Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-08359 | |
Entity Registrant Name | NEW JERSEY RESOURCES CORPORATION | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-2376465 | |
Entity Address, Address Line One | 1415 Wyckoff Road | |
Entity Address, City or Town | Wall | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07719 | |
City Area Code | (732) | |
Local Phone Number | 938‑1480 | |
Title of 12(b) Security | Common Stock - $2.50 Par Value | |
Trading Symbol | NJR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Business | false | |
Entity Common Stock, Shares Outstanding | 89,980,410 | |
Entity Central Index Key | 0000356309 | |
Current Fiscal Year End Date | --09-30 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
OPERATING REVENUES | |||||
Utility | $ 120,782 | $ 104,538 | $ 622,167 | $ 631,389 | |
Nonutility | 314,160 | 438,897 | 1,490,797 | 1,636,394 | |
Total operating revenues | 434,942 | 543,435 | 2,112,964 | 2,267,783 | |
Gas purchases: | |||||
Gas purchases - Utility | 54,861 | 53,080 | 280,627 | 227,268 | |
Gas purchases - Nonutility | 289,757 | 422,734 | 1,370,408 | 1,489,041 | |
Gas purchases - Related parties | 2,126 | 2,156 | 6,455 | 6,392 | |
Operation and maintenance | 62,559 | 68,496 | 185,620 | 179,453 | |
Regulatory rider expenses | 4,136 | 5,542 | 32,159 | 36,915 | |
Depreciation and amortization | 23,149 | 20,320 | 67,292 | 64,634 | |
Energy and other taxes | 2,373 | 7,822 | 8,678 | 45,855 | |
Total operating expenses | 438,961 | 580,150 | 1,951,239 | 2,049,558 | |
OPERATING (LOSS) INCOME | (4,019) | (36,715) | 161,725 | 218,225 | |
Other income, net | 1,829 | 1,731 | 5,456 | 8,735 | |
Interest expense, net of capitalized interest | 11,648 | 11,037 | 37,643 | 34,740 | |
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES | (13,838) | (46,021) | 129,538 | 192,220 | |
Income tax benefit | (1,941) | (28,534) | (11,854) | (47,801) | |
Equity in earnings of affiliates | 3,495 | 3,213 | 10,027 | 9,670 | |
NET (LOSS) INCOME | [1] | $ (8,402) | $ (14,274) | $ 151,419 | $ 249,691 |
(LOSS) EARNINGS PER COMMON SHARE | |||||
Basic (usd per share) | $ (0.09) | $ (0.16) | $ 1.70 | $ 2.85 | |
Diluted (usd per share) | [2] | $ (0.09) | $ (0.16) | $ 1.69 | $ 2.84 |
WEIGHTED AVERAGE SHARES OUTSTANDING | |||||
Basic (in shares) | 89,600 | 87,888 | 88,995 | 87,493 | |
Diluted (in shares) | 89,600 | 87,888 | 89,402 | 87,884 | |
[1] | Includes income tax benefit related to the Tax Act of $844,000 and $57.7 million , for the three and nine months ended June 30, 2018 , respectively. | ||||
[2] | Since there was a net loss for the three months ended June 30, 2019 and 2018 , incremental shares of 409,000 and 402,000 , respectively, were not included in the computation of diluted loss per common share, as their effect would have been anti-dilutive. There were no anti-dilutive shares excluded from the calculation of diluted earnings per share during the nine months ended June 30, 2019 and 2018 . |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net (loss) income | [1] | $ (8,402) | $ (14,274) | $ 151,419 | $ 249,691 |
Other comprehensive income (loss), net of tax | |||||
Unrealized loss on investments in equity securities, net of tax of $0, $854, $0 and $9,071, respectively | 0 | (2,364) | 0 | (25,055) | |
Reclassifications of losses to net income on investments in equity securities, net of tax of $0, $0, $0 and $(858), respectively | 0 | 0 | 0 | 11,647 | |
Adjustment to postemployment benefit obligation, net of tax of $(118), $(104), $(333) and $(344), respectively | 305 | 272 | 844 | 784 | |
Other comprehensive income (loss) | 305 | (2,092) | 844 | (12,624) | |
Comprehensive (loss) income | $ (8,097) | $ (16,366) | $ 152,263 | $ 237,067 | |
[1] | Includes income tax benefit related to the Tax Act of $844,000 and $57.7 million , for the three and nine months ended June 30, 2018 , respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax on unrealized (loss) gain on available for sale securities | $ 0 | $ 854 | $ 0 | $ 9,071 |
Tax on reclassifications of equity securities | 0 | 0 | 0 | (858) |
Tax on adjustment for postemployment benefit obligation | $ (118) | $ (104) | $ (333) | $ (344) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | [1] | $ 151,419 | $ 249,691 |
Adjustments to reconcile net income to cash flows from operating activities | |||
Unrealized (gain) loss on derivative instruments | (25,353) | 25,904 | |
Realized and unrealized gains on investments in equity securities | (1,567) | (5,332) | |
Gain on sale of businesses | (645) | (4,687) | |
Depreciation and amortization | 67,292 | 64,634 | |
Amortization of acquired wholesale energy contracts | 7,813 | 17,813 | |
Allowance for equity used during construction | (6,135) | (3,730) | |
Allowance for doubtful accounts | 1,686 | 1,672 | |
Deferred income taxes | (29,092) | 17,351 | |
Deferred income tax benefit due to the Tax Act | 0 | (73,784) | |
Manufactured gas plant remediation costs | (9,582) | (13,624) | |
Equity in earnings, net of distributions received from equity investees | (2,700) | (935) | |
Cost of removal - asset retirement obligations | (194) | (93) | |
Contributions to postemployment benefit plans | (5,994) | (4,708) | |
Tax benefit from stock-based compensation | 1,289 | 2,841 | |
Changes in: | |||
Components of working capital | (14,829) | 64,527 | |
Other noncurrent assets | 16,906 | 41,793 | |
Other noncurrent liabilities | 15,476 | 13,224 | |
Cash flows from operating activities | 165,790 | 392,557 | |
Expenditures for: | |||
Utility plant | (207,357) | (130,727) | |
Solar equipment | (91,333) | (88,416) | |
Midstream and other | (13,116) | (4,879) | |
Cost of removal | (32,212) | (42,683) | |
Distribution from equity investees in excess of equity in earnings | 1,473 | 2,515 | |
Investments in equity investees | (2,696) | (14,496) | |
Cash paid related to acquisition | 0 | (10,000) | |
Proceeds from sale of businesses, net of closing costs | 205,745 | 27,916 | |
Proceeds from sale of investments in equity securities, net | 34,484 | 6,616 | |
Cash flows used in investing activities | (105,012) | (254,154) | |
CASH FLOWS USED IN FINANCING ACTIVITIES | |||
Proceeds from long-term debt | 35,800 | 225,000 | |
Payments of long-term debt | (15,001) | (133,717) | |
Payments of short-term debt, net | (52,650) | (208,900) | |
Proceeds from sale-leaseback transaction | 9,895 | 7,820 | |
Payments of common stock dividends | (77,730) | (71,334) | |
Proceeds from waiver discount issuance of common stock | 57,391 | 41,677 | |
Proceeds from issuance of common stock | 13,199 | 13,572 | |
Tax withholding payments related to net settled stock compensation | (6,704) | (13,625) | |
Cash flows used in financing activities | (35,800) | (139,507) | |
Change in cash, cash equivalents and restricted cash | 24,978 | (1,104) | |
Cash, cash equivalents and restricted cash at beginning of period | 1,710 | 2,469 | |
Cash, cash equivalents and restricted cash at end of period | 26,688 | 1,365 | |
CHANGES IN COMPONENTS OF WORKING CAPITAL | |||
Receivables | 28,385 | (5,757) | |
Inventories | 51,833 | 63,838 | |
Recovery of gas costs | (14,870) | 28,524 | |
Gas purchases payable | (66,060) | 28,041 | |
Prepaid and accrued taxes | 10,110 | (22,993) | |
Accounts payable and other | (31,883) | 5,213 | |
Restricted broker margin accounts | 13,092 | (29,497) | |
Customers' credit balances and deposits | (7,832) | (745) | |
Other current assets | 2,396 | (2,097) | |
Components of working capital | (14,829) | 64,527 | |
Cash paid for: | |||
Interest (net of amounts capitalized) | 42,107 | 35,295 | |
Income taxes | 8,550 | 4,195 | |
Accrued capital expenditures | 32,143 | 30,019 | |
Inception gain on natural gas swap contract recognized as non-cash proceeds from sale of business | $ 0 | $ 14,579 | |
[1] | Includes income tax benefit related to the Tax Act of $844,000 and $57.7 million , for the three and nine months ended June 30, 2018 , respectively. |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
PROPERTY, PLANT AND EQUIPMENT | ||
Utility plant, at cost | $ 2,549,347 | $ 2,368,914 |
Construction work in progress | 219,570 | 192,481 |
Nonutility plant and equipment, at cost | 784,763 | 697,406 |
Construction work in progress | 64,000 | 45,690 |
Total property, plant and equipment | 3,617,680 | 3,304,491 |
Accumulated depreciation and amortization, utility plant | (568,996) | (530,753) |
Accumulated depreciation and amortization, nonutility plant and equipment | (147,248) | (122,689) |
Property, plant and equipment, net | 2,901,436 | 2,651,049 |
CURRENT ASSETS | ||
Cash and cash equivalents | 26,297 | 1,458 |
Customer accounts receivable | ||
Billed | 174,670 | 205,490 |
Unbilled revenues | 7,413 | 7,199 |
Allowance for doubtful accounts | (6,347) | (5,704) |
Regulatory assets | 32,920 | 18,297 |
Gas in storage, at average cost | 132,635 | 184,633 |
Materials and supplies, at average cost | 14,075 | 13,910 |
Prepaid and accrued taxes | 24,533 | 23,047 |
Derivatives, at fair value | 28,337 | 27,396 |
Restricted broker margin accounts | 44,827 | 53,719 |
Assets held for sale | 0 | 206,905 |
Other | 30,611 | 33,730 |
Total current assets | 509,971 | 770,080 |
NONCURRENT ASSETS | ||
Investments in equity method investees | 197,660 | 190,866 |
Regulatory assets | 388,769 | 368,592 |
Derivatives, at fair value | 14,476 | 10,560 |
Investments in equity securities | 0 | 32,917 |
Intangible assets, net | 15,261 | 23,375 |
Other noncurrent assets | 95,839 | 96,225 |
Total noncurrent assets | 712,005 | 722,535 |
Total assets | 4,123,412 | 4,143,664 |
CAPITALIZATION | ||
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding June 30, 2019 — 89,917,854; September 30, 2018 — 88,292,956 | 226,627 | 226,196 |
Premium on common stock | 290,414 | 274,748 |
Accumulated other comprehensive loss, net of tax | (15,212) | (12,610) |
Treasury stock at cost and other; shares June 30, 2019 — 732,777; September 30, 2018 — 2,185,013 | (15,628) | (76,473) |
Retained earnings | 1,085,996 | 1,007,117 |
Common stock equity | 1,572,197 | 1,418,978 |
Long-term debt | 1,211,811 | 1,180,619 |
Total capitalization | 2,784,008 | 2,599,597 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 124,592 | 123,545 |
Short-term debt | 99,300 | 151,950 |
Gas purchases payable | 145,243 | 211,303 |
Gas purchases payable to related parties | 1,150 | 1,150 |
Accounts payable and other | 96,873 | 135,240 |
Dividends payable | 26,301 | 25,824 |
Accrued taxes | 13,164 | 1,568 |
Regulatory liabilities | 0 | 8,185 |
New Jersey Clean Energy Program | 15,252 | 14,052 |
Derivatives, at fair value | 40,677 | 46,652 |
Liabilities held for sale | 0 | 4,182 |
Customers' credit balances and deposits | 19,493 | 27,325 |
Total current liabilities | 582,045 | 750,976 |
NONCURRENT LIABILITIES | ||
Deferred income taxes | 219,319 | 242,436 |
Deferred investment tax credits | 3,734 | 3,976 |
Deferred gain | 1,751 | 9,104 |
Derivatives, at fair value | 24,923 | 22,982 |
Manufactured gas plant remediation | 125,566 | 130,800 |
Postemployment employee benefit liability | 141,187 | 137,007 |
Regulatory liabilities | 203,660 | 209,139 |
Asset retirement obligation | 30,149 | 28,688 |
Other | 7,070 | 8,959 |
Total noncurrent liabilities | 757,359 | 793,091 |
Commitments and contingent liabilities (Note 12) | ||
Total capitalization and liabilities | $ 4,123,412 | $ 4,143,664 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 2.5 | $ 2.5 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares outstanding (in shares) | 89,917,854 | 88,292,956 |
Treasury stock at cost and other, shares (in shares) | 732,777 | 2,185,013 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Premium on Common Stock | Accumulated Other Comprehensive (Loss) Income | Treasury Stock And Other | Retained Earnings | ||
Balance as of beginning of period (shares) at Sep. 30, 2017 | 86,556,000 | |||||||
Balance as of beginning of period at Sep. 30, 2017 | $ 1,236,643 | $ 222,258 | $ 219,696 | $ (3,256) | $ (70,039) | $ 867,984 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 123,699 | 123,699 | ||||||
Other comprehensive income | (5,204) | (5,204) | ||||||
Common stock issued: | ||||||||
Incentive compensation plan (in shares) | 525,000 | |||||||
Incentive compensation plan | 15,404 | $ 1,453 | 13,951 | |||||
Dividend reinvestment plan (in shares) | [1] | 90,000 | ||||||
Dividend reinvestment plan | [1] | 3,799 | 245 | 3,554 | ||||
Waiver discount (in shares) | 554,000 | |||||||
Waiver discount | 22,690 | $ 1,384 | 21,306 | |||||
Cash dividend declared | (23,831) | (23,831) | ||||||
Treasury stock and other (shares) | (250,000) | |||||||
Treasury stock and other | 25,430 | 56 | 25,374 | |||||
Balance as of end of period (shares) at Dec. 31, 2017 | 87,475,000 | |||||||
Balance as of end of period at Dec. 31, 2017 | 1,347,770 | $ 225,095 | 255,142 | (8,460) | (91,859) | 967,852 | ||
Balance as of beginning of period (shares) at Sep. 30, 2017 | 86,556,000 | |||||||
Balance as of beginning of period at Sep. 30, 2017 | 1,236,643 | $ 222,258 | 219,696 | (3,256) | (70,039) | 867,984 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | [2] | 249,691 | ||||||
Other comprehensive income | (12,624) | |||||||
Balance as of end of period (shares) at Jun. 30, 2018 | 88,212,000 | |||||||
Balance as of end of period at Jun. 30, 2018 | 1,449,962 | $ 226,189 | 274,138 | (15,880) | (80,405) | 1,045,920 | ||
Balance as of beginning of period (shares) at Dec. 31, 2017 | 87,475,000 | |||||||
Balance as of beginning of period at Dec. 31, 2017 | 1,347,770 | $ 225,095 | 255,142 | (8,460) | (91,859) | 967,852 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 140,266 | 140,266 | ||||||
Other comprehensive income | (5,328) | (5,328) | ||||||
Common stock issued: | ||||||||
Incentive compensation plan (in shares) | 30,000 | |||||||
Incentive compensation plan | 1,125 | $ 78 | 1,047 | |||||
Dividend reinvestment plan (in shares) | [1] | 152,000 | ||||||
Dividend reinvestment plan | [1] | 5,956 | (73) | 6,029 | ||||
Cash dividend declared | (23,886) | (23,886) | ||||||
Treasury stock and other (shares) | (1,000) | |||||||
Treasury stock and other | 1,471 | 42 | 1,429 | |||||
Balance as of end of period (shares) at Mar. 31, 2018 | 87,656,000 | |||||||
Balance as of end of period at Mar. 31, 2018 | 1,467,374 | $ 225,173 | 256,158 | (13,788) | (84,401) | 1,084,232 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | (14,274) | [2] | (14,274) | |||||
Other comprehensive income | (2,092) | (2,092) | ||||||
Common stock issued: | ||||||||
Incentive compensation plan (in shares) | 3,000 | |||||||
Incentive compensation plan | 8 | $ (135) | 143 | |||||
Dividend reinvestment plan (in shares) | [1] | 92,000 | ||||||
Dividend reinvestment plan | [1] | 3,642 | 1 | 3,641 | ||||
Waiver discount (in shares) | 460,000 | |||||||
Waiver discount | 18,987 | $ 1,151 | 17,836 | 0 | ||||
Cash dividend declared | (24,038) | (24,038) | ||||||
Treasury stock and other (shares) | 1,000 | |||||||
Treasury stock and other | 355 | 355 | ||||||
Balance as of end of period (shares) at Jun. 30, 2018 | 88,212,000 | |||||||
Balance as of end of period at Jun. 30, 2018 | $ 1,449,962 | $ 226,189 | 274,138 | (15,880) | (80,405) | 1,045,920 | ||
Balance as of beginning of period (shares) at Sep. 30, 2018 | 88,292,956 | 88,293,000 | ||||||
Balance as of beginning of period at Sep. 30, 2018 | $ 1,418,978 | $ 226,196 | 274,748 | (12,610) | (76,473) | 1,007,117 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 86,248 | 86,248 | ||||||
Other comprehensive income | 234 | 234 | ||||||
Common stock issued: | ||||||||
Incentive compensation plan (in shares) | 137,000 | |||||||
Incentive compensation plan | 2,134 | $ 343 | 1,791 | |||||
Dividend reinvestment plan (in shares) | [1] | 82,000 | ||||||
Dividend reinvestment plan | [1] | 3,692 | 454 | 3,238 | ||||
Waiver discount (in shares) | 168,000 | |||||||
Waiver discount | 7,964 | 1,293 | 6,671 | |||||
Cash dividend declared | (25,938) | (25,938) | ||||||
Treasury stock and other | 1,504 | 1,504 | ||||||
Balance as of end of period (shares) at Dec. 31, 2018 | 88,680,000 | |||||||
Balance as of end of period at Dec. 31, 2018 | $ 1,497,050 | $ 226,539 | 278,286 | (15,822) | (65,060) | 1,073,107 | ||
Balance as of beginning of period (shares) at Sep. 30, 2018 | 88,292,956 | 88,293,000 | ||||||
Balance as of beginning of period at Sep. 30, 2018 | $ 1,418,978 | $ 226,196 | 274,748 | (12,610) | (76,473) | 1,007,117 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | [2] | 151,419 | ||||||
Other comprehensive income | $ 844 | |||||||
Balance as of end of period (shares) at Jun. 30, 2019 | 89,917,854 | 89,918,000 | ||||||
Balance as of end of period at Jun. 30, 2019 | $ 1,572,197 | $ 226,627 | 290,414 | (15,212) | (15,628) | 1,085,996 | ||
Balance as of beginning of period (shares) at Dec. 31, 2018 | 88,680,000 | |||||||
Balance as of beginning of period at Dec. 31, 2018 | 1,497,050 | $ 226,539 | 278,286 | (15,822) | (65,060) | 1,073,107 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 73,573 | 73,573 | ||||||
Other comprehensive income | 305 | 305 | ||||||
Common stock issued: | ||||||||
Incentive compensation plan (in shares) | 30,000 | |||||||
Incentive compensation plan | 1,224 | $ 74 | 1,150 | |||||
Dividend reinvestment plan (in shares) | [1] | 123,000 | ||||||
Dividend reinvestment plan | [1] | 5,762 | 870 | 4,892 | ||||
Waiver discount (in shares) | 339,000 | |||||||
Waiver discount | 16,575 | 3,123 | 13,452 | |||||
Cash dividend declared | (25,981) | (25,981) | ||||||
Treasury stock and other (shares) | (8,000) | |||||||
Treasury stock and other | 654 | 654 | ||||||
Balance as of end of period (shares) at Mar. 31, 2019 | 89,164,000 | |||||||
Balance as of end of period at Mar. 31, 2019 | 1,569,162 | $ 226,613 | 283,429 | (15,517) | (46,062) | 1,120,699 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | (8,402) | [2] | (8,402) | |||||
Other comprehensive income | 305 | 305 | ||||||
Common stock issued: | ||||||||
Incentive compensation plan (in shares) | 6,000 | |||||||
Incentive compensation plan | 208 | $ 14 | 194 | |||||
Dividend reinvestment plan (in shares) | [1] | 74,000 | ||||||
Dividend reinvestment plan | [1] | 3,632 | 676 | 2,956 | ||||
Waiver discount (in shares) | 674,000 | |||||||
Waiver discount | 32,852 | 6,115 | 26,737 | |||||
Cash dividend declared | (26,301) | (26,301) | ||||||
Treasury stock and other (shares) | 0 | |||||||
Treasury stock and other | $ 741 | 741 | ||||||
Balance as of end of period (shares) at Jun. 30, 2019 | 89,917,854 | 89,918,000 | ||||||
Balance as of end of period at Jun. 30, 2019 | $ 1,572,197 | $ 226,627 | $ 290,414 | $ (15,212) | $ (15,628) | $ 1,085,996 | ||
[1] | Shares sold through the DRP are issued from treasury stock at average cost, which may differ from the actual market price paid. | |||||||
[2] | Includes income tax benefit related to the Tax Act of $844,000 and $57.7 million , for the three and nine months ended June 30, 2018 , respectively. |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividend declared per share (usd per share) | $ 0.2925 | $ 0.2925 | $ 0.2925 | $ 0.2725 | $ 0.2725 | $ 0.2725 |
NATURE OF THE BUSINESS
NATURE OF THE BUSINESS | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF THE BUSINESS | 1. NATURE OF THE BUSINESS New Jersey Resources Corporation provides regulated gas distribution services and operates certain unregulated businesses primarily through the following: New Jersey Natural Gas Company provides natural gas utility service to approximately 546,500 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 Clean Energy Ventures Corporation, the Company's clean energy subsidiary, comprises the Clean Energy Ventures segment and consists of the Company's capital investments in commercial and residential solar projects located throughout New Jersey. Clean Energy Ventures finalized the sale of its remaining wind assets on February 7, 2019 , see Note 15. Acquisitions and Dispositions for more details. NJR Energy Services Company comprises the Energy Services segment. Energy Services maintains and transacts around a portfolio of natural gas storage and transportation capacity contracts and provides physical wholesale energy, retail energy and energy management services in the U.S. and Canada. NJR Midstream Holdings Corporation, which comprises the Midstream segment, invests in energy-related ventures through its subsidiaries, NJR Steckman Ridge Storage Company, which holds the Company's 50 percent combined ownership interest in Steckman Ridge, located in Pennsylvania; NJNR Pipeline, which held our investment in Dominion; and NJR Pipeline Company, which includes Adelphia Gateway, LLC and the Company's 20 percent ownership interest in PennEast . See Note 7. Investments in Equity Investees for more information. NJR Retail Holdings Corporation has two principal subsidiaries, NJR Home Services Company, which provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey, and Commercial Realty & Resources Corporation, which owns commercial real estate. NJR Home Services Company and Commercial Realty & Resources Corporation are included in Home Services and Other operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared by NJR in accordance with the rules and regulations of the SEC and GAAP. The September 30, 2018 Balance Sheet data is derived from the audited financial statements of the Company. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and the notes thereto included in NJR's 2018 Annual Report on Form 10-K. The Unaudited Condensed Consolidated Financial Statements include the accounts of NJR and its subsidiaries. