|CORNING NATURAL GAS CORPORATION AND SUBSIDIARY               |  |           |            
|------------------------------------------------------------ |  | --------- | -----------
|Consolidated Balance Sheets                                  |  |           |            
|September 30, 2000 and 1999                                  |  |           |            
|                                                             |  |           |            
|                                                             |  |           |            
|Assets                                                       |  |           |            
|                                                             |  |           |            
|Utility plant:                                               |  |           |            
|Utility property, plant and equipment:                       |  |           | $22,251,342
|Non-utility - property, plant and equipment                  |  | 4,176,447 |            
|Less accumulated depreciation                                |  |           | 9,734,579  
|Total plant utility and non-utility net                      |  |           | 16,693,210 
|                                                             |  |           |            
|Investments:                                                 |  |           |            
|Marketable securities available for sale at fair value       |  | 1,334,094 |            
|Investment in joint venture                                  |  |           |            
|                                                             | 
|Total investments                                            |  |           |            
|                                                             |  |           |            
|Current assets:                                              |  |           |            
|Cash and cash equivalents                                    |  |           | 257,035    
|Customer accounts receivable, less allowance for             |  |           |            
|uncollectible accounts of $97,000 in 2000 and 1999           |  | 1,310,689 |            
|Gas stored underground, at average cost                      |  | 2,194,436 |            
|Gas and appliance inventories                                |  |           | 638,891    
|Prepaid expenses                                             |  |           |            
|Prepaid income taxes                                         |  |           |            
|Deferred income tax assets                                   |  |           |            
|                                                             | 
|Total current assets                                         |  |           |            
|                                                             |  |           |            
|Deferred debits and other assets:                            |  |           |            
|Regulatory assets:                                           |  |           |            
|Income taxes recoverable through rates                       |  | 1,016,661 |            
|Prepaid pension costs                                        |  |           |            
|Unrecovered gas costs                                        |  |           |            
|Other                                                        |  |           |            
|                                                             | 
|Goodwill net of amortization of $220,031 in 2000             |  |           |            
|and $131,744 in 1999                                         |  |           |            
|Unamortized debt issuance cost (net of amortization          |  | 349,759   |            
|of $189,814 in 2000 and $168,256 in 1999)                    |  |           |            
|Other                                                        |  |           |            
|Total deferred debits and other assets                       |  |           | 6,838,839  
|                                                             |  |           |            
|Total assets                                                 |  |           |            
|                                                             |  |           |            
|                                                             |  |           |            
|See accompanying notes to consolidated financial statements. |  |           |            
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