporate                                        |   |   | —                               |   |   | 90,476                               |   |   | —                                |   |   | 90,476  |   |
|   |   U.S. municipal                                        |   |   | —                               |   |   | 6,241                                |   |   | —                                |   |   | 6,241   |   |
|   |   International                                         |   |   | —                               |   |   | 18,676                               |   |   | —                                |   |   | 18,676  |   |
|   | Derivative instruments (a)                                        |   |   | —                               |   |   | 9                                    |   |   | —                                |   |   | 9       |   |
|   | Other                                                             |   |   | —                               |   |   | 39                                   |   |   | —                                |   |   | 39      |   |
|   |           Total |   | $      | 34,488                                |   | $      | 206,434                              |   | $      | —                                |   | $      | 240,922 |   |

|   | (a) | Derivative assets of $10,399 net of cash margin payable of $10,390. |
|--------|-----|---------------------------------------------------------------------|

Table of Contents 

|   | (Thousands)                                                       |   |   | QuotedPrices inActiveMarkets(Level 1) |   |   | SignificantObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |   | Total  |   |
|--------|-------------------------------------------------------------------|--------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|--------|----------------------------------------|--------|--------|--------|--------|
|   | As of September 30, 2010                                |   |   |                                  |   |   |                                 |   |   |                                   |   |   |   |   |
|   | Cash and cash equivalents                                         |   | $      | 1,021                                 |   | $      | —                              |   | $      | —                                |   | $      | 1,021  |   |
|   | U.S. stock/bond mutual fund                                       |   |   | 44,069                                |   |   | —                              |   |   | —                                |   |   | 44,069 |   |
|   |           Total |   | $      | 45,090                                |   | $      | —                              |   | $      | —                                |   | $      | 45,090 |   |

| 4. | STOCK-BASED COMPENSATION |
|----|--------------------------|

Table of Contents 

|   |                                        |   |    |   |   | Weighted   |
|--------|---------------------------------------------|--------|---------|--------|--------|------------|
|   |                                        |   |    |   |   | Average    |
|   |                                        |   | Shares/ |   |   | Grant Date |
|   |                                        |   | Units   |   |   | Fair Value |
|   |                                        |   |    |   |   |       |   |   |   |
|   | Nonvested at September 30, 2009        |   | 225,950 |   |   |       | $ | 37.85 |   |
|   |                                        |   |    |   |   |       |   |   |   |
|   | Granted (maximum shares that can be earned) |   | 95,400  |   |   |       | $ | 25.41 |   |
|   | Vested                                      |   | (58,250 | )      |   |       | $ | 34.75 |   |
|   | Forfeited                                   |   | (7,800  | )      |   |       | $ | 32.67 |   |
|   |                                        |   |    |   |   |       |   |   |   |
|   | Nonvested at September 30, 2010   |   | 255,300 |   |   |       | $ | 34.07 |   |

|   |                                      |   |    |   |   | Weighted   |
|--------|-------------------------------------------|--------|---------|--------|--------|------------|
|   |                                      |   |    |   |   | Average    |
|   |                                      |   | Shares/ |   |   | Grant Date |
|   |                                      |   | Units   |   |   | Fair Value |
|   |                                      |   |    |   |   |       |   |   |   |
|   | Nonvested at September 30, 2009      |   | 90,150  |   |   |       | $ | 39.08 |   |
|   |                                      |   |    |   |   |       |   |   |   |
|   | Granted                                   |   | 42,000  |   |   |       | $ | 31.08 |   |
|   | Vested                                    |   | (7,000  | )      |   |       | $ | 34.18 |   |
|   | Forfeited                                 |   | (3,300  | )      |   |       | $ | 38.49 |   |
|   |                                      |   |    |   |   |       |   |   |   |
|   | Nonvested at September 30, 2010 |   | 121,850 |   |   |       | $ | 36.62 |   |

Table of Contents 

|   |                                                                         |   |    |   |   |     |    |   | Weighted    |   |   |      |   |
|--------|------------------------------------------------------------------------------|--------|---------|--------|--------|----------|---------|--------|-------------|--------|--------|-----------|--------|
|   |                                                                         |   |    |   |   |     |    |   | Average     |   |   |      |   |
|   |                                                                         |   |    |   |   | Weighted |    |   | Remaining   |   |   | Aggregate |   |
|   |                                                                         |   |    |   |   | Average  |    |   | Contractual |   |   | Intrinsic |   |
|   |                                                                         |   | Stock   |   |   | Exercise |    |   | Term        |   |   | Value     |   |
|   |                                                                         |   | Options |   |   | Price    |    |   | (Years)     |   |   | ($000)    |   |
|   |                                                                         |   |    |   |   |     |    |   |        |   |   |      |   |   |   |
|   | Outstanding at September 30, 2009                                            |   | 356,225 |   |   | $        | 30.84   |   |        |   |   |      |   |   |   |
|   |                                                                         |   |    |   |   |     |    |   |        |   |   |      |   |   |   |
|   | Granted                                                                      |   | — |   |   | $        | — |   |        |   |   |      |   |   |   |
|   | Exercised                                                                    |   | (12,500 | )      |   | $        | 30.70   |   |        |   |   |      |   |   |   |
|   | Forfeited                                                                    |   | (2,125  | )      |   | $        | 34.95   |   |        |   |   |      |   |   |   |
|   | Expired                                                                      |   | (5,625  | )      |   | $        | 34.95   |   |        |   |   |      |   |   |   |
|   |                                                                         |   |    |   |   |     |    |   |        |   |   |      |   |   |   |
|   | Outstanding at September 30, 2010                                  |   | 335,975 |   |   | $        | 30.75   |   |        | 4.3    |   |      | $      | 1,271 |   |
|   |                                                                         |   |    |   |   |     |    |   |        |   |   |      |   |   |   |
|   | Fully Vested and Expected to Vest  at September 30, 2010 |   | 334,347 |   |   | $        | 30.73   |   |        | 4.3    |   |      | $      | 1,271 |   |
|   |                                                                         |   |    |   |   |     |    |   |        |   |   |      |   |   |   |
|   | Exercisable at September 30, 2010                                  |   | 312,725 |   |   | $        | 30.44   |   |        | 4.2    |   |      | $      | 1,271 |   |

Table of Contents 

|   |                             | 2010      |   | 2009      |   | 2008      |   |
|--------|----------------------------------|-----------|--------|-----------|--------|-----------|--------|
|   |                             |      |   |      |   |      |   |
|   | Risk free interest rate          | 1.40%     |   | 1.61%     |   | 2.89%     |   |
|   | Expected dividend yield of stock | —   |   | —   |   | —   |   |
|   | Expected volatility of stock     | 35.3%     |   | 31.8%     |   | 24.96%    |   |
|   | Vesting period                   | 2.9 years |   | 2.9 years |   | 2.8 years |   |

|   | (Thousands)                                                   |   | 2010   |   | 2009   |   | 2008   |   |
|--------|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|   |                                                          |   |   |   |   |   |   |   |   |   |   |
|   | Total equity compensation cost                                |   | $      | 3,795  |   | $      | 3,990  |   | $ | 2,651 |   |
|   | Compensation cost capitalized                                 |   |   | (798   | )      |   | (815   | )      |   | (578 | ) |
|   | Compensation cost recognized in net income                    |   |   | 2,997  |   |   | 3,175  |   |   | 2,073 |   |
|   | Income tax benefit recognized in net income                   |   |   | (1,156 | )      |   | (1,225 | )      |   | (799 | ) |
|   | Compensation cost recognized in net income, net of income tax |   | $      | 1,841  |   | $      | 1,950  |   | $ | 1,274 |   |

Table of Contents 

| 5. | EARNINGS PER COMMON SHARE |
|----|---------------------------|

Note 1
Note 1

|   | (Thousands, Except Per Share Amounts)                                         |   | 2010   |   | 2009   |   | 2008    |   |
|--------|-------------------------------------------------------------------------------|--------|--------|--------|--------|--------|---------|--------|
|   | Basic EPS:                                                                    |   |   |   |   |   |    |   |   |   |   |
|   | Income from Continuing Operations                                             |   | $      | 54,040 |   | $      | 64,247  |   | $ | 57,526 |   |
|   |   Less: Income allocated to participating securities                |   |   | 529    |   |   | 699     |   |   | 477 |   |
|   | Income from Continuing Operations Available  to Common Shareholders |   | $      | 53,511 |   | $      | 63,548  |   | $ | 57,049 |   |
|   |                                                                          |   |   |   |   |   |    |   |   |   |   |
|   | Weighted Average Shares Outstanding                                           |   |   | 21,986 |   |   | 21,893  |   |   | 21,657 |   |
|   | Earnings Per Share of Common Stock from                                       |   |   |   |   |   |    |   |   |   |   |
|   |   Continuing Operations                                             |   | $      | 2.43   |   | $      | 2.90    |   | $ | 2.64 |   |
|   |                                                                          |   |   |   |   |   |    |   |   |   |   |
|   | Diluted EPS:                                                                  |   |   |   |   |   |    |   |   |   |   |
|   | Income from Continuing Operations                                             |   | $      | 54,040 |   | $      | 64,247  |   | $ | 57,526 |   |
|   |   Less: Income allocated to participating securities                |   |   | 528    |   |   | 698     |   |   | 476 |   |
|   | Income from Continuing Operations Available  to Common Shareholders |   | $      | 53,512 |   | $      | 63,549  |   | $ | 57,050 |   |
|   |                                                                          |   |   |   |   |   |    |   |   |   |   |
|   | Weighted Average Shares Outstanding                                           |   |   | 21,986 |   |   | 21,893  |   |   | 21,657 |   |
|   | Dilutive Effect of Stock Options                                              |   |   |   |   |   |    |   |   |   |   |
|   | and Restricted Stock                                                          |   |   | 53     |   |   | 67      |   |   | 73 |   |
|   | Weighted Average Diluted Shares                                               |   |   | 22,039 |   |   | 21,960  |   |   | 21,730 |   |
|   |                                                                          |   |   |   |   |   |    |   |   |   |   |
|   | Earnings Per Share of Common Stock from                                       |   |   |   |   |   |    |   |   |   |   |
|   |   Continuing Operations                                             |   | $      | 2.43   |   | $      | 2.89    |   | $ | 2.63 |   |
|   |                                                                          |   |   |   |   |   |    |   |   |   |   |
|   | Outstanding Shares Excluded from the                                          |   |   |   |   |   |    |   |   |   |   |
|   | Calculation of Diluted EPS Attributable to:                                   |   |   |   |   |   |    |   |   |   |   |
|   | Antidilutive stock options                                                    |   |   | 75     |   |   | — |   |   | — |   |
|   | Performance-contingent restricted stock                                       |   |   | 123    |   |   | 57      |   |   | 30 |   |
|   | Total                                                                         |   |   | 198    |   |   | 57      |   |   | 30 |   |

