----

----

| [ X ] | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended December 31, 2010 |
|-------|----------------------------------------------------------------------------------------------------------------------------------|

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

| Missouri(State of Incorporation)                                                                                                                                                      | 43-0368139(I.R.S. Employer Identification number) |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|
|  720 Olive StreetSt. Louis, MO  63101(Address and zip code of principal executive offices) 314-342-0500(Registrant’s telephone number, including area code) |

|   | Large accelerated filer | [     ] |   | Accelerated filer         | [     ] |
|--------|-------------------------|-----------------------------|--------|---------------------------|-----------------------------|
|   | Non-accelerated filer   | [ X ]                       |   | Smaller reporting company | [     ] |

----

----

Table of Contents 

| TABLE OF CONTENTS                        | Page No.                                                              |
|------------------------------------------|-----------------------------------------------------------------------|
|                                     |                                                                  |   |   |
| PART I.  FINANCIAL INFORMATION |
|                                     |                                                                  |   |   |
| Item 1                                   | Financial Statements:                                                 |   |
|                                     |                                                                  | Statements of Income | 4 |
|                                     |                                                                  | Statements of Comprehensive Income | 5 |
|                                     |                                                                  | Balance Sheets | 6-7 |
|                                     |                                                                  | Statements of Cash Flows | 8 |
|                                     |                                                                  | Notes to Financial Statements | 9-20 |
|                                     |                                                                  |   |   |
| Item 2                                   | Management’s Discussion and Analysis of Financial Condition and |   |
|                                     |                                                                  | Results of Operations | 21-30 |
|                                     |                                                                  |   |   |
| Item 3                                   | Quantitative and Qualitative Disclosures About Market Risk            | 31 |
|                                     |                                                                  |   |   |
| Item 4                                   | Controls and Procedures                                               | 31 |
|                                     |                                                                  |   |   |
| PART II.  OTHER INFORMATION    |                                                                  |
|                                     |                                                                  |   |   |
| Item 1                                   | Legal Proceedings                                                     | 32 |
|                                     |                                                                  |   |   |
| Item 2                                   | Unregistered Sales of Equity Securities and Use of Proceeds           | 32 |
|                                     |                                                                  |   |   |
| Item 6                                   | Exhibits                                                              | 32 |
|                                     |                                                                  |   |   |
| SIGNATURE                                | 33                                                                    |
|                                     |                                                                  |   |   |
| INDEX TO EXHIBITS                        | 34                                                                    |

Exhibit 99.1

Table of Contents 

PART I. FINANCIAL INFORMATION

Exhibit 99.1

Table of Contents 

Item 1. Financial Statements

STATEMENTS OF INCOME

|                                                                             |   | Three Months Ended |    |
|----------------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                             |   | December 31,       |    |
| (Thousands)                                                                      |   | 2010               |    | 2009 |   |
|                                                                             |   |               |    |   |   |   |   |
| Operating Revenues:                                                              |   |               |    |   |   |   |   |
|   Utility                                                              |   | $                  | 277,443 |   | $ | 282,929 |   |
|   Other                                                                |   |               | — |   |   | 10,325 |   |
|         Total Operating Revenues         |   |               | 277,443 |   |   | 293,254 |   |
| Operating Expenses:                                                              |   |               |    |   |   |   |   |
|   Utility                                                              |   |               |    |   |   |   |   |
|     Natural and propane gas                                  |   |               | 173,365 |   |   | 182,000 |   |
|     Other operation expenses                                 |   |               | 34,862  |   |   | 37,463 |   |
|     Maintenance                                              |   |               | 6,140   |   |   | 6,174 |   |
|     Depreciation and amortization                            |   |               | 9,638   |   |   | 9,363 |   |
|     Taxes, other than income taxes                           |   |               | 15,748  |   |   | 16,224 |   |
|         Total Utility Operating Expenses |   |               | 239,753 |   |   | 251,224 |   |
|   Other                                                                |   |               | 5       |   |   | 4,328 |   |
|         Total Operating Expenses         |   |               | 239,758 |   |   | 255,552 |   |
| Operating Income                                                                 |   |               | 37,685  |   |   | 37,702 |   |
| Other Income and (Income Deductions) – Net                                 |   |               | 1,815   |   |   | 1,510 |   |
| Interest Charges:                                                                |   |               |    |   |   |   |   |
|   Interest on long-term debt                                           |   |               | 5,942   |   |   | 6,146 |   |
|   Other interest charges                                               |   |               | 777     |   |   | 563 |   |
|         Total Interest Charges           |   |               | 6,719   |   |   | 6,709 |   |
| Income Before Income Taxes                                                       |   |               | 32,781  |   |   | 32,503 |   |
| Income Tax Expense                                                               |   |               | 11,326  |   |   | 11,437 |   |
| Net Income                                                                       |   | $                  | 21,455  |   | $ | 21,066 |   |
|                                                                             |   |               |    |   |   |   |   |
| See Notes to Financial Statements.                                               |   |               |    |   |   |   |   |

Table of Contents 

STATEMENTS OF COMPREHENSIVE INCOME

|                                                                                                             |   | Three Months Ended |   |
|------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                                             |   | December 31,       |   |
| (Thousands)                                                                                                      |   | 2010               |   | 2009 |   |
|                                                                                                             |   |               |   |   |   |   |   |
| Net Income                                                                                                       |   | $                  | 21,455 |   | $ | 21,066 |   |
| Other Comprehensive Income (Loss), Before Tax:                                                                   |   |               |   |   |   |   |   |
|   Net gains (losses) on cash flow hedging derivative instruments:                                      |   |               |   |   |   |   |   |
|     Net hedging gain arising during the period                                               |   |               | 173    |   |   | 166 |   |
|     Reclassification adjustment for gains included in net income                             |   |               | (49    | ) |   | (62 | ) |
|         Net unrealized gains on cash flow hedging derivative instruments |   |               | 124    |   |   | 104 |   |
|    Amortization of actuarial loss included in net periodic pension and                            |   |               |   |   |   |   |   |
|      postretirement benefit cost                                                        |   |               | 107    |   |   | 98 |   |
| Other Comprehensive Income, Before Tax                                                                           |   |               | 231    |   |   | 202 |   |
| Income Tax Expense Related to Items of Other Comprehensive Loss                                                  |   |               | 89     |   |   | 78 |   |
| Other Comprehensive Income, Net of Tax                                                                           |   |               | 142    |   |   | 124 |   |
| Comprehensive Income                                                                                             |   | $                  | 21,597 |   | $ | 21,190 |   |
|                                                                                                             |   |               |   |   |   |   |   |
| See Notes to Financial Statements.                                                                               |   |               |   |   |   |   |   |