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary for a fair presentation of the results of the interim periods presented. These adjustments are of a normal and recurring nature. Because of the seasonal nature of NJR's utility and wholesale energy services operations, in addition to other factors, the financial results for the interim periods presented are not indicative of the results that are to be expected for the fiscal year ending September 30, 2019 . Intercompany transactions and accounts have been eliminated. Sales Tax Accounting As a result of the adoption of ASC 606, Revenue from Contracts with Customers , as of October 1, 2018, the Company excludes from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax on a net basis in operating revenues on the Unaudited Condensed Consolidated Statements of Operations. Prior to October 1, 2018, sales tax was presented in both operating revenues and operating expenses on the Unaudited Condensed Consolidated Statements of Operations. Gas in Storage The following table summarizes gas in storage, at average cost by segment as of: June 30, 2019 September 30, 2018 ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf Energy Services $ 59,354 26.3 $ 90,166 34.1 Natural Gas Distribution 73,281 16.6 94,467 24.9 Total $ 132,635 42.9 $ 184,633 59.0 Investments in Equity Securities Investments in equity securities are carried at fair value on the Unaudited Condensed Consolidated Balance Sheets. For the fiscal year ended September 30, 2018, total unrealized gains and losses associated with equity securities were included as a part of accumulated other comprehensive income, a component of common stock equity, and reclassifications of realized gains or losses out of other comprehensive income into earnings were recorded in other income, net on the Unaudited Condensed Consolidated Statements of Operations, based on average cost. On October 1, 2018, the Company adopted ASU No. 2016-01, an amendment to ASC 825, Financial Instruments . As a result, both realized unrealized gains and losses are recorded in other income, net on the Unaudited Condensed Consolidated Statements of Operations, based on average cost. As of September 30, 2018 , the Company's investments in equity securities were comprised of an investment in DM Common Units, which had a fair value of $32.9 million . On January 28, 2019 , Dominion and DM finalized an agreement and plan of merger and outstanding DM Common Units held immediately before the closing of the merger were converted into 0.2492 shares of Dominion common stock. This resulted in the conversion of the Company's 1.84 million DM Common Units into approximately 458,000 Dominion shares. On March 6, 2019 , the Company sold its investment in Dominion and received proceeds of approximately $34.5 million related to the sale and recorded total realized gains of $1.6 million in other income, net on the Unaudited Condensed Consolidated Statements of Operations. Loans Receivable NJNG currently provides loans, with terms ranging from three 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 Unaudited Condensed Consolidated Balance Sheets. The Company recorded $11.8 million and $10.4 million in other current assets and $38.5 million and $39.5 million in other noncurrent assets as of June 30, 2019 and September 30, 2018 , respectively, on the Unaudited Condensed Consolidated Balance Sheets, related to the loans. If NJNG determines a loan is impaired, the basis of the loan would be subject to regulatory review for recovery. As of June 30, 2019 and September 30, 2018 , the Company has not recorded an allowance for doubtful accounts for SAVEGREEN loans. Assets Held for Sale The wind assets classified as held for sale are measured at the lower of their carrying value or fair value less cost to sell. The major classes of assets and liabilities included within the disposal group as held for sale were as follows: (Thousands) September 30, 2018 Assets reclassified as held for sale Assets Sold Other adjustments (1) June 30, 2019 Assets held for sale: Nonutility plant and equipment - wind equipment, at cost $ 224,356 $ — $ (224,356 ) $ — $ — Nonutility plant and equipment - accumulated depreciation, wind equipment (18,501 ) — 18,501 — — Prepaid and other current assets 789 1,747 (1,541 ) (995 ) — Other noncurrent assets 261 — (261 ) — — $ 206,905 $ 1,747 $ (207,657 ) $ (995 ) $ — Liabilities held for sale: Accounts payable and other $ 186 $ — $ (186 ) $ — $ — Asset retirement obligation 3,996 — (3,996 ) — — $ 4,182 $ — $ (4,182 ) $ — $ — (1) Activity relates to amortization of prepaid and other current assets. On February 7, 2019 , Clean Energy Ventures finalized the sale of its remaining wind assets, see Note 15. Acquisitions and Dispositions for more details. Software Costs The Company capitalizes certain costs, such as software design and configuration, coding, testing and installation, that are incurred to purchase or create and implement computer software for internal use. Capitalized costs include external costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Maintenance costs are expensed as incurred. Upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Amortization is recorded on the straight-line basis over the estimated useful lives. The Company capitalized $1.7 million in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets and recorded $3.7 million in O&M on the Unaudited Condensed Consolidated Statements of Operations as of June 30, 2019 , related to information technology replacement and enhancement projects. Accumulated Other Comprehensive Loss The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the three months ended June 30, 2019 and 2018 : (Thousands) Investments in Equity Securities Postemployment Benefit Obligation Total Balance at March 31, 2019 $ — $ (15,517 ) $ (15,517 ) Other comprehensive loss (income), net of tax Amounts reclassified from accumulated other comprehensive loss, net of tax of $0, $(118), $(118) — 305 (1) 305 Balance at June 30, 2019 $ — $ (15,212 ) $ (15,212 ) Balance at March 31, 2018 $ — $ (13,788 ) $ (13,788 ) Other comprehensive (loss) income, net of tax Other comprehensive (loss),before reclassifications, net of tax of $854, $0, $854 (2,364 ) — (2,364 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(104), $(104) — 272 (1) 272 Net current-period other comprehensive (loss) income, net of tax of $854, $(104), $750 (2,364 ) 272 (2,092 ) Balance at June 30, 2018 $ (2,364 ) $ (13,516 ) $ (15,880 ) The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the nine months ended June 30, 2019 and 2018 : (Thousands) Investments in Equity Securities Postemployment Benefit Obligation Total Balance at September 30, 2018 $ 3,446 $ (16,056 ) $ (12,610 ) Other comprehensive income (loss), net of tax Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $0, $(333), $(333) — 844 (1) 844 Reclassification to retained earnings (3,446 ) (2) — (3,446 ) Balance at June 30, 2019 $ — $ (15,212 ) $ (15,212 ) Balance at September 30, 2017 $ 11,044 $ (14,300 ) $ (3,256 ) Other comprehensive (loss) income, net of tax Other comprehensive (loss),before reclassifications, net of tax of $9,071, $0, $9,071 (25,055 ) — (25,055 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $(858), $(344), $(1,202) 11,647 784 (1) 12,431 Net current-period other comprehensive (loss) income, net of tax of $8,213, $(344), $7,869 (13,408 ) 784 (12,624 ) Balance at June 30, 2018 $ (2,364 ) $ (13,516 ) $ (15,880 ) (1) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations. (2) Due to the adoption of ASU No. 2016-01, an amendment to ASC 825, Financial Instruments . See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. Reclassification Certain prior period amounts related to restricted cash on the Unaudited Condensed Consolidated Statements of Cash Flows and compensation costs on the Unaudited Condensed Consolidated Statements of Operations have been reclassified to conform to the current period presentation due to the ASU adoptions listed below. Recently Adopted Updates to the Accounting Standards Codification Revenue In May 2014, the FASB issued ASU No. 2014-09, and added ASC 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. The Company adopted the new guidance in the first quarter of fiscal 2019 and applied the new provisions on a modified retrospective basis. The Company recorded a cumulative-effect adjustment of $3.8 million , $2.7 million net of deferred income taxes, to retained earnings at Home Services and Other. As of October 1, 2018, NJRHS recognizes contract revenue on a straight line basis over the term of the contract. Previously, contract revenue was recognized over the term of the service contract based on expected demand for services. Revenue for Home Services and Other after adopting ASC 606 was $13.1 million and $37.9 million , as opposed to $14.9 million and $33.7 million under ASC 605 for the three and nine months ended June 30, 2019 , respectively. The Company elected the practical expedient to exclude from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax on a net basis in operating revenues on the Unaudited Condensed Consolidated Statements of Operations. Prior to adoption, operating revenue and energy taxes and other would have been $6.6 million and $40.9 million higher for the three and nine months ended June 30, 2019 , respectively, due to the Company's sales tax presentation. There was no additional impact on the Company’s financial position, results of operations or cash flows. The Company concluded that its tariff-based sales of natural gas are within the scope of the new guidance and the adoption did not result in any modification to the pattern of revenue recognition from such sales. Revenues from derivative instruments, such as those related to the Company’s SREC sales and natural gas purchases and sales will continue to be accounted for under ASC 815 and thus are outside the scope of ASC 606. Additionally, NJNG revenues generated by the CIP have been determined to be alternative revenue programs under ASC 980 and are also outside the scope of ASC 606, as they are deemed to be a contract with the BPU. The Company also evaluated its renewable asset PPA arrangements and determined that no modification to the pattern of revenue recognition of the related electricity, capacity and REC sales was necessary. Revenues from RECs sold as part of a bundled arrangement continue to be recognized in the same period as the related generation. Based on the completion of the Company’s evaluation and assessment of its revenue streams, the Company concluded that the new guidance did not have a material impact on its financial position, results of operations or cash flows. ASC 606 requires expanded disclosures, including the disclosure of performance obligations, disaggregated revenues and contract balances, which is included in Note 3. Revenue . Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, an amendment to ASC 230, Statement of Cash Flows , which addresses eight specific cash flow issues for which there has been diversity in practice. The Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a retrospective basis, which did not impact its statement of cash flows. In November 2016, the FASB issued ASU No. 2016-18, an amendment to ASC 230, Statement of Cash Flows , which requires that any amounts that are deemed to be restricted cash or restricted cash-equivalents be included in cash and cash-equivalent balances on the cash flow statement and, therefore, transfers between cash and restricted cash accounts will no longer be recognized within the statement of cash flows. The Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a retrospective basis, which did not materially impact its statement of cash flows. Accordingly, the following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Unaudited Condensed Consolidated Balance Sheets to the total amounts in the Unaudited Condensed Consolidated Statements of Cash Flows as follows: (Thousands) June 30, September 30, June 30, September 30, Balance Sheet Cash and cash equivalents $ 26,297 $ 1,458 $ 1,070 $ 2,226 Restricted cash in other noncurrent assets 391 252 295 243 Statements of Cash Flow Cash, cash equivalents and restricted cash in the statement of cash flows $ 26,688 $ 1,710 $ 1,365 $ 2,469 Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, an amendment to ASC 825, Financial Instruments , to address certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The standard affects investments in equity securities that do not result in consolidation and are not accounted for under the equity method and the presentation of certain fair value changes for financial liabilities measured at fair value. It also simplifies the impairment assessment of equity investments without a readily determinable fair value by requiring a qualitative assessment. The Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a modified retrospective basis which resulted in the reclassification of $4.7 million , $3.4 million net of deferred income tax expense, to the opening balance of retained earnings from accumulated other comprehensive income related to investments in equity securities. Subsequent changes to the fair value of the Company’s investments in equity securities are recorded in other income, net in the Unaudited Condensed Consolidated Statement of Operations. Business Combinations In January 2017, the FASB issued ASU No. 2017-01, an amendment to ASC 805, Business Combinations , clarifying the definition of a business in the ASC, which is intended to reduce the complexity surrounding the assessment of a transaction as an asset acquisition or business combination. The amendment provides an initial fair value screen to reduce the number of transactions that would fit the definition of a business, and when the screen threshold is not met, provides an updated model that further clarifies the characteristics of a business. The Company adopted this guidance in the first quarter of fiscal 2019 and the new provisions will be applied on a prospective basis. The amendment could potentially have material impacts on future transactions that the Company may enter into by altering the Company’s conclusion on the accounting framework that is applied to acquisitions. Gains and Losses from the Derecognition of Nonfinancial Assets In February 2017, the FASB issued ASU No. 2017-05, an amendment to ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets , which clarifies the scope and accounting related to the derecognition of nonfinancial assets, including partial sales and contributions of nonfinancial assets to a joint venture or other non-controlled investee. The Company adopted this guidance in the first quarter of 2019, concurrently with ASC 606, and applied the new provisions on a modified retrospective basis through a cumulative effect adjustment of $6.8 million , $5 million net of deferred income tax expense, to the opening balance of retained earnings related to a transfer of a nonfinancial asset that was previously recorded as a deferred gain on the Unaudited Condensed Consolidated Balance Sheets. Compensation - Retirement Benefits In March 2017, the FASB issued ASU No. 2017-07, an amendment to ASC 715, Compensation - Retirement Benefits , which changes the presentation of net periodic benefit cost on the income statement by requiring companies to present all components of net periodic benefit cost, other than service cost, outside a subtotal of income from operations. The amendment also states that only the service cost component of net periodic benefits costs is eligible for capitalization, when applicable. The amendment establishes a practical expedient that permits entities to use their previously disclosed service and other costs in their pension and other postretirement benefit plan footnotes in the prior comparative periods as the estimation basis when applying the retrospective presentation of these costs in the income statement. The Company adopted this guidance in the first quarter of 2019, and applied the new provisions on a retrospective basis for income statement presentation, and is applying the new provisions on a prospective basis for changes to capitalization of costs. Accordingly, the following amounts on the Unaudited Condensed Consolidated Statement of Operations for the three and nine months ended June 30, 2019 , have been adjusted: (Thousands) As Previously Reported Effect of Change As Adjusted Three Months Ended Statements of Operations Operation and maintenance $ 69,447 $ (951 ) $ 68,496 Total operating expenses $ 581,101 $ (951 ) $ 580,150 Operating income $ (37,666 ) $ 951 $ (36,715 ) Other income (expense), net $ 2,682 $ (951 ) $ 1,731 Nine Months Ended Statements of Operations Operation and maintenance $ 182,307 $ (2,854 ) $ 179,453 Total operating expenses $ 2,052,412 $ (2,854 ) $ 2,049,558 Operating income $ 215,371 $ 2,854 $ 218,225 Other income (expense), net $ 11,589 $ (2,854 ) $ 8,735 The changes related to the costs that will be eligible for capitalization will not have a material impact on the Company's financial position, results of operations or cash flows upon adoption. There was no additional impact to the Company's financial position, results of operations or cash flows. Stock Compensation In May 2017, the FASB issued ASU No. 2017-09, an amendment to ASC 718, Compensation - Stock Compensation , which clarifies the accounting for changes to the terms or conditions of share-based payments. The Company adopted this guidance in the first quarter of fiscal 2019, and will apply the new provisions prospectively to awards modified on or after October 1, 2018. There was no impact to the Company's financial position, results of operations or cash flows upon adoption. Intangibles In August 2018, the FASB issued ASU No. 2018-15, an amendment to ASC 350, Intangibles - Goodwill and Other , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company elected to early adopt this guidance in the second quarter of fiscal 2019, as the Company has begun work on key technology replacement and enhancement initiatives and will apply the new provisions on a prospective basis. There was no material impact to the Company's financial position, results of operations or cash flows upon adoption, however as work progresses on the Company's key technology initiatives there may be a material impact in the future. Other Recent Updates to the Accounting Standards Codification Leases In February 2016, the FASB issued ASU No. 2016-02, an amendment to ASC 842, Leases , which, along with other ASU's containing minor amendments and technical corrections, provides for a comprehensive overhaul of the lease accounting model and changes the definition of a lease within the accounting literature. Under the new standard, all leases with a term greater than one year will be recorded on the balance sheet. Amortization of the related asset will be accounted for using one of two approaches prescribed by the guidance. Additional disclosures will be required to allow the user to assess the amount, timing and uncertainty of cash flows arising from leasing activities. A modified retrospective transition approach is required for leases existing at the time of adoption. In January 2018, the FASB issued ASU No. 2018-01, a further amendment to ASC 842, Leases , which was introduced by ASU No. 2016-02, as discussed above. This update provides an optional practical expedient that allows companies to not evaluate existing or expired land easements that were not previously accounted for under Topic 840 as leases. The Company expects to elect this practical expedient upon adoption. The guidance is effective for the Company beginning October 1, 2019. In July 2018, the FASB issued ASU No. 2018-11, which provides an optional transition method to ASC 842 that allows the Company to recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to elect this transition method upon adoption. At this time, the Company does not plan to early adopt the new guidance and expects to transition on a modified retrospective basis. The Company is currently in the process of reviewing its contracts to identify all of its leases and evaluating its lease population. The Company’s operating leases primarily consist of office and land leases related to solar assets. While the Company is currently evaluating the full impact of the standard and its related updates, it expects to recognize right-of-use assets and liabilities arising from current operating leases on its statement of financial position upon adoption where the Company is the lessee, however, these amounts are not reasonably estimable at this time. The Company has no material arrangements as a lessor at this time. The Company expects to elect the package of practical expedients whereby the Company would not be required to reassess all of its leases identified, lease classifications and initial direct costs associated with leases. Additionally, the Company plans to elect to not separate nonlease components from lease components, as well as make the election to exclude short-term leases from the recognition requirements of ASC 842. The Company does not expect the amendments to the standard to have any impact on its results of operations or cash flows. Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, an amendment to ASC 326, Financial Instruments - Credit Losses , which changes the impairment model for certain financial assets that have a contractual right to receive cash, including trade and loan receivables. The new model requires recognition based upon an estimation of expected credit losses rather than recognition of losses when it is probable that they have been incurred. An entity will apply the amendment through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The guidance is effective for the Company beginning October 1, 2020, with early adoption permitted. The Company is currently evaluating the amendment and all subsequent amendments related to this topic, to understand the impact on its financial position, results of operations and cash flows upon adoption and will apply the new guidance to its trade and loan receivables on a modified retrospective basis. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, an amendment to ASC 815 , Derivatives and Hedging , which, along with other ASU's containing minor amendments and technical corrections, is intended to make targeted improvements to the accounting for hedging activities by better aligning an entity’s risk management activities and financial reporting for hedging relationships. These amendments modify the accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Additionally, the amendments are intended to simplify the application of the hedge accounting guidance and provide relief to companies by easing certain hedge documentation requirements. The guidance is effective for the Company beginning October 1, 2019, with early adoption permitted. Upon adoption, the transition requirements and elections will be applied to hedging relationships existing on the date of adoption. The Company does not currently apply hedge accounting to any of its risk management activities and thus does not expect the amendments to have any impact on its financial position, results of operations and cash flows upon adoption. In October 2018, the FASB issued ASU No. 2018-16, an amendment to ASC 815, Derivatives and Hedging , which permits the use of the Overnight Swap Index rate based on the Secured Overnight Financing Rate as an additional acceptable U.S. benchmark interest rate for hedge accounting purposes. The guidance is effective for the Company beginning October 1, 2019, with early adoption permitted. The Company does not currently apply hedge accounting to any of its risk management activities and thus does not expect the amendments to have any impact on its financial position, results of operations and cash flows upon adoption. Stock Compensation In June 2018, the FASB issued ASU No. 2018-07, an amendment to ASC 718, Compensation - Stock Compensation , which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The guidance is effective for the Company beginning October 1, 2019, with early adoption permitted. The Company is currently evaluating the impact of the amendment on the Company’s financial position, results of operations and cash flows upon adoption. Fair Value In August 2018, the FASB issued ASU No. 2018-13, an amendment to ASC 820, Fair Value Measurement , which removes, modifies and adds to certain disclosure requirements of fair value measurements. Disclosure requirements removed include the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. Modifications include considerations around the requirement to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse. The additions include the requirement to disclose changes in unrealized gains and losses for the period in other comprehensive income for recurring Level 3 fair value measurements held and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance is effective for the Company beginning October 1, 2020, with early adoption permitted. Upon adoption, the amendments will be applied on a prospective or retrospective basis depending on the specific amendments’ transition requirements. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations, cash flows and disclosures upon adoption and will apply the new guidance. Compensation - Retirement Benefits In August 2018, the FASB issued ASU No. 2018-14, an amendment to ASC 715, Compensation - Retirement Benefits , which removes disclosures that no longer are considered cost-beneficial, clarifies the specific requirements of certain disclosures and adds new disclosure requirements identified as relevant. The guidance is effective for the Company beginning October 1, 2021, with early adoption permitted. Upon adoption, the amendments will be applied on a retrospective basis. The Company is continuing to evaluate the amendment to fully understand the impact on the Company's disclosures upon adoption. |
REVENUE
