|CORNING NATURAL GAS CORPORATION AND SUBSIDIARY               |             |                        
|------------------------------------------------------------ | ----------- | -----------------------
|Consolidated Statements of Cash Flows                        |             |                        
|For the Years Ended September 30, 2000 and 1999              |             |                        
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|Cash flows from operating activities:                        |             |                        
|Net income                                                   |             |                        
|Adjustments to reconcile net income to net cash(used in)     |             |                        
|provided by operating activities:                            |             |                        
|Depreciation and amortization                                |             | 964,958                
|Gain on sale of marketable securities                        |             | (45,256)               
|Deferred income taxes                                        |             |                        
|                                                             |             |                        
|Changes in assets and liabilities:                           |             |                        
|(Increase) decrease in:                                      |             |                        
|Accounts receivable                                          |             |                        
|Gas stored underground                                       |             |                        
|Gas and appliance inventories                                |             | (4,543)                
|Prepaid expenses                                             |             |                        
|Unrecovered gas costs                                        |             |                        
|Prepaid income taxes                                         |             |                        
|Deferred income tax asset                                    |             |                        
|Deferred charges - pension and other                         |             | (649,702)              
|Other assets and long-term debt issuance costs               | ---         | 22,397                 
|Increase (decrease) in:                                      |             |                        
|Accounts payable                                             |             |                        
|Customer deposit liability                                   |             |                        
|Accrued general taxes                                        |             |                        
|Supplier refunds due customers                               |             | 25,814                 
|Other liabilities and deferred credits                       |             | 406,575                
|Net cash (used in) provided by operating
 activities         | (1,285,369) |                        
|                                                             |             |                        
|Cash flow from investing activities:                         |             |                        
|Purchase of securities available for sale                    |             | (135,362)              
|Investment in joint venture                                  |             |                        
|Acquisitions of businesses, net of cash acquired             | ---         | (600,907)              
|Capital expenditures, net of minor disposals                 | (674,773)   |                        
|Net cash used in investing activities                        |             | (1,005,135)            
|                                                             |             |                        
|Cash flows from financing activities:                        |             |                        
|Net borrowings (repayments) under lines-of-credit            | 3,010,359   |                        
|Dividends paid                                               |             |                        
|Borrowings under long-term debt agreements                   | 299,000     |                        
|Repayment of long-term debt                                  |             |                        
|Net cash provided by financing activities                    | 2,341,752   |                        
|Net increase (decrease) in cash                              |             | 51,248                 
|                                                             |             |                        
|Cash and cash equivalents at beginning of year               | 205,787     |                        
|                                                             |             |                        
|Cash and cash equivalents at end of year                     | $257,035    |                        
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|Supplemental disclosures of cash flow information:           |             |                        
|Cash paid during the period for:                             |             |                        
|Interest                                                     |             |                        
|Income taxes                                                 |             |                        
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|Noncash investing and financing activities:                  |             |                        
|Acquisition of assets financed by seller                     |             | $                   ---
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|See accompanying notes to consolidated financial statements. |             |                        
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