Table of Contents 

BALANCE SHEETS

|                                                                         |   | Dec. 31, |      |   |   | Sept. 30, |   |      |   | Dec. 31, |   |
|------------------------------------------------------------------------------|--------|----------|-----------|--------|--------|-----------|--------|-----------|--------|----------|--------|
| (Thousands)                                                                  |   | 2010     |      |   |   | 2010      |   |      |   | 2009     |   |
|                                                                         |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
| ASSETS                                                                       |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
| Utility Plant                                                                |   | $        | 1,338,568 |   |   |      | $      | 1,326,284 |   |     |   | $ | 1,288,862 |   |
|   Less:  Accumulated depreciation and amortization       |   |     | 447,582   |   |   |      |   | 442,200   |   |     |   |   | 429,892 |   |
|         Net Utility Plant            |   |     | 890,986   |   |   |      |   | 884,084   |   |     |   |   | 858,970 |   |
| Other Property and Investments                                               |   |     | 46,332    |   |   |      |   | 45,864    |   |     |   |   | 41,988 |   |
|                                                                         |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
| Current Assets:                                                              |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
|   Cash and cash equivalents                                        |   |     | 1,208     |   |   |      |   | 1,009     |   |     |   |   | 7,925 |   |
|   Accounts receivable:                                             |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
|     Utility                                              |   |     | 165,171   |   |   |      |   | 70,053    |   |     |   |   | 159,423 |   |
|     Non-utility                                          |   |     | 732       |   |   |      |   | 848       |   |     |   |   | 1,434 |   |
|     Associated companies                                 |   |     | 5,947     |   |   |      |   | 310       |   |     |   |   | 735 |   |
|     Other                                                |   |     | 6,665     |   |   |      |   | 7,277     |   |     |   |   | 15,277 |   |
|     Allowance for doubtful accounts                      |   |     | (6,628    | )      |   |      |   | (10,176   | )      |     |   |   | (7,928 | ) |
|   Inventories:                                                     |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
|     Natural gas stored underground at LIFO cost          |   |     | 109,171   |   |   |      |   | 113,576   |   |     |   |   | 88,204 |   |
|     Propane gas at FIFO cost                             |   |     | 16,881    |   |   |      |   | 15,625    |   |     |   |   | 15,649 |   |
|     Materials, supplies, and merchandise at average cost |   |     | 4,130     |   |   |      |   | 3,741     |   |     |   |   | 4,037 |   |
|   Derivative instrument assets                                     |   |     | 10,415    |   |   |      |   | 9,288     |   |     |   |   | 7,505 |   |
|   Unamortized purchased gas adjustments                            |   |     | 18,136    |   |   |      |   | 23,718    |   |     |   |   | — |   |
|   Prepayments and other                                            |   |     | 5,920     |   |   |      |   | 7,101     |   |     |   |   | 6,759 |   |
|         Total Current Assets         |   |     | 337,748   |   |   |      |   | 242,370   |   |     |   |   | 299,020 |   |
|                                                                         |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
| Deferred Charges:                                                            |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
|   Regulatory assets                                                |   |     | 453,030   |   |   |      |   | 479,462   |   |     |   |   | 467,130 |   |
|   Other                                                            |   |     | 7,100     |   |   |      |   | 6,672     |   |     |   |   | 6,640 |   |
|         Total Deferred Charges       |   |     | 460,130   |   |   |      |   | 486,134   |   |     |   |   | 473,770 |   |
| Total Assets                                                                 |   | $        | 1,735,196 |   |   |      | $      | 1,658,452 |   |     |   | $ | 1,673,748 |   |
|                                                                         |   |     |      |   |   |      |   |      |   |     |   |   |   |   |