REVENUE | 9 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 3. REVENUE Revenue is recognized when a performance obligation is satisfied by transferring control of a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer using the output method of progress. The Company elected to apply the invoice practical expedient for recognizing revenue, whereby the amounts invoiced to customers represent the value to the customer and the Company’s performance completion as of the invoice date. Therefore the Company does not disclose related unsatisfied performance obligations. The Company also elected the practical expedient to exclude from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax net in operating revenues on the Unaudited Condensed Consolidated Statements of Operations. Below is a listing of performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms and the nature of the goods and services being transferred, by reporting segment and other business operations: Revenue Recognized Over Time: Segment Performance Obligation Description Natural Gas Distribution Natural gas utility sales NJNG's performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU. Revenues from the sale of natural gas are recognized in the period that gas is delivered and consumed by customers, including an estimate for quantities consumed but not billed during the period. Payment is due each month for the previous month's deliveries. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the billing period. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects and the most current tariff rates. NJNG is entitled to be compensated for performance completed until service is terminated. Customers may elect to purchase the natural gas commodity from NJNG or may contract separately to purchase natural gas directly from third-party suppliers. As NJNG is acting as an agent on behalf of the third party supplier, revenue is recorded for the delivery of natural gas to the customer. Clean Energy Ventures Commercial solar and wind electricity Clean Energy Ventures operates wholly-owned solar and formerly operated wind projects that recognize revenue as electricity is generated and transferred to the customer. The performance obligation is to provide electricity to the customer in accordance with contract terms or the interconnection agreement and is satisfied upon transfer of electricity generated. Due to the sale of our wind assets, wind electricity sales ceased in February 2019. Revenue is recognized as invoiced and the payment is due each month for the previous month's services. Clean Energy Ventures Residential solar electricity Clean Energy Ventures provides access to residential rooftop and ground-mount solar equipment to customers who then pay the Company a monthly fee. The performance obligation is to provide electricity to the customer based on generation from the underlying residential solar asset and is satisfied upon transfer of electricity generated. Revenue is derived from the contract terms and is recognized as invoiced, with the payment due each month for the previous month's services. Energy Services Wholesale natural gas services The performance obligation of Energy Services is to provide the customer transportation, storage and asset management services on an as needed basis. Energy Services generates revenue through management fees, demand charges, reservation fees and transportation charges centered around the buying and selling of the natural gas commodity, representing one series of distinct performance obligations. Revenue is recognized based upon the underlying natural gas quantities physically delivered and the customer obtaining control. Energy Services invoices customers on a monthly basis in line with the terms of the contract and based on the services provided. Payment is due each month for the previous month's invoiced services. Home Services and Other Service contracts Home Services enters into service contracts with homeowners to provide maintenance and replacement services of applicable heating, cooling or ventilation equipment. All services provided relate to a distinct performance obligation which is to provide services for the specific equipment over the term of the contract. Revenue is recognized on a straight line basis over the term of the contract and payment is due upon receipt of the invoice. Revenue Recognized at a Point in Time: Home Services and Other Installations Home Services installs appliances, including but not limited to, furnaces, air conditioning units, boilers and generators to customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the three months ended June 30, 2019 , is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Natural gas utility sales $ 115,525 — — — $ 115,525 Wholesale natural gas services — — 3,876 — 3,876 Service contracts — — — 7,890 7,890 Installations and maintenance — — — 5,193 5,193 Electricity sales — 4,745 — — 4,745 Eliminations (1) — — — (456 ) (456 ) Revenues from contracts with customers 115,525 4,745 3,876 12,627 136,773 Alternative revenue programs 2,025 — — — 2,025 Derivative Instruments 3,232 6,705 286,145 — 296,082 Eliminations (1) — — 62 — 62 Revenues out of scope 5,257 6,705 286,207 — 298,169 Total operating revenues $ 120,782 11,450 290,083 12,627 $ 434,942 (1) Consists of transactions between subsidiaries that are eliminated in consolidation. Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the nine months ended June 30, 2019 , is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Natural gas utility sales $ 598,676 — — — $ 598,676 Wholesale natural gas services — — 26,204 — 26,204 Service contracts — — — 23,533 23,533 Installations and maintenance — — — 14,373 14,373 Electricity sales — 16,944 — — 16,944 Eliminations (1) — — — (1,653 ) (1,653 ) Revenues from contracts with customers 598,676 16,944 26,204 36,253 678,077 Alternative revenue programs 9,059 — — — 9,059 Derivative Instruments 14,432 20,763 1,398,909 — 1,434,104 Eliminations (1) — — (8,276 ) — (8,276 ) Revenues out of scope 23,491 20,763 1,390,633 — 1,434,887 Total operating revenues $ 622,167 37,707 1,416,837 36,253 $ 2,112,964 (1) Consists of transactions between subsidiaries that are eliminated in consolidation. Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended June 30, 2019 , is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Residential $ 63,984 2,304 — 12,388 $ 78,676 Commercial and industrial 37,511 2,441 3,876 239 44,067 Firm transportation 12,296 — — — 12,296 Interruptible and off-tariff 1,734 — — — 1,734 Revenues out of scope 5,257 6,705 286,207 — 298,169 Total operating revenues $ 120,782 11,450 290,083 12,627 $ 434,942 Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the nine months ended June 30, 2019 , is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Residential $ 402,192 6,627 — 35,522 $ 444,341 Commercial and industrial 139,691 10,317 26,204 731 176,943 Firm transportation 52,006 — — — 52,006 Interruptible and off-tariff 4,787 — — — 4,787 Revenues out of scope 23,491 20,763 1,390,633 — 1,434,887 Total operating revenues $ 622,167 37,707 1,416,837 36,253 $ 2,112,964 Customer Accounts Receivable/Credit Balances and Deposits The timing of revenue recognition, customer billings and cash collections result in accounts receivables, billed and unbilled, and customers’ credit balances and deposits on the Unaudited Condensed Consolidated Balance Sheets during the nine months ended June 30, 2019 , are as follows: Customer Accounts Receivable Customers' Credit (Thousands) Billed Unbilled Balances and Deposits Balance as of October 1, 2018 $ 205,490 $ 7,199 $ 27,325 Increase (decrease) (30,820 ) 214 (7,832 ) Balance as of June 30, 2019 $ 174,670 $ 7,413 $ 19,493 The following table provides information about receivables and revenue earned on contracts in progress in excess of billings, which are included within accounts receivable, billed and unbilled, and customers’ credit balances and deposits, respectively, on the Unaudited Condensed Consolidated Balance Sheets as of June 30, 2019 : (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Eliminations Total Customer accounts receivable Billed $ 60,852 2,942 108,372 2,504 — $ 174,670 Unbilled 7,413 — — — — 7,413 Customers' credit balances and deposits (19,490 ) — — (3 ) — (19,493 ) Total $ 48,775 2,942 108,372 2,501 — $ 162,590 |
REGULATION
REGULATION | 9 Months Ended |
Jun. 30, 2019 | |
Regulated Operations [Abstract] | |
REGULATION | 4. REGULATION NJNG is subject to cost-based regulation, therefore, it is permitted to recover authorized operating expenses and earn a reasonable return on its utility capital investments 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. NJNG's recovery of costs is facilitated through its base rates, BGSS and other regulatory tariff riders. NJNG is required to make annual filings to the BPU for review of its BGSS, CIP and various other programs and related rates. Annual rate changes are typically requested to be effective at the beginning of the following fiscal year. All rate and program changes are subject to proper notification and BPU review and approval. In addition, NJNG is also permitted to implement certain BGSS rate changes on a provisional basis with proper notification to the BPU. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets are comprised of the following: (Thousands) June 30, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 15,252 $ 14,052 Underrecovered gas costs 9,949 4,137 Conservation Incentive Program 2,065 — Derivatives at fair value, net 5,654 108 Total current regulatory assets $ 32,920 $ 18,297 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 34,340 $ 33,017 Liability for future expenditures 125,566 130,800 Deferred income taxes 19,419 17,225 Derivatives at fair value, net 750 — SAVEGREEN 7,684 8,636 Postemployment and other benefit costs 132,605 136,716 Deferred storm damage costs 9,229 10,858 Cost of removal 49,929 22,339 Other noncurrent regulatory assets 9,247 9,001 Total noncurrent regulatory assets $ 388,769 $ 368,592 Regulatory liabilities-current Conservation Incentive Program $ — $ 6,994 Derivatives at fair value, net — 1,191 Total current regulatory liabilities $ — $ 8,185 Regulatory liabilities-noncurrent Tax Act impact (1) $ 201,664 $ 205,410 Derivatives at fair value, net — 123 New Jersey Clean Energy Program 207 1,902 Other noncurrent regulatory liabilities 1,789 1,704 Total noncurrent regulatory liabilities $ 203,660 $ 209,139 (1) Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. Regulatory filings and/or actions that occurred during the current fiscal year include the following: • On December 18, 2018 , the BPU approved a decrease in NJNG's EE recovery rate reflecting actual costs incurred through September 30, 2018 , which will result in an annual decrease of $8.8 million , effective January 1, 2019 . • On December 28, 2018 , NJNG notified the BPU that it will increase the BGSS rate, effective February 1, 2019 , resulting in an estimated $10.9 million increase to the revenues credited to BGSS from February through September 30, 2019 . • On February 28, 2019 , NJNG filed a petition with the BPU seeking authority to implement a five-year IIP. The IIP consists of two components, transmission and distribution investments and information technology replacement and enhancements. The total investment for the IIP is approximately $507 million . All approved investments will be recovered through annual filings to adjust base rates. • On March 29, 2019 , the BPU approved NJNG’s annual SBC application requesting recovery of remediation expenses incurred through June 30, 2018 , an increase in the RAC rate of $1.4 million and an increase in the NJCEP factor of $1.9 million , effective April 1, 2019 . • On March 29, 2019 , NJNG filed a petition with the BPU requesting a base rate increase of approximately $8.7 million for the recovery associated with NJ RISE and SAFE II capital investment costs of approximately $75 million made through June 30, 2019 . On July 17, 2019 , this filing was updated to reflect the actual results through June 30, 2019, which resulted in a revised base rate increase of $7.8 million , with changes effective October 1, 2019 . • On March 29, 2019 , NJNG filed a base rate case with the BPU requesting a natural gas revenue increase of $128.2 million , including a change in the Company’s overall rate of return on rate base to 7.87 percent . NJNG is also seeking permission to request recovery for SRL in a future filing, upon completion of the project. On July 2, 2019, the Company filed an update with actual information through May 31, 2019. The requested increase was revised from $128.2 million to $129.8 million . • On May 31, 2019 , NJNG filed its annual petition with the BPU to decrease its BGSS rate for residential and small commercial customers. The rate changes will result in a $6.8 million decrease to the annual revenues credited to BGSS, a $15.6 million annual increase related to its balancing charge, as well as increases to CIP rates, which will result in a $12.8 million annual recovery increase, effective October 1, 2019 . • On May 31, 2019 , NJNG filed a petition with the BPU to increase its EE recovery rate, which will result in an annual increase of $3.5 million , anticipated to be effective October 1, 2019 . • On June 24, 2019 , NJNG filed its annual USF compliance filing proposing an increase to the statewide USF rate, which will result in the annual recovery increasing by $1.2 million , effective October 1, 2019 . |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | 5. DERIVATIVE INSTRUMENTS The Company is subject primarily 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 is exposed to foreign currency and interest rate risk, the Company may utilize foreign currency derivatives to hedge Canadian dollar denominated gas purchases and/or sales and interest rate derivatives to reduce exposure to fluctuations in interest rates. All of these types of contracts 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 Unaudited Condensed 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 6. Fair Value . Energy Services Energy Services chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS. The changes in the fair value of these derivatives are recorded as a component of gas purchases or operating revenues, as appropriate for Energy Services, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For Energy Services 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. Energy Services 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. Energy Services may utilize foreign currency derivatives to lock in the exchange rates 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 are typically used to hedge demand fee payments on pipeline capacity, storage and gas purchase agreements. As a result of Energy Services entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating 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 Unaudited Condensed Consolidated Balance Sheets, with changes in value recognized in current period earnings. Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. Energy Services recognizes changes in the fair value of these derivatives as a component of operating revenues. Upon settlement of the contract, the related revenue is recognized when the SREC is transferred to the counterparty. Natural Gas Distribution Changes in fair value of NJNG's financial commodity derivatives are recorded as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. Effective for contracts executed on or after January 1, 2016, NJNG no longer elects NPNS accounting treatment on all physical forward commodity contracts. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect certain contracts to be normal. Because NJNG recovers these amounts through future BGSS rates as increases or decreases to the cost of natural gas in NJNG’s tariff for gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. In June 2015, NJNG entered into a treasury lock transaction to fix a benchmark treasury rate of 3.26 percent associated with a $125 million debt issuance that was finalized in May 2018. This debt issuance coincided with the maturity of NJNG's $125 million , 5.6 percent notes that came due May 15, 2018 . This treasury lock was settled on March 13, 2018 , which coincided with the pricing of the new debt being issued. Settlement of the treasury lock resulted in a $2.6 million loss, which is recorded as a component of regulatory assets on the Unaudited Condensed Consolidated Balance Sheets and will be amortized in earnings over the term of the $125 million , 4.01 percent notes that were issued on May 11, 2018 . Clean Energy Ventures The Company elects NPNS accounting treatment on PPA contracts that Clean Energy Ventures enters into that meet the definition of a derivative and accounts for the contract on an accrual basis. Accordingly, electricity sales are recognized in revenues throughout the term of the PPA as electricity is delivered. NPNS is a contract-by-contract election and where it makes sense to do so, the Company can and may elect certain contracts to be normal. Home Services and Other In January 2018 , NJR entered into a variable-for-fixed interest rate swap on its existing $100 million variable rate term loan, which fixed the variable rate at 2.84 percent . The swap will terminate on August 16, 2019 , which coincides with the maturity of the debt. The change in the fair value of the interest rate swap is recorded as a component of interest expense on the Unaudited Condensed Consolidated Statements of Operations. Fair Value of Derivatives The following table reflects the fair value of NJR's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of: Fair Value June 30, 2019 September 30, 2018 (Thousands) Balance Sheet Location Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Natural Gas Distribution: Physical commodity contracts Derivatives - current $ 55 $ 62 $ 85 $ 192 Financial commodity contracts Derivatives - current 216 19 94 — Energy Services: Physical commodity contracts Derivatives - current 7,874 17,988 7,667 18,158 Derivatives - noncurrent 3,126 19,068 3,930 11,316 Financial commodity contracts Derivatives - current 20,162 22,425 19,169 28,176 Derivatives - noncurrent 11,350 5,774 6,630 11,548 Foreign currency contracts Derivatives - current 10 183 — 126 Derivatives - noncurrent — 81 — 118 Home Services and Other: Interest rate contracts Derivatives - current 20 — 381 — Total fair value of derivatives $ 42,813 $ 65,600 $ 37,956 $ 69,634 Offsetting of Derivatives The Company transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty. However, the Company’s policy is to present its derivative assets and liabilities on a gross basis at the contract level unit of account on the Unaudited Condensed Consolidated Balance Sheets. The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral, as well as the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented on Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of June 30, 2019: Derivative assets: Energy Services Physical commodity contracts $ 11,000 $ (4,187 ) $ (200 ) $ 6,613 Financial commodity contracts 31,512 (26,906 ) (614 ) 3,992 Foreign currency contracts 10 (10 ) — — Total Energy Services $ 42,522 $ (31,103 ) $ (814 ) $ 10,605 Natural Gas Distribution Physical commodity contracts $ 55 $ — $ — $ 55 Financial commodity contracts 216 (19 ) — 197 Total Natural Gas Distribution $ 271 $ (19 ) $ — $ 252 Home Services and Other Interest rate contracts $ 20 $ — $ — $ 20 Total Home Services and Other $ 20 $ — $ — $ 20 Derivative liabilities: Energy Services Physical commodity contracts $ 37,056 $ (4,187 ) $ — $ 32,869 Financial commodity contracts 28,199 (26,906 ) (654 ) 639 Foreign currency contracts 264 (10 ) — 254 Total Energy Services $ 65,519 $ (31,103 ) $ (654 ) $ 33,762 Natural Gas Distribution Physical commodity contracts $ 62 $ — $ — $ 62 Financial commodity contracts 19 (19 ) — — Total Natural Gas Distribution $ 81 $ (19 ) $ — $ 62 As of September 30, 2018: Derivative assets: Energy Services Physical commodity contracts $ 11,597 $ (3,944 ) $ (200 ) $ 7,453 Financial commodity contracts 25,799 (18,775 ) — 7,024 Total Energy Services $ 37,396 $ (22,719 ) $ (200 ) $ 14,477 Natural Gas Distribution Physical commodity contracts $ 85 $ (3 ) $ — $ 82 Financial commodity contracts 94 — (94 ) — Total Natural Gas Distribution $ 179 $ (3 ) $ (94 ) $ 82 Home Services and Other Interest rate contracts $ 381 $ — $ — $ 381 Total Home Services and Other $ 381 $ — $ — $ 381 Derivative liabilities: Energy Services Physical commodity contracts $ 29,474 $ (3,944 ) $ — $ 25,530 Financial commodity contracts 39,724 (18,775 ) (20,949 ) — Foreign currency contracts 244 — — 244 Total Energy Services $ 69,442 $ (22,719 ) $ (20,949 ) $ 25,774 Natural Gas Distribution Physical commodity contracts $ 192 $ (3 ) $ — $ 189 Total Natural Gas Distribution $ 192 $ (3 ) $ — $ 189 (1) Derivative assets and liabilities are presented on a gross basis on the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Includes 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. Energy Services utilizes financial derivatives to economically hedge the gross margin associated with the purchase of physical gas to be used for storage injection and its subsequent sale 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 delivered. 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 Energy Services, 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 Unaudited Condensed Consolidated Statements of Operations as of: (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized in income on derivatives Three Months Ended Nine Months Ended June 30, June 30, Derivatives not designated as hedging instruments: 2019 2018 2019 2018 Energy Services: Physical commodity contracts Operating revenues $ 1,435 $ 3,046 $ 74 $ (7,696 ) Physical commodity contracts Gas purchases 2,392 1,008 266 (66,335 ) Financial commodity contracts Gas purchases 22,919 (6,777 ) 17,732 (19,007 ) Foreign currency contracts Gas purchases 37 (194 ) (188 ) (457 ) Home Services and Other: Interest rate contracts Interest expense (43 ) 165 (228 ) 286 Total unrealized and realized gains (losses) $ 26,740 $ (2,752 ) $ 17,656 $ (93,209 ) 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 approval. At settlement, the resulting gains and/or losses are payable to or recoverable from utility customers and are deferred in regulatory assets or liabilities resulting in no impact to earnings. The following table reflects the (losses) gains associated with NJNG's derivative instruments as of: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2019 2018 2019 2018 Natural Gas Distribution: Physical commodity contracts $ 812 $ (178 ) $ 5,225 $ (16,033 ) Financial commodity contracts (10,368 ) 3,306 (7,129 ) 1,730 Interest rate contracts — — — 8,467 Total unrealized and realized (losses) gains $ (9,556 ) $ 3,128 $ (1,904 ) $ (5,836 ) NJNG and Energy Services had the following outstanding long (short) derivatives as of: Volume (Bcf) June 30, September 30, Natural Gas Distribution Futures 28.7 27.9 Physical 14.6 23.1 Energy Services Futures (26.9 ) (7.0 ) Physical 17.0 51.2 Swaps (6.2 ) (17.3 ) Not included in the previous table are Energy Services' net notional amount of foreign currency transactions of approximately $3.8 million , NJR's interest rate swap, as previously discussed, and 1,015,000 SRECs at Energy Services that were open as of June 30, 2019 . Broker Margin Futures exchanges have contract specific margin requirements that require the posting of cash or cash equivalents relating to traded contracts. Margin requirements consist of initial margin that is posted upon the initiation of a position, maintenance margin that is usually expressed as a percent of initial margin, and variation margin that fluctuates based on the daily marked-to-market relative to maintenance margin requirements. The Company maintains separate broker margin accounts for the Natural Gas Distribution and Energy Services segments. The balances are as follows: (Thousands) Balance Sheet Location June 30, September 30, Natural Gas Distribution Restricted broker margin accounts $ 1,460 $ 2,038 Energy Services Restricted broker margin accounts $ 43,367 $ 51,681 Wholesale Credit Risk NJNG, Energy Services and Clean Energy Ventures are exposed to credit risk as a result of their sales/wholesale marketing activities. As a result of the inherent volatility in the prices of natural gas commodities, derivatives, SRECs, electricity and RECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty fails to perform the obligations under its contract (e.g., failed to deliver or pay for natural gas, SRECs, electricity or RECs), then the Company could sustain a loss. NJR monitors and manages the credit risk of its wholesale 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. Internally-rated exposure applies to counterparties that are not rated by Fitch or Moody's. In these cases, the counterparty's or guarantor's financial statements are reviewed, and similar methodologies and ratios used by Fitch 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 following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of June 30, 2019 . 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 and Clean Energy Ventures residential solar installations. (Thousands) Gross Credit Exposure Investment grade $ 127,602 Noninvestment grade 19,542 Internally rated investment grade 18,415 Internally rated noninvestment grade 32,296 Total $ 197,855 Conversely, certain of NJNG's and Energy Services' 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. 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 June 30, 2019 and September 30, 2018 , was $483,000 and $124,000 , 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 June 30, 2019 and September 30, 2018 , the Company would have been required to post an additional $40,000 and $33,000 , respectively, to its counterparties. These amounts differ from the respective net derivative liabilities reflected on the Unaudited Condensed 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 | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | 6. FAIR VALUE Fair Value of Assets and Liabilities The fair value of cash and cash equivalents, 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. The estimated fair value of long-term debt at NJNG and NJR, including current maturities, excluding capital leases, debt issuance costs and solar asset financing obligations, is as follows: (Thousands) June 30, September 30, Carrying value (1) (2) (3) $ 1,207,845 $ 1,172,045 Fair market value $ 1,276,912 $ 1,158,051 (1) Excludes capital leases of $38.6 million and $35.9 million as of June 30, 2019 and September 30, 2018 , respectively. (2) Excludes NJNG's debt issuance costs of $7.7 million and $6.5 million as of June 30, 2019 and September 30, 2018 , respectively. (3) Excludes NJR's debt issuance costs of $1 million and $1.1 million as of June 30, 2019 and September 30, 2018 , 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 June 30, 2019 , 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, investments in equity 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 natural gas 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, SREC forward sales 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 the data is: • widely accepted and public; • non-proprietary and sourced from an independent third party; and • 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. 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 June 30, 2019: Assets: Physical commodity contracts $ — $ 11,055 $ — $ 11,055 Financial commodity contracts 27,122 4,606 — 31,728 Financial commodity contracts - foreign exchange — 10 — 10 Interest rate contracts — 20 — 20 Money market funds 21,513 — — 21,513 Other 1,681 — — 1,681 Total assets at fair value $ 50,316 $ 15,691 $ — $ 66,007 Liabilities: Physical commodity contracts $ — $ 37,118 $ — $ 37,118 Financial commodity contracts 28,193 25 — 28,218 Financial commodity contracts - foreign exchange — 264 — 264 Total liabilities at fair value $ 28,193 $ 37,407 $ — $ 65,600 As of September 30, 2018: Assets: Physical commodity contracts $ — $ 11,682 $ — $ 11,682 Financial commodity contracts 18,868 7,025 — 25,893 Interest rate contracts — 381 — 381 Investments in equity securities 32,917 — — 32,917 Other (1) 1,217 — — 1,217 Total assets at fair value $ 53,002 $ 19,088 $ — $ 72,090 Liabilities: Physical commodity contracts $ — $ 29,666 $ — $ 29,666 Financial commodity contracts 39,724 — — 39,724 Financial commodity contracts - foreign exchange — 244 — 244 Total liabilities at fair value $ 39,724 $ 29,910 $ — $ 69,634 (1) Includes money market funds. |
