Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Nov. 20, 2015 | Mar. 31, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | NEW JERSEY RESOURCES CORP | ||
Entity Central Index Key | 356,309 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,609,925,396 | ||
Entity Common Stock, Shares Outstanding | 85,796,206 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
OPERATING REVENUES | ||||
Utility | $ 781,970 | $ 819,415 | $ 787,987 | |
Nonutility | 1,952,017 | 2,918,730 | 2,410,081 | |
Total operating revenues | 2,733,987 | 3,738,145 | 3,198,068 | |
Gas purchases: | ||||
Utility | 304,953 | 319,897 | 400,307 | |
Nonutility | 1,767,841 | 2,807,008 | 2,299,974 | |
Related parties | 12,851 | 12,620 | 11,942 | |
Operation and maintenance | 209,453 | 215,180 | 173,473 | |
Regulatory rider expenses | 75,779 | 72,164 | 48,417 | |
Depreciation and amortization | 61,399 | 52,742 | 47,310 | |
Energy and other taxes | 53,260 | 57,344 | 57,414 | |
Total operating expenses | 2,485,536 | 3,536,955 | 3,038,837 | |
OPERATING INCOME | 248,451 | 201,190 | 159,231 | |
Other income, net | 6,545 | 7,551 | 4,783 | |
Interest expense, net of capitalized interest | 27,721 | 25,463 | 23,979 | |
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES | 227,275 | 183,278 | 140,035 | |
Income tax provision | 59,724 | 51,840 | 35,575 | |
Equity in earnings of affiliates | 13,409 | 10,532 | 10,349 | |
NET INCOME | $ 180,960 | $ 141,970 | $ 114,809 | |
EARNINGS PER COMMON SHARE | ||||
Basic (in usd per share) | $ 2.12 | $ 1.69 | $ 1.38 | |
Diluted (in usd per share) | [1] | 2.10 | 1.67 | 1.37 |
DIVIDENDS DECLARED PER COMMON SHARE (in usd per share) | $ 0.915 | $ 0.855 | $ 0.81 | |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||
Basic (in shares) | 85,186 | 84,198 | 83,316 | |
Diluted (in shares) | 86,265 | 84,922 | 83,628 | |
[1] | There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2015, 2014 and 2013. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 180,960 | $ 141,970 | $ 114,809 | |
Other comprehensive income, net of tax | ||||
Unrealized gain (loss) on available for sale securities, net of tax of $(1,135), $426 and $(330), respectively | [1] | 1,603 | (618) | 479 |
Net unrealized gain (loss) on derivatives, net of tax of $(56), $61 and $23, respectively | 93 | (105) | (39) | |
Adjustment to postemployment benefit obligation, net of tax of $3,688, $2,162 and $(5,934), respectively | (5,496) | (3,250) | 8,710 | |
Other comprehensive (loss) income | (3,800) | (3,973) | 9,150 | |
Comprehensive income | $ 177,160 | $ 137,997 | $ 123,959 | |
[1] | Available for sale securities are included in other noncurrent assets on the Consolidated Balance Sheets. |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Tax on unrealized gain (loss) on available for sale securities | $ (1,135) | $ 426 | $ (330) |
Tax on net unrealized gain (loss) on derivatives | (56) | 61 | 23 |
Tax on adjustment to postemployment benefit obligation | $ 3,688 | $ 2,162 | $ (5,934) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 180,960 | $ 141,970 | $ 114,809 |
Adjustments to reconcile net income to cash flows from operating activities | |||
Unrealized (gain) loss on derivative instruments | (38,681) | 28,534 | (9,417) |
Depreciation and amortization | 61,399 | 52,742 | 47,310 |
Impairment loss on investment | 0 | 6,351 | 0 |
Allowance for equity used during construction | (3,825) | (1,562) | (2,037) |
Allowance for bad debt expense | 2,859 | 2,504 | 2,627 |
Deferred income taxes | 45,934 | 18,421 | 41,075 |
Manufactured gas plant remediation costs | (6,805) | (4,396) | (6,166) |
Equity in earnings of equity investees, net of distributions received | 6,663 | 2,589 | 3,299 |
Cost of removal - asset retirement obligations | (1,034) | (1,153) | (1,697) |
Contributions to postemployment benefit plans | (5,778) | (4,953) | (26,028) |
Changes in: | |||
Components of working capital | 81,817 | 85,480 | (60,316) |
Other noncurrent assets | 38,716 | 10,484 | 9,496 |
Other noncurrent liabilities | 25,695 | 19,775 | 1,039 |
Cash flows from operating activities | 387,920 | 356,786 | 113,994 |
CASH FLOWS (USED IN) INVESTING ACTIVITIES | |||
Expenditures for Utility plant | (140,797) | (128,254) | (110,482) |
Expenditures for Solar and wind equipment | (151,002) | (135,543) | (59,125) |
Expenditures for Real estate properties and other | (209) | (1,179) | (1,042) |
Expenditures for Cost of removal | (28,078) | (24,312) | (26,601) |
Investments in equity investees | (5,780) | (555) | 0 |
Distribution from equity investees in excess of equity in earnings | 2,620 | 1,150 | 3,079 |
(Payment to) withdrawal from restricted cash construction fund | (1,499) | 88 | 56 |
Proceeds from sale of investment | 3,016 | 0 | 0 |
Proceeds from sale of property | 0 | 6,010 | 0 |
Proceeds from sale of available for sale securities | 0 | 0 | 482 |
Cash flows (used in) investing activities | (321,729) | (282,595) | (193,633) |
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES | |||
Proceeds from issuance of common stock | 37,299 | 15,373 | 37,839 |
Tax benefit from stock options exercised | 881 | 414 | 173 |
Proceeds from sale-leaseback transaction | 7,216 | 7,576 | 7,076 |
Proceeds from long-term debt | 250,000 | 125,000 | 50,000 |
Payments of long-term debt | (37,039) | (82,586) | (8,953) |
Purchases of treasury stock | (10,589) | (5,522) | (26,606) |
Payments of common stock dividends | (76,532) | (70,664) | (67,230) |
Net (payments of) proceeds from short-term debt | (234,650) | (64,600) | 85,800 |
Cash flows (used in) from financing activities | (63,414) | (75,009) | 78,099 |
Change in cash and cash equivalents | 2,777 | (818) | (1,540) |
Cash and cash equivalents at beginning of period | 2,151 | 2,969 | 4,509 |
Cash and cash equivalents at end of period | 4,928 | 2,151 | 2,969 |
CHANGES IN COMPONENTS OF WORKING CAPITAL | |||
Receivables | 32,529 | 48,032 | (72,244) |
Inventories | 114,638 | 43,130 | (55,755) |
Recovery of gas costs | 18,979 | 13,015 | 6,100 |
Gas purchases payable | (54,525) | (47,528) | 72,415 |
Gas purchases payable - related parties | 202 | 14 | (16) |
Prepaid and accrued taxes | (18,161) | 21,133 | (8,182) |
Accounts payable and other | (14,714) | 34,716 | 726 |
Restricted broker margin accounts | 18,452 | (20,758) | 15,348 |
Customers' credit balances and deposits | (1,545) | (2,058) | (24,059) |
Other current assets | (14,038) | (4,216) | 5,351 |
Components of working capital | 81,817 | 85,480 | (60,316) |
Cash paid for: | |||
Interest (net of amounts capitalized) | 24,208 | 22,458 | 20,414 |
Income taxes | 28,790 | 22,447 | 12,039 |
Accrued capital expenditures | 28,676 | 9,655 | (7,103) |
Deferred gain on non-cash exchange of investments | $ 24,601 | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
PROPERTY, PLANT AND EQUIPMENT | ||
Utility plant, at cost | $ 1,908,024 | $ 1,791,009 |
Utility plant, at cost, Construction work in progress | 155,553 | 139,624 |
Solar and wind equipment, real estate properties and other, at cost | 481,003 | 347,285 |
Solar and wind equipment, real estate properties and other, at cost, Construction work in progress | 77,705 | 55,625 |
Total property, plant and equipment | 2,622,285 | 2,333,543 |
Accumulated depreciation and amortization, utility plant | (437,097) | (409,135) |
Accumulated depreciation and amortization, solar and wind equipment, real estate properties and other | (56,927) | (40,298) |
Property, plant and equipment, net | 2,128,261 | 1,884,110 |
CURRENT ASSETS | ||
Cash and cash equivalents | 4,928 | 2,151 |
Customer accounts receivable | ||
Billed | 155,273 | 189,970 |
Unbilled revenues | 6,372 | 7,231 |
Allowance for doubtful accounts | (5,189) | (5,357) |
Regulatory assets | 24,258 | 26,862 |
Gas in storage, at average cost | 163,905 | 277,516 |
Materials and supplies, at average cost | 7,138 | 8,165 |
Prepaid and accrued taxes | 36,810 | 22,269 |
Derivatives, at fair value | 40,743 | 64,223 |
Restricted broker margin accounts | 12,990 | 27,339 |
Deferred taxes | 56,296 | 36,451 |
Other current assets | 40,987 | 25,911 |
Total current assets | 544,511 | 682,731 |
NONCURRENT ASSETS | ||
Investments in equity investees | 132,002 | 153,010 |
Regulatory assets | 410,155 | 377,575 |
Derivatives, at fair value | 4,334 | 5,654 |
Available for sale securities | 59,475 | 10,672 |
Other noncurrent assets | 60,300 | 45,052 |
Total noncurrent assets | 666,266 | 591,963 |
Total assets | 3,339,038 | 3,158,804 |
CAPITALIZATION | ||
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding 2015 — 85,531,423; 2014 — 84,356,310 | 220,838 | 218,223 |
Premium on common stock | 209,931 | 199,739 |
Accumulated other comprehensive (loss), net of tax | (9,394) | (5,594) |
Treasury stock at cost and other; shares 2015 — 2,804,847; 2014 — 2,932,775 | (92,164) | (121,031) |
Retained earnings | 777,745 | 674,829 |
Common stock equity | 1,106,956 | 966,166 |
Long-term debt | 843,595 | 598,209 |
Total capitalization | 1,950,551 | 1,564,375 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 11,138 | 34,505 |
Short-term debt | 66,350 | 301,000 |
Gas purchases payable | 151,375 | 205,901 |
Gas purchases payable to related parties | 1,601 | 1,398 |
Accounts payable and other | 99,651 | 104,005 |
Dividends payable | 20,528 | 19,001 |
Deferred and accrued taxes | 1,326 | 2,721 |
Regulatory liabilities | 12,154 | 6,072 |
New Jersey clean energy program | 14,293 | 14,285 |
Derivatives, at fair value | 32,791 | 79,863 |
Restricted broker margin accounts | 4,103 | 0 |
Customers' credit balances and deposits | 20,790 | 22,335 |
Total current liabilities | 436,100 | 791,086 |
NONCURRENT LIABILITIES | ||
Deferred income taxes | 499,616 | 423,213 |
Deferred investment tax credits | 4,940 | 5,262 |
Deferred revenue and gains | 29,334 | 4,042 |
Derivatives, at fair value | 5,529 | 6,690 |
Manufactured gas plant remediation | 180,400 | 177,000 |
Postemployment employee benefit liability | 137,414 | 86,674 |
Regulatory liabilities | 67,533 | 61,326 |
Asset retirement obligation | 19,145 | 30,495 |
Other noncurrent liabilities | 8,476 | 8,641 |
Total noncurrent liabilities | $ 952,387 | $ 803,343 |
Commitments and contingent liabilities (Note 13) | ||
Total capitalization and liabilities | $ 3,339,038 | $ 3,158,804 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2015 | Sep. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 2.50 | $ 2.5 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares outstanding | 85,531,423 | 84,356,310 |
Treasury stock at cost and other, shares | 2,804,847 | 2,932,775 |
CONSOLIDATED STATEMENTS OF COMM
CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Premium on Common Stock [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Stock and Other [Member] | Retained Earnings [Member] |
Beginning Balance (shares) at Sep. 30, 2012 | 83,239,000 | |||||
Beginning Balance at Sep. 30, 2012 | $ 813,865 | $ 214,581 | $ 168,941 | $ (10,771) | $ (116,551) | $ 557,665 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 114,809 | 114,809 | ||||
Other comprehensive (loss) income | 9,150 | 9,150 | ||||
Common stock issued under stock plans (shares) | 1,916,000 | |||||
Common stock issued under stock plans | 39,996 | $ 3,214 | 23,848 | 12,934 | ||
Tax benefits from stock plans | 2,175 | 2,175 | ||||
Cash dividend declared | (67,590) | (67,590) | ||||
Treasury stock and other (shares) | (1,232,000) | |||||
Treasury stock and other | (25,021) | (25,021) | ||||
Ending Balance (shares) at Sep. 30, 2013 | 83,923,000 | |||||
Ending Balance at Sep. 30, 2013 | 887,384 | $ 217,795 | 194,964 | (1,621) | (128,638) | 604,884 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 141,970 | 141,970 | ||||
Other comprehensive (loss) income | (3,973) | (3,973) | ||||
Common stock issued under stock plans (shares) | 762,000 | |||||
Common stock issued under stock plans | 17,437 | $ 428 | 4,959 | 12,050 | ||
Tax benefits from stock plans | (184) | (184) | ||||
Cash dividend declared | (72,025) | (72,025) | ||||
Treasury stock and other (shares) | (329,000) | |||||
Treasury stock and other | $ (4,443) | (4,443) | ||||
Ending Balance (shares) at Sep. 30, 2014 | 84,356,310 | 84,356,000 | ||||
Ending Balance at Sep. 30, 2014 | $ 966,166 | $ 218,223 | 199,739 | (5,594) | (121,031) | 674,829 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 180,960 | 180,960 | ||||
Other comprehensive (loss) income | (3,800) | (3,800) | ||||
Common stock issued under stock plans (shares) | 1,508,000 | |||||
Common stock issued under stock plans | 33,247 | $ 2,615 | 11,536 | 19,096 | ||
Tax benefits from stock plans | (1,344) | (1,344) | ||||
Cash dividend declared | (78,044) | (78,044) | ||||
Treasury stock and other (shares) | (333,000) | |||||
Treasury stock and other | $ 9,771 | 9,771 | ||||
Ending Balance (shares) at Sep. 30, 2015 | 85,531,423 | 85,531,000 | ||||
Ending Balance at Sep. 30, 2015 | $ 1,106,956 | $ 220,838 | $ 209,931 | $ (9,394) | $ (92,164) | $ 777,745 |
CONSOLIDATED STATEMENTS OF COM9
CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared per share (in usd per share) | $ 0.915 | $ 0.855 | $ 0.81 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 12 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF THE BUSINESS | NATURE OF THE BUSINESS New Jersey Resources Corporation provides regulated gas distribution services and operates certain unregulated businesses primarily through the following subsidiaries: New Jersey Natural Gas Company provides natural gas utility service to approximately 512,300 retail customers in central and northern New Jersey and is subject to rate regulation by the BPU. NJNG comprises the Natural Gas Distribution segment. NJR Energy Services Company comprises the Energy Services segment that maintains and transacts around a portfolio of natural gas storage and transportation capacity contracts and provides physical wholesale energy and energy management services. NJR Clean Energy Ventures Corporation, the Company's distributed power subsidiary, comprises the Clean Energy Ventures segment and consists of the Company's capital investments in distributed power projects, including commercial and residential solar projects and onshore wind investments. NJR Midstream Holdings Corporation invests in energy-related ventures through its subsidiaries, NJR Steckman Ridge Storage Company, which holds the Company's 50 percent combined interest in Steckman Ridge, and NJR Pipeline Company, which holds the Company's 20 percent ownership interest in PennEast. During fiscal 2015 and 2014, NJR Midstream Holdings Corporation, through its subsidiary, NJNR Pipeline Company, also held the Company's 5.53 percent ownership interest in Iroquois Gas Transmission L.P. On September 29, 2015 , NJNR Pipeline Company exchanged its ownership interest in Iroquois to Dominion Midstream Partners, L.P. for approximately 1.84 million DM Common Units. Steckman Ridge, PennEast and DM comprise the Midstream segment. See Note 6 . Investment in Equity Investees for more information. NJR Retail Holdings Corporation has two principal subsidiaries, NJR Home Services Company and Commercial Realty & Resources Corporation. Retail Holdings and NJR Energy Corporation are included in Home Services and Other operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Other financial investments or contractual interests that lack the characteristics of a voting interest entity, which are commonly referred to as variable interest entities, are evaluated by NJR to determine if it has the power to direct business activities and, therefore, would be considered a controlling interest that NJR would have to consolidate. Based on those evaluations, NJR has determined that it does not have any investments in variable interest entities as of September 30, 2015 , 2014 and 2013 . Investments in entities over which the Company does not have a controlling financial interest are either accounted for under the equity method or cost method of accounting. Regulatory Assets & Liabilities Under cost-based regulation, regulated utility enterprises generally are permitted to recover their operating expenses and earn a reasonable rate of return on their utility investment. NJNG maintains its accounts in accordance with the FERC Uniform System of Accounts as prescribed by the BPU and in accordance with the Regulated Operations Topic of the FASB ASC. As a result of the impact of the ratemaking process and regulatory actions of the BPU, NJNG is required to recognize the economic effects of rate regulation. Accordingly, NJNG capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 3 . Regulation, for a more detailed description of NJNG's regulatory assets and liabilities. Gas in Storage Gas in storage is reflected at average cost on the Consolidated Balance Sheets, and represents natural gas and LNG that will be utilized in the ordinary course of business. The following table summarizes gas in storage, at average cost by company, as of September 30 : 2015 2014 ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf NJRES $ 93,696 44.6 $ 191,250 56.5 NJNG 70,209 21.4 86,266 21.3 Total $ 163,905 66.0 $ 277,516 77.8 Demand Fees For the purpose of securing adequate storage and pipeline capacity, NJRES and NJNG enter into storage and pipeline capacity contracts, which require the payment of certain demand charges to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one to 10 years. Demand charges are based on established rates as regulated by FERC. These demand charges represent commitments to pay storage providers or pipeline companies for the right to store and transport natural gas utilizing their respective assets. The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30: (Millions) 2015 2014 2013 NJRES $ 130.6 $ 122.0 $ 123.0 NJNG 80.5 92.0 92.1 Total $ 211.1 $ 214.0 $ 215.1 NJRES expenses demand charges ratably over the term of the contract. NJNG's costs associated with demand charges are included in its weighted average cost of gas. The demand charges are expensed based on NJNG's BGSS sales and recovered as part of its gas commodity component of its BGSS tariff. Derivative Instruments NJR accounts for its financial instruments, such as futures, options, foreign exchange contracts, interest rate contracts, as well as its physical commodity contracts related to the purchase and sale of natural gas at NJRES, as derivatives, and therefore recognizes them at fair value on the Consolidated Balance Sheets. NJR's unregulated subsidiaries record changes in the fair value of their financial commodity derivatives in gas purchases and changes in the fair value of their physical forward contracts in gas purchases or operating revenues, as appropriate, on the Consolidated Statements of Operations. NJRES designates its foreign exchange contracts as cash flow hedges of Canadian dollar denominated gas purchases. Changes in the fair value of the effective portion of these hedges are recorded to OCI, a component of stockholders' equity, and reclassified to gas purchases on the Consolidated Statements of Operations when they settle. Ineffective portions of the cash flow hedges are recognized immediately in earnings. NJR did not have derivatives designated as fair value hedges during fiscal 2014 and 2015 . The Derivatives and Hedging Topic of the ASC also provides for a NPNS scope exception for qualifying physical commodity contracts that are intended for purchases and sales during the normal course of business and for which physical delivery is probable. NJR applies this normal scope exception to physical commodity contracts at NJNG and forward SREC contracts at NJRCEV, and therefore does not record changes in the fair value of these contracts until the contract settles and the related underlying natural gas or SREC is delivered. Gains and/or losses on NJNG's derivatives used to economically hedge its regulated natural gas supply obligations, as well as its exposure to interest rate variability, are recoverable through its BGSS, a component of its tariff. Accordingly, the offset to the change in fair value of these derivatives is recorded as a regulatory asset or liability on the Consolidated Balance Sheets. See Note 4. Derivative Instruments for additional details regarding natural gas trading and hedging activities. Fair values of exchange-traded instruments, including futures, swaps, and certain options, are based on unadjusted, quoted prices in active markets. NJR’s non-exchange-traded financial instruments, foreign currency derivatives, over-the-counter physical commodity contracts at NJRES, and NJNG’s Treasury Lock agreement are valued using observable, quoted prices for similar or identical assets when available. In establishing the fair value of contracts for which a quoted basis price is not available at the measurement date, management utilizes available market data and pricing models to estimate fair values. Fair values are subject to change in the near term and reflect management's best estimate based on a variety of factors. Estimating fair values of instruments that do not have quoted market prices requires management's judgment in determining amounts that could reasonably be expected to be received from, or paid to, a third party in settlement of the instruments. These amounts could be materially different from amounts that might be realized in an actual sale transaction. Revenues Revenues from the sale of natural gas to NJNG customers are recognized in the period that gas is delivered and consumed by customers, including an estimate for unbilled revenue. NJNG records unbilled revenue for natural gas services. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and NJNG recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for gas and the most current tariff rates. Revenues for NJRES are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur, as noted above. Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. Gas Purchases NJNG's tariff includes a component for BGSS, which is designed to allow NJNG to recover the cost of natural gas through rates charged to its customers and is typically revised on an annual basis. As part of computing its BGSS rate, NJNG projects its cost of natural gas, net of supplier refunds, the impact of hedging activities and credits from non-firm sales and transportation activities. NJNG subsequently recovers or credits the difference, if any, of actual costs compared with those included in current rates. Any underrecoveries or overrecoveries are either credited to customers or deferred and, subject to BPU approval, reflected in the BGSS rates in subsequent years. NJRES' gas purchases represent the total commodity contract cost, recognized upon completion of the transaction, as well as realized gains and losses of settled derivative instruments, both for physical purchase contracts and all financial contracts and unrealized gains and losses on the change in fair value of financial derivative instruments that have not yet settled. Changes in the fair value of derivatives that economically hedge the forecasted purchases of natural gas are recognized in gas purchases as they occur. Income Taxes The Company computes income taxes using the asset and liability method, whereby deferred income taxes are generally determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. See Note 12. Income Taxes. In addition, NJR evaluates its tax positions to determine the appropriate accounting and recognition of future obligations associated with unrecognized tax benefits. The Company invests in property that qualifies for federal ITCs and utilizes the ITCs, as allowed, based on the cost and life of the assets. ITCs at NJNG are deferred and amortized as a reduction to the tax provision over the average lives of the related equipment in accordance with regulatory treatment. ITCs at NJR's unregulated subsidiaries are recognized as a reduction to income tax expense when the property is placed in service. The Company invests in property that qualifies for PTCs. PTCs are recognized as reductions to current federal income tax expense as PTCs are generated through the production activities of the assets. Changes to the federal statutes related to PTCs could have a negative impact on earnings and cash flows. Capitalized and Deferred Interest NJNG's base rates include the ability to recover AFUDC on its CWIP. For most of NJNG's construction projects, an incremental cost of equity is also recoverable during periods when NJNG's short-term debt balances are lower than its CWIP. For more information on AFUDC treatment with respect to certain accelerated infrastructure projects, see Note 3 Regulation - Infrastructure programs. Capitalized amounts associated with the debt and equity components of NJNG's AFUDC, are recorded in utility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component is recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations and include the following for the fiscal years ended September 30: ($ in thousands) 2015 2014 2013 AFUDC: Debt $ 2,472 $ 1,057 $ 921 Equity 3,825 1,562 2,037 Total $ 6,297 $ 2,619 $ 2,958 Weighted average interest rate 4.63 % 3.30 % 1.05 % Pursuant to a BPU order, NJNG is permitted to recover carrying costs on uncollected balances related to SBC program costs, which include NJCEP, RA and USF expenditures. See Note 3. Regulation . The SBC interest rate changes each September based on the August 31 seven -year constant maturity Treasury rate plus 60 basis points . The rate was 2.54 percent , 2.65 percent and 2.84 percent for the fiscal years ended September 30, 2015 , 2014 and 2013 , respectively. Accordingly, other income included $61,000 , $586,000 and $653,000 in the fiscal years ended September 30, 2015 , 2014 and 2013 , respectively. Sales Tax Accounting Sales tax and TEFA are collected from customers and presented in both operating revenues and operating expenses on the Consolidated Statements of Operations for the fiscal years ended September 30, as follows: (Millions) 2015 2014 2013 Sales tax $ 44.1 $ 47.4 $ 44.4 TEFA (1) — 1.4 5.0 Total $ 44.1 $ 48.8 $ 49.4 (1) TEFA was phased out in January 2014. Cash and Cash Equivalents Cash and cash equivalents consists of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash of $2.5 million and $1 million as of September 30, 2015 and 2014 , respectively, related to escrow balances for utility plant projects, which is recorded in other current and noncurrent assets on the Consolidated Balance Sheets, respectively. Property Plant and Equipment Regulated property, plant and equipment and solar and wind equipment are stated at original cost. Regulated property, plant and equipment costs include direct labor, materials and third-party construction contractor costs, AFUDC and certain indirect costs related to equipment and employees engaged in construction. Upon retirement, the cost of depreciable regulated property, plus removal costs less salvage, is charged to accumulated depreciation with no gain or loss recorded. Depreciation is computed on a straight-line basis over the useful life of the assets for unregulated assets and using rates based on the estimated average lives of the various classes of depreciable property for NJNG. The composite rate of depreciation used for NJNG was 2.31 percent of average depreciable property in fiscal 2015 , 2.44 percent in fiscal 2014 and 2.43 percent in fiscal 2013 . The Company has recorded $61.4 million , $52.7 million and $47.3 million in depreciation expense during fiscal 2015 , 2014 and 2013 , respectively. Property, plant and equipment was comprised of the following as of September 30 : (Thousands) Property Classifications Estimated Useful Lives 2015 2014 Distribution facilities 38 to 74 years $ 1,695,898 $ 1,567,648 Transmission facilities 35 to 56 years 289,599 281,488 Storage facilities 34 to 47 years 41,669 41,669 Solar property 20 to 25 years 395,704 333,506 Wind property 25 years 137,292 42,559 All other property 5 to 35 years 62,123 66,673 Total property, plant and equipment 2,622,285 2,333,543 Accumulated depreciation and amortization (494,024 ) (449,433 ) Property, plant and equipment, net $ 2,128,261 $ 1,884,110 Sale of Asset During fiscal 2014, CR&R sold approximately 25.4 acres of undeveloped land located in Monmouth County for $6 million , generating a pre-tax gain after closing costs of $313,000 , which was recognized in other income on the Consolidated Statements of Operations. Disposal of Equipment In October 2012, certain NJRCEV's solar assets sustained damage as a result of Superstorm Sandy. To the extent that assets were deemed irreparable, the Company disposed of the damaged assets. As a result, the Company recognized a pre-tax loss of $766,000 during fiscal 2013, which is included in other income on the Consolidated Statements of Operations. In fiscal 2014, the Company also received $997,000 from an insurance claim, representing the replacement value of the disposed assets and recorded a gain in the same amount in other income on the Consolidated Statements of Operations. Impairment of Long-Lived Assets The Company reviews the carrying amount of an asset for possible impairment whenever events or changes in circumstances indicate that such amount may not be recoverable. NJR invested $8.8 million in OwnEnergy, a developer of onshore wind projects, for an 18.7 percent ownership interest and the option, but not the obligation, to purchase certain qualified projects. During fiscal 2014, due to its concerns surrounding the ability of OwnEnergy to fulfill its future obligation to present qualified projects to NJRCEV for investment, the Company reassessed the value of its cost method investment, as well as remaining value of its wind purchase option and determined that it was other-than-temporarily impaired. As a result, NJRCEV recognized an impairment loss of $6.4 million , $3.8 million after tax, which is included in other income, net on the Consolidated Statements of Operations. No other impairments were identified for the fiscal years ended September 30, 2015 , 2014 and 2013 . Investments in Equity Investees The Company accounts for its investments in Steckman Ridge, PennEast and Iroquois (through September 29, 2015), using the equity method of accounting, where its respective ownership interests are 50 percent or less and/or it has significant influence over operating and management decisions, but is not the primary beneficiary, as defined under ASC 810, Consolidation . The Company's share of earnings is recognized as equity in earnings of affiliates on the Consolidated Statements of Operations. See Note 6 . Investment in Equity Investees for more information. Available for Sale Securities The Company has certain investments in equity securities of a publicly traded energy company that have a fair value of $10.1 million and $10.7 million as of September 30, 2015 and 2014 , respectively, which are included in available for sale securities on the Consolidated Balance Sheets. Total unrealized gains associated with these equity securities, which are included as a part of accumulated other comprehensive income, a component of common stock equity, were $7.5 million , $4.4 million after tax, and $8.1 million , $4.8 million after tax, as of September 30, 2015 and 2014 , respectively. On September 29, 2015, NJR Midstream Holdings Corporation exchanged its 5.53 percent equity method investment in Iroquois to DM for approximately 1.84 million DM Common Units. Since the exchange was, in substance, a contribution of real estate into another real estate venture, the Company recorded a deferred gain of $24.6 million based on the difference between the carrying amount of its investment of Iroquois, $21.5 million , and the fair value of the DM Common Units on the closing date of the transaction, $46.1 million . The deferred gain will be recognized in other income on the Consolidated Statements of Operations if and when the units are sold in the future. NJR classified the DM Common Units as available for sale securities and, therefore, any changes in fair value are recognized in accumulated other comprehensive income, a component of common stock equity. As of September 30, 2015 , the units have a fair value of $49.4 million and the Company recognized an unrealized gain of $3.3 million , $1.9 million after tax. Reclassifications of realized gains out of other comprehensive income into income are determined based on average cost. There were no sales of securities during fiscal 2015 and 2014 . Customer Accounts Receivable and Allowance for Doubtful Accounts Receivables consist of natural gas sales and transportation services billed to residential, commercial, industrial and other customers, as well as equipment sales, installations, solar leases and power purchase agreements to commercial and residential customers. NJR evaluates it accounts receivables and, to the extent customer account balances are outstanding for more than 60 days , establishes an allowance for doubtful accounts. The allowance is based on a combination of factors including historical collection experience and trends, aging of receivables, general economic conditions in the company's distribution or sales territories, and customer specific information. NJR writes-off customers' accounts once it is determined they are uncollectible. The following table summarizes customer accounts receivable by company as of September 30 : (Thousands) 2015 2014 NJRES $ 107,461 69 % $ 142,566 75 % NJNG (1) 41,130 26 41,281 22 NJRCEV 1,084 1 594 — NJRHS and other 5,598 4 5,529 3 Total $ 155,273 100 % $ 189,970 100 % (1) Does not include unbilled revenues of $6.4 million and $7.2 million as of September 30, 2015 and 2014 , respectively. Loan Receivable NJNG provides interest-free loans, with terms ranging from two to 10 years, to customers that elect to purchase and install certain energy efficient equipment in accordance with its BPU approved SAVEGREEN program. The loans are recognized at net present value on the Consolidated Balance Sheets. Refer to Note 5. Fair Value for a discussion of the Company's fair value measurement policies and level disclosures. The Company has recorded $6.2 million and $3.9 million in other current assets and $36.2 million and $27.3 million in other noncurrent assets as of September 30, 2015 and 2014 , respectively, on the Consolidated Balance Sheets, related to the loans. NJR's policy is to establish an allowance for doubtful accounts when loan balances are in arrears for more than 60 days . There was no allowance for doubtful accounts established during fiscal 2015 and 2014 . Asset Retirement Obligations NJR recognizes a liability for its AROs based on the fair value of the liability when incurred, which is generally upon acquisition, construction, development and/or through the normal operation of the asset. Concurrently, NJR also capitalizes an asset retirement cost by increasing the carrying amount of the related asset by the same amount as the liability. In periods subsequent to the initial measurement, NJR is required to recognize changes in the liability resulting from the passage of time (accretion) or due to revisions to either timing or the amount of the originally estimated cash flows to settle the conditional ARO. Common Stock Split On January 20, 2015, NJR’s Board of Directors approved a 2 for 1 stock split of the Company’s common stock for the Company’s common stock holders of record on February 6, 2015. The additional shares were issued on March 3, 2015, resulting in an increase in average shares outstanding from approximately 42.7 million to approximately 85.4 million . All share-related information for prior periods has been adjusted throughout this report on a retroactive basis to reflect the effects of the stock split. As well, common stock and premium on common stock amounts have been adjusted as of the earliest period presented on the Consolidated Balance Sheets. Accumulated Other Comprehensive Income The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects as of September 30 : (Thousands) Unrealized gain on available for sale securities Net unrealized gain on derivatives Adjustment to postemployment benefit obligation Total Balance at September 30, 2013 $ 5,400 $ 12 $ (7,033 ) $ (1,621 ) Other comprehensive income, net of tax Other comprehensive (loss), before reclassifications, net of tax of $426, $159, $3,334, $3,919 (618 ) (273 ) (5,006 ) (5,897 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(98), $(1,172), $(1,270) — 168 (1) 1,756 (2) 1,924 Net current-period other comprehensive (loss), net of tax of $426, $61, $2,162, $2,649 (618 ) (105 ) (3,250 ) (3,973 ) Balance at September 30, 2014 $ 4,782 $ (93 ) $ (10,283 ) $ (5,594 ) Other comprehensive income, net of tax Other comprehensive income (loss), before reclassifications, net of tax of ($1,135), $146, $4,362, $3,373 1,603 (256 ) (6,483 ) (5,136 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, ($202), ($674), ($876) — 349 (1) 987 (2) 1,336 Net current-period other comprehensive income, net of tax of ($1,135), ($56), $3,688, $2,497 1,603 93 (5,496 ) (3,800 ) Balance at September 30, 2015 $ 6,385 $ — $ (15,779 ) $ (9,394 ) (1) Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases on the Consolidated Statements of Operations. (2) Included in the computation of net periodic pension cost, a component of O&M expense on the Consolidated Statements of Operations. For more details, see Note 10. Employee Benefit Plans. Pension and Postemployment Plans NJR has two noncontributory defined pension plans covering eligible employees, including officers. Benefits are based on each employee's years of service and compensation. NJR's funding policy is to contribute annually to these plans at least the minimum amount required under Employee Retirement Income Security Act, as amended, and not more than can be deducted for federal income tax purposes. Plan assets consist of equity securities, fixed-income securities and short-term investments. NJR made no discretionary contributions to the pension plans in fiscal 2015 or fiscal 2014 . NJR also provides two primarily noncontributory medical and life insurance plans for eligible retirees and dependents. Medical benefits, which make up the largest component of the plans, are based upon an age and years-of-service vesting schedule and other plan provisions. Funding of these benefits is made primarily into Voluntary Employee Beneficiary Association trust funds. NJR contributed $6 million , $5 million and $6 million in aggregate to these plans in fiscal 2015 , 2014 and 2013 , respectively. See Note 10. Employee Benefit Plans, for a more detailed description of the Company's pension and postemployment plans. Foreign Currency Transactions NJRES' market area includes Canadian delivery points and. as a result. incurs certain natural gas commodity costs and demand fees that are denominated in Canadian dollars. Gains or losses that occur as a result of these foreign currency transactions are reported as a component of gas purchases on the Consolidated Statements of Operations and were not material during the fiscal years ended September 30, 2015 , 2014 and 2013 . Recent Updates to the Accounting Standards Codification Balance Sheet Offsetting In December 2011, the FASB issued ASU No. 2011-11, an amendment to ASC 210, Balance Sheet , requiring additional disclosures about the nature of an entity's rights of setoff and related master netting arrangements. ASU 2013-01, issued in January 2013, further clarified that the amended guidance was applicable to certain financial and derivative instruments. The Company applied the provisions of the amended guidance retrospectively effective October 1, 2013. The guidance did not impact the Company's financial position, results of operations or cash flows, however, it required additional disclosures that are included in Note 4. Derivative Instruments . Income Taxes In July 2013, the FASB issued ASU No. 2013-11, an amendment to ASC 740, Income Taxes , which clarifies financial statement presentation for unrecognized tax benefits. The ASU requires that an unrecognized tax benefit, or portion thereof, shall be presented in the balance sheet as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss or a tax credit carryforward. To the extent such a deferred tax asset is not available or the Company does not intend to use it to settle any additional taxes that would result from the disallowance of a tax position, the related unrecognized tax benefit will be presented as a liability in the financial statements. The amended guidance became effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company currently does not have unrecognized tax benefits recorded on its balance sheet and there was no impact to its financial position upon adoption. Discontinued Operations In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity . The new guidance changed the definition and reporting of discontinued operations to include only those disposals that represent a strategic shift and that have a major effect on an entity's operations and financial results. The new guidance, which also requires additional disclosures, became effective for annual periods beginning on or after December 15, 2014 and interim periods within those years. The Company does not expect this standard to have any impact to its financial position, results of operations and cash flows upon adoption. Revenue In May 2014, the FASB issued ASU No. 2014-09, and added Topic 606, Revenue from Contracts with Customers , to the ASC. ASC 606 supersedes ASC 605, Revenue Recognition , as well as most industry-specific guidance, and prescribes a single, comprehensive revenue recognition model designed to improve financial reporting comparability across entities, industries, jurisdictions and capital markets. In August 2015, the FASB issued ASU No. 2015-14, which defers the implementation of the new guidance for one year. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Upon adoption, the guidance will be applied on a full or modified retrospective basis. The Company is currently evaluating the provisions of ASC 606 to understand the impact, if any, to its financial position, results of operations and cash flows upon adoption. Stock Compensation In June 2014, the FASB issued ASU No. 2014-12, an amendment to ASC 718, Compensation - Stock Compensation , which clarifies the accounting for performance awards when the terms of the award provide that a performance target could be achieved after the requisite service period. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company does not expect this standard to have any impact to its financial position, results of operations and cash flows upon adoption. Extraordinary and Unusual Items In January 2015, the FASB issued ASU No. 2015-01, an amendment to ASC 225, Income Statement , which eliminates the concept of extraordinary items and, therefore, removes the requirement for separate presentation, net of tax, after income from continuing operations. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company does not expect this standard to have any impact on its financial position, results of operations and cash flows upon adoption. Consolidation In February 2015, the FASB issued ASU No. 2015-02, an amendment to ASC 810, Consolidation , which changes the consolidation analysis required under GAAP and reevaluates whether limited partnerships and similar entities must be consolidated. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Upon adoption, the amendment will be applied on a full or modified retrospective basis. The Company is currently evaluating the provisions of ASU No. 2015-02 to understand the impact, if any, on its financial position, results of operations and cash flows upon adoption. Interest In April 2015, the FASB issued ASU No. 2015-03, an amendment to ASC 835, Interest - Imputation of Interest, which simplifies the presentation of debt issuance costs by requiring them to be presented in the balance sheet as a deduction from the carrying amount of the liability. The amendments do not affect the recognition and measurement guidance for debt issuance costs. In August 2015, the FASB issued ASU No. 2015-15, which clarified that the amendments contained within ASU No. 2015-03 do not require companies to modify their accounting for costs incurred in obtaining revolving credit facilities. The amended guidance becomes effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Upon adoption, the amendment will be applied on a retrospective basis. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations and cash flows upon adoption. Intangibles In April 2015, the FASB issued ASU No. 2015-05, an amendment to ASC 350, Intangibles - Goodwill and Other - Internal-Use Software, which clarifies the accounting for fees in a cloud computing arrangement. The amendments provide guidance on how an entity should evaluate the accounting for fees paid in a cloud computing arrangement to determine whether an arrangement includes the sale or license of software. The amended guidance becomes effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Upon adoption, the amendments can be applied on a prospective or retrospective basis. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations and cash flows upon adoption. Inventory In July 2015, the FASB issued ASU No. 2015-11 |