Table of Contents 

|                                                                                                                         |   | Dec. 31, |      |   |   | Sept. 30, |   |      |   | Dec. 31, |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|----------|-----------|--------|--------|-----------|--------|-----------|--------|----------|--------|
| (Thousands, except share amounts)                                                                                            |   | 2010     |      |   |   | 2010      |   |      |   | 2009     |   |
|                                                                                                                         |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
| CAPITALIZATION AND LIABILITIES                                                                                               |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
| Capitalization:                                                                                                              |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
|   Common stock and Paid-in capital (11,684, 11,674, and    11,644 shares issued, respectively) |   | $        | 209,238   |   |   |      | $      | 208,154   |   |     |   | $ | 204,724 |   |
|   Retained earnings                                                                                                |   |     | 218,373   |   |   |      |   | 205,980   |   |     |   |   | 213,726 |   |
|   Accumulated other comprehensive loss                                                                             |   |     | (2,733    | )      |   |      |   | (2,875    | )      |     |   |   | (2,495 | ) |
|       Total Common Stock Equity                                                                |   |     | 424,878   |   |   |      |   | 411,259   |   |     |   |   | 415,955 |   |
|   Long-term debt                                                                                                   |   |     | 364,313   |   |   |      |   | 364,298   |   |     |   |   | 364,254 |   |
|       Total Capitalization                                                                     |   |     | 789,191   |   |   |      |   | 775,557   |   |     |   |   | 780,209 |   |
|                                                                                                                         |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
| Current Liabilities:                                                                                                         |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
|   Notes payable                                                                                                    |   |     | 97,450    |   |   |      |   | 129,650   |   |     |   |   | 145,150 |   |
|   Notes payable – associated companies                                                                       |   |     | 68,910    |   |   |      |   | —   |   |     |   |   | — |   |
|   Accounts payable                                                                                                 |   |     | 68,625    |   |   |      |   | 36,706    |   |     |   |   | 65,378 |   |
|   Accounts payable – associated companies                                                                    |   |     | 5         |   |   |      |   | 652       |   |     |   |   | 8 |   |
|   Advance customer billings                                                                                        |   |     | 9,639     |   |   |      |   | 16,809    |   |     |   |   | 10,421 |   |
|   Current portion of long-term debt                                                                                |   |     | —   |   |   |      |   | 25,000    |   |     |   |   | 25,000 |   |
|   Wages and compensation accrued                                                                                   |   |     | 12,406    |   |   |      |   | 13,410    |   |     |   |   | 11,715 |   |
|   Dividends payable                                                                                                |   |     | 9,062     |   |   |      |   | 8,806     |   |     |   |   | 8,790 |   |
|   Customer deposits                                                                                                |   |     | 11,315    |   |   |      |   | 11,244    |   |     |   |   | 12,163 |   |
|   Interest accrued                                                                                                 |   |     | 5,756     |   |   |      |   | 9,639     |   |     |   |   | 6,217 |   |
|   Taxes accrued                                                                                                    |   |     | 18,670    |   |   |      |   | 8,677     |   |     |   |   | 22,778 |   |
|   Unamortized purchased gas adjustments                                                                            |   |     | —   |   |   |      |   | —   |   |     |   |   | 4,741 |   |
|   Deferred income taxes                                                                                            |   |     | 4,159     |   |   |      |   | 4,248     |   |     |   |   | 5,169 |   |
|   Other                                                                                                            |   |     | 23,781    |   |   |      |   | 11,385    |   |     |   |   | 19,510 |   |
|       Total Current Liabilities                                                                |   |     | 329,778   |   |   |      |   | 276,226   |   |     |   |   | 337,040 |   |
|                                                                                                                         |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
| Deferred Credits and Other Liabilities:                                                                                      |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
|   Deferred income taxes                                                                                            |   |     | 298,176   |   |   |      |   | 292,766   |   |     |   |   | 256,339 |   |
|   Unamortized investment tax credits                                                                               |   |     | 3,485     |   |   |      |   | 3,538     |   |     |   |   | 3,700 |   |
|   Pension and postretirement benefit costs                                                                         |   |     | 210,642   |   |   |      |   | 207,607   |   |     |   |   | 201,659 |   |
|   Asset retirement obligations                                                                                     |   |     | 26,215    |   |   |      |   | 25,829    |   |     |   |   | 25,876 |   |
|   Regulatory liabilities                                                                                           |   |     | 47,898    |   |   |      |   | 47,365    |   |     |   |   | 44,681 |   |
|   Other                                                                                                            |   |     | 29,811    |   |   |      |   | 29,564    |   |     |   |   | 24,244 |   |
|       Total Deferred Credits and Other Liabilities                                             |   |     | 616,227   |   |   |      |   | 606,669   |   |     |   |   | 556,499 |   |
| Commitments and Contingencies (Note 8)                                                                                       |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
| Total Capitalization and Liabilities                                                                                         |   | $        | 1,735,196 |   |   |      | $      | 1,658,452 |   |     |   | $ | 1,673,748 |   |
|                                                                                                                         |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
| See Notes to Financial Statements.                                                                                           |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
|                                                                                                                         |   |     |      |   |   |      |   |      |   |     |   |   |   |   |
|                                                                                                                         |   |     |      |   |   |      |   |      |   |     |   |   |   |   |

Table of Contents 

STATEMENTS OF CASH FLOWS

|                                                                                                                                       |   | Three Months Ended |     |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                                                                                       |   | December 31,       |     |
| (Thousands)                                                                                                                                |   | 2010               |     |   |   | 2009 |   |
|                                                                                                                                       |   |               |     |   |   |   |   |   |   |
| Operating Activities:                                                                                                                      |   |               |     |   |   |   |   |   |   |
|   Net Income                                                                                                                     |   | $                  | 21,455   |   |   |   | $ | 21,066 |   |
|   Adjustments to reconcile net income to net cash provided by (used in)      operating activities: |   |               |     |   |   |   |   |   |   |
|     Depreciation and amortization                                                                                      |   |               | 9,638    |   |   |   |   | 9,363 |   |
|     Deferred income taxes and investment tax credits                                                                   |   |               | 1,157    |   |   |   |   | (3,561 | ) |
|     Other – net                                                                                                  |   |               | (761     | ) |   |   |   | 326 |   |
|     Changes in assets and liabilities:                                                                                 |   |               |     |   |   |   |   |   |   |
|       Accounts receivable – net                                                                        |   |               | (103,575 | ) |   |   |   | (91,730 | ) |
|       Unamortized purchased gas adjustments                                                                  |   |               | 5,582    |   |   |   |   | 1,611 |   |
|       Deferred purchased gas costs                                                                           |   |               | 30,860   |   |   |   |   | 23,609 |   |
|       Accounts payable                                                                                       |   |               | 32,711   |   |   |   |   | 35,998 |   |
|       Advance customer billings - net                                                                        |   |               | (7,170   | ) |   |   |   | (10,719 | ) |
|       Taxes accrued                                                                                          |   |               | 9,987    |   |   |   |   | 10,268 |   |
|       Natural gas stored underground                                                                         |   |               | 4,405    |   |   |   |   | 5,109 |   |
|       Other assets and liabilities                                                                           |   |               | (6,351   | ) |   |   |   | (1,019 | ) |
|           Net cash (used in) provided by operating activities                            |   |               | (2,062   | ) |   |   |   | 321 |   |
|                                                                                                                                       |   |               |     |   |   |   |   |   |   |
| Investing Activities:                                                                                                                      |   |               |     |   |   |   |   |   |   |
|   Capital expenditures                                                                                                           |   |               | (15,512  | ) |   |   |   | (11,065 | ) |
|   Other investments                                                                                                              |   |               | 1,002    |   |   |   |   | (954 | ) |
|           Net cash used in investing activities                                          |   |               | (14,510  | ) |   |   |   | (12,019 | ) |
|                                                                                                                                       |   |               |     |   |   |   |   |   |   |
| Financing Activities:                                                                                                                      |   |               |     |   |   |   |   |   |   |
|   Maturity of first mortgage bonds                                                                                               |   |               | (25,000  | ) |   |   |   | — |   |
|   (Repayment) issuance of short-term debt - net                                                                                  |   |               | (32,200  | ) |   |   |   | 15,350 |   |
|   Borrowings from Laclede Group                                                                                                  |   |               | 88,762   |   |   |   |   | 1,200 |   |
|   Repayment of borrowings from Laclede Group                                                                                     |   |               | (19,852  | ) |   |   |   | (1,200 | ) |
|   Changes in book overdrafts                                                                                                     |   |               | 13,310   |   |   |   |   | 11,028 |   |
|   Dividends paid                                                                                                                 |   |               | (8,806   | ) |   |   |   | (8,535 | ) |
|   Issuance of common stock to Laclede Group                                                                                      |   |               | 352      |   |   |   |   | 346 |   |
|   Excess tax benefits from stock-based compensation                                                                              |   |               | 205      |   |   |   |   | 32 |   |
|           Net cash provided by financing activities                                      |   |               | 16,771   |   |   |   |   | 18,221 |   |
|                                                                                                                                       |   |               |     |   |   |   |   |   |   |
| Net Increase in Cash and Cash Equivalents                                                                                                  |   |               | 199      |   |   |   |   | 6,523 |   |
| Cash and Cash Equivalents at Beginning of Period                                                                                           |   |               | 1,009    |   |   |   |   | 1,402 |   |
| Cash and Cash Equivalents at End of Period                                                                                                 |   | $                  | 1,208    |   |   |   | $ | 7,925 |   |
|                                                                                                                                       |   |               |     |   |   |   |   |   |   |
|                                                                                                                                       |   |               |     |   |   |   |   |   |   |
| Supplemental Disclosure of Cash Paid (Refunded) During the Period for:                                                                     |   |               |     |   |   |   |   |   |   |
|     Interest                                                                                                           |   | $                  | 10,321   |   |   |   | $ | 10,294 |   |
|     Income taxes                                                                                                       |   |               | 595      |   |   |   |   | (16 | ) |
|                                                                                                                                       |   |               |     |   |   |   |   |   |   |
| See Notes to Financial Statements.                                                                                                         |   |               |     |   |   |   |   |   |   |