Table of Contents 

| 6. | STOCKHOLDERS’ EQUITY |
|----|----------------------------|

Table of Contents 

|   | (Thousands)                                                       |   |  Net Unrealized Gains (Losses) on Cash Flow Hedges | Defined Benefit Pension and OtherPostretirementBenefit Plans | Total   |   |
|--------|-------------------------------------------------------------------|--------|---------------------------------------------------------|--------------------------------------------------------------|---------|--------|
|   | Balance, September 30, 2008                                       |   |                                                    | $                                                            | 6,227   |   |   | $ | (1,790 | ) |   | $ | 4,437 |   |
|   | Current-period change                                             |   |                                                    |                                                         | (5,695  | )      |   |   | (939 | ) |   |   | (6,634 | ) |
|   | Adoption of SFAS No. 158, as codified in  ASC Topic 715 |   |                                                    |                                                         | — |   |   |   | 31 |   |   |   | 31 |   |
|   | Balance, September 30, 2009                                       |   |                                                    |                                                         | 532     |   |   |   | (2,698 | ) |   |   | (2,166 | ) |
|   | Current-period change                                             |   |                                                    |                                                         | (4,779  | )      |   |   | (192 | ) |   |   | (4,971 | ) |
|   | Balance, September 30, 2010                             |   |                                                    | $                                                            | (4,247  | )      |   | $ | (2,890 | ) |   | $ | (7,137 | ) |

| 7. | LONG-TERM DEBT |
|----|----------------|

|   | 2011 | $25 million |   (Paid at maturity on November 15, 2010) |
|--------|------|-------------|------------------------------------------------|
|   | 2012 | —     |                                           |
|   | 2013 | $25 million |                                           |
|   | 2014 | —     |                                           |
|   | 2015 | —     |                                           |

Note 6

Table of Contents 

| 8. | NOTES PAYABLE AND CREDIT AGREEMENTS |
|----|-------------------------------------|

| 9. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
|----|-------------------------------------|

|   |  (Thousands)                         |   | CarryingAmount |    | FairValue |   |
|--------|-------------------------------------------|--------|----------------|---------|-----------|--------|
|   |                                      |   |           |    |      |   |   |   |
|   | 2010:                                     |   |           |    |      |   |   |   |
|   | Cash and cash equivalents                 |   | $              | 86,919  |      | $      | 86,919 |   |
|   | Marketable securities                     |   |           | 12,856  |      |   | 12,856 |   |
|   | Derivative instrument assets              |   |           | 12,761  |      |   | 12,761 |   |
|   | Derivative instrument liabilities         |   |           | 14      |      |   | 14 |   |
|   | Short-term debt                           |   |           | 129,650 |      |   | 129,650 |   |
|   | Long-term debt, including current portion |   |           | 389,298 |      |   | 443,959 |   |
|   |                                      |   |           |    |      |   |   |   |
|   | 2009:                                     |   |           |    |      |   |   |   |
|   | Cash and cash equivalents                 |   | $              | 74,591  |      | $      | 74,591 |   |
|   | Marketable securities                     |   |           | 11,110  |      |   | 11,110 |   |
|   | Derivative instrument assets              |   |           | 17,178  |      |   | 17,178 |   |
|   | Derivative instrument liabilities         |   |           | 976     |      |   | 976 |   |
|   | Short-term debt                           |   |           | 129,800 |      |   | 129,800 |   |
|   | Long-term debt                            |   |           | 389,240 |      |   | 423,375 |   |

Note 10

Table of Contents 

| 10. | FAIR VALUE MEASUREMENTS |
|-----|-------------------------|

|   | (Thousands)                                                                   |   |   | QuotedPrices inActiveMarkets(Level 1) |   |   | SignificantObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |   | Effects of Netting and Cash Margin Receivables/Payables |   |   | Total   |   |
|--------|-------------------------------------------------------------------------------|--------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|--------|----------------------------------------|--------|--------|---------------------------------------------------------|--------|--------|---------|--------|
|   | As of September 30, 2010                                            |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   | Assets                                                                        |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   |   U. S. Stock/Bond Mutual Funds                                     |   | $      | 12,856                                |   | $      | —                              |   | $      | —                                |   | $      | —                                                 |   | $      | 12,856  |   |
|   |   NYMEX natural gas contracts                                       |   |   | 5,087                                 |   |   | —                              |   |   | —                                |   |   | 7,214                                                   |   |   | 12,301  |   |
|   |   NYMEX gasoline and heating    oil contracts   |   |   | 59                                    |   |   | —                              |   |   | —                                |   |   | 220                                                     |   |   | 279     |   |
|   |   Natural gas commodity contracts                                   |   |   | —                               |   |   | 161                                  |   |   | 76                                     |   |   | (56                                                     | )      |   | 181     |   |
|   |         Total                         |   | $      | 18,002                                |   | $      | 161                                  |   | $      | 76                                     |   | $      | 7,378                                                   |   | $      | 25,617  |   |
|   |                                                                          |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   | Liabilities                                                                   |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   |   NYMEX natural gas contracts                                       |   | $      | 53,677                                |   | $      | —                              |   | $      | —                                |   | $      | (53,677                                                 | )      | $      | — |   |
|   |   NYMEX gasoline & heating    oil contracts |   |   | 37                                    |   |   | —                              |   |   | —                                |   |   | (37                                                     | )      |   | — |   |
|   |   Natural gas commodity contracts                                   |   |   | —                               |   |   | 17                                   |   |   | 53                                     |   |   | (56                                                     | )      |   | 14      |   |
|   |         Total                         |   | $      | 53,714                                |   | $      | 17                                   |   | $      | 53                                     |   | $      | (53,770                                                 | )      | $      | 14      |   |
|   |                                                                          |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   | As of September 30, 2009                                            |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   | Assets                                                                        |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   |   U. S. Stock/Bond Mutual Funds                                     |   | $      | 11,110                                |   | $      | —                              |   | $      | —                                |   | $      | —                                                 |   | $      | 11,110  |   |
|   |   NYMEX natural gas contracts                                       |   |   | 10,803                                |   |   | —                              |   |   | —                                |   |   | 4,057                                                   |   |   | 14,860  |   |
|   |   NYMEX gasoline and heating    oil contracts   |   |   | 278                                   |   |   | —                              |   |   | —                                |   |   | (1                                                      | )      |   | 277     |   |
|   |   Natural gas commodity contracts                                   |   |   | —                               |   |   | 1,688                                |   |   | 558                                    |   |   | (205                                                    | )      |   | 2,041   |   |
|   |         Total                         |   | $      | 22,191                                |   | $      | 1,688                                |   | $      | 558                                    |   | $      | 3,851                                                   |   | $      | 28,288  |   |
|   |                                                                          |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   | Liabilities                                                                   |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   |   NYMEX natural gas contracts                                       |   | $      | 55,170                                |   | $      | —                              |   | $      | —                                |   | $      | (55,170                                                 | )      | $      | — |   |
|   |   Natural gas commodity contracts                                   |   |   | —                               |   |   | 522                                  |   |   | 659                                    |   |   | (205                                                    | )      |   | 976     |   |
|   |         Total                         |   | $      | 55,170                                |   | $      | 522                                  |   | $      | 659                                    |   | $      | (55,375                                                 | )      | $      | 976     |   |

|   | (Thousands)                                                  |   | 2010   |   | 2009   |   |
|--------|--------------------------------------------------------------|--------|--------|--------|--------|--------|
|   |                                                         |   |   |   |   |   |   |   |
|   | Beginning of period                                          |   | $      | (101   | )      | $      | — |   |
|   | Issuances and settlements - net                              |   |   | 53     |   |   | (109 | ) |
|   | Net gains related to derivatives not held at end of period   |   |   | 48     |   |   | — |   |
|   | Net gains related to derivatives still held at end of period |   |   | 23     |   |   | 8 |   |
|   | End of period                                                |   | $      | 23     |   | $      | (101 | ) |

Table of Contents 

Note 11

| 11. | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
|-----|-----------------------------------------------|