REGULATION
REGULATION | 12 Months Ended |
Sep. 30, 2015 | |
Regulated Operations [Abstract] | |
REGULATION | REGULATION The EDECA is the legal framework for New Jersey's public utility and wholesale energy landscape. NJNG is required, pursuant to a written order by the BPU under EDECA, to open its residential markets to competition from third-party natural gas suppliers. Customers can choose the supplier of their natural gas commodity in NJNG's service territory. As required by EDECA, NJNG's rates are segregated into two primary components, the commodity portion, which represents the wholesale cost of natural gas, including the cost for interstate pipeline capacity to transport the gas to NJNG's service territory, and the delivery portion, which represents the transportation of the commodity portion through NJNG's gas distribution system to the end-use customer. NJNG does not earn utility gross margin on the commodity portion of its natural gas sales. NJNG earns utility gross margin through the delivery of natural gas to its customers, regardless of whether it or a third-party supplier provides the wholesale natural gas commodity. Under EDECA, the BPU is required to audit the state's energy utilities every two years. The primary purpose of the audit is to ensure that utilities and their affiliates offering unregulated retail services do not have an unfair competitive advantage over nonaffiliated providers of similar retail services. A combined competitive services and management audit of NJNG commenced in August 2013 . A draft management audit report was accepted by the BPU on July 23, 2014, for public comment and is waiting for final approval. In addition, NJNG is in process of implementing certain audit recommendations with BPU Staff. NJNG is subject to cost-based regulation, therefore, it is permitted to recover authorized operating expenses and earn a reasonable return on its utility investment based on the BPU's approval. The impact of the ratemaking process and decisions authorized by the BPU allows NJNG to capitalize or defer certain costs that are expected to be recovered from its customers as regulatory assets and to recognize certain obligations representing amounts that are probable future expenditures as regulatory liabilities in accordance with accounting guidance applicable to regulated operations. As recovery of regulatory assets is subject to BPU approval, if there are any changes in regulatory positions that indicate recovery is not probable, the related cost would be charged to income in the period of such determination. Regulatory assets and liabilities included on the Consolidated Balance Sheets as of September 30, are comprised of the following: (Thousands) 2015 2014 Regulatory assets-current New Jersey Clean Energy Program $ 14,293 $ 14,285 Underrecovered gas costs — 12,577 Derivatives at fair value, net 9,965 — Total current regulatory assets $ 24,258 $ 26,862 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 18,886 $ 30,916 Liability for future expenditures 180,400 177,000 Deferred income taxes 17,460 9,968 Derivatives at fair value, net 5,153 — SAVEGREEN 26,882 29,180 Postemployment and other benefit costs 140,636 108,507 Deferred Superstorm Sandy costs 15,201 15,207 Other noncurrent regulatory assets 5,537 6,797 Total noncurrent regulatory assets $ 410,155 $ 377,575 Regulatory liability-current Conservation Incentive Program $ 5,167 $ 5,752 Overrecovered gas costs 6,987 — Derivatives at fair value, net — 320 Total current regulatory liabilities $ 12,154 $ 6,072 Regulatory liabilities-noncurrent Cost of removal obligation $ 54,880 $ 61,163 Derivatives at fair value, net — 57 New Jersey Clean Energy Program 11,956 — Other noncurrent regulatory liabilities 697 106 Total noncurrent regulatory liabilities $ 67,533 $ 61,326 NJNG's recovery of costs is facilitated through its base tariff rates, BGSS and other regulatory tariff riders. NJNG is required to make an annual filing to the BPU by June 1 of each year for review of its BGSS, CIP and various other programs and related rates. Annual rate changes are requested to be effective at the beginning of the following fiscal year. In addition, NJNG is also permitted to request approval of certain rate or program changes on an interim basis. All rate and program changes are subject to proper notification and BPU review and approval. On November 13, 2015 , NJNG filed a base rate case petition with the BPU. Gas Costs NJNG recovers its cost of gas through the BGSS rate component of its customers' bills. NJNG's cost of gas includes the purchased cost of the natural gas commodity, fees paid to pipelines and storage facilities, adjustments as a result of BGSS incentive programs, and hedging transactions. Underrecovered gas costs represent a regulatory asset that generally occurs during periods when NJNG's BGSS rates are lower than actual costs and requests amounts to be recovered from customers in the future. Conversely, overrecovered gas costs represent a regulatory liability that generally occurs when NJNG's BGSS rates are higher than actual costs and requests approval to be returned to customers including interest, when applicable, in accordance with NJNG's approved BGSS tariff. Conservation Incentive Program The CIP permits NJNG to recover utility gross margin variations related to customer usage resulting from customer conservation efforts and mitigates the impact of weather on its gross margin. Such utility gross margin variations are recovered in the year following the end of the CIP usage year, without interest, and are subject to additional conditions, including an earnings test, a revenue test and an evaluation of BGSS related savings. New Jersey Clean Energy Program The NJCEP is a statewide program that encourages energy efficiency and renewable energy. Funding amounts are determined by the BPU's Office of Clean Energy and all New Jersey utilities are required to share in the annual funding obligation. The current NJCEP program is for the State of New Jersey's fiscal year ending June 2016. NJNG recovers the costs associated with its portion of the NJCEP obligation, through its SBC rider. The recovery rates are set by the BPU and updated only by a filing made by the Company. In addition, the Company's future recoveries for this program will be reduced in the next SBC rate filing through the amortization of the regulatory liability. Environmental Remediation Costs NJNG is responsible for the cleanup of certain former gas manufacturing facilities. Actual expenditures are recovered from customers, with interest, over seven year rolling periods, through a RA rate rider. Recovery for NJNG's estimated future liability will be requested and/or recovered when actual expenditures are incurred. See Note 13. Commitments and Contingencies . Deferred Income Taxes In 1993, NJNG adopted the provisions of ASC 740, Income Taxes , which changed the method used to determine deferred tax assets and liabilities. Upon adoption, NJNG recognized a transition adjustment and corresponding regulatory asset representing the difference between NJNG's existing deferred tax amounts compared with the deferred tax amounts calculated in accordance with the change in method prescribed by ASC 740. NJNG recovers the regulatory asset associated with these tax impacts through future base rates, without interest. Derivatives Derivatives are utilized by NJNG to manage the price risk associated with its natural gas purchasing activities and to participate in certain BGSS incentive programs. The gains and losses associated with NJNG's derivatives are recoverable through its BGSS, as noted above, without interest. See Note 4. Derivatives . SAVEGREEN NJNG administers certain programs that supplement the state's NJCEP and that allow NJNG to promote clean energy to its residential and commercial customers, as described further below. NJNG will recover related expenditures and a weighted average cost of capital through a tariff rider, as approved by the BPU, over a two to 10 -year period depending upon the specific program incentive. Postemployment and Other Benefit Costs Postemployment and Other Benefit Costs represents NJNG's underfunded postemployment benefit obligations that the Company began recognizing in fiscal 2006, as a result of changes in the accounting provisions of ASC 715, Compensation and Benefits , as well as a $2.9 million fiscal 2010 tax charge resulting from a change in the deductibility of federal subsidies associated with Medicare Part D, both of which are deferred as regulatory assets and are recoverable, without interest, in base tariff rates. See Note 10. Employee Benefit Plans . Deferred Superstorm Sandy Costs In October 2012, portions of NJNG's distribution system incurred significant damage as a result of Superstorm Sandy. NJNG filed a petition with the BPU in November 2012 requesting deferred accounting for uninsured incremental O&M costs associated with its restoration efforts, which was approved in May 2013. On October 22, 2014, the BPU approved, as prudent and reasonable, the deferred O&M storm costs. These costs are included for recovery in NJNG's base rate case petition filed with the BPU on November 13, 2015 . Other Regulatory Assets Other regulatory assets consists primarily of deferred costs associated with certain components of NJNG's SBC, as discussed further below, and NJNG's compliance with federal and state mandated PIM provisions. NJNG's related costs to maintain the operational integrity of its distribution and transmission main are recoverable, subject to BPU review and approval. NJNG is limited to recording a regulatory asset associated with PIM that does not exceed $700,000 per year. In addition, to the extent that project costs are lower than the approved PIM annual expense of $1.4 million , NJNG will record a regulatory liability that will be refundable as a credit to customers' gas costs when the net cumulative liability exceeds $1 million . As of September 30, 2015 , NJNG has recorded $3.7 million of PIM in other regulatory assets. NJNG has included the PIM deferred expenses for recovery in the base rate case petition filed with the BPU on November 13, 2015 . Cost of Removal Obligation NJNG accrues and collects for cost of removal in base tariff rates on its utility property, without interest. A regulatory liability represents the current collections in excess of actual expenditures, which the Company will return to customers over approximately 48 years, through a reduction in the depreciation expense component of NJNG's base tariff rates, as approved by the BPU in NJNG's October 2008 base rate case. The following is a description of regulatory proceedings during fiscal 2014 and 2015 : BGSS and CIP BGSS rates are normally revised on an annual basis. In addition, to manage the fluctuations in wholesale natural gas costs, NJNG has the ability to make two interim filings during each fiscal year to increase residential and small commercial customer BGSS rates on a self-implementing and provisional basis. NJNG is also permitted to refund or credit back a portion of the commodity costs to customers when the natural gas commodity costs decrease in comparison to amounts projected or to amounts previously collected from customers. On June 1, 2015 , NJNG filed a petition proposing to continue its existing BGSS rate and notified the BPU that NJNG will provide bill credits to residential and small commercial customers from November 2015 through February 2016, as a result of the decline in the wholesale price of natural gas. On October 27, 2015 , NJNG notified the BPU that the estimated annual bill credits will be approximately $76 million and will result in an approximate 17 percent decrease to the average residential heat customer's bill. Commodity prices were relatively stable during fiscal 2014 , therefore, no refunds or bill credits were issued to BGSS customers. Concurrent with the annual BGSS filing, NJNG files for an annual review of its CIP. On May 21, 2014 , the BPU approved the continuation of the CIP program with no expiration date; however, it will be subject to review in a future rate filing in 2017. In addition, the CIP baseline usage per customer will be reviewed and adjusted in the November 13, 2015 , base rate case filing before the BPU. NJNG's annual BGSS and CIP filings are summarized as follows: • June 2013 BGSS/CIP filing — NJNG proposed to maintain its BGSS rate. In addition, NJNG proposed a 1 percent reduction to an average residential heat customer's bill related to the CIP factor. The CIP rate reduction was provisionally approved by the BPU on October 16, 2013 , effective November 1, 2013 . On November 21, 2013 , NJNG notified the BPU of its intent to reduce its BGSS rate, effective December 1, 2013 , resulting in a 6 percent decrease to the average residential heat customer's bill. On July 23, 2014 , the BPU approved these rates on a final basis. • June 2014 BGSS/CIP filing — NJNG proposed to maintain its BGSS rate. In addition, NJNG proposed a 4.3 percent reduction to an average residential heat customer's bill related to the CIP factor for fiscal 2015. On September 30, 2014 , the BPU provisionally approved these rates effective October 1, 2014 . Additionally, on October 1, 2014 , NJNG implemented a decrease to its BGSS price resulting in a 5 percent decrease to the average residential heat customer's bill. On April 15, 2015 , the BPU approved the BGSS and CIP rates on a final basis. • June 2015 BGSS/CIP filing — NJNG proposed to continue its existing BGSS rate and to increase its CIP rates resulting in a .08 percent increase to the average residential heat customer's bill effective October 1, 2015 . The BPU provisionally approved this rate on September 11, 2015 . Infrastructure Programs NJNG has significant annual capital expenditures associated with the management of its natural gas distribution and transmission system, including new utility plant for customer growth and its associated PIM and infrastructure programs. NJNG implemented BPU-approved infrastructure projects that are designed to enhance the reliability of NJNG's gas distribution system, including AIP and SAFE. The AIP projects, which totaled approximately $148.7 million , were constructed and gas was introduced to the system from 2009 through October 2012. In May 2013 , a base rate change was approved by the BPU that permits NJNG to recover a total of approximately $15.3 million annually. Depending on the infrastructure project, recoveries include a weighted average cost of capital of 7.76 percent or 7.12 percent with a return on equity of 10.3 percent . In October 2012 , the BPU approved NJNG's petition to implement the SAFE program, investing up to $130 million , exclusive of AFUDC, over a four -year period to replace portions of NJNG's gas distribution unprotected steel and cast iron infrastructure in order to improve the safety and reliability of the gas distribution system. The infrastructure costs incurred in the approved SAFE Program includes the deferral of infrastructure costs subject to review in NJNG's base rate case petition filed with the BPU on November 13, 2015 . In June 2012 , the BPU approved a pilot program for NJNG to invest up to $10 million to build NGV refueling stations. On April 23, 2014, the BPU approved NJNG's request to include a cost recovery filing to the BPU within the Company's base rate case petition, which was filed with the BPU on November 13, 2015 . As of September 30, 2015 , NJNG has opened two NGV stations to the public and development of an additional NGV station continues in Middletown Township. On September 3, 2013 , NJNG filed a petition seeking approval of NJ RISE, which consists of six capital investment projects estimated to cost $102.5 million over a five -year period, excluding AFUDC, for gas distribution storm hardening and mitigation projects, along with incremental depreciation expense. The submission was made in response to a March 2013 BPU order, initiating a proceeding to investigate prudent, cost efficient and effective opportunities to protect New Jersey's utility infrastructure from future major storm events. These system enhancements are intended to minimize service impacts during extreme weather events to customers that live in the most storm prone areas of NJNG's service territory. In the filing, NJNG seeks to recover the capital costs associated with NJ RISE through an annual adjustment to its base rates. In July 2014 , the BPU approved a Stipulation of Settlement related to the recovery of the proposed NJ RISE capital infrastructure program. On May 29, 2015 , NJNG filed a petition with the BPU requesting approval to recover costs through July 31, 2015 . On October 15, 2015 , the BPU approved a base rate increase resulting in a .07 percent increase to the average residential heat customer's bill, effective November 1, 2015 . Investments through July 31, 2015 will earn a weighted average cost of capital of 6.74 percent , including a return on equity of 9.75 percent . Additional estimated capital expenditures through December 31, 2016 , has been included for recovery in NJNG's base rate case petition, which was filed with the BPU on November 13, 2015 . BGSS Incentive Programs NJNG is eligible to receive financial incentives for reducing BGSS costs through a series of utility gross margin-sharing programs that include off-system sales, capacity release, storage incentive programs and the FRM program (through October 31, 2015). The Company is permitted to annually propose a process to evaluate and discuss alternative incentive programs, should performance of the existing incentives or market conditions warrant re-evaluation. On March 27, 2015 , NJNG filed a letter petition with the BPU to continue its existing BGSS Incentive Programs. On October 15, 2015 , the BPU issued an order approving the continuation of the BGSS Incentive Programs with modification to the storage incentive program, beginning with the 2015 storage injection period, and termination of the FRM Program, effective November 1, 2015 . SAVEGREEN SAVEGREEN conducts home energy audits and provides various grants, incentives and financing alternatives, which are designed to encourage the installation of high efficiency heating and cooling equipment and other energy efficiency upgrades to promote energy efficiency incentives to its residential and commercial customers while stimulating state and local economies through the creation of jobs. Depending on the specific initiative or approval, NJNG recovers costs associated with the programs over a two to 10 -year period through a tariff rider mechanism. As of September 30, 2015 , the BPU has approved total SAVEGREEN investments of approximately $219.3 million , of which, $117.5 million in grants, rebates and loans has been provided to customers, with a total annual recovery of approximately $20 million . The recovery includes a weighted average cost of capital that ranges from 6.69 percent , with a return on equity of 9.75 percent , to 7.76 percent , with a return on equity of 10.3 percent . SAVEGREEN investments and costs are filed with the BPU on an annual basis and include the following: • On December 17, 2014 , NJNG filed a petition with the BPU to extend SAVEGREEN through June 30, 2018 , with minor modifications. On July 22, 2015 , the BPU approved the petition allowing the extension of SAVEGREEN through July 31, 2017 , with an additional $75.2 million in investments and a weighted average cost of capital of 6.69 percent . • On March 18, 2015 , the BPU approved the June 2014 compliance filing associated with SAVEGREEN to maintain the existing rate. • On July 31, 2015 , NJNG submitted its 2015 SAVEGREEN rate recovery filing to maintain its existing SAVEGREEN recovery rate. Societal Benefits Clause The SBC is comprised of three primary riders that allow NJNG to recover costs associated with USF, which is a permanent statewide program for all natural gas and electric utilities for the benefit of income-eligible customers, MGP remediation, and the NJCEP. NJNG has submitted the following filings to the BPU, which includes a report of program expenditures incurred each program year: • July 2013 SBC filing — NJNG requested approval of its MGP expenditures incurred through June 2013 , as well as a .2 percent reduction to the average residential heat customer's bill related to the SBC RA factor to recover $18.7 million annually, and a 1.9 percent increase related to its NJCEP factor. The rates were approved by the BPU on a provisional basis, effective December 1, 2013 , and on a final basis in July 2014 . • June 2014 USF filing — NJNG filed to increase the statewide USF rate, resulting in a .4 percent increase to the average residential heat customer's bill effective October 1, 2014 . The rate was approved by the BPU in September 2014. • In June 2014 , the BPU approved NJNG's funding obligations for NJCEP for the period from July 2014 to June 2015 , of approximately $15.6 million . Accordingly, NJNG recorded the obligation and corresponding regulatory asset on the Consolidated Balance Sheets. • September 2014 SBC filing — On May 19, 2015 the BPU approved a decrease to NJNG's SBC rate, resulting in a 3.3 percent decrease to the average residential heat customer's bill, effective June 1, 2015 , and approved the recovery of NJNG's MGP expenditures incurred through June 2014 . The rate includes a reduction in the SBC RA factor to $8.5 million annually and in the NJCEP factor to $16.3 million annually. • On June 19, 2015 , NJNG submitted its annual USF compliance filing proposing to decrease the statewide USF rate, resulting in a .6 percent decrease to the average residential heat customer’s total bill effective October 1, 2015 . The rate was approved by the BPU on September 11, 2015 . Other Regulatory Initiatives In November 2012 , NJNG filed a petition with the BPU requesting deferred accounting for uninsured incremental O&M costs associated with Superstorm Sandy, which was subsequently approved in May 2013 . In March 2013, the BPU issued an Order establishing a generic proceeding to review the prudency of costs incurred by New Jersey utility companies in response to major storm events in 2011 and 2012. In July 2013 , NJNG filed its detailed report including unreimbursed, uninsured incremental storm restoration costs and capital expenditures. As of September 30, 2015 , NJNG has deferred $15.2 million of these costs as a regulatory asset. On October 22, 2014, the BPU approved, as prudent and reasonable, the deferred O&M storm costs, which are included for recovery in NJNG's base rate case petition, which was filed with the BPU on November 13, 2015 . In December 2012 , NJNG filed a petition with the BPU requesting approval of a municipal consent in the Borough of Sayreville, New Jersey to provide natural gas distribution service to Red Oak Power, LLC, an electric generating facility. The municipal consent was approved by the BPU in September 2013 . In December 2013 , the BPU approved a gas transportation service agreement between TAQA Gen-X, LLC and NJNG that allows NJNG to deliver natural gas for consumption by Red Oak Power, LLC, through September 2022 . Construction to connect to the plant commenced during the fourth quarter of fiscal 2014, and service began in the first quarter of fiscal 2015. The project cost approximately $1.4 million , which will be reimbursed by TAQA Gen-X, LLC through monthly demand charges that will be billed beginning the first quarter of fiscal 2016. On April 23, 2014, the BPU approved a petition filed by NJNG requesting authorization over a three -year period to issue up to $300 million of medium-term notes with a maturity of not more than 30 years , renew its revolving credit facility expiring August 2014 for up to five years , enter into interest rate risk management transactions related to debt securities and redeem, refinance or defease any of NJNG's outstanding long-term debt securities. The SRL is an approximate 30-mile, 30-inch transmission main designed to support improved system integrity and reliability in the southern portion of NJNG's service territory, estimated to cost between $175 million and $180 million . On April 2, 2015 , NJNG filed two petitions with the BPU to construct, operate and finalize the route for its SRL project. On June 5, 2015 , NJNG filed two petitions with the BPU to amend the previously proposed route. The capital investment costs associated with SRL have been included for recovery in the base rate case petition filed with the BPU on November 13, 2015 . |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company is subject to commodity price risk due to fluctuations in the market price of natural gas, SRECs, and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs, and electricity. In addition, the Company may utilize foreign currency derivatives as cash flow hedges of Canadian dollar denominated gas purchases and/or sales. These contracts, with a few exceptions as described below, are accounted for as derivatives. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Consolidated Balance Sheets. For a more detailed discussion of the Company's fair value measurement policies and level disclosures associated with NJR's derivative instruments, see Note 5. Fair Value . Since NJRES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS, changes in the fair value of these derivative instruments are recorded as a component of gas purchases or operating revenues, as appropriate for NJRES, on the Consolidated Statements of Operations as unrealized gains or (losses). For NJRES at settlement, realized gains and (losses) on all financial derivative instruments are recognized as a component of gas purchases and realized gains and (losses) on all physical derivatives follow the presentation of the related unrealized gains and (losses) as a component of either gas purchases or operating revenues. NJRES also enters into natural gas transactions in Canada and, consequently, is exposed to fluctuations in the value of Canadian currency relative to the U.S. dollar. NJRES may utilize foreign currency derivatives to lock in the currency translation rate associated with natural gas transactions denominated in Canadian currency. The derivatives may include currency forwards, futures, or swaps and are accounted for as derivatives. These derivatives may be used to hedge future forecasted cash payments associated with transportation and storage contracts along with purchases of natural gas. The Company designates these foreign currency derivatives as cash flow hedges of that exposure, and expects the hedge relationship to be highly effective throughout the term. Since NJRES designates its foreign exchange contracts as cash flow hedges, changes in fair value of the effective portion of the hedge are recorded in OCI. When the foreign exchange contracts are settled and the related purchases are recognized in income, realized gains and (losses) are recognized in gas purchases on the Consolidated Statements of Operations. As of September 30, 2015 , the Company had no open foreign currency hedges. As a result of NJRES entering into transactions to borrow gas, commonly referred to as “park and loans,” an embedded derivative is created related to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Consolidated Balance Sheets, with changes in value recognized in current period earnings. Changes in fair value of NJNG's financial derivative instruments are recorded as a component of regulatory assets or liabilities on the Consolidated Balance Sheets. NJNG has received regulatory approval to defer and to recover these amounts through future BGSS rates as an increase or decrease to the cost of natural gas in NJNG's tariff for gas service. The Company elects NPNS accounting treatment on all physical commodity contracts at NJNG. These contracts are accounted for on an accrual basis. Accordingly, physical purchases are recognized in regulatory assets or liabilities on the Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is amortized in current period earnings based on the current BPU BGSS factor and therm sales. NJRCEV hedges certain of its expected production of SRECs through forward and futures contracts. The contracts require the Company to physically deliver the SRECs upon settlement. The Company elects NPNS accounting treatment on all SREC forward and futures contracts it enters into during the period. NJRCEV recognizes the related revenue upon transfer of the SREC certificate to the counterparty. In an April 2014 BPU Order, NJNG received regulatory approval to enter into interest rate risk management transactions related to long-term debt securities. On June 1, 2015, NJNG entered into a treasury lock transaction to fix a benchmark treasury rate of 3.26 percent associated with the forecasted $125 million debt issuance expected in May 2018. This forecasted debt issuance coincides with the maturity of NJNG's existing $125 million , 5.6 percent notes due May 15, 2018 . The change in fair value of NJNG's treasury lock agreement is recorded as a component of regulatory assets or liabilities on the Consolidated Balance Sheets since NJNG believes that the market value upon settlement will be recovered in future rates. Upon settlement, any gain or loss will be amortized in earnings over the life of the future debt issuance. Fair Value of Derivatives The following table reflects the fair value of NJR's derivative assets and liabilities recognized on the Consolidated Balance Sheets as of September 30 : Fair Value 2015 2014 (Thousands) Balance Sheet Location Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: NJRES: Foreign currency contracts Derivatives - current $ — $ — $ — $ 155 Derivatives - noncurrent — — — — Fair value of derivatives designated as hedging instruments $ — $ — $ — $ 155 Derivatives not designated as hedging instruments: NJNG: Financial commodity contracts Derivatives - current $ 207 $ 10,163 $ 2,525 $ 2,205 Derivatives - noncurrent — 925 82 25 Interest rate contracts Derivatives - noncurrent — 4,228 — — NJRES: Physical forward commodity contracts Derivatives - current 4,854 9,281 15,391 30,778 Derivatives - noncurrent 1,718 — 35 132 Financial commodity contracts Derivatives - current 35,682 13,347 46,307 46,725 Derivatives - noncurrent 2,626 386 5,537 6,533 Fair value of derivatives not designated as hedging instruments $ 45,087 $ 38,330 $ 69,877 $ 86,398 Total fair value of derivatives $ 45,087 $ 38,330 $ 69,877 $ 86,553 Offsetting of Derivatives NJR transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty. However, NJR's policy is to present its derivative assets and liabilities on a gross basis on the Consolidated Balance Sheets. The following table summarizes the reported gross amounts, the amounts that NJR has the right to offset but elects not to, financial collateral, as well as the net amounts NJR could present on the Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented in Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of September 30, 2015: Derivative assets: NJRES Physical forward commodity contracts $ 6,562 $ (1,326 ) $ — $ 5,236 Financial commodity contracts 38,308 (13,734 ) 3,841 28,415 Total NJRES $ 44,870 $ (15,060 ) $ 3,841 $ 33,651 NJNG Financial commodity contracts $ 207 $ (207 ) $ — $ — Interest rate contracts — — — — Total NJNG $ 207 $ (207 ) $ — $ — Derivative liabilities: NJRES Physical forward commodity contracts $ 9,271 $ (1,326 ) $ (1,200 ) $ 6,745 Financial commodity contracts 13,733 (13,733 ) — — Total NJRES $ 23,004 $ (15,059 ) $ (1,200 ) $ 6,745 NJNG Financial commodity contracts $ 11,088 $ (207 ) $ (10,881 ) $ — Interest rate contracts $ 4,228 $ — $ — $ 4,228 Total NJNG $ 15,316 $ (207 ) $ (10,881 ) $ 4,228 As of September 30, 2014: Derivative assets: NJRES Physical forward commodity contracts $ 15,426 $ (11,531 ) $ — $ 3,895 Financial commodity contracts 51,844 (51,844 ) — — Total NJRES $ 67,270 $ (63,375 ) $ — $ 3,895 NJNG Financial commodity contracts $ 2,607 $ (2,230 ) $ (377 ) $ — Derivative liabilities: NJRES Physical forward commodity contracts $ 30,910 $ (12,058 ) $ (1,200 ) $ 17,652 Financial commodity contracts 53,258 (51,844 ) (1,414 ) — Foreign currency contracts 155 — — 155 Total NJRES $ 84,323 $ (63,902 ) $ (2,614 ) $ 17,807 NJNG Financial commodity contracts $ 2,230 $ (2,230 ) $ — $ — (1) Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Offsetting derivative instruments include: transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3) Financial collateral includes cash balances at FCMs, as well as cash received from or pledged to other counterparties. (4) Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20. NJRES utilizes financial derivatives to economically hedge the gross margin associated with the purchase of physical gas for injection into storage and the subsequent sale of physical gas at a later date. The gains or (losses) on the financial transactions that are economic hedges of the cost of the purchased gas are recognized prior to the gains or (losses) on the physical transaction, which are recognized in earnings when the natural gas is sold. Therefore, mismatches between the timing of the recognition of realized gains or (losses) on the financial derivative instruments and gains or (losses) associated with the actual sale of the natural gas that is being economically hedged along with fair value changes in derivative instruments creates volatility in the results of NJRES, although the Company's intended economic results relating to the entire transaction are unaffected. The following table reflects the effect of derivative instruments on the Consolidated Statements of Operations as of September 30 : (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized in income on derivatives Derivatives not designated as hedging instruments: 2015 2014 2013 NJRES: Physical commodity contracts Operating revenues $ 32,568 $ (48,977 ) $ 1,117 Physical commodity contracts Gas purchases (34,438 ) (83,847 ) (17,194 ) Financial commodity contracts Gas purchases 109,082 (118,872 ) 41,183 Total unrealized and realized (losses) gains $ 107,212 $ (251,696 ) $ 25,106 The table above does not include gains (losses) associated with NJNG's financial derivatives that totaled $(33.4) million , $10.1 million and $1.8 million for the fiscal years ended September 30, 2015 , 2014 and 2013 , respectively, and the treasury rate lock of $(4.2) million for the fiscal year ended September 30, 2015 . NJNG’s derivative contracts are part of the Company's risk management activities that relate to its natural gas purchases, BGSS incentive programs and debt financing. These transactions are entered into pursuant to regulatory guidance and at settlement the resulting gains and/or losses are payable to and/or recoverable from customers. Any changes in the value of NJNG's financial derivatives are deferred in regulatory assets or liabilities resulting in no impact to earnings. As previously noted, NJRES had no open foreign currency hedge transactions as of September 30, 2015 . However, NJRES previously designated its foreign exchange contracts as cash flow hedges, therefore, changes in fair value of the effective portion of the hedges are recorded in OCI and, upon settlement of the contracts, realized gains and (losses) are reclassified from OCI to gas purchases on the Consolidated Statements of Operations. The following table reflects the effect of derivative instruments designated as cash flow hedges on OCI as of September 30 : (Thousands) Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) (1) Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Amount of Gain or (Loss) Recognized on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Derivatives in cash flow hedging relationships: 2015 2014 2015 2014 2015 2014 Foreign currency contracts $ (402 ) $ (432 ) $ 557 $ 266 $ — $ — NJNG and NJRES had the following outstanding long (short) derivatives as of September 30 : Volume (Bcf) 2015 2014 NJNG Futures 25.8 (1) 17.3 NJRES Futures (91.1 ) (62.1 ) Financial Options 1.2 1.2 Physical 48.2 28.6 (1) Not included is the notional amount of $125 million related to NJNG’s treasury lock agreement. Broker Margin Generally, exchange-traded futures contracts require posted collateral, referred to as margin, usually in the form of cash. The amount of margin required is comprised of a fixed initial amount based on exchange requirements and a variable amount based on a daily mark-to-market. The Company maintains separate broker margin accounts for NJNG and NJRES. The balances as of September 30 , by company, are as follows: (Thousands) Balance Sheet Location 2015 2014 NJNG Broker margin - Current assets $ 12,990 $ 1,057 NJRES Broker margin - Current (liabilities) assets $ (4,103 ) $ 26,282 Wholesale Credit Risk NJNG and NJRES are exposed to credit risk as a result of their wholesale marketing activities. In addition, NJRCEV engages in sales of electricity, capacity and SRECs. As a result of the inherent volatility in the prices of natural gas commodities, derivatives and SRECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty failed to perform the obligations under its contract (e.g., failed to deliver or pay for natural gas or SRECs), then the Company could sustain a loss. NJR monitors and manages the credit risk of its wholesale marketing operations through credit policies and procedures that management believes reduce overall credit risk. These policies include a review and evaluation of current and prospective counterparties' financial statements and/or credit ratings, daily monitoring of counterparties' credit limits and exposure, daily communication with traders regarding credit status and the use of credit mitigation measures, such as collateral requirements and netting agreements. Examples of collateral include letters of credit and cash received for either prepayment or margin deposit. Collateral may be requested due to NJR's election not to extend credit or because exposure exceeds defined thresholds. Most of NJR's wholesale marketing contracts contain standard netting provisions. These contracts include those governed by ISDA and the NAESB. The netting provisions refer to payment netting, whereby receivables and payables with the same counterparty are offset and the resulting net amount is paid to the party to which it is due. The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of September 30, 2015 . Internally-rated exposure applies to counterparties that are not rated by S&P or Moody's. In these cases, the Company's or guarantor's financial statements are reviewed, and similar methodologies and ratios used by S&P and/or Moody's are applied to arrive at a substitute rating. Gross credit exposure is defined as the unrealized fair value of physical and financial derivative commodity contracts, plus any outstanding wholesale receivable for the value of natural gas delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received. The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services. (Thousands) Gross Credit Exposure Investment grade $ 103,706 Noninvestment grade 10,655 Internally-rated investment grade 8,168 Internally-rated noninvestment grade 8,751 Total $ 131,280 Conversely, certain of NJNG's and NJRES' derivative instruments are linked to agreements containing provisions that would require cash collateral payments from the Company if certain events occur. These provisions vary based upon the terms in individual counterparty agreements and can result in cash payments if NJNG's credit rating were to fall below its current level. NJNG's credit rating, with respect to S&P, reflects the overall corporate credit profile of NJR. Specifically, most, but not all, of these additional payments will be triggered if NJNG's debt is downgraded by the major credit agencies, regardless of investment grade status. In addition, some of these agreements include threshold amounts that would result in additional collateral payments if the values of derivative liabilities were to exceed the maximum values provided for in relevant counterparty agreements. Other provisions include payment features that are not specifically linked to ratings, but are based on certain financial metrics. Collateral amounts associated with any of these conditions are determined based on a sliding scale and are contingent upon the degree to which the Company's credit rating and/or financial metrics deteriorate, and the extent to which liability amounts exceed applicable threshold limits. