SPIRE ALABAMA INC
For the period ended Sep 30, 2025. Filed Nov 14, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Nov 14, 2025
SR$88.81-0.5%Stored close · as of Nov 6, 2026
What changed in Risk Factors?
Read the current filingPrevious report: 10-K
Period ended 2024-09-30; filed 2024-11-20.
0001437749-24-035823
Item 1A. Risk FactorsCurrent report: 10-K
Period ended 2025-09-30; filed 2025-11-14.
0001193125-25-282583
Item 1A. Risk FactorsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 98 previous paragraphs and 105 current paragraphs.
76 unchanged; 19 reworded; 10 added; 3 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
In March 2024, the SEC adopted the final climate disclosure rules to enhance and standardize climate-related disclosures by public companies. These rules were immediately challenged in court and were voluntarily stayed by the SEC in April 2024. In March 2025, the SEC voted to end its defense of the rules, and in September 2025, the Eighth Circuit issued an order holding the case abeyance until the SEC decides to rescind, repeal, revise, or defend the rules. Accordingly, the rules remain stayed. If the rules, or similar rules, become effective in the future, compliance could require significant additional expenditures.
Current report
perform ongoing assessments of pipeline integrity;
Current report
identify and characterize applicable threats to pipelines;
Current report
improve data collection, integration and analysis;
Current report
develop network segmentation policies and controls;
Current report
create access control measures to secure and prevent unauthorized access to critical cyber systems;
Current report
build continuous monitoring and detection policies and procedures to detect threats and correct anomalies; and
Current report
reduce the risk of exploitation of unpatched systems in a timely manner using a risk-based methodology.
Current report
On July 27, 2025, the Company entered into an agreement to acquire Piedmont Natural Gas local distribution company business in Tennessee from Duke Energy for approximately $2.48 billion, subject to regulatory approvals and customary closing conditions. This transaction involves risks, including the possibility that required approvals may not be obtained or may be delayed, that the transaction may not close on the anticipated timeline or at all, that integration may be more difficult or costly than expected, and that anticipated benefits may not be realized. We may also assume unexpected liabilities and incur significant transaction costs, and the transaction could divert management attention or disrupt ongoing operations.
Removed paragraphs (3)
Previous report
In March 2024, the SEC adopted climate disclosure rules to enhance and standardize climate-related disclosures by public companies for more consistent, comparable, and reliable information about the financial effects of climate-related risks on operations and how companies manage those risks. These rules have been stayed due to pending litigation but could become effective in the future. To the extent these rules become effective, the Company’s efforts to comply could require significant additional expenditures.
Previous report
The Company plans to continue to increase capacity, improve operating performance, and improve the integrity of its storage fields and associated above-ground facilities of Spire Storage. Construction of such assets is subject to various risks and uncertainties, including supply chain and labor disruptions, weather conditions during construction, equipment failures and construction quality issues. Any such disruptions, as well as any negative effects from the risks discussed below, could result in an impairment of Spire's investment in the project, and such impairment could have a material adverse effect on the Company's financial condition and results of operations.
Previous report
The failure to complete an acquisition successfully or to integrate acquisitions or investments it may undertake could have an adverse effect on the Spire’s financial condition and results of operations and the market’s perception of the Company’s execution of its strategy. To the extent Spire engages in any of the above activities together with or through one or more of its subsidiaries, including the Utilities, such subsidiaries may face the same risks.
Reworded paragraphs (19)
Previous wording
The Utilities’ ability to obtain and timely implement rate increases and rate supplements to maintain the current rate of return is subject to regulatory review and approval. There can be no assurance that they will be able to obtain rate increases or rate supplements or continue earning the current authorized rates of return. Spire Alabama’s and Spire Gulf’s rate setting process, Rate Stabilization and Equalization (RSE), is subject to regulation by the APSC and is implemented pursuant to APSC orders expiring September 30, 2025. RSE adjustments would continue after that date unless the APSC enters an order to the contrary in a manner consistent with the law. Spire Mississippi is subject to regulation by the MSPSC and utilizes the Rate Stabilization Adjustment (RSA) Rider. For further details, see Note 15, Regulatory Matters, of the Notes to Financial Statements in Item 8.