Table of Contents 

|   |                                |   | Laclede Gas Company |   | Laclede EnergyResources, Inc. |    |
|--------|-------------------------------------|--------|---------------------|--------|-------------------------------|---------|
|   |                                |   | MMBtu(millions)     |   | Avg. PricePerMMBtu            |    | MMBtu(millions) |   | Avg. PricePerMMBtu |   |
|   | Open short futures positions        |   |                |   |                          |    |   |   |   |   |   |   |   |   |
|   |     Fiscal 2011 |   | —             |   | $                             | — |   |   | 4.35 |   | $ | 4.84 |   |   |
|   |                                |   |                |   |                          |    |   |   |   |   |   |   |   |   |
|   | Open long futures positions         |   |                |   |                          |    |   |   |   |   |   |   |   |   |
|   |     Fiscal 2011 |   | 13.16               |   | $                             | 6.19    |   |   | 6.66 |   | $ | 5.74 |   |   |
|   |     Fiscal 2012 |   | 4.94                |   |                          | 5.47    |   |   | 2.18 |   |   | 6.43 |   |   |
|   |     Fiscal 2013 |   | —             |   |                          | — |   |   | 0.06 |   |   | 5.41 |   |   |

Table of Contents 

| The Effect of Derivative Instruments on the Statements of Consolidated Income and Statements of Consolidated Comprehensive Income |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                              |   | Location of Gain (Loss) |   |   |   |   |   |   |   |   |   |   |   |
| (Thousands)                                                                                                                       |   | Recorded in Income |   |   |   | 2010 |   |   |   |   | 2009 (a) |   |   |
| Derivatives in Cash Flow Hedging Relationships                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Effective portion of gain (loss) recognized in    OCI on derivatives:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        NYMEX natural gas contracts                                                             |   |   |   |   | $ | 5,099 |   |   |   | $ | 3,733 |   |   |
|        NYMEX gasoline and heating oil contracts                                                |   |   |   |   |   | 160 |   |   |   |   | 248 |   |   |
|           Total                                                                 |   |   |   |   | $ | 5,259 |   |   |   | $ | 3,981 |   |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Effective portion of gain (loss) reclassified from    AOCI to income:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        NYMEX natural gas contracts                                                             |   | Non-Regulated Gas Marketing Operating Revenues |   |   | $ | 15,632 |   |   |   | $ | 12,997 |   |   |
|                                                                                                                              |   | Non-Regulated Gas Marketing Operating Expenses |   |   |   | (2,851 | ) |   |   |   | (6,117 | ) |   |
|                Sub-total                               |   |   |   |   |   | 12,781 |   |   |   |   | 6,880 |   |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        NYMEX gasoline and heating oil contracts                                                |   | Other Regulated Gas Distribution Operating Expenses |   |   |   | 264 |   |   |   |   | 119 |   |   |
|           Total                                                                 |   |   |   |   | $ | 13,045 |   |   |   | $ | 6,999 |   |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Ineffective portion of gain (loss) on derivatives    recognized in income:                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        NYMEX natural gas contracts                                                             |   | Non-Regulated Gas Marketing Operating Revenues |   |   | $ | 1,338 |   |   |   | $ | 745 |   |   |
|                                                                                                                              |   | Non-Regulated Gas Marketing Operating Expenses |   |   |   | (2,305 | ) |   |   |   | (258 | ) |   |
|                Sub-total                               |   |   |   |   |   | (967 | ) |   |   |   | 487 |   |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        NYMEX gasoline and heating oil contracts                                                |   | Other Regulated Gas Distribution Operating Expenses |   |   |   | (57 | ) |   |   |   | 198 |   |   |
|           Total                                                                 |   |   |   |   | $ | (1,024 | ) |   |   | $ | 685 |   |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives Not Designated as Hedging Instruments (b)                                                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Gain (loss) recognized in income on derivatives:                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Natural gas commodity contracts                                                         |   | Non-Regulated Gas Marketing Operating Revenues |   |   | $ | 4,269 |   |   |   | $ | 1,785 |   |   |
|                                                                                                                              |   | Non-Regulated Gas Marketing Operating Expenses |   |   |   | (3,435 | ) |   |   |   | (46 | ) |   |
|        NYMEX natural gas contracts                                                             |   | Non-Regulated Gas Marketing Operating Revenues |   |   |   | (11 | ) |   |   |   | — |   |   |
|                                                                                                                              |   | Non-Regulated Gas Marketing Operating Expenses |   |   |   | (552 | ) |   |   |   | 824 |   |   |
|        NYMEX gasoline and heating oil contracts                                                |   | Other Income and (Income Deductions) - Net |   |   |   | (1 | ) |   |   |   | 17 |   |   |
|           Total                                                                 |   |   |   |   | $ | 270 |   |   |   | $ | 2,580 |   |   |

| (a) | The Company prospectively adopted SFAS No. 161, as codified in ASC Topic 815, in the second quarter of fiscal year 2009. Accordingly, amounts disclosed in this column exclude activity prior to January 1, 2009.                                                                                                                                                                                                   |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Gains and losses on Laclede Gas’ NYMEX natural gas derivative instruments, which are not designated as hedging instruments for financial reporting purposes, are deferred pursuant to the Utility’s PGA Clause and recorded as regulatory assets or regulatory liabilities. These gains and losses are excluded from the table above because they have no direct impact on the Statements of Consolidated Income. |

Table of Contents 

| Fair Value of Derivative Instruments in the Consolidated Balance Sheet at September 30, 2010 |   |
|----------------------------------------------------------------------------------------------|--------|
|                                                                                         |   |   |   |   |   |
|                                                                                         |   | Asset Derivatives |   | Liability Derivatives |   |
| (Thousands)                                                                                  |   | Balance Sheet Location |   | Fair Value | * | Balance Sheet Location |   | Fair Value | * |
| Derivatives designated as hedging instruments                                                |   |   |   |   |   |   |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |
|   NYMEX natural gas contracts                                                      |   | Derivative Instrument Assets | $ | 3,174 |   | Derivative Instrument Assets | $ | 9,705 |   |
|                                                                                         |   | Other Deferred Charges |   | 4 |   | Other Deferred Charges |   | 3,435 |   |
|   NYMEX gasoline and heating oil contracts                                         |   | Derivative Instrument Assets |   | 56 |   | Derivative Instrument Assets |   | 34 |   |
|         Sub-total                                    |   |   |   | 3,234 |   |   |   | 13,174 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments                                            |   |   |   |   |   |   |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |
|   NYMEX natural gas contracts                                                      |   | Derivative Instrument Assets |   | 1,401 |   | Derivative Instrument Assets |   | 37,457 |   |
|                                                                                         |   | Other Deferred Charges |   | 508 |   | Other Deferred Charges |   | 3,080 |   |
|   Natural gas commodity contracts                                                  |   | Derivative Instrument Assets |   | 237 |   | Other Current Liabilities |   | 14 |   |
|                                                                                         |   | Other Current Liabilities |   | — |   | Derivative Instrument Assets |   | 56 |   |
|   NYMEX gasoline and heating oil contracts                                         |   | Derivative Instrument Assets |   | 3 |   | Derivative Instrument Assets |   | 3 |   |
|         Sub-total                                    |   |   |   | 2,149 |   |   |   | 40,610 |   |
|   Total derivatives                                                                |   |   | $ | 5,383 |   |   | $ | 53,784 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |
| Fair Value of Derivative Instruments in the Consolidated Balance Sheet at September 30, 2009 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |
|                                                                                         |   | Asset Derivatives |   | Liability Derivatives |   |
| (Thousands)                                                                                  |   | Balance Sheet Location |   | Fair Value | * | Balance Sheet Location |   | Fair Value | * |
| Derivatives designated as hedging instruments                                                |   |   |   |   |   |   |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |
|   NYMEX natural gas contracts                                                      |   | Derivative Instrument Assets | $ | 3,001 |   | Derivative Instrument Assets | $ | 2,019 |   |
|   NYMEX gasoline and heating oil contracts                                         |   | Derivative Instrument Assets |   | 278 |   | Derivative Instrument Assets |   | — |   |
|         Sub-total                                    |   |   |   | 3,279 |   |   |   | 2,019 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments                                            |   |   |   |   |   |   |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |
|   NYMEX natural gas contracts                                                      |   | Derivative Instrument Assets |   | 7,802 |   | Derivative Instrument Assets |   | 53,151 |   |
|   Natural gas commodity contracts                                                  |   | Derivative Instrument Assets |   | 2,062 |   | Other Current Liabilities |   | 1,160 |   |
|                                                                                         |   | Other Current Liabilities |   | 184 |   | Derivative Instrument Assets |   | 21 |   |
|         Sub-total                                    |   |   |   | 10,048 |   |   |   | 54,332 |   |
|   Total derivatives                                                                |   |   | $ | 13,327 |   |   | $ | 56,351 |   |

| * | The fair values of Asset Derivatives and Liability Derivatives exclude the fair value of cash margin receivables or payables with counterparties subject to netting arrangements. Fair value amounts of derivative contracts (including the fair value amounts of cash margin receivables and payables) for which there is a legal right to set off are presented net on the Consolidated Balance Sheets. As such, the gross balances presented in the table above are not indicative of the Company’s net economic exposure. Refer to Note 10, Fair Value Measurements, for information on the valuation of derivative instruments. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents 