INVESTMENTS IN EQUITY INVESTEES
INVESTMENTS IN EQUITY INVESTEES | 9 Months Ended |
Jun. 30, 2019 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS IN EQUITY INVESTEES | 7. INVESTMENTS IN EQUITY INVESTEES NJR's investments in equity method investees include the following as of: (Thousands) June 30, September 30, Steckman Ridge (1) $ 115,419 $ 117,001 PennEast 82,241 73,865 Total $ 197,660 $ 190,866 (1) Includes loans with a total outstanding principal balance of $70.4 million for both June 30, 2019 and September 30, 2018 . The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2023. NJNG and Energy Services have entered into storage and park and loan agreements with Steckman Ridge. In addition, NJNG and Energy Services are each parties to precedent capacity agreements with PennEast. See Note 14. Related Party Transactions for more information on these intercompany transactions. The Company, through its subsidiary NJR Pipeline Company, is an investor in PennEast, a partnership whose purpose is to construct and operate a 120 -mile natural gas pipeline that will extend from northeast Pennsylvania to western New Jersey. PennEast received a Certificate of Public Convenience and Necessity for the project from FERC on January 19, 2018. As of June 30, 2019, PennEast completed all the necessary land surveys and expects to resubmit the NJDEP application in August 2019. Construction of PennEast is expected to begin following receipt of all necessary governmental and regulatory permits and any remaining land use rights. Construction could be delayed due to factors that are beyond the ability of PennEast to control, including unforeseen construction delays, the receipt of governmental and regulatory approvals, and intervention, challenges, and litigation by others to governmental and regulatory proceedings. The timing and outcome of such actions and proceedings cannot be predicted with any certainty at this time. Delays in receipt of regulatory approvals and other unforeseen delays could result in increased costs that could negatively impact PennEast operations if not resolved in a timely manner. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 8. EARNINGS PER SHARE The following table presents the calculation of the Company's basic and diluted earnings per share for: Three Months Ended Nine Months Ended June 30, June 30, (Thousands, except per share amounts) 2019 2018 2019 2018 Net (loss) income, as reported $ (8,402 ) $ (14,274 ) $ 151,419 $ 249,691 Basic (loss) earnings per share Weighted average shares of common stock outstanding-basic 89,600 87,888 88,995 87,493 Basic (loss) earnings per common share $(0.09) $(0.16) $1.70 $2.85 Diluted earnings per share Weighted average shares of common stock outstanding-basic 89,600 87,888 88,995 87,493 Incremental shares (1) — — 407 391 Weighted average shares of common stock outstanding-diluted 89,600 87,888 89,402 87,884 Diluted (loss) earnings per common share (2) $(0.09) $(0.16) $1.69 $2.84 (1) Incremental shares consist primarily of unvested stock awards and performance shares. (2) Since there was a net loss for the three months ended June 30, 2019 and 2018 , incremental shares of 409,000 and 402,000 , respectively, were not included in the computation of diluted loss per common share, as their effect would have been anti-dilutive. There were no anti-dilutive shares excluded from the calculation of diluted earnings per share during the nine months ended June 30, 2019 and 2018 . |
DEBT
DEBT | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | 9. DEBT NJR and NJNG finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program and committed unsecured credit facilities. Credit Facilities A summary of NJR's credit facility and NJNG's commercial paper program and credit facility are as follows: (Thousands) June 30, September 30, Expiration Dates NJR Bank revolving credit facilities (1) $ 425,000 $ 425,000 December 2023 Notes outstanding at end of period $ — $ 87,950 Weighted average interest rate at end of period — % 3.07 % Amount available at end of period (2) $ 420,775 $ 322,144 NJNG Bank revolving credit facilities (1) $ 250,000 $ 250,000 December 2023 Commercial paper outstanding at end of period $ 99,300 $ 64,000 Weighted average interest rate at end of period 2.62 % 2.18 % Amount available at end of period (3) $ 149,969 $ 185,269 (1) Committed credit facilities, which require commitment fees on the unused amounts. (2) Letters of credit outstanding total $4.2 million and $14.9 million for June 30, 2019 and September 30, 2018 , respectively, which reduces amount available by the same amount. (3) Letters of credit outstanding total $731,000 for both June 30, 2019 and September 30, 2018 , which reduces the amount available by the same amount. On December 5, 2018 , NJNG entered into an Amended and Restated Credit Agreement governing a $250 million NJNG Credit Facility. The NJNG Credit Facility expires on December 5, 2023 , subject to two mutual options for a one-year extension beyond that date. The NJNG Credit Facility permits the borrowing of revolving loans and swingline loans, as well as the issuance of letters of credit. The NJNG Credit Facility also includes an accordion feature, which would allow NJNG, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJNG Credit Facility in minimum increments of $50 million up to a maximum of $100 million . On December 5, 2018 , NJR entered into an Amended and Restated Credit Agreement governing a $425 million NJR Credit Facility. The NJR Credit Facility expires on December 5, 2023 , subject to two mutual options for a one-year extension beyond that date. The NJR Credit Facility permits the borrowing of revolving loans and swingline loans, as well as the issuance of letters of credit. The NJR Credit Facility also includes an accordion feature, which would allow NJR, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJR Credit Facility in minimum increments of $50 million up to a maximum of $250 million . Certain of NJR’s unregulated subsidiaries have guaranteed all of NJR’s obligations under the NJR Credit Facility. For accounting purposes, the Company treated both of the new credit facilities as a debt modification. On December 21, 2018 , NJR entered into a four-month, $100 million revolving line of credit facility, which expired on April 18, 2019 and was not renewed. There were no amounts outstanding under this credit facility at expiration. Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities. Long-term Debt NJNG NJNG received $9.9 million and $7.8 million in December 2018 and 2017 , 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. NJNG exercised early purchase options with respect to certain outstanding meter leases by making final principal payments of $1.1 million during both the nine months ended June 30, 2019 and 2018 . On April 18, 2019 , NJNG remarketed three FMBs, in the amount of $35.8 million , with a weighted average interest rate of 3.02 percent . The bonds have maturity dates ranging from April 2038 to April 2059 . On July 17, 2019 , NJNG entered into a Note Purchase Agreement, under which NJNG issued $100 million of 3.76 percent senior notes due July 17, 2049 and $85 million of 3.86 percent senior notes due July 17, 2059 . The senior notes are secured by an equal principal amount of NJNG's FMBs issued under NJNG's Mortgage Indenture. NJR On July 17, 2019 , NJR entered into a Note Purchase Agreement, under which NJR issued $50 million of 3.29 percent senior notes due July 17, 2029 , and will issue an additional $100 million of such senior notes on or about August 15, 2019, subject to certain customary closing conditions. The senior notes are not secured by assets, but are instead guaranteed by certain unregulated subsidiaries of NJR. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | 10. EMPLOYEE BENEFIT PLANS Pension and Other Postemployment Benefit Plans The components of the net periodic cost for pension benefits, including the Company's Pension Equalization Plan, and OPEB costs (principally health care and life insurance) for employees and covered dependents were as follows: Pension OPEB Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended June 30, June 30, June 30, June 30, (Thousands) 2019 2018 2019 2018 2019 2018 2019 2018 Service cost $ 1,845 $ 2,035 $ 5,536 $ 6,104 $ 1,101 $ 1,152 $ 3,303 $ 3,455 Interest cost 3,043 2,623 9,129 7,870 2,081 1,591 6,243 4,773 Expected return on plan assets (4,763 ) (4,910 ) (14,290 ) (14,729 ) (1,379 ) (1,338 ) (4,137 ) (4,014 ) Recognized actuarial loss 1,442 1,884 4,324 5,653 1,617 1,165 4,850 3,495 Prior service cost amortization 25 27 76 80 (91 ) (91 ) (273 ) (273 ) Net periodic benefit cost $ 1,592 $ 1,659 $ 4,775 $ 4,978 $ 3,329 $ 2,479 $ 9,986 $ 7,436 The Company does not expect to be required to make additional contributions to fund the pension plans during fiscal 2019 or 2020 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. In addition, as in the past, the Company may elect to make contributions in excess of the minimum required amount to the plans. There were no discretionary contributions made during the nine months ended June 30, 2019 and 2018 . |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 11. INCOME TAXES ASC Topic 740, Income Taxes requires the use of an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating its estimated annual effective tax rate, NJR considers forecasted annual pre-tax income and estimated permanent book versus tax differences, as well as tax credits associated with solar and wind projects. For investment tax credits, the estimate is based on solar projects that are probable of being completed and placed in service during the current fiscal year based on the best information available at each reporting period. For production tax credits, the estimate is based on the forecast of electricity produced during the current fiscal year based on the best information available at each reporting period. Adjustments to the effective tax rate and management's estimates will occur as information and assumptions change. Changes in tax laws or tax rates are recognized in the financial reporting period that includes the enactment date, the date in which the act is signed into law. In May 2019, the Company received a favorable ruling from the IRS regarding a change to its tax method of accounting for the capitalization of certain costs associated with self-constructed property placed in service during fiscal years ending September 30, 2012 through September 30, 2015. The self-constructed property to which these costs relate is considered qualified energy property as defined under the Internal Revenue Code. As such, the Company is eligible to claim a 30 percent ITC on the increase in the depreciable cost basis of the property through the filing of an amended tax return in the year of change. As a result of the favorable IRS ruling, the Company recorded a benefit from income taxes of approximately $6 million from the additional ITC recognized, net of deferred taxes. NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with unrecognized tax benefits. A tax benefit claimed, or expected to be claimed, on a tax return may be recognized if it is more likely than not that the position will be upheld upon examination by the applicable taxing authority. Interest and penalties related to unrecognized tax benefits, if any, are recognized within income tax expense and accrued interest, and penalties are recognized within accrued taxes in the Unaudited Condensed Consolidated Balance Sheets. As of June 30, 2019 , the Company evaluated certain tax benefits that have been recorded in the financial statements and concluded that a portion of the tax benefits are uncertain at this time. As a result, the Company recorded a reserve that is included in accrued taxes on the Unaudited Condensed Consolidated Balance Sheets. The tax benefits relate to fiscal tax years open to examination by the IRS and may be subject to subsequent adjustment. The reserve for uncertain tax benefits are as follows: Nine Months Ended June 30, (Thousands) 2019 Balance at October 1, $ — Additions based on tax positions related to the current fiscal period 3,415 Balance at period end $ 3,415 During fiscal 2018, there were no reserves associated with uncertain tax positions. The Tax Act On December 22, 2017, the President signed into law the Tax Act. The law made several changes to the Internal Revenue Code of 1986, as amended, the most impactful to the Company of which was a reduction in the federal corporate income tax rate from 35 percent to 21 percent that became effective January 1, 2018. Since the Company's fiscal year end is September 30, it is required by the Internal Revenue Code to calculate a statutory rate based upon the federal tax rates in effect before and after the effective date of the change in the taxable year that includes the effective date. Accordingly, the Company applied a federal statutory tax rate of 24.5 percent during fiscal 2018 and as of October 1, 2018, uses the enacted rate of 21 percent . As a result of the changes associated with the Tax Act during the nine months ended June 30, 2018 , the Company recognized a tax benefit of $57.7 million . During the nine months ended June 30, 2018 , the Company credited approximately $16.1 million to income tax (benefit) provision on the Unaudited Condensed Consolidated Statements of Operations, which includes $14.3 million attributable to the remeasurement of deferred income taxes, $890,000 for the amortization of excess deferred income taxes primarily related to timing differences associated with utility plant depreciation and $880,000 related to the revaluation of deferred income taxes not included in base rates. Effective Tax Rate The forecasted effective tax rates were (4.6) percent and 14.3 percent , for the nine months ended June 30, 2019 and 2018 , respectively. The decrease in the effective tax rate, when compared with the prior fiscal year, is due primarily to a decrease in forecasted pre-tax income combined with the lower federal statutory rate, and an increase in forecasted tax credits for the fiscal year ending September 30, 2019 . Forecasted tax credits, net of deferred income taxes, were $46.3 million and $22 million for fiscal 2019 and 2018 , respectively. To the extent there are discrete tax items that are not included in the forecasted effective tax rate, the actual effective tax rate will differ from the estimated annual effective tax rate. During the nine months ended June 30, 2019 and 2018 , discrete items totaled $5.4 million and $76.6 million , which included the items previously discussed above, along with excess tax benefits associated with the vesting of share-based awards and return to provision adjustments. NJR’s actual effective tax rate was (8.5) percent and (23.7) percent during the nine months ended June 30, 2019 and 2018 , respectively. Other Tax Items As of June 30, 2019 and September 30, 2018 , the Company had federal income tax net operating losses of approximately $135.6 million and $136.8 million , respectively. Federal net operating losses incurred before the implementation of the Tax Act can generally be carried back two years and forward 20 years and will begin to expire in fiscal 2036, with the remainder expiring by 2038. The Company expects to exercise its ability to carryback federal net operating losses to offset taxable income in prior periods. For the net operating losses it expects to carryback, the Company estimated the portion considered refundable and recorded receivables of approximately $23 million as of June 30, 2019 and September 30, 2018, as a component of other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. Upon filing amended federal income tax returns to carryback its remaining federal net operating losses totaling $24.5 million , the Company will reduce its taxable income in those periods and recapture federal investment tax credits of the same amount that were previously utilized to offset taxable income. In addition, as of June 30, 2019 and September 30, 2018 , the Company had ITC/PTC carryforwards of approximately $140.8 million and $121.1 million , respectively, which each have a life of 20 years. When the Company carries back the federal net operating losses noted above, it expects to recapture investment tax credits totaling $24.5 million . These recaptured tax credits are in addition to the $140.8 million noted above and will be carried forward to offset future taxable income. The Company expects to utilize this entire carryforward, which would begin to expire in fiscal 2033. As of June 30, 2019 and September 30, 2018 , the Company had state income tax net operating losses of approximately $403.7 million and $578.8 million , respectively. These state net operating losses have varying carry forward periods dictated by the state in which they were incurred. These state carry forward periods range from seven to 20 years and would begin to expire in fiscal 2021, with the majority expiring after 2035. On February 7, 2019 , Clean Energy Ventures finalized the sale of its remaining wind assets. As a result of the sale, it is more likely than not that certain state net operating loss carryforwards will not be realizable prior to their expiration. The Company had a valuation allowance of $4 million as of June 30, 2019 and September 30, 2018 , related to state net operating loss carryforwards in Montana, Iowa and Kansas. The remaining state income tax net operating losses are expected to be utilized prior to expiration. In March 2019, the IRS commenced an examination of the Company's federal income tax return for fiscal 2016. In May 2019, the State of New Jersey completed a general tax examination for fiscal years 2014 through 2017 related to NJRHS. All periods subsequent to those ended September 30, 2013 are statutorily open to examination. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | 12. COMMITMENTS AND CONTINGENT LIABILITIES Cash Commitments NJNG has entered into long-term contracts, expiring at various dates through September 2024 , for the supply, storage and transportation of natural gas. These contracts include annual fixed charges of approximately $131.2 million at current contract rates and volumes for the remainder of the fiscal year, which are recoverable through BGSS. For the purpose of securing storage and pipeline capacity, the Energy Services segment enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by Energy Services 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 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 June 30, 2019 , for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2019 2020 2021 2022 2023 Thereafter Energy Services: Natural gas purchases $ 226,513 $ 26,521 $ — $ — $ — $ — Storage demand fees 28,237 17,298 11,716 8,735 2,280 1,032 Pipeline demand fees 73,968 61,582 42,351 26,872 8,042 1,057 Sub-total Energy Services $ 328,718 $ 105,401 $ 54,067 $ 35,607 $ 10,322 $ 2,089 NJNG: Natural gas purchases $ 51,763 $ 33,269 $ 33,607 $ 34,142 $ 36,155 $ 8,889 Storage demand fees 35,988 27,025 16,383 11,680 3,112 4,441 Pipeline demand fees 95,216 107,586 94,441 89,827 70,311 567,727 Sub-total NJNG $ 182,967 $ 167,880 $ 144,431 $ 135,649 $ 109,578 $ 581,057 Total $ 511,685 $ 273,281 $ 198,498 $ 171,256 $ 119,900 $ 583,146 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 NJDEP regulations. NJNG has had discussions with the NJDEP regarding NJNG’s association with two additional sites located within its service territory, upon which former MGP operations appear to have been located in the late 1800s or early 1900s. NJNG agreed to perform a preliminary assessment and site investigation at these sites to determine if there is soil and groundwater contamination present indicative of MGP operations. Preliminary results at one of the sites indicated the existence of contaminants from gas manufacturing activities. Upon completion of the site investigation phase, a remedial investigation will be conducted to further determine the nature and extent of potential contamination. Subsequent to this effort, and if sufficient information is available, the Company would evaluate remedial alternatives, select an appropriate remedy that complies with NJDEP regulations and guidance, and estimate potential remedial costs. At the second site, NJNG is in the early investigatory stage, which includes conducting a preliminary assessment and site investigation to determine if there were former MGP operations active at the location and prior ownership of the site. Given the progress made to date, the uncertainties regarding the extent of potential contamination and unknown efforts that may be necessary to remediate each site, the total amount of potential costs to complete all remedial actions cannot be reasonably estimated at this time. The costs associated with a preliminary assessment, the completion of site investigation activities and the remedial investigation phase for the two sites are estimated to be approximately $600,000 . Inclusive of this estimate, total costs incurred to date at these sites amount to approximately $1.5 million . The Company will continue to gather information to further refine and enhance its estimate of potential costs as it becomes available. In addition to the two sites discussed above, NJNG periodically, and at least annually, performs an environmental review of MGP sites located in Atlantic Highlands, Berkeley, Long Branch, Manchester and Toms River, 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 $117.7 million to $204.1 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, NJNG recorded an MGP remediation liability and a corresponding regulatory asset on the Unaudited Condensed Consolidated Balance Sheets of $130.8 million as of September 30, 2018 , based on the most likely amount at year end and $125.6 million as of June 30, 2019 , which includes adjustments for actual expenditures during fiscal 2019 . 