Table of Contents 

NOTES TO FINANCIAL STATEMENTS

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

Exhibit 99.1

Exhibit 99.1

|   |                                                          |   | Three Months Ended |   |   |
|--------|---------------------------------------------------------------|--------|--------------------|--------|--------|
|   |                                                          |   | December 31,       |   |   |
|   | (Thousands)                                                   |   |               | 2010   |   |   | 2009 |   |   |
|   |                                                          |   |               |   |   |   |   |   |   |
|   | Total equity compensation cost                                |   | $                  | 613    |   | $ | 758 |   |   |
|   | Compensation cost capitalized                                 |   |               | (154   | )      |   | (138 | ) |   |
|   | Compensation cost recognized in net income                    |   |               | 459    |   |   | 620 |   |   |
|   | Income tax benefit recognized in net income                   |   |               | (177   | )      |   | (239 | ) |   |
|   | Compensation cost recognized in net income, net of income tax |   | $                  | 282    |   | $ | 381 |   |   |

Table of Contents 

| 2. | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS |
|----|-------------------------------------------------|

|   |                                                   |   | Three Months Ended |   |
|--------|--------------------------------------------------------|--------|--------------------|--------|
|   |                                                   |   | December 31,       |   |
|   | (Thousands)                                            |   | 2010               |   | 2009 |   |
|   |                                                   |   |               |   |   |   |   |   |
|   | Service cost – benefits earned during the period |   | $                  | 2,388  |   | $ | 2,274 |   |
|   | Interest cost on projected benefit obligation          |   |               | 4,705  |   |   | 4,957 |   |
|   | Expected return on plan assets                         |   |               | (4,712 | ) |   | (5,032 | ) |
|   | Amortization of prior service cost                     |   |               | 160    |   |   | 239 |   |
|   | Amortization of actuarial loss                         |   |               | 2,557  |   |   | 2,034 |   |
|   | Sub-total                                              |   |               | 5,098  |   |   | 4,472 |   |
|   | Regulatory adjustment                                  |   |               | (3,533 | ) |   | (2,893 | ) |
|   | Net pension cost                                       |   | $                  | 1,565  |   | $ | 1,579 |   |

Table of Contents 

|   |                                                      |   | Three Months Ended |   |
|--------|-----------------------------------------------------------|--------|--------------------|--------|
|   |                                                      |   | December 31,       |   |
|   | (Thousands)                                               |   | 2010               |   | 2009 |   |
|   |                                                      |   |               |   |   |   |   |   |
|   | Service cost – benefits earned during the period    |   | $                  | 1,919  |   | $ | 1,610 |   |
|   | Interest cost on accumulated                              |   |               |   |   |   |   |   |
|   |     postretirement benefit obligation |   |               | 1,211  |   |   | 1,129 |   |
|   | Expected return on plan assets                            |   |               | (911   | ) |   | (758 | ) |
|   | Amortization of transition obligation                     |   |               | 34     |   |   | 34 |   |
|   | Amortization of prior service credit                      |   |               | (582   | ) |   | (582 | ) |
|   | Amortization of actuarial loss                            |   |               | 1,110  |   |   | 995 |   |
|   | Sub-total                                                 |   |               | 2,781  |   |   | 2,428 |   |
|   | Regulatory adjustment                                     |   |               | (871   | ) |   | (518 | ) |
|   | Net postretirement benefit cost                           |   | $                  | 1,910  |   | $ | 1,910 |   |