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position on September 30, 2015 and 2014 , is $4.2 million and $39,000 , respectively, for which the Company had not posted collateral. If all thresholds related to the credit-risk-related contingent features underlying these agreements had been invoked on September 30, 2015 and 2014 , the Company would have been required to post an additional $4.2 million and $7,000 , respectively, to its counterparties. These amounts differ from the respective net derivative liabilities reflected on the Consolidated Balance Sheets because the agreements also include clauses, commonly known as “Rights of Offset,” that would permit the Company to offset its derivative assets against its derivative liabilities for determining additional collateral to be posted, as previously discussed. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair Value of Assets and Liabilities The fair value of cash and temporary investments, accounts receivable, current loan receivables, accounts payable, commercial paper and borrowings under revolving credit facilities are estimated to equal their carrying amounts due to the short maturity of those instruments. Non-current loan receivables are recorded based on what the Company expects to receive, which approximates fair value. The Company regularly evaluates the credit quality and collection profile of its customers to approximate fair value. As of September 30, the estimated fair value of long-term debt at NJNG and NJR, including current maturities and excluding capital leases, as applicable, is as follows: (Thousands) 2015 2014 NJNG Carrying value (1) $ 582,845 $ 432,845 Fair market value $ 584,240 $ 453,773 NJR Carrying value $ 225,000 $ 125,000 Fair market value $ 233,079 $ 133,136 (1) Excludes capital leases of $46.9 million and $49.9 million as of September 30, 2015 and 2014 , respectively. NJR utilizes a discounted cash flow method to determine the fair value of its debt. Inputs include observable municipal and corporate yields, as appropriate, for the maturity of the specific issue and the Company's credit rating. As of September 30, 2015 and 2014 , NJR discloses its debt within Level 2 of the fair value hierarchy. Fair Value Hierarchy NJR applies fair value measurement guidance to its financial assets and liabilities, as appropriate, which include financial derivatives and physical commodity contracts qualifying as derivatives, available for sale securities and other financial assets and liabilities. In addition, authoritative accounting literature prescribes the use of a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on the source of the data used to develop the price inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and include the following: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets. NJR's Level 1 assets and liabilities include exchange traded futures and options contracts, listed equities and money market funds. Exchange traded futures and options contracts include all energy contracts traded on the NYMEX/CME and ICE that NJR refers internally to as basis swaps, fixed swaps, futures and financial options that are cleared through a FCM. Level 2 Other significant observable inputs such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services. NJR's Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). NJNG's treasury lock is also considered Level 2 as valuation is based on quoted market interest and swap rates as inputs to the valuation model. Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as: 1) The data is widely accepted and public 2) The data is non-proprietary and sourced from an independent third party 3) The data is observable and published These additional adjustments are generally not considered to be significant to the ultimate recognized values. Level 3 Inputs derived from a significant amount of unobservable market data. These include NJR's best estimate of fair value and are derived primarily through the use of internal valuation methodologies. NJNG's and NJRES' financial derivatives portfolios consist mainly of futures, options and swaps. NJR primarily uses the market approach and its policy is to use actively quoted market prices when available. The principal market for its derivative transactions is the natural gas wholesale market, therefore, the primary sources for its price inputs are CME/NYMEX and ICE. NJRES uses Platts and Natural Gas Exchange for Canadian delivery points. However, NJRES also engages in transactions that result in transporting natural gas to delivery points for which there is no actively quoted market price. In most instances, the transportation cost to the final delivery location is not significant to the overall valuation. If required, NJRES' policy is to use the best information available to determine fair value based on internal pricing models, which would include estimates extrapolated from broker quotes or other pricing services. NJR also has available for sale securities and other financial assets that include listed equities, mutual funds and money market funds for which there are active exchange quotes available. When NJR determines fair values, measurements are adjusted, as needed, for credit risk associated with its counterparties, as well as its own credit risk. NJR determines these adjustments by using historical default probabilities that correspond to the applicable S&P issuer ratings, while also taking into consideration collateral and netting arrangements that serve to mitigate risk. Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Thousands) (Level 1) (Level 2) (Level 3) Total As of September 30, 2015: Assets Physical forward commodity contracts $ — $ 6,572 $ — $ 6,572 Financial derivative contracts - natural gas 38,515 — — 38,515 Available for sale equity securities - energy industry (1) 59,475 — — 59,475 Other (2) 1,572 — — 1,572 Total assets at fair value $ 99,562 $ 6,572 $ — $ 106,134 Liabilities Physical forward commodity contracts $ — $ 9,281 $ — $ 9,281 Financial commodity contracts - natural gas 24,821 — — 24,821 Interest rate contracts — 4,228 — 4,228 Total liabilities at fair value $ 24,821 $ 13,509 $ — $ 38,330 As of September 30, 2014: Assets Physical forward commodity contracts $ — $ 15,426 $ — $ 15,426 Financial derivative contracts - natural gas 54,451 — — 54,451 Available for sale equity securities - energy industry (1) 10,672 — — 10,672 Other (2) 1,299 — — 1,299 Total assets at fair value $ 66,422 $ 15,426 $ — $ 81,848 Liabilities Physical forward commodity contracts $ — $ 30,910 $ — $ 30,910 Financial commodity contracts - natural gas 55,488 — — 55,488 Financial commodity contracts - foreign exchange — 155 — 155 Total liabilities at fair value $ 55,488 $ 31,065 $ — $ 86,553 (1) Included in other noncurrent assets on the Consolidated Balance Sheets. (2) Includes various money market funds in Level 1. |
INVESTMENTS IN EQUITY INVESTEES
INVESTMENTS IN EQUITY INVESTEES | 12 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN EQUITY INVESTEES | INVESTMENTS IN EQUITY INVESTEES Investments in equity investees includes NJR's equity method and cost method investments. Equity Method Investments During the fourth quarter of fiscal 2014, NJR, through a subsidiary, NJR Pipeline Company, formed PennEast with four other investors, with another investor joining in October 2014, plans to construct and operate an 118 -mile pipeline that will extend from northeast Pennsylvania to western New Jersey. On September 29, 2015, NJNR Pipeline exchanged its 5.53 percent ownership interest in Iroquois to DM for approximately 1.84 million DM Common Units. The units are accounted for as available for sale securities on the Consolidated Balance Sheets. The exchange resulted in a pre-tax gain of approximately $24.6 million that was deferred and will be recognized into income if and when the units are sold in the future. As of September 30 , NJR's equity method investments include the following: (Thousands) 2015 2014 Steckman Ridge (1) $ 125,649 $ 128,413 Iroquois — 24,042 PennEast 6,353 555 Total $ 132,002 $ 153,010 (1) Includes loans with a total outstanding principal balance of $70.4 million for both fiscal 2015 and 2014 , which accrue interest at a variable rate that resets quarterly and are due October 1, 2023 . NJRES and NJNG have transportation, storage and park and loan agreements with Steckman Ridge and Iroquois. In addition, NJNG has entered into a precedent capacity agreement with PennEast with an estimated service date of November 1, 2017 . See Note 15. Related Party Transactions for more information on these intercompany transactions. Cost Method Investments During fiscal 2014 and most of fiscal 2015, NJRCEV held a minority equity interest in OwnEnergy, an onshore wind developer, which provided NJRCEV with the option to acquire wind farms that fit its investment profile. During the fourth quarter of fiscal 2015, OwnEnergy was acquired by a power producer and NJRCEV realized a $3 million pre-tax gain in exchange for its ownership interest, which is included in other income, net on the Consolidated Statements of Operations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table presents the calculation of the Company's basic and diluted earnings per share for the fiscal years ended September 30 : (Thousands, except per share amounts) 2015 2014 2013 Net income, as reported $ 180,960 $ 141,970 $ 114,809 Basic earnings per share Weighted average shares of common stock outstanding-basic 85,186 84,198 83,316 Basic earnings per common share $2.12 $1.69 $1.38 Diluted earnings per share Weighted average shares of common stock outstanding-basic 85,186 84,198 83,316 Incremental shares (1) 1,079 724 312 Weighted average shares of common stock outstanding-diluted 86,265 84,922 83,628 Diluted earnings per common share (2) $2.10 $1.67 $1.37 (1) Incremental shares consist of stock options, stock awards and performance units. (2) There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2015 , 2014 and 2013 . |
DEBT
DEBT | 12 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT NJNG and NJR finance working capital requirements and capital expenditures through the issuance of various long-term debt and other financing arrangements, including unsecured credit and private placement debt shelf facilities. Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. The following table presents the long-term debt of the Company as of September 30 : (Thousands) 2015 2014 NJNG First mortgage bonds: Maturity date: 4.50% Series II August 1, 2023 $ 10,300 $ 10,300 4.60% Series JJ August 1, 2024 10,500 10,500 4.90% Series KK October 1, 2040 15,000 15,000 5.60% Series LL May 15, 2018 125,000 125,000 Variable Series MM September 1, 2027 9,545 9,545 Variable Series NN August 1, 2035 41,000 41,000 Variable Series OO August 1, 2041 46,500 46,500 3.15% Series PP April 15, 2028 50,000 50,000 3.58% Series QQ March 13, 2024 70,000 70,000 4.61% Series RR March 13, 2044 55,000 55,000 2.82% Series SS April 15, 2025 50,000 — 3.66% Series TT April 15, 2045 100,000 — Capital lease obligation-buildings June 1, 2021 16,700 18,726 Capital lease obligation-meters Various dates 30,188 31,143 Less: Current maturities of long-term debt (11,138 ) (9,505 ) Total NJNG long-term debt 618,595 473,209 NJR 6.05% Unsecured senior notes September 24, 2017 50,000 50,000 1.94% Unsecured senior notes September 17, 2015 — 25,000 2.51% Unsecured senior notes September 17, 2018 25,000 25,000 3.25% Unsecured senior notes September 17, 2022 50,000 50,000 3.48% Unsecured senior notes November 7, 2024 100,000 — Less: Current maturities of long-term debt — (25,000 ) Total NJR long-term debt 225,000 125,000 Total long-term debt $ 843,595 $ 598,209 Annual long-term debt redemption requirements, excluding capital leases, as of September 30 , are as follows: (Millions) NJNG NJR 2016 $ — $ — 2017 $ — $ 50.0 2018 $ 125.0 $ 25.0 2019 $ — $ — 2020 $ — $ — Thereafter $ 457.8 $ 150.0 NJNG First Mortgage Bonds NJNG and Trustee, entered into the Mortgage Indenture, dated September 1, 2014, which secures all of the outstanding First Mortgage Bonds issued under the Old Mortgage Indenture. The Mortgage Indenture provides a direct first mortgage lien upon substantially all of the operating properties and franchises of NJNG (other than excepted property, such as cash on hand, choses-in-action, securities, rent, natural gas meters and certain materials, supplies, appliances and vehicles), subject only to certain permitted encumbrances. The Mortgage Indenture contains provisions subjecting after-acquired property (other than excepted property and subject to pre-existing liens, if any, at the time of acquisition) to the lien thereof. NJNG's Mortgage Indenture no longer contains a restriction on the ability of NJNG to pay dividends. New Jersey Administrative Code 14:4-4.7 states that a public utility cannot issue dividends if it's equity to total capitalization ratio falls below 30 percent without regulatory approval. As of September 30, 2015 , NJNG's equity to total capitalization ratio is 54.2 percent and has the ability to issue up to $830.7 million of FMB under the terms of the Mortgage Indenture. In August 2011, NJNG completed a refunding of its outstanding Auction-Rate Securities whereby the EDA issued three series of Variable Rate Demand Notes with a total principal amount of $97 million and maturity dates ranging from September 2027 to August 2041 . NJNG and the EDA entered into a Loan Agreement securing the payment of principal and interest on the notes by NJNG with a pledge of $97 million principal amount of First Mortgage Bonds issued by NJNG. This agreement was amended and restated effective September 1, 2014, to accommodate a new variable interest rate mode. In connection with the change in interest rate mode, NJNG entered into a Continuing Covenant Agreement dated September 24, 2014, with Wells Fargo Municipal Capital Strategies, LLC, pursuant to which Wells Fargo agreed to buy the EDA Bonds. Each series of EDA Bonds is expected to accrue interest for five years at a variable rate determined monthly, which rate is initially calculated as .55 percent plus 70 percent of one month LIBOR. The EDA Bonds are not subject to optional tender while they bear interest at a LIBOR index rate. Any remaining unamortized extinguished debt costs, will be amortized over the life of the new EDA Bonds in accordance with ASC 980, Regulated Operations , therefore, there was no impact to income upon extinguishment. The rates on these types of investments are generally correlated with the Securities Industry and Financial Markets Association Municipal Swap Index and will initially accrue interest at a daily rate, with a maximum rate of 12 percent per annum. As of September 30, 2015 , the interest rate on the EDA Bonds was .69 percent . On April 15, 2013 , NJNG issued $50 million of 3.15 percent senior secured notes due April 15, 2028 , in the private placement market pursuant to a note purchase agreement entered into on February 8, 2013. Interest is payable semi-annually. The proceeds were used to refinance short-term debt and will fund capital expenditure requirements. On March 13, 2014 , NJNG issued $70 million of 3.58 percent senior notes due March 13, 2024 , and $55 million of 4.61 percent senior notes due March 13, 2044 , secured by FMB in the private placement market pursuant to a note purchase agreement entered into on February 7, 2014. The proceeds were used to pay down short-term debt and redeem NJNG's $60 million , 4.77 percent private placement bonds on March 15, 2014. On May 27, 2014 , NJNG redeemed the $12 million , 5 percent Series HH bonds, which were callable as of December 1, 2013 . On April 15, 2015 , NJNG issued $50 million of 2.82 percent senior notes due April 15, 2025 , and $100 million of 3.66 percent senior notes due April 15, 2045 , secured by FMB in the private placement market pursuant to a note purchase agreement entered into on February 12, 2015. The proceeds of the notes were used for general corporate purposes, to refinance or retire debt and to fund capital expenditure requirements. NJNG Sale-Leasebacks NJNG has entered into a sale-leaseback for its headquarters building, which has a 25.5 -year term that expires in June 2021 , subject to an option by NJNG to renew the lease for additional five -year terms a maximum of four times. The present value of the agreement's minimum lease payments is reflected as both a capital lease asset and a capital lease obligation, which are included in utility plant and long-term debt, respectively, on the Consolidated Balance Sheets. NJNG received $7.2 million , $7.6 million and $7.1 million for fiscal 2015 , 2014 and 2013 , respectively, in connection with the sale-leaseback of its natural gas meters. NJNG records a capital lease obligation that is paid over the term of the lease and has the option to purchase the meters back at fair value upon expiration of the lease. During fiscal 2015 , 2014 and 2013 , NJNG exercised early purchase options with respect to meter leases by making final principal payments of $768,000 , $956,000 and $752,000 , respectively. This sale-leaseback program is expected to continue on an annual basis. Contractual commitments for capital lease payments, as of the fiscal years ended September 30, are as follows: (Millions) Lease Payments 2016 $ 13.3 2017 12.1 2018 10.2 2019 7.4 2020 6.6 Thereafter 3.6 Subtotal 53.2 Less: Interest component (6.3 ) Total $ 46.9 NJR Long-term Debt NJR has two unsecured, uncommitted private placement debt shelf note agreements. These debt shelf note agreements are used for general corporate purposes, including working capital and capital expenditures. The first agreement was entered into with Prudential on June 30, 2011 , in the amount of $75 million , which expired on June 30, 2014 , and was amended effective July 25, 2014 , by the First Amendment to the Prudential Facility, which allowed for another $100 million under the Prudential Facility. The notes issued under the Prudential Facility are guaranteed by certain unregulated subsidiaries of NJR. NJR has $50 million at 3.25 percent outstanding under this agreement, which will mature on September 17, 2022 . On November 7, 2014, NJR issued another $100 million in senior notes at 3.48 percent under this facility due November 7, 2024 . On September 26, 2013 , NJR entered into an unsecured, uncommitted $100 million private placement shelf note agreement with MetLife. The MetLife Facility, subject to the terms and conditions set forth therein, allows NJR to issue senior notes to MetLife or certain of MetLife's affiliates from time to time during a three -year issuance period ending September 26, 2016 , on terms and conditions, including interest rates and maturity dates, to be agreed upon in connection with each note issuance. The notes issued under the MetLife Facility will be guaranteed by certain unregulated subsidiaries of NJR. As of September 30, 2015 , $100 million remains available for borrowing under the MetLife Facility. Additionally, NJR entered into another debt shelf note agreement on May 12, 2011 , in the amount of $100 million , which expired on May 10, 2013 . As of September 30, 2015 , NJR had two series of notes outstanding under this agreement, $25 million at 1.94 percent , which matured on September 15, 2015 , and $25 million at 2.51 percent , which will mature on September 15, 2018 . Notes issued under these agreements are guaranteed by certain unregulated subsidiaries of the Company. NJR had no long-term, variable-rate debt outstanding as of September 30, 2015 and 2014 . A summary of NJR's and NJNG's short-term bank facilities as of September 30, are as follows: (Thousands) 2015 2014 NJR Bank revolving credit facilities (1) $ 425,000 $ 425,000 Notes outstanding at end of period $ 39,350 $ 148,000 Weighted average interest rate at end of period 1.17 % 1.08 % Amount available at end of period (2) $ 369,176 $ 256,484 Bank revolving credit facilities (3) $ 100,000 $ — Amount available at end of period $ 100,000 $ — NJNG Bank revolving credit facilities (4) $ 250,000 $ 250,000 Commercial paper outstanding at end of period $ 27,000 $ 153,000 Weighted average interest rate at end of period .20 % 0.12 % Amount available at end of period (5) $ 222,269 $ 96,269 (1) Committed credit facilities, which require commitment fees of .075 percent and .1 percent on the unused amounts as of September 30, 2015 and 2014 , respectively. (2) Letters of credit outstanding total $16.5 million and $20.5 million as of September 30, 2015 and 2014 , respectively, which reduces amount available by the same amount. (3) Uncommitted credit facilities, which require no commitment fees. (4) Committed credit facilities, which require commitment fees of .075 percent on the unused amounts. (5) Letters of credit outstanding total $731,000 and $731,000 as of September 30, 2015 and 2014 , respectively, which reduces amount available by the same amount. NJR Short-term Debt NJR had a $325 million unsecured committed credit facility expiring August 22, 2017. Effective January 31, 2014, NJR utilized the accordion option available under the NJR Credit Facility to increase the amount of credit available from $325 million to $425 million . On September 28, 2015 , NJR terminated and refinanced the facility with a new $425 million unsecured, committed credit facility scheduled to expire on September 28, 2020 , subject to two mutual options for a one-year extension beyond that date. The credit facility is used primarily to finance its share repurchases, to satisfy NJRES' short-term liquidity needs and to finance, on an initial basis, unregulated investments. As of September 30, 2015 , NJR has six letters of credit outstanding totaling $16.5 million . One letter of credit for $12 million is issued on behalf of NJRES and five letters of credit, which total $4.5 million , are issued on behalf of NJRCEV. These letters of credit reduce the amount available under NJR's committed credit facility by the same amount. NJR does not anticipate that these letters of credit will be drawn upon by the counterparties, and they will be renewed as necessary. NJRES' letter of credit is used for margin requirements for natural gas transactions and expires on December 31, 2015 . NJRCEV's letters of credit are used to secure construction of ground-mounted solar projects and to secure obligations pursuant to an Interconnection Services Agreement. They expire on dates ranging from December 27, 2015 to August 21, 2016 . On September 13, 2013 , NJR, as borrower, and certain of its unregulated subsidiaries, as guarantors, entered into an unsecured one -year $100 million Term Loan Credit Agreement with JPMorgan that expired on September 15, 2014 , and was not replaced. On June 5, 2013 , NJR entered into a new agreement permitting the issuance of stand-alone letters of credit for up to $10 million , which expired on June 5, 2014 . On October 24, 2014 , NJR entered into a $100 million uncommitted line of credit agreement, with Santander Bank, N.A., which expired on October 24, 2015 . Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities. NJNG Short-term Debt NJNG had a $250 million unsecured committed credit facility, which was due to expire in August 2014 . On May 15, 2014 , NJNG replaced the facility with a new $250 million , five -year, revolving, unsecured credit facility expiring in May 2019 . The new NJNG Credit Facility permits the borrowing of revolving loans and swing loans, as well as the issuance of letters of credit. It also permits an increase to the facility, from time to time, with the existing or new lenders, in a minimum of $15 million increments up to a maximum of $50 million at the lending banks' discretion. As of September 30, 2015 , NJNG has two letters of credit outstanding for $731,000 . NJNG's letters of credit are used as collateral for remediation projects and expire on August 11, 2016 . These letters of credit reduce the amount available under NJNG's committed credit facility by the same amount. NJNG does not anticipate that these letters of credit will be drawn upon by the counterparty, and will be renewed as necessary. NJNG entered into the JPMC Facility, which was a $100 million four -year credit facility that was due to expire in August 2015 , to provide liquidity support in the event of a failed remarketing of the EDA Bonds and to ensure payment of principal and interest. The JPMC Facility was terminated on September 26, 2014 , as a result of the change in the interest rate mode on the EDA bonds. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION In January 2007, the NJR 2007 Stock Award and Incentive Plan replaced the 2002 Employee and Outside Director Long-Term Incentive Plan. Shares have been issued in the form of options, performance shares, restricted stock and deferred retention stock. The Outside Director Stock Compensation Plan allows for the issuance of non-restricted shares to non-employee directors. As of September 30, 2015 , 2.9 million and 31,704 shares remain available for future issuance to employees and directors, respectively. The following table summarizes all stock-based compensation expense recognized during the following fiscal years: (Thousands) 2015 2014 2013 Stock-based compensation expense: Performance share awards $ 2,473 $ 2,509 $ 1,049 Restricted and non-restricted stock 1,899 1,664 1,081 Deferred retention stock 5,273 13,643 1,326 Compensation expense included in operation and maintenance expense 9,645 17,816 3,456 Income tax benefit (3,940 ) (7,278 ) (1,412 ) Total, net of tax $ 5,705 $ 10,538 $ 2,044 Stock Options The following table summarizes the stock option activity for the past three fiscal years: Shares Weighted Average Exercise Price Outstanding at September 30, 2012 163,250 $14.36 Granted — — Exercised (30,000 ) $12.54 Forfeited — — Outstanding at September 30, 2013 133,250 $14.77 Granted — — Exercised (85,000 ) $13.13 Forfeited — — Outstanding at September 30, 2014 48,250 $15.00 Granted — — Exercised (48,250 ) $15.00 Forfeited — — Outstanding at September 30, 2015 — — Exercisable at September 30, 2015 — — Exercisable at September 30, 2014 48,250 $15.00 Exercisable at September 30, 2013 133,250 $14.77 There are no costs related to outstanding options for the stock options listed above. During fiscal 2015 and fiscal 2014 , NJR received proceeds of $724,000 and $1.2 million , respectively, from the exercise of stock options. Performance Shares In fiscal 2015, the Company granted to various officers 41,214 performance shares, which are market condition awards that vest on September 30, 2017 , subject to the Company meeting certain performance conditions. In fiscal 2015, the Company also granted to various officers 61,576 performance shares, of which 34,622 vest on September 30, 2017 and 26,954 vest annually over a three year period beginning on September 30, 2015 , both of which are subject to the Company meeting certain performance conditions. In fiscal 2014, the Company granted to various officers 69,154 performance shares, which are market condition awards that vest on September 30, 2016 , subject to the Company meeting certain performance conditions. In fiscal 2014, the Company also granted to various officers 78,574 performance shares, of which 50,480 vest in September 30, 2016 and 28,094 vest annually over a three year period beginning in September 2014 , both of which are subject to the Company meeting certain performance conditions. In fiscal 2013, the Company granted to various officers 99,808 performance shares, which are market condition awards that vested on September 30, 2015 . There is $3.2 million of deferred compensation related to unvested performance shares that is expected to be recognized over the next two years. The following table summarizes the performance share activity under the NJR 2007 Stock Award and Incentive Plan for the past three fiscal years: Shares (1) Weighted Average Grant Date Fair Value Non-vested and outstanding at September 30, 2012 169,486 $16.63 Granted 99,808 $15.37 Vested — — Cancelled/forfeited (2) (112,650 ) $13.12 Non-vested and outstanding at September 30, 2013 156,644 $18.35 Granted 147,728 $20.28 Vested (3) (56,836 ) $23.59 Cancelled/forfeited — — Non-vested and outstanding at September 30, 2014 247,536 $18.30 Granted 102,790 $28.25 Vested (4) (112,446 ) $17.10 Cancelled/forfeited (5) (23,416 ) $17.98 Non-vested and outstanding at September 30, 2015 214,464 $23.40 (1) The number of common shares issued related to certain performance shares may range from zero to 150 percent of the number of shares shown in the table above based on the Company's achievement of performance goals . (2) As certified by the Company's Leadership and Compensation Committee on November 12, 2013, the number of common shares granted in fiscal 2011 related to performance shares and market condition shares earned was zero . The number represented on this line is the target number of 100 percent . See footnote (1) above. (3) As certified by the Company's Leadership and Compensation Committee on November 11, 2014, the number of common shares related to performance shares earned was 150 percent , or 85,254 shares, excluding accumulated dividends. The number represented on this line is the target number of 100 percent . See footnote (1) above. (4) As certified by the Company's Leadership and Compensation Committee on November 10, 2015, the number of common shares related to performance shares earned was 120 percent , or 112,918 shares, excluding accumulated dividends. The number represented on this line is the target number of 100 percent . See footnote (1) above. Also included in the vested number are 9,364 shares certified by the Leadership and Compensation Committee on November 11, 2014 and 8,984 shares certified by the Leadership and Compensation Committee on November 10, 2015. (5) As certified by the Company's Leadership and Compensation Committee on November 10, 2015, 9,364 shares were canceled due to not achieving a certain performance target. The remainder were forfeitures due to individuals departing the company. The Company measures compensation expense related to performance shares based on the fair value of these awards at their date of grant. In accordance with ASC 718, Compensation - Stock Compensation , compensation expense for market condition grants are recognized for awards granted, and are not adjusted based on actual achievement of the performance goals. The Company estimated the fair value of these grants on the date of grant using a lattice model. Performance condition grants are initially fair valued at the company's stock price on grant date, and are subsequently adjusted for actual achievement of the performance goals. Restricted Stock In fiscal 2015 , the Company granted 48,542 shares of restricted stock that vest annually over a three year period beginning in October 2015 . In fiscal 2015 , the Company also granted 10,236 shares of restricted stock that will vest October 15, 2017 and 3,194 that vested September 30, 2015 . In fiscal 2014, the Company granted 33,356 shares of restricted stock that vest annually over a three year period beginning in October 2014 . In fiscal 2013, the Company granted 4,278 shares of restricted stock that vested in October 2015 . There is $798,000 of deferred compensation related to unvested restricted stock shares that is expected to be recognized over the next two years. The following table summarizes the restricted stock activity under the NJR 2007 Stock Award and Incentive Plan for the past three fiscal years: Shares Weighted Average Grant Date Fair Value Total Fair Value of Vested Shares (in Thousands) Non-vested and outstanding at September 30, 2012 118,692 $20.20 — Granted 4,278 $20.31 — Vested (39,359 ) $19.55 $ 888 Cancelled/forfeited (5,100 ) $20.37 — Non-vested and outstanding at September 30, 2013 78,511 $20.53 — Granted 33,356 $22.78 — Vested (68,460 ) $20.37 $ 1,534 Cancelled/forfeited (1,916 ) $20.37 — Non-vested and outstanding at September 30, 2014 41,491 $22.60 — Granted 61,972 $29.41 — Vested (18,170 ) $24.45 $ 510 Cancelled/forfeited (3,801 ) $26.79 — Non-vested and outstanding at September 30, 2015 81,492 $27.17 — Deferred Retention Stock Deferred retention stock awards vest immediately when granted, with shares delivered at a future date in accordance with the terms of the underlying agreements. The expense for these awards is recognized in the fiscal year in which services are rendered. The related shares are granted upon approval by the Board of Directors, which generally occurs subsequent to the fiscal year end. The following table summarizes the deferred retention stock award under the NJR 2007 Stock Award and Incentive Plan for the past three fiscal years: Shares Weighted Average Grant Date Fair Value Total Fair Value of Vested Shares (in Thousands) Outstanding at September 30, 2012 98,342 $23.59 — Granted/Vested 134,590 $20.31 — Delivered — — — Forfeited (9,346 ) $21.72 — Outstanding at September 30, 2013 223,586 $21.69 — Granted/Vested 57,970 $22.88 — Delivered — — — Forfeited (4,774 ) $21.47 — Outstanding at September 30, 2014 276,782 $21.95 — Granted/Vested 462,790 $29.32 — Delivered (95,098 ) $23.62 $ 2,519 Forfeited (11,744 ) $24.69 — Outstanding at September 30, 2015 632,730 $27.03 — Non-Employee Director Stock Non-employee director compensation includes an annual retainer that is awarded in stock. In January 2015 , the company issued 26,122 shares for the annual retainer with a weighted average fair value of $30.63 per share. The shares vested immediately and are amortized to expense over a 12-month period. As of September 30, 2015 , there is $200,000 of expense remaining to be recognized through December 31, 2015 . In January 2014 and January 2013 , the company issued 31,696 and 32,524 shares for the annual retainer with weighted average fair values of $22.40 and $19.99 , respectively. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension and Other Postemployment Benefit Plans The Company has two trusteed, noncontributory defined benefit retirement plans covering eligible regular represented and nonrepresented employees with more than one year of service. Defined benefit plan benefits are based on years of service and average compensation during the highest 60 consecutive months of employment. The Company also provides postemployment medical and life insurance benefits to employees who meet certain eligibility requirements. All represented employees of NJRHS hired on or after October 1, 2000, non-represented employees hired on or after October 1, 2009, and NJNG represented employees hired on or after January 1, 2012, are covered by an enhanced defined contribution plan instead of the defined benefit plan. Participation in the postemployment medical and life insurance plan was also frozen to new employees as of the same dates, with the exception of new NJRHS represented employees, for which benefits were frozen beginning April 3, 2012. The Company maintains an unfunded nonqualified PEP that was established to provide employees with the full level of benefits as stated in the qualified plan without reductions due to various limitations imposed by the provisions of federal income tax laws and regulations. There were no plan assets in the nonqualified plan due to the nature of the plan. During the fourth quarter of fiscal 2014, the Company implemented a voluntary early retirement program to certain employees and recognized an expense of approximately $5 million , including pension and postemployment benefit costs of $3.5 million related to special termination benefits and $1.5 million related to other severance benefits. The Company's funding policy for its pension plans is to contribute at least the minimum amount required by the Employee Retirement Income Security Act of 1974, as amended. In fiscal 2015 and 2014 , the Company had no minimum funding requirements. The Company made no discretionary contributions to the pension plans in fiscal 2015 or 2014. The Company plans to make a discretionary contribution of $30 million during the first quarter of fiscal 2016 to improve the funded status of the pension plans based on current actuarial assumptions, which includes the most recent mortality table change. The Company does not expect to be required to make additional contributions to fund the pension plans over the following two fiscal years based on current actuarial assumptions; however, funding requirements are uncertain and can depend significantly on changes in actuarial assumptions, returns on plan assets and changes in the demographics of eligible employees and covered dependents. There are no Federal requirements to pre-fund OPEB benefits. However, the Company is required to fund certain amounts due to regulatory agreements with the BPU. The Company contributed $5.7 million and $5 million , in fiscal 2015 and 2014 , respectively, and estimates that it will contribute between $3 million to $5 million over the next five years . Additional contributions may be required based on market conditions and changes to assumptions. The following summarizes the changes in the funded status of the plans and the related liabilities recognized on the Consolidated Balance Sheets as of September 30 : Pension (1) OPEB (Thousands) 2015 2014 2015 2014 Change in Benefit Obligation Benefit obligation at beginning of year $ 227,699 $ 198,826 $ 127,773 $ 112,771 Service cost 7,485 6,143 4,253 3,923 Interest cost 10,199 10,066 5,739 5,734 Plan participants' contributions 47 47 60 38 Special termination benefits — 2,814 — 648 Actuarial loss 17,418 21,440 3,891 6,792 Benefits paid, net of retiree subsidies received (6,861 ) (11,637 ) (3,349 ) (2,133 ) Benefit obligation at end of year $ 255,987 $ 227,699 $ 138,367 $ 127,773 Change in plan assets Fair value of plan assets at beginning of year $ 211,653 $ 200,236 $ 56,909 $ 49,555 Actual return on plan assets (5,813 ) 22,923 (1,799 ) 4,590 Employer contributions 97 85 5,672 4,970 Benefits paid, net of plan participants' contributions (6,814 ) (11,591 ) (3,513 ) (2,206 ) Fair value of plan assets at end of year $ 199,123 $ 211,653 $ 57,269 $ 56,909 Funded status $ (56,864 ) $ (16,046 ) $ (81,098 ) $ (70,864 ) Amounts recognized on Consolidated Balance Sheets Postemployment employee benefit (liability) Current $ (71 ) $ (100 ) $ (477 ) $ (136 ) Noncurrent (56,793 ) (15,946 ) (80,621 ) (70,728 ) Total $ (56,864 ) $ (16,046 ) $ (81,098 ) $ (70,864 ) (1) Includes the Company's PEP. The Company recognizes a liability for its underfunded benefit plans as required by the Compensation - Retirement Benefits Topic of the ASC. The Company records the offset to regulatory assets for the portion of liability relating to NJNG and to accumulated other comprehensive income for the portion of the liability related to its unregulated operations. The following table summarizes the amounts recognized in regulatory assets and accumulated other comprehensive income as of September 30 : Regulatory Assets Accumulated Other Comprehensive Income (Loss) Pension OPEB Pension OPEB Balance at September 30, 2013 $ 56,664 $ 41,812 $ 14,427 $ (2,142 ) Amounts arising during the period: Net actuarial loss 10,563 4,277 6,243 2,098 Amounts amortized to net periodic costs: Net actuarial (loss) gain (5,326 ) (2,607 ) (3,085 ) 107 Prior service (cost) credit (107 ) 303 (4 ) 54 Net transition obligation — (11 ) — — Balance at September 30, 2014 $ 61,794 $ 43,774 $ 17,581 $ 117 Amounts arising during the period: Net actuarial loss 30,579 9,563 9,742 1,103 Amounts amortized to net periodic costs: Net actuarial (loss) (5,305 ) (2,911 ) (1,680 ) (32 ) Prior service (cost) credit (108 ) 311 (3 ) 54 Net transition obligation — — — — Balance at September 30, 2015 $ 86,960 $ 50,737 $ 25,640 $ 1,242 The amounts in regulatory assets and accumulated other comprehensive income not yet recognized as components of net periodic benefit cost as of September 30 are: Regulatory Assets Accumulated Other Comprehensive Income (Loss) Pension OPEB Pension OPEB (Thousands) 2015 2014 2015 2014 2015 2014 2015 2014 Net actuarial loss $ 86,070 $ 60,797 $ 52,462 $ 45,809 $ 25,632 $ 17,570 $ 1,495 $ 425 Prior service cost (credit) 890 997 (1,725 ) (2,035 ) 8 11 (253 ) (308 ) Net transition obligation — — — — — — — — Total $ 86,960 $ 61,794 $ 50,737 $ 43,774 $ 25,640 $ 17,581 $ 1,242 $ 117 Amounts included in regulatory assets and accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost in fiscal 2016 are as follows: Regulatory Assets Accumulated Other Comprehensive Income (Loss) (Thousands) Pension OPEB Pension OPEB Net actuarial loss $ 5,606 $ 3,175 $ 1,675 $ 99 Prior service cost (credit) 108 (311 ) 3 (54 ) Total $ 5,714 $ 2,864 $ 1,678 $ 45 The accumulated benefit obligation for the pension plans, including the PEP, exceeded the fair value of plan assets. The projected benefit and accumulated benefit obligations and the fair value of plan assets as of September 30, are as follows: Pension (Thousands) 2015 2014 Projected benefit obligation $ 255,987 $ 227,699 Accumulated benefit obligation $ 217,937 $ 198,058 Fair value of plan assets $ 199,123 $ 211,653 The components of the net periodic cost for pension benefits, including the Company's PEP, and OPEB costs (principally health care and life insurance) for employees and covered dependents for fiscal years ended September 30, are as follows: Pension OPEB (Thousands) 2015 2014 2013 2015 2014 2013 Service cost $ 7,485 $ 6,143 $ 6,871 $ 4,253 $ 3,923 $ 4,686 Interest cost 10,199 10,066 8,942 5,739 5,734 5,148 Expected return on plan assets (17,090 ) (15,475 ) (14,825 ) (4,977 ) (4,174 ) (3,653 ) Recognized actuarial loss 6,985 5,596 7,646 2,943 2,500 3,857 Prior service cost (credit) amortization 111 111 108 (364 ) (357 ) (355 ) Recognized net initial obligation — — — — 11 26 Net periodic benefit cost $ 7,690 $ 6,441 $ 8,742 $ 7,594 $ 7,637 $ 9,709 Special termination benefit — 2,814 — — 648 — Net periodic benefit cost recognized as expense $ 7,690 $ 9,255 $ 8,742 $ 7,594 $ 8,285 $ 9,709 The weighted average assumptions used to determine benefit costs during the fiscal year and obligations as of September 30, are as follows: Pension OPEB 2015 2014 2013 2015 2014 2013 Benefit costs: Discount rate 4.55 % 5.15 % 4.30 % 4.55 % 5.15 % 4.30 % Expected asset return 8.75 % 8.25 % 8.50 % 8.75 % 8.25 % 8.50 % Compensation increase 3.25 % 3.25 % 3.25 % 3.50 % 3.50 % 3.25 % Obligations: Discount rate 4.50 % 4.55 % 5.15 % 4.60/4.55% (1) 4.55 % 5.15 % Compensation increase 3.25/3.50% (1) 3.25/3.50% (1) 3.25 % 3.50 % 3.50 % 3.25 % (1) Percentages for represented and nonrepresented plans, respectively. In selecting an assumed discount rate, the Company uses a modeling process that involves selecting a portfolio of high-quality corporate debt issuances (AA- or better) whose cash flows (via coupons or maturities) match the timing and amount of the Company's expected future benefit payments. The Company considers the results of this modeling process, as well as overall rates of return on high-quality corporate bonds and changes in such rates over time, to determine its assumed discount rate. Information relating to the assumed HCCTR used to determine expected OPEB benefits as of September 30, and the effect of a one percent change in the rate, are as follows: ($ in thousands) 2015 2014 2013 HCCTR 6.7 % 7.1 % 7.3 % Ultimate HCCTR 4.8 % 4.8 % 4.8 % Year ultimate HCCTR reached 2022 2022 2022 Effect of a 1 percentage point increase in the HCCTR on: Year-end benefit obligation $ 26,025 $ 20,965 $ 18,008 Total service and interest cost $ 2,026 $ 1,885 $ 2,156 Effect of a 1 percentage point decrease in the HCCTR on: Year-end benefit obligation $ (20,427 ) $ (16,932 ) $ (14,629 ) Total service and interest costs $ (1,593 ) $ (1,493 ) $ (1,675 ) The Company's investment objective is a long-term real rate of return on assets before permissible expenses that is approximately 6 percent greater than the assumed rate of inflation as measured by the consumer price index. The expected long-term rate of return is based on the asset categories in which the Company invests and the current expectations and historical performance for these categories. The mix and targeted allocation of the pension and OPEB plans' assets are as follows: 2016 Assets at Target September 30, Asset Allocation Allocation 2015 2014 U.S. equity securities 40 % 38 % 39 % International equity securities 20 19 20 Fixed income 40 43 41 Total 100 % 100 % 100 % The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years: (Thousands) Pension OPEB 2016 $ 7,958 $ 3,755 2017 $ 8,383 $ 4,122 2018 $ 9,106 $ 4,524 2019 $ 9,807 $ 5,005 2020 $ 10,542 $ 5,513 2021 - 2025 $ 67,414 $ 35,509 The Company 's OPEB plans provide prescription drug benefits that are actuarially equivalent to those provided by Medicare Part D. Therefore, under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, the Company qualifies for federal subsidies. The estimated subsidy payments are: Estimated Subsidy Payment Fiscal Year (Thousands) 2016 $210 2017 $231 2018 $253 2019 $276 2020 $304 2021 - 2025 $2,067 Pension and OPEB assets held in the master trust, measured at fair value, as of September 30, are summarized as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) (Thousands) Pension OPEB Assets 2015 2014 2015 2014 Money market funds $ — $ 50 $ 2,237 $ 1,154 Registered Investment Companies: Equity Funds Large Cap Index 63,285 70,358 17,460 19,092 Extended Market Index 11,827 12,475 3,762 3,733 International Stock 37,353 41,833 10,261 10,309 Fixed Income Funds Emerging Markets 8,857 10,029 2,617 2,798 Core Fixed Income — — 7,148 6,522 Opportunistic Income — — 4,179 3,960 Ultra Short Duration — — 3,960 3,761 High Yield Bond Fund 20,532 21,054 5,645 5,580 Long Duration Fund 57,269 55,854 — — Total assets at fair value $ 199,123 $ 211,653 $ 57,269 $ 56,909 The Plan had no Level 2 or Level 3 fair value measurements during fiscal 2015 and 2014 , and there have been no changes in valuation methodologies as of September 30, 2015 . The following is a description of the valuation methodologies used for assets measured at fair value: Money Market funds — Represents bank balances and money market funds that are valued based on the net asset value of shares held at year end. Registered Investment Companies — Equity and fixed income funds valued at the net asset value of shares held by the plan at year end as reported on the active market on which the individual securities are traded. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Defined Contribution Plan The Company offers a Savings Plan to eligible employees. As of January 1, 2015, the Company matches 65 percent of participants' contributions up to 6 percent of base compensation. Represented NJRHS employees, non-represented employees hired on or after October 1, 2009 , and NJNG represented employees hired on or after January 1, 2012 , are eligible for an employer special contribution of between 3 and 4 percent of base compensation, depending on years of service, into the Savings Plan on their behalf. The amount expensed and contributed for the matching provision of the Savings Plan was $2.6 million in fiscal 2015 , $2.2 million in fiscal 2014 and $1.9 million in fiscal 2013 . The amount contributed for the employer special contribution of the Savings Plan was $461,000 in fiscal 2015 , $374,000 in fiscal 2014 and $193,000 in fiscal 2013 . |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS The Company recognizes AROs when the legal obligation to retire an asset has been incurred and a reasonable estimate of fair value can be made. Accordingly, NJR recognizes AROs related to the costs associated with cutting and capping its main and service gas distribution pipelines of NJNG, which is required by New Jersey law when taking such gas distribution pipeline out of service. NJR also recognizes AROs related to NJRCEV's solar and wind assets when there are decommissioning provisions in NJRCEV's lease agreements that require removal of the asset. Accretion amounts associated with NJNG's ARO are not reflected as an expense, but rather are deferred as a regulatory asset and netted against NJNG's regulatory liabilities, for presentation purposes, on the Consolidated Balance Sheets. Accretion amounts associated with NJRCEV's ARO are recognized as a component of operations and maintenance expense on NJR's Consolidated Statements of Operations. The following is an analysis of the change in the Company's AROs for the fiscal year ended September 30 : (Thousands) 2015 2014 Balance at October 1 $ 30,495 $ 28,711 Accretion 2,262 2,012 Additions 2,185 925 Revisions in estimated cash flows (14,763 ) — Retirements (1,034 ) (1,153 ) Balance at period end $ 19,145 $ 30,495 The fiscal 2015 revision in estimated cash flows in the table above reflects a more accurate projection of settlement of NJNG's AROs associated with its main and service assets, which is more in line with the calculated survival curves used in a recent NJNG deprecation study. The change in settlement timing, as well as related changes in the inflation and discount rates used to measure the expected retirement costs, resulted in the $14.8 million decrease in NJNG's ARO liability. Accretion for the next five years is estimated to be as follows: (Thousands) Fiscal Year Ended September 30, Estimated Accretion 2016 $ 1,211 2017 1,273 2018 1,340 2019 1,403 2020 1,469 Total $ 6,696 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES A reconciliation of the U.S. federal statutory rate of 35 percent to the effective rate from operations for the fiscal years ended September 30, 2015 , 2014 and 2013 is as follows: (Thousands) 2015 2014 2013 Statutory income tax expense $ 84,239 $ 67,834 $ 52,661 Change resulting from State income taxes 8,233 7,785 5,168 Depreciation and cost of removal (5,149 ) (4,437 ) (5,769 ) Investment/production tax credits (30,096 ) (23,083 ) (18,749 ) Basis adjustment of solar assets due to ITC 4,861 3,959 3,225 Other (2,364 ) (218 ) (961 ) Income tax provision $ 59,724 $ 51,840 $ 35,575 Effective income tax rate 24.8 % 26.8 % 23.6 % The income tax provision (benefit) from operations consists of the following: (Thousands) 2015 2014 2013 Current Federal $ 20,492 $ 37,904 $ 12,248 State 5,473 11,096 1,763 Deferred Federal 56,480 24,963 34,127 State 7,375 960 6,186 Investment/production tax credits (30,096 ) (23,083 ) (18,749 ) Income tax provision $ 59,724 $ 51,840 $ 35,575 The temporary differences, which give rise to deferred tax assets and (liabilities), consist of the following: (Thousands) 2015 2014 Deferred tax assets Investment tax credits (1) $ 24,770 $ 10,341 Deferred service contract revenue 3,440 3,299 Incentive compensation 10,369 14,632 Fair value of derivatives — 14,350 State net operating losses 12,757 8,962 Conservation incentive plan 2,091 2,312 Underrecovered gas costs 2,827 — Other 12,762 10,078 Total deferred tax assets $ 69,016 $ 63,974 Deferred tax liabilities Property related items $ (440,420 ) $ (371,017 ) Remediation costs (7,641 ) (12,429 ) Equity investments (37,930 ) (35,474 ) Post employment benefits (2,976 ) (10,268 ) Fair value of derivatives (3,180 ) — Under-recovered gas costs — (5,056 ) Other (13,409 ) (11,751 ) Total deferred tax liabilities $ (505,556 ) $ (445,995 ) Total net deferred tax liabilities $ (436,540 ) $ (382,021 ) (1) Includes $2.7 million and $2.8 million for NJNG for fiscal 2015 and fiscal 2014 , respectively , which is being amortized over the life of the related assets and $22.1 million and $7.5 million for NJRCEV for fiscal 2015 and fiscal 2014 , respectively , which is ITC carryforward. The Company and one or more of its subsidiaries files or expects to file income and/or franchise tax returns in the U.S. Federal jurisdiction and in the states of New Jersey, New York, Connecticut, Texas, Delaware, Pennsylvania, North Carolina, Louisiana, Montana, Kansas, Iowa and the City of New York. The Company neither files in, nor believes it has a filing requirement in, any foreign jurisdictions, except Canada. The Company's federal income tax returns through fiscal 2010 have either been reviewed by the IRS, or the related statute of limitations has expired and all matters have been settled. The IRS is currently examining tax returns for fiscal 2011 through fiscal 2013 . The State of New Jersey is currently conducting a sales and use tax examination for the period from July 1, 2011 through June 30, 2015 , and a corporate business tax examination for the period from October 1, 2009 through September 30, 2013 . All periods subsequent to those ended September 30, 2010 , are statutorily open to examination in all applicable states with the exception of New York. In New York, all periods subsequent to September 30, 2012 , are statutorily open to examination. In May 2013, the State of New Jersey completed their audit of NJRES for the periods ended September 30, 2008 , 2009 and 2010 . The audit resulted in a refund of $1.1 million that was related primarily to state apportionment differences. NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with unrecognized tax benefits. As of September 30, 2015 and 2014 , based on its analysis, the Company determined there was no need to recognize any liabilities associated with uncertain tax positions. As of September 30, 2015 , the Company has state income tax net operating losses of approximately $218.1 million , which generally have a life of 20 years. The company has recorded a deferred state tax asset of approximately $12.8 million on the Consolidated Balance Sheets, reflecting the tax benefit associated with the loss carryforwards. In addition, as of September 30, 2015 and 2014 , the Company has recorded a valuation allowance of $176,000 and $212,000 , respectively, because it believes that it is more likely than not that the net operating losses related to CR&R and NJR will expire unused. In addition, as of September 30, 2015 , the Company has an ITC/PTC carryforward of approximately $22.1 million , which has a life of 20 years. This carryforward will begin to expire in fiscal 2035. The Company expects to utilize this entire carryforward in fiscal 2016. The deferred tax assets will expire as follows: (Thousands) Fiscal years 2016 - 2019 $ — Fiscal years 2020 - 2024 — Fiscal years 2025 - 2029 43 Fiscal years 2030 - 2035 34,814 Total $ 34,857 In September 2013, the U.S. Department of the Treasury and the IRS released final regulations that provide guidance on applying Section 263(a) of the Internal Revenue Code to amounts paid to acquire, produce, or improve tangible property, as well as rules for materials and supplies. Implementation of these final regulations in September 2013 had no material impact on NJR's and its subsidiaries' results of operations, financial condition or cash flow. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Cash Commitments NJNG has entered into long-term contracts, expiring at various dates through October 2032 , for the supply, storage and transportation of natural gas. These contracts include annual fixed charges of approximately $86.9 million at current contract rates and volumes, which are recoverable through BGSS. For the purpose of securing storage and pipeline capacity, NJRES enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by NJRES to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one to 10 years. Demand charges are established by interstate storage and pipeline operators and are regulated by the FERC. These demand charges represent commitments to pay storage providers or pipeline companies for the right to store and/or transport natural gas utilizing their respective assets. Commitments as of September 30, 2015 , for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2016 2017 2018 2019 2020 Thereafter NJRES: Natural gas purchases $ 230,355 $ 4,438 $ — $ — $ — $ — Storage demand fees 27,734 12,162 7,591 4,473 3,672 3,270 Pipeline demand fees 82,777 35,118 15,440 7,513 4,256 3,900 Sub-total NJRES $ 340,866 $ 51,718 $ 23,031 $ 11,986 $ 7,928 $ 7,170 NJNG: Natural gas purchases $ 64,834 $ 71,248 $ 11,516 $ — $ — $ — Storage demand fees 29,019 25,332 15,871 11,079 5,345 — Pipeline demand fees 57,840 81,767 91,591 90,198 89,431 783,029 Sub-total NJNG $ 151,693 $ 178,347 $ 118,978 $ 101,277 $ 94,776 $ 783,029 Total (1) $ 492,559 $ 230,065 $ 142,009 $ 113,263 $ 102,704 $ 790,199 (1) Does not include amounts related to intercompany asset management agreements between NJRES and NJNG. As of September 30, 2015 , the Company's future minimum lease payments under various operating leases will not be more than $2.4 million annually for the next five years and $36.6 million in the aggregate for all years thereafter. Guarantees As of September 30, 2015 , there were NJR guarantees covering approximately $286.3 million of natural gas purchases and NJRES demand fee commitments not yet reflected in accounts payable on the Consolidated Balance Sheets. Legal Proceedings Manufactured Gas Plant Remediation NJNG is responsible for the remedial cleanup of five MGP sites, dating back to gas operations in the late 1800s and early 1900s, which contain contaminated residues from former gas manufacturing operations. NJNG is currently involved in administrative proceedings with the NJDEP, and participating in various studies and investigations by outside consultants, to determine the nature and extent of any such contaminated residues and to develop appropriate programs of remedial action, where warranted, under Administrative Consent Orders or Memoranda of Agreement with the NJDEP. NJNG may recover its remediation expenditures, including carrying costs, over rolling seven -year periods pursuant to a RA approved by the BPU. In February 2012 , NJNG filed its 2011 SBC filing, requesting approval of its MGP expenditures incurred through June 30, 2011 , which would continue its existing overall SBC rate and recovery at approximately $20 million . In July 2013 , NJNG requested approval of its MGP expenditures incurred through June 2013 , as well as a reduction in the RA factor to $18.7 million annually. The petition was provisionally approved by the BPU on November 22, 2013 , with rates effective December 1, 2013 , and was approved on a final basis in July 2014 . In September 2014, NJNG requested approval of its MGP expenditures incurred through June 2014 and to recover $8.5 million annually related to the SBC RA factor. The petition was approved by the BPU on May 19, 2015 , with rates effective June 1, 2015 . As of September 30, 2015 , $18.9 million of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Consolidated Balance Sheets. NJNG periodically, and at least annually, performs an environmental review of the MGP sites, including a review of potential liability for investigation and remedial action. NJNG estimated at the time of the most recent review that total future expenditures to remediate and monitor the five MGP sites for which it is responsible, including potential liabilities for Natural Resource Damages that might be brought by the NJDEP for alleged injury to groundwater or other natural resources concerning these sites, will range from approximately $150.9 million to $242.1 million . NJNG's estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG's policy to accrue the lower end of the range. Accordingly, as of September 30, 2015 , NJNG recorded an MGP remediation liability and a corresponding regulatory asset of $180.4 million on the Consolidated Balance Sheets, based on the most likely amount. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and any insurance recoveries. NJNG will continue to seek recovery of MGP-related costs through the RA. If any future regulatory position indicates that the recovery of such costs is not probable, the related non-recoverable costs would be charged to income in the period of such determination. General The Company is party to various other claims, legal actions and complaints arising in the ordinary course of business. In the Company's opinion, the ultimate disposition of these matters will not have a material effect on its financial condition, results of operations or cash flows. |
BUSINESS SEGMENT AND OTHER OPER
BUSINESS SEGMENT AND OTHER OPERATIONS DATA | 12 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT AND OTHER OPERATIONS DATA | BUSINESS SEGMENT AND OTHER OPERATIONS DATA NJR organizes its businesses based on its products and services as well as the regulatory environment. As a result, the Company manages the businesses through the following reportable segments and other operations: the Natural Gas Distribution segment consists of regulated energy and off-system, capacity and storage management operations; the Energy Services segment consists of unregulated wholesale energy operations; the Clean Energy Ventures segment consists of capital investments in distributed power projects; the Midstream segment consists of NJR's investments in natural gas transportation and storage facilities; and the Home Services and Other operations consist of heating, cooling and water appliance sales, installations and services, commercial real estate development, other investments and general corporate activities. Information related to the Company's various business segments and other operations is detailed below: (Thousands) Fiscal Years Ended September 30, 2015 2014 2013 Operating revenues Natural Gas Distribution External customers $ 781,970 $ 819,415 $ 787,987 Energy Services External customers (1) 1,872,781 2,858,703 2,351,084 Intercompany 61,526 72,114 5,494 Clean Energy Ventures External customers 32,513 14,575 11,988 Subtotal 2,748,790 3,764,807 3,156,553 Home Services and Other External customers 46,723 45,452 47,009 Intercompany 1,980 1,235 945 Eliminations (63,506 ) (73,349 ) (6,439 ) Total $ 2,733,987 $ 3,738,145 $ 3,198,068 Depreciation and amortization Natural Gas Distribution $ 43,085 $ 40,540 $ 37,999 Energy Services 90 59 44 Clean Energy Ventures 17,297 11,295 8,477 Midstream 6 6 6 Subtotal 60,478 51,900 46,526 Home Services and Other 952 846 786 Eliminations (31 ) (4 ) (2 ) Total $ 61,399 $ 52,742 $ 47,310 Interest income (2) Natural Gas Distribution $ 336 $ 999 $ 653 Energy Services 438 222 1 Clean Energy Ventures 26 — — Midstream 977 950 1,065 Subtotal 1,777 2,171 1,719 Home Services and Other 217 1 2 Eliminations (1,414 ) (950 ) (884 ) Total $ 580 $ 1,222 $ 837 (1) Includes sales to Canada, which accounted for 3.7 , 3.3 and 5.9 percent of total operating revenues during fiscal 2015 , 2014 and 2013 , respectively . (2) Included in other income, net on the Consolidated Statement of Operations. (Thousands) Fiscal Years Ended September 30, 2015 2014 2013 Interest expense, net of capitalized interest Natural Gas Distribution $ 18,534 $ 16,683 $ 14,995 Energy Services 1,209 1,725 2,534 Clean Energy Ventures 7,635 5,300 3,387 Midstream 717 1,396 1,962 Subtotal 28,095 25,104 22,878 Home Services and Other 49 359 1,101 Eliminations (423 ) — — Total $ 27,721 $ 25,463 $ 23,979 Income tax provision (benefit) Natural Gas Distribution $ 39,544 $ 39,374 $ 35,399 Energy Services 39,043 26,458 10,516 Clean Energy Ventures (26,968 ) (21,937 ) (17,711 ) Midstream 6,849 5,227 4,993 Subtotal 58,468 49,122 33,197 Home Services and Other 1,551 2,460 2,550 Eliminations (295 ) 258 (172 ) Total $ 59,724 $ 51,840 $ 35,575 Equity in earnings of affiliates Midstream $ 17,487 $ 14,078 $ 13,868 Eliminations (4,078 ) (3,546 ) (3,519 ) Total $ 13,409 $ 10,532 $ 10,349 Net financial earnings Natural Gas Distribution $ 76,287 $ 74,204 $ 73,846 Energy Services 42,122 79,735 19,311 Clean Energy Ventures 20,101 12,654 10,060 Midstream 9,780 7,498 7,199 Subtotal 148,290 174,091 110,416 Home Services and Other 3,420 2,798 3,292 Eliminations (207 ) (32 ) (27 ) Total $ 151,503 $ 176,857 $ 113,681 Capital expenditures Natural Gas Distribution $ 168,875 $ 152,566 $ 137,083 Clean Energy Ventures 151,002 135,543 59,125 Subtotal 319,877 288,109 196,208 Home Services and Other 209 1,179 1,042 Total $ 320,086 $ 289,288 $ 197,250 Investments in equity investees Midstream 5,780 555 — Total $ 5,780 $ 555 $ — The Chief Executive Officer, who uses NFE as a measure of profit or loss in measuring the results of the Company's segments and operations, is the chief operating decision maker of the Company. A reconciliation of consolidated NFE to consolidated net income is as follows: (Thousands) 2015 2014 2013 Consolidated NFE $ 151,503 $ 176,857 $ 113,681 Less: Unrealized (gain) loss on derivative instruments and related transactions (38,681 ) 28,534 (9,418 ) Effects of economic hedging related to natural gas inventory (8,225 ) 26,639 7,635 Tax adjustments 17,449 (20,286 ) 655 Consolidated net income $ 180,960 $ 141,970 $ 114,809 The Company uses derivative instruments as economic hedges of purchases and sales of physical gas inventory. For GAAP purposes, these derivatives are recorded at fair value and related changes in fair value are included in reported earnings. Revenues and cost of gas related to physical gas flow is recognized when the gas is delivered to customers. Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical gas flows. Timing differences occur in two ways: • Unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical gas inventory flows; and • Unrealized gains and losses of prior periods are reclassified as realized gains and losses when derivatives are settled in the same period as physical gas inventory movements occur. NFE is a measure of the earnings based on eliminating these timing differences, to effectively match the earnings effects of the economic hedges with the physical sale of gas. Consequently, to reconcile between GAAP and NFE, current period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Additionally, realized derivative gains and losses are also included in current period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical gas flows. The Company's assets for the various business segments and business operations are detailed below: (Thousands) 2015 2014 2013 Assets at end of period: Natural Gas Distribution $ 2,331,060 $ 2,143,684 $ 2,094,940 Energy Services 269,718 457,080 468,096 Clean Energy Ventures 526,475 380,707 253,663 Midstream 182,184 153,891 153,536 Subtotal 3,309,437 3,135,362 2,970,235 Home Services and Other 94,206 82,413 85,293 Intercompany assets (1) (64,605 ) (58,971 ) (50,745 ) Total $ 3,339,038 $ 3,158,804 $ 3,004,783 (1) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS NJRES may periodically enter into storage or park and loan agreements with its affiliated FERC-regulated natural gas storage facility, Steckman Ridge, or transportation agreements with its affiliated FERC-regulated interstate pipeline, Iroquois. As of September 30, 2015 , NJRES has entered into storage and park and loan transactions with Steckman Ridge for varying terms, all of which expire by October 31, 2020 . Additionally, NJRES has transportation capacity with Iroquois that expires by October 31, 2020 . Demand fees, net of eliminations, associated with both Steckman Ridge and Iroquois were $6.6 million , $6.2 million and $6.1 million during the fiscal years ended September 30, 2015 , 2014 and 2013 , respectively. As of September 30, 2015 , NJRES had demand fees payable of $375,000 and $403,000 to Steckman Ridge and Iroquois, respectively, which are included in gas purchases payable. As of September 30, 2014 , fees payable to Steckman Ridge and Iroquois were $187,000 and $389,000 respectively. In January 2010 , NJNG entered into a 10 -year agreement effective April 1, 2010 , for 3 Bcf of firm storage capacity with Steckman Ridge. Under the terms of the agreement, NJNG incurs demand fees, at market rates, of approximately $9.3 million annually, a portion of which is eliminated in consolidation. These fees are recoverable through NJNG's BGSS mechanism and are included in regulatory assets. Additionally, NJNG has transportation capacity with Iroquois that expires by January 31, 2019 . Demand fees, net of eliminations, associated with both Steckman Ridge and Iroquois were $6.3 million , $6.4 million and $5.9 million during the fiscal years ended September 30, 2015 , 2014 and 2013 , respectively. NJNG had demand fees payable to Steckman Ridge in the amount of $775,000 as of September 30, 2015 and $775,000 as of September 30, 2014 . NJNG had fees payable to Iroquois of $48,000 and $48,000 as of September 30, 2015 and September 30, 2014 , respectively. NJNG and NJRES have entered into various asset management agreements. Under the terms of these agreements, NJNG releases certain transportation and storage contracts to NJRES for the entire term of the agreements. NJNG retains the right to purchase market priced or fixed price storage gas from NJRES. As of September 30, 2015 , NJNG and NJRES had three asset management agreements with expiration dates ranging from March 2016 through October 2016 . In the fourth quarter of fiscal 2014, NJNG entered into a 15 -year transportation precedent agreement for committed capacity of 180,000 dths per day with PennEast with an estimated service date of November 1, 2017 . |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Sep. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) A summary of financial data for each quarter of fiscal 2015 and 2014 follows. Due to the seasonal nature of the Company's businesses, quarterly amounts vary significantly during the fiscal year. In the opinion of management, the information furnished reflects all adjustments necessary for a fair presentation of the results of the interim periods. First Second Third Fourth (Thousands, except per share data) Quarter Quarter Quarter Quarter 2015 Operating revenues $ 824,124 $ 1,013,090 $ 458,467 $ 438,306 Gross margin (1) $ 225,787 $ 145,189 $ 51,217 $ 82,177 Operating income (loss) $ 168,697 $ 82,806 $ (9,309 ) $ 6,257 Net income (loss) $ 123,320 $ 60,903 $ (7,460 ) $ 4,197 Earnings (loss) per share Basic $1.46 $0.71 $(0.09) $0.05 Diluted $1.44 $0.71 $(0.09) $0.05 2014 Operating revenues $ 878,405 $ 1,579,569 $ 688,257 $ 591,914 Gross margin (1) $ 64,432 $ 315,849 $ 28,474 $ 47,375 Operating income (loss) $ 12,224 $ 247,012 $ (29,208 ) $ (28,838 ) Net income (loss) $ 7,693 $ 172,971 $ (14,274 ) $ (24,420 ) Earnings (loss) per share Basic $0.09 $2.06 $(0.17) $(0.29) Diluted $0.09 $2.04 $(0.17) $(0.29) (1) Gross margin consists of operating revenue less cost of goods sold and other direct expenses at NJR's unregulated subsidiaries and utility gross margin at NJNG, which includes natural gas revenues less natural gas purchases, sales tax, a TEFA (which was phased out in January 2014) and regulatory rider expenses. The sum of quarterly amounts may not equal the annual amounts due to rounding. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Sep. 30, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED SEPTEMBER 30, 2015 , 2014 and 2013 Valuation allowance for Deferred tax assets ADDITIONS CLASSIFICATION BEGINNING BALANCE CHARGED TO EXPENSE OTHER (1) ENDING BALANCE 2015 Allowance for doubtful accounts $ 5,357 2,859 (3,027 ) $ 5,189 2014 Allowance for doubtful accounts $ 5,330 2,504 (2,477 ) $ 5,357 2013 Regulatory asset $ 71 (71 ) — $ — Allowance for doubtful accounts $ 4,797 2,627 (2,094 ) $ 5,330 (1) Uncollectible accounts written off, less recoveries and adjustments. |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Other financial investments or contractual interests that lack the characteristics of a voting interest entity, which are commonly referred to as variable interest entities, are evaluated by NJR to determine if it has the power to direct business activities and, therefore, would be considered a controlling interest that NJR would have to consolidate. Based on those evaluations, NJR has determined that it does not have any investments in variable interest entities as of September 30, 2015 , 2014 and 2013 . Investments in entities over which the Company does not have a controlling financial interest are either accounted for under the equity method or cost method of accounting. |
Regulatory Assets and Liabilities | Regulatory Assets & Liabilities Under cost-based regulation, regulated utility enterprises generally are permitted to recover their operating expenses and earn a reasonable rate of return on their utility investment. NJNG maintains its accounts in accordance with the FERC Uniform System of Accounts as prescribed by the BPU and in accordance with the Regulated Operations Topic of the FASB ASC. As a result of the impact of the ratemaking process and regulatory actions of the BPU, NJNG is required to recognize the economic effects of rate regulation. Accordingly, NJNG capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 3 . Regulation, for a more detailed description of NJNG's regulatory assets and liabilities. |
Gas in Storage | Gas in Storage Gas in storage is reflected at average cost on the Consolidated Balance Sheets, and represents natural gas and LNG that will be utilized in the ordinary course of business. |
Demand Fees | Demand Fees For the purpose of securing adequate storage and pipeline capacity, NJRES and NJNG enter into storage and pipeline capacity contracts, which require the payment of certain demand charges to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one to 10 years. Demand charges are based on established rates as regulated by FERC. These demand charges represent commitments to pay storage providers or pipeline companies for the right to store and transport natural gas utilizing their respective assets. The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30: (Millions) 2015 2014 2013 NJRES $ 130.6 $ 122.0 $ 123.0 NJNG 80.5 92.0 92.1 Total $ 211.1 $ 214.0 $ 215.1 NJRES expenses demand charges ratably over the term of the contract. NJNG's costs associated with demand charges are included in its weighted average cost of gas. The demand charges are expensed based on NJNG's BGSS sales and recovered as part of its gas commodity component of its BGSS tariff. |
Derivative Instruments | Derivative Instruments NJR accounts for its financial instruments, such as futures, options, foreign exchange contracts, interest rate contracts, as well as its physical commodity contracts related to the purchase and sale of natural gas at NJRES, as derivatives, and therefore recognizes them at fair value on the Consolidated Balance Sheets. NJR's unregulated subsidiaries record changes in the fair value of their financial commodity derivatives in gas purchases and changes in the fair value of their physical forward contracts in gas purchases or operating revenues, as appropriate, on the Consolidated Statements of Operations. NJRES designates its foreign exchange contracts as cash flow hedges of Canadian dollar denominated gas purchases. Changes in the fair value of the effective portion of these hedges are recorded to OCI, a component of stockholders' equity, and reclassified to gas purchases on the Consolidated Statements of Operations when they settle. Ineffective portions of the cash flow hedges are recognized immediately in earnings. NJR did not have derivatives designated as fair value hedges during fiscal 2014 and 2015 . The Derivatives and Hedging Topic of the ASC also provides for a NPNS scope exception for qualifying physical commodity contracts that are intended for purchases and sales during the normal course of business and for which physical delivery is probable. NJR applies this normal scope exception to physical commodity contracts at NJNG and forward SREC contracts at NJRCEV, and therefore does not record changes in the fair value of these contracts until the contract settles and the related underlying natural gas or SREC is delivered. Gains and/or losses on NJNG's derivatives used to economically hedge its regulated natural gas supply obligations, as well as its exposure to interest rate variability, are recoverable through its BGSS, a component of its tariff. Accordingly, the offset to the change in fair value of these derivatives is recorded as a regulatory asset or liability on the Consolidated Balance Sheets. See Note 4. Derivative Instruments for additional details regarding natural gas trading and hedging activities. Fair values of exchange-traded instruments, including futures, swaps, and certain options, are based on unadjusted, quoted prices in active markets. NJR’s non-exchange-traded financial instruments, foreign currency derivatives, over-the-counter physical commodity contracts at NJRES, and NJNG’s Treasury Lock agreement are valued using observable, quoted prices for similar or identical assets when available. In establishing the fair value of contracts for which a quoted basis price is not available at the measurement date, management utilizes available market data and pricing models to estimate fair values. Fair values are subject to change in the near term and reflect management's best estimate based on a variety of factors. Estimating fair values of instruments that do not have quoted market prices requires management's judgment in determining amounts that could reasonably be expected to be received from, or paid to, a third party in settlement of the instruments. These amounts could be materially different from amounts that might be realized in an actual sale transaction. The Company is subject to commodity price risk due to fluctuations in the market price of natural gas, SRECs, and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs, and electricity. In addition, the Company may utilize foreign currency derivatives as cash flow hedges of Canadian dollar denominated gas purchases and/or sales. These contracts, with a few exceptions as described below, are accounted for as derivatives. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Consolidated Balance Sheets. For a more detailed discussion of the Company's fair value measurement policies and level disclosures associated with NJR's derivative instruments, see Note 5. Fair Value . Since NJRES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS, changes in the fair value of these derivative instruments are recorded as a component of gas purchases or operating revenues, as appropriate for NJRES, on the Consolidated Statements of Operations as unrealized gains or (losses). For NJRES at settlement, realized gains and (losses) on all financial derivative instruments are recognized as a component of gas purchases and realized gains and (losses) on all physical derivatives follow the presentation of the related unrealized gains and (losses) as a component of either gas purchases or operating revenues. NJRES also enters into natural gas transactions in Canada and, consequently, is exposed to fluctuations in the value of Canadian currency relative to the U.S. dollar. NJRES may utilize foreign currency derivatives to lock in the currency translation rate associated with natural gas transactions denominated in Canadian currency. The derivatives may include currency forwards, futures, or swaps and are accounted for as derivatives. These derivatives may be used to hedge future forecasted cash payments associated with transportation and storage contracts along with purchases of natural gas. The Company designates these foreign currency derivatives as cash flow hedges of that exposure, and expects the hedge relationship to be highly effective throughout the term. Since NJRES designates its foreign exchange contracts as cash flow hedges, changes in fair value of the effective portion of the hedge are recorded in OCI. When the foreign exchange contracts are settled and the related purchases are recognized in income, realized gains and (losses) are recognized in gas purchases on the Consolidated Statements of Operations. As of September 30, 2015 , the Company had no open foreign currency hedges. As a result of NJRES entering into transactions to borrow gas, commonly referred to as “park and loans,” an embedded derivative is created related to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Consolidated Balance Sheets, with changes in value recognized in current period earnings. Changes in fair value of NJNG's financial derivative instruments are recorded as a component of regulatory assets or liabilities on the Consolidated Balance Sheets. NJNG has received regulatory approval to defer and to recover these amounts through future BGSS rates as an increase or decrease to the cost of natural gas in NJNG's tariff for gas service. The Company elects NPNS accounting treatment on all physical commodity contracts at NJNG. These contracts are accounted for on an accrual basis. Accordingly, physical purchases are recognized in regulatory assets or liabilities on the Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is amortized in current period earnings based on the current BPU BGSS factor and therm sales. NJRCEV hedges certain of its expected production of SRECs through forward and futures contracts. The contracts require the Company to physically deliver the SRECs upon settlement. The Company elects NPNS accounting treatment on all SREC forward and futures contracts it enters into during the period. NJRCEV recognizes the related revenue upon transfer of the SREC certificate to the counterparty. In an April 2014 BPU Order, NJNG received regulatory approval to enter into interest rate risk management transactions related to long-term debt securities. On June 1, 2015, NJNG entered into a treasury lock transaction to fix a benchmark treasury rate of 3.26 percent associated with the forecasted $125 million debt issuance expected in May 2018. This forecasted debt issuance coincides with the maturity of NJNG's existing $125 million , 5.6 percent notes due May 15, 2018 . The change in fair value of NJNG's treasury lock agreement is recorded as a component of regulatory assets or liabilities on the Consolidated Balance Sheets since NJNG believes that the market value upon settlement will be recovered in future rates. Upon settlement, any gain or loss will be amortized in earnings over the life of the future debt issuance. |
Revenues | Revenues Revenues from the sale of natural gas to NJNG customers are recognized in the period that gas is delivered and consumed by customers, including an estimate for unbilled revenue. NJNG records unbilled revenue for natural gas services. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and NJNG recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for gas and the most current tariff rates. Revenues for NJRES are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur, as noted above. Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. |
Gas Purchases | Gas Purchases NJNG's tariff includes a component for BGSS, which is designed to allow NJNG to recover the cost of natural gas through rates charged to its customers and is typically revised on an annual basis. As part of computing its BGSS rate, NJNG projects its cost of natural gas, net of supplier refunds, the impact of hedging activities and credits from non-firm sales and transportation activities. NJNG subsequently recovers or credits the difference, if any, of actual costs compared with those included in current rates. Any underrecoveries or overrecoveries are either credited to customers or deferred and, subject to BPU approval, reflected in the BGSS rates in subsequent years. NJRES' gas purchases represent the total commodity contract cost, recognized upon completion of the transaction, as well as realized gains and losses of settled derivative instruments, both for physical purchase contracts and all financial contracts and unrealized gains and losses on the change in fair value of financial derivative instruments that have not yet settled. Changes in the fair value of derivatives that economically hedge the forecasted purchases of natural gas are recognized in gas purchases as they occur. |
Income Taxes | Income Taxes The Company computes income taxes using the asset and liability method, whereby deferred income taxes are generally determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. See Note 12. Income Taxes. In addition, NJR evaluates its tax positions to determine the appropriate accounting and recognition of future obligations associated with unrecognized tax benefits. The Company invests in property that qualifies for federal ITCs and utilizes the ITCs, as allowed, based on the cost and life of the assets. ITCs at NJNG are deferred and amortized as a reduction to the tax provision over the average lives of the related equipment in accordance with regulatory treatment. ITCs at NJR's unregulated subsidiaries are recognized as a reduction to income tax expense when the property is placed in service. The Company invests in property that qualifies for PTCs. PTCs are recognized as reductions to current federal income tax expense as PTCs are generated through the production activities of the assets. Changes to the federal statutes related to PTCs could have a negative impact on earnings and cash flows. |
