|CORNING NATURAL GAS CORPORATION AND SUBSIDIARY               |          
|------------------------------------------------------------ | ---------
|Consolidated Statements of Income                            |          
|For theYears Ended September 30, 2000 and 1999               |          
|                                                             |          
|                                                             |          
|Utility Operations                                           |          
|                                                             |          
|Operating revenue:                                           |          
|Residential, commercial and industrial                       |          
|Transportation                                               |          
|Capacity assignment                                          |          
|                                                             |          
|Total operating revenue                                      |          
|                                                             |          
|Operating expenses and taxes:                                |          
|Natural gas purchased                                        |          
|Operating and maintenance                                    |          
|Taxes other than federal income taxes                        |          
|Depreciation                                                 |          
|Federal income taxes                                         |          
|                                                             |          
|Total operating expenses and taxes                           |          
|                                                             |          
|Operating income from utility operations                     | 1,097,343
|                                                             |          
|                                                             |          
|Unregulated Operations                                       |          
|                                                             |          
|Unregulated revenue                                          |          
|Unregulated expenses(includes interest expense of            | 7,428,065
|$177,360 for 2000 and $156,382 for 1999)                     |          
|Operating income from unregulated operations                 | 378,988  
|                                                             |          
|Other income (including net realized gains on                |          
|marketable securities of $30,500 and $25,375                 | 76,483   
|in 2000 and 1999)                                            |          
|                                                             |          
|Income before interest expense                               |          
|                                                             |          
|Interest expense - regulated                                 |          
|                                                             |          
|Net income                                                   |          
|                                                             |          
|                                                             |          
|Weighted average number of shares outstanding-               |          
|basic and diluted                                            |          
|Basic and diluted earnings per common share                  | $1.02    
|                                                             |          
|                                                             |          
|See accompanying notes to consolidated financial
statements. |          
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