Current wording
The Utilities’ ability to obtain and timely implement rate increases and rate supplements to maintain the current rate of return is subject to regulatory review and approval. There can be no assurance that they will be able to obtain rate increases or rate supplements or continue earning the current authorized rates of return. The Rate Stabilization and Equalization (RSE) mechanism, which requires Spire Alabama and Spire Gulf to file an annual rate review based on the utility’s budget for the upcoming fiscal year, was last renewed in 2022, and absent a Commission order modifying Spire Alabama’s tariff, the existing RSE terms shall continue in effect beyond September 30, 2025. Spire Mississippi is subject to regulation by the MSPSC and utilizes the Rate Stabilization Adjustment ("RSA") Rider. For further details, see Note 15, Regulatory Matters, of the Notes to Financial Statements in Item 8.
Previous wording
The PHMSA amendment to the Protecting Our Infrastructure of Pipelines and Enhancing Safety (PIPES) Act of 2020 is anticipated to go into effect in 2028. This would, among other things, increase the frequency of leak detection surveys, promote advanced leak detection programs, and require accelerated repair of leaks found.
Current wording
The PHMSA advisory bulletin to the Protecting Our Infrastructure of Pipelines and Enhancing Safety (PIPES) Act of 2020 was rescinded June 13, 2025. This would have, among other things, required the evaluation of steps taken to prevent and mitigate unintentional and intentional emissions from natural gas releases, e.g. increased the frequency of leak detection surveys, promoted advanced leak detection programs, and required accelerated repair of leaks found. Additionally, it would have required operators to have written O&M plans to address not only public safety, but also the protection of the environment. At this time, it is indeterminable if or when such regulation might go into effect. Nonetheless, the company will continue to implement Advanced Mobile Leak Detection in its service territories over the next three years.
Previous wording
The Company has significantly reduced its current federal and state income tax obligations over the past few years through tax planning strategies and application of tax rules which included the use of bonus depreciation deductions for certain expenditures for property. As a result, the Company generated large annual taxable losses that have resulted in significant federal and state net operating losses. The Company plans to utilize these net operating losses in the future. The value of these net operating losses could be reduced if the Company cannot generate enough taxable income in the future to utilize all of the net operating losses generated prior to the Tax Cuts and Jobs Act of 2017 (TCJA) before they expire due to income tax policy changes, lower-than-expected financial performance and/or regulatory actions. The major provisions of the TCJA will expire on December 31, 2025, unless Congress extends them.
Current wording
The Company has significantly reduced its current federal and state income tax obligations over the past few years through tax planning strategies and application of tax rules, including the use of bonus depreciation deductions for certain property expenditures. As a result, the Company generated large annual taxable losses that have resulted in significant federal and state net operating losses ("NOLs"). The Company plans to utilize these NOLs in the future. The value of these NOLs could be reduced if the Company cannot generate sufficient taxable income to utilize all of the NOLs before they expire, or if changes in income tax policy, lower-than-expected financial performance, or regulatory actions occur.
Previous wording
Changes to income tax policy, laws and regulations, including but not limited to changes in tax rates, could adversely impact the Company. Those impacts could include reducing the value of its net operating losses and could result in material charges to earnings. Further, the Company’s financial condition and results of operations may be adversely impacted.
Current wording
On July 4, 2025, U.S. tax legislation known as the One Big Beautiful Bill Act ("OBBBA") was enacted, which made permanent many provisions of the Tax Cuts and Jobs Act of 2017 and introduced additional changes to U.S. corporate tax rules, some of which become effective in 2026. While OBBBA is not expected to have a material impact to our financial condition or results of operations, future legislative changes, including potential modifications to OBBBA or other tax reforms, could adversely impact the Company. These impacts could include reducing the value of its NOLs and could result in material charges to earnings. Further, the Company’s financial condition and results of operations may be adversely impacted.
Previous wording
The Company’sability to meetits** customers**’** natural gas requirements may be impaired if contracted gas supplies, interstate pipeline and/or storage****services are not available or delivered in a timely manner.**
Current wording
The Company’s ability to meet its customers’ natural gas requirements may be impaired if contracted gas supplies, interstate pipeline and/or storage services are not available or delivered in a timely manner.
Previous wording
Transporting, distributing, and storing natural gas and propane involves numerous risks that may result in accidents and other operating risks.