Capitalized and Deferred Interest | Capitalized and Deferred Interest NJNG's base rates include the ability to recover AFUDC on its CWIP. For most of NJNG's construction projects, an incremental cost of equity is also recoverable during periods when NJNG's short-term debt balances are lower than its CWIP. For more information on AFUDC treatment with respect to certain accelerated infrastructure projects, see Note 3 Regulation - Infrastructure programs. Capitalized amounts associated with the debt and equity components of NJNG's AFUDC, are recorded in utility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component is recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations and include the following for the fiscal years ended September 30: ($ in thousands) 2015 2014 2013 AFUDC: Debt $ 2,472 $ 1,057 $ 921 Equity 3,825 1,562 2,037 Total $ 6,297 $ 2,619 $ 2,958 Weighted average interest rate 4.63 % 3.30 % 1.05 % Pursuant to a BPU order, NJNG is permitted to recover carrying costs on uncollected balances related to SBC program costs, which include NJCEP, RA and USF expenditures. See Note 3. Regulation . |
Sales Tax Accounting | Sales Tax Accounting Sales tax and TEFA are collected from customers and presented in both operating revenues and operating expenses on the Consolidated Statements of Operations for the fiscal years ended September 30, as follows: (Millions) 2015 2014 2013 Sales tax $ 44.1 $ 47.4 $ 44.4 TEFA (1) — 1.4 5.0 Total $ 44.1 $ 48.8 $ 49.4 (1) TEFA was phased out in January 2014. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consists of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash of $2.5 million and $1 million as of September 30, 2015 and 2014 , respectively, related to escrow balances for utility plant projects, which is recorded in other current and noncurrent assets on the Consolidated Balance Sheets, respectively. |
Property Plant and Equipment | Property Plant and Equipment Regulated property, plant and equipment and solar and wind equipment are stated at original cost. Regulated property, plant and equipment costs include direct labor, materials and third-party construction contractor costs, AFUDC and certain indirect costs related to equipment and employees engaged in construction. Upon retirement, the cost of depreciable regulated property, plus removal costs less salvage, is charged to accumulated depreciation with no gain or loss recorded. Depreciation is computed on a straight-line basis over the useful life of the assets for unregulated assets and using rates based on the estimated average lives of the various classes of depreciable property for NJNG. The composite rate of depreciation used for NJNG was 2.31 percent of average depreciable property in fiscal 2015 , 2.44 percent in fiscal 2014 and 2.43 percent in fiscal 2013 . The Company has recorded $61.4 million , $52.7 million and $47.3 million in depreciation expense during fiscal 2015 , 2014 and 2013 , respectively. Property, plant and equipment was comprised of the following as of September 30 : (Thousands) Property Classifications Estimated Useful Lives 2015 2014 Distribution facilities 38 to 74 years $ 1,695,898 $ 1,567,648 Transmission facilities 35 to 56 years 289,599 281,488 Storage facilities 34 to 47 years 41,669 41,669 Solar property 20 to 25 years 395,704 333,506 Wind property 25 years 137,292 42,559 All other property 5 to 35 years 62,123 66,673 Total property, plant and equipment 2,622,285 2,333,543 Accumulated depreciation and amortization (494,024 ) (449,433 ) Property, plant and equipment, net $ 2,128,261 $ 1,884,110 |
Disposal of Equipment and Impairment of Long-Lived Assets | Disposal of Equipment In October 2012, certain NJRCEV's solar assets sustained damage as a result of Superstorm Sandy. To the extent that assets were deemed irreparable, the Company disposed of the damaged assets. As a result, the Company recognized a pre-tax loss of $766,000 during fiscal 2013, which is included in other income on the Consolidated Statements of Operations. In fiscal 2014, the Company also received $997,000 from an insurance claim, representing the replacement value of the disposed assets and recorded a gain in the same amount in other income on the Consolidated Statements of Operations. Impairment of Long-Lived Assets The Company reviews the carrying amount of an asset for possible impairment whenever events or changes in circumstances indicate that such amount may not be recoverable. NJR invested $8.8 million in OwnEnergy, a developer of onshore wind projects, for an 18.7 percent ownership interest and the option, but not the obligation, to purchase certain qualified projects. During fiscal 2014, due to its concerns surrounding the ability of OwnEnergy to fulfill its future obligation to present qualified projects to NJRCEV for investment, the Company reassessed the value of its cost method investment, as well as remaining value of its wind purchase option and determined that it was other-than-temporarily impaired. As a result, NJRCEV recognized an impairment loss of $6.4 million , $3.8 million after tax, which is included in other income, net on the Consolidated Statements of Operations. No other impairments were identified for the fiscal years ended September 30, 2015 , 2014 and 2013 . |
Investments in Equity Investees | Investments in Equity Investees The Company accounts for its investments in Steckman Ridge, PennEast and Iroquois (through September 29, 2015), using the equity method of accounting, where its respective ownership interests are 50 percent or less and/or it has significant influence over operating and management decisions, but is not the primary beneficiary, as defined under ASC 810, Consolidation . The Company's share of earnings is recognized as equity in earnings of affiliates on the Consolidated Statements of Operations. See Note 6 . Investment in Equity Investees for more information. |
Available for Sale Securities | Available for Sale Securities The Company has certain investments in equity securities of a publicly traded energy company that have a fair value of $10.1 million and $10.7 million as of September 30, 2015 and 2014 , respectively, which are included in available for sale securities on the Consolidated Balance Sheets. Total unrealized gains associated with these equity securities, which are included as a part of accumulated other comprehensive income, a component of common stock equity, were $7.5 million , $4.4 million after tax, and $8.1 million , $4.8 million after tax, as of September 30, 2015 and 2014 , respectively. On September 29, 2015, NJR Midstream Holdings Corporation exchanged its 5.53 percent equity method investment in Iroquois to DM for approximately 1.84 million DM Common Units. Since the exchange was, in substance, a contribution of real estate into another real estate venture, the Company recorded a deferred gain of $24.6 million based on the difference between the carrying amount of its investment of Iroquois, $21.5 million , and the fair value of the DM Common Units on the closing date of the transaction, $46.1 million . The deferred gain will be recognized in other income on the Consolidated Statements of Operations if and when the units are sold in the future. NJR classified the DM Common Units as available for sale securities and, therefore, any changes in fair value are recognized in accumulated other comprehensive income, a component of common stock equity. As of September 30, 2015 , the units have a fair value of $49.4 million and the Company recognized an unrealized gain of $3.3 million , $1.9 million after tax. Reclassifications of realized gains out of other comprehensive income into income are determined based on average cost. There were no sales of securities during fiscal 2015 and 2014 . |
Customer Accounts Receivable and Allowance for Doubtful Accounts and Loan Receivable | Customer Accounts Receivable and Allowance for Doubtful Accounts Receivables consist of natural gas sales and transportation services billed to residential, commercial, industrial and other customers, as well as equipment sales, installations, solar leases and power purchase agreements to commercial and residential customers. NJR evaluates it accounts receivables and, to the extent customer account balances are outstanding for more than 60 days , establishes an allowance for doubtful accounts. The allowance is based on a combination of factors including historical collection experience and trends, aging of receivables, general economic conditions in the company's distribution or sales territories, and customer specific information. NJR writes-off customers' accounts once it is determined they are uncollectible. The following table summarizes customer accounts receivable by company as of September 30 : (Thousands) 2015 2014 NJRES $ 107,461 69 % $ 142,566 75 % NJNG (1) 41,130 26 41,281 22 NJRCEV 1,084 1 594 — NJRHS and other 5,598 4 5,529 3 Total $ 155,273 100 % $ 189,970 100 % (1) Does not include unbilled revenues of $6.4 million and $7.2 million as of September 30, 2015 and 2014 , respectively. Loan Receivable NJNG provides interest-free loans, with terms ranging from two to 10 years, to customers that elect to purchase and install certain energy efficient equipment in accordance with its BPU approved SAVEGREEN program. The loans are recognized at net present value on the Consolidated Balance Sheets. Refer to Note 5. Fair Value for a discussion of the Company's fair value measurement policies and level disclosures. The Company has recorded $6.2 million and $3.9 million in other current assets and $36.2 million and $27.3 million in other noncurrent assets as of September 30, 2015 and 2014 , respectively, on the Consolidated Balance Sheets, related to the loans. NJR's policy is to establish an allowance for doubtful accounts when loan balances are in arrears for more than 60 days . There was no allowance for doubtful accounts established during fiscal 2015 and 2014 . |
Asset Retirement Obligations | Asset Retirement Obligations NJR recognizes a liability for its AROs based on the fair value of the liability when incurred, which is generally upon acquisition, construction, development and/or through the normal operation of the asset. Concurrently, NJR also capitalizes an asset retirement cost by increasing the carrying amount of the related asset by the same amount as the liability. In periods subsequent to the initial measurement, NJR is required to recognize changes in the liability resulting from the passage of time (accretion) or due to revisions to either timing or the amount of the originally estimated cash flows to settle the conditional ARO. |
Pension and Postemployment Plans | Pension and Postemployment Plans NJR has two noncontributory defined pension plans covering eligible employees, including officers. Benefits are based on each employee's years of service and compensation. NJR's funding policy is to contribute annually to these plans at least the minimum amount required under Employee Retirement Income Security Act, as amended, and not more than can be deducted for federal income tax purposes. Plan assets consist of equity securities, fixed-income securities and short-term investments. NJR made no discretionary contributions to the pension plans in fiscal 2015 or fiscal 2014 . NJR also provides two primarily noncontributory medical and life insurance plans for eligible retirees and dependents. Medical benefits, which make up the largest component of the plans, are based upon an age and years-of-service vesting schedule and other plan provisions. Funding of these benefits is made primarily into Voluntary Employee Beneficiary Association trust funds. NJR contributed $6 million , $5 million and $6 million in aggregate to these plans in fiscal 2015 , 2014 and 2013 , respectively. See Note 10. Employee Benefit Plans, for a more detailed description of the Company's pension and postemployment plans |
Foreign Currency Transactions | Foreign Currency Transactions NJRES' market area includes Canadian delivery points and. as a result. incurs certain natural gas commodity costs and demand fees that are denominated in Canadian dollars. Gains or losses that occur as a result of these foreign currency transactions are reported as a component of gas purchases on the Consolidated Statements of Operations and were not material during the fiscal years ended September 30, 2015 , 2014 and 2013 . |
Recent Updates to the Accounting Standards Codification | Recent Updates to the Accounting Standards Codification Balance Sheet Offsetting In December 2011, the FASB issued ASU No. 2011-11, an amendment to ASC 210, Balance Sheet , requiring additional disclosures about the nature of an entity's rights of setoff and related master netting arrangements. ASU 2013-01, issued in January 2013, further clarified that the amended guidance was applicable to certain financial and derivative instruments. The Company applied the provisions of the amended guidance retrospectively effective October 1, 2013. The guidance did not impact the Company's financial position, results of operations or cash flows, however, it required additional disclosures that are included in Note 4. Derivative Instruments . Income Taxes In July 2013, the FASB issued ASU No. 2013-11, an amendment to ASC 740, Income Taxes , which clarifies financial statement presentation for unrecognized tax benefits. The ASU requires that an unrecognized tax benefit, or portion thereof, shall be presented in the balance sheet as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss or a tax credit carryforward. To the extent such a deferred tax asset is not available or the Company does not intend to use it to settle any additional taxes that would result from the disallowance of a tax position, the related unrecognized tax benefit will be presented as a liability in the financial statements. The amended guidance became effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company currently does not have unrecognized tax benefits recorded on its balance sheet and there was no impact to its financial position upon adoption. Discontinued Operations In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity . The new guidance changed the definition and reporting of discontinued operations to include only those disposals that represent a strategic shift and that have a major effect on an entity's operations and financial results. The new guidance, which also requires additional disclosures, became effective for annual periods beginning on or after December 15, 2014 and interim periods within those years. The Company does not expect this standard to have any impact to its financial position, results of operations and cash flows upon adoption. Revenue In May 2014, the FASB issued ASU No. 2014-09, and added Topic 606, Revenue from Contracts with Customers , to the ASC. ASC 606 supersedes ASC 605, Revenue Recognition , as well as most industry-specific guidance, and prescribes a single, comprehensive revenue recognition model designed to improve financial reporting comparability across entities, industries, jurisdictions and capital markets. In August 2015, the FASB issued ASU No. 2015-14, which defers the implementation of the new guidance for one year. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Upon adoption, the guidance will be applied on a full or modified retrospective basis. The Company is currently evaluating the provisions of ASC 606 to understand the impact, if any, to its financial position, results of operations and cash flows upon adoption. Stock Compensation In June 2014, the FASB issued ASU No. 2014-12, an amendment to ASC 718, Compensation - Stock Compensation , which clarifies the accounting for performance awards when the terms of the award provide that a performance target could be achieved after the requisite service period. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company does not expect this standard to have any impact to its financial position, results of operations and cash flows upon adoption. Extraordinary and Unusual Items In January 2015, the FASB issued ASU No. 2015-01, an amendment to ASC 225, Income Statement , which eliminates the concept of extraordinary items and, therefore, removes the requirement for separate presentation, net of tax, after income from continuing operations. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company does not expect this standard to have any impact on its financial position, results of operations and cash flows upon adoption. Consolidation In February 2015, the FASB issued ASU No. 2015-02, an amendment to ASC 810, Consolidation , which changes the consolidation analysis required under GAAP and reevaluates whether limited partnerships and similar entities must be consolidated. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Upon adoption, the amendment will be applied on a full or modified retrospective basis. The Company is currently evaluating the provisions of ASU No. 2015-02 to understand the impact, if any, on its financial position, results of operations and cash flows upon adoption. Interest In April 2015, the FASB issued ASU No. 2015-03, an amendment to ASC 835, Interest - Imputation of Interest, which simplifies the presentation of debt issuance costs by requiring them to be presented in the balance sheet as a deduction from the carrying amount of the liability. The amendments do not affect the recognition and measurement guidance for debt issuance costs. In August 2015, the FASB issued ASU No. 2015-15, which clarified that the amendments contained within ASU No. 2015-03 do not require companies to modify their accounting for costs incurred in obtaining revolving credit facilities. The amended guidance becomes effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Upon adoption, the amendment will be applied on a retrospective basis. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations and cash flows upon adoption. Intangibles In April 2015, the FASB issued ASU No. 2015-05, an amendment to ASC 350, Intangibles - Goodwill and Other - Internal-Use Software, which clarifies the accounting for fees in a cloud computing arrangement. The amendments provide guidance on how an entity should evaluate the accounting for fees paid in a cloud computing arrangement to determine whether an arrangement includes the sale or license of software. The amended guidance becomes effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Upon adoption, the amendments can be applied on a prospective or retrospective basis. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations and cash flows upon adoption. Inventory In July 2015, the FASB issued ASU No. 2015-11, which requires entities to measure most inventory “at the lower of cost and net realizable value,” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations and cash flows upon adoption. Derivatives and Hedging In August 2015, the FASB issued ASU No. 2015-13, which clarifies that electricity sales occurring within nodal markets do not constitute net settlement and qualify for the Normal Purchases and Normal Sales scope exception contained within the derivative accounting guidance. The guidance was effective upon issuance and did not impact the Company's financial position, results of operations or cash flows. Business Combinations In September 2015, the FASB issued ASU No. 2015-16, which simplifies the accounting for adjustments made to provisional amounts recorded during a business combination by requiring companies to recognize such adjustments in the period in which they are determined. Companies will also be required to present separately on the face of the income statement, or disclose, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recorded as of the acquisition date. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company does not expect the standard to have any impact on its financial position, results of operations and cash flows upon adoption. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires NJR to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a monthly basis, NJR evaluates its estimates, including those related to the calculation of the fair value of derivative instruments, debt, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation. AROs are evaluated as often as needed. NJR's estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. NJR has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, NJR will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is NJR's policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is NJR's policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates. |
Fair Value Hierarchy | Fair Value Hierarchy NJR applies fair value measurement guidance to its financial assets and liabilities, as appropriate, which include financial derivatives and physical commodity contracts qualifying as derivatives, available for sale securities and other financial assets and liabilities. In addition, authoritative accounting literature prescribes the use of a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on the source of the data used to develop the price inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and include the following: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets. NJR's Level 1 assets and liabilities include exchange traded futures and options contracts, listed equities and money market funds. Exchange traded futures and options contracts include all energy contracts traded on the NYMEX/CME and ICE that NJR refers internally to as basis swaps, fixed swaps, futures and financial options that are cleared through a FCM. Level 2 Other significant observable inputs such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services. NJR's Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). NJNG's treasury lock is also considered Level 2 as valuation is based on quoted market interest and swap rates as inputs to the valuation model. Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as: 1) The data is widely accepted and public 2) The data is non-proprietary and sourced from an independent third party 3) The data is observable and published These additional adjustments are generally not considered to be significant to the ultimate recognized values. Level 3 Inputs derived from a significant amount of unobservable market data. These include NJR's best estimate of fair value and are derived primarily through the use of internal valuation methodologies. NJNG's and NJRES' financial derivatives portfolios consist mainly of futures, options and swaps. NJR primarily uses the market approach and its policy is to use actively quoted market prices when available. The principal market for its derivative transactions is the natural gas wholesale market, therefore, the primary sources for its price inputs are CME/NYMEX and ICE. NJRES uses Platts and Natural Gas Exchange for Canadian delivery points. However, NJRES also engages in transactions that result in transporting natural gas to delivery points for which there is no actively quoted market price. In most instances, the transportation cost to the final delivery location is not significant to the overall valuation. If required, NJRES' policy is to use the best information available to determine fair value based on internal pricing models, which would include estimates extrapolated from broker quotes or other pricing services. NJR also has available for sale securities and other financial assets that include listed equities, mutual funds and money market funds for which there are active exchange quotes available. When NJR determines fair values, measurements are adjusted, as needed, for credit risk associated with its counterparties, as well as its own credit risk. NJR determines these adjustments by using historical default probabilities that correspond to the applicable S&P issuer ratings, while also taking into consideration collateral and netting arrangements that serve to mitigate risk. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Gas in Storage | The following table summarizes gas in storage, at average cost by company, as of September 30 : 2015 2014 ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf NJRES $ 93,696 44.6 $ 191,250 56.5 NJNG 70,209 21.4 86,266 21.3 Total $ 163,905 66.0 $ 277,516 77.8 |
Schedule of Demand Charges | The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30: (Millions) 2015 2014 2013 NJRES $ 130.6 $ 122.0 $ 123.0 NJNG 80.5 92.0 92.1 Total $ 211.1 $ 214.0 $ 215.1 |
Schedule of Capitalized Amounts Associated with Debt and Equity Component of AFUDC | Corresponding amounts for the debt component is recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations and include the following for the fiscal years ended September 30: ($ in thousands) 2015 2014 2013 AFUDC: Debt $ 2,472 $ 1,057 $ 921 Equity 3,825 1,562 2,037 Total $ 6,297 $ 2,619 $ 2,958 Weighted average interest rate 4.63 % 3.30 % 1.05 % |
Schedule of Sales Tax and TEFA | Sales tax and TEFA are collected from customers and presented in both operating revenues and operating expenses on the Consolidated Statements of Operations for the fiscal years ended September 30, as follows: (Millions) 2015 2014 2013 Sales tax $ 44.1 $ 47.4 $ 44.4 TEFA (1) — 1.4 5.0 Total $ 44.1 $ 48.8 $ 49.4 (1) TEFA was phased out in January 2014. |
Schedule of Property, Plant and Equipment | Property, plant and equipment was comprised of the following as of September 30 : (Thousands) Property Classifications Estimated Useful Lives 2015 2014 Distribution facilities 38 to 74 years $ 1,695,898 $ 1,567,648 Transmission facilities 35 to 56 years 289,599 281,488 Storage facilities 34 to 47 years 41,669 41,669 Solar property 20 to 25 years 395,704 333,506 Wind property 25 years 137,292 42,559 All other property 5 to 35 years 62,123 66,673 Total property, plant and equipment 2,622,285 2,333,543 Accumulated depreciation and amortization (494,024 ) (449,433 ) Property, plant and equipment, net $ 2,128,261 $ 1,884,110 |
Summary of Customer Accounts Receivable by Company | The following table summarizes customer accounts receivable by company as of September 30 : (Thousands) 2015 2014 NJRES $ 107,461 69 % $ 142,566 75 % NJNG (1) 41,130 26 41,281 22 NJRCEV 1,084 1 594 — NJRHS and other 5,598 4 5,529 3 Total $ 155,273 100 % $ 189,970 100 % (1) Does not include unbilled revenues of $6.4 million and $7.2 million as of September 30, 2015 and 2014 , respectively. |
Changes in Components of Accumulated Other Comprehensive Income, Net | Accumulated Other Comprehensive Income The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects as of September 30 : (Thousands) Unrealized gain on available for sale securities Net unrealized gain on derivatives Adjustment to postemployment benefit obligation Total Balance at September 30, 2013 $ 5,400 $ 12 $ (7,033 ) $ (1,621 ) Other comprehensive income, net of tax Other comprehensive (loss), before reclassifications, net of tax of $426, $159, $3,334, $3,919 (618 ) (273 ) (5,006 ) (5,897 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(98), $(1,172), $(1,270) — 168 (1) 1,756 (2) 1,924 Net current-period other comprehensive (loss), net of tax of $426, $61, $2,162, $2,649 (618 ) (105 ) (3,250 ) (3,973 ) Balance at September 30, 2014 $ 4,782 $ (93 ) $ (10,283 ) $ (5,594 ) Other comprehensive income, net of tax Other comprehensive income (loss), before reclassifications, net of tax of ($1,135), $146, $4,362, $3,373 1,603 (256 ) (6,483 ) (5,136 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, ($202), ($674), ($876) — 349 (1) 987 (2) 1,336 Net current-period other comprehensive income, net of tax of ($1,135), ($56), $3,688, $2,497 1,603 93 (5,496 ) (3,800 ) Balance at September 30, 2015 $ 6,385 $ — $ (15,779 ) $ (9,394 ) (1) Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases on the Consolidated Statements of Operations. (2) Included in the computation of net periodic pension cost, a component of O&M expense on the Consolidated Statements of Operations. For more details, see Note 10. Employee Benefit Plans. |
REGULATION (Tables)
REGULATION (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | Regulatory assets and liabilities included on the Consolidated Balance Sheets as of September 30, are comprised of the following: (Thousands) 2015 2014 Regulatory assets-current New Jersey Clean Energy Program $ 14,293 $ 14,285 Underrecovered gas costs — 12,577 Derivatives at fair value, net 9,965 — Total current regulatory assets $ 24,258 $ 26,862 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 18,886 $ 30,916 Liability for future expenditures 180,400 177,000 Deferred income taxes 17,460 9,968 Derivatives at fair value, net 5,153 — SAVEGREEN 26,882 29,180 Postemployment and other benefit costs 140,636 108,507 Deferred Superstorm Sandy costs 15,201 15,207 Other noncurrent regulatory assets 5,537 6,797 Total noncurrent regulatory assets $ 410,155 $ 377,575 Regulatory liability-current Conservation Incentive Program $ 5,167 $ 5,752 Overrecovered gas costs 6,987 — Derivatives at fair value, net — 320 Total current regulatory liabilities $ 12,154 $ 6,072 Regulatory liabilities-noncurrent Cost of removal obligation $ 54,880 $ 61,163 Derivatives at fair value, net — 57 New Jersey Clean Energy Program 11,956 — Other noncurrent regulatory liabilities 697 106 Total noncurrent regulatory liabilities $ 67,533 $ 61,326 |
Schedule of Regulatory Liabilities | Regulatory assets and liabilities included on the Consolidated Balance Sheets as of September 30, are comprised of the following: (Thousands) 2015 2014 Regulatory assets-current New Jersey Clean Energy Program $ 14,293 $ 14,285 Underrecovered gas costs — 12,577 Derivatives at fair value, net 9,965 — Total current regulatory assets $ 24,258 $ 26,862 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 18,886 $ 30,916 Liability for future expenditures 180,400 177,000 Deferred income taxes 17,460 9,968 Derivatives at fair value, net 5,153 — SAVEGREEN 26,882 29,180 Postemployment and other benefit costs 140,636 108,507 Deferred Superstorm Sandy costs 15,201 15,207 Other noncurrent regulatory assets 5,537 6,797 Total noncurrent regulatory assets $ 410,155 $ 377,575 Regulatory liability-current Conservation Incentive Program $ 5,167 $ 5,752 Overrecovered gas costs 6,987 — Derivatives at fair value, net — 320 Total current regulatory liabilities $ 12,154 $ 6,072 Regulatory liabilities-noncurrent Cost of removal obligation $ 54,880 $ 61,163 Derivatives at fair value, net — 57 New Jersey Clean Energy Program 11,956 — Other noncurrent regulatory liabilities 697 106 Total noncurrent regulatory liabilities $ 67,533 $ 61,326 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Assets and Liabilities | The following table reflects the fair value of NJR's derivative assets and liabilities recognized on the Consolidated Balance Sheets as of September 30 : Fair Value 2015 2014 (Thousands) Balance Sheet Location Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: NJRES: Foreign currency contracts Derivatives - current $ — $ — $ — $ 155 Derivatives - noncurrent — — — — Fair value of derivatives designated as hedging instruments $ — $ — $ — $ 155 Derivatives not designated as hedging instruments: NJNG: Financial commodity contracts Derivatives - current $ 207 $ 10,163 $ 2,525 $ 2,205 Derivatives - noncurrent — 925 82 25 Interest rate contracts Derivatives - noncurrent — 4,228 — — NJRES: Physical forward commodity contracts Derivatives - current 4,854 9,281 15,391 30,778 Derivatives - noncurrent 1,718 — 35 132 Financial commodity contracts Derivatives - current 35,682 13,347 46,307 46,725 Derivatives - noncurrent 2,626 386 5,537 6,533 Fair value of derivatives not designated as hedging instruments $ 45,087 $ 38,330 $ 69,877 $ 86,398 Total fair value of derivatives $ 45,087 $ 38,330 $ 69,877 $ 86,553 |
Offsetting Assets | The following table summarizes the reported gross amounts, the amounts that NJR has the right to offset but elects not to, financial collateral, as well as the net amounts NJR could present on the Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented in Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of September 30, 2015: Derivative assets: NJRES Physical forward commodity contracts $ 6,562 $ (1,326 ) $ — $ 5,236 Financial commodity contracts 38,308 (13,734 ) 3,841 28,415 Total NJRES $ 44,870 $ (15,060 ) $ 3,841 $ 33,651 NJNG Financial commodity contracts $ 207 $ (207 ) $ — $ — Interest rate contracts — — — — Total NJNG $ 207 $ (207 ) $ — $ — Derivative liabilities: NJRES Physical forward commodity contracts $ 9,271 $ (1,326 ) $ (1,200 ) $ 6,745 Financial commodity contracts 13,733 (13,733 ) — — Total NJRES $ 23,004 $ (15,059 ) $ (1,200 ) $ 6,745 NJNG Financial commodity contracts $ 11,088 $ (207 ) $ (10,881 ) $ — Interest rate contracts $ 4,228 $ — $ — $ 4,228 Total NJNG $ 15,316 $ (207 ) $ (10,881 ) $ 4,228 As of September 30, 2014: Derivative assets: NJRES Physical forward commodity contracts $ 15,426 $ (11,531 ) $ — $ 3,895 Financial commodity contracts 51,844 (51,844 ) — — Total NJRES $ 67,270 $ (63,375 ) $ — $ 3,895 NJNG Financial commodity contracts $ 2,607 $ (2,230 ) $ (377 ) $ — Derivative liabilities: NJRES Physical forward commodity contracts $ 30,910 $ (12,058 ) $ (1,200 ) $ 17,652 Financial commodity contracts 53,258 (51,844 ) (1,414 ) — Foreign currency contracts 155 — — 155 Total NJRES $ 84,323 $ (63,902 ) $ (2,614 ) $ 17,807 NJNG Financial commodity contracts $ 2,230 $ (2,230 ) $ — $ — (1) Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Offsetting derivative instruments include: transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3) Financial collateral includes cash balances at FCMs, as well as cash received from or pledged to other counterparties. (4) Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20. |
Offsetting Liabilities | The following table summarizes the reported gross amounts, the amounts that NJR has the right to offset but elects not to, financial collateral, as well as the net amounts NJR could present on the Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented in Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of September 30, 2015: Derivative assets: NJRES Physical forward commodity contracts $ 6,562 $ (1,326 ) $ — $ 5,236 Financial commodity contracts 38,308 (13,734 ) 3,841 28,415 Total NJRES $ 44,870 $ (15,060 ) $ 3,841 $ 33,651 NJNG Financial commodity contracts $ 207 $ (207 ) $ — $ — Interest rate contracts — — — — Total NJNG $ 207 $ (207 ) $ — $ — Derivative liabilities: NJRES Physical forward commodity contracts $ 9,271 $ (1,326 ) $ (1,200 ) $ 6,745 Financial commodity contracts 13,733 (13,733 ) — — Total NJRES $ 23,004 $ (15,059 ) $ (1,200 ) $ 6,745 NJNG Financial commodity contracts $ 11,088 $ (207 ) $ (10,881 ) $ — Interest rate contracts $ 4,228 $ — $ — $ 4,228 Total NJNG $ 15,316 $ (207 ) $ (10,881 ) $ 4,228 As of September 30, 2014: Derivative assets: NJRES Physical forward commodity contracts $ 15,426 $ (11,531 ) $ — $ 3,895 Financial commodity contracts 51,844 (51,844 ) — — Total NJRES $ 67,270 $ (63,375 ) $ — $ 3,895 NJNG Financial commodity contracts $ 2,607 $ (2,230 ) $ (377 ) $ — Derivative liabilities: NJRES Physical forward commodity contracts $ 30,910 $ (12,058 ) $ (1,200 ) $ 17,652 Financial commodity contracts 53,258 (51,844 ) (1,414 ) — Foreign currency contracts 155 — — 155 Total NJRES $ 84,323 $ (63,902 ) $ (2,614 ) $ 17,807 NJNG Financial commodity contracts $ 2,230 $ (2,230 ) $ — $ — (1) Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Offsetting derivative instruments include: transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3) Financial collateral includes cash balances at FCMs, as well as cash received from or pledged to other counterparties. (4) Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20. |
Effect of Derivative Instruments on the Consolidated Statements of Operations | The following table reflects the effect of derivative instruments on the Consolidated Statements of Operations as of September 30 : (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized in income on derivatives Derivatives not designated as hedging instruments: 2015 2014 2013 NJRES: Physical commodity contracts Operating revenues $ 32,568 $ (48,977 ) $ 1,117 Physical commodity contracts Gas purchases (34,438 ) (83,847 ) (17,194 ) Financial commodity contracts Gas purchases 109,082 (118,872 ) 41,183 Total unrealized and realized (losses) gains $ 107,212 $ (251,696 ) $ 25,106 |
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI | The following table reflects the effect of derivative instruments designated as cash flow hedges on OCI as of September 30 : (Thousands) Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) (1) Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Amount of Gain or (Loss) Recognized on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Derivatives in cash flow hedging relationships: 2015 2014 2015 2014 2015 2014 Foreign currency contracts $ (402 ) $ (432 ) $ 557 $ 266 $ — $ — |
Schedule of Outstanding Long (Short) Derivatives | NJNG and NJRES had the following outstanding long (short) derivatives as of September 30 : Volume (Bcf) 2015 2014 NJNG Futures 25.8 (1) 17.3 NJRES Futures (91.1 ) (62.1 ) Financial Options 1.2 1.2 Physical 48.2 28.6 (1) Not included is the notional amount of $125 million related to NJNG’s treasury lock agreement. |
Schedule of Broker Margin Accounts by Company | The Company maintains separate broker margin accounts for NJNG and NJRES. The balances as of September 30 , by company, are as follows: (Thousands) Balance Sheet Location 2015 2014 NJNG Broker margin - Current assets $ 12,990 $ 1,057 NJRES Broker margin - Current (liabilities) assets $ (4,103 ) $ 26,282 |
Summary of Gross Credit Exposures | The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of September 30, 2015 . Internally-rated exposure applies to counterparties that are not rated by S&P or Moody's. In these cases, the Company's or guarantor's financial statements are reviewed, and similar methodologies and ratios used by S&P and/or Moody's are applied to arrive at a substitute rating. Gross credit exposure is defined as the unrealized fair value of physical and financial derivative commodity contracts, plus any outstanding wholesale receivable for the value of natural gas delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received. The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services. (Thousands) Gross Credit Exposure Investment grade $ 103,706 Noninvestment grade 10,655 Internally-rated investment grade 8,168 Internally-rated noninvestment grade 8,751 Total $ 131,280 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value of Long-term Debt | As of September 30, the estimated fair value of long-term debt at NJNG and NJR, including current maturities and excluding capital leases, as applicable, is as follows: (Thousands) 2015 2014 NJNG Carrying value (1) $ 582,845 $ 432,845 Fair market value $ 584,240 $ 453,773 NJR Carrying value $ 225,000 $ 125,000 Fair market value $ 233,079 $ 133,136 (1) Excludes capital leases of $46.9 million and $49.9 million as of September 30, 2015 and 2014 , respectively. |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Thousands) (Level 1) (Level 2) (Level 3) Total As of September 30, 2015: Assets Physical forward commodity contracts $ — $ 6,572 $ — $ 6,572 Financial derivative contracts - natural gas 38,515 — — 38,515 Available for sale equity securities - energy industry (1) 59,475 — — 59,475 Other (2) 1,572 — — 1,572 Total assets at fair value $ 99,562 $ 6,572 $ — $ 106,134 Liabilities Physical forward commodity contracts $ — $ 9,281 $ — $ 9,281 Financial commodity contracts - natural gas 24,821 — — 24,821 Interest rate contracts — 4,228 — 4,228 Total liabilities at fair value $ 24,821 $ 13,509 $ — $ 38,330 As of September 30, 2014: Assets Physical forward commodity contracts $ — $ 15,426 $ — $ 15,426 Financial derivative contracts - natural gas 54,451 — — 54,451 Available for sale equity securities - energy industry (1) 10,672 — — 10,672 Other (2) 1,299 — — 1,299 Total assets at fair value $ 66,422 $ 15,426 $ — $ 81,848 Liabilities Physical forward commodity contracts $ — $ 30,910 $ — $ 30,910 Financial commodity contracts - natural gas 55,488 — — 55,488 Financial commodity contracts - foreign exchange — 155 — 155 Total liabilities at fair value $ 55,488 $ 31,065 $ — $ 86,553 (1) Included in other noncurrent assets on the Consolidated Balance Sheets. (2) Includes various money market funds in Level 1. |
INVESTMENTS IN EQUITY INVESTE32
INVESTMENTS IN EQUITY INVESTEES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | As of September 30 , NJR's equity method investments include the following: (Thousands) 2015 2014 Steckman Ridge (1) $ 125,649 $ 128,413 Iroquois — 24,042 PennEast 6,353 555 Total $ 132,002 $ 153,010 (1) Includes loans with a total outstanding principal balance of $70.4 million for both fiscal 2015 and 2014 , which accrue interest at a variable rate that resets quarterly and are due October 1, 2023 . |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table presents the calculation of the Company's basic and diluted earnings per share for the fiscal years ended September 30 : (Thousands, except per share amounts) 2015 2014 2013 Net income, as reported $ 180,960 $ 141,970 $ 114,809 Basic earnings per share Weighted average shares of common stock outstanding-basic 85,186 84,198 83,316 Basic earnings per common share $2.12 $1.69 $1.38 Diluted earnings per share Weighted average shares of common stock outstanding-basic 85,186 84,198 83,316 Incremental shares (1) 1,079 724 312 Weighted average shares of common stock outstanding-diluted 86,265 84,922 83,628 Diluted earnings per common share (2) $2.10 $1.67 $1.37 (1) Incremental shares consist of stock options, stock awards and performance units. (2) There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2015 , 2014 and 2013 . |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The following table presents the long-term debt of the Company as of September 30 : (Thousands) 2015 2014 NJNG First mortgage bonds: Maturity date: 4.50% Series II August 1, 2023 $ 10,300 $ 10,300 4.60% Series JJ August 1, 2024 10,500 10,500 4.90% Series KK October 1, 2040 15,000 15,000 5.60% Series LL May 15, 2018 125,000 125,000 Variable Series MM September 1, 2027 9,545 9,545 Variable Series NN August 1, 2035 41,000 41,000 Variable Series OO August 1, 2041 46,500 46,500 3.15% Series PP April 15, 2028 50,000 50,000 3.58% Series QQ March 13, 2024 70,000 70,000 4.61% Series RR March 13, 2044 55,000 55,000 2.82% Series SS April 15, 2025 50,000 — 3.66% Series TT April 15, 2045 100,000 — Capital lease obligation-buildings June 1, 2021 16,700 18,726 Capital lease obligation-meters Various dates 30,188 31,143 Less: Current maturities of long-term debt (11,138 ) (9,505 ) Total NJNG long-term debt 618,595 473,209 NJR 6.05% Unsecured senior notes September 24, 2017 50,000 50,000 1.94% Unsecured senior notes September 17, 2015 — 25,000 2.51% Unsecured senior notes September 17, 2018 25,000 25,000 3.25% Unsecured senior notes September 17, 2022 50,000 50,000 3.48% Unsecured senior notes November 7, 2024 100,000 — Less: Current maturities of long-term debt — (25,000 ) Total NJR long-term debt 225,000 125,000 Total long-term debt $ 843,595 $ 598,209 |