Table of Contents 

| 3. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
|----|-------------------------------------|

|   | (Thousands)                               |   | CarryingAmount |    | FairValue |   |
|--------|-------------------------------------------|--------|----------------|---------|-----------|--------|
|   | As of December 31, 2010         |   |           |    |      |   |   |   |
|   | Cash and cash equivalents                 |   | $              | 1,208   |      | $      | 1,208 |   |
|   | Marketable securities                     |   |           | 13,652  |      |   | 13,652 |   |
|   | Derivative instrument assets              |   |           | 12,516  |      |   | 12,516 |   |
|   | Short-term debt                           |   |           | 166,360 |      |   | 166,360 |   |
|   | Long-term debt                            |   |           | 364,313 |      |   | 393,705 |   |
|   |                                      |   |           |    |      |   |   |   |
|   | As of September 30, 2010        |   |           |    |      |   |   |   |
|   | Cash and cash equivalents                 |   | $              | 1,009   |      | $      | 1,009 |   |
|   | Marketable securities                     |   |           | 12,856  |      |   | 12,856 |   |
|   | Derivative instrument assets              |   |           | 10,974  |      |   | 10,974 |   |
|   | Short-term debt                           |   |           | 129,650 |      |   | 129,650 |   |
|   | Long-term debt, including current portion |   |           | 389,298 |      |   | 443,959 |   |
|   |                                      |   |           |    |      |   |   |   |
|   | As of December 31, 2009         |   |           |    |      |   |   |   |
|   | Cash and cash equivalents                 |   | $              | 7,925   |      | $      | 7,925 |   |
|   | Marketable securities                     |   |           | 11,679  |      |   | 11,679 |   |
|   | Derivative instrument assets              |   |           | 7,505   |      |   | 7,505 |   |
|   | Short-term debt                           |   |           | 145,150 |      |   | 145,150 |   |
|   | Long-term debt, including current portion |   |           | 389,254 |      |   | 409,216 |   |

Note 4

Table of Contents 

| 4. | 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 December 31, 2010                     |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   | Assets                                                |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   |   U. S. Stock/Bond Mutual Funds             |   | $      | 13,652                                |   | $      | —                              |   | $      | —                                |   | $      | —                                                 |   | $      | 13,652  |   |
|   |   NYMEX natural gas contracts               |   |   | 2,383                                 |   |   | —                              |   |   | —                                |   |   | 9,636                                                   |   |   | 12,019  |   |
|   |   NYMEX gasoline and heating                |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   |     oil contracts                 |   |   | 182                                   |   |   | —                              |   |   | —                                |   |   | 315                                                     |   |   | 497     |   |
|   |         Total |   | $      | 16,217                                |   | $      | —                              |   | $      | —                                |   | $      | 9,951                                                   |   | $      | 26,168  |   |
|   |                                                  |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   | Liabilities                                           |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   |   NYMEX natural gas contracts               |   | $      | 23,425                                |   | $      | —                              |   | $      | —                                |   | $      | (23,425                                                 | )      | $      | — |   |
|   |                                                  |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   | As of September 30, 2010                    |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   | Assets                                                |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   |   U. S. Stock/Bond Mutual Funds             |   | $      | 12,856                                |   | $      | —                              |   | $      | —                                |   | $      | —                                                 |   | $      | 12,856  |   |
|   |   NYMEX natural gas contracts               |   |   | 1,909                                 |   |   | —                              |   |   | —                                |   |   | 8,786                                                   |   |   | 10,695  |   |
|   |   NYMEX gasoline and heating                |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   |     oil contracts                 |   |   | 59                                    |   |   | —                              |   |   | —                                |   |   | 220                                                     |   |   | 279     |   |
|   |         Total |   | $      | 14,824                                |   | $      | —                              |   | $      | —                                |   | $      | 9,006                                                   |   | $      | 23,830  |   |
|   |                                                  |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   | Liabilities                                           |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   |   NYMEX natural gas contracts               |   | $      | 40,537                                |   | $      | —                              |   | $      | —                                |   | $      | (40,537                                                 | )      | $      | — |   |
|   |   NYMEX gasoline & heating              |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   |     oil contracts                 |   |   | 37                                    |   |   | —                              |   |   | —                                |   |   | (37                                                     | )      |   | — |   |
|   |         Total |   | $      | 40,574                                |   | $      | —                              |   | $      | —                                |   | $      | (40,574                                                 | )      | $      | — |   |
|   |                                                  |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   | As of December 31, 2009                     |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   | Assets                                                |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   |   U. S. Stock/Bond Mutual Funds             |   | $      | 11,679                                |   | $      | —                              |   | $      | —                                |   | $      | —                                                 |   | $      | 11,679  |   |
|   |   NYMEX natural gas contracts               |   |   | 1,199                                 |   |   | —                              |   |   | —                                |   |   | 5,919                                                   |   |   | 7,118   |   |
|   |   NYMEX gasoline and heating                |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   |     oil contracts                 |   |   | 289                                   |   |   | —                              |   |   | —                                |   |   | 98                                                      |   |   | 387     |   |
|   |         Total |   | $      | 13,167                                |   | $      | —                              |   | $      | —                                |   | $      | 6,017                                                   |   | $      | 19,184  |   |
|   |                                                  |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   | Liabilities                                           |   |   |                                  |   |   |                                 |   |   |                                   |   |   |                                                    |   |   |    |   |
|   |   NYMEX natural gas contracts               |   | $      | 48,208                                |   | $      | —                              |   | $      | —                                |   | $      | (48,208                                                 | )      | $      | — |   |

Table of Contents 

Note 5

| 5. | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
|----|-----------------------------------------------|

|   |                                |   | MMBtu(millions) |   | Avg. PricePerMMBtu |   |
|--------|-------------------------------------|--------|-----------------|--------|--------------------|--------|
|   | Open long futures positions         |   |            |   |               |   |   |   |
|   |     Fiscal 2011 |   | 7.19            |   | $                  | 6.72   |   |   |
|   |     Fiscal 2012 |   | 10.94           |   |               | 5.26   |   |   |