Current wording
Transporting, distributing, and storing natural gas and propane involves numerous risks that may result in accidents and other operational issues.
Previous wording
Because of competition, the Company may not be able to retain existing customers or acquire new customers, or may be unsuccessful in retaining or acquiring contractual assets on favorable terms, which could have an adverse impact onits business, results of operations and financial condition.
Current wording
Because of competition, the Company may not be able to retain existing customers or acquire new customers, or may be unsuccessful in retaining or acquiring contractual assets on favorable terms, which could have an adverse impact on its business, results of operations and financial condition.
Previous wording
Spire Storage is subject to competition from similar services provided by pipelines and from competing independent storage providers capable of serving its customers. Natural gas storage is a competitive business, with competitors having the ability to expand storage capacity. Increased competition in the natural gas storage business could reduce the demand and drive rates down for the Company’s natural gas storage services.
Current wording
Spire Storage is subject to competition from similar services provided by pipelines and from competing independent storage providers capable of serving its customers. Natural gas storage is a competitive business, with competitors having the ability to expand storage capacity. Increased competition in the natural gas storage business could reduce the demand and drive rates down for the Company’s natural gas storage services. To a lesser extent, competition and the price differences between natural gas hubs can also impact the volumes and rates of our interstate pipelines.
Previous wording
Although the Company has, when possible, developed alternative sources of technology and built redundancy into its computer networks and tools, there can be no assurance these efforts to date would protect against all potential issues related to the loss of any such technologies or the Company’s use of such technologies. While the Company assesses the cyber protection of its vendors, the Company’s use of an outside party presents a cyber exposure that must also be carefully managed.
Current wording
Although the Company has, when possible, developed alternative sources of technology and built redundancy into its computer networks and tools, there can be no assurance these efforts to date would protect against all potential issues related to the loss of any such technologies or the Company’s use of such technologies. While the Company assesses the cyber protection of its vendors, the Company’s use of an outside party presents cyber exposure that must also be carefully managed.
Previous wording
The Company acknowledges increased dependence on technology increases its exposure to cyberattack. The Company closely monitors both preventive and detective measures to manage these risks and maintain cyber risk insurance to mitigate a significant portion, but not all, of these risks and losses. To the extent that the occurrence of any of these cyber events is self-insured or not covered by insurance, it could adversely affect the Company’s financial condition and results of operations. On July 26, 2023, the SEC adopted its final rule on Cybersecurity Risk Management, Strategy, Governance and Incident Disclosure to provide investors information on how public companies manage their cyber risks (see Item 1C) and to require timely disclosure of material cyber events, which increases compliance risk.
Current wording
The Company acknowledges increased dependence on technology increases its exposure to cyberattack. The Company closely monitors both preventive and detective measures to manage these risks and maintain cyber risk insurance to mitigate a significant portion, but not all, of these risks and losses. To the extent that the occurrence of any of these cyber events is self-insured or not covered by insurance, it could adversely affect the Company’s financial condition and results of operations. In the event of a material cyber event, the Company is required to inform investors and to publicly disclose the nature of such an event to comply with SEC rules and regulations.
Previous wording
The Company’s business activities are concentrated ina fewstates** and regions****.**
Current wording
The Company’s business activities are concentrated in a few states and regions.
Previous wording
The Utilities provide natural gas distribution services to customers in Alabama, Mississippi, and Missouri. Midstream is focused on the Rocky Mountain/Western and Midcontinent regions. Changes in the regional economies, politics, regulations and weather patterns of these states could negatively impact growth opportunities and the usage patterns and financial condition of customers and could adversely affect earnings, cash flows, and financial position.
Current wording
The Utilities provide natural gas distribution services to customers in Alabama, Mississippi, and Missouri. On July 27, 2025 the Company entered into an agreement to purchase the Tennessee natural gas local distribution company business of Piedmont Natural Gas Company, Inc. ("Piedmont Natural Gas") from Duke Energy Corporation ("Duke Energy"). Midstream is focused on the Rocky Mountain/Western and Midcontinent regions. Changes in the regional economies, politics, regulations and weather patterns of these states could negatively impact growth opportunities and the usage patterns and financial condition of customers and could adversely affect earnings, cash flows, and financial position.