Schedule of Long-term Debt Redemption Requirements | Annual long-term debt redemption requirements, excluding capital leases, as of September 30 , are as follows: (Millions) NJNG NJR 2016 $ — $ — 2017 $ — $ 50.0 2018 $ 125.0 $ 25.0 2019 $ — $ — 2020 $ — $ — Thereafter $ 457.8 $ 150.0 |
Schedule of Contractual Commitments for Capital Lease Payments | Contractual commitments for capital lease payments, as of the fiscal years ended September 30, are as follows: (Millions) Lease Payments 2016 $ 13.3 2017 12.1 2018 10.2 2019 7.4 2020 6.6 Thereafter 3.6 Subtotal 53.2 Less: Interest component (6.3 ) Total $ 46.9 |
Summary of Short-Term Bank Facilities | A summary of NJR's and NJNG's short-term bank facilities as of September 30, are as follows: (Thousands) 2015 2014 NJR Bank revolving credit facilities (1) $ 425,000 $ 425,000 Notes outstanding at end of period $ 39,350 $ 148,000 Weighted average interest rate at end of period 1.17 % 1.08 % Amount available at end of period (2) $ 369,176 $ 256,484 Bank revolving credit facilities (3) $ 100,000 $ — Amount available at end of period $ 100,000 $ — NJNG Bank revolving credit facilities (4) $ 250,000 $ 250,000 Commercial paper outstanding at end of period $ 27,000 $ 153,000 Weighted average interest rate at end of period .20 % 0.12 % Amount available at end of period (5) $ 222,269 $ 96,269 (1) Committed credit facilities, which require commitment fees of .075 percent and .1 percent on the unused amounts as of September 30, 2015 and 2014 , respectively. (2) Letters of credit outstanding total $16.5 million and $20.5 million as of September 30, 2015 and 2014 , respectively, which reduces amount available by the same amount. (3) Uncommitted credit facilities, which require no commitment fees. (4) Committed credit facilities, which require commitment fees of .075 percent on the unused amounts. (5) Letters of credit outstanding total $731,000 and $731,000 as of September 30, 2015 and 2014 , respectively, which reduces amount available by the same amount. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock-based Compensation Expense Recognized | The following table summarizes all stock-based compensation expense recognized during the following fiscal years: (Thousands) 2015 2014 2013 Stock-based compensation expense: Performance share awards $ 2,473 $ 2,509 $ 1,049 Restricted and non-restricted stock 1,899 1,664 1,081 Deferred retention stock 5,273 13,643 1,326 Compensation expense included in operation and maintenance expense 9,645 17,816 3,456 Income tax benefit (3,940 ) (7,278 ) (1,412 ) Total, net of tax $ 5,705 $ 10,538 $ 2,044 |
Summary of Stock Option Activity | The following table summarizes the stock option activity for the past three fiscal years: Shares Weighted Average Exercise Price Outstanding at September 30, 2012 163,250 $14.36 Granted — — Exercised (30,000 ) $12.54 Forfeited — — Outstanding at September 30, 2013 133,250 $14.77 Granted — — Exercised (85,000 ) $13.13 Forfeited — — Outstanding at September 30, 2014 48,250 $15.00 Granted — — Exercised (48,250 ) $15.00 Forfeited — — Outstanding at September 30, 2015 — — Exercisable at September 30, 2015 — — Exercisable at September 30, 2014 48,250 $15.00 Exercisable at September 30, 2013 133,250 $14.77 |
Summary of Performance Share Activity | The following table summarizes the performance share activity under the NJR 2007 Stock Award and Incentive Plan for the past three fiscal years: Shares (1) Weighted Average Grant Date Fair Value Non-vested and outstanding at September 30, 2012 169,486 $16.63 Granted 99,808 $15.37 Vested — — Cancelled/forfeited (2) (112,650 ) $13.12 Non-vested and outstanding at September 30, 2013 156,644 $18.35 Granted 147,728 $20.28 Vested (3) (56,836 ) $23.59 Cancelled/forfeited — — Non-vested and outstanding at September 30, 2014 247,536 $18.30 Granted 102,790 $28.25 Vested (4) (112,446 ) $17.10 Cancelled/forfeited (5) (23,416 ) $17.98 Non-vested and outstanding at September 30, 2015 214,464 $23.40 (1) The number of common shares issued related to certain performance shares may range from zero to 150 percent of the number of shares shown in the table above based on the Company's achievement of performance goals . (2) As certified by the Company's Leadership and Compensation Committee on November 12, 2013, the number of common shares granted in fiscal 2011 related to performance shares and market condition shares earned was zero . The number represented on this line is the target number of 100 percent . See footnote (1) above. (3) As certified by the Company's Leadership and Compensation Committee on November 11, 2014, the number of common shares related to performance shares earned was 150 percent , or 85,254 shares, excluding accumulated dividends. The number represented on this line is the target number of 100 percent . See footnote (1) above. (4) As certified by the Company's Leadership and Compensation Committee on November 10, 2015, the number of common shares related to performance shares earned was 120 percent , or 112,918 shares, excluding accumulated dividends. The number represented on this line is the target number of 100 percent . See footnote (1) above. Also included in the vested number are 9,364 shares certified by the Leadership and Compensation Committee on November 11, 2014 and 8,984 shares certified by the Leadership and Compensation Committee on November 10, 2015. (5) As certified by the Company's Leadership and Compensation Committee on November 10, 2015, 9,364 shares were canceled due to not achieving a certain performance target. The remainder were forfeitures due to individuals departing the company. |
Summary of Restricted Stock Activity | The following table summarizes the restricted stock activity under the NJR 2007 Stock Award and Incentive Plan for the past three fiscal years: Shares Weighted Average Grant Date Fair Value Total Fair Value of Vested Shares (in Thousands) Non-vested and outstanding at September 30, 2012 118,692 $20.20 — Granted 4,278 $20.31 — Vested (39,359 ) $19.55 $ 888 Cancelled/forfeited (5,100 ) $20.37 — Non-vested and outstanding at September 30, 2013 78,511 $20.53 — Granted 33,356 $22.78 — Vested (68,460 ) $20.37 $ 1,534 Cancelled/forfeited (1,916 ) $20.37 — Non-vested and outstanding at September 30, 2014 41,491 $22.60 — Granted 61,972 $29.41 — Vested (18,170 ) $24.45 $ 510 Cancelled/forfeited (3,801 ) $26.79 — Non-vested and outstanding at September 30, 2015 81,492 $27.17 — |
Summary of Deferred Retention Stock Award | The following table summarizes the deferred retention stock award under the NJR 2007 Stock Award and Incentive Plan for the past three fiscal years: Shares Weighted Average Grant Date Fair Value Total Fair Value of Vested Shares (in Thousands) Outstanding at September 30, 2012 98,342 $23.59 — Granted/Vested 134,590 $20.31 — Delivered — — — Forfeited (9,346 ) $21.72 — Outstanding at September 30, 2013 223,586 $21.69 — Granted/Vested 57,970 $22.88 — Delivered — — — Forfeited (4,774 ) $21.47 — Outstanding at September 30, 2014 276,782 $21.95 — Granted/Vested 462,790 $29.32 — Delivered (95,098 ) $23.62 $ 2,519 Forfeited (11,744 ) $24.69 — Outstanding at September 30, 2015 632,730 $27.03 — |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Changes in Funded Status of Plans and Liabilities Recognized | The following summarizes the changes in the funded status of the plans and the related liabilities recognized on the Consolidated Balance Sheets as of September 30 : Pension (1) OPEB (Thousands) 2015 2014 2015 2014 Change in Benefit Obligation Benefit obligation at beginning of year $ 227,699 $ 198,826 $ 127,773 $ 112,771 Service cost 7,485 6,143 4,253 3,923 Interest cost 10,199 10,066 5,739 5,734 Plan participants' contributions 47 47 60 38 Special termination benefits — 2,814 — 648 Actuarial loss 17,418 21,440 3,891 6,792 Benefits paid, net of retiree subsidies received (6,861 ) (11,637 ) (3,349 ) (2,133 ) Benefit obligation at end of year $ 255,987 $ 227,699 $ 138,367 $ 127,773 Change in plan assets Fair value of plan assets at beginning of year $ 211,653 $ 200,236 $ 56,909 $ 49,555 Actual return on plan assets (5,813 ) 22,923 (1,799 ) 4,590 Employer contributions 97 85 5,672 4,970 Benefits paid, net of plan participants' contributions (6,814 ) (11,591 ) (3,513 ) (2,206 ) Fair value of plan assets at end of year $ 199,123 $ 211,653 $ 57,269 $ 56,909 Funded status $ (56,864 ) $ (16,046 ) $ (81,098 ) $ (70,864 ) Amounts recognized on Consolidated Balance Sheets Postemployment employee benefit (liability) Current $ (71 ) $ (100 ) $ (477 ) $ (136 ) Noncurrent (56,793 ) (15,946 ) (80,621 ) (70,728 ) Total $ (56,864 ) $ (16,046 ) $ (81,098 ) $ (70,864 ) (1) Includes the Company's PEP. |
Summary of Regulatory Assets and Accumulated Other Comprehensive Income | The following table summarizes the amounts recognized in regulatory assets and accumulated other comprehensive income as of September 30 : Regulatory Assets Accumulated Other Comprehensive Income (Loss) Pension OPEB Pension OPEB Balance at September 30, 2013 $ 56,664 $ 41,812 $ 14,427 $ (2,142 ) Amounts arising during the period: Net actuarial loss 10,563 4,277 6,243 2,098 Amounts amortized to net periodic costs: Net actuarial (loss) gain (5,326 ) (2,607 ) (3,085 ) 107 Prior service (cost) credit (107 ) 303 (4 ) 54 Net transition obligation — (11 ) — — Balance at September 30, 2014 $ 61,794 $ 43,774 $ 17,581 $ 117 Amounts arising during the period: Net actuarial loss 30,579 9,563 9,742 1,103 Amounts amortized to net periodic costs: Net actuarial (loss) (5,305 ) (2,911 ) (1,680 ) (32 ) Prior service (cost) credit (108 ) 311 (3 ) 54 Net transition obligation — — — — Balance at September 30, 2015 $ 86,960 $ 50,737 $ 25,640 $ 1,242 The amounts in regulatory assets and accumulated other comprehensive income not yet recognized as components of net periodic benefit cost as of September 30 are: Regulatory Assets Accumulated Other Comprehensive Income (Loss) Pension OPEB Pension OPEB (Thousands) 2015 2014 2015 2014 2015 2014 2015 2014 Net actuarial loss $ 86,070 $ 60,797 $ 52,462 $ 45,809 $ 25,632 $ 17,570 $ 1,495 $ 425 Prior service cost (credit) 890 997 (1,725 ) (2,035 ) 8 11 (253 ) (308 ) Net transition obligation — — — — — — — — Total $ 86,960 $ 61,794 $ 50,737 $ 43,774 $ 25,640 $ 17,581 $ 1,242 $ 117 |
Schedule of Amounts Expected to be Recognized as Components of Net Periodic Benefit Cost | Amounts included in regulatory assets and accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost in fiscal 2016 are as follows: Regulatory Assets Accumulated Other Comprehensive Income (Loss) (Thousands) Pension OPEB Pension OPEB Net actuarial loss $ 5,606 $ 3,175 $ 1,675 $ 99 Prior service cost (credit) 108 (311 ) 3 (54 ) Total $ 5,714 $ 2,864 $ 1,678 $ 45 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The accumulated benefit obligation for the pension plans, including the PEP, exceeded the fair value of plan assets. The projected benefit and accumulated benefit obligations and the fair value of plan assets as of September 30, are as follows: Pension (Thousands) 2015 2014 Projected benefit obligation $ 255,987 $ 227,699 Accumulated benefit obligation $ 217,937 $ 198,058 Fair value of plan assets $ 199,123 $ 211,653 |
Components of Net Periodic Cost | The components of the net periodic cost for pension benefits, including the Company's PEP, and OPEB costs (principally health care and life insurance) for employees and covered dependents for fiscal years ended September 30, are as follows: Pension OPEB (Thousands) 2015 2014 2013 2015 2014 2013 Service cost $ 7,485 $ 6,143 $ 6,871 $ 4,253 $ 3,923 $ 4,686 Interest cost 10,199 10,066 8,942 5,739 5,734 5,148 Expected return on plan assets (17,090 ) (15,475 ) (14,825 ) (4,977 ) (4,174 ) (3,653 ) Recognized actuarial loss 6,985 5,596 7,646 2,943 2,500 3,857 Prior service cost (credit) amortization 111 111 108 (364 ) (357 ) (355 ) Recognized net initial obligation — — — — 11 26 Net periodic benefit cost $ 7,690 $ 6,441 $ 8,742 $ 7,594 $ 7,637 $ 9,709 Special termination benefit — 2,814 — — 648 — Net periodic benefit cost recognized as expense $ 7,690 $ 9,255 $ 8,742 $ 7,594 $ 8,285 $ 9,709 |
Schedule of Weighted Average Assumptions Used | The weighted average assumptions used to determine benefit costs during the fiscal year and obligations as of September 30, are as follows: Pension OPEB 2015 2014 2013 2015 2014 2013 Benefit costs: Discount rate 4.55 % 5.15 % 4.30 % 4.55 % 5.15 % 4.30 % Expected asset return 8.75 % 8.25 % 8.50 % 8.75 % 8.25 % 8.50 % Compensation increase 3.25 % 3.25 % 3.25 % 3.50 % 3.50 % 3.25 % Obligations: Discount rate 4.50 % 4.55 % 5.15 % 4.60/4.55% (1) 4.55 % 5.15 % Compensation increase 3.25/3.50% (1) 3.25/3.50% (1) 3.25 % 3.50 % 3.50 % 3.25 % (1) Percentages for represented and nonrepresented plans, respectively. |
Information on Assumed HCCTR Used to Determine Expected OPEB Benefits | Information relating to the assumed HCCTR used to determine expected OPEB benefits as of September 30, and the effect of a one percent change in the rate, are as follows: ($ in thousands) 2015 2014 2013 HCCTR 6.7 % 7.1 % 7.3 % Ultimate HCCTR 4.8 % 4.8 % 4.8 % Year ultimate HCCTR reached 2022 2022 2022 Effect of a 1 percentage point increase in the HCCTR on: Year-end benefit obligation $ 26,025 $ 20,965 $ 18,008 Total service and interest cost $ 2,026 $ 1,885 $ 2,156 Effect of a 1 percentage point decrease in the HCCTR on: Year-end benefit obligation $ (20,427 ) $ (16,932 ) $ (14,629 ) Total service and interest costs $ (1,593 ) $ (1,493 ) $ (1,675 ) |
Schedule of Mix and Targeted Allocation of Plan Assets | The mix and targeted allocation of the pension and OPEB plans' assets are as follows: 2016 Assets at Target September 30, Asset Allocation Allocation 2015 2014 U.S. equity securities 40 % 38 % 39 % International equity securities 20 19 20 Fixed income 40 43 41 Total 100 % 100 % 100 % |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years: (Thousands) Pension OPEB 2016 $ 7,958 $ 3,755 2017 $ 8,383 $ 4,122 2018 $ 9,106 $ 4,524 2019 $ 9,807 $ 5,005 2020 $ 10,542 $ 5,513 2021 - 2025 $ 67,414 $ 35,509 |
Schedule of Estimated Subsidy Payments | The estimated subsidy payments are: Estimated Subsidy Payment Fiscal Year (Thousands) 2016 $210 2017 $231 2018 $253 2019 $276 2020 $304 2021 - 2025 $2,067 |
Summary of Pension and OPEB Assets Held in the Master Trust | Pension and OPEB assets held in the master trust, measured at fair value, as of September 30, are summarized as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) (Thousands) Pension OPEB Assets 2015 2014 2015 2014 Money market funds $ — $ 50 $ 2,237 $ 1,154 Registered Investment Companies: Equity Funds Large Cap Index 63,285 70,358 17,460 19,092 Extended Market Index 11,827 12,475 3,762 3,733 International Stock 37,353 41,833 10,261 10,309 Fixed Income Funds Emerging Markets 8,857 10,029 2,617 2,798 Core Fixed Income — — 7,148 6,522 Opportunistic Income — — 4,179 3,960 Ultra Short Duration — — 3,960 3,761 High Yield Bond Fund 20,532 21,054 5,645 5,580 Long Duration Fund 57,269 55,854 — — Total assets at fair value $ 199,123 $ 211,653 $ 57,269 $ 56,909 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Analysis of Change in ARO Liability | The following is an analysis of the change in the Company's AROs for the fiscal year ended September 30 : (Thousands) 2015 2014 Balance at October 1 $ 30,495 $ 28,711 Accretion 2,262 2,012 Additions 2,185 925 Revisions in estimated cash flows (14,763 ) — Retirements (1,034 ) (1,153 ) Balance at period end $ 19,145 $ 30,495 |
Schedule of Future Accretion | Accretion for the next five years is estimated to be as follows: (Thousands) Fiscal Year Ended September 30, Estimated Accretion 2016 $ 1,211 2017 1,273 2018 1,340 2019 1,403 2020 1,469 Total $ 6,696 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory rate of 35 percent to the effective rate from operations for the fiscal years ended September 30, 2015 , 2014 and 2013 is as follows: (Thousands) 2015 2014 2013 Statutory income tax expense $ 84,239 $ 67,834 $ 52,661 Change resulting from State income taxes 8,233 7,785 5,168 Depreciation and cost of removal (5,149 ) (4,437 ) (5,769 ) Investment/production tax credits (30,096 ) (23,083 ) (18,749 ) Basis adjustment of solar assets due to ITC 4,861 3,959 3,225 Other (2,364 ) (218 ) (961 ) Income tax provision $ 59,724 $ 51,840 $ 35,575 Effective income tax rate 24.8 % 26.8 % 23.6 % |
Schedule of Components of Income Tax Provision (Benefit) | The income tax provision (benefit) from operations consists of the following: (Thousands) 2015 2014 2013 Current Federal $ 20,492 $ 37,904 $ 12,248 State 5,473 11,096 1,763 Deferred Federal 56,480 24,963 34,127 State 7,375 960 6,186 Investment/production tax credits (30,096 ) (23,083 ) (18,749 ) Income tax provision $ 59,724 $ 51,840 $ 35,575 |
Schedule of Deferred Tax Assets and Liabilities | The temporary differences, which give rise to deferred tax assets and (liabilities), consist of the following: (Thousands) 2015 2014 Deferred tax assets Investment tax credits (1) $ 24,770 $ 10,341 Deferred service contract revenue 3,440 3,299 Incentive compensation 10,369 14,632 Fair value of derivatives — 14,350 State net operating losses 12,757 8,962 Conservation incentive plan 2,091 2,312 Underrecovered gas costs 2,827 — Other 12,762 10,078 Total deferred tax assets $ 69,016 $ 63,974 Deferred tax liabilities Property related items $ (440,420 ) $ (371,017 ) Remediation costs (7,641 ) (12,429 ) Equity investments (37,930 ) (35,474 ) Post employment benefits (2,976 ) (10,268 ) Fair value of derivatives (3,180 ) — Under-recovered gas costs — (5,056 ) Other (13,409 ) (11,751 ) Total deferred tax liabilities $ (505,556 ) $ (445,995 ) Total net deferred tax liabilities $ (436,540 ) $ (382,021 ) (1) Includes $2.7 million and $2.8 million for NJNG for fiscal 2015 and fiscal 2014 , respectively , which is being amortized over the life of the related assets and $22.1 million and $7.5 million for NJRCEV for fiscal 2015 and fiscal 2014 , respectively , which is ITC carryforward. |
Schedule of Deferred Tax assets Expiration | The deferred tax assets will expire as follows: (Thousands) Fiscal years 2016 - 2019 $ — Fiscal years 2020 - 2024 — Fiscal years 2025 - 2029 43 Fiscal years 2030 - 2035 34,814 Total $ 34,857 |
COMMITMENTS AND CONTINGENT LI39
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments for Natural Gas Purchases and Future Demans Fees for the Next Five Years | Commitments as of September 30, 2015 , for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2016 2017 2018 2019 2020 Thereafter NJRES: Natural gas purchases $ 230,355 $ 4,438 $ — $ — $ — $ — Storage demand fees 27,734 12,162 7,591 4,473 3,672 3,270 Pipeline demand fees 82,777 35,118 15,440 7,513 4,256 3,900 Sub-total NJRES $ 340,866 $ 51,718 $ 23,031 $ 11,986 $ 7,928 $ 7,170 NJNG: Natural gas purchases $ 64,834 $ 71,248 $ 11,516 $ — $ — $ — Storage demand fees 29,019 25,332 15,871 11,079 5,345 — Pipeline demand fees 57,840 81,767 91,591 90,198 89,431 783,029 Sub-total NJNG $ 151,693 $ 178,347 $ 118,978 $ 101,277 $ 94,776 $ 783,029 Total (1) $ 492,559 $ 230,065 $ 142,009 $ 113,263 $ 102,704 $ 790,199 (1) Does not include amounts related to intercompany asset management agreements between NJRES and NJNG. |
BUSINESS SEGMENT AND OTHER OP40
BUSINESS SEGMENT AND OTHER OPERATIONS DATA (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Business Segments and Other Operations | Information related to the Company's various business segments and other operations is detailed below: (Thousands) Fiscal Years Ended September 30, 2015 2014 2013 Operating revenues Natural Gas Distribution External customers $ 781,970 $ 819,415 $ 787,987 Energy Services External customers (1) 1,872,781 2,858,703 2,351,084 Intercompany 61,526 72,114 5,494 Clean Energy Ventures External customers 32,513 14,575 11,988 Subtotal 2,748,790 3,764,807 3,156,553 Home Services and Other External customers 46,723 45,452 47,009 Intercompany 1,980 1,235 945 Eliminations (63,506 ) (73,349 ) (6,439 ) Total $ 2,733,987 $ 3,738,145 $ 3,198,068 Depreciation and amortization Natural Gas Distribution $ 43,085 $ 40,540 $ 37,999 Energy Services 90 59 44 Clean Energy Ventures 17,297 11,295 8,477 Midstream 6 6 6 Subtotal 60,478 51,900 46,526 Home Services and Other 952 846 786 Eliminations (31 ) (4 ) (2 ) Total $ 61,399 $ 52,742 $ 47,310 Interest income (2) Natural Gas Distribution $ 336 $ 999 $ 653 Energy Services 438 222 1 Clean Energy Ventures 26 — — Midstream 977 950 1,065 Subtotal 1,777 2,171 1,719 Home Services and Other 217 1 2 Eliminations (1,414 ) (950 ) (884 ) Total $ 580 $ 1,222 $ 837 (1) Includes sales to Canada, which accounted for 3.7 , 3.3 and 5.9 percent of total operating revenues during fiscal 2015 , 2014 and 2013 , respectively . (2) Included in other income, net on the Consolidated Statement of Operations. (Thousands) Fiscal Years Ended September 30, 2015 2014 2013 Interest expense, net of capitalized interest Natural Gas Distribution $ 18,534 $ 16,683 $ 14,995 Energy Services 1,209 1,725 2,534 Clean Energy Ventures 7,635 5,300 3,387 Midstream 717 1,396 1,962 Subtotal 28,095 25,104 22,878 Home Services and Other 49 359 1,101 Eliminations (423 ) — — Total $ 27,721 $ 25,463 $ 23,979 Income tax provision (benefit) Natural Gas Distribution $ 39,544 $ 39,374 $ 35,399 Energy Services 39,043 26,458 10,516 Clean Energy Ventures (26,968 ) (21,937 ) (17,711 ) Midstream 6,849 5,227 4,993 Subtotal 58,468 49,122 33,197 Home Services and Other 1,551 2,460 2,550 Eliminations (295 ) 258 (172 ) Total $ 59,724 $ 51,840 $ 35,575 Equity in earnings of affiliates Midstream $ 17,487 $ 14,078 $ 13,868 Eliminations (4,078 ) (3,546 ) (3,519 ) Total $ 13,409 $ 10,532 $ 10,349 Net financial earnings Natural Gas Distribution $ 76,287 $ 74,204 $ 73,846 Energy Services 42,122 79,735 19,311 Clean Energy Ventures 20,101 12,654 10,060 Midstream 9,780 7,498 7,199 Subtotal 148,290 174,091 110,416 Home Services and Other 3,420 2,798 3,292 Eliminations (207 ) (32 ) (27 ) Total $ 151,503 $ 176,857 $ 113,681 Capital expenditures Natural Gas Distribution $ 168,875 $ 152,566 $ 137,083 Clean Energy Ventures 151,002 135,543 59,125 Subtotal 319,877 288,109 196,208 Home Services and Other 209 1,179 1,042 Total $ 320,086 $ 289,288 $ 197,250 Investments in equity investees Midstream 5,780 555 — Total $ 5,780 $ 555 $ — |
Reconciliation of Consolidated NFE to Consolidated Net Income | A reconciliation of consolidated NFE to consolidated net income is as follows: (Thousands) 2015 2014 2013 Consolidated NFE $ 151,503 $ 176,857 $ 113,681 Less: Unrealized (gain) loss on derivative instruments and related transactions (38,681 ) 28,534 (9,418 ) Effects of economic hedging related to natural gas inventory (8,225 ) 26,639 7,635 Tax adjustments 17,449 (20,286 ) 655 Consolidated net income $ 180,960 $ 141,970 $ 114,809 |
Schedule of Assets for Business Segments and Business Operations | The Company's assets for the various business segments and business operations are detailed below: (Thousands) 2015 2014 2013 Assets at end of period: Natural Gas Distribution $ 2,331,060 $ 2,143,684 $ 2,094,940 Energy Services 269,718 457,080 468,096 Clean Energy Ventures 526,475 380,707 253,663 Midstream 182,184 153,891 153,536 Subtotal 3,309,437 3,135,362 2,970,235 Home Services and Other 94,206 82,413 85,293 Intercompany assets (1) (64,605 ) (58,971 ) (50,745 ) Total $ 3,339,038 $ 3,158,804 $ 3,004,783 (1) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
SELECTED QUARTERLY FINANCIAL 41
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | A summary of financial data for each quarter of fiscal 2015 and 2014 follows. Due to the seasonal nature of the Company's businesses, quarterly amounts vary significantly during the fiscal year. In the opinion of management, the information furnished reflects all adjustments necessary for a fair presentation of the results of the interim periods. First Second Third Fourth (Thousands, except per share data) Quarter Quarter Quarter Quarter 2015 Operating revenues $ 824,124 $ 1,013,090 $ 458,467 $ 438,306 Gross margin (1) $ 225,787 $ 145,189 $ 51,217 $ 82,177 Operating income (loss) $ 168,697 $ 82,806 $ (9,309 ) $ 6,257 Net income (loss) $ 123,320 $ 60,903 $ (7,460 ) $ 4,197 Earnings (loss) per share Basic $1.46 $0.71 $(0.09) $0.05 Diluted $1.44 $0.71 $(0.09) $0.05 2014 Operating revenues $ 878,405 $ 1,579,569 $ 688,257 $ 591,914 Gross margin (1) $ 64,432 $ 315,849 $ 28,474 $ 47,375 Operating income (loss) $ 12,224 $ 247,012 $ (29,208 ) $ (28,838 ) Net income (loss) $ 7,693 $ 172,971 $ (14,274 ) $ (24,420 ) Earnings (loss) per share Basic $0.09 $2.06 $(0.17) $(0.29) Diluted $0.09 $2.04 $(0.17) $(0.29) (1) Gross margin consists of operating revenue less cost of goods sold and other direct expenses at NJR's unregulated subsidiaries and utility gross margin at NJNG, which includes natural gas revenues less natural gas purchases, sales tax, a TEFA (which was phased out in January 2014) and regulatory rider expenses. |
NATURE OF BUSINESS (Details)
NATURE OF BUSINESS (Details) shares in Thousands | 12 Months Ended | ||
Sep. 30, 2015Customers | Sep. 29, 2015shares | Sep. 30, 2014 | |
Investment [Line Items] | |||
Total retail customers | 512,300 | ||
Steckman Ridge [Member] | |||
Investment [Line Items] | |||
Ownership interest, percent | 50.00% | ||
PennEast [Member] | |||
Investment [Line Items] | |||
Ownership interest, percent | 20.00% | ||
Iroquois [Member] | |||
Investment [Line Items] | |||
Ownership interest, percent | 5.53% | 5.53% | |
Dominion [Member] | |||
Investment [Line Items] | |||
Ownership interest exchanged (in shares) | shares | 1,840 |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, GAS IN STORAGE (Details) $ in Thousands | Sep. 30, 2015USD ($)Bcf | Sep. 30, 2014USD ($)Bcf |
Public Utilities, Inventory [Line Items] | ||
Gas in Storage | $ 163,905 | $ 277,516 |
Bcf | Bcf | 66 | 77.8 |
NJRES [Member] | ||
Public Utilities, Inventory [Line Items] | ||
Gas in Storage | $ 93,696 | $ 191,250 |
Bcf | Bcf | 44.6 | 56.5 |
NJNG [Member] | ||
Public Utilities, Inventory [Line Items] | ||
Gas in Storage | $ 70,209 | $ 86,266 |
Bcf | Bcf | 21.4 | 21.3 |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, DEMAND FEES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Demand fees | $ 211.1 | $ 214 | $ 215.1 |
NJRES [Member] | |||
Demand fees | 130.6 | 122 | 123 |
NJNG [Member] | |||
Demand fees | $ 80.5 | $ 92 | $ 92.1 |
Minimum [Member] | |||
Storage and pipeline capacity, contract term | 1 year | ||
Maximum [Member] | |||
Storage and pipeline capacity, contract term | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CAPITALIZED AND DEFERRED INTEREST (Details) - USD ($) $ in Thousands | Apr. 23, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Debt instrument, term | 3 years | |||
SBC interest rate | 2.54% | 2.65% | 2.84% | |
Deferred interest | $ 61 | $ 586 | $ 653 | |
Seven-Year Treasury Rate [Member] | ||||
Debt instrument, term | 7 years | |||
Basis spread on Treasury rate | 0.60% | |||
NJNG [Member] | ||||
AFUDC - Debt | $ 2,472 | 1,057 | 921 | |
AFUDC - Equity | 3,825 | 1,562 | 2,037 | |
Total | $ 6,297 | $ 2,619 | $ 2,958 | |
Weighted average interest rate | 4.63% | 3.30% | 1.05% |
SUMMARY OF SIGNIFICANT ACCOUN46
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, SALES TAX ACCOUNTING (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ||||
Sales tax | $ 44.1 | $ 47.4 | $ 44.4 | |
TEFA | [1] | 0 | 1.4 | 5 |
Total | $ 44.1 | $ 48.8 | $ 49.4 | |
[1] | TEFA was phased out in January 2014. |
SUMMARY OF SIGNIFICANT ACCOUN47
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Accounting Policies [Abstract] | ||
Restricted cash | $ 2.5 | $ 1 |
SUMMARY OF SIGNIFICANT ACCOUN48
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, PROPERTY PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Composite rate of depreciation | 2.31% | 2.44% | 2.43% |
Depreciation and amortization | $ 61,399 | $ 52,742 | $ 47,310 |
Property Classifications | |||
Total property, plant and equipment | 2,622,285 | 2,333,543 | |
Accumulated depreciation and amortization | (494,024) | (449,433) | |
Property, plant and equipment, net | 2,128,261 | 1,884,110 | |
Regulated Operation [Member] | |||
Property Classifications | |||
Distribution facilities | 1,695,898 | 1,567,648 | |
Transmission facilities | 289,599 | 281,488 | |
Storage facilities | $ 41,669 | 41,669 | |
Regulated Operation [Member] | Distribution Facilities [Member] | Minimum [Member] | |||
Property Classifications | |||
Estimated Useful Lives | 38 years | ||
Regulated Operation [Member] | Distribution Facilities [Member] | Maximum [Member] | |||
Property Classifications | |||
Estimated Useful Lives | 74 years | ||
Regulated Operation [Member] | Transmission Facilities [Member] | Minimum [Member] | |||
Property Classifications | |||
Estimated Useful Lives | 35 years | ||
Regulated Operation [Member] | Transmission Facilities [Member] | Maximum [Member] | |||
Property Classifications | |||
Estimated Useful Lives | 56 years | ||
Regulated Operation [Member] | Storage Facilities [Member] | Minimum [Member] | |||
Property Classifications | |||
Estimated Useful Lives | 34 years | ||
Regulated Operation [Member] | Storage Facilities [Member] | Maximum [Member] | |||
Property Classifications | |||
Estimated Useful Lives | 47 years | ||
Unregulated Operation [Member] | |||
Property Classifications | |||
Solar property | $ 395,704 | 333,506 | |
Wind property | 137,292 | 42,559 | |
All other property | $ 62,123 | $ 66,673 | |
Unregulated Operation [Member] | Solar Property [Member] | Minimum [Member] | |||
Property Classifications | |||
Estimated Useful Lives | 20 years | ||
Unregulated Operation [Member] | Solar Property [Member] | Maximum [Member] | |||
Property Classifications | |||
Estimated Useful Lives | 25 years | ||
Unregulated Operation [Member] | Wind Property [Member] | |||
Property Classifications | |||
Estimated Useful Lives | 25 years | ||
Unregulated Operation [Member] | All Other Property [Member] | Minimum [Member] | |||
Property Classifications | |||
Estimated Useful Lives | 5 years | ||
Unregulated Operation [Member] | All Other Property [Member] | Maximum [Member] | |||
Property Classifications | |||
Estimated Useful Lives | 35 years |
SUMMARY OF SIGNIFICANT ACCOUN49
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, SALE OF ASSET (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($)a | Sep. 30, 2013USD ($) | |
Long Lived Assets Held-for-sale [Line Items] | |||
Proceeds from sale of property, plant, and equipment | $ 0 | $ 6,010 | $ 0 |
CR&R [Member] | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Number of acres of undeveloped land | a | 25.4 | ||
Proceeds from sale of property, plant, and equipment | $ 6,000 | ||
Pre-tax gain from sale of land | $ 313 |
SUMMARY OF SIGNIFICANT ACCOUN50
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, DISPOSAL OF EQUIPMENT (Details) - NJRCEV [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Long Lived Assets Held-for-sale [Line Items] | ||
Loss on disposal of equipment | $ 766 | |
Proceeds from insurance claim | $ 997 |
SUMMARY OF SIGNIFICANT ACCOUN51
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, IMPAIRMENT OF LONG-LIVED ASSET (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment loss | $ (6.4) | |
Impairment loss, after tax | $ (3.8) | |
OwnEnergy [Member] | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Investment | $ 8.8 | |
Ownership interest rate | 18.70% |
SUMMARY OF SIGNIFICANT ACCOUN52
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, AVAILABLE FOR SALE SECURITIES (Details) - USD ($) shares in Thousands, $ in Thousands | Sep. 29, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Available for sale securities | $ 59,475 | $ 10,672 | |||
Available-for-sale securities, gross unrealized gain (loss) | 7,500 | 8,100 | |||
Total unrealized gains, net of tax | 4,400 | 4,800 | |||
Carrying amount of investment | 132,002 | 153,010 | |||
Proceeds from sale of available for sale securities | $ 0 | $ 0 | $ 482 | ||
Iroquois [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Ownership interest, percent | 5.53% | 5.53% | |||
Carrying amount of investment | $ 21,500 | $ 0 | $ 24,042 | ||
Dominion [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available for sale securities | $ 46,100 | 49,400 | |||
Ownership interest exchanged (in shares) | 1,840 | ||||
Deferred gain | $ 24,600 | ||||
Unrealized gain | 3,300 | ||||
Unrealized gain, after tax | 1,900 | ||||
Available-for-sale Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available for sale securities | [1] | $ 10,100 | $ 10,700 | ||
[1] | Included in other noncurrent assets on the Consolidated Balance Sheets. |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RECEIVABLE BY SUBSIDIARY (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Establishment of allowance for doubtful accounts, customer account balances, days outstanding (more than) | 60 days | ||
Billed | $ 155,273 | $ 189,970 | |
Receivable by Susidiary Percentage | 100.00% | 100.00% | |
Unbilled revenues | $ 6,372 | $ 7,231 | |
NJRES [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Billed | $ 107,461 | $ 142,566 | |
Receivable by Susidiary Percentage | 69.00% | 75.00% | |
NJNG [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Billed | [1] | $ 41,130 | $ 41,281 |
Receivable by Susidiary Percentage | [1] | 26.00% | 22.00% |
NJRCEV [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Billed | $ 1,084 | $ 594 | |
Receivable by Susidiary Percentage | 1.00% | 0.00% | |
NJRHS and Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Billed | $ 5,598 | $ 5,529 | |
Receivable by Susidiary Percentage | 4.00% | 3.00% | |
[1] | Does not include unbilled revenues of $6.4 million and $7.2 million as of September 30, 2015 and 2014, respectively. |
SUMMARY OF SIGNIFICANT ACCOUN54
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, LOAN RECEIVABLE (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable in other current assets | $ 6,200,000 | $ 3,900,000 |
Loans receivable in other noncurrent assets | $ 36,200,000 | 27,300,000 |
Establishment of allowance for doubtful accounts, customer account balances, days outstanding (more than) | 60 days | |
Allowance for doubtful accounts | $ 0 | $ 0 |
Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable term | 2 years | |
Maximum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable term | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN55
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, COMMON STOCK SPLIT (Details) | Jan. 20, 2015 | Sep. 30, 2015shares | Mar. 03, 2015shares | Mar. 02, 2015shares | Sep. 30, 2014shares |
Equity [Abstract] | |||||
Stock split ratio | 2 | ||||
Common stock, shares outstanding | 85,531,423 | 85,400,000 | 42,700,000 | 84,356,310 |
SUMMARY OF SIGNIFICANT ACCOUN56
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ (5,594) | $ (1,621) | ||
Other comprehensive (loss), before reclassifications, net of tax | (5,136) | (5,897) | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | 1,336 | 1,924 | ||
Other comprehensive (loss) income | (3,800) | (3,973) | $ 9,150 | |
Balance at end of period | (9,394) | (5,594) | (1,621) | |
Tax on other comprehensive income before reclassifications | 3,373 | 3,919 | ||
Tax on amounts reclassified from accumulated other comprehensive income | (876) | (1,270) | ||
Tax on net current-period other comprehensive income (loss) | 2,497 | 2,649 | ||
Unrealized Gain on Available for Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 4,782 | 5,400 | ||
Other comprehensive (loss), before reclassifications, net of tax | 1,603 | (618) | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | ||
Other comprehensive (loss) income | 1,603 | (618) | ||
Balance at end of period | 6,385 | 4,782 | 5,400 | |
Tax on other comprehensive income before reclassifications | (1,135) | 426 | ||
Tax on amounts reclassified from accumulated other comprehensive income | 0 | 0 | ||
Tax on net current-period other comprehensive income (loss) | (1,135) | 426 | ||
Net Unrealized Gain on Derivatives [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (93) | 12 | ||
Other comprehensive (loss), before reclassifications, net of tax | (256) | (273) | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | [1] | 349 | 168 | |
Other comprehensive (loss) income | 93 | (105) | ||
Balance at end of period | 0 | (93) | 12 | |
Tax on other comprehensive income before reclassifications | 146 | 159 | ||
Tax on amounts reclassified from accumulated other comprehensive income | (202) | (98) | ||
Tax on net current-period other comprehensive income (loss) | (56) | 61 | ||
Adjustment to Postemployment Benefit Obligation [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (10,283) | (7,033) | ||
Other comprehensive (loss), before reclassifications, net of tax | (6,483) | (5,006) | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | [2] | 987 | 1,756 | |
Other comprehensive (loss) income | (5,496) | (3,250) | ||
Balance at end of period | (15,779) | (10,283) | $ (7,033) | |
Tax on other comprehensive income before reclassifications | 4,362 | 3,334 | ||
Tax on amounts reclassified from accumulated other comprehensive income | (674) | (1,172) | ||
Tax on net current-period other comprehensive income (loss) | $ 3,688 | $ 2,162 | ||
[1] | Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases on the Consolidated Statements of Operations. | |||
[2] | Included in the computation of net periodic pension cost, a component of O&M expense on the Consolidated Statements of Operations. For more details, see Note 10. Employee Benefit Plans. |
SUMMARY OF SIGNIFICANT ACCOUN57
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, PENSION AND POSTEMPLOYMENT PLANS (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015USD ($)plan | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of noncontributory defined benefit retirement plans | 2 | ||
Number of noncontributory medical and life insurance plans | 2 | ||
OPEB [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ | $ 5,672 | $ 4,970 | $ 6,000 |
REGULATION, REGULATORY ASSETS A
REGULATION, REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Regulatory Assets [Line Items] | ||
Regulatory assets-current | $ 24,258 | $ 26,862 |
Regulatory assets-noncurrent | 410,155 | 377,575 |
Regulatory Liabilities [Line Items] | ||
Regulatory liability-current | 12,154 | 6,072 |
Regulatory liabilities-noncurrent | 67,533 | 61,326 |
Conservation Incentive Program [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liability-current | 5,167 | 5,752 |
Overrecovered Gas Costs [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liability-current | 6,987 | 0 |
Derivatives at Fair Value, Net [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liability-current | 0 | 320 |
Regulatory liabilities-noncurrent | 0 | 57 |
Cost of Removal Obligation [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 54,880 | 61,163 |
New Jersey Clean Energy Program [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 11,956 | 0 |
Other Noncurrent Regulatory Liabilities [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 697 | 106 |
New Jersey Clean Energy Program [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-current | 14,293 | 14,285 |
Underrecovered Gas Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-current | 0 | 12,577 |
Derivatives at Fair Value, Net [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-current | 9,965 | 0 |
Regulatory assets-noncurrent | 5,153 | 0 |
Enviromental Remediation Costs Expended, Net of Recoveries [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | 18,886 | 30,916 |
Environmental Restoration Costs, Liability for Future Expenditures [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | 180,400 | 177,000 |
Deferred Income Taxes [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | 17,460 | 9,968 |
SAVEGREEN [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | 26,882 | 29,180 |
Postemployment and Other Benefit Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | 140,636 | 108,507 |
Deferred Superstorm Sandy Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | 15,201 | 15,207 |
Other Noncurrent Regulatory Asset [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | $ 5,537 | $ 6,797 |
REGULATION, REGULATORY FILINGS
REGULATION, REGULATORY FILINGS (Details) | Oct. 27, 2015USD ($) | Oct. 15, 2015 | Jul. 22, 2015USD ($) | Apr. 23, 2014USD ($) | Sep. 03, 2013USD ($)project | Sep. 30, 2014USD ($) | Jul. 31, 2013USD ($) | Oct. 31, 2012USD ($) | Sep. 30, 2015USD ($)station | Sep. 30, 2014USD ($) | Sep. 30, 2013 | Jun. 05, 2015petition | Apr. 02, 2015petition |
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Recovery period | 7 years | ||||||||||||
Tax charge resulting from a change in deductibility of federal subsidies | $ (2,900,000) | ||||||||||||
Regulatory assets, noncurrent | $ 377,575,000 | $ 410,155,000 | $ 377,575,000 | ||||||||||
Regulatory liability, amortization period | 48 years | ||||||||||||
Number of NGV stations opened to the public | station | 2 | ||||||||||||
Debt instrument, term | 3 years | ||||||||||||
Maximum issuance amount | $ 300,000,000 | ||||||||||||
Maximum maturity period | 30 years | ||||||||||||
Credit facility, renewal period | 5 years | ||||||||||||
SAVEGREEN [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Capital investments approved by the BPU | $ 219,300,000 | ||||||||||||
Grants, rebates and loans provided to customers | 117,500,000 | ||||||||||||
Increase in regulatory funding obligations | $ 20,000,000 | ||||||||||||
Additional investments | $ 75,200,000 | ||||||||||||
BGSS [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Requested rate increase (decrease), percentage | (5.00%) | ||||||||||||
Interim rate increase (decrease), percentage | (6.00%) | ||||||||||||
BGSS [Member] | Subsequent Event [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Estimated annual bill credits | $ 76,000,000 | ||||||||||||
(Decrease) in average residential heat customer's bill | (17.00%) | ||||||||||||
CIP [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Requested rate increase (decrease), percentage | (4.30%) | (1.00%) | |||||||||||
Requested rate increase (decrease), percentage | 0.08% | ||||||||||||
AIP I and AIP II [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Total investment | $ 148,700,000 | ||||||||||||