|   | (Thousands)                                                                     |   | 2010   |    | 2009   |   |
|--------|---------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
|   |                                                                            |   |   |    |   |   |   |   |
|   | Fair value of asset derivatives presented above                                 |   | $      | 5,383   |   | $      | 13,327 |   |
|   | Fair value of cash margin receivables                                           |   |   | 61,148  |   |   | 59,226 |   |
|   | Netting of assets and liabilities with the same counterparty                    |   |   | (53,770 | )      |   | (55,375 | ) |
|   |     Total                                                   |   | $      | 12,761  |   | $      | 17,178 |   |
|   |                                                                            |   |   |    |   |   |   |   |
|   | Derivative Instrument Assets, per Consolidated Balance Sheets:                  |   |   |    |   |   |   |   |
|   |   Derivative instrument assets                                        |   | $      | 10,285  |   | $      | 17,178 |   |
|   |   Other deferred charges                                              |   |   | 2,476   |   |   | — |   |
|   |     Total                                                   |   | $      | 12,761  |   | $      | 17,178 |   |
|   |                                                                            |   |   |    |   |   |   |   |
|   | Fair value of liability derivatives presented above                             |   | $      | 53,784  |   | $      | 56,351 |   |
|   | Netting of assets and liabilities with the same counterparty                    |   |   | (53,770 | )      |   | (55,375 | ) |
|   |   Derivative instrument liabilities, per Consolidated Balance Sheets* |   | $      | 14      |   | $      | 976 |   |
|   |                                                                            |   |   |    |   |   |   |   |
| *      | Included in the Other line of the Current Liabilities section                   |   |   |    |   |   |   |   |

| 12. | CONCENTRATIONS OF CREDIT RISK |
|-----|-------------------------------|

Table of Contents 

| 13. | INCOME TAXES |
|-----|--------------|

|   | (Thousands)                                         |   | 2010   |   | 2009   |   | 2008   |   |
|--------|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|   |                                                |   |   |   |   |   |   |   |   |   |   |
|   | Included in Statements of Consolidated Income:      |   |   |   |   |   |   |   |   |   |   |
|   |   Federal                                 |   |   |   |   |   |   |   |   |   |   |
|   |     Current                     |   | $      | (4,796 | )      | $      | 12,614 |   | $ | 17,584 |   |
|   |     Deferred                    |   |   | 28,304 |   |   | 15,454 |   |   | 5,097 |   |
|   |     Investment tax credits      |   |   | (216   | )      |   | (219   | )      |   | (227 | ) |
|   |   State and local                         |   |   |   |   |   |   |   |   |   |   |
|   |     Current                     |   |   | (867   | )      |   | 1,958  |   |   | 2,743 |   |
|   |     Deferred                    |   |   | 4,669  |   |   | 2,702  |   |   | 993 |   |
|   | Total Income Tax Expense from Continuing Operations |   | $      | 27,094 |   | $      | 32,509 |   | $ | 26,190 |   |

|   |                                         |   | 2010   |   | 2009    |   | 2008   |    |
|--------|----------------------------------------------|--------|--------|--------|---------|--------|--------|---------|
|   |                                         |   |   |   |    |   |   |    |   |   |   |
|   | Federal income tax statutory rate            |   |   | 35.0   |  % |   | 35.0   |  % |   | 35.0 |  % |
|   | State and local income taxes, net of federal |   |   |   |    |   |   |    |   |   |   |
|   |   income tax benefits              |   |   | 3.0    |    |   | 3.1    |    |   | 2.9 |   |
|   | Certain expenses capitalized on books and    |   |   |   |    |   |   |    |   |   |   |
|   |   deducted on tax return           |   |   | (4.0   | )       |   | (2.9   | )       |   | (3.5 | ) |
|   | Taxes related to prior years                 |   |   | 0.1    |    |   | (0.6   | )       |   | (1.0 | ) |
|   | Other items – net                      |   |   | (0.7   | )       |   | (1.0   | )       |   | (2.1 | ) |
|   | Effective income tax rate                    |   |   | 33.4   |  % |   | 33.6   |  % |   | 31.3 |  % |

|   | (Thousands)                                                        |   | 2010   |    | 2009   |   |
|--------|--------------------------------------------------------------------|--------|--------|---------|--------|--------|
|   |                                                               |   |   |    |   |   |   |   |
|   | Deferred tax assets:                                               |   |   |    |   |   |   |   |
|   |   Reserves not currently deductible                      |   | $      | 18,808  |   | $      | 19,418 |   |
|   |   Pension and other postretirement benefits              |   |   | 78,790  |   |   | 80,508 |   |
|   |   Unamortized investment tax credits                     |   |   | 2,222   |   |   | 2,358 |   |
|   |   Other                                                  |   |   | 11,723  |   |   | 13,067 |   |
|   |       Total deferred tax assets      |   |   | 111,543 |   |   | 115,351 |   |
|   |                                                               |   |   |    |   |   |   |   |
|   | Deferred tax liabilities:                                          |   |   |    |   |   |   |   |
|   |   Relating to property                                   |   |   | 256,038 |   | $      | 221,532 |   |
|   |   Regulatory pension and other postretirement benefits   |   |   | 110,396 |   |   | 109,041 |   |
|   |   Deferred gas costs                                     |   |   | 22,126  |   |   | 16,609 |   |
|   |   Other                                                  |   |   | 15,529  |   |   | 22,658 |   |
|   |       Total deferred tax liabilities |   |   | 404,089 |   |   | 369,840 |   |
|   |                                                               |   |   |    |   |   |   |   |
|   | Net deferred tax liability                                         |   |   | 292,546 |   |   | 254,489 |   |
|   | Net deferred tax asset (liability) – current                 |   |   | (155    | )      |   | 1,707 |   |
|   | Net deferred tax liability – non-current                     |   | $      | 292,391 |   | $      | 256,196 |   |

Table of Contents 

|   | (Thousands)                                              |   | 2010   |   | 2009   |   |
|--------|----------------------------------------------------------|--------|--------|--------|--------|--------|
|   |                                                     |   |   |   |   |   |   |   |
|   | Unrecognized tax benefits, beginning of year             |   | $      | 1,366  |   | $      | 1,033 |   |
|   | Increases related to tax positions taken in current year |   |   | 5,017  |   |   | 333 |   |
|   | Unrecognized tax benefits, end of year                   |   | $      | 6,383  |   | $      | 1,366 |   |

| 14. | OTHER INCOME AND (INCOME DEDUCTIONS) – NET |
|-----|--------------------------------------------------|

|   | (Thousands)                                      |   | 2010   |   | 2009   |   | 2008   |   |
|--------|--------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|   |                                             |   |   |   |   |   |   |   |   |   |   |
|   | Interest income                                  |   | $      | 1,743  |   | $      | 2,972  |   | $ | 4,221 |   |
|   | Net investment gain (loss)                       |   |   | 1,077  |   |   | (1,019 | )      |   | (1,299 | ) |
|   | Other income                                     |   |   | 276    |   |   | 423    |   |   | 68 |   |
|   | Other income deductions                          |   |   | 24     |   |   | (923   | )      |   | (1,109 | ) |
|   | Other Income and (Income Deductions) – Net |   | $      | 3,120  |   | $      | 1,453  |   | $ | 1,881 |   |