Table of Contents 

| The Effect of Derivative Instruments on the Statements of Income and Statements of Comprehensive Income |                                             |   |
|---------------------------------------------------------------------------------------------------------|--------------------------------------------------|--------|
|                                                                                                    |                                             |   |   |   |   |   |   |   |   |
|                                                                                                    |                                             |   |   |   |   |   |   |   |   |
|                                                                                                    |                                             |   | Three Months Ended |   |   |
|                                                                                                    | Location of Gain (Loss)                          |   | December 31, |   |   |
| (Thousands)                                                                                             | Recorded in Income                               |   |   | 2010 |   |   | 2009 |   |   |
|                                                                                                    |                                             |   |   |   |   |   |   |   |   |
| Derivatives in Cash Flow Hedging Relationships                                                          |                                             |   |   |   |   |   |   |   |   |
|                                                                                                    |                                             |   |   |   |   |   |   |   |   |
| NYMEX gasoline and heating oil contracts:                                                               |                                             |   |   |   |   |   |   |   |   |
|   Effective portion of gain recognized in                                                     |                                             |   |   |   |   |   |   |   |   |
|     OCI on derivatives                                                              |                                             |   | $ | 173 |   | $ | 166 |   |   |
|                                                                                                    |                                             |   |   |   |   |   |   |   |   |
|   Effective portion of gain reclassified from                                                 |                                             |   |   |   |   |   |   |   |   |
|     AOCI to income                                                                  | Utility – Other Operation Expenses         |   |   | 49 |   |   | 62 |   |   |
|                                                                                                    |                                             |   |   |   |   |   |   |   |   |
|   Ineffective portion of gain (loss) on derivatives                                           |                                             |   |   |   |   |   |   |   |   |
|     recognized in income:                                                           | Utility – Other Operation Expenses         |   |   | 29 |   |   | (56 | ) |   |
|                                                                                                    |                                             |   |   |   |   |   |   |   |   |
| Derivatives Not Designated as Hedging Instruments *                                                     |                                             |   |   |   |   |   |   |   |
|                                                                                                    |                                             |   |   |   |   |   |   |   |   |
| NYMEX gasoline and heating oil contracts:                                                               |                                             |   |   |   |   |   |   |   |   |
|                                                                                                    |                                             |   |   |   |   |   |   |   |   |
|   Gain recognized in income on derivatives                                                    | Other Income and (Income Deductions) – Net |   | $ | 16 |   | $ | — |   |   |

| * | 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 Income. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents 

| Fair Value of Derivative Instruments in the Balance Sheet at December 31, 2010  |   |
|---------------------------------------------------------------------------------|--------|
|                                                                            |   |   |   |   |   |
|                                                                            |   | Asset Derivatives |   | Liability Derivatives |   |
| (Thousands)                                                                     |   | Balance Sheet Location |   | Fair Value | * | Balance Sheet Location |   | Fair Value | * |
| Derivatives designated as hedging instruments                                   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |
|   NYMEX gasoline and heating oil contracts                            |   | Derivative Instrument Assets | $ | 169 |   | Derivative Instrument Assets | $ | — |   |
|                                                                            |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments                               |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |
|   NYMEX natural gas contracts                                         |   | Derivative Instrument Assets |   | 2,289 |   | Derivative Instrument Assets |   | 23,180 |   |
|                                                                            |   | Other Deferred Charges |   | 94 |   | Other Deferred Charges |   | 245 |   |
|   NYMEX gasoline and heating oil contracts                            |   | Derivative Instrument Assets |   | 13 |   | Derivative Instrument Assets |   | — |   |
|         Sub-total                       |   |   |   | 2,396 |   |   |   | 23,425 |   |
|   Total derivatives                                                   |   |   | $ | 2,565 |   |   | $ | 23,425 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |
| Fair Value of Derivative Instruments in the 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 gasoline and heating oil contracts                            |   | Derivative Instrument Assets | $ | 56 |   | Derivative Instrument Assets | $ | 34 |   |
|                                                                            |   |   |   |   |   |   |   |
| 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 |   |
|   NYMEX gasoline and heating oil contracts                            |   | Derivative Instrument Assets |   | 3 |   | Derivative Instrument Assets |   | 3 |   |
|         Sub-total                       |   |   |   | 1,912 |   |   |   | 40,540 |   |
|   Total derivatives                                                   |   |   | $ | 1,968 |   |   | $ | 40,574 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |
| Fair Value of Derivative Instruments in the Balance Sheet at December 31, 2009  |   |
|                                                                            |   |   |   |   |   |   |   |   |   |
|                                                                            |   | Asset Derivatives |   | Liability Derivatives |   |
| (Thousands)                                                                     |   | Balance Sheet Location |   | Fair Value | * | Balance Sheet Location |   | Fair Value | * |
| Derivatives designated as hedging instruments                                   |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |
|   NYMEX gasoline and heating oil contracts                            |   | Derivative Instrument Assets | $ | 289 |   | Derivative Instrument Assets | $ | — |   |
|                                                                            |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments                               |   |   |   |   |   |   |   |
|                                                                            |   |   |   |   |   |   |   |   |   |
|   NYMEX natural gas contracts                                         |   | Derivative Instrument Assets |   | 1,199 |   | Derivative Instrument Assets |   | 48,208 |   |
|   Total derivatives                                                   |   |   | $ | 1,488 |   |   | $ | 48,208 |   |

| * | 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 Balance Sheets. As such, the gross balances presented in the table above are not indicative of the Utility’s net economic exposure. Refer to Note 4, Fair Value Measurements, for information on the valuation of derivative instruments. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents 