Approved rate, amount | $ 15,300,000 | ||||||||||||
Return on equity | 10.30% | ||||||||||||
AIP I [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public utilities, approved equity capital structure, percentage | 7.76% | ||||||||||||
AIP II [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public utilities, approved equity capital structure, percentage | 7.12% | ||||||||||||
SAFE Program [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Capital investments approved by the BPU | $ 130,000,000 | ||||||||||||
Capital investments approved by the BPU, period | 4 years | ||||||||||||
Compressed Natural Gas Vehicle Refueling Stations [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Capital investments approved by the BPU | $ 10,000,000 | ||||||||||||
NJ RISE Program [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Program recovery term | 5 years | ||||||||||||
Public utilities, approved equity capital structure, percentage | 6.74% | ||||||||||||
Return on equity | 9.75% | ||||||||||||
Number of capital investment projects | project | 6 | ||||||||||||
Originally filed petition for capital investments to Board of Public Utilities | $ 102,500,000 | ||||||||||||
NJ RISE Program [Member] | Subsequent Event [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Requested rate increase (decrease), percentage | 0.07% | ||||||||||||
SBC [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Requested rate increase (decrease), percentage | (0.20%) | ||||||||||||
New Jersey Clean Energy Program [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Increase in regulatory funding obligations | $ 15,600,000 | ||||||||||||
USF [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Requested rate increase (decrease), percentage | (0.60%) | 0.40% | |||||||||||
Red Oak [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Capital investments approved by the BPU | $ 1,400,000 | ||||||||||||
SRL-Southern Reliability Link [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Number of petitions with the BPU | petition | 2 | 2 | |||||||||||
Other Regulatory Asset [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Regulatory asset, maximum amount to be recorded annually | 700,000 | ||||||||||||
Regulatory asset, expense benchmark | 1,400,000 | ||||||||||||
Regulatory assets, threshold of recording regulatory liability when net liability exceeds amount | 1,000,000 | ||||||||||||
Regulatory assets, noncurrent | 6,797,000 | 5,537,000 | $ 6,797,000 | ||||||||||
Other Regulatory Asset, PIM [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Regulatory assets, noncurrent | 3,700,000 | ||||||||||||
Deferred Superstorm Sandy Costs [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Regulatory assets, noncurrent | 15,207,000 | $ 15,201,000 | $ 15,207,000 | ||||||||||
July 2013 SBC Filing [Member] | SBC [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Approved rate, amount | $ 18,700,000 | ||||||||||||
July 2013 SBC Filing [Member] | New Jersey Clean Energy Program [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Requested rate increase (decrease), percentage | 1.90% | ||||||||||||
September 2014 SBC Filing [Member] | SBC [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Requested rate increase (decrease), percentage | (3.30%) | ||||||||||||
Requested rate, amount | $ 8,500,000 | ||||||||||||
September 2014 SBC Filing [Member] | New Jersey Clean Energy Program [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Requested rate, amount | $ 16,300,000 | ||||||||||||
Minimum [Member] | SAVEGREEN [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public utilities, approved equity capital structure, percentage | 6.69% | ||||||||||||
Return on equity | 9.75% | ||||||||||||
Minimum [Member] | SRL-Southern Reliability Link [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Estimated cost of the SRL | $ 175,000,000 | ||||||||||||
Minimum [Member] | June 2012 SAVEGREEN Filing [Member] | SAVEGREEN [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Program recovery term | 2 years | ||||||||||||
Maximum [Member] | SAVEGREEN [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Public utilities, approved equity capital structure, percentage | 7.76% | ||||||||||||
Return on equity | 10.30% | ||||||||||||
Maximum [Member] | SRL-Southern Reliability Link [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Estimated cost of the SRL | $ 180,000,000 | ||||||||||||
Maximum [Member] | June 2012 SAVEGREEN Filing [Member] | SAVEGREEN [Member] | |||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||
Program recovery term | 10 years |
DERIVATIVE INSTRUMENTS, BALANCE
DERIVATIVE INSTRUMENTS, BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 01, 2015 | Sep. 30, 2014 |
Derivatives, Fair Value [Line Items] | |||
Fixed treasury rate | 3.26% | ||
Notional amount of foreign currency derivatives | $ 125,000 | ||
Asset Derivatives, Current | $ 40,743 | $ 64,223 | |
Liability Derivatives, Current | 32,791 | 79,863 | |
Asset Derivatives, Noncurrent | 4,334 | 5,654 | |
Liability Derivatives, Noncurrent | 5,529 | 6,690 | |
Asset Derivatives | 45,087 | 69,877 | |
Liability Derivatives | 38,330 | 86,553 | |
Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 45,087 | 69,877 | |
Liability Derivatives | 38,330 | 86,398 | |
Foreign Currency Contracts [Member] | NJRES [Member] | Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Current | 0 | 0 | |
Liability Derivatives, Current | 0 | 155 | |
Asset Derivatives, Noncurrent | 0 | 0 | |
Liability Derivatives, Noncurrent | 0 | 0 | |
Asset Derivatives | 0 | 0 | |
Liability Derivatives | 0 | 155 | |
Financial Commodity Contracts [Member] | NJRES [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Current | 35,682 | 46,307 | |
Liability Derivatives, Current | 13,347 | 46,725 | |
Asset Derivatives, Noncurrent | 2,626 | 5,537 | |
Liability Derivatives, Noncurrent | 386 | 6,533 | |
Financial Commodity Contracts [Member] | NJNG [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Current | 207 | 2,525 | |
Liability Derivatives, Current | 10,163 | 2,205 | |
Asset Derivatives, Noncurrent | 0 | 82 | |
Liability Derivatives, Noncurrent | 925 | 25 | |
Interest Rate Contracts [Member] | NJNG [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Current | 0 | 0 | |
Liability Derivatives, Current | 4,228 | 0 | |
Physical Forward Commodity Contracts [Member] | NJRES [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Current | 4,854 | 15,391 | |
Liability Derivatives, Current | 9,281 | 30,778 | |
Asset Derivatives, Noncurrent | 1,718 | 35 | |
Liability Derivatives, Noncurrent | 0 | 132 | |
Treasury Lock [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of foreign currency derivatives | 125,000 | ||
First Mortgage Bonds [Member] | Series LL [Member] | NJNG [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Long-term debt | $ 125,000 | $ 125,000 | |
Stated interest rate | 5.60% |
DERIVATIVE INSTRUMENTS, OFFSETT
DERIVATIVE INSTRUMENTS, OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | |
NJRES [Member] | |||
Derivative assets: | |||
Amounts Presented on the Balance Sheets | [1] | $ 44,870 | $ 67,270 |
Offsetting Derivative Instruments | [2] | (15,060) | (63,375) |
Financial Collateral Received/Pledged | [3] | 3,841 | 0 |
Net Amounts | [4] | 33,651 | 3,895 |
Derivative liabilities: | |||
Amounts Presented in Balance Sheets | [1] | 23,004 | 84,323 |
Offsetting Derivative Instruments | [2] | (15,059) | (63,902) |
Financial Collateral Received/Pledged | [3] | (1,200) | (2,614) |
Net Amounts | [4] | 6,745 | 17,807 |
NJRES [Member] | Physical Forward Commodity Contracts [Member] | |||
Derivative assets: | |||
Amounts Presented on the Balance Sheets | [1] | 6,562 | 15,426 |
Offsetting Derivative Instruments | [2] | (1,326) | (11,531) |
Financial Collateral Received/Pledged | [3] | 0 | 0 |
Net Amounts | [4] | 5,236 | 3,895 |
Derivative liabilities: | |||
Amounts Presented in Balance Sheets | [1] | 9,271 | 30,910 |
Offsetting Derivative Instruments | [2] | (1,326) | (12,058) |
Financial Collateral Received/Pledged | [3] | (1,200) | (1,200) |
Net Amounts | [4] | 6,745 | 17,652 |
NJRES [Member] | Financial Commodity Contracts [Member] | |||
Derivative assets: | |||
Amounts Presented on the Balance Sheets | [1] | 38,308 | 51,844 |
Offsetting Derivative Instruments | [2] | (13,734) | (51,844) |
Financial Collateral Received/Pledged | [3] | 3,841 | 0 |
Net Amounts | [4] | 28,415 | 0 |
Derivative liabilities: | |||
Amounts Presented in Balance Sheets | [1] | 13,733 | 53,258 |
Offsetting Derivative Instruments | [2] | (13,733) | (51,844) |
Financial Collateral Received/Pledged | [3] | 0 | (1,414) |
Net Amounts | [4] | 0 | 0 |
NJRES [Member] | Foreign Currency Contracts [Member] | |||
Derivative liabilities: | |||
Amounts Presented in Balance Sheets | [1] | 155 | |
Offsetting Derivative Instruments | [2] | 0 | |
Financial Collateral Received/Pledged | [3] | 0 | |
Net Amounts | [4] | 155 | |
NJNG [Member] | |||
Derivative assets: | |||
Amounts Presented on the Balance Sheets | [1] | 207 | |
Offsetting Derivative Instruments | [2] | (207) | |
Financial Collateral Received/Pledged | [3] | 0 | |
Net Amounts | [4] | 0 | |
Derivative liabilities: | |||
Amounts Presented in Balance Sheets | [1] | 15,316 | 2,230 |
Offsetting Derivative Instruments | [2] | (207) | (2,230) |
Financial Collateral Received/Pledged | [3] | (10,881) | 0 |
Net Amounts | [4] | 4,228 | 0 |
NJNG [Member] | Financial Commodity Contracts [Member] | |||
Derivative assets: | |||
Amounts Presented on the Balance Sheets | [1] | 207 | 2,607 |
Offsetting Derivative Instruments | [2] | (207) | (2,230) |
Financial Collateral Received/Pledged | [3] | 0 | (377) |
Net Amounts | [4] | 0 | $ 0 |
Derivative liabilities: | |||
Amounts Presented in Balance Sheets | [1] | 11,088 | |
Offsetting Derivative Instruments | [2] | (207) | |
Financial Collateral Received/Pledged | [3] | (10,881) | |
Net Amounts | [4] | 0 | |
NJNG [Member] | Interest Rate Contract [Member] | |||
Derivative assets: | |||
Amounts Presented on the Balance Sheets | [1] | 0 | |
Offsetting Derivative Instruments | [2] | 0 | |
Financial Collateral Received/Pledged | [3] | 0 | |
Net Amounts | [4] | 0 | |
Derivative liabilities: | |||
Amounts Presented in Balance Sheets | [1] | 4,228 | |
Offsetting Derivative Instruments | [2] | 0 | |
Financial Collateral Received/Pledged | [3] | 0 | |
Net Amounts | [4] | $ 4,228 | |
[1] | Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. | ||
[2] | Offsetting derivative instruments include: transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. | ||
[3] | Financial collateral includes cash balances at FCMs, as well as cash received from or pledged to other counterparties. | ||
[4] | Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20. |
DERIVATIVE INSTRUMENTS, INCOME
DERIVATIVE INSTRUMENTS, INCOME STATEMENT RELATED DISCLOSURES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Foreign Currency Contracts [Member] | Gas Purchases [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ (402) | $ (432) | |
Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) | 557 | 266 | |
Amount of Gain or (Loss) Recognized on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | |
NJRES [Member] | Nondesignated [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | 107,212 | (251,696) | $ 25,106 |
NJRES [Member] | Physical Commodity Contracts [Member] | Operating Revenues [Member] | Nondesignated [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | 32,568 | (48,977) | 1,117 |
NJRES [Member] | Physical Commodity Contracts [Member] | Gas Purchases [Member] | Nondesignated [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | (34,438) | (83,847) | (17,194) |
NJRES [Member] | Financial Commodity Contracts [Member] | Gas Purchases [Member] | Nondesignated [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | 109,082 | (118,872) | 41,183 |
NJNG [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments gain (loss) recognized in regulatory assets and liabilities, net | (33,400) | $ 10,100 | $ 1,800 |
NJNG [Member] | Treasury Lock [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments gain (loss) recognized in regulatory assets and liabilities, net | $ (4,200) |
DERIVATIVE INSTRUMENTS, VOLUME
DERIVATIVE INSTRUMENTS, VOLUME (Details) $ in Millions | Sep. 30, 2015USD ($)Bcf | Jun. 01, 2015USD ($) | Sep. 30, 2014Bcf | |
Derivative [Line Items] | ||||
Notional amount | $ | $ 125 | |||
Treasury Lock [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | $ | $ 125 | |||
NJNG [Member] | Futures [Member] | Long Position [Member] | ||||
Derivative [Line Items] | ||||
Outstanding long (short) derivatives (in Bcf) | 25.8 | [1] | 17.3 | |
NJRES [Member] | Futures [Member] | Short Position [Member] | ||||
Derivative [Line Items] | ||||
Outstanding long (short) derivatives (in Bcf) | (91.1) | (62.1) | ||
NJRES [Member] | Financial Options [Member] | Long Position [Member] | ||||
Derivative [Line Items] | ||||
Outstanding long (short) derivatives (in Bcf) | 1.2 | 1.2 | ||
NJRES [Member] | Physical [Member] | Long Position [Member] | ||||
Derivative [Line Items] | ||||
Outstanding long (short) derivatives (in Bcf) | 48.2 | 28.6 | ||
[1] | Not included is the notional amount of $125 million related to NJNG’s treasury lock agreement. |
DERIVATIVE INSTRUMENTS, BROKER
DERIVATIVE INSTRUMENTS, BROKER MARGIN DEPOSITS (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Broker margin - Current assets | $ 12,990 | $ 27,339 |
Broker margin - Current (liabilities) | (4,103) | 0 |
NJNG [Member] | ||
Broker margin - Current assets | 12,990 | 1,057 |
NJRES [Member] | ||
Broker margin - Current assets | $ 26,282 | |
Broker margin - Current (liabilities) | $ (4,103) |
DERIVATIVE INSTRUMENTS, CREDIT
DERIVATIVE INSTRUMENTS, CREDIT RISK EXPOSURE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | $ 131,280 | |
Derivative, net liability position, aggregate fair value | 4,200 | $ 39 |
Additional collateral, aggregate fair value | 4,200 | $ 7 |
Investment Grade [Member] | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 103,706 | |
Noninvestment Grade [Member] | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 10,655 | |
Internally-Rated Investment Grade [Member] | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 8,168 | |
Internally-Rated Noninvestment Grade [Member] | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | $ 8,751 |
FAIR VALUE, DEBT (Details)
FAIR VALUE, DEBT (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital leases | $ 46,900 | $ 49,900 | |
Fair Value, Inputs, Level 2 [Member] | NJNG [Member] | Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | [1] | 582,845 | 432,845 |
Fair Value, Inputs, Level 2 [Member] | NJNG [Member] | Fair Market Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | 584,240 | 453,773 | |
Fair Value, Inputs, Level 2 [Member] | NJR [Member] | Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | 225,000 | 125,000 | |
Fair Value, Inputs, Level 2 [Member] | NJR [Member] | Fair Market Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | $ 233,079 | $ 133,136 | |
[1] | Excludes capital leases of $46.9 million and $49.9 million as of September 30, 2015 and 2014, respectively. |
FAIR VALUE, HIERARCHY (Details)
FAIR VALUE, HIERARCHY (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | |
Assets, Fair Value Disclosure [Abstract] | |||
Derivative assets | $ 45,087 | $ 69,877 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 38,330 | 86,553 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale equity securities - energy industry | [1] | 59,475 | 10,672 |
Other | [2] | 1,572 | 1,299 |
Total assets at fair value | 106,134 | 81,848 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total liabilities at fair value | 38,330 | 86,553 | |
Fair Value, Measurements, Recurring [Member] | Physical Forward Commodity Contracts [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative assets | 6,572 | 15,426 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 9,281 | 30,910 | |
Fair Value, Measurements, Recurring [Member] | Financial Commodity Contracts - Natural Gas [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative assets | 38,515 | 54,451 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 24,821 | 55,488 | |
Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 4,228 | ||
Fair Value, Measurements, Recurring [Member] | Foreign Currency Contracts [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 155 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale equity securities - energy industry | [1] | 59,475 | 10,672 |
Other | [2] | 1,572 | 1,299 |
Total assets at fair value | 99,562 | 66,422 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total liabilities at fair value | 24,821 | 55,488 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Physical Forward Commodity Contracts [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative assets | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Financial Commodity Contracts - Natural Gas [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative assets | 38,515 | 54,451 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 24,821 | 55,488 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Interest Rate Contract [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 0 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign Currency Contracts [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale equity securities - energy industry | [1] | 0 | 0 |
Other | [2] | 0 | 0 |
Total assets at fair value | 6,572 | 15,426 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total liabilities at fair value | 13,509 | 31,065 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Physical Forward Commodity Contracts [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative assets | 6,572 | 15,426 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 9,281 | 30,910 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Financial Commodity Contracts - Natural Gas [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative assets | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Contract [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 4,228 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Currency Contracts [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 155 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale equity securities - energy industry | [1] | 0 | 0 |
Other | [2] | 0 | 0 |
Total assets at fair value | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total liabilities at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Physical Forward Commodity Contracts [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative assets | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Financial Commodity Contracts - Natural Gas [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative assets | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Contract [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | $ 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Foreign Currency Contracts [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liabilities | $ 0 | ||
[1] | Included in other noncurrent assets on the Consolidated Balance Sheets. | ||
[2] | Includes various money market funds in Level 1. |
INVESTMENTS IN EQUITY INVESTE68
INVESTMENTS IN EQUITY INVESTEES, EQUITY METHOD INVESTMENTS (Details) shares in Thousands, $ in Thousands | Sep. 29, 2015USD ($)shares | Sep. 30, 2014USD ($)Investormi | Sep. 30, 2015USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Investments in equity investees | $ 153,010 | $ 132,002 | ||
PennEast [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of investors | Investor | 4 | |||
Construction plan, pipeline distance (in miles) | mi | 118 | |||
Ownership interest, percent | 20.00% | |||
Investments in equity investees | $ 555 | $ 6,353 | ||
Iroquois [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest, percent | 5.53% | 5.53% | ||
Investments in equity investees | $ 21,500 | $ 24,042 | $ 0 | |
Dominion [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest exchanged (in shares) | shares | 1,840 | |||
Deferred gain | $ 24,600 | |||
Steckman Ridge [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest, percent | 50.00% | |||
Investments in equity investees | [1] | 128,413 | $ 125,649 | |
Steckman Ridge [Member] | Equity Method Investee [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Outstanding principal balance | $ 70,400 | $ 70,400 | ||
[1] | Includes loans with a total outstanding principal balance of $70.4 million for both fiscal 2015 and 2014, which accrue interest at a variable rate that resets quarterly and are due October 1, 2023. |
INVESTMENTS IN EQUITY INVESTE69
INVESTMENTS IN EQUITY INVESTEES, COST METHOD INVESTMENTS (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2015USD ($) | |
Equity Method Investments and Joint Ventures [Abstract] | |
Realized pre-tax gain | $ 3 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |||||
Earnings Per Share [Abstract] | |||||||||||||||
Net income, as reported | $ 4,197 | $ (7,460) | $ 60,903 | $ 123,320 | $ (24,420) | $ (14,274) | $ 172,971 | $ 7,693 | $ 180,960 | $ 141,970 | $ 114,809 | ||||
Basic earnings per share | |||||||||||||||
Weighted average shares of common stock outstanding-basic | 85,186,000 | 84,198,000 | 83,316,000 | ||||||||||||
Basic earnings per common share (in usd per share) | $ 0.05 | $ (0.09) | $ 0.71 | $ 1.46 | $ (0.29) | $ (0.17) | $ 2.06 | $ 0.09 | $ 2.12 | $ 1.69 | $ 1.38 | ||||
Diluted earnings per share | |||||||||||||||
Weighted average shares of common stock outstanding-basic | 85,186,000 | 84,198,000 | 83,316,000 | ||||||||||||
Incremental shares | [1] | 1,079,000 | 724,000 | 312,000 | |||||||||||
Weighted average shares of common stock outstanding-diluted | 86,265,000 | 84,922,000 | 83,628,000 | ||||||||||||
Diluted earnings per common share (in usd per share) | $ 0.05 | $ (0.09) | $ 0.71 | $ 1.44 | $ (0.29) | $ (0.17) | $ 2.04 | $ 0.09 | $ 2.10 | [2] | $ 1.67 | [2] | $ 1.37 | [2] | |
Anti-dilutive securities excluded from the calculation of diluted earnings per share (in shares) | 0 | 0 | 0 | ||||||||||||
[1] | Incremental shares consist of stock options, stock awards and performance units. | ||||||||||||||
[2] | There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2015, 2014 and 2013. |
DEBT, SCHEDULE OF LONG-TERM DEB
DEBT, SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 15, 2015 | Nov. 07, 2014 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 843,595 | $ 598,209 | ||
NJNG [Member] | ||||
Debt Instrument [Line Items] | ||||
Less: Current maturities of long-term debt | (11,138) | (9,505) | ||
Total long-term debt | 618,595 | 473,209 | ||
NJNG [Member] | First Mortgage Bonds [Member] | Series II [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 10,300 | 10,300 | ||
Stated interest rate | 4.50% | |||
NJNG [Member] | First Mortgage Bonds [Member] | Series JJ [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 10,500 | 10,500 | ||
Stated interest rate | 4.60% | |||
NJNG [Member] | First Mortgage Bonds [Member] | Series KK [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 15,000 | 15,000 | ||
Stated interest rate | 4.90% | |||
NJNG [Member] | First Mortgage Bonds [Member] | Series LL [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 125,000 | 125,000 | ||
Stated interest rate | 5.60% | |||
NJNG [Member] | First Mortgage Bonds [Member] | Series MM [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 9,545 | 9,545 | ||
Interest rate term | Variable | |||
NJNG [Member] | First Mortgage Bonds [Member] | Series NN [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 41,000 | 41,000 | ||
Interest rate term | Variable | |||
NJNG [Member] | First Mortgage Bonds [Member] | Series OO [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 46,500 | 46,500 | ||
Interest rate term | Variable | |||
NJNG [Member] | First Mortgage Bonds [Member] | Series PP [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 50,000 | 50,000 | ||
Stated interest rate | 3.15% | |||
NJNG [Member] | First Mortgage Bonds [Member] | Series, QQ [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 70,000 | 70,000 | ||
Stated interest rate | 3.58% | |||
NJNG [Member] | First Mortgage Bonds [Member] | Series, RR [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 55,000 | 55,000 | ||
Stated interest rate | 4.61% | |||
NJNG [Member] | First Mortgage Bonds [Member] | Series, SS [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 50,000 | 0 | ||
Stated interest rate | 2.82% | |||
NJNG [Member] | First Mortgage Bonds [Member] | Series, TT [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 100,000 | 0 | ||
Stated interest rate | 3.66% | |||
NJNG [Member] | Capital Lease Obligation [Member] | Capital lease obligation-Buildings [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 16,700 | 18,726 | ||
NJNG [Member] | Capital Lease Obligation [Member] | Capital lease obligation-Meters [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 30,188 | 31,143 | ||
NJR [Member] | ||||
Debt Instrument [Line Items] | ||||
Less: Current maturities of long-term debt | 0 | (25,000) | ||
Total long-term debt | 225,000 | 125,000 | ||
NJR [Member] | Unsecured Senior Notes 6.05% [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 50,000 | 50,000 | ||
Stated interest rate | 6.05% | |||
NJR [Member] | Unsecured Senior Notes 1.94% [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | $ 25,000 | 25,000 | |
Stated interest rate | 1.94% | |||
NJR [Member] | Unsecured Senior Notes 2.51% [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 25,000 | 25,000 | ||
Stated interest rate | 2.51% | |||
NJR [Member] | Unsecured Senior Notes 3.25% [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 50,000 | 50,000 | ||
Stated interest rate | 3.25% | |||
NJR [Member] | Unsecured Senior Notes 3.48% [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 100,000 | $ 100,000 | $ 0 | |
Stated interest rate | 3.48% | 3.48% |
DEBT, REDEMPTION REQUIREMENTS (
DEBT, REDEMPTION REQUIREMENTS (Details) $ in Millions | Sep. 30, 2015USD ($) |
NJNG [Member] | |
Debt Instrument [Line Items] | |
2,016 | $ 0 |
2,017 | 0 |
2,018 | 125 |
2,019 | 0 |
2,020 | 0 |
Thereafter | 457.8 |
NJR [Member] | |
Debt Instrument [Line Items] | |
2,016 | 0 |
2,017 | 50 |
2,018 | 25 |
2,019 | 0 |
2,020 | 0 |
Thereafter | $ 150 |
DEBT, FIRST MORTGAGE BONDS (Det
DEBT, FIRST MORTGAGE BONDS (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015USD ($)debt_instrument | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Debt Instrument [Line Items] | |||
NJBPU dividend restriction, equity to capitalization ratio | 0.30 | ||
Debt to equity ratio | 0.542 | ||
Payment of long-term debt | $ 37,039 | $ 82,586 | $ 8,953 |
Variable Rate Debt [Member] | |||
Debt Instrument [Line Items] | |||
Number of debt instruments issued | debt_instrument | 3 | ||
Long-term debt | $ 97,000 | ||
Series HH [Member] | |||
Debt Instrument [Line Items] | |||
Repayment of first mortgage bonds | 12,000 | ||
First Mortgage Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Maximum amount that can be issued | 830,700 | ||
NJNG [Member] | |||
Debt Instrument [Line Items] | |||
Payment of long-term debt | 60,000 | ||
NJNG [Member] | First Mortgage Bonds [Member] | Series PP [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 50,000 | 50,000 | |
Stated interest rate | 3.15% | ||
NJNG [Member] | First Mortgage Bonds [Member] | Series, QQ [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 70,000 | 70,000 | |
Stated interest rate | 3.58% | ||
NJNG [Member] | First Mortgage Bonds [Member] | Series, RR [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 55,000 | $ 55,000 | |
Stated interest rate | 4.61% | ||
NJNG [Member] | First Mortgage Bonds [Member] | Private Placement [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.77% | ||
NJNG [Member] | First Mortgage Bonds [Member] | Series HH [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.00% | ||
NJNG [Member] | First Mortgage Bonds [Member] | Series, SS [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 50,000 | $ 0 | |
Stated interest rate | 2.82% | ||
NJNG [Member] | First Mortgage Bonds [Member] | Series, TT [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 100,000 | $ 0 | |
Stated interest rate | 3.66% | ||
NJNG [Member] | Variable Demand Rate Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest accrual period | 5 years | ||
Maximum daily rate | 12.00% | ||
Interest rate on EDA Bonds | 0.69% | ||
NJNG [Member] | Variable Demand Rate Notes [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.55% | ||
NJNG [Member] | Variable Demand Rate Notes [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 70.00% |
DEBT, SALE-LEASEBACKS (Details)
DEBT, SALE-LEASEBACKS (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Debt Instrument [Line Items] | |||
Proceeds from sale-leaseback transaction | $ 7,216 | $ 7,576 | $ 7,076 |
NJNG [Member] | |||
Debt Instrument [Line Items] | |||
Sale leaseback transaction, lease term | 25 years 6 months | ||
Sale leaseback transaction, lease renewal term | 5 years | ||
Sale leaseback transaction, maximum lease renewal term (as a percent) | 4 | ||
Proceeds from sale-leaseback transaction | $ 7,200 | 7,600 | 7,100 |
Sale leaseback transaction, other payments required | $ 768 | $ 956 | $ 752 |
DEBT, CONTRACTUAL COMMITMENTS (
DEBT, CONTRACTUAL COMMITMENTS (Details) - NJR [Member] $ in Millions | Sep. 30, 2015USD ($) |
Debt Instrument [Line Items] | |
2,016 | $ 13.3 |
2,017 | 12.1 |
2,018 | 10.2 |
2,019 | 7.4 |
2,020 | 6.6 |
Thereafter | 3.6 |
Subtotal | 53.2 |
Less: Interest component | (6.3) |
Total | $ 46.9 |
DEBT, NJR LONG-TERM DEBT (Detai
DEBT, NJR LONG-TERM DEBT (Details) - NJR [Member] | Sep. 26, 2013USD ($) | Sep. 30, 2015USD ($)debt_instrument | Sep. 15, 2015USD ($) | Nov. 07, 2014USD ($) | Sep. 30, 2014USD ($) | Jul. 25, 2014USD ($) | Jun. 30, 2014USD ($) | May. 10, 2013USD ($) |
Unsecured Senior Notes 3.25% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 50,000,000 | $ 50,000,000 | ||||||
Stated interest rate | 3.25% | |||||||
Unsecured Senior Notes 3.48% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 100,000,000 | $ 100,000,000 | 0 | |||||
Stated interest rate | 3.48% | 3.48% | ||||||
Unsecured Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of debt instruments | debt_instrument | 2 | |||||||
Unsecured Senior Notes 1.94% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 0 | $ 25,000,000 | 25,000,000 | |||||
Stated interest rate | 1.94% | |||||||
Unsecured Senior Notes 2.51% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 25,000,000 | 25,000,000 | ||||||
Stated interest rate | 2.51% | |||||||
Variable Rate Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 0 | $ 0 | ||||||
Unsecured Private Placement, Debt Shell Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of debt instruments | debt_instrument | 2 | |||||||
Debt Shelf Facility Prudential [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | $ 75,000,000 | ||||||
Debt Shelf Facility Metlife [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||||
Debt instrument, issuance period | 3 years |
DEBT, SHORT-TERM BANK FACILITIE
DEBT, SHORT-TERM BANK FACILITIES (Details) - USD ($) | 12 Months Ended | |||||||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 28, 2015 | Sep. 26, 2014 | Aug. 31, 2014 | [3] | Jun. 05, 2014 | May. 15, 2014 | [3] | Jan. 31, 2014 | |||
NJR [Member] | Letters of Credit [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Bank revolving credit facilities | [1],[2] | $ 10,000,000 | ||||||||||
Letters of credit outstanding, amount | $ 16,500,000 | $ 20,500,000 | ||||||||||
NJR [Member] | Bank Revolving Credit Facilities [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Bank revolving credit facilities | [3] | 425,000,000 | $ 425,000,000 | $ 325,000,000 | ||||||||
Outstanding at end of period | $ 39,350,000 | $ 148,000,000 | ||||||||||
Weighted average interest rate at end of period | 1.17% | 1.08% | ||||||||||
Amount available at end of period | [4] | $ 369,176,000 | $ 256,484,000 | |||||||||
Commitment fee percentage | 0.075% | 0.10% | ||||||||||
NJR [Member] | Term Loan [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Bank revolving credit facilities | [2] | $ 100,000,000 | $ 0 | |||||||||
Amount available at end of period | 100,000,000 | 0 | ||||||||||
NJNG [Member] | Commercial Paper [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Outstanding at end of period | $ 27,000,000 | $ 153,000,000 | ||||||||||
Weighted average interest rate at end of period | 0.20% | 0.12% | ||||||||||
NJNG [Member] | Letters of Credit [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Letters of credit outstanding, amount | $ 731,000 | $ 731,000 | ||||||||||
NJNG [Member] | Bank Revolving Credit Facilities [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Bank revolving credit facilities | 250,000,000 | [1] | $ 250,000,000 | $ 250,000,000 | ||||||||
Commitment fee percentage | 0.075% | |||||||||||
NJNG [Member] | Bank Revolving Credit Facilities [Member] | Commercial Paper [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Amount available at end of period | [5] | $ 222,269,000 | $ 96,269,000 | |||||||||
NJNG [Member] | Term Loan [Member] | ||||||||||||
Short-term Debt [Line Items] | ||||||||||||
Bank revolving credit facilities | $ 100,000,000 | |||||||||||
[1] | Committed credit facilities, which require commitment fees of .075 percent on the unused amounts. | |||||||||||
[2] | Uncommitted credit facilities, which require no commitment fees. | |||||||||||
[3] | Committed credit facilities, which require commitment fees of .075 percent and .1 percent on the unused amounts as of September 30, 2015 and 2014, respectively. | |||||||||||
[4] | Letters of credit outstanding total $16.5 million and $20.5 million as of September 30, 2015 and 2014, respectively, which reduces amount available by the same amount. | |||||||||||
[5] | Letters of credit outstanding total $731,000 and $731,000 as of September 30, 2015 and 2014, respectively, which reduces amount available by the same amount. |
DEBT, NJR SHORT-TERM DEBT (Deta
DEBT, NJR SHORT-TERM DEBT (Details) | Sep. 15, 2014USD ($) | Apr. 23, 2014 | Oct. 24, 2015USD ($) | Sep. 30, 2015USD ($)debt_instrument | Sep. 28, 2015USD ($) | Sep. 30, 2014USD ($) | Jun. 05, 2014USD ($) | Jan. 31, 2014USD ($) | |
Short-term Debt [Line Items] | |||||||||
Debt instrument, term | 3 years | ||||||||
Bank term loan | $ 66,350,000 | $ 301,000,000 | |||||||
NJR [Member] | Bank Revolving Credit Facilities [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | [1] | $ 425,000,000 | 425,000,000 | $ 325,000,000 | |||||
NJR [Member] | Term Loan [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | [2] | $ 100,000,000 | 0 | ||||||
Debt instrument, term | 1 year | ||||||||
Bank term loan | $ 100,000,000 | ||||||||
NJR [Member] | Bank Credit Facilities, Santander Bank [Member] | Subsequent Event [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||||||||
NJR [Member] | Letters of Credit [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | [2],[3] | $ 10,000,000 | |||||||
Number of debt instruments | debt_instrument | 6 | ||||||||
Letters of credit outstanding, amount | $ 16,500,000 | $ 20,500,000 | |||||||
NJR [Member] | Letters of Credit on Behalf of NJRES [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Number of debt instruments | debt_instrument | 1 | ||||||||
Letters of credit outstanding, amount | $ 12,000,000 | ||||||||
NJR [Member] | Letters of Credit on Behalf of NJRCEV [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Number of debt instruments | debt_instrument | 5 | ||||||||
Letters of credit outstanding, amount | $ 4,500,000 | ||||||||
[1] | Committed credit facilities, which require commitment fees of .075 percent and .1 percent on the unused amounts as of September 30, 2015 and 2014, respectively. | ||||||||
[2] | Uncommitted credit facilities, which require no commitment fees. | ||||||||
[3] | Committed credit facilities, which require commitment fees of .075 percent on the unused amounts. |
DEBT, NJNG SHORT-TERM DEBT (Det
DEBT, NJNG SHORT-TERM DEBT (Details) | Sep. 26, 2014USD ($) | May. 15, 2014USD ($) | Apr. 23, 2014 | Sep. 30, 2015USD ($)debt_instrument | Sep. 30, 2014USD ($) | Aug. 31, 2014USD ($) | [1] | ||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, term | 3 years | ||||||||
NJNG [Member] | Letters of Credit [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Number of debt instruments | debt_instrument | 2 | ||||||||
Letters of credit outstanding, amount | $ 731,000 | $ 731,000 | |||||||
NJNG [Member] | Bank Revolving Credit Facilities [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 250,000,000 | [1] | $ 250,000,000 | [2] | $ 250,000,000 | ||||
Debt instrument, term | 5 years | ||||||||
Line of credit facility, maximum borrowing capacity, incremental increase | $ 15,000,000 | ||||||||
Line of credit facility, maximum borrowing capacity, maximum increase | $ 50,000,000 | ||||||||
NJNG [Member] | JPMC Term Loan [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||||||||
Debt instrument, term | 4 years | ||||||||
[1] | Committed credit facilities, which require commitment fees of .075 percent and .1 percent on the unused amounts as of September 30, 2015 and 2014, respectively. | ||||||||
[2] | Committed credit facilities, which require commitment fees of .075 percent on the unused amounts. |
STOCK-BASED COMPENSATION, NARRA
STOCK-BASED COMPENSATION, NARRATIVE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from exercise of stock options | $ 724 | $ 1,200 | ||
Performance Shares, Market Condition Award [Member] | Vesting September 2017 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | [1] | 41,214 | ||
Performance Shares, Market Condition Award [Member] | Vesting September 2016 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | [1] | 69,154 | ||
Performance Shares, Subject to Performance Conditions [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | [1] | 61,576 | 78,574 | |
Deferred compensation related to unvested performance shares, period | 2 years | |||
Performance Shares, Subject to Performance Conditions [Member] | Vesting September 2017 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted and expected to be distributed | 34,622 | |||
Performance Shares, Subject to Performance Conditions [Member] | Vesting Annually Over a Three Year Period Beginning in September 2015 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Number of shares granted and expected to be distributed | 26,954 | |||
Performance Shares, Subject to Performance Conditions [Member] | Vesting September 2016 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted and expected to be distributed | 50,480 | |||
Performance Shares, Subject to Performance Conditions [Member] | Vesting Annually Over a Three Year Period Beginning in September 2014 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Number of shares granted and expected to be distributed | 28,094 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | [1] | 102,790 | 147,728 | 99,808 |
Deferred compensation related to unvested restricted and performance shares | $ 3,200 | |||
Weighted average fair value of shares granted (in usd per share) | $ 28.25 | $ 20.28 | $ 15.37 | |
Performance Shares [Member] | Vesting September 2015 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | [1] | 99,808 | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 61,972 | 33,356 | 4,278 | |
Deferred compensation related to unvested restricted and performance shares | $ 798 | |||
Deferred compensation related to unvested performance shares, period | 2 years | 3 years | ||
Weighted average fair value of shares granted (in usd per share) | $ 29.41 | $ 22.78 | $ 20.31 | |
Restricted Stock [Member] | Vesting September 2015 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 3,194 | |||
Restricted Stock [Member] | Vesting Annually Over a Three Year Period Beginning in October 2015 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 48,542 | |||
Award vesting period | 3 years | |||
Restricted Stock [Member] | Vesting October 2015 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 10,236 | |||
Restricted Stock [Member] | Vesting Annually over a Three Year Period Beginning in October 2014 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 33,356 | |||
Restricted Stock [Member] | Vesting October 2014 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 4,278 | |||
Employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future issuance | 2,893,322 | |||
Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future issuance | 31,704 | |||
Amount of expense to be recognized | $ 200 | |||
Director [Member] | Scheduled to Vest Immediately [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 26,122 | 31,696 | 32,524 | |
Weighted average fair value of shares granted (in usd per share) | $ 30.63 | $ 22.40 | $ 19.99 | |
[1] | The number of common shares issued related to certain performance shares may range from zero to 150 percent of the number of shares shown in the table above based on the Company's achievement of performance goals. |
STOCK-BASED COMPENSATION, STOCK
STOCK-BASED COMPENSATION, STOCK-BASED COMPENSATION EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 9,645 | $ 17,816 | $ 3,456 |
Compensation expense included in operation and maintenance expense, Income tax benefit | (3,940) | (7,278) | (1,412) |
Total, net of tax | 5,705 | 10,538 | 2,044 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2,473 | 2,509 | 1,049 |
Restricted and Non-Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,899 | 1,664 | 1,081 |
Deferred Retention Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 5,273 | $ 13,643 | $ 1,326 |
STOCK-BASED COMPENSATION, STO82
STOCK-BASED COMPENSATION, STOCK OPTION ACTIVITY (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Shares | |||
Outstanding at beginning of period (in shares) | 48,250 | 133,250 | 163,250 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (48,250) | (85,000) | (30,000) |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding at end of period (in shares) | 0 | 48,250 | 133,250 |
Shares, Exercisable at end of period (in shares) | 0 | 48,250 | 133,250 |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in usd per share) | $ 15 | $ 14.77 | $ 14.36 |
Granted (in usd per share) | 0 | 0 | 0 |
Exercised (in usd per share) | 15 | 13.13 | 12.54 |
Forfeited (in usd per share) | 0 | 0 | 0 |
Outstanding at end of period (in usd per share) | 0 | 15 | 14.77 |
Weighted Average Exercise Price, Exercisable at end of period (in usd per share) | $ 0 | $ 15 | $ 14.77 |
STOCK-BASED COMPENSATION, PERFO