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 insurance recoveries, if any. NJNG recovers its remediation expenditures, including carrying costs, over rolling seven-year periods pursuant to a RAC approved by the BPU. On March 29, 2019 , the BPU approved NJNG's annual SBC filing requesting an increase in the RAC, which increased the annual recovery from $7.1 million to $8.5 million , effective April 1, 2019 . As of June 30, 2019 , $34.3 million of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Unaudited Condensed Consolidated Balance Sheets. NJNG will continue to seek recovery of MGP-related costs through the RAC. 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 involved, and from time to time in the future may be involved, in a number of pending and threatened judicial, regulatory and arbitration proceedings relating to matters that arise in the ordinary course of business. In view of the inherent difficulty of predicting the outcome of litigation matters, particularly when such matters are in their early stages or where the claimants seek indeterminate damages, the Company cannot state with confidence what the eventual outcome of the pending litigation will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each pending matter will be, if any. In accordance with applicable accounting guidance, NJR establishes accruals for litigation for those matters that present loss contingencies as to which it is both probable that a loss will be incurred and the amount of such loss can be reasonably estimated. NJR also discloses contingent matters for which there is a reasonable possibility of a loss. Based upon currently available information, NJR believes that the results of litigation that is currently pending, taken together, will not have a materially adverse effect on the Company’s financial condition, results of operations or cash flows. The actual results of resolving the pending litigation matters may be substantially higher than the amounts accrued. The foregoing statements about NJR’s litigation are based upon the Company’s judgments, assumptions and estimates and are necessarily subjective and uncertain. The Company has a number of threatened and pending litigation matters at various stages. Certain of the Company’s significant litigation is described below. Stafford Township In February 2015, a natural gas fire and explosion occurred in Stafford Township, New Jersey as a result of a natural gas leak emanating from an underground pipe. There were no fatalities, although several employees of NJNG were injured and several homes were damaged. NJNG notified its insurance carrier and believes that any costs associated with the incident, including attorneys’ fees, property damage and other losses, will be substantially covered by insurance. As of June 30, 2019, all non-subrogated property damage claims and all of the personal injury claims asserted against the Company and co-defendants as well as all cross-claims have been settled subject to documentation. The settlements will not have a material impact on the Company's financial position or results from operation. |
REPORTING SEGMENT AND OTHER OPE
REPORTING SEGMENT AND OTHER OPERATIONS DATA | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
REPORTING SEGMENT AND OTHER OPERATIONS DATA | 13. REPORTING SEGMENT AND OTHER OPERATIONS DATA The Company organizes its businesses based on a combination of factors, including its products and its regulatory environment. As a result, the Company manages its businesses through the following reporting segments and other operations: the Natural Gas Distribution segment consists of regulated energy and off-system, capacity and storage management operations; the Clean Energy Ventures segment consists of capital investments in clean energy projects; the Energy Services segment consists of unregulated wholesale and retail energy operations; the Midstream segment consists of the Company’s investments in natural gas transportation and storage facilities; the Home Services and Other operations consist of heating, cooling and water appliance sales, installations and services, other investments and general corporate activities. Information related to the Company's various reporting segments and other operations is detailed below: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2019 2018 2019 2018 Operating revenues Natural Gas Distribution External customers $ 120,782 $ 104,538 $ 622,167 $ 631,389 Clean Energy Ventures External customers 11,450 15,348 37,707 42,210 Energy Services External customers (1) 290,083 409,417 1,416,837 1,563,063 Intercompany (62 ) (12 ) 8,276 49,636 Subtotal 422,253 529,291 2,084,987 2,286,298 Home Services and Other External customers 12,627 14,132 36,253 31,121 Intercompany 455 627 1,652 1,856 Eliminations (393 ) (615 ) (9,928 ) (51,492 ) Total $ 434,942 $ 543,435 $ 2,112,964 $ 2,267,783 Depreciation and amortization Natural Gas Distribution $ 14,689 $ 13,473 $ 42,557 $ 39,609 Clean Energy Ventures 8,239 6,702 24,253 24,565 Energy Services (2) 23 21 75 50 Midstream 1 1 4 4 Subtotal 22,952 20,197 66,889 64,228 Home Services and Other 230 193 673 570 Eliminations (33 ) (70 ) (270 ) (164 ) Total $ 23,149 $ 20,320 $ 67,292 $ 64,634 Interest income (3) Natural Gas Distribution $ 187 $ 202 $ 567 $ 452 Energy Services 26 134 40 240 Midstream 1,088 945 3,089 2,380 Subtotal 1,301 1,281 3,696 3,072 Home Services and Other 515 340 1,620 898 Eliminations (1,320 ) (1,419 ) (4,202 ) (3,518 ) Total $ 496 $ 202 $ 1,114 $ 452 (1) Includes sales to Canada, which are immaterial. (2) The amortization of acquired wholesale energy contracts is excluded above and is included in gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations. (3) Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2019 2018 2019 2018 Interest expense, net of capitalized interest Natural Gas Distribution $ 6,301 $ 6,226 $ 18,166 $ 19,285 Clean Energy Ventures 4,320 4,708 14,405 13,260 Energy Services 766 581 4,277 3,041 Midstream 522 471 1,630 1,165 Subtotal 11,909 11,986 38,478 36,751 Home Services and Other 407 (129 ) 1,410 (18 ) Eliminations (668 ) (820 ) (2,245 ) (1,993 ) Total $ 11,648 $ 11,037 $ 37,643 $ 34,740 Income tax (benefit) provision Natural Gas Distribution $ (1,391 ) $ (25,314 ) $ 16,705 $ 4,381 Clean Energy Ventures (1,787 ) (565 ) (39,033 ) (87,275 ) Energy Services (1,193 ) (4,786 ) 7,063 32,922 Midstream 729 989 2,910 (8,723 ) Subtotal (3,642 ) (29,676 ) (12,355 ) (58,695 ) Home Services and Other 1,705 1,122 854 11,539 Eliminations (4 ) 20 (353 ) (645 ) Total $ (1,941 ) $ (28,534 ) $ (11,854 ) $ (47,801 ) Equity in earnings of affiliates Midstream $ 4,167 $ 3,907 $ 11,966 $ 12,104 Eliminations (672 ) (694 ) (1,939 ) (2,434 ) Total $ 3,495 $ 3,213 $ 10,027 $ 9,670 Net financial (loss) earnings Natural Gas Distribution $ (3,795 ) $ 2,440 $ 96,464 $ 96,991 Clean Energy Ventures (7,138 ) (829 ) 24,797 80,472 Energy Services (14,030 ) (15,079 ) 13,644 78,027 Midstream 3,052 3,489 11,201 22,315 Subtotal (21,911 ) (9,979 ) 146,106 277,805 Home Services and Other 4,437 1,993 2,932 (8,211 ) Eliminations (32 ) (17 ) (34 ) (202 ) Total $ (17,506 ) $ (8,003 ) $ 149,004 $ 269,392 Capital expenditures Natural Gas Distribution $ 100,473 $ 70,623 $ 239,569 $ 173,410 Clean Energy Ventures 38,813 29,424 91,333 88,416 Midstream 6,406 975 11,290 3,579 Subtotal 145,692 101,022 342,192 265,405 Home Services and Other 924 745 1,826 1,300 Total $ 146,616 $ 101,767 $ 344,018 $ 266,705 Investments in equity investees Midstream $ 1,239 $ 3,319 $ 2,696 $ 14,496 Total $ 1,239 $ 3,319 $ 2,696 $ 14,496 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: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2019 2018 2019 2018 Net financial (loss) earnings (1) $ (17,506 ) $ (8,003 ) $ 149,004 $ 269,392 Less: Unrealized (gain) loss on derivative instruments and related transactions (24,646 ) 2,657 (25,353 ) 25,904 Tax effect 5,885 (577 ) 6,034 (3,920 ) Effects of economic hedging related to natural gas inventory 11,317 4,474 12,073 (14,788 ) Tax effect (2,689 ) (1,011 ) (2,869 ) 5,518 NFE tax adjustment 1,029 728 7,700 6,987 Net (loss) income (1) $ (8,402 ) $ (14,274 ) $ 151,419 $ 249,691 (1) Includes income tax benefit related to the Tax Act of $844,000 and $57.7 million , for the three and nine months ended June 30, 2018 , respectively. 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, SRECs and foreign currency contracts. Consequently, to reconcile between net income 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. Included in the tax effects are current and deferred income tax expense corresponding with the NFE. Also included in the tax effects during the three and nine months ended June 30, 2018 , are the impacts of the Tax Act and resulting revaluation of the deferred income taxes that arose from derivative and hedging activity as measured under NFE. The revaluation caused the effective tax rate on reconciling items to differ from the statutory rate in effect for the quarter. NJR also calculates a quarterly tax adjustment based on an estimated annual effective tax rate for NFE purposes. The Company's assets for the various business segments and business operations are detailed below: (Thousands) June 30, September 30, Assets at end of period: Natural Gas Distribution $ 2,867,528 $ 2,663,054 Clean Energy Ventures (1) 703,866 865,018 Energy Services 285,970 396,852 Midstream 229,099 242,069 Subtotal 4,086,463 4,166,993 Home Services and Other 129,882 114,732 Intercompany assets (2) (92,933 ) (138,061 ) Total $ 4,123,412 $ 4,143,664 (1) Includes assets held for sale of $206.9 million for September 30, 2018 . (2) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 14. RELATED PARTY TRANSACTIONS Effective April 1, 2010 , NJNG entered into a 10 -year agreement 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 as a component of regulatory assets. Energy Services may periodically enter into storage or park and loan agreements with its affiliated FERC-jurisdictional natural gas storage facility, Steckman Ridge. As of June 30, 2019 , Energy Services has entered into transactions with Steckman Ridge for varying terms, all of which expire by October 31, 2020 . Demand fees, net of eliminations, associated with Steckman Ridge were as follows: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2019 2018 2019 2018 Natural Gas Distribution $ 1,431 $ 1,451 $ 4,349 $ 4,306 Energy Services 695 705 2,106 2,086 Total $ 2,126 $ 2,156 $ 6,455 $ 6,392 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) June 30, September 30, Natural Gas Distribution $ 775 $ 775 Energy Services 375 375 Total $ 1,150 $ 1,150 NJNG and Energy Services have entered into various asset management agreements, the effects of which are eliminated in consolidation. Under the terms of these agreements, NJNG releases certain transportation and storage contracts to Energy Services. As of June 30, 2019 , NJNG and Energy Services had four asset management agreements with expiration dates ranging from October 31, 2019 through October 31, 2021 . NJNG entered into a 15 -year transportation precedent agreement for committed capacity of 180,000 Dths per day and NJRES entered into a 5 -year, 50,000 Dths per day transportation precedent agreement with PennEast, both to commence when PennEast is placed in service. |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 9 Months Ended |
Jun. 30, 2019 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | 15. ACQUISITIONS AND DISPOSITIONS Acquisitions In October 2017, Adelphia, an indirect wholly owned subsidiary of NJR, entered into a Purchase and Sale Agreement with Talen pursuant to which Adelphia will acquire all of Talen’s membership interests in IEC for a base purchase price of $166 million . As additional consideration, Adelphia will pay Talen specified amounts of up to $23 million contingent upon the achievement of certain regulatory approvals and binding natural gas capacity commitments. In November 2017, the Company made an initial payment of $10 million towards the base purchase price, which is included in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. IEC owns an existing 84 -mile pipeline in southeastern Pennsylvania. The transaction is expected to close during fiscal 2019, following receipt of necessary permits and regulatory actions including those from the FERC and the Pennsylvania Public Utility Commission. Upon the closing, Adelphia will acquire IEC and, with it, IEC’s existing pipeline, related assets and rights of way. Adelphia has also agreed to provide firm natural gas transportation service for ten years following the closing to two power generators owned by affiliates of Talen that are currently served by IEC. Dispositions On February 7, 2019 , Clean Energy Ventures finalized the sale of its remaining wind assets to a subsidiary of Skyline Renewables LLC for a total purchase price of $208.6 million . The transaction generated a pre-tax gain of $645,000 , which was recognized as a component of O&M expense on the Unaudited Condensed Consolidated Statements of Operations. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Sales Tax Accounting | Sales Tax Accounting As a result of the adoption of ASC 606, Revenue from Contracts with Customers , as of October 1, 2018, the Company excludes from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax on a net basis in operating revenues on the Unaudited Condensed Consolidated Statements of Operations. Prior to October 1, 2018, sales tax was presented in both operating revenues and operating expenses on the Unaudited Condensed Consolidated Statements of Operations. |
Investments in Equity Securities | Investments in Equity Securities Investments in equity securities are carried at fair value on the Unaudited Condensed Consolidated Balance Sheets. For the fiscal year ended September 30, 2018, total unrealized gains and losses associated with equity securities were included as a part of accumulated other comprehensive income, a component of common stock equity, and reclassifications of realized gains or losses out of other comprehensive income into earnings were recorded in other income, net on the Unaudited Condensed Consolidated Statements of Operations, based on average cost. On October 1, 2018, the Company adopted ASU No. 2016-01, an amendment to ASC 825, Financial Instruments . As a result, both realized unrealized gains and losses are recorded in other income, net on the Unaudited Condensed Consolidated Statements of Operations, based on average cost. |
Loans Receivable | Loans Receivable NJNG currently provides loans, with terms ranging from three 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 Unaudited Condensed Consolidated Balance Sheets. The Company recorded $11.8 million and $10.4 million in other current assets and $38.5 million and $39.5 million in other noncurrent assets as of June 30, 2019 and September 30, 2018 , respectively, on the Unaudited Condensed Consolidated Balance Sheets, related to the loans. If NJNG determines a loan is impaired, the basis of the loan would be subject to regulatory review for recovery. As of June 30, 2019 and September 30, 2018 , the Company has not recorded an allowance for doubtful accounts for SAVEGREEN loans. |
Software Costs | Software Costs |
Reclassification | Reclassification Certain prior period amounts related to restricted cash on the Unaudited Condensed Consolidated Statements of Cash Flows and compensation costs on the Unaudited Condensed Consolidated Statements of Operations have been reclassified to conform to the current period presentation due to the ASU adoptions listed below. |
Recently Adopted Updates to the Accounting Standards Codification | Recently Adopted Updates to the Accounting Standards Codification Revenue In May 2014, the FASB issued ASU No. 2014-09, and added ASC 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. The Company adopted the new guidance in the first quarter of fiscal 2019 and applied the new provisions on a modified retrospective basis. The Company recorded a cumulative-effect adjustment of $3.8 million , $2.7 million net of deferred income taxes, to retained earnings at Home Services and Other. As of October 1, 2018, NJRHS recognizes contract revenue on a straight line basis over the term of the contract. Previously, contract revenue was recognized over the term of the service contract based on expected demand for services. Revenue for Home Services and Other after adopting ASC 606 was $13.1 million and $37.9 million , as opposed to $14.9 million and $33.7 million under ASC 605 for the three and nine months ended June 30, 2019 , respectively. The Company elected the practical expedient to exclude from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax on a net basis in operating revenues on the Unaudited Condensed Consolidated Statements of Operations. Prior to adoption, operating revenue and energy taxes and other would have been $6.6 million and $40.9 million higher for the three and nine months ended June 30, 2019 , respectively, due to the Company's sales tax presentation. There was no additional impact on the Company’s financial position, results of operations or cash flows. The Company concluded that its tariff-based sales of natural gas are within the scope of the new guidance and the adoption did not result in any modification to the pattern of revenue recognition from such sales. Revenues from derivative instruments, such as those related to the Company’s SREC sales and natural gas purchases and sales will continue to be accounted for under ASC 815 and thus are outside the scope of ASC 606. Additionally, NJNG revenues generated by the CIP have been determined to be alternative revenue programs under ASC 980 and are also outside the scope of ASC 606, as they are deemed to be a contract with the BPU. The Company also evaluated its renewable asset PPA arrangements and determined that no modification to the pattern of revenue recognition of the related electricity, capacity and REC sales was necessary. Revenues from RECs sold as part of a bundled arrangement continue to be recognized in the same period as the related generation. Based on the completion of the Company’s evaluation and assessment of its revenue streams, the Company concluded that the new guidance did not have a material impact on its financial position, results of operations or cash flows. ASC 606 requires expanded disclosures, including the disclosure of performance obligations, disaggregated revenues and contract balances, which is included in Note 3. Revenue . Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, an amendment to ASC 230, Statement of Cash Flows , which addresses eight specific cash flow issues for which there has been diversity in practice. The Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a retrospective basis, which did not impact its statement of cash flows. In November 2016, the FASB issued ASU No. 2016-18, an amendment to ASC 230, Statement of Cash Flows , which requires that any amounts that are deemed to be restricted cash or restricted cash-equivalents be included in cash and cash-equivalent balances on the cash flow statement and, therefore, transfers between cash and restricted cash accounts will no longer be recognized within the statement of cash flows. The Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a retrospective basis, which did not materially impact its statement of cash flows. Accordingly, the following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Unaudited Condensed Consolidated Balance Sheets to the total amounts in the Unaudited Condensed Consolidated Statements of Cash Flows as follows: (Thousands) June 30, September 30, June 30, September 30, Balance Sheet Cash and cash equivalents $ 26,297 $ 1,458 $ 1,070 $ 2,226 Restricted cash in other noncurrent assets 391 252 295 243 Statements of Cash Flow Cash, cash equivalents and restricted cash in the statement of cash flows $ 26,688 $ 1,710 $ 1,365 $ 2,469 Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, an amendment to ASC 825, Financial Instruments , to address certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The standard affects investments in equity securities that do not result in consolidation and are not accounted for under the equity method and the presentation of certain fair value changes for financial liabilities measured at fair value. It also simplifies the impairment assessment of equity investments without a readily determinable fair value by requiring a qualitative assessment. The Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a modified retrospective basis which resulted in the reclassification of $4.7 million , $3.4 million net of deferred income tax expense, to the opening balance of retained earnings from accumulated other comprehensive income related to investments in equity securities. Subsequent changes to the fair value of the Company’s investments in equity securities are recorded in other income, net in the Unaudited Condensed Consolidated Statement of Operations. Business Combinations In January 2017, the FASB issued ASU No. 2017-01, an amendment to ASC 805, Business Combinations , clarifying the definition of a business in the ASC, which is intended to reduce the complexity surrounding the assessment of a transaction as an asset acquisition or business combination. The amendment provides an initial fair value screen to reduce the number of transactions that would fit the definition of a business, and when the screen threshold is not met, provides an updated model that further clarifies the characteristics of a business. The Company adopted this guidance in the first quarter of fiscal 2019 and the new provisions will be applied on a prospective basis. The amendment could potentially have material impacts on future transactions that the Company may enter into by altering the Company’s conclusion on the accounting framework that is applied to acquisitions. Gains and Losses from the Derecognition of Nonfinancial Assets In February 2017, the FASB issued ASU No. 2017-05, an amendment to ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets , which clarifies the scope and accounting related to the derecognition of nonfinancial assets, including partial sales and contributions of nonfinancial assets to a joint venture or other non-controlled investee. The Company adopted this guidance in the first quarter of 2019, concurrently with ASC 606, and applied the new provisions on a modified retrospective basis through a cumulative effect adjustment of $6.8 million , $5 million net of deferred income tax expense, to the opening balance of retained earnings related to a transfer of a nonfinancial asset that was previously recorded as a deferred gain on the Unaudited Condensed Consolidated Balance Sheets. Compensation - Retirement Benefits In March 2017, the FASB issued ASU No. 2017-07, an amendment to ASC 715, Compensation - Retirement Benefits , which changes the presentation of net periodic benefit cost on the income statement by requiring companies to present all components of net periodic benefit cost, other than service cost, outside a subtotal of income from operations. The amendment also states that only the service cost component of net periodic benefits costs is eligible for capitalization, when applicable. The amendment establishes a practical expedient that permits entities to use their previously disclosed service and other costs in their pension and