|   |                                                                          |   | Dec. 31, |    | Sept. 30, |   | Dec. 31, |   |
|--------|-------------------------------------------------------------------------------|--------|----------|---------|-----------|--------|----------|--------|
|   | (Thousands)                                                                   |   | 2010     |    | 2010      |   | 2009     |   |
|   |                                                                          |   |     |    |      |   |     |   |   |   |   |
|   | Fair value of asset derivatives presented above                               |   | $        | 2,565   |      | $      | 1,968    |   | $ | 1,488 |   |
|   | Fair value of cash margin receivables                                         |   |     | 33,376  |      |   | 49,580   |   |   | 54,225 |   |
|   | Netting of assets and liabilities with the same counterparty                  |   |     | (23,425 | )         |   | (40,574  | )      |   | (48,208 | ) |
|   |     Total                                                 |   | $        | 12,516  |      | $      | 10,974   |   | $ | 7,505 |   |
|   |                                                                          |   |     |    |      |   |     |   |   |   |   |
|   | Derivative Instrument Assets, per Balance Sheets:                             |   |     |    |      |   |     |   |   |   |   |
|   |   Derivative instrument assets                                      |   | $        | 10,415  |      | $      | 9,288    |   | $ | 7,505 |   |
|   |   Other deferred charges                                            |   |     | 2,101   |      |   | 1,686    |   |   | — |   |
|   |     Total                                                 |   |     | 12,516  |      |   | 10,974   |   |   | 7,505 |   |
|   |                                                                          |   |     |    |      |   |     |   |   |   |   |
|   | Fair value of liability derivatives presented above                           |   | $        | 23,425  |      | $      | 40,574   |   | $ | 48,208 |   |
|   | Netting of assets and liabilities with the same counterparty                  |   |     | (23,425 | )         |   | (40,574  | )      |   | (48,208 | ) |
|   |     Derivative instrument liabilities, per Balance Sheet* |   | $        | — |      | $      | —  |   | $ | — |   |
|   |                                                                          |   |     |    |      |   |     |   |   |   |   |
| *      | Included in the Other line of the Current Liabilities section                 |   |     |    |      |   |     |   |   |   |   |

| 6. | OTHER INCOME AND (INCOME DEDUCTIONS) – NET |
|----|--------------------------------------------------|

|   |                                             |   | Three Months Ended |   |
|--------|--------------------------------------------------|--------|--------------------|--------|
|   |                                             |   | December 31,       |   |
|   | (Thousands)                                      |   | 2010               |   | 2009 |   |
|   |                                             |   |               |   |   |   |   |   |
|   | Interest income                                  |   | $                  | 411    |   | $ | 448 |   |
|   | Net investment gain                              |   |               | 744    |   |   | 484 |   |
|   | Other income                                     |   |               | 13     |   |   | — |   |
|   | Other income deductions                          |   |               | 647    |   |   | 578 |   |
|   | Other Income and (Income Deductions) – Net |   | $                  | 1,815  |   | $ | 1,510 |   |

Table of Contents 

| 7. | INFORMATION BY OPERATING SEGMENT |
|----|----------------------------------|

Note 1

|                   |   | Regulated    |      | Non-      |   | Adjustments  |   |   |    |
|------------------------|--------|--------------|-----------|-----------|--------|--------------|--------|--------|---------|
|                   |   | Gas          |      | Regulated |   |  &  |   |   |    |
| (Thousands)            |   | Distribution |      | Other     |   | Eliminations |   | Total  |    |
|                   |   |         |      |      |   |         |   |   |    |   |   |   |   |
| Three Months Ended     |   |         |      |      |   |         |   |   |    |   |   |   |   |
| December 31, 2010 |   |         |      |      |   |         |   |   |    |   |   |   |   |
| Operating revenues     |   | $            | 277,443   |      | $      | —      |   | $      | — |   | $ | 277,443 |   |
| Net Economic Earnings  |   |         | 21,434    |      |   | —      |   |   | — |   |   | 21,434 |   |
| Total assets           |   |         | 1,734,389 |      |   | 807          |   |   | — |   |   | 1,735,196 |   |
|                   |   |         |      |      |   |         |   |   |    |   |   |   |   |
| Three Months Ended     |   |         |      |      |   |         |   |   |    |   |   |   |   |
| December 31, 2009 |   |         |      |      |   |         |   |   |    |   |   |   |   |
| Operating revenues     |   | $            | 282,929   |      | $      | 10,325       |   | $      | — |   | $ | 293,254 |   |
| Net Economic Earnings  |   |         | 17,432    |      |   | 3,683        |   |   | — |   |   | 21,115 |   |
| Total assets           |   |         | 1,662,121 |      |   | 11,627       |   |   | — |   |   | 1,673,748 |   |

| Reconciliation of Net Economic Earnings to Net Income |
|-------------------------------------------------------|
|                                                  |
|                                                  |   |   | Three Months Ended |   |
|                                                  |   |   | December 31, |   |
|                                                  | (Thousands) |   | 2010 |   | 2009 |   |
|                                                  |   |   |   |   |   |   |   |   |
|                                                  | Total Net Economic Earnings above |   | $ | 21,434 |   | $ | 21,115 |   |
|                                                  |   Add: Unrealized gain (loss) on energy-related |   |   |   |   |   |   |   |
|                                                  |     derivative contracts, net of tax |   |   | 21 |   |   | (49 | ) |
|                                                  | Net Income |   | $ | 21,455 |   | $ | 21,066 |   |

| 8. | COMMITMENTS AND CONTINGENCIES |
|----|-------------------------------|

Table of Contents 

Table of Contents 

Table of Contents 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

| • | 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 our service area;                                                                                                              |
| • | 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 

| • | 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.                                                                                                                                       |

Regulatory and Other Matters

Table of Contents 

Liquidity and Capital Resources

| • | the benefit of the general rate increase, effective September 1, 2010, totaling $7.6 million; and, |
|---------|----------------------------------------------------------------------------------------------------|
| • | decreases in operation and maintenance expense totaling $2.6 million.                              |

| • | the effect of income from a non-regulated propane transaction in the wholesale market recorded during the quarter ended December 31, 2009, totaling $6.0 million; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | lower Infrastructure System Replacement Surcharge (ISRS) revenues totaling $2.0 million; and,                                                                               |
| • | lower system gas sales volumes and other variations totaling $1.3 million.                                                                                                  |

Table of Contents 

| (Millions)                                                                                         |   |
|----------------------------------------------------------------------------------------------------|--------|
| Lower wholesale gas costs passed on to Utility customers (subject to prudence review by the MoPSC) |   | $ | (13.7 | ) |
| Higher off-system sales volumes                                                                    |   |   | 11.8 |   |
| General rate increase, effective September 1, 2010                                                 |   |   | 7.6 |   |
| Lower system sales volumes and other variations                                                    |   |   | (5.5 | ) |
| Lower prices charged for off-system sales                                                          |   |   | (3.7 | ) |
| Lower ISRS revenues                                                                                |   |   | (2.0 | ) |
| Total Variation                                                                                    |   | $ | (5.5 | ) |