Previous wording
Currently, Spire, Spire Missouri, and Spire Alabama have investment-grade credit ratings. There is no assurance such credit ratings for any of these companies will remain in effect for any given period of time or such ratings will not be lowered, suspended or withdrawn entirely by the rating agencies, if, in each rating agency’s judgment, circumstances so warrant. Spire has a working capital line of credit to meet its short-term liquidity needs. Spire’s line of credit may be used to meet the liquidity needs of any of its subsidiaries, subject to sublimits. If the rating agencies lowered the credit rating at any of these entities, particularly below investment grade, it might significantly limit that entity’s ability to secure new or additional credit facilities and would increase its costs of borrowing. Spire’s and the Utilities’ ability to borrow under current or new credit facilities and costs of that borrowing have a direct impact on their ability to execute their operating strategies.
Current wording
Currently, Spire, Spire Missouri, and Spire Alabama have investment-grade credit ratings. There is no assurance such credit ratings for any of these companies will remain in effect for any given period or such ratings will not be lowered, suspended or withdrawn entirely by the rating agencies, if, in each rating agency’s judgment, circumstances so warrant. Spire has a working capital line of credit to meet its short-term liquidity needs. Spire’s line of credit may be used to meet the liquidity needs of any of its subsidiaries, subject to sublimits. If the rating agencies lowered the credit rating at any of these entities, particularly below investment grade, it might significantly limit that entity’s ability to secure new or additional credit facilities and would increase its costs of borrowing. Spire’s and the Utilities’ ability to borrow under current or new credit facilities and costs of that borrowing have a direct impact on their ability to execute their operating strategies.
Previous wording
The tariff rate schedules of Spire Missouri, Spire Gulf and Spire Mississippi contain Purchased Gas Adjustment (PGA) clauses and Spire Alabama’s tariff rate schedule contains a Gas Supply Adjustment (GSA) rider that permit the Utilities to file for rate adjustments to recover the cost of purchased gas. Changes in the cost of purchased gas are flowed through to customers and may affect uncollectible amounts and cash flows and can therefore impact the amount of capital resources.
Current wording
The tariff rate schedules of Spire Missouri, Spire Gulf and Spire Mississippi contain PGA clauses and Spire Alabama’s tariff rate schedule contains a GSA rider that permit the Utilities to file for rate adjustments to recover the cost of purchased gas. Changes in the cost of purchased gas are flowed through to customers and may affect uncollectible amounts and cash flows and can therefore impact the amount of capital resources.
Previous wording
The MoPSC typically approves the Spire Missouri PGA changes on an interim basis, subject to refund and the outcome of a subsequent audit and prudence review. Due to such review process, there is a risk of a disallowance of full recovery of these costs. Any material disallowance of purchased gas costs would adversely affect results of operations. The Alabama Utilities’ gas supply charges are submitted for APSC review on a monthly basis, regardless of whether there is a request for a change, so prudence review occurs on an ongoing basis. Spire Mississippi’s PGA is adjusted on a monthly basis for the most recent charges and is filed at the MSPSC on a monthly basis.
Current wording
The MoPSC typically approves the Spire Missouri PGA changes on an interim basis, subject to refund and the outcome of a subsequent audit and prudence review. Due to such review process, there is a risk of a disallowance of full recovery of these costs. Any material disallowance of purchased gas costs would adversely affect results of operations. The Alabama Utilities’ gas supply charges are submitted for APSC review monthly, regardless of whether there is a request for a change, so prudence review occurs on an ongoing basis. Spire Mississippi’s PGA is adjusted monthly for the most recent charges and is filed at the MSPSC monthly.
Previous wording
Spire and its subsidiaries have pension and other postretirement benefit plans that provide benefits to many of their employees and retirees. Costs of providing benefits and related funding requirements of these plans are subject to changes in the market value of the assets that fund the plans. The funded status of the plans and the related costs reflected in the Company’s financial statements are affected by various factors, which are subject to an inherent degree of uncertainty, including economic conditions, financial market performance, interest rates, life expectancies and demographics. Recessions and volatility in the domestic and international financial markets have negatively affected the asset values of the Company’s pension plans at various times in the past. Poor investment returns or lower interest rates may necessitate accelerated funding of the plans to meet minimum federal government requirements, which could have an adverse impact on the Company’s financial condition and results of operations. For more information, including regulatory provisions affecting the Utilities’ plans, see Note 13, Pension Plans and Other Postretirement Benefits, of the Notes to Financial Statements in Item 8.