Table of Contents 

| 15. | INFORMATION BY OPERATING SEGMENT |
|-----|----------------------------------|

Note 1

Table of Contents 

|   |                                    |   |         |      | Non-      |   |      |   |         |    |         |   |
|--------|-----------------------------------------|--------|--------------|-----------|-----------|--------|-----------|--------|--------------|---------|--------------|--------|
|   |                                    |   | Regulated    |      | Regulated |   |      |   | Unallocated  |    |         |   |
|   |                                    |   | Gas          |      | Gas       |   |      |   | and          |    |         |   |
|   | (Thousands)                             |   | Distribution |      | Marketing |   | Other     |   | Eliminations |    | Consolidated |   |
|   |                                    |   |         |      |      |   |      |   |         |    |         |   |   |   |   |   |   |
|   | FISCAL 2010                             |   |         |      |      |   |      |   |         |    |         |   |   |   |   |   |   |
|   |   Revenues from external customers |   | $            | 861,435   |      | $      | 835,089   |   | $            | 10,912  |         | $      | — |   | $ | 1,707,436 |   |
|   | Intersegment revenues                   |   |         | 2,862     |      |   | 23,693    |   |         | 1,038   |         |   | — |   |   | 27,593 |   |
|   | Total Operating Revenues                |   |         | 864,297   |      |   | 858,782   |   |         | 11,950  |         |   | — |   |   | 1,735,029 |   |
|   | Depreciation & amortization         |   |         | 37,572    |      |   | —   | *      |         | — | **           |   | — |   |   | 37,572 |   |
|   | Interest income                         |   |         | 1,493     |      |   | 189       |   |         | 216     |         |   | (155 | ) |   | 1,743 |   |
|   | Interest charges                        |   |         | 26,852    |      |   | —   |   |         | 155     |         |   | (155 | ) |   | 26,852 |   |
|   | Income tax expense                      |   |         | 15,842    |      |   | 8,609     |   |         | 2,643   |         |   | — |   |   | 27,094 |   |
|   | Net economic earnings                   |   |         | 36,141    |      |   | 15,709    |   |         | 4,315   |         |   | — |   |   | 56,165 |   |
|   | Total assets                            |   |         | 1,657,530 |      |   | 165,181   |   |         | 117,808 |         |   | (100,323 | ) |   | 1,840,196 |   |
|   | Capital expenditures                    |   |         | 56,234    |      |   | 733       |   |         | 92      |         |   | (62 | ) |   | 56,997 |   |
|   |                                    |   |         |      |      |   |      |   |         |    |         |   |   |   |   |   |   |
|   | FISCAL 2009                             |   |         |      |      |   |      |   |         |    |         |   |   |   |   |   |   |
|   |   Revenues from external customers |   | $            | 1,049,288 |      | $      | 804,499   |   | $            | 3,302   |         | $      | — |   | $ | 1,857,089 |   |
|   | Intersegment revenues                   |   |         | 4,705     |      |   | 32,366    |   |         | 1,038   |         |   | — |   |   | 38,109 |   |
|   | Total Operating Revenues                |   |         | 1,053,993 |      |   | 836,865   |   |         | 4,340   |         |   | — |   |   | 1,895,198 |   |
|   | Depreciation & amortization         |   |         | 36,751    |      |   | —   |   |         | — | **           |   | — |   |   | 36,751 |   |
|   | Interest income                         |   |         | 2,505     |      |   | 794       |   |         | 1,078   |         |   | (1,405 | ) |   | 2,972 |   |
|   | Interest charges                        |   |         | 30,353    |      |   | —   |   |         | 798     |         |   | (1,405 | ) |   | 29,746 |   |
|   | Income tax expense (benefit)            |   |         | 13,856    |      |   | 19,186    |   |         | (533    | )            |   | — |   |   | 32,509 |   |
|   | Net economic earnings (losses)          |   |         | 33,057    |      |   | 28,081    |   |         | (332    | )            |   | — |   |   | 60,806 |   |
|   | Total assets                            |   |         | 1,598,600 |      |   | 148,248   |   |         | 105,237 |         |   | (90,067 | ) |   | 1,762,018 |   |
|   | Capital expenditures                    |   |         | 51,384    |      |   | 820       |   |         | 180     |         |   | — |   |   | 52,384 |   |
|   |                                    |   |         |      |      |   |      |   |         |    |         |   |   |   |   |   |   |
|   | FISCAL 2008                             |   |         |      |      |   |      |   |         |    |         |   |   |   |   |   |   |
|   |   Revenues from external customers |   | $            | 1,126,826 |      | $      | 1,067,257 |   | $            | 3,803   |         | $      | — |   | $ | 2,197,886 |   |
|   | Intersegment revenues                   |   |         | 1,461     |      |   | 8,588     |   |         | 1,038   |         |   | — |   |   | 11,087 |   |
|   | Total Operating Revenues                |   |         | 1,128,287 |      |   | 1,075,845 |   |         | 4,841   |         |   | — |   |   | 2,208,973 |   |
|   | Depreciation & amortization         |   |         | 35,303    |      |   | —   |   |         | — | **           |   | — |   |   | 35,303 |   |
|   | Interest income                         |   |         | 2,133     |      |   | 1,531     |   |         | 2,762   |         |   | (2,205 | ) |   | 4,221 |   |
|   | Interest charges                        |   |         | 30,214    |      |   | (614      | )      |         | 2,222   |         |   | (2,345 | ) |   | 29,477 |   |
|   | Income tax expense (benefit)            |   |         | 15,244    |      |   | 11,404    |   |         | (291    | )            |   | (167 | ) |   | 26,190 |   |
|   | Net economic earnings (losses)          |   |         | 39,139    |      |   | 20,886    |   |         | (607    | )            |   | (264 | ) |   | 59,154 |   |
|   | Total assets of continuing operations   |   |         | 1,624,041 |      |   | 182,750   |   |         | 138,982 |         |   | (173,118 | ) |   | 1,772,655 |   |
|   | Capital expenditures                    |   |         | 55,304    |      |   | 41        |   |         | 25      |         |   | 1,251 |   |   | 56,621 |   |

|   | *  | Depreciation & amortization for Non-Regulated Gas Marketing is included in Non-Regulated Gas Marketing Expenses on the Statements of Consolidated Income ($0.1 million for fiscal year 2010).                            |   |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | ** | Depreciation & amortization for Other is included in the Other Operating Expenses on the Statements of Consolidated Income ($0.2 million for fiscal year 2010 and $0.3 million per year for fiscal years 2009 and 2008). |   |

|   | Reconciliation of Consolidated Net Economic Earnings to Consolidated Net Income                                   |   |
|--------|-------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                              |   |   |   |   |   |   |   |
|   | (Thousands)                                                                                                       |   | 2010 |   | 2009 |   | 2008 |   |
|   |                                                                                                              |   |   |   |   |   |   |   |   |   |   |
|   | Total Net Economic Earnings above                                                                                 |   | $ | 56,165 |   | $ | 60,806 |   | $ | 59,154 |   |
|   |   Add: Unrealized gain (loss) on energy-related    derivative contracts, net of tax |   |   | (2,125 | ) |   | 3,441 |   |   | (1,628 | ) |
|   | Income from Continuing Operations                                                                                 |   | $ | 54,040 |   | $ | 64,247 |   | $ | 57,526 |   |

Table of Contents 

| 16. | COMMITMENTS AND CONTINGENCIES |
|-----|-------------------------------|

Table of Contents 

Table of Contents 

Note 2

Table of Contents 

| 17. | INTERIM FINANCIAL INFORMATION (UNAUDITED) |
|-----|-------------------------------------------|

| (Thousands, Except Per Share Amounts)             |   |    |   |   |   |     |   |   |   |    |   |   |         |     |   |
|---------------------------------------------------|--------|---------|--------|--------|--------|----------|--------|--------|--------|---------|--------|--------|--------------|----------|--------|
| Three Months Ended                                |   | Dec. 31 |   |   |   | March 31 |   |   |   | June 30 |   |   |         | Sept. 30 |   |
|                                              |   |    |   |   |   |     |   |   |   |    |   |   |         |     |   |
| Fiscal Year 2010                                  |   |    |   |   |   |     |   |   |   |    |   |   |         |     |   |
| Total Operating Revenues                          | $      | 491,166 |   |   | $      | 635,325  |   |   | $      | 324,507 |   |   | $            | 284,031  |   |
| Operating Income                                  |   | 40,664  |   |   |   | 50,270   |   |   |   | 12,867  |   |   |         | 1,065    |   |
| Net Income (Loss)                                 |   | 22,886  |   |   |   | 28,020   |   |   |   | 4,731   |   |   |         | (1,597   | )      |
| Basic Earnings (Loss) Per Share of Common Stock   |   | 1.03    |   |   |   | 1.26     |   |   |   | 0.21    |   |   |         | (0.07    | )      |
| Diluted Earnings (Loss) Per Share of Common Stock |   | 1.03    |   |   |   | 1.26     |   |   |   | 0.21    |   |   |         | (0.07    | )      |
|                                              |   |    |   |   |   |     |   |   |   |    |   |   |         |     |   |
| Three Months Ended                                |   | Dec. 31 |   |   |   | March 31 |   |   |   | June 30 |   |   |    | Sept. 30 |   |
|                                              |   |    |   |   |   |     |   |   |   |    |   |   |         |     |   |
| Fiscal Year 2009                                  |   |    |   |   |   |     |   |   |   |    |   |   |         |     |   |
| Total Operating Revenues                          | $      | 674,256 |   |   | $      | 659,068  |   |   | $      | 309,944 |   |   | $            | 251,930  |   |
| Operating Income (Loss)                           |   | 56,688  |   |   |   | 55,240   |   |   |   | 16,203  |   |   |         | (3,067   | )      |
| Net Income (Loss)                                 |   | 31,306  |   |   |   | 30,811   |   |   |   | 6,877   |   |   |         | (4,747   | )      |
| Basic Earnings (Loss) Per Share of Common Stock   |   | 1.42    |   |   |   | 1.39     |   |   |   | 0.31    |   |   |         | (0.22    | )      |
| Diluted Earnings (Loss) Per Share of Common Stock |   | 1.41    |   |   |   | 1.39     |   |   |   | 0.31    |   |   |         | (0.22    | )      |

Exhibit 99.1

Table of Contents 

Item 9.

Item 9A

Item 8

Item 9B

Table of Contents 

Item 10

|   |   | • | our directors is incorporated by reference from the discussion under Proposal 1 of our proxy statement dated December 17, 2010 (2010 proxy statement);                                                                                                |
|--------|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   | • | our executive officers is reported in Part I of this Form 10-K;                                                                                                                                                                                                 |
|   |   | • | compliance with Section 16(a) of the Exchange Act is incorporated by reference from the discussion in our 2010 proxy statement under the heading “Section 16(a) Beneficial Ownership Reporting Compliance”;                                         |
|   |   | • | Financial Code of Ethics is posted on our website, www.thelacledegroup.com, in the Investor Services section under Governance Documents; and,                                                                                                                   |
|   |   | • | our audit committee, our audit committee financial experts, and submitting nominations to the Corporate Governance Committee is incorporated by reference from the discussion in our 2010 proxy statement under the heading “Corporate Governance.” |

Item 11

Item 12

Table of Contents 

Item 13

|   |   | • | our policy and procedures for related party transactions and |
|--------|--------|---------|--------------------------------------------------------------|
|   |   | • | the independence of our directors                            |