REGULATORY AND OTHER MATTERS

Table of Contents 

Exhibit 99.1

|   | • | Accounts receivable and allowance for doubtful accounts |
|--------|---------|---------------------------------------------------------|
|   | • | Employee benefits and postretirement obligations        |
|   | • | Regulated operations                                    |

Exhibit 99.1

Table of Contents 

LIQUIDITY AND CAPITAL RESOURCES

Table of Contents 

|                                                      | Commercial Paper Borrowings  | Borrowings from Laclede Group | TotalShort-Term Borrowings |
|-----------------------------------------------------------|------------------------------|-------------------------------|----------------------------|
|                                                      |                         |                          |                       |
| Three Months Ended December 31, 2010                      |                         |                          |                       |
|    Weighted average borrowings outstanding | $127.8 million               | $36.6 million                 | $164.4 million             |
|    Weighted average interest rate          | 0.4%                         | 0.4%                          | 0.4%                       |
|    Range of borrowings outstanding         | $94.1 – $172.1 million | $0 - $73.0million             | $133.3 - $193.0 million    |
|                                                      |                         |                          |                       |
| As of December 31, 2010                                   |                         |                          |                       |
|    Borrowings outstanding at end of period | $97.5 million                | $68.9 million                 | $166.4 million             |
|    Weighted average interest rate          | 0.4%                         | 0.4%                          | 0.4%                       |

Item 2.

Table of Contents 

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

|                                         |   | Payments due by period |    |
|----------------------------------------------|--------|------------------------|---------|
|                                         |   |                   |    | Remaining |   |   |   |   |   | Fiscal Years |   |
|  Contractual Obligations                |   | Total                  |    | Fiscal Year2011 |   | Fiscal Years2012-2013 |   | Fiscal Years2014-2015 |   | 2016 andthereafter |   |
| Principal Payments on Long-Term Debt         |   | $                      | 365.0   |   | $ | — |   | $ | 25.0 |   | $ | — |   | $ | 340.0 |   |
| Interest Payments on Long-Term Debt          |   |                   | 475.0   |   |   | 13.9 |   |   | 45.1 |   |   | 42.7 |   |   | 373.3 |   |
| Capital Leases (a)                           |   |                   | 0.3     |   |   | 0.1 |   |   | 0.1 |   |   | 0.1 |   |   | — |   |
| Operating Leases (a)                         |   |                   | 14.6    |   |   | 3.9 |   |   | 7.4 |   |   | 3.3 |   |   | — |   |
| Purchase Obligations – Natural Gas (b) |   |                   | 347.8   |   |   | 189.5 |   |   | 124.3 |   |   | 19.7 |   |   | 14.3 |   |
| Purchase Obligations – Other (c)       |   |                   | 96.0    |   |   | 17.3 |   |   | 23.7 |   |   | 17.8 |   |   | 37.2 |   |
| Total (d)                                    |   | $                      | 1,298.7 |   | $ | 224.7 |   | $ | 225.6 |   | $ | 83.6 |   | $ | 764.8 |   |

Table of Contents 

|        (a) | Lease obligations are primarily for office space, office equipment, vehicles, and power operated equipment. 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. These amounts reflect fixed obligations as well as obligations to purchase natural gas at future market prices, calculated using December 31, 2010 New York Mercantile Exchange futures 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; 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 primarily reflect miscellaneous agreements for the purchase of materials and the procurement of services necessary for normal operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|        (d) | The category of Other Long-Term Liabilities has been excluded from the table above because there are no material amounts of contractual obligations under this category. Long-term liabilities associated with unrecognized tax benefits, totaling $6.3 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. At this writing, Laclede Gas expects to make contributions to its qualified, trusteed pension plans of at least $10.3 million during the remainder of fiscal year 2011. Laclede Gas anticipates a $1.8 million contribution relative to its non-qualified pension plans during the remainder of fiscal year 2011. With regard to the postretirement benefits, the Utility anticipates it will contribute $11.1 million to the qualified trusts and $0.3 million directly to participants from Laclede Gas’ funds during the remainder of fiscal year 2011. For further discussion of the Utility’s pension and postretirement benefit plans, refer to Note 2, Pension Plans and Other Postretirement Benefits, of the Notes to Financial Statements. |

MARKET RISK

Note 5

Table of Contents 

Exhibit 99.1
Note 8

Table of Contents 

Item 3.

Market Risk

Item 4.

Table of Contents 

PART II. OTHER INFORMATION

Item 1.

Exhibit 99.1
Note 8
Regulatory and Other Matters

Item 2.

Item 6.

| (a) | See Exhibit Index |
|-----|-------------------|

Table of Contents 

SIGNATURE

|   |   |             | Laclede Gas Company |
|--------|--------|------------------|---------------------|
|   |   |             |                |
| Dated: |   | January 28, 2011 |                | By:  | /s/ Mark D. Waltermire |
|   |   |             |                |   | Mark D. Waltermire |
|   |   |             |                |   | Senior Vice President and |
|   |   |             |                |   | Chief Financial Officer |
|   |   |             |                |   | (Authorized Signatory and Chief Financial Officer) |

Table of Contents 

INDEX TO EXHIBITS

| Exhibit No. |   |                                                                           |
|-------------|--------|--------------------------------------------------------------------------------|
|        |   |                                                                           |
| 3.1         | -      | Laclede Gas’ Restated Articles of Incorporation as amended March 1, 2010 |
|        |   |                                                                           |
| 12          | -      | Ratio of Earnings to Fixed Charges.                                            |
|        |   |                                                                           |
| 31          | -      | CEO and CFO Certifications under Exchange Act Rule 13a – 14(a).          |
|        |   |                                                                           |
| 32          | -      | CEO and CFO Section 1350 Certifications.                                       |
|        |   |                                                                           |