other postretirement benefit plan footnotes in the prior comparative periods as the estimation basis when applying the retrospective presentation of these costs in the income statement. The Company adopted this guidance in the first quarter of 2019, and applied the new provisions on a retrospective basis for income statement presentation, and is applying the new provisions on a prospective basis for changes to capitalization of costs. Accordingly, the following amounts on the Unaudited Condensed Consolidated Statement of Operations for the three and nine months ended June 30, 2019 , have been adjusted: (Thousands) As Previously Reported Effect of Change As Adjusted Three Months Ended Statements of Operations Operation and maintenance $ 69,447 $ (951 ) $ 68,496 Total operating expenses $ 581,101 $ (951 ) $ 580,150 Operating income $ (37,666 ) $ 951 $ (36,715 ) Other income (expense), net $ 2,682 $ (951 ) $ 1,731 Nine Months Ended Statements of Operations Operation and maintenance $ 182,307 $ (2,854 ) $ 179,453 Total operating expenses $ 2,052,412 $ (2,854 ) $ 2,049,558 Operating income $ 215,371 $ 2,854 $ 218,225 Other income (expense), net $ 11,589 $ (2,854 ) $ 8,735 The changes related to the costs that will be eligible for capitalization will not have a material impact on the Company's financial position, results of operations or cash flows upon adoption. There was no additional impact to the Company's financial position, results of operations or cash flows. Stock Compensation In May 2017, the FASB issued ASU No. 2017-09, an amendment to ASC 718, Compensation - Stock Compensation , which clarifies the accounting for changes to the terms or conditions of share-based payments. The Company adopted this guidance in the first quarter of fiscal 2019, and will apply the new provisions prospectively to awards modified on or after October 1, 2018. There was no impact to the Company's financial position, results of operations or cash flows upon adoption. Intangibles In August 2018, the FASB issued ASU No. 2018-15, an amendment to ASC 350, Intangibles - Goodwill and Other , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company elected to early adopt this guidance in the second quarter of fiscal 2019, as the Company has begun work on key technology replacement and enhancement initiatives and will apply the new provisions on a prospective basis. There was no material impact to the Company's financial position, results of operations or cash flows upon adoption, however as work progresses on the Company's key technology initiatives there may be a material impact in the future. Other Recent Updates to the Accounting Standards Codification Leases In February 2016, the FASB issued ASU No. 2016-02, an amendment to ASC 842, Leases , which, along with other ASU's containing minor amendments and technical corrections, provides for a comprehensive overhaul of the lease accounting model and changes the definition of a lease within the accounting literature. Under the new standard, all leases with a term greater than one year will be recorded on the balance sheet. Amortization of the related asset will be accounted for using one of two approaches prescribed by the guidance. Additional disclosures will be required to allow the user to assess the amount, timing and uncertainty of cash flows arising from leasing activities. A modified retrospective transition approach is required for leases existing at the time of adoption. In January 2018, the FASB issued ASU No. 2018-01, a further amendment to ASC 842, Leases , which was introduced by ASU No. 2016-02, as discussed above. This update provides an optional practical expedient that allows companies to not evaluate existing or expired land easements that were not previously accounted for under Topic 840 as leases. The Company expects to elect this practical expedient upon adoption. The guidance is effective for the Company beginning October 1, 2019. In July 2018, the FASB issued ASU No. 2018-11, which provides an optional transition method to ASC 842 that allows the Company to recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to elect this transition method upon adoption. At this time, the Company does not plan to early adopt the new guidance and expects to transition on a modified retrospective basis. The Company is currently in the process of reviewing its contracts to identify all of its leases and evaluating its lease population. The Company’s operating leases primarily consist of office and land leases related to solar assets. While the Company is currently evaluating the full impact of the standard and its related updates, it expects to recognize right-of-use assets and liabilities arising from current operating leases on its statement of financial position upon adoption where the Company is the lessee, however, these amounts are not reasonably estimable at this time. The Company has no material arrangements as a lessor at this time. The Company expects to elect the package of practical expedients whereby the Company would not be required to reassess all of its leases identified, lease classifications and initial direct costs associated with leases. Additionally, the Company plans to elect to not separate nonlease components from lease components, as well as make the election to exclude short-term leases from the recognition requirements of ASC 842. The Company does not expect the amendments to the standard to have any impact on its results of operations or cash flows. Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, an amendment to ASC 326, Financial Instruments - Credit Losses , which changes the impairment model for certain financial assets that have a contractual right to receive cash, including trade and loan receivables. The new model requires recognition based upon an estimation of expected credit losses rather than recognition of losses when it is probable that they have been incurred. An entity will apply the amendment through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The guidance is effective for the Company beginning October 1, 2020, with early adoption permitted. The Company is currently evaluating the amendment and all subsequent amendments related to this topic, to understand the impact on its financial position, results of operations and cash flows upon adoption and will apply the new guidance to its trade and loan receivables on a modified retrospective basis. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, an amendment to ASC 815 , Derivatives and Hedging , which, along with other ASU's containing minor amendments and technical corrections, is intended to make targeted improvements to the accounting for hedging activities by better aligning an entity’s risk management activities and financial reporting for hedging relationships. These amendments modify the accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Additionally, the amendments are intended to simplify the application of the hedge accounting guidance and provide relief to companies by easing certain hedge documentation requirements. The guidance is effective for the Company beginning October 1, 2019, with early adoption permitted. Upon adoption, the transition requirements and elections will be applied to hedging relationships existing on the date of adoption. The Company does not currently apply hedge accounting to any of its risk management activities and thus does not expect the amendments to have any impact on its financial position, results of operations and cash flows upon adoption. In October 2018, the FASB issued ASU No. 2018-16, an amendment to ASC 815, Derivatives and Hedging , which permits the use of the Overnight Swap Index rate based on the Secured Overnight Financing Rate as an additional acceptable U.S. benchmark interest rate for hedge accounting purposes. The guidance is effective for the Company beginning October 1, 2019, with early adoption permitted. The Company does not currently apply hedge accounting to any of its risk management activities and thus does not expect the amendments to have any impact on its financial position, results of operations and cash flows upon adoption. Stock Compensation In June 2018, the FASB issued ASU No. 2018-07, an amendment to ASC 718, Compensation - Stock Compensation , which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The guidance is effective for the Company beginning October 1, 2019, with early adoption permitted. The Company is currently evaluating the impact of the amendment on the Company’s financial position, results of operations and cash flows upon adoption. Fair Value In August 2018, the FASB issued ASU No. 2018-13, an amendment to ASC 820, Fair Value Measurement , which removes, modifies and adds to certain disclosure requirements of fair value measurements. Disclosure requirements removed include the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. Modifications include considerations around the requirement to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse. The additions include the requirement to disclose changes in unrealized gains and losses for the period in other comprehensive income for recurring Level 3 fair value measurements held and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance is effective for the Company beginning October 1, 2020, with early adoption permitted. Upon adoption, the amendments will be applied on a prospective or retrospective basis depending on the specific amendments’ transition requirements. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations, cash flows and disclosures upon adoption and will apply the new guidance. Compensation - Retirement Benefits In August 2018, the FASB issued ASU No. 2018-14, an amendment to ASC 715, Compensation - Retirement Benefits , which removes disclosures that no longer are considered cost-beneficial, clarifies the specific requirements of certain disclosures and adds new disclosure requirements identified as relevant. The guidance is effective for the Company beginning October 1, 2021, with early adoption permitted. Upon adoption, the amendments will be applied on a retrospective basis. The Company is continuing to evaluate the amendment to fully understand the impact on the Company's disclosures upon adoption. |
Derivative Instruments | The Company is subject primarily 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 is exposed to foreign currency and interest rate risk, the Company may utilize foreign currency derivatives to hedge Canadian dollar denominated gas purchases and/or sales and interest rate derivatives to reduce exposure to fluctuations in interest rates. All of these types of contracts 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 Unaudited Condensed 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 6. Fair Value . Energy Services Energy Services chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS. The changes in the fair value of these derivatives are recorded as a component of gas purchases or operating revenues, as appropriate for Energy Services, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For Energy Services 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. Energy Services 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. Energy Services may utilize foreign currency derivatives to lock in the exchange rates 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 are typically used to hedge demand fee payments on pipeline capacity, storage and gas purchase agreements. As a result of Energy Services entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating 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 Unaudited Condensed Consolidated Balance Sheets, with changes in value recognized in current period earnings. Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. Energy Services recognizes changes in the fair value of these derivatives as a component of operating revenues. Upon settlement of the contract, the related revenue is recognized when the SREC is transferred to the counterparty. Natural Gas Distribution Changes in fair value of NJNG's financial commodity derivatives are recorded as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. Effective for contracts executed on or after January 1, 2016, NJNG no longer elects NPNS accounting treatment on all physical forward commodity contracts. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect certain contracts to be normal. Because NJNG recovers these amounts through future BGSS rates as increases or decreases to the cost of natural gas in NJNG’s tariff for gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. Clean Energy Ventures The Company elects NPNS accounting treatment on PPA contracts that Clean Energy Ventures enters into that meet the definition of a derivative and accounts for the contract on an accrual basis. Accordingly, electricity sales are recognized in revenues throughout the term of the PPA as electricity is delivered. NPNS is a contract-by-contract election and where it makes sense to do so, the Company can and may elect certain contracts to be normal. |
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, investments in equity 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 natural gas 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, SREC forward sales 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 the data is: • widely accepted and public; • non-proprietary and sourced from an independent third party; and • 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Gas in Storage | The following table summarizes gas in storage, at average cost by segment as of: June 30, 2019 September 30, 2018 ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf Energy Services $ 59,354 26.3 $ 90,166 34.1 Natural Gas Distribution 73,281 16.6 94,467 24.9 Total $ 132,635 42.9 $ 184,633 59.0 |
Disposal Groups, Including Discontinued Operations | The major classes of assets and liabilities included within the disposal group as held for sale were as follows: (Thousands) September 30, 2018 Assets reclassified as held for sale Assets Sold Other adjustments (1) June 30, 2019 Assets held for sale: Nonutility plant and equipment - wind equipment, at cost $ 224,356 $ — $ (224,356 ) $ — $ — Nonutility plant and equipment - accumulated depreciation, wind equipment (18,501 ) — 18,501 — — Prepaid and other current assets 789 1,747 (1,541 ) (995 ) — Other noncurrent assets 261 — (261 ) — — $ 206,905 $ 1,747 $ (207,657 ) $ (995 ) $ — Liabilities held for sale: Accounts payable and other $ 186 $ — $ (186 ) $ — $ — Asset retirement obligation 3,996 — (3,996 ) — — $ 4,182 $ — $ (4,182 ) $ — $ — (1) Activity relates to amortization of prepaid and other current assets. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the three months ended June 30, 2019 and 2018 : (Thousands) Investments in Equity Securities Postemployment Benefit Obligation Total Balance at March 31, 2019 $ — $ (15,517 ) $ (15,517 ) Other comprehensive loss (income), net of tax Amounts reclassified from accumulated other comprehensive loss, net of tax of $0, $(118), $(118) — 305 (1) 305 Balance at June 30, 2019 $ — $ (15,212 ) $ (15,212 ) Balance at March 31, 2018 $ — $ (13,788 ) $ (13,788 ) Other comprehensive (loss) income, net of tax Other comprehensive (loss),before reclassifications, net of tax of $854, $0, $854 (2,364 ) — (2,364 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(104), $(104) — 272 (1) 272 Net current-period other comprehensive (loss) income, net of tax of $854, $(104), $750 (2,364 ) 272 (2,092 ) Balance at June 30, 2018 $ (2,364 ) $ (13,516 ) $ (15,880 ) The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the nine months ended June 30, 2019 and 2018 : (Thousands) Investments in Equity Securities Postemployment Benefit Obligation Total Balance at September 30, 2018 $ 3,446 $ (16,056 ) $ (12,610 ) Other comprehensive income (loss), net of tax Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $0, $(333), $(333) — 844 (1) 844 Reclassification to retained earnings (3,446 ) (2) — (3,446 ) Balance at June 30, 2019 $ — $ (15,212 ) $ (15,212 ) Balance at September 30, 2017 $ 11,044 $ (14,300 ) $ (3,256 ) Other comprehensive (loss) income, net of tax Other comprehensive (loss),before reclassifications, net of tax of $9,071, $0, $9,071 (25,055 ) — (25,055 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $(858), $(344), $(1,202) 11,647 784 (1) 12,431 Net current-period other comprehensive (loss) income, net of tax of $8,213, $(344), $7,869 (13,408 ) 784 (12,624 ) Balance at June 30, 2018 $ (2,364 ) $ (13,516 ) $ (15,880 ) (1) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations. (2) Due to the adoption of ASU No. 2016-01, an amendment to ASC 825, Financial Instruments . See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Accordingly, the following amounts on the Unaudited Condensed Consolidated Statement of Operations for the three and nine months ended June 30, 2019 , have been adjusted: (Thousands) As Previously Reported Effect of Change As Adjusted Three Months Ended Statements of Operations Operation and maintenance $ 69,447 $ (951 ) $ 68,496 Total operating expenses $ 581,101 $ (951 ) $ 580,150 Operating income $ (37,666 ) $ 951 $ (36,715 ) Other income (expense), net $ 2,682 $ (951 ) $ 1,731 Nine Months Ended Statements of Operations Operation and maintenance $ 182,307 $ (2,854 ) $ 179,453 Total operating expenses $ 2,052,412 $ (2,854 ) $ 2,049,558 Operating income $ 215,371 $ 2,854 $ 218,225 Other income (expense), net $ 11,589 $ (2,854 ) $ 8,735 Accordingly, the following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Unaudited Condensed Consolidated Balance Sheets to the total amounts in the Unaudited Condensed Consolidated Statements of Cash Flows as follows: (Thousands) June 30, September 30, June 30, September 30, Balance Sheet Cash and cash equivalents $ 26,297 $ 1,458 $ 1,070 $ 2,226 Restricted cash in other noncurrent assets 391 252 295 243 Statements of Cash Flow Cash, cash equivalents and restricted cash in the statement of cash flows $ 26,688 $ 1,710 $ 1,365 $ 2,469 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation, recognition period | Below is a listing of performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms and the nature of the goods and services being transferred, by reporting segment and other business operations: Revenue Recognized Over Time: Segment Performance Obligation Description Natural Gas Distribution Natural gas utility sales NJNG's performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU. Revenues from the sale of natural gas are recognized in the period that gas is delivered and consumed by customers, including an estimate for quantities consumed but not billed during the period. Payment is due each month for the previous month's deliveries. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the billing period. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects and the most current tariff rates. NJNG is entitled to be compensated for performance completed until service is terminated. Customers may elect to purchase the natural gas commodity from NJNG or may contract separately to purchase natural gas directly from third-party suppliers. As NJNG is acting as an agent on behalf of the third party supplier, revenue is recorded for the delivery of natural gas to the customer. Clean Energy Ventures Commercial solar and wind electricity Clean Energy Ventures operates wholly-owned solar and formerly operated wind projects that recognize revenue as electricity is generated and transferred to the customer. The performance obligation is to provide electricity to the customer in accordance with contract terms or the interconnection agreement and is satisfied upon transfer of electricity generated. Due to the sale of our wind assets, wind electricity sales ceased in February 2019. Revenue is recognized as invoiced and the payment is due each month for the previous month's services. Clean Energy Ventures Residential solar electricity Clean Energy Ventures provides access to residential rooftop and ground-mount solar equipment to customers who then pay the Company a monthly fee. The performance obligation is to provide electricity to the customer based on generation from the underlying residential solar asset and is satisfied upon transfer of electricity generated. Revenue is derived from the contract terms and is recognized as invoiced, with the payment due each month for the previous month's services. Energy Services Wholesale natural gas services The performance obligation of Energy Services is to provide the customer transportation, storage and asset management services on an as needed basis. Energy Services generates revenue through management fees, demand charges, reservation fees and transportation charges centered around the buying and selling of the natural gas commodity, representing one series of distinct performance obligations. Revenue is recognized based upon the underlying natural gas quantities physically delivered and the customer obtaining control. Energy Services invoices customers on a monthly basis in line with the terms of the contract and based on the services provided. Payment is due each month for the previous month's invoiced services. Home Services and Other Service contracts Home Services enters into service contracts with homeowners to provide maintenance and replacement services of applicable heating, cooling or ventilation equipment. All services provided relate to a distinct performance obligation which is to provide services for the specific equipment over the term of the contract. Revenue is recognized on a straight line basis over the term of the contract and payment is due upon receipt of the invoice. Revenue Recognized at a Point in Time: Home Services and Other Installations Home Services installs appliances, including but not limited to, furnaces, air conditioning units, boilers and generators to customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. |
Disaggregation of Revenue | Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the three months ended June 30, 2019 , is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Natural gas utility sales $ 115,525 — — — $ 115,525 Wholesale natural gas services — — 3,876 — 3,876 Service contracts — — — 7,890 7,890 Installations and maintenance — — — 5,193 5,193 Electricity sales — 4,745 — — 4,745 Eliminations (1) — — — (456 ) (456 ) Revenues from contracts with customers 115,525 4,745 3,876 12,627 136,773 Alternative revenue programs 2,025 — — — 2,025 Derivative Instruments 3,232 6,705 286,145 — 296,082 Eliminations (1) — — 62 — 62 Revenues out of scope 5,257 6,705 286,207 — 298,169 Total operating revenues $ 120,782 11,450 290,083 12,627 $ 434,942 (1) Consists of transactions between subsidiaries that are eliminated in consolidation. Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the nine months ended June 30, 2019 , is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Natural gas utility sales $ 598,676 — — — $ 598,676 Wholesale natural gas services — — 26,204 — 26,204 Service contracts — — — 23,533 23,533 Installations and maintenance — — — 14,373 14,373 Electricity sales — 16,944 — — 16,944 Eliminations (1) — — — (1,653 ) (1,653 ) Revenues from contracts with customers 598,676 16,944 26,204 36,253 678,077 Alternative revenue programs 9,059 — — — 9,059 Derivative Instruments 14,432 20,763 1,398,909 — 1,434,104 Eliminations (1) — — (8,276 ) — (8,276 ) Revenues out of scope 23,491 20,763 1,390,633 — 1,434,887 Total operating revenues $ 622,167 37,707 1,416,837 36,253 $ 2,112,964 (1) Consists of transactions between subsidiaries that are eliminated in consolidation. Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended June 30, 2019 , is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Residential $ 63,984 2,304 — 12,388 $ 78,676 Commercial and industrial 37,511 2,441 3,876 239 44,067 Firm transportation 12,296 — — — 12,296 Interruptible and off-tariff 1,734 — — — 1,734 Revenues out of scope 5,257 6,705 286,207 — 298,169 Total operating revenues $ 120,782 11,450 290,083 12,627 $ 434,942 Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the nine months ended June 30, 2019 , is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Residential $ 402,192 6,627 — 35,522 $ 444,341 Commercial and industrial 139,691 10,317 26,204 731 176,943 Firm transportation 52,006 — — — 52,006 Interruptible and off-tariff 4,787 — — — 4,787 Revenues out of scope 23,491 20,763 1,390,633 — 1,434,887 Total operating revenues $ 622,167 37,707 1,416,837 36,253 $ 2,112,964 |