Item 14

Table of Contents 

| Item 15. Exhibits, Financial Statement Schedules                          |                                                             |
|---------------------------------------------------------------------------|------------------------------------------------------------------|
|                                                                      |                                                             |   | 2010 10-K Page |
| (a)                                                                       | 1.                                                               | Financial Statements: |   |
|                                                                      |                                                             |   |   |
|                                                                      |                                                             | The Laclede Group, Inc.: |
|                                                                      |                                                             |     See Item 8. Financial Statements and Supplementary Data, filed herewith, for a list of financial statements. |
|                                                                      |                                                             |   |   |
|                                                                      |                                                             | Laclede Gas Company: |   |
|                                                                      |                                                             | For Years Ended September 30, 2010, 2009, and 2008: |   |
|                                                                      |                                                             |     Statements of Income | Ex. 99.1, p. 21 |
|                                                                      |                                                             |     Statements of Comprehensive Income | Ex. 99.1, p. 22 |
|                                                                      |                                                             |     Statements of Common Shareholder’s Equity | Ex. 99.1, p. 26 |
|                                                                      |                                                             |     Statements of Cash Flows | Ex. 99.1, p. 27 |
|                                                                      |                                                             | As of September 30, 2010 and 2009: |   |
|                                                                      |                                                             |     Balance Sheets | Ex. 99.1, pp. 23-24 |
|                                                                      |                                                             |     Statements of Capitalization | Ex. 99.1, p. 25 |
|                                                                      |                                                             | Notes to Financial Statements | Ex. 99.1, pp. 28-54 |
|                                                                      |                                                             | Management Report on Internal Control Over Financial Reporting | Ex. 99.1, p. 18 |
|                                                                      |                                                             | Reports of Independent Registered Public Accounting Firm | Ex. 99.1, p. 19-20 |
|                                                                      |                                                             |   |   |
|                                                                      | 2.                                                               | Supplemental Schedules |   |
|                                                                      |                                                             |   |   |
|                                                                      |                                                             | II – Reserves – The Laclede Group, Inc. | 98 |
|                                                                      |                                                             | II – Reserves – Laclede Gas Company | 99 |
|                                                                      |                                                             |   |   |
|                                                                      |                                                             | Schedules not included have been omitted because they are not applicable or the |   |
|                                                                      |                                                             | required data has been included in the financial statements or notes to financial |   |
|                                                                      |                                                             | statements. |   |
|                                                                      |                                                             |   |   |
|                                                                      | 3.                                                               | Exhibits |   |
|                                                                      |                                                             |   |   |
|                                                                      |                                                             | Incorporated herein by reference to Index to Exhibits, page 100. |   |
|                                                                      |                                                             |   |   |
| Item 15(a)(3) See the marked exhibits in the Index to Exhibits, page 100. |                                                             |
|                                                                      |                                                             |
| (b)                                                                       | Incorporated herein by reference to Index to Exhibits, page 100. |   |

Table of Contents 

SIGNATURES

|                        |   |   | THE LACLEDE GROUP, INC. |
|-----------------------------|--------|--------|-------------------------|
|                        |   |   |                    |
|                        |   |   |                    |
| November 19, 2010 |   | By /s/ | Mark D. Waltermire      |
|                        |   |   | Mark D. Waltermire      |
|                        |   |   | Chief Financial Officer |

| Date     | Signature | Title               |
|----------|-----------|---------------------|
|     |      |                |   |
| 11/19/10 | /s/       | Douglas H. Yaeger   | Chairman of the Board, |
|     |      | Douglas H. Yaeger   | President and Chief Executive Officer |
|     |      |                | (Principal Executive Officer) |
|     |      |                |   |
| 11/19/10 | /s/       | Mark D. Waltermire  | Chief Financial Officer |
|     |      | Mark D. Waltermire  | (Principal Financial and |
|     |      |                | Accounting Officer) |
|     |      |                |   |
| 11/19/10 | /s/       | Arnold W. Donald    | Director |
|     |      | Arnold W. Donald    |   |
|     |      |                |   |
| 11/19/10 | /s/       | Edward L. Glotzbach | Director |
|     |      | Edward L. Glotzbach |   |
|     |      |                |   |
| 11/19/10 | /s/       | Anthony V. Leness   | Director |
|     |      | Anthony V. Leness   |   |
|     |      |                |   |
| 11/19/10 | /s/       | W. Stephen Maritz   | Director |
|     |      | W. Stephen Maritz   |   |
|     |      |                |   |
| 11/19/10 | /s/       | William E. Nasser   | Director |
|     |      | William E. Nasser   |   |
|     |      |                |   |
| 11/19/10 | /s/       | Brenda D. Newberry  | Director |
|     |      | Brenda D. Newberry  |   |
|     |      |                |   |
| 11/19/10 | /s/       | John P. Stupp, Jr.  | Director |
|     |      | John P. Stupp, Jr.  |   |
|     |      |                |   |
| 11/19/10 | /s/       | MaryAnn Van Lokeren | Director |
|     |      | MaryAnn Van Lokeren |   |

Table of Contents 

|                        |   |   | LACLEDE GAS COMPANY       |
|-----------------------------|--------|--------|---------------------------|
|                        |   |   |                      |
|                        |   |   |                      |
| November 19, 2010 |   | By /s/ | Mark D. Waltermire        |
|                        |   |   | Mark D. Waltermire        |
|                        |   |   | Senior Vice President and |
|                        |   |   | Chief Financial Officer   |

| Date     | Signature | Title                |
|----------|-----------|----------------------|
|     |      |                 |   |
| 11/19/10 | /s/       | Douglas H. Yaeger    | Chairman of the Board, |
|     |      | Douglas H. Yaeger    | President and Chief Executive Officer |
|     |      |                 | (Principal Executive Officer) |
|     |      |                 |   |
| 11/19/10 | /s/       | Mark D. Waltermire   | Director, Senior Vice President |
|     |      | Mark D. Waltermire   | and Chief Financial Officer |
|     |      |                 | (Principal Financial and |
|     |      |                 | Accounting Officer) |
|     |      |                 |   |
| 11/19/10 | /s/       | Michael R. Spotanski | Director, Senior Vice President |
|     |      | Michael R. Spotanski | Operations and Marketing |
|     |      |                 |   |
| 11/19/10 | /s/       | Richard A. Skau      | Director, Senior Vice President |
|     |      | Richard A. Skau      | Human Resources |
|     |      |                 |   |

Table of Contents 

SCHEDULE II

| COLUMN A                              |   |   | COLUMN B   |      | COLUMN C |   |     |       | COLUMN D |   |     |   | COLUMN E |      |
|---------------------------------------|--------|--------|------------|-----------|----------|--------|----------|------------|----------|--------|----------|--------|----------|-----------|
|                                  |   |   | BALANCE AT | ADDITIONS | CHARGED  |   |     | DEDUCTIONS |     |   | BALANCE  |   |
|                                  |   |   | BEGINNING  |      | TO       |   | TO OTHER |       |     |   | FROM     |   |     |      | AT CLOSE |   |
| DESCRIPTION                           |   |   | OF PERIOD  |      | INCOME   |   | ACCOUNTS |       |     |   | RESERVES |   |     | OF PERIOD |
| (Thousands of Dollars)                |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| YEAR ENDED                            |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| SEPTEMBER 30, 2010:         |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| DOUBTFUL ACCOUNTS                     |   | $      | 11,160     | $         | 8,609    | $      | 12,018   |       | (a)      | $      | 21,492   |   | (b)      | $         | 10,295 |   |
| MISCELLANEOUS:                        |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| Injuries and                          |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| property damage                       |   | $      | 3,653      | $         | 2,313    | $      | —  |       |     | $      | 2,738    |   | (c)      | $         | 3,228 |   |
| Deferred compensation                 |   |   | 11,905     |      | 1,702    |   | —  |       |     |   | 1,036    |   |     |      | 12,571 |   |
| Group medical claims                  |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
|   incurred but not reported |   |   | 1,450      |      | 12,833   |   | —  |       |     |   | 12,833   |   | (c)      |      | 1,450 |   |
| TOTAL                                 |   | $      | 17,008     | $         | 16,848   | $      | —  |       |     | $      | 16,607   |   |     | $         | 17,249 |   |
|                                  |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
|                                  |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| YEAR ENDED                            |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| SEPTEMBER 30, 2009:              |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| DOUBTFUL ACCOUNTS                     |   | $      | 12,624     | $         | 12,408   | $      | 11,138   |       | (a)      | $      | 25,010   |   | (b)      | $         | 11,160 |   |
| MISCELLANEOUS:                        |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| Injuries and                          |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| property damage                       |   | $      | 2,812      | $         | 2,949    | $      | —  |       |     | $      | 2,108    |   | (c)      | $         | 3,653 |   |
| Deferred compensation                 |   |   | 11,164     |      | 1,649    |   | —  |       |     |   | 908      |   |     |      | 11,905 |   |
| Group medical claims                  |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
|   incurred but not reported |   |   | 1,500      |      | 12,305   |   | —  |       |     |   | 12,355   |   | (c)      |      | 1,450 |   |
| TOTAL                                 |   | $      | 15,476     | $         | 16,903   | $      | —  |       |     | $      | 15,371   |   |     | $         | 17,008 |   |
|                                  |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
|                                  |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| YEAR ENDED                            |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| SEPTEMBER 30, 2008:              |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| DOUBTFUL ACCOUNTS                     |   | $      | 11,268     | $         | 13,100   | $      | 9,850    |       | (a)      | $      | 21,594   |   | (b)(d)   | $         | 12,624 |   |
| MISCELLANEOUS:                        |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| Injuries and                          |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
| property damage                       |   | $      | 10,765     | $         | 7,263    | $      | —  |       |     | $      | 15,216   |   | (c)(d)   | $         | 2,812 |   |
| Deferred compensation                 |   |   | 10,949     |      | 1,446    |   | —  |       |     |   | 1,231    |   |     |      | 11,164 |   |
| Group medical claims                  |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
|   incurred but not reported |   |   | 2,571      |      | 15,777   |   | —  |       |     |   | 16,848   |   | (c)(d)   |      | 1,500 |   |
| TOTAL                                 |   | $      | 24,285     | $         | 24,486   | $      | —  |       |     | $      | 33,295   |   |     | $         | 15,476 |   |
|                                  |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |
|                                  |   |   |       |      |     |   |     |       |     |   |     |   |     |      |   |   |

| (a) | Accounts reinstated, cash recoveries, etc.                                                                               |
|-----|--------------------------------------------------------------------------------------------------------------------------|
| (b) | Accounts written off.                                                                                                    |
| (c) | Claims settled, less reimbursements from insurance companies.                                                            |
| (d) | Deductions include write-off of SM&P reserve balances at March 31, 2008 due to the sale of the subsidiary. |