Current wording
Spire and its subsidiaries have pensions and other postretirement benefit plans that provide benefits to many of their employees and retirees. Costs of providing benefits and related funding requirements of these plans are subject to changes in the market value of the assets that fund the plans. The funded status of the plans and the related costs reflected in the Company’s financial statements are affected by various factors, which are subject to an inherent degree of uncertainty, including economic conditions, financial market performance, interest rates, life expectancies and demographics. Recessions and volatility in the domestic and international financial markets have negatively affected the asset values of the Company’s pension plans at various times in the past. Poor investment returns or lower interest rates may necessitate accelerated funding of the plans to meet minimum federal government requirements, which could have an adverse impact on the Company’s financial condition and results of operations. For more information, including regulatory provisions affecting the Utilities’ plans, see Note 13, Pension Plans and Other Postretirement Benefits, of the Notes to Financial Statements in Item 8.
Previous wording
Resources expended to pursue or integrate business acquisitions, investments or other business arrangements may adversely affect Spire’s financial position and results of operations and return on investments made may not meet the Company’s expectations.
Current wording
Resources expended to pursue or integrate business acquisitions, investments, or other business arrangements may adversely affect Spire’s financial position and results of operations, and the return on such investments may not meet the Company’s expectations.
Previous wording
From time to time, Spire may seek to grow through strategic acquisitions, investments or other business arrangements. Attractive acquisition and investment opportunities may be difficult to complete on economically acceptable terms. It is possible for Spire to expend considerable resources pursuing acquisitions and investments that for a variety of reasons do not move forward. Similarly, investment opportunities may be hindered or halted by regulatory or legal actions. To the extent acquisitions or investments are made, such transactions involve a number of risks, including but not limited to, the assumption of material liabilities, the diversion of management’s attention from daily operations, difficulties in assimilation and retention of employees, securing adequate capital to support the transaction, and obtaining regulatory approval. Uncertainties exist in assessing the value, risks, profitability, and liabilities associated with certain businesses or assets and there is a possibility that anticipated operating and financial efficiencies expected to result from an acquisition or investment do not develop. Additionally, there are no assurances resources expended will achieve their intended result.
Current wording
From time to time, Spire may seek to grow through strategic acquisitions, investments, or other business arrangements. Attractive opportunities may be difficult to complete on economically acceptable terms. Spire may expend considerable resources pursuing acquisitions or investments that, for various reasons, do not move forward. Similarly, investment opportunities may be hindered or halted by regulatory or legal actions. When acquisitions or investments are completed, these transactions involve a number of risks, including, but not limited to, the assumption of material liabilities, the diversion of management’s attention from daily operations, difficulties in assimilating and retaining employees, challenges in integrating information technology systems, securing adequate capital to support the transaction, the potential impact on credit ratings, and obtaining necessary regulatory approvals. Uncertainties also exist in assessing the value, risks, profitability, and liabilities associated with certain businesses or assets. There is a possibility that anticipated operating and financial efficiencies expected from an acquisition or investment may not materialize. Additionally, there are no assurances that resources expended will achieve their intended results. Failure to successfully complete or integrate an acquisition or investment could adversely affect Spire’s financial condition, results of operations, and the market’s perception of the Company’s ability to execute its strategy. Subsidiaries, including the Utilities, may face similar risks when engaging in these activities.
Previous wording
Spire and its subsidiaries are subject to changes in U.S. generally accepted accounting principles (GAAP), SEC regulations and other interpretations of financial reporting requirements for public utilities. Neither the Company nor any of its subsidiaries have any control over the impact these changes may have on their financial condition or results of operations nor the timing of such changes. The potential issues associated with rate-regulated accounting, along with other potential changes to GAAP that the U.S. Financial Accounting Standards Board (FASB) continues to consider may be significant.
Current wording
Spire and its subsidiaries are subject to changes in U.S. generally accepted accounting principles (“GAAP”), SEC regulations, and other interpretations of financial reporting requirements for public utilities. The Company and its subsidiaries have no control over the timing or impact of these changes on their financial condition or results of operations. Potential issues related to rate-regulated accounting, along with other changes under consideration, could be significant.