Expected Timing of Performance | The timing of revenue recognition, customer billings and cash collections result in accounts receivables, billed and unbilled, and customers’ credit balances and deposits on the Unaudited Condensed Consolidated Balance Sheets during the nine months ended June 30, 2019 , are as follows: Customer Accounts Receivable Customers' Credit (Thousands) Billed Unbilled Balances and Deposits Balance as of October 1, 2018 $ 205,490 $ 7,199 $ 27,325 Increase (decrease) (30,820 ) 214 (7,832 ) Balance as of June 30, 2019 $ 174,670 $ 7,413 $ 19,493 |
Performance obligation, in excess of billings | The following table provides information about receivables and revenue earned on contracts in progress in excess of billings, which are included within accounts receivable, billed and unbilled, and customers’ credit balances and deposits, respectively, on the Unaudited Condensed Consolidated Balance Sheets as of June 30, 2019 : (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Eliminations Total Customer accounts receivable Billed $ 60,852 2,942 108,372 2,504 — $ 174,670 Unbilled 7,413 — — — — 7,413 Customers' credit balances and deposits (19,490 ) — — (3 ) — (19,493 ) Total $ 48,775 2,942 108,372 2,501 — $ 162,590 |
REGULATION (Tables)
REGULATION (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Regulated Operations [Abstract] | |
Schedule of Regulator Liabilities | Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets are comprised of the following: (Thousands) June 30, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 15,252 $ 14,052 Underrecovered gas costs 9,949 4,137 Conservation Incentive Program 2,065 — Derivatives at fair value, net 5,654 108 Total current regulatory assets $ 32,920 $ 18,297 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 34,340 $ 33,017 Liability for future expenditures 125,566 130,800 Deferred income taxes 19,419 17,225 Derivatives at fair value, net 750 — SAVEGREEN 7,684 8,636 Postemployment and other benefit costs 132,605 136,716 Deferred storm damage costs 9,229 10,858 Cost of removal 49,929 22,339 Other noncurrent regulatory assets 9,247 9,001 Total noncurrent regulatory assets $ 388,769 $ 368,592 Regulatory liabilities-current Conservation Incentive Program $ — $ 6,994 Derivatives at fair value, net — 1,191 Total current regulatory liabilities $ — $ 8,185 Regulatory liabilities-noncurrent Tax Act impact (1) $ 201,664 $ 205,410 Derivatives at fair value, net — 123 New Jersey Clean Energy Program 207 1,902 Other noncurrent regulatory liabilities 1,789 1,704 Total noncurrent regulatory liabilities $ 203,660 $ 209,139 (1) Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. |
Schedule of Regulatory Assets | Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets are comprised of the following: (Thousands) June 30, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 15,252 $ 14,052 Underrecovered gas costs 9,949 4,137 Conservation Incentive Program 2,065 — Derivatives at fair value, net 5,654 108 Total current regulatory assets $ 32,920 $ 18,297 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 34,340 $ 33,017 Liability for future expenditures 125,566 130,800 Deferred income taxes 19,419 17,225 Derivatives at fair value, net 750 — SAVEGREEN 7,684 8,636 Postemployment and other benefit costs 132,605 136,716 Deferred storm damage costs 9,229 10,858 Cost of removal 49,929 22,339 Other noncurrent regulatory assets 9,247 9,001 Total noncurrent regulatory assets $ 388,769 $ 368,592 Regulatory liabilities-current Conservation Incentive Program $ — $ 6,994 Derivatives at fair value, net — 1,191 Total current regulatory liabilities $ — $ 8,185 Regulatory liabilities-noncurrent Tax Act impact (1) $ 201,664 $ 205,410 Derivatives at fair value, net — 123 New Jersey Clean Energy Program 207 1,902 Other noncurrent regulatory liabilities 1,789 1,704 Total noncurrent regulatory liabilities $ 203,660 $ 209,139 (1) Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
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 Unaudited Condensed Consolidated Balance Sheets as of: Fair Value June 30, 2019 September 30, 2018 (Thousands) Balance Sheet Location Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Natural Gas Distribution: Physical commodity contracts Derivatives - current $ 55 $ 62 $ 85 $ 192 Financial commodity contracts Derivatives - current 216 19 94 — Energy Services: Physical commodity contracts Derivatives - current 7,874 17,988 7,667 18,158 Derivatives - noncurrent 3,126 19,068 3,930 11,316 Financial commodity contracts Derivatives - current 20,162 22,425 19,169 28,176 Derivatives - noncurrent 11,350 5,774 6,630 11,548 Foreign currency contracts Derivatives - current 10 183 — 126 Derivatives - noncurrent — 81 — 118 Home Services and Other: Interest rate contracts Derivatives - current 20 — 381 — Total fair value of derivatives $ 42,813 $ 65,600 $ 37,956 $ 69,634 |
Offsetting Assets | The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral, as well as the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented on Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of June 30, 2019: Derivative assets: Energy Services Physical commodity contracts $ 11,000 $ (4,187 ) $ (200 ) $ 6,613 Financial commodity contracts 31,512 (26,906 ) (614 ) 3,992 Foreign currency contracts 10 (10 ) — — Total Energy Services $ 42,522 $ (31,103 ) $ (814 ) $ 10,605 Natural Gas Distribution Physical commodity contracts $ 55 $ — $ — $ 55 Financial commodity contracts 216 (19 ) — 197 Total Natural Gas Distribution $ 271 $ (19 ) $ — $ 252 Home Services and Other Interest rate contracts $ 20 $ — $ — $ 20 Total Home Services and Other $ 20 $ — $ — $ 20 Derivative liabilities: Energy Services Physical commodity contracts $ 37,056 $ (4,187 ) $ — $ 32,869 Financial commodity contracts 28,199 (26,906 ) (654 ) 639 Foreign currency contracts 264 (10 ) — 254 Total Energy Services $ 65,519 $ (31,103 ) $ (654 ) $ 33,762 Natural Gas Distribution Physical commodity contracts $ 62 $ — $ — $ 62 Financial commodity contracts 19 (19 ) — — Total Natural Gas Distribution $ 81 $ (19 ) $ — $ 62 As of September 30, 2018: Derivative assets: Energy Services Physical commodity contracts $ 11,597 $ (3,944 ) $ (200 ) $ 7,453 Financial commodity contracts 25,799 (18,775 ) — 7,024 Total Energy Services $ 37,396 $ (22,719 ) $ (200 ) $ 14,477 Natural Gas Distribution Physical commodity contracts $ 85 $ (3 ) $ — $ 82 Financial commodity contracts 94 — (94 ) — Total Natural Gas Distribution $ 179 $ (3 ) $ (94 ) $ 82 Home Services and Other Interest rate contracts $ 381 $ — $ — $ 381 Total Home Services and Other $ 381 $ — $ — $ 381 Derivative liabilities: Energy Services Physical commodity contracts $ 29,474 $ (3,944 ) $ — $ 25,530 Financial commodity contracts 39,724 (18,775 ) (20,949 ) — Foreign currency contracts 244 — — 244 Total Energy Services $ 69,442 $ (22,719 ) $ (20,949 ) $ 25,774 Natural Gas Distribution Physical commodity contracts $ 192 $ (3 ) $ — $ 189 Total Natural Gas Distribution $ 192 $ (3 ) $ — $ 189 (1) Derivative assets and liabilities are presented on a gross basis on the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Includes 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 the Company has the right to offset but elects not to, financial collateral, as well as the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented on Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of June 30, 2019: Derivative assets: Energy Services Physical commodity contracts $ 11,000 $ (4,187 ) $ (200 ) $ 6,613 Financial commodity contracts 31,512 (26,906 ) (614 ) 3,992 Foreign currency contracts 10 (10 ) — — Total Energy Services $ 42,522 $ (31,103 ) $ (814 ) $ 10,605 Natural Gas Distribution Physical commodity contracts $ 55 $ — $ — $ 55 Financial commodity contracts 216 (19 ) — 197 Total Natural Gas Distribution $ 271 $ (19 ) $ — $ 252 Home Services and Other Interest rate contracts $ 20 $ — $ — $ 20 Total Home Services and Other $ 20 $ — $ — $ 20 Derivative liabilities: Energy Services Physical commodity contracts $ 37,056 $ (4,187 ) $ — $ 32,869 Financial commodity contracts 28,199 (26,906 ) (654 ) 639 Foreign currency contracts 264 (10 ) — 254 Total Energy Services $ 65,519 $ (31,103 ) $ (654 ) $ 33,762 Natural Gas Distribution Physical commodity contracts $ 62 $ — $ — $ 62 Financial commodity contracts 19 (19 ) — — Total Natural Gas Distribution $ 81 $ (19 ) $ — $ 62 As of September 30, 2018: Derivative assets: Energy Services Physical commodity contracts $ 11,597 $ (3,944 ) $ (200 ) $ 7,453 Financial commodity contracts 25,799 (18,775 ) — 7,024 Total Energy Services $ 37,396 $ (22,719 ) $ (200 ) $ 14,477 Natural Gas Distribution Physical commodity contracts $ 85 $ (3 ) $ — $ 82 Financial commodity contracts 94 — (94 ) — Total Natural Gas Distribution $ 179 $ (3 ) $ (94 ) $ 82 Home Services and Other Interest rate contracts $ 381 $ — $ — $ 381 Total Home Services and Other $ 381 $ — $ — $ 381 Derivative liabilities: Energy Services Physical commodity contracts $ 29,474 $ (3,944 ) $ — $ 25,530 Financial commodity contracts 39,724 (18,775 ) (20,949 ) — Foreign currency contracts 244 — — 244 Total Energy Services $ 69,442 $ (22,719 ) $ (20,949 ) $ 25,774 Natural Gas Distribution Physical commodity contracts $ 192 $ (3 ) $ — $ 189 Total Natural Gas Distribution $ 192 $ (3 ) $ — $ 189 (1) Derivative assets and liabilities are presented on a gross basis on the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Includes 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 Consolidated Statements of Operations | The following table reflects the effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations as of: (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized in income on derivatives Three Months Ended Nine Months Ended June 30, June 30, Derivatives not designated as hedging instruments: 2019 2018 2019 2018 Energy Services: Physical commodity contracts Operating revenues $ 1,435 $ 3,046 $ 74 $ (7,696 ) Physical commodity contracts Gas purchases 2,392 1,008 266 (66,335 ) Financial commodity contracts Gas purchases 22,919 (6,777 ) 17,732 (19,007 ) Foreign currency contracts Gas purchases 37 (194 ) (188 ) (457 ) Home Services and Other: Interest rate contracts Interest expense (43 ) 165 (228 ) 286 Total unrealized and realized gains (losses) $ 26,740 $ (2,752 ) $ 17,656 $ (93,209 ) |
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI | The following table reflects the (losses) gains associated with NJNG's derivative instruments as of: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2019 2018 2019 2018 Natural Gas Distribution: Physical commodity contracts $ 812 $ (178 ) $ 5,225 $ (16,033 ) Financial commodity contracts (10,368 ) 3,306 (7,129 ) 1,730 Interest rate contracts — — — 8,467 Total unrealized and realized (losses) gains $ (9,556 ) $ 3,128 $ (1,904 ) $ (5,836 ) |
Schedule of Outstanding Long (Short) Derivatives | NJNG and Energy Services had the following outstanding long (short) derivatives as of: Volume (Bcf) June 30, September 30, Natural Gas Distribution Futures 28.7 27.9 Physical 14.6 23.1 Energy Services Futures (26.9 ) (7.0 ) Physical 17.0 51.2 Swaps (6.2 ) (17.3 ) |
Schedule of Broker Margin Accounts by Company | The balances are as follows: (Thousands) Balance Sheet Location June 30, September 30, Natural Gas Distribution Restricted broker margin accounts $ 1,460 $ 2,038 Energy Services Restricted broker margin accounts $ 43,367 $ 51,681 |
Summary of Gross Credit Exposures | The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of June 30, 2019 . 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 and Clean Energy Ventures residential solar installations. (Thousands) Gross Credit Exposure Investment grade $ 127,602 Noninvestment grade 19,542 Internally rated investment grade 18,415 Internally rated noninvestment grade 32,296 Total $ 197,855 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The estimated fair value of long-term debt at NJNG and NJR, including current maturities, excluding capital leases, debt issuance costs and solar asset financing obligations, is as follows: (Thousands) June 30, September 30, Carrying value (1) (2) (3) $ 1,207,845 $ 1,172,045 Fair market value $ 1,276,912 $ 1,158,051 (1) Excludes capital leases of $38.6 million and $35.9 million as of June 30, 2019 and September 30, 2018 , respectively. (2) Excludes NJNG's debt issuance costs of $7.7 million and $6.5 million as of June 30, 2019 and September 30, 2018 , respectively. (3) Excludes NJR's debt issuance costs of $1 million and $1.1 million as of June 30, 2019 and September 30, 2018 , respectively. |
Schedule of Fair Value Assets and Liabilities Measured 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 June 30, 2019: Assets: Physical commodity contracts $ — $ 11,055 $ — $ 11,055 Financial commodity contracts 27,122 4,606 — 31,728 Financial commodity contracts - foreign exchange — 10 — 10 Interest rate contracts — 20 — 20 Money market funds 21,513 — — 21,513 Other 1,681 — — 1,681 Total assets at fair value $ 50,316 $ 15,691 $ — $ 66,007 Liabilities: Physical commodity contracts $ — $ 37,118 $ — $ 37,118 Financial commodity contracts 28,193 25 — 28,218 Financial commodity contracts - foreign exchange — 264 — 264 Total liabilities at fair value $ 28,193 $ 37,407 $ — $ 65,600 As of September 30, 2018: Assets: Physical commodity contracts $ — $ 11,682 $ — $ 11,682 Financial commodity contracts 18,868 7,025 — 25,893 Interest rate contracts — 381 — 381 Investments in equity securities 32,917 — — 32,917 Other (1) 1,217 — — 1,217 Total assets at fair value $ 53,002 $ 19,088 $ — $ 72,090 Liabilities: Physical commodity contracts $ — $ 29,666 $ — $ 29,666 Financial commodity contracts 39,724 — — 39,724 Financial commodity contracts - foreign exchange — 244 — 244 Total liabilities at fair value $ 39,724 $ 29,910 $ — $ 69,634 (1) Includes money market funds. |
INVESTMENTS IN EQUITY INVESTE_2
INVESTMENTS IN EQUITY INVESTEES (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Investments, All Other Investments [Abstract] | |
Schedule of Equity Method Investments | NJR's investments in equity method investees include the following as of: (Thousands) June 30, September 30, Steckman Ridge (1) $ 115,419 $ 117,001 PennEast 82,241 73,865 Total $ 197,660 $ 190,866 (1) Includes loans with a total outstanding principal balance of $70.4 million for both June 30, 2019 and September 30, 2018 . The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2023. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | The following table presents the calculation of the Company's basic and diluted earnings per share for: Three Months Ended Nine Months Ended June 30, June 30, (Thousands, except per share amounts) 2019 2018 2019 2018 Net (loss) income, as reported $ (8,402 ) $ (14,274 ) $ 151,419 $ 249,691 Basic (loss) earnings per share Weighted average shares of common stock outstanding-basic 89,600 87,888 88,995 87,493 Basic (loss) earnings per common share $(0.09) $(0.16) $1.70 $2.85 Diluted earnings per share Weighted average shares of common stock outstanding-basic 89,600 87,888 88,995 87,493 Incremental shares (1) — — 407 391 Weighted average shares of common stock outstanding-diluted 89,600 87,888 89,402 87,884 Diluted (loss) earnings per common share (2) $(0.09) $(0.16) $1.69 $2.84 (1) Incremental shares consist primarily of unvested stock awards and performance shares. (2) Since there was a net loss for the three months ended June 30, 2019 and 2018 , incremental shares of 409,000 and 402,000 , respectively, were not included in the computation of diluted loss per common share, as their effect would have been anti-dilutive. There were no anti-dilutive shares excluded from the calculation of diluted earnings per share during the nine months ended June 30, 2019 and 2018 . |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | A summary of NJR's credit facility and NJNG's commercial paper program and credit facility are as follows: (Thousands) June 30, September 30, Expiration Dates NJR Bank revolving credit facilities (1) $ 425,000 $ 425,000 December 2023 Notes outstanding at end of period $ — $ 87,950 Weighted average interest rate at end of period — % 3.07 % Amount available at end of period (2) $ 420,775 $ 322,144 NJNG Bank revolving credit facilities (1) $ 250,000 $ 250,000 December 2023 Commercial paper outstanding at end of period $ 99,300 $ 64,000 Weighted average interest rate at end of period 2.62 % 2.18 % Amount available at end of period (3) $ 149,969 $ 185,269 (1) Committed credit facilities, which require commitment fees on the unused amounts. (2) Letters of credit outstanding total $4.2 million and $14.9 million for June 30, 2019 and September 30, 2018 , respectively, which reduces amount available by the same amount. (3) Letters of credit outstanding total $731,000 for both June 30, 2019 and September 30, 2018 , which reduces the amount available by the same amount. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of the net periodic cost for pension benefits, including the Company's Pension Equalization Plan, and OPEB costs (principally health care and life insurance) for employees and covered dependents were as follows: Pension OPEB Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended June 30, June 30, June 30, June 30, (Thousands) 2019 2018 2019 2018 2019 2018 2019 2018 Service cost $ 1,845 $ 2,035 $ 5,536 $ 6,104 $ 1,101 $ 1,152 $ 3,303 $ 3,455 Interest cost 3,043 2,623 9,129 7,870 2,081 1,591 6,243 4,773 Expected return on plan assets (4,763 ) (4,910 ) (14,290 ) (14,729 ) (1,379 ) (1,338 ) (4,137 ) (4,014 ) Recognized actuarial loss 1,442 1,884 4,324 5,653 1,617 1,165 4,850 3,495 Prior service cost amortization 25 27 76 80 (91 ) (91 ) (273 ) (273 ) Net periodic benefit cost $ 1,592 $ 1,659 $ 4,775 $ 4,978 $ 3,329 $ 2,479 $ 9,986 $ 7,436 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule Of The Reserve For Uncertain Tax Benefits | The reserve for uncertain tax benefits are as follows: Nine Months Ended June 30, (Thousands) 2019 Balance at October 1, $ — Additions based on tax positions related to the current fiscal period 3,415 Balance at period end $ 3,415 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | Commitments as of June 30, 2019 , for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2019 2020 2021 2022 2023 Thereafter Energy Services: Natural gas purchases $ 226,513 $ 26,521 $ — $ — $ — $ — Storage demand fees 28,237 17,298 11,716 8,735 2,280 1,032 Pipeline demand fees 73,968 61,582 42,351 26,872 8,042 1,057 Sub-total Energy Services $ 328,718 $ 105,401 $ 54,067 $ 35,607 $ 10,322 $ 2,089 NJNG: Natural gas purchases $ 51,763 $ 33,269 $ 33,607 $ 34,142 $ 36,155 $ 8,889 Storage demand fees 35,988 27,025 16,383 11,680 3,112 4,441 Pipeline demand fees 95,216 107,586 94,441 89,827 70,311 567,727 Sub-total NJNG $ 182,967 $ 167,880 $ 144,431 $ 135,649 $ 109,578 $ 581,057 Total $ 511,685 $ 273,281 $ 198,498 $ 171,256 $ 119,900 $ 583,146 |
REPORTING SEGMENT AND OTHER O_2
REPORTING SEGMENT AND OTHER OPERATIONS DATA (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information related to the Company's various reporting segments and other operations is detailed below: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2019 2018 2019 2018 Operating revenues Natural Gas Distribution External customers $ 120,782 $ 104,538 $ 622,167 $ 631,389 Clean Energy Ventures External customers 11,450 15,348 37,707 42,210 Energy Services External customers (1) 290,083 409,417 1,416,837 1,563,063 Intercompany (62 ) (12 ) 8,276 49,636 Subtotal 422,253 529,291 2,084,987 2,286,298 Home Services and Other External customers 12,627 14,132 36,253 31,121 Intercompany 455 627 1,652 1,856 Eliminations (393 ) (615 ) (9,928 ) (51,492 ) Total $ 434,942 $ 543,435 $ 2,112,964 $ 2,267,783 Depreciation and amortization Natural Gas Distribution $ 14,689 $ 13,473 $ 42,557 $ 39,609 Clean Energy Ventures 8,239 6,702 24,253 24,565 Energy Services (2) 23 21 75 50 Midstream 1 1 4 4 Subtotal 22,952 20,197 66,889 64,228 Home Services and Other 230 193 673 570 Eliminations (33 ) (70 ) (270 ) (164 ) Total $ 23,149 $ 20,320 $ 67,292 $ 64,634 Interest income (3) Natural Gas Distribution $ 187 $ 202 $ 567 $ 452 Energy Services 26 134 40 240 Midstream 1,088 945 3,089 2,380 Subtotal 1,301 1,281 3,696 3,072 Home Services and Other 515 340 1,620 898 Eliminations (1,320 ) (1,419 ) (4,202 ) (3,518 ) Total $ 496 $ 202 $ 1,114 $ 452 (1) Includes sales to Canada, which are immaterial. (2) The amortization of acquired wholesale energy contracts is excluded above and is included in gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations. (3) Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2019 2018 2019 2018 Interest expense, net of capitalized interest Natural Gas Distribution $ 6,301 $ 6,226 $ 18,166 $ 19,285 Clean Energy Ventures 4,320 4,708 14,405 13,260 Energy Services 766 581 4,277 3,041 Midstream 522 471 1,630 1,165 Subtotal 11,909 11,986 38,478 36,751 Home Services and Other 407 (129 ) 1,410 (18 ) Eliminations (668 ) (820 ) (2,245 ) (1,993 ) Total $ 11,648 $ 11,037 $ 37,643 $ 34,740 Income tax (benefit) provision Natural Gas Distribution $ (1,391 ) $ (25,314 ) $ 16,705 $ 4,381 Clean Energy Ventures (1,787 ) (565 ) (39,033 ) (87,275 ) Energy Services (1,193 ) (4,786 ) 7,063 32,922 Midstream 729 989 2,910 (8,723 ) Subtotal (3,642 ) (29,676 ) (12,355 ) (58,695 ) Home Services and Other 1,705 1,122 854 11,539 Eliminations (4 ) 20 (353 ) (645 ) Total $ (1,941 ) $ (28,534 ) $ (11,854 ) $ (47,801 ) Equity in earnings of affiliates Midstream $ 4,167 $ 3,907 $ 11,966 $ 12,104 Eliminations (672 ) (694 ) (1,939 ) (2,434 ) Total $ 3,495 $ 3,213 $ 10,027 $ 9,670 Net financial (loss) earnings Natural Gas Distribution $ (3,795 ) $ 2,440 $ 96,464 $ 96,991 Clean Energy Ventures (7,138 ) (829 ) 24,797 80,472 Energy Services (14,030 ) (15,079 ) 13,644 78,027 Midstream 3,052 3,489 11,201 22,315 Subtotal (21,911 ) (9,979 ) 146,106 277,805 Home Services and Other 4,437 1,993 2,932 (8,211 ) Eliminations (32 ) (17 ) (34 ) (202 ) Total $ (17,506 ) $ (8,003 ) $ 149,004 $ 269,392 Capital expenditures Natural Gas Distribution $ 100,473 $ 70,623 $ 239,569 $ 173,410 Clean Energy Ventures 38,813 29,424 91,333 88,416 Midstream 6,406 975 11,290 3,579 Subtotal 145,692 101,022 342,192 265,405 Home Services and Other 924 745 1,826 1,300 Total $ 146,616 $ 101,767 $ 344,018 $ 266,705 Investments in equity investees Midstream $ 1,239 $ 3,319 $ 2,696 $ 14,496 Total $ 1,239 $ 3,319 $ 2,696 $ 14,496 |
Reconciliation of Consolidated NFE to Consolidated Net Income | A reconciliation of consolidated NFE to consolidated net income is as follows: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2019 2018 2019 2018 Net financial (loss) earnings (1) $ (17,506 ) $ (8,003 ) $ 149,004 $ 269,392 Less: Unrealized (gain) loss on derivative instruments and related transactions (24,646 ) 2,657 (25,353 ) 25,904 Tax effect 5,885 (577 ) 6,034 (3,920 ) Effects of economic hedging related to natural gas inventory 11,317 4,474 12,073 (14,788 ) Tax effect (2,689 ) (1,011 ) (2,869 ) 5,518 NFE tax adjustment 1,029 728 7,700 6,987 Net (loss) income (1) $ (8,402 ) $ (14,274 ) $ 151,419 $ 249,691 (1) Includes income tax benefit related to the Tax Act of $844,000 and $57.7 million , for the three and nine months ended June 30, 2018 , respectively. |
Reconciliation of Assets from Segment to Consolidated | The Company's assets for the various business segments and business operations are detailed below: (Thousands) June 30, September 30, Assets at end of period: Natural Gas Distribution $ 2,867,528 $ 2,663,054 Clean Energy Ventures (1) 703,866 865,018 Energy Services 285,970 396,852 Midstream 229,099 242,069 Subtotal 4,086,463 4,166,993 Home Services and Other 129,882 114,732 Intercompany assets (2) (92,933 ) (138,061 ) Total $ 4,123,412 $ 4,143,664 (1) Includes assets held for sale of $206.9 million for September 30, 2018 . (2) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule Of Demand Fees And Demand Fees Payable | Demand fees, net of eliminations, associated with Steckman Ridge were as follows: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2019 2018 2019 2018 Natural Gas Distribution $ 1,431 $ 1,451 $ 4,349 $ 4,306 Energy Services 695 705 2,106 2,086 Total $ 2,126 $ 2,156 $ 6,455 $ 6,392 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) June 30, September 30, Natural Gas Distribution $ 775 $ 775 Energy Services 375 375 Total $ 1,150 $ 1,150 |