Table of Contents 

SCHEDULE II

| COLUMN A                              |   |   | COLUMN B   |   | COLUMN C  |   |     |   | COLUMN D |   |       |   | COLUMN E |   |
|---------------------------------------|--------|--------|------------|--------|-----------|--------|----------|--------|----------|--------|------------|--------|----------|--------|
|                                  |   |   | BALANCE AT |   | ADDITIONS |   | CHARGED  |   |     |   | DEDUCTIONS |   |     |   | BALANCE |   |
|                                  |   |   | BEGINNING  |   | TO        |   | TO OTHER |   |     |   | FROM       |   |     |   | AT CLOSE |   |
| DESCRIPTION                           |   |   | OF PERIOD  |   | INCOME    |   | ACCOUNTS |   |     |   | RESERVES   |   |     |   | OF PERIOD |   |
| (Thousands of Dollars)                |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| YEAR ENDED                            |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| SEPTEMBER 30, 2010:         |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| DOUBTFUL ACCOUNTS                     |   | $      | 10,791     | $      | 8,609     | $      | 12,018   |   | (a)      | $      | 21,242     |   | (b)      | $      | 10,176 |   |
| MISCELLANEOUS:                        |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| Injuries and                          |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| property damage                       |   | $      | 3,653      | $      | 2,313     | $      | —  |   |     | $      | 2,738      |   | (c)      | $      | 3,228 |   |
| Deferred compensation                 |   |   | 11,905     |   | 1,702     |   | —  |   |     |   | 1,036      |   |     |   | 12,571 |   |
| Group medical claims                  |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
|   incurred but not reported |   |   | 1,450      |   | 12,833    |   | —  |   |     |   | 12,833     |   | (c)      |   | 1,450 |   |
| TOTAL                                 |   | $      | 17,008     | $      | 16,848    | $      | —  |   |     | $      | 16,607     |   |     | $      | 17,249 |   |
|                                  |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
|                                  |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| YEAR ENDED                            |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| SEPTEMBER 30, 2009:         |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| DOUBTFUL ACCOUNTS                     |   | $      | 12,476     | $      | 12,155    | $      | 11,138   |   | (a)      | $      | 24,978     |   | (b)      | $      | 10,791 |   |
| MISCELLANEOUS:                        |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| Injuries and                          |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| property damage                       |   | $      | 2,812      | $      | 2,949     | $      | —  |   |     | $      | 2,108      |   | (c)      | $      | 3,653 |   |
| Deferred compensation                 |   |   | 11,164     |   | 1,649     |   | —  |   |     |   | 908        |   |     |   | 11,905 |   |
| Group medical claims                  |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
|   incurred but not reported |   |   | 1,500      |   | 12,305    |   | —  |   |     |   | 12,355     |   | (c)      |   | 1,450 |   |
| TOTAL                                 |   | $      | 15,476     | $      | 16,903    | $      | —  |   |     | $      | 15,371     |   |     | $      | 17,008 |   |
|                                  |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
|                                  |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| YEAR ENDED                            |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| SEPTEMBER 30, 2008:              |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| DOUBTFUL ACCOUNTS                     |   | $      | 10,961     | $      | 13,034    | $      | 9,850    |   | (a)      | $      | 21,369     |   | (b)      | $      | 12,476 |   |
| MISCELLANEOUS:                        |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| Injuries and                          |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
| property damage                       |   | $      | 3,128      | $      | 1,715     | $      | —  |   |     | $      | 2,031      |   | (c)      | $      | 2,812 |   |
| Deferred compensation                 |   |   | 10,949     |   | 1,446     |   | —  |   |     |   | 1,231      |   |     |   | 11,164 |   |
| Group medical claims                  |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
|   incurred but not reported |   |   | 1,150      |   | 12,192    |   | —  |   |     |   | 11,842     |   | (c)      |   | 1,500 |   |
| TOTAL                                 |   | $      | 15,227     | $      | 15,353    | $      | —  |   |     | $      | 15,104     |   |     | $      | 15,476 |   |
|                                  |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |
|                                  |   |   |       |   |      |   |     |   |     |   |       |   |     |   |   |   |

| (a) | Accounts reinstated, cash recoveries, etc.                    |
|-----|---------------------------------------------------------------|
| (b) | Accounts written off.                                         |
| (c) | Claims settled, less reimbursements from insurance companies. |

Table of Contents 

| INDEX TO EXHIBITS |
|-------------------|
|              |   |   |
| Exhibit           |   |   |
| No.               |   |   |
|              |   |   |
| 2.01*             | - | Agreement and Plan of Merger and Reorganization; filed as Appendix A to proxy statement/prospectus contained in the Company’s registration statement on Form S-4, No. 333-48794. |
| 3.01(i)*          | - | Laclede’s Restated Articles of Incorporation effective March 18, 2002; filed as Exhibit 3.3 to Form 8-K filed May 29, 2002. |
| 3.01(ii)*         | - | Bylaws of Laclede effective January 18, 2002; filed as Exhibit 3.4 to Laclede’s Form 8-K filed May 29, 2002. |
| 3.02(i)*          | - | The Company’s Articles of Incorporation, as amended; filed as Exhibit 3.1 to the Company’s Form 8-K filed January 26, 2006. |
| 3.02(ii)*         | - | The Company’s Bylaws, as amended; filed as Exhibit 3.2 to the Company’s Form 8-K filed January 26, 2006. |
| 4.01*             | - | Mortgage and Deed of Trust, dated as of February 1, 1945; filed as Exhibit 7-A to registration statement No. 2-5586. |
| 4.02*             | - | Fourteenth Supplemental Indenture, dated as of October 26, 1976; filed on June 26, 1979 as Exhibit b-4 to registration statement No. 2-64857. |
| 4.03*             | - | Twenty-Second Supplemental Indenture dated as of November 15, 1995; filed on December 8, 1995 as Exhibit 4.01 to Laclede’s Form 8-K. |
| 4.04*             | - | Twenty-Third Supplemental Indenture dated as of October 15, 1997; filed on November 6, 1997 as Exhibit 4.01 to Laclede’s Form 8-K. |
| 4.05*             | - | Twenty-Fourth Supplemental Indenture dated as of June 1, 1999; filed on June 4, 1999 as Exhibit 4.01 to Laclede’s Form 8-K. |
| 4.06*             | - | Twenty-Fifth Supplemental Indenture dated as of September 15, 2000; filed on September 27, 2000 as Exhibit 4.01 to Laclede’s Form 8-K. |
| 4.07*             | - | Twenty-Seventh Supplemental Indenture dated as of April 15, 2004; filed on April 28, 2004 as Exhibit 4.01 to Laclede’s Form 8-K. |
| 4.08*             | - | Twenty-Eighth Supplemental Indenture dated as of April 15, 2004; filed on April 28, 2004 as Exhibit 4.02 to Laclede’s Form 8-K. |
| 4.09*             | - | Twenty-Ninth Supplemental Indenture dated as of June 1, 2006; filed on June 9, 2006, as Exhibit 4.1 to Laclede’s Form 8-K |
| 4.10*             | - | Thirtieth Supplemental Indenture dated as of September 15, 2008; filed on September 23, 2008 as Exhibit 4.1 to Laclede’s Form 8-K. |
| 4.11*             | - | Laclede Gas Company Board of Directors’ Resolution dated August 28, 1986 which generally provides that the Board may delegate its authority in the adoption of certain employee benefit plan amendments to certain designated Executive Officers; filed as Exhibit 4.12 to the Company’s 1991 10-K. |
| 4.11a*            | - | Company Board of Directors’ Resolutions dated March 27, 2003, updating authority delegated pursuant to August 28, 1986 Laclede Gas Company resolutions; filed as Exhibit 4.19(a) to the Company’s Form 10-K for the year ended September 30, 2003. |
| 4.12*             | - | Rights Agreement dated as of October 1, 2001; filed as Exhibit 4 to the Company’s Form 8-A on September 6, 2001. |

Table of Contents 

| INDEX TO EXHIBITS |
|-------------------|
|              |   |   |
| Exhibit           |   |   |
| No.               |   |   |
|              |   |   |
| 10.01*            | - | Laclede Incentive Compensation Plan, amended and restated effective as of January 1, 2005; filed as Exhibit 10.3 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008. |
| 10.02*            | - | Laclede Incentive Compensation Plan II, effective as of January 1, 2005; filed as Exhibit 10.4 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008. |
| 10.03*            | - | Senior Officers’ Life Insurance Program of Laclede, as amended; filed as Exhibit 10.03 to the Company’s 1990 10-K. |
| 10.03a*           | - | Certified copy of resolutions of Laclede’s Board of Directors adopted on June 27, 1991 amending the Senior Officers’ Life Insurance Program; filed as Exhibit 10.01 to the Company’s 10-Q for the fiscal quarter ended June 30, 1991. |
| 10.03b*           | - | Certified copy of resolutions of Laclede’s Board of Directors adopted on January 28, 1993 amending the Senior Officers’ Life Insurance Program; filed as Exhibit 10.03 to the Company’s 10-Q for the fiscal quarter ended March 31, 1993. |
| 10.04*            | - | Restated Laclede Gas Company Supplemental Retirement Benefit Plan, as amended and restated effective as of November 1, 2005; filed as Exhibit 10.06 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008. |
| 10.05*            | - | Amended and Restated Storage Service Agreement For Rate Schedule FSS, Contract #3147 between Centerpoint Energy-Mississippi River Transmission Corporation (MRT) and Laclede dated March 18, 2008; filed as Exhibit 10.5 to the Company’s 10-Q for the fiscal quarter ended March 31, 2008. |
| 10.05a*           | - | Amended and Restated Transportation Service Agreement for Rate Schedule FTS, Contract #3310 between Laclede and MRT dated March 18, 2008; filed as Exhibit 10.6 to the Company’s 10-Q for the fiscal quarter ended March 31, 2008. |
| 10.05b*           | - | Amended and Restated Transportation Service Agreement for Rate Schedule FTS, Contract #3311, between Laclede and MRT dated March 18, 2008; filed as Exhibit 10.7 to the Company’s 10-Q for the fiscal quarter ended March 31, 2008. |
| 10.06*            | - | Laclede Supplemental Retirement Benefit Plan II, effective as of January 1, 2005; filed as Exhibit 10.7 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008. |
| 10.07*            | - | Amendment and Restatement of Retirement Plan for Non-Employee Directors as of November 1, 2002; filed as Exhibit 10.08c to the Company’s 10-K for the fiscal year ended September 30, 2002. |
| 10.07a*           | - | Amendment to Terms of Retirement Plan for Non-Employee Directors as of October 1, 2004; filed as Exhibit 10.w to the Company’s Form 10-Q for the fiscal quarter ended June 30, 2004. |
| 10.08*            | - | Salient Features of the Laclede Gas Company Deferred Income Plan for Directors and Selected Executives, including amendments adopted by the Board of Directors on July 26, 1990; filed as Exhibit 10.12 to the Company’s 1991 10-K. |

