|CORNING NATURAL GAS CORPORATION AND SUBSIDIARY               |           
|------------------------------------------------------------ | ----------
|Consolidated Balance Sheets                                  |           
|September 30, 2000 and 1999                                  |           
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|Capitalization and liabilities:                              |           
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|Common stockholders' equity:                                 |           
|Common stock (common stock $5.00 par                         | $2,300,000
|value per share. Authorized 1,000,000                        |           
|shares; issued and outstanding 460,000 shares)               |           
|Other paid-in capital                                        |           
|Retained earnings                                            |           
|Accumulated other comprehensive income-                      |           
|net unrealized gain on securities available                  |           
|for sale (net of income taxes of $67,376                     |           
|in 2000 and $33,424 in 1999)                                 |           
|Total common stockholders' equity                            |           
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|Long-term debt, less current installments                    | 11,429,421
|                                                             |           
|Current liabilities:                                         |           
|Current portion of long term debt                            |           
|Borrowings under lines-of-credit                             |           
|Accounts payable                                             |           
|Accrued expenses                                             |           
|Customer deposits and accrued interest                       | 674,458   
|Deferred income taxes                                        |           
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|Accrued general taxes                                        |           
|Supplier refunds                                             |           
|Dividends payable                                            |           
|Total current liabilities                                    |           
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|Deferred credits and other liabilities:                      |           
|Deferred income taxes                                        |           
|Deferred compensation and post-retirement                    |           
|benefits                                                     |           
|Other                                                        |           
|Total deferred credits and other liabilities                 | 4,630,955 
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|Concentrations and commitments (notes 3 and 10)              |           
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|Total capitalization and liabilities                         |           
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|See accompanying notes to consolidated financial statements. |           
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