STOCK-BASED COMPENSATION, PERFORMANCE SHARES AND RESTRICTED STOCK ACTIVITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Nov. 10, 2015 | Nov. 11, 2014 | |||||
Performance Shares [Member] | |||||||||
Shares | |||||||||
Outstanding at beginning of period (in shares) | [1] | 247,536 | 156,644 | 169,486 | |||||
Granted (in shares) | [1] | 102,790 | 147,728 | 99,808 | |||||
Vested (in shares) | [1] | (112,446) | [2] | (56,836) | [3] | 0 | |||
Cancelled/forfeited (in shares) | [1] | (23,416) | [4] | 0 | (112,650) | [5] | |||
Outstanding at end of period (in shares) | [1] | 214,464 | 247,536 | 156,644 | |||||
Weighted Average Grant Date Fair Value | |||||||||
Outstanding at beginning of period (in usd per share) | $ 18.30 | $ 18.35 | $ 16.63 | ||||||
Granted (in usd per share) | 28.25 | 20.28 | 15.37 | ||||||
Vested (in usd per share) | 17.10 | [2] | 23.59 | [3] | 0 | ||||
Cancelled/forfeited (in usd per share) | 17.98 | [4] | 0 | 13.12 | [5] | ||||
Outstanding at end of period (in usd per share) | $ 23.40 | $ 18.30 | $ 18.35 | ||||||
Total Fair Value of Vested Shares | |||||||||
Percent of awards to common stock, target | 100.00% | 100.00% | 100.00% | ||||||
Performance Shares [Member] | Minimum [Member] | |||||||||
Total Fair Value of Vested Shares | |||||||||
Percent of awards to common stock | 0.00% | ||||||||
Performance Shares [Member] | Maximum [Member] | |||||||||
Total Fair Value of Vested Shares | |||||||||
Percent of awards to common stock | 150.00% | ||||||||
Performance Shares, Subject to Performance Conditions [Member] | |||||||||
Shares | |||||||||
Granted (in shares) | [1] | 61,576 | 78,574 | ||||||
Total Fair Value of Vested Shares | |||||||||
Percent of awards to common stock | 120.00% | 150.00% | |||||||
Number of common shared issued | 112,918 | 85,254 | 0 | 8,984 | |||||
Performance Shares, Subject to Performance Conditions [Member] | Subsequent Event [Member] | |||||||||
Total Fair Value of Vested Shares | |||||||||
Number of common shared issued | 9,364 | ||||||||
Number of shares canceled | 9,364 | ||||||||
Restricted Stock [Member] | |||||||||
Shares | |||||||||
Outstanding at beginning of period (in shares) | 41,491 | 78,511 | 118,692 | ||||||
Granted (in shares) | 61,972 | 33,356 | 4,278 | ||||||
Vested (in shares) | (18,170) | (68,460) | (39,359) | ||||||
Cancelled/forfeited (in shares) | (3,801) | (1,916) | (5,100) | ||||||
Outstanding at end of period (in shares) | 81,492 | 41,491 | 78,511 | ||||||
Weighted Average Grant Date Fair Value | |||||||||
Outstanding at beginning of period (in usd per share) | $ 22.60 | $ 20.53 | $ 20.20 | ||||||
Granted (in usd per share) | 29.41 | 22.78 | 20.31 | ||||||
Vested (in usd per share) | 24.45 | 20.37 | 19.55 | ||||||
Cancelled/forfeited (in usd per share) | 26.79 | 20.37 | 20.37 | ||||||
Outstanding at end of period (in usd per share) | $ 27.17 | $ 22.60 | $ 20.53 | ||||||
Total Fair Value of Vested Shares | |||||||||
Vested | $ 510 | $ 1,534 | $ 888 | ||||||
[1] | The number of common shares issued related to certain performance shares may range from zero to 150 percent of the number of shares shown in the table above based on the Company's achievement of performance goals. | ||||||||
[2] | As certified by the Company's Leadership and Compensation Committee on November 10, 2015, the number of common shares related to performance shares earned was 120 percent, or 112,918 shares, excluding accumulated dividends. The number represented on this line is the target number of 100 percent. See footnote (1) above. Also included in the vested number are 9,364 shares certified by the Leadership and Compensation Committee on November 11, 2014 and 8,984 shares certified by the Leadership and Compensation Committee on November 10, 2015. | ||||||||
[3] | As certified by the Company's Leadership and Compensation Committee on November 11, 2014, the number of common shares related to performance shares earned was 150 percent, or 85,254 shares, excluding accumulated dividends. The number represented on this line is the target number of 100 percent. See footnote (1) above. | ||||||||
[4] | As certified by the Company's Leadership and Compensation Committee on November 10, 2015, 9,364 shares were canceled due to not achieving a certain performance target. The remainder were forfeitures due to individuals departing the company. | ||||||||
[5] | As certified by the Company's Leadership and Compensation Committee on November 12, 2013, the number of common shares granted in fiscal 2011 related to performance shares and market condition shares earned was zero. The number represented on this line is the target number of 100 percent. See footnote (1) above. |
STOCK-BASED COMPENSATION, DEFER
STOCK-BASED COMPENSATION, DEFERRED RETENTION STOCK (Details) - Deferred Retention Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Shares | |||
Outstanding at beginning of period (in shares) | 276,782 | 223,586 | 98,342 |
Granted/Vested (in shares) | 462,790 | 57,970 | 134,590 |
Delivered (in shares) | (95,098) | 0 | 0 |
Forfeited (in shares) | (11,744) | (4,774) | (9,346) |
Outstanding at end of period (in shares) | 632,730 | 276,782 | 223,586 |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of period (in usd per share) | $ 21.95 | $ 21.69 | $ 23.59 |
Granted/Vested (in usd per share) | 29.32 | 22.88 | 20.31 |
Delivered (in usd per share) | 23.62 | 0 | 0 |
Forfeited (in usd per share) | 24.69 | 21.47 | 21.72 |
Outstanding at end of period (in usd per share) | $ 27.03 | $ 21.95 | $ 21.69 |
Total Fair Value of Vested Shares | |||
Delivered | $ 2,519 | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS, PENSION
EMPLOYEE BENEFIT PLANS, PENSION AND OTHER POSTEMPLOYMENT BENEFIT PLANS, NARRATIVE (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)plan | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Number of noncontributory defined benefit retirement plans | plan | 2 | ||||
Required number of years of service | 1 year | ||||
Years of service and average compensation, basis period for plan benefits | 60 months | ||||
Special termination benefits | $ 5,000,000 | ||||
Pension and postemployment benefit costs | 3,500,000 | ||||
Other special termination benefits | $ 1,500,000 | ||||
Long-term real rate of return on assets (as a percent) | 6.00% | ||||
Pension [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer discretionary contributions | $ 0 | $ 0 | |||
OPEB [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Special termination benefits | 0 | 648,000 | $ 0 | ||
Employer contributions | 5,672,000 | $ 4,970,000 | $ 6,000,000 | ||
OPEB [Member] | Minimum [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Estimated future employer contributions over the next five years | 3,000,000 | ||||
OPEB [Member] | Maximum [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Estimated future employer contributions over the next five years | $ 5,000,000 | ||||
Scenario, Forecast [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer discretionary contributions | $ 30,000,000 |
EMPLOYEE BENEFIT PLANS, SUMMARY
EMPLOYEE BENEFIT PLANS, SUMMARY OF CHANGE IN FUNDED STATUS AND LIABILITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Change in Benefit Obligation | |||||||
Special termination benefits | $ 5,000 | ||||||
Amounts recognized on Consolidated Balance Sheets | |||||||
Postemployment employee benefit (liability), Noncurrent | (86,674) | $ (137,414) | $ (86,674) | ||||
Pension [Member] | |||||||
Change in Benefit Obligation | |||||||
Benefit obligation at beginning of year | [1] | 227,699 | 198,826 | ||||
Service cost | 7,485 | [1] | 6,143 | [1] | $ 6,871 | ||
Interest cost | 10,199 | [1] | 10,066 | [1] | 8,942 | ||
Plan participants' contributions | [1] | 47 | 47 | ||||
Special termination benefits | 0 | [1] | 2,814 | [1] | 0 | ||
Actuarial loss | [1] | 17,418 | 21,440 | ||||
Benefits paid, net of retiree subsidies received | [1] | (6,861) | (11,637) | ||||
Benefit obligation at end of year | [1] | 227,699 | 255,987 | 227,699 | 198,826 | ||
Change in plan assets | |||||||
Fair value of plan assets at beginning of year | [1] | 211,653 | 200,236 | ||||
Actual return on plan assets | [1] | (5,813) | 22,923 | ||||
Employer contributions | [1] | 97 | 85 | ||||
Benefits paid, net of plan participants' contributions | [1] | (6,814) | (11,591) | ||||
Fair value of plan assets at end of year | [1] | 211,653 | 199,123 | 211,653 | 200,236 | ||
Funded status | [1] | (16,046) | (56,864) | (16,046) | |||
Amounts recognized on Consolidated Balance Sheets | |||||||
Postemployment employee benefit (liability), Current | [1] | (100) | (71) | (100) | |||
Postemployment employee benefit (liability), Noncurrent | [1] | (15,946) | (56,793) | (15,946) | |||
Total | [1] | (16,046) | (56,864) | (16,046) | |||
OPEB [Member] | |||||||
Change in Benefit Obligation | |||||||
Benefit obligation at beginning of year | 127,773 | 112,771 | |||||
Service cost | 4,253 | 3,923 | 4,686 | ||||
Interest cost | 5,739 | 5,734 | 5,148 | ||||
Plan participants' contributions | 60 | 38 | |||||
Special termination benefits | 0 | 648 | 0 | ||||
Actuarial loss | 3,891 | 6,792 | |||||
Benefits paid, net of retiree subsidies received | (3,349) | (2,133) | |||||
Benefit obligation at end of year | 127,773 | 138,367 | 127,773 | 112,771 | |||
Change in plan assets | |||||||
Fair value of plan assets at beginning of year | 56,909 | 49,555 | |||||
Actual return on plan assets | (1,799) | 4,590 | |||||
Employer contributions | 5,672 | 4,970 | 6,000 | ||||
Benefits paid, net of plan participants' contributions | (3,513) | (2,206) | |||||
Fair value of plan assets at end of year | 56,909 | 57,269 | 56,909 | $ 49,555 | |||
Funded status | (70,864) | (81,098) | (70,864) | ||||
Amounts recognized on Consolidated Balance Sheets | |||||||
Postemployment employee benefit (liability), Current | (136) | (477) | (136) | ||||
Postemployment employee benefit (liability), Noncurrent | (70,728) | (80,621) | (70,728) | ||||
Total | $ (70,864) | $ (81,098) | $ (70,864) | ||||
[1] | Includes the Company's PEP. |
EMPLOYEE BENEFIT PLANS, REGULAT
EMPLOYEE BENEFIT PLANS, REGULATORY ASSETS AND AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Pension [Member] | |||
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) gain | $ (6,985) | $ (5,596) | $ (7,646) |
Prior service (cost) credit | (111) | (111) | (108) |
Net transition obligation | 0 | 0 | 0 |
OPEB [Member] | |||
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) gain | (2,943) | (2,500) | (3,857) |
Prior service (cost) credit | 364 | 357 | 355 |
Net transition obligation | 0 | (11) | (26) |
Regulatory Assets [Member] | Pension [Member] | |||
Regulatory Assets and Accumulated Other Comprehensive Income (Loss) | |||
Regulatory Assets, Balance at beginning of period | 61,794 | 56,664 | |
Amounts arising during the period, Net actuarial loss (gain) | 30,579 | 10,563 | |
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) gain | (5,305) | (5,326) | |
Prior service (cost) credit | (108) | (107) | |
Net transition obligation | 0 | 0 | |
Regulatory Assets, Balance at end of period | 86,960 | 61,794 | 56,664 |
Regulatory Assets [Member] | OPEB [Member] | |||
Regulatory Assets and Accumulated Other Comprehensive Income (Loss) | |||
Regulatory Assets, Balance at beginning of period | 43,774 | 41,812 | |
Amounts arising during the period, Net actuarial loss (gain) | 9,563 | 4,277 | |
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) gain | (2,911) | (2,607) | |
Prior service (cost) credit | 311 | 303 | |
Net transition obligation | 0 | (11) | |
Regulatory Assets, Balance at end of period | 50,737 | 43,774 | 41,812 |
Accumulated Other Comprehensive Income (Loss) [Member] | Pension [Member] | |||
Regulatory Assets and Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Balance at beginning of period | 17,581 | 14,427 | |
Amounts arising during the period, Net actuarial loss (gain) | 9,742 | 6,243 | |
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) gain | (1,680) | (3,085) | |
Prior service (cost) credit | (3) | (4) | |
Net transition obligation | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss), Balance at end of period | 25,640 | 17,581 | 14,427 |
Accumulated Other Comprehensive Income (Loss) [Member] | OPEB [Member] | |||
Regulatory Assets and Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Balance at beginning of period | 117 | (2,142) | |
Amounts arising during the period, Net actuarial loss (gain) | 1,103 | 2,098 | |
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) gain | (32) | 107 | |
Prior service (cost) credit | 54 | 54 | |
Net transition obligation | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss), Balance at end of period | $ 1,242 | $ 117 | $ (2,142) |
EMPLOYEE BENEFIT PLANS, AMOUNTS
EMPLOYEE BENEFIT PLANS, AMOUNTS NOT YET RECOGNIZED AS NET PERIODIC COST (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Regulatory Assets [Member] | Pension [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial loss | $ 86,070 | $ 60,797 |
Prior service cost (credit) | 890 | 997 |
Net transition obligation | 0 | 0 |
Regulatory Assets, Total | 86,960 | 61,794 |
Regulatory Assets [Member] | OPEB [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial loss | 52,462 | 45,809 |
Prior service cost (credit) | (1,725) | (2,035) |
Net transition obligation | 0 | 0 |
Regulatory Assets, Total | 50,737 | 43,774 |
Accumulated Other Comprehensive Income (Loss) [Member] | Pension [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial loss | 25,632 | 17,570 |
Prior service cost (credit) | 8 | 11 |
Net transition obligation | 0 | 0 |
Accumulated Other Comprehensive Income (Loss), Total | 25,640 | 17,581 |
Accumulated Other Comprehensive Income (Loss) [Member] | OPEB [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial loss | 1,495 | 425 |
Prior service cost (credit) | (253) | (308) |
Net transition obligation | 0 | 0 |
Accumulated Other Comprehensive Income (Loss), Total | $ 1,242 | $ 117 |
EMPLOYEE BENEFIT PLANS, AMOUN89
EMPLOYEE BENEFIT PLANS, AMOUNTS EXPECTED TO BE RECOGNIZED IN NET PERIODIC BENEFIT COST (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2015USD ($) | |
Pension [Member] | |
Regulatory Assets | |
Net actuarial loss | $ 5,606 |
Prior service cost (credit) | 108 |
Total | 5,714 |
Accumulated Other Comprehensive Income (Loss) | |
Net actuarial loss | 1,675 |
Prior service cost (credit) | 3 |
Total | 1,678 |
OPEB [Member] | |
Regulatory Assets | |
Net actuarial loss | 3,175 |
Prior service cost (credit) | (311) |
Total | 2,864 |
Accumulated Other Comprehensive Income (Loss) | |
Net actuarial loss | 99 |
Prior service cost (credit) | (54) |
Total | $ 45 |
EMPLOYEE BENEFIT PLANS, ACCUMUL
EMPLOYEE BENEFIT PLANS, ACCUMULATED BENEFIT OBLIGATION (Details) - Pension [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 255,987 | $ 227,699 |
Accumulated benefit obligation | 217,937 | 198,058 |
Fair value of plan assets | $ 199,123 | $ 211,653 |
EMPLOYEE BENEFIT PLANS, COMPONE
EMPLOYEE BENEFIT PLANS, COMPONENTS OF NET PERIODIC COST (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Special termination benefit | $ 5,000 | |||||
Pension [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Service cost | $ 7,485 | [1] | $ 6,143 | [1] | $ 6,871 | |
Interest cost | 10,199 | [1] | 10,066 | [1] | 8,942 | |
Expected return on plan assets | (17,090) | (15,475) | (14,825) | |||
Recognized actuarial loss | 6,985 | 5,596 | 7,646 | |||
Prior service cost (credit) amortization | 111 | 111 | 108 | |||
Recognized net initial obligation | 0 | 0 | 0 | |||
Net periodic benefit cost | 7,690 | 6,441 | 8,742 | |||
Special termination benefit | 0 | [1] | 2,814 | [1] | 0 | |
Net periodic benefit cost recognized as expense | 7,690 | 9,255 | 8,742 | |||
OPEB [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Service cost | 4,253 | 3,923 | 4,686 | |||
Interest cost | 5,739 | 5,734 | 5,148 | |||
Expected return on plan assets | (4,977) | (4,174) | (3,653) | |||
Recognized actuarial loss | 2,943 | 2,500 | 3,857 | |||
Prior service cost (credit) amortization | (364) | (357) | (355) | |||
Recognized net initial obligation | 0 | 11 | 26 | |||
Net periodic benefit cost | 7,594 | 7,637 | 9,709 | |||
Special termination benefit | 0 | 648 | 0 | |||
Net periodic benefit cost recognized as expense | $ 7,594 | $ 8,285 | $ 9,709 | |||
[1] | Includes the Company's PEP. |
EMPLOYEE BENEFIT PLANS, WEIGHTE
EMPLOYEE BENEFIT PLANS, WEIGHTED AVERAGE ASSUMPTIONS (Details) | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Pension [Member] | ||||
Benefit costs: | ||||
Discount rate | 4.55% | 5.15% | 4.30% | |
Expected asset return | 8.75% | 8.25% | 8.50% | |
Compensation increase | 3.25% | 3.25% | 3.25% | |
Obligations: | ||||
Discount rate | 4.50% | 4.55% | 5.15% | |
Compensation increase | 3.25% | |||
Pension [Member] | Represented [Member] | ||||
Obligations: | ||||
Compensation increase | [1] | 3.25% | 3.25% | |
Pension [Member] | Nonrepresented [Member] | ||||
Obligations: | ||||
Compensation increase | [1] | 3.50% | 3.50% | |
OPEB [Member] | ||||
Benefit costs: | ||||
Discount rate | 4.55% | 5.15% | 4.30% | |
Expected asset return | 8.75% | 8.25% | 8.50% | |
Compensation increase | 3.50% | 3.50% | 3.25% | |
Obligations: | ||||
Discount rate | 4.55% | 5.15% | ||
Compensation increase | 3.50% | 3.50% | 3.25% | |
OPEB [Member] | Represented [Member] | ||||
Obligations: | ||||
Discount rate | [1] | 4.60% | ||
OPEB [Member] | Nonrepresented [Member] | ||||
Obligations: | ||||
Discount rate | [1] | 4.55% | ||
[1] | Percentages for represented and nonrepresented plans, respectively. |
EMPLOYEE BENEFIT PLANS, ASSUMED
EMPLOYEE BENEFIT PLANS, ASSUMED HCCTR (Details) - OPEB [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
HCCTR | 6.70% | 7.10% | 7.30% |
Ultimate HCCTR | 4.80% | 4.80% | 4.80% |
Year ultimate HCCTR reached | 2,022 | 2,022 | 2,022 |
Effect of a 1 percentage point increase in the HCCTR on: | |||
Year-end benefit obligation | $ 26,025 | $ 20,965 | $ 18,008 |
Total service and interest cost | 2,026 | 1,885 | 2,156 |
Effect of a 1 percentage point decrease in the HCCTR on: | |||
Year-end benefit obligation | (20,427) | (16,932) | (14,629) |
Total service and interest costs | $ (1,593) | $ (1,493) | $ (1,675) |
EMPLOYEE BENEFIT PLANS, MIX AND
EMPLOYEE BENEFIT PLANS, MIX AND TARGETED ALLOCATION (Details) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Assets | 100.00% | 100.00% |
US Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 40.00% | |
Assets | 38.00% | 39.00% |
International Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 20.00% | |
Assets | 19.00% | 20.00% |
Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 40.00% | |
Assets | 43.00% | 41.00% |
EMPLOYEE BENEFIT PLANS, EXPECTE
EMPLOYEE BENEFIT PLANS, EXPECTED BENEFIT PAYMENTS (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Pension [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,016 | $ 7,958 |
2,017 | 8,383 |
2,018 | 9,106 |
2,019 | 9,807 |
2,020 | 10,542 |
2021 - 2025 | 67,414 |
OPEB [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,016 | 3,755 |
2,017 | 4,122 |
2,018 | 4,524 |
2,019 | 5,005 |
2,020 | 5,513 |
2021 - 2025 | $ 35,509 |
EMPLOYEE BENEFIT PLANS, ESTIMAT
EMPLOYEE BENEFIT PLANS, ESTIMATED SUBSIDY PAYMENTS (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Prescription Drug Subsidy Receipts, Fiscal Year Maturity [Abstract] | |
2,016 | $ 210 |
2,017 | 231 |
2,018 | 253 |
2,019 | 276 |
2,020 | 304 |
2021 - 2025 | $ 2,067 |
EMPLOYEE BENEFIT PLANS, FAIR VA
EMPLOYEE BENEFIT PLANS, FAIR VALUE (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Pension [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [1] | $ 199,123 | $ 211,653 | $ 200,236 |
OPEB [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 57,269 | 56,909 | $ 49,555 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 199,123 | 211,653 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | Money Market Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0 | 50 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | Large Cap Index Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 63,285 | 70,358 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | Extended Market Index [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 11,827 | 12,475 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | International Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 37,353 | 41,833 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | Emerging Markets Debt Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 8,857 | 10,029 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | Core Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | Opportunistic Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | Ultra Short Duration [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | High Yield Bond Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 20,532 | 21,054 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | Long Duration Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 57,269 | 55,854 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 57,269 | 56,909 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Money Market Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 2,237 | 1,154 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Large Cap Index Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 17,460 | 19,092 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Extended Market Index [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 3,762 | 3,733 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | International Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 10,261 | 10,309 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Emerging Markets Debt Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 2,617 | 2,798 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Core Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 7,148 | 6,522 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Opportunistic Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 4,179 | 3,960 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Ultra Short Duration [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 3,960 | 3,761 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | High Yield Bond Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 5,645 | 5,580 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Long Duration Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | $ 0 | $ 0 | ||
[1] | Includes the Company's PEP. |
EMPLOYEE BENEFIT PLANS, DEFINED
EMPLOYEE BENEFIT PLANS, DEFINED CONTRIBUTION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution, company match of employee contribution | 65.00% | ||
Defined contribution plan, maximum employer contribution by percentage of employee salary | 6.00% | ||
Defined contribution plan, cost recognized | $ 2,600 | $ 2,200 | $ 1,900 |
Deferred compensation arrangement with individual, employer contribution | $ 461 | $ 374 | $ 193 |
NJRHS [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution for employees not qualifying for the defined benefit plan | 3.00% | ||
NJRHS [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution for employees not qualifying for the defined benefit plan | 4.00% |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at period beginning | $ 30,495 | $ 28,711 |
Accretion | 2,262 | 2,012 |
Additions | 2,185 | 925 |
Revisions in estimated cash flows | (14,763) | 0 |
Retirements | (1,034) | (1,153) |
Balance at period end | 19,145 | $ 30,495 |
Estimated Accretion | ||
2,016 | 1,211 | |
2,017 | 1,273 | |
2,018 | 1,340 | |
2,019 | 1,403 | |
2,020 | 1,469 | |
Total | $ 6,696 |
INCOME TAXES, INCOME TAX RECONC
INCOME TAXES, INCOME TAX RECONCILIATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory income tax expense | $ 84,239 | $ 67,834 | $ 52,661 |
Change resulting from | |||
State income taxes | 8,233 | 7,785 | 5,168 |
Depreciation and cost of removal | (5,149) | (4,437) | (5,769) |
Investment/production tax credits | (30,096) | (23,083) | (18,749) |
Basis adjustment of solar assets due to ITC | 4,861 | 3,959 | 3,225 |
Other | (2,364) | (218) | (961) |
Income tax provision | $ 59,724 | $ 51,840 | $ 35,575 |
Effective income tax rate | 24.80% | 26.80% | 23.60% |
INCOME TAXES, COMPONENTS OF INC
INCOME TAXES, COMPONENTS OF INCOME TAX PROVISION (BENEFIT) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Current | |||
Federal | $ 20,492 | $ 37,904 | $ 12,248 |
State | 5,473 | 11,096 | 1,763 |
Deferred | |||
Federal | 56,480 | 24,963 | 34,127 |
State | 7,375 | 960 | 6,186 |
Investment/production tax credits | (30,096) | (23,083) | (18,749) |
Income tax provision | $ 59,724 | $ 51,840 | $ 35,575 |
INCOME TAXES, DEFERRED TAX ASSE
INCOME TAXES, DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | |
Deferred tax assets | |||
Investment tax credits | [1] | $ 24,770 | $ 10,341 |
Deferred service contract revenue | 3,440 | 3,299 | |
Incentive compensation | 10,369 | 14,632 | |
Fair value of derivatives | 0 | 14,350 | |
State net operating losses | 12,757 | 8,962 | |
Conservation incentive plan | 2,091 | 2,312 | |
Underrecovered gas costs | 2,827 | 0 | |
Other | 12,762 | 10,078 | |
Total deferred tax assets | 69,016 | 63,974 | |
Deferred tax liabilities | |||
Property related items | (440,420) | (371,017) | |
Remediation costs | (7,641) | (12,429) | |
Equity investments | (37,930) | (35,474) | |
Post employment benefits | (2,976) | (10,268) | |
Fair value of derivatives | (3,180) | 0 | |
Under-recovered gas costs | 0 | (5,056) | |
Other | (13,409) | (11,751) | |
Total deferred tax liabilities | (505,556) | (445,995) | |
Total net deferred tax liabilities | (436,540) | (382,021) | |
NJNG [Member] | |||
Deferred tax assets | |||
Investment tax credits | 2,700 | 2,800 | |
NJRCEV [Member] | |||
Deferred tax liabilities | |||
Tax credit carryforward | $ 22,100 | $ 7,500 | |
[1] | Includes $2.7 million and $2.8 million for NJNG for fiscal 2015 and fiscal 2014, respectively, which is being amortized over the life of the related assets and $22.1 million and $7.5 million for NJRCEV for fiscal 2015 and fiscal 2014, respectively, which is ITC carryforward. |
INCOME TAXES, UNRECOGNIZED TAX
INCOME TAXES, UNRECOGNIZED TAX BENEFIT (Details) $ in Millions | May. 31, 2013USD ($) |
State and Local Jurisdiction [Member] | |
Income Tax Contingency [Line Items] | |
Income tax refund | $ 1.1 |
INCOME TAXES, INCOME TAX CARRYF
INCOME TAXES, INCOME TAX CARRYFORWARDS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Loss Carryforwards [Line Items] | ||
Tax benefit associated with the loss carryforwards | $ 12,757 | $ 8,962 |
Tax credit carryforward, expiration period | 20 years | |
NJRCEV [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | $ 22,100 | 7,500 |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating losses | $ 218,100 | |
Net operating losses, life | 20 years | |
Valuation allowance | $ 176 | $ 212 |
Deferred tax asset, loss carryforwards | 34,857 | |
State and Local Jurisdiction [Member] | Fiscal years 2016 - 2019 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax asset, loss carryforwards | 0 | |
State and Local Jurisdiction [Member] | Fiscal years 2020 - 2024 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax asset, loss carryforwards | 0 | |
State and Local Jurisdiction [Member] | Fiscal years 2025 - 2029 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax asset, loss carryforwards | 43 | |
State and Local Jurisdiction [Member] | Fiscal years 2030 - 2035 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax asset, loss carryforwards | $ 34,814 |
COMMITMENTS AND CONTINGENT L105
COMMITMENTS AND CONTINGENT LIABILITIES, SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015USD ($) | ||
Long-term Purchase Commitment [Line Items] | ||
Current charges recoverable through BGSS | $ 86,900 | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
2,016 | 492,559 | [1] |
2,017 | 230,065 | [1] |
2,018 | 142,009 | [1] |
2,019 | 113,263 | [1] |
2,020 | 102,704 | [1] |
Thereafter | $ 790,199 | [1] |
Minimum [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Storage and pipeline capacity, fixed period | 1 year | |
Maximum [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Storage and pipeline capacity, fixed period | 10 years | |
NJRES [Member] | Natural Gas Purchases [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 230,355 | |
2,017 | 4,438 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 0 | |
NJRES [Member] | Storage Demand Fees [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
2,016 | 27,734 | |
2,017 | 12,162 | |
2,018 | 7,591 | |
2,019 | 4,473 | |
2,020 | 3,672 | |
Thereafter | 3,270 | |
NJRES [Member] | Pipeline Demand Fees [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
2,016 | 82,777 | |
2,017 | 35,118 | |
2,018 | 15,440 | |
2,019 | 7,513 | |
2,020 | 4,256 | |
Thereafter | 3,900 | |
NJRES [Member] | Subtotal [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
2,016 | 340,866 | |
2,017 | 51,718 | |
2,018 | 23,031 | |
2,019 | 11,986 | |
2,020 | 7,928 | |
Thereafter | 7,170 | |
NJNG [Member] | Natural Gas Purchases [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
2,016 | 64,834 | |
2,017 | 71,248 | |
2,018 | 11,516 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 0 | |
NJNG [Member] | Storage Demand Fees [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
2,016 | 29,019 | |
2,017 | 25,332 | |
2,018 | 15,871 | |
2,019 | 11,079 | |
2,020 | 5,345 | |
Thereafter | 0 | |
NJNG [Member] | Pipeline Demand Fees [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
2,016 | 57,840 | |
2,017 | 81,767 | |
2,018 | 91,591 | |
2,019 | 90,198 | |
2,020 | 89,431 | |
Thereafter | 783,029 | |
NJNG [Member] | Subtotal [Member] | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
2,016 | 151,693 | |
2,017 | 178,347 | |
2,018 | 118,978 | |
2,019 | 101,277 | |
2,020 | 94,776 | |
Thereafter | $ 783,029 | |
[1] | Does not include amounts related to intercompany asset management agreements between NJRES and NJNG. |
COMMITMENTS AND CONTINGENT L106
COMMITMENTS AND CONTINGENT LIABILITIES, CAPITAL EXPENDITURES (Details) $ in Millions | Sep. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating leases, future minimum payments due, next five years | $ 2.4 |
Operating leases, future minimum payments, due thereafter | $ 36.6 |
COMMITMENTS AND CONTINGENT L107
COMMITMENTS AND CONTINGENT LIABILITIES, GUARANTEES (Details) $ in Millions | Sep. 30, 2015USD ($) |
Guarantee Obligations [Member] | |
Guarantor Obligations [Line Items] | |
Loss contingency, estimate of possible loss | $ 286.3 |
COMMITMENTS AND CONTINGENT L108
COMMITMENTS AND CONTINGENT LIABILITIES, LEGAL PROCEEDINGS (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Jul. 31, 2013 | Feb. 28, 2012 | Sep. 30, 2015 | |
Site Contingency [Line Items] | ||||
Recovery period | 7 years | |||
Site contingency, recovery from third party of environmental remediation cost | $ 20,000 | |||
Regulatory assets | $ 377,575 | $ 410,155 | ||
Minimum [Member] | ||||
Site Contingency [Line Items] | ||||
Litigation settlement, gross | 150,900 | |||
Maximum [Member] | ||||
Site Contingency [Line Items] | ||||
Litigation settlement, gross | 242,100 | |||
Enviromental remediation costs expended, net of recoveries [Member] | ||||
Site Contingency [Line Items] | ||||
Regulatory assets | 30,916 | 18,886 | ||
Environmental Restoration Costs, Liability for Future Expenditures [Member] | ||||
Site Contingency [Line Items] | ||||
Regulatory assets | 177,000 | $ 180,400 | ||
July 2013 SBC Filing [Member] | SBC [Member] | ||||
Site Contingency [Line Items] | ||||
Approved rate, amount | $ 18,700 | |||
September 2014 SBC Filing [Member] | SBC [Member] | ||||
Site Contingency [Line Items] | ||||
Requested rate, amount | $ 8,500 |
BUSINESS SEGMENT AND OTHER O109
BUSINESS SEGMENT AND OTHER OPERATIONS DATA, RECONCILIATION OF SEGMENT INCOME TO CONSOLIDATED (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Utility | $ 781,970 | $ 819,415 | $ 787,987 | |||||||||
Nonutility | 1,952,017 | 2,918,730 | 2,410,081 | |||||||||
Total operating revenues | $ 438,306 | $ 458,467 | $ 1,013,090 | $ 824,124 | $ 591,914 | $ 688,257 | $ 1,579,569 | $ 878,405 | 2,733,987 | 3,738,145 | 3,198,068 | |
Depreciation and amortization | 61,399 | 52,742 | 47,310 | |||||||||
Interest income | [1] | 580 | 1,222 | 837 | ||||||||
Interest expense, net of capitalized interest | 27,721 | 25,463 | 23,979 | |||||||||
Income tax provision (benefit) | 59,724 | 51,840 | 35,575 | |||||||||
Equity in earnings of affiliates | 13,409 | 10,532 | 10,349 | |||||||||
Net financial earnings | 151,503 | 176,857 | 113,681 | |||||||||
Capital expenditures | 320,086 | 289,288 | 197,250 | |||||||||
Investments in equity investees | $ 5,780 | $ 555 | $ 0 | |||||||||
Canada | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Percentage to total operating revenues | 3.70% | 3.30% | 5.90% | |||||||||
Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total operating revenues | $ 2,748,790 | $ 3,764,807 | $ 3,156,553 | |||||||||
Depreciation and amortization | 60,478 | 51,900 | 46,526 | |||||||||
Interest income | [1] | 1,777 | 2,171 | 1,719 | ||||||||
Interest expense, net of capitalized interest | 28,095 | 25,104 | 22,878 | |||||||||
Income tax provision (benefit) | 58,468 | 49,122 | 33,197 | |||||||||
Net financial earnings | 148,290 | 174,091 | 110,416 | |||||||||
Capital expenditures | 319,877 | 288,109 | 196,208 | |||||||||
Operating Segments [Member] | Natural Gas Distribution [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | 43,085 | 40,540 | 37,999 | |||||||||
Interest income | [1] | 336 | 999 | 653 | ||||||||
Interest expense, net of capitalized interest | 18,534 | 16,683 | 14,995 | |||||||||
Income tax provision (benefit) | 39,544 | 39,374 | 35,399 | |||||||||
Net financial earnings | 76,287 | 74,204 | 73,846 | |||||||||
Capital expenditures | 168,875 | 152,566 | 137,083 | |||||||||
Operating Segments [Member] | Natural Gas Distribution [Member] | External Customers [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Utility | 781,970 | 819,415 | 787,987 | |||||||||
Operating Segments [Member] | Energy Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | 90 | 59 | 44 | |||||||||
Interest income | [1] | 438 | 222 | 1 | ||||||||
Interest expense, net of capitalized interest | 1,209 | 1,725 | 2,534 | |||||||||
Income tax provision (benefit) | 39,043 | 26,458 | 10,516 | |||||||||
Net financial earnings | 42,122 | 79,735 | 19,311 | |||||||||
Operating Segments [Member] | Energy Services [Member] | External Customers [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Nonutility | [2] | 1,872,781 | 2,858,703 | 2,351,084 | ||||||||
Operating Segments [Member] | Energy Services [Member] | Intercompany [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Nonutility | 61,526 | 72,114 | 5,494 | |||||||||
Operating Segments [Member] | Clean Energy Ventures [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | 17,297 | 11,295 | 8,477 | |||||||||
Interest income | [1] | 26 | 0 | 0 | ||||||||
Interest expense, net of capitalized interest | 7,635 | 5,300 | 3,387 | |||||||||
Income tax provision (benefit) | (26,968) | (21,937) | (17,711) | |||||||||
Net financial earnings | 20,101 | 12,654 | 10,060 | |||||||||
Capital expenditures | 151,002 | 135,543 | 59,125 | |||||||||
Operating Segments [Member] | Clean Energy Ventures [Member] | External Customers [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Nonutility | 32,513 | 14,575 | 11,988 | |||||||||
Operating Segments [Member] | Midstream [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | 6 | 6 | 6 | |||||||||
Interest income | [1] | 977 | 950 | 1,065 | ||||||||
Interest expense, net of capitalized interest | 717 | 1,396 | 1,962 | |||||||||
Income tax provision (benefit) | 6,849 | 5,227 | 4,993 | |||||||||
Equity in earnings of affiliates | 17,487 | 14,078 | 13,868 | |||||||||
Net financial earnings | 9,780 | 7,498 | 7,199 | |||||||||
Investments in equity investees | 5,780 | 555 | 0 | |||||||||
Operating Segments [Member] | Home Services and Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | 952 | 846 | 786 | |||||||||
Interest income | [1] | 217 | 1 | 2 | ||||||||
Interest expense, net of capitalized interest | 49 | 359 | 1,101 | |||||||||
Income tax provision (benefit) | 1,551 | 2,460 | 2,550 | |||||||||
Net financial earnings | 3,420 | 2,798 | 3,292 | |||||||||
Capital expenditures | 209 | 1,179 | 1,042 | |||||||||
Operating Segments [Member] | Home Services and Other [Member] | External Customers [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Nonutility | 46,723 | 45,452 | 47,009 | |||||||||
Operating Segments [Member] | Home Services and Other [Member] | Intercompany [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Nonutility | 1,980 | 1,235 | 945 | |||||||||
Eliminations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Nonutility | (63,506) | (73,349) | (6,439) | |||||||||
Depreciation and amortization | (31) | (4) | (2) | |||||||||
Interest income | [1] | (1,414) | (950) | (884) | ||||||||
Interest expense, net of capitalized interest | (423) | 0 | 0 | |||||||||
Income tax provision (benefit) | (295) | 258 | (172) | |||||||||
Equity in earnings of affiliates | (4,078) | (3,546) | (3,519) | |||||||||
Net financial earnings | $ (207) | $ (32) | $ (27) | |||||||||
[1] | Included in other income, net on the Consolidated Statement of Operations. | |||||||||||
[2] | Includes sales to Canada, which accounted for 3.7, 3.3 and 5.9 percent of total operating revenues during fiscal 2015, 2014 and 2013, respectively. |
BUSINESS SEGMENT AND OTHER O110
BUSINESS SEGMENT AND OTHER OPERATIONS DATA, NET FINANCIAL EARNINGS LOSS RECONCILIATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Segment Reporting [Abstract] | |||||||||||
Consolidated NFE | $ 151,503 | $ 176,857 | $ 113,681 | ||||||||
Less: | |||||||||||
Unrealized (gain) loss on derivative instruments and related transactions | (38,681) | 28,534 | (9,418) | ||||||||
Effects of economic hedging related to natural gas inventory | (8,225) | 26,639 | 7,635 | ||||||||
Tax adjustments | 17,449 | (20,286) | 655 | ||||||||
NET INCOME | $ 4,197 | $ (7,460) | $ 60,903 | $ 123,320 | $ (24,420) | $ (14,274) | $ 172,971 | $ 7,693 | $ 180,960 | $ 141,970 | $ 114,809 |
BUSINESS SEGMENT AND OTHER O111
BUSINESS SEGMENT AND OTHER OPERATIONS DATA, RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | $ 3,339,038 | $ 3,158,804 | $ 3,004,783 | |
Natural Gas Distribution [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 2,331,060 | 2,143,684 | 2,094,940 | |
Energy Services [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 269,718 | 457,080 | 468,096 | |
Clean Energy Ventures [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 526,475 | 380,707 | 253,663 | |
Midstream [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 182,184 | 153,891 | 153,536 | |
Subtotal [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 3,309,437 | 3,135,362 | 2,970,235 | |
Home Services and Other [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 94,206 | 82,413 | 85,293 | |
Intercompany Assets [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | [1] | $ (64,605) | $ (58,971) | $ (50,745) |
[1] | Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014USD ($)Bcf / d | Sep. 30, 2015USD ($)contractBcf | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Related Party Transaction [Line Items] | ||||
Approximate annual demand fees under agreement from April 1 2010 to March 31 2020 | $ 9,300 | |||
Number of asset management agreements | contract | 3 | |||
NJRES to Steckman Ridge and Iroquios Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Demand fees recognized pertaining to related party agreement | $ 6,600 | $ 6,200 | $ 6,100 | |
NJRES to Steckman Ridge Affiliate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | $ 187 | 375 | 187 | |
NJRES to Iroquois Affiliate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | 389 | $ 403 | 389 | |
NJNG to NJRES Affilate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Asset management agreement, period | 10 years | |||
Natural gas sold at cost under asset management agreement (in Bcf) | Bcf | 3 | |||
NJNG to Steckman RIdge and Iroquios Afffiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Demand fees recognized pertaining to related party agreement | $ 6,300 | 6,400 | $ 5,900 | |
NJNG to Steckman RIdge Affiliate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | 775 | 775 | 775 | |
NJNG to Iroquois Affiliate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | $ 48 | $ 48 | $ 48 | |
NJNG to PennEast Affiliate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Transportation precedent agreement, period | 15 years | |||
Transportation capacity under precedent agreement from NJNG with PennEast (MMcf) | Bcf / d | 0.18 |
SELECTED QUARTERLY FINANCIAL113
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Operating revenues | $ 438,306 | $ 458,467 | $ 1,013,090 | $ 824,124 | $ 591,914 | $ 688,257 | $ 1,579,569 | $ 878,405 | $ 2,733,987 | $ 3,738,145 | $ 3,198,068 | ||||
Gross margin | [1] | 82,177 | 51,217 | 145,189 | 225,787 | 47,375 | 28,474 | 315,849 | 64,432 | ||||||
Operating income (loss) | 6,257 | (9,309) | 82,806 | 168,697 | (28,838) | (29,208) | 247,012 | 12,224 | 248,451 | 201,190 | 159,231 | ||||
Net income (loss) | $ 4,197 | $ (7,460) | $ 60,903 | $ 123,320 | $ (24,420) | $ (14,274) | $ 172,971 | $ 7,693 | $ 180,960 | $ 141,970 | $ 114,809 | ||||
Earnings (loss) per share | |||||||||||||||
Basic (in usd per share) | $ 0.05 | $ (0.09) | $ 0.71 | $ 1.46 | $ (0.29) | $ (0.17) | $ 2.06 | $ 0.09 | $ 2.12 | $ 1.69 | $ 1.38 | ||||
Diluted (in usd per share) | $ 0.05 | $ (0.09) | $ 0.71 | $ 1.44 | $ (0.29) | $ (0.17) | $ 2.04 | $ 0.09 | $ 2.10 | [2] | $ 1.67 | [2] | $ 1.37 | [2] | |
[1] | Gross margin consists of operating revenue less cost of goods sold and other direct expenses at NJR's unregulated subsidiaries and utility gross margin at NJNG, which includes natural gas revenues less natural gas purchases, sales tax, a TEFA (which was phased out in January 2014) and regulatory rider expenses. | ||||||||||||||
[2] | There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2015, 2014 and 2013. |
VALUATION AND QUALIFYING ACC114
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Allowance for Doubtful Accounts [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
BEGINNING BALANCE | $ 5,357 | $ 5,330 | $ 4,797 | |
ADDITIONS CHARGED TO EXPENSE | 2,859 | 2,504 | 2,627 | |
OTHER | [1] | (3,027) | (2,477) | (2,094) |
ENDING BALANCE | $ 5,189 | 5,357 | 5,330 | |
Regulatory Asset [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
BEGINNING BALANCE | $ 0 | 71 | ||
ADDITIONS CHARGED TO EXPENSE | (71) | |||
OTHER | [1] | 0 | ||
ENDING BALANCE | $ 0 | |||
[1] | Uncollectible accounts written off, less recoveries and adjustments. |