Table of Contents 

| INDEX TO EXHIBITS |
|-------------------|
|              |   |   |
| Exhibit           |   |   |
| No.               |   |   |
|              |   |   |
| 10.08a*           | - | Amendment to Laclede’s Deferred Income Plan for Directors and Selected Executives, adopted by the Board of Directors on August 27, 1992; filed as Exhibit 10.12a to the Company’s 1992 10-K. |
| 10.09*            | - | Form of Indemnification Agreement between Laclede and its Directors and Officers; filed as Exhibit 10.13 to the Company’s 1990 10-K. |
| 10.10*            | - | The Laclede Group Management Continuity Protection Plan, effective as of January 1, 2005; filed as Exhibit 10.5 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008. |
| 10.10a*           | - | Form of Management Continuity Protection Agreement; Filed as Exhibit 10.05a to the Company’s 10-Q for the fiscal quarter ended December 31, 2008. |
| 10.11*            | - | Restricted Stock Plan for Non-Employee Directors as amended and effective January 29, 2009; filed as Exhibit 10.1 to the Company’s Form 10-Q for the fiscal quarter ended March 31, 2009. |
| 10.12*            | - | Salient Features of the Laclede Gas Company Deferred Income Plan II for Directors and Selected Executives (as amended and restated effective as of January 1, 2005); filed as Exhibit 10.1 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008. |
| 10.13*            | - | Salient Features of the Company’s Deferred Income Plan for Directors and Selected Executives (effective as of January 1, 2005); filed as Exhibit 10.2 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008. |
| 10.14*            | - | Amended and Restated Loan Agreement dated September 10, 2004 for Laclede with U.S. Bank National Association as administrative agent and lead arranger, Bank Hapoalim B.M., as syndication agent, and Southwest Bank of St. Louis as documentation agent; filed as Exhibit 10.1 on Form 8-K filed on September 13, 2004. |
| 10.14a*           | - | Amendment to loan agreement in Exhibit 10.12, dated December 23, 2005; filed as Exhibit 10.1 to Laclede’s Form 8-K filed December 23, 2005. |
| 10.14b*           | - | Second amendment dated February 8, 2008 to syndicated loan agreement of Laclede Gas Company dated September 10, 2004 and first amended December 23, 2005; filed as Exhibit 10.1 to Laclede’s Form 10-Q for the fiscal quarter ended March 31, 2008. |
| 10.15*            | - | The Laclede Group, Inc. 2002 Equity Incentive Plan; filed as Exhibit 10.22 to the Company’s Form 10-K for the year ended September 30, 2002. |
| 10.15a*           | - | Form of Non-Qualified Stock Option Award Agreement with Mandatory Retirement Provisions; filed as Exhibit 10.1 to the Company’s Form 8-K filed November 5, 2004. |

Table of Contents 

| INDEX TO EXHIBITS |
|-------------------|
|              |   |   |
| Exhibit           |   |   |
| No.               |   |   |
|              |   |   |
| 10.15b*           | - | Form of Non-Qualified Stock Option Award Agreement without Mandatory Retirement Provisions; filed as Exhibit 10.2 to the Company’s Form 8-K filed November 5, 2004. |
| 10.15c*           | - | Form of Restricted Stock Award Agreement; filed as Exhibit 10.17 to the Company’s 10-Q for the fiscal quarter ended March 31, 2004. |
| 10.15d*           | - | Form of Performance – Contingent Restricted Stock Award Agreement; filed as Exhibit 10.2 to the Company’s Form 8-K filedNovember 2, 2006. |
| 10.16*            | - | Lease between Laclede Gas Company, as Lessee and First National Bank in St. Louis, Trustee, as Lessor; filed as Exhibit 10.23 to the Company’s Form 10-K for the fiscal year ended September 30, 2002. |
| 10.17*            | - | Automated Meter Reading Services Agreement executed March 11, 2005; filed as Exhibit 10.1 to the Company’s Form 10-Q for the fiscal quarter ended March 31, 2005. Confidential portions of this exhibit have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. |
| 10.18*            | - | Stock Ownership Guidelines and Holding Requirements; filed as Exhibit 10.1 to the Company’s Form 8-K filed November 1, 2005. |
| 10.19*            | - | The Laclede Group, Inc. Annual Incentive Plan; filed as Appendix 4 to the Company’s proxy statement filed December 19, 2005. |
| 10.20*            | - | The Laclede Group, Inc. 2006 Equity Incentive Plan; filed as Appendix 5 to the Company’s proxy statement, filed December 19, 2005. |
| 10.20a*           | - | Form of Restricted Stock Award Agreement; filed as Exhibit 10.1 to the Company’s Form 10-Q for the fiscal quarter ended December 31, 2007. |
| 10.20b*           | - | Form of Performance Contingent Restricted Stock Award Agreement for all participants except the Chief Executive Officer and the Executive Vice President-Energy and Administrative Services; filed as Exhibit 10.2 to the Company’s Form 10-Q for the fiscal quarter ended December 31, 2007. |
| 10.20c*           | - | Forms of Performance Contingent Restricted Stock Award Agreements for Chief Executive Officer; filed as Exhibit 10.3 to the Company’s Form 10-Q for the fiscal quarter ended December 31, 2007. |
| 10.20d*           | - | Form of Performance Contingent Restricted Stock Award Agreement for Executive Vice President-Energy and Administrative Services; filed as Exhibit 10.4 to the Company’s Form 10-Q for the fiscal quarter ended December 31, 2007. |
| 10.20e*           | - | Restricted Stock Unit Award Agreement with Douglas H. Yaeger dated February 14, 2008; filed as Exhibit 10.2 to the Company’s Form 10-Q for the fiscal quarter ended March 31, 2008. |

Table of Contents 

| INDEX TO EXHIBITS |
|-------------------|
|              |   |   |
| Exhibit           |   |   |
| No.               |   |   |
|              |   |   |
| 10.20f*           | - | Form of Restricted Stock Award Agreement filed as Exhibit 10.8 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008. |
| 10.20g*           | - | Form of Performance Contingent Restricted Stock Award Agreement; filed as Exhibit 10.8 to the Company’s 10-Q for the fiscal quarter ended December 31, 2008. |
| 10.20h*           | - | Form of Performance Contingent Restricted Stock Award Agreement; filed as Exhibit 10.2 to the Company’s 10-Q for the fiscal quarter ended December 31, 2009. |
| 10.21*            | - | Supplemental Pension Agreement between Laclede Gas Company and Kenneth J. Neises dated March 7, 2008; filed as Exhibit 10.4 to the Company’s Form 10-Q for the fiscal quarter ended March 31, 2008. |
| 10.21a*           | - | Amendment dated January 7, 2010 to Supplemental Pension Agreement between Laclede Gas Company and Kenneth J. Neises; filed as Exhibit 10.1 to the Company’s 10-Q for the fiscal quarter ended December 31, 2009. |
| 10.22*            | - | Amended and Restated Firm (Rate Schedule FT) Transportation Service Agreement between Laclede Energy Resources, Inc. and Centerpoint Energy Gas Transmission Company TSA #1006667; filed as Exhibit 10.2 to the Company’s 10-Q for the fiscal quarter ended March 31, 2009. |
| 10.23             | - | Credit Agreement between the Company and U. S. Bank National Association, dated October 1, 2010. |
| 10.24             | - | Credit Agreement between the Company and PNC Bank, National Association, dated October 1, 2010. |
| 10.25             | - | The Laclede Group 2011 Management Continuity Protection Plan |
| 10.25a            | - | Form of Agreement Under The Laclede Group 2011 Management Continuity Protection Plan |
| 12                | - | Ratio of Earnings to Fixed Charges. |
| 21                | - | Subsidiaries of the Registrant. |
| 23                | - | Consents of Independent Registered Public Accounting Firm. |
| 31                | - | Certificates under Rule 13a-14(a) of the CEO and CFO of The Laclede Group, Inc. and Laclede Gas Company. |
| 32                | - | Section 1350 Certifications under Rule 13a-14(b) of the CEO and CFO of The Laclede Group, Inc. and Laclede Gas Company. |
| 99.1              | - | Laclede Gas Company – Selected Financial Data, Management’s Discussion and Analysis of Financial Condition and Results of Operations, Notes to Financial Statements, Management Report on Internal Control Over Financial Reporting, and Reports of Independent Registered Public Accounting Firm. |

Table of Contents