NATURE OF THE BUSINESS (Details
NATURE OF THE BUSINESS (Details) | 9 Months Ended |
Jun. 30, 2019subsidiarycustomer | |
Steckman Ridge | |
Nature of Business [Line Items] | |
Ownership percentage | 50.00% |
PennEast | |
Nature of Business [Line Items] | |
Ownership percentage | 20.00% |
Natural Gas Distribution | |
Nature of Business [Line Items] | |
Total retail customers | customer | 546,500 |
NJR Retail Holdings Corporation | |
Nature of Business [Line Items] | |
Number of principal subsidiaries | subsidiary | 2 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - GAS IN STORAGE (Details) $ in Thousands | Jun. 30, 2019USD ($)Bcf | Sep. 30, 2018USD ($)Bcf |
Inventory [Line Items] | ||
Gas in Storage, value | $ | $ 132,635 | $ 184,633 |
Gas in Storage, Bcf | Bcf | 42.9 | 59 |
Energy Services | ||
Inventory [Line Items] | ||
Gas in Storage, value | $ | $ 59,354 | $ 90,166 |
Gas in Storage, Bcf | Bcf | 26.3 | 34.1 |
Natural Gas Distribution | ||
Inventory [Line Items] | ||
Gas in Storage, value | $ | $ 73,281 | $ 94,467 |
Gas in Storage, Bcf | Bcf | 16.6 | 24.9 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INVESTMENTS IN EQUTIY SECURITIES (Details) shares in Thousands, $ in Thousands | Mar. 06, 2019USD ($) | Jan. 28, 2019shares | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||
Investments in equity securities | $ 32,900 | ||||
Debt conversion ratio | 0.2492 | ||||
Proceeds from sale of investments in equity securities, net | $ 34,500 | $ 34,484 | $ 6,616 | ||
Pre-tax again investments in equity securities | $ 1,600 | ||||
Common Units | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Other ownership interests, units issued (in units) | shares | 1,840 | ||||
Dominion Shares | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Other ownership interests, units issued (in units) | shares | 458 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - LOAN RECEIVABLE (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2019 | Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable in other current assets | $ 11.8 | $ 10.4 |
Loans receivable in other noncurrent assets | $ 38.5 | $ 39.5 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, term | 3 years | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, term | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SOFTWARE COSTS (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operation and maintenance | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Capitalized software costs | $ 3.7 |
Other noncurrent assets | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Capitalized software costs | $ 1.7 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 | |
Assets Held For Sale Activity [Roll Forward] | |||
Liabilities held for sale: | $ 0 | $ 4,182 | |
Clean Energy Ventures | |||
Assets Held For Sale Activity [Roll Forward] | |||
Nonutility plant and equipment - wind equipment, at cost | 0 | 224,356 | |
Nonutility plant and equipment - accumulated depreciation, wind equipment | 0 | (18,501) | |
Prepaid and other current assets | 0 | 789 | |
Other noncurrent assets | 0 | 261 | |
Assets held for sale: | 0 | 206,905 | |
Accounts payable and other | 0 | 186 | |
Asset retirement obligation | 0 | 3,996 | |
Liabilities held for sale: | 0 | $ 4,182 | |
Held-for-sale | Clean Energy Ventures | |||
Assets Held For Sale Activity [Roll Forward] | |||
Nonutility plant and equipment - wind equipment, at cost | 0 | ||
Nonutility plant and equipment - accumulated depreciation, wind equipment | 0 | ||
Prepaid and other current assets | 1,747 | ||
Other noncurrent assets | 0 | ||
Assets held for sale: | 1,747 | ||
Accounts payable and other | 0 | ||
Asset retirement obligation | 0 | ||
Liabilities held for sale: | 0 | ||
Assets sold | Clean Energy Ventures | |||
Assets Held For Sale Activity [Roll Forward] | |||
Nonutility plant and equipment - wind equipment, at cost | (224,356) | ||
Nonutility plant and equipment - accumulated depreciation, wind equipment | 18,501 | ||
Prepaid and other current assets | (1,541) | ||
Other noncurrent assets | (261) | ||
Assets held for sale: | (207,657) | ||
Accounts payable and other | (186) | ||
Asset retirement obligation | (3,996) | ||
Liabilities held for sale: | (4,182) | ||
Other adjustments | Clean Energy Ventures | |||
Assets Held For Sale Activity [Roll Forward] | |||
Nonutility plant and equipment - wind equipment, at cost | 0 | ||
Nonutility plant and equipment - accumulated depreciation, wind equipment | 0 | ||
Prepaid and other current assets | (995) | ||
Other noncurrent assets | 0 | ||
Assets held for sale: | [1] | (995) | |
Accounts payable and other | 0 | ||
Asset retirement obligation | 0 | ||
Liabilities held for sale: | [1] | $ 0 | |
[1] | Activity relates to amortization of prepaid and other current assets. |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Oct. 01, 2018 | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Balance as of beginning of period | $ 1,569,162 | $ 1,467,374 | $ 1,418,978 | $ 1,236,643 | ||
Balance as of end of period | 1,572,197 | 1,449,962 | 1,572,197 | 1,449,962 | ||
Investments in Equity Securities | ||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Balance as of beginning of period | 0 | 0 | 3,446 | 11,044 | ||
Other comprehensive (loss), before reclassifications, net of tax | (2,364) | (25,055) | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | 0 | 11,647 | ||
Net current-period other comprehensive income, net of tax | (2,364) | (13,408) | ||||
Reclassification to retained earnings | [1] | $ (3,446) | ||||
Balance as of end of period | 0 | (2,364) | 0 | (2,364) | ||
Tax on other comprehensive income (loss) before reclassifications | 854 | 9,071 | ||||
Tax on amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | (858) | ||
Tax on net current-period other comprehensive income (loss) | 854 | 8,213 | ||||
Postemployment Benefit Obligation | ||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Balance as of beginning of period | (15,517) | (13,788) | (16,056) | (14,300) | ||
Other comprehensive (loss), before reclassifications, net of tax | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax | [2] | 305 | 272 | 844 | 784 | |
Net current-period other comprehensive income, net of tax | 272 | 784 | ||||
Reclassification to retained earnings | 0 | |||||
Balance as of end of period | (15,212) | (13,516) | (15,212) | (13,516) | ||
Tax on other comprehensive income (loss) before reclassifications | 0 | 0 | ||||
Tax on amounts reclassified from accumulated other comprehensive income | (118) | (104) | (333) | (344) | ||
Tax on net current-period other comprehensive income (loss) | (104) | (344) | ||||
Total | ||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Balance as of beginning of period | (15,517) | (13,788) | (12,610) | (3,256) | ||
Other comprehensive (loss), before reclassifications, net of tax | (2,364) | (25,055) | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax | 305 | 272 | 844 | 12,431 | ||
Net current-period other comprehensive income, net of tax | (2,092) | (12,624) | ||||
Reclassification to retained earnings | $ (3,446) | |||||
Balance as of end of period | (15,212) | (15,880) | (15,212) | (15,880) | ||
Tax on other comprehensive income (loss) before reclassifications | 854 | 9,071 | ||||
Tax on amounts reclassified from accumulated other comprehensive income | $ (118) | (104) | $ (333) | (1,202) | ||
Tax on net current-period other comprehensive income (loss) | $ 750 | $ 7,869 | ||||
[1] | Due to the adoption of ASU No. 2016-01, an amendment to ASC 825, Financial Instruments . See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. | |||||
[2] | Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations. |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCOUNTING STANDARDS UPDATE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Oct. 01, 2018 | Sep. 30, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Revenues from contracts with customers | $ 136,773 | $ 678,077 | ||||
Sales tax | 6,600 | 40,900 | ||||
Accumulated other comprehensive income (loss) | $ (15,212) | (15,212) | $ (12,610) | |||
Accounting Standards Update 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification to retained earnings | [1] | $ 2,736 | ||||
Accounting Standards Update 2017-05 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification to retained earnings | [1] | (4,970) | ||||
Deferred gain, unamortized balance | (6,800) | |||||
Home Services and Other | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification to retained earnings | (3,800) | |||||
Revenues from contracts with customers | $ 13,100 | 37,900 | ||||
Revenues | $ 14,900 | $ 33,700 | ||||
Retained Earnings | Accounting Standards Update 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification to retained earnings | [1] | 2,736 | ||||
Retained Earnings | Accounting Standards Update 2017-05 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification to retained earnings | [1] | (4,970) | ||||
Retained Earnings | Home Services and Other | Accounting Standards Update 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification to retained earnings | (2,700) | |||||
Investments in Equity Securities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification to retained earnings | [2] | 3,446 | ||||
Accumulated other comprehensive income (loss) | $ 4,700 | |||||
[1] | See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. | |||||
[2] | Due to the adoption of ASU No. 2016-01, an amendment to ASC 825, Financial Instruments . See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCOUNTING STANDARDS UPDATE - RESTRICTED CASH (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 26,297 | $ 1,458 | $ 1,070 | $ 2,226 |
Restricted cash in other noncurrent assets | 391 | 252 | 295 | 243 |
Cash, cash equivalents and restricted cash in the statement of cash flows | $ 26,688 | $ 1,710 | $ 1,365 | $ 2,469 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCOUNTING STANDARDS UPDATE - COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operation and maintenance | $ 62,559 | $ 68,496 | $ 185,620 | $ 179,453 |
Total operating expenses | 438,961 | 580,150 | 1,951,239 | 2,049,558 |
Operating income | (4,019) | (36,715) | 161,725 | 218,225 |
Other income (expense), net | 1,829 | $ 1,731 | 5,456 | $ 8,735 |
Accounting Standards Update 2017-07 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operation and maintenance | 68,496 | 179,453 | ||
Total operating expenses | 580,150 | 2,049,558 | ||
Operating income | (36,715) | 218,225 | ||
Other income (expense), net | 1,731 | 8,735 | ||
Accounting Standards Update 2017-07 | As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operation and maintenance | 69,447 | 182,307 | ||
Total operating expenses | 581,101 | 2,052,412 | ||
Operating income | (37,666) | 215,371 | ||
Other income (expense), net | 2,682 | 11,589 | ||
Accounting Standards Update 2017-07 | Effect of Change | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operation and maintenance | (951) | (2,854) | ||
Total operating expenses | (951) | (2,854) | ||
Operating income | 951 | 2,854 | ||
Other income (expense), net | $ (951) | $ (2,854) |
REVENUE - DISAGGREGATED REVENUE
REVENUE - DISAGGREGATED REVENUE - PRODUCT (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | $ 136,773 | $ 678,077 | |||
Alternative revenue programs | 2,025 | 9,059 | |||
Derivative Instruments | 296,082 | 1,434,104 | |||
Revenues out of scope | 298,169 | 1,434,887 | |||
Total operating revenues | 434,942 | $ 543,435 | 2,112,964 | $ 2,267,783 | |
Natural gas utility sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 115,525 | 598,676 | |||
Wholesale natural gas services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 3,876 | 26,204 | |||
Service contracts | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 7,890 | 23,533 | |||
Installations and maintenance | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 5,193 | 14,373 | |||
Electricity sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 4,745 | 16,944 | |||
Operating Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total operating revenues | 422,253 | 529,291 | 2,084,987 | $ 2,286,298 | |
Home Services and Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | $ 13,100 | 37,900 | |||
Eliminations | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | [1] | (456) | (1,653) | ||
Revenues out of scope | [1] | 62 | (8,276) | ||
Regulated | Operating Segments | Natural Gas Distribution | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 115,525 | 598,676 | |||
Alternative revenue programs | 2,025 | 9,059 | |||
Derivative Instruments | 3,232 | 14,432 | |||
Revenues out of scope | 5,257 | 23,491 | |||
Total operating revenues | 120,782 | 622,167 | |||
Regulated | Operating Segments | Natural gas utility sales | Natural Gas Distribution | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 115,525 | 598,676 | |||
Regulated | Operating Segments | Wholesale natural gas services | Natural Gas Distribution | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Regulated | Operating Segments | Service contracts | Natural Gas Distribution | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Regulated | Operating Segments | Installations and maintenance | Natural Gas Distribution | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Regulated | Operating Segments | Electricity sales | Natural Gas Distribution | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Regulated | Eliminations | Natural Gas Distribution | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues out of scope | [1] | 0 | 0 | ||
Unregulated | Operating Segments | Clean Energy Ventures | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 4,745 | 16,944 | |||
Alternative revenue programs | 0 | 0 | |||
Derivative Instruments | 6,705 | 20,763 | |||
Revenues out of scope | 6,705 | 20,763 | |||
Total operating revenues | 11,450 | 37,707 | |||
Unregulated | Operating Segments | Energy Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 3,876 | 26,204 | |||
Alternative revenue programs | 0 | 0 | |||
Derivative Instruments | 286,145 | 1,398,909 | |||
Revenues out of scope | 286,207 | 1,390,633 | |||
Total operating revenues | 290,083 | 1,416,837 | |||
Unregulated | Operating Segments | Natural gas utility sales | Clean Energy Ventures | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Unregulated | Operating Segments | Natural gas utility sales | Energy Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Unregulated | Operating Segments | Wholesale natural gas services | Clean Energy Ventures | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Unregulated | Operating Segments | Wholesale natural gas services | Energy Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 3,876 | 26,204 | |||
Unregulated | Operating Segments | Service contracts | Clean Energy Ventures | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Unregulated | Operating Segments | Service contracts | Energy Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Unregulated | Operating Segments | Installations and maintenance | Clean Energy Ventures | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Unregulated | Operating Segments | Installations and maintenance | Energy Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Unregulated | Operating Segments | Electricity sales | Clean Energy Ventures | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 4,745 | 16,944 | |||
Unregulated | Operating Segments | Electricity sales | Energy Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Unregulated | Home Services and Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 12,627 | 36,253 | |||
Alternative revenue programs | 0 | 0 | |||
Derivative Instruments | 0 | 0 | |||
Revenues out of scope | 0 | 0 | |||
Total operating revenues | 12,627 | 36,253 | |||
Unregulated | Home Services and Other | Natural gas utility sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Unregulated | Home Services and Other | Wholesale natural gas services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Unregulated | Home Services and Other | Service contracts | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 7,890 | 23,533 | |||
Unregulated | Home Services and Other | Installations and maintenance | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 5,193 | 14,373 | |||
Unregulated | Home Services and Other | Electricity sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | |||
Unregulated | Eliminations | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | [1] | (456) | (1,653) | ||
Revenues out of scope | [1] | 0 | 0 | ||
Unregulated | Eliminations | Clean Energy Ventures | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues out of scope | [1] | 0 | 0 | ||
Unregulated | Eliminations | Energy Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues out of scope | [1] | $ 62 | $ (8,276) | ||
[1] | Consists of transactions between subsidiaries that are eliminated in consolidation. |
REVENUE - DISAGGREGATED REVEN_2
REVENUE - DISAGGREGATED REVENUE - TYPE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 136,773 | $ 678,077 | ||
Revenues out of scope | 298,169 | 1,434,887 | ||
Total operating revenues | 434,942 | $ 543,435 | 2,112,964 | $ 2,267,783 |
Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 78,676 | 444,341 | ||
Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 44,067 | 176,943 | ||
Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,296 | 52,006 | ||
Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,734 | 4,787 | ||
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 422,253 | 529,291 | 2,084,987 | $ 2,286,298 |
Home Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 13,100 | 37,900 | ||
Unregulated | Home Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,627 | 36,253 | ||
Revenues out of scope | 0 | 0 | ||
Total operating revenues | 12,627 | 36,253 | ||
Unregulated | Home Services and Other | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,388 | 35,522 | ||
Unregulated | Home Services and Other | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 239 | 731 | ||
Unregulated | Home Services and Other | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Unregulated | Home Services and Other | Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Natural Gas Distribution | Regulated | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 115,525 | 598,676 | ||
Revenues out of scope | 5,257 | 23,491 | ||
Total operating revenues | 120,782 | 622,167 | ||
Natural Gas Distribution | Regulated | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 63,984 | 402,192 | ||
Natural Gas Distribution | Regulated | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 37,511 | 139,691 | ||
Natural Gas Distribution | Regulated | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,296 | 52,006 | ||
Natural Gas Distribution | Regulated | Operating Segments | Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,734 | 4,787 | ||
Clean Energy Ventures | Unregulated | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,745 | 16,944 | ||
Revenues out of scope | 6,705 | 20,763 | ||
Total operating revenues | 11,450 | 37,707 | ||
Clean Energy Ventures | Unregulated | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,304 | 6,627 | ||
Clean Energy Ventures | Unregulated | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,441 | 10,317 | ||
Clean Energy Ventures | Unregulated | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Clean Energy Ventures | Unregulated | Operating Segments | Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Energy Services | Unregulated | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,876 | 26,204 | ||
Revenues out of scope | 286,207 | 1,390,633 | ||
Total operating revenues | 290,083 | 1,416,837 | ||
Energy Services | Unregulated | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Energy Services | Unregulated | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,876 | 26,204 | ||
Energy Services | Unregulated | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Energy Services | Unregulated | Operating Segments | Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 0 | $ 0 |
REVENUE - TIMING OF REVENUE REC
REVENUE - TIMING OF REVENUE RECOGNITION (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2019USD ($) | |
Timing of Revenue Recognition [Roll Forward] | |
Billed, beginning | $ 205,490 |
Unbilled, beginning | 7,199 |
Customers' credit, beginning | 27,325 |
Increase (decrease) for accounts receivable, billed | (30,820) |
Increase (decrease) for unbilled revenue | 214 |
Increase (decrease) for customers' credits | (7,832) |
Billed, end | 174,670 |
Unbilled, end | 7,413 |
Customers' credit, end | $ 19,493 |
REVENUE - TIMING OF REVENUE R_2
REVENUE - TIMING OF REVENUE RECOGNITION - BALANCE SHEET (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Customer accounts receivable | ||
Billed | $ 174,670 | $ 205,490 |
Unbilled revenues | 7,413 | 7,199 |
Customers' credit | (19,493) | $ (27,325) |
Customers accounts receivables & Customers' credit balances and deposits | 162,590 | |
Operating Segments | Natural Gas Distribution | ||
Customer accounts receivable | ||
Billed | 60,852 | |
Unbilled revenues | 7,413 | |
Customers' credit | (19,490) | |
Customers accounts receivables & Customers' credit balances and deposits | 48,775 | |
Operating Segments | Clean Energy Ventures | ||
Customer accounts receivable | ||
Billed | 2,942 | |
Unbilled revenues | 0 | |
Customers' credit | 0 | |
Customers accounts receivables & Customers' credit balances and deposits | 2,942 | |
Operating Segments | Energy Services | ||
Customer accounts receivable | ||
Billed | 108,372 | |
Unbilled revenues | 0 | |
Customers' credit | 0 | |
Customers accounts receivables & Customers' credit balances and deposits | 108,372 | |
Home Services and Other | ||
Customer accounts receivable | ||
Billed | 2,504 | |
Unbilled revenues | 0 | |
Customers' credit | (3) | |
Customers accounts receivables & Customers' credit balances and deposits | 2,501 | |
Eliminations | ||
Customer accounts receivable | ||
Billed | 0 | |
Unbilled revenues | 0 | |
Customers' credit | 0 | |
Customers accounts receivables & Customers' credit balances and deposits | $ 0 |
REGULATION - REGULATORY ASSETS
REGULATION - REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 | |
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-current | $ 32,920 | $ 18,297 | |
Regulatory assets-noncurrent | 388,769 | 368,592 | |
Regulatory liabilities-current | 0 | 8,185 | |
Regulatory liabilities-noncurrent | 203,660 | 209,139 | |
Conservation Incentive Program | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory liabilities-current | 0 | 6,994 | |
Derivatives at fair value, net | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory liabilities-current | 0 | 1,191 | |
Regulatory liabilities-noncurrent | 0 | 123 | |
Tax Act impact | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory liabilities-noncurrent | [1] | 201,664 | 205,410 |
New Jersey Clean Energy Program | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory liabilities-noncurrent | 207 | 1,902 | |
Other noncurrent regulatory liabilities | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory liabilities-noncurrent | 1,789 | 1,704 | |
New Jersey Clean Energy Program | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-current | 15,252 | 14,052 | |
Underrecovered gas costs | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-current | 9,949 | 4,137 | |
Conservation Incentive Program | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-current | 2,065 | 0 | |
Derivatives at fair value, net | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-current | 5,654 | 108 | |
Regulatory assets-noncurrent | 750 | 0 | |
Expended, net of recoveries | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | 34,340 | 33,017 | |
Liability for future expenditures | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | 125,566 | 130,800 | |
Deferred income taxes | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | 19,419 | 17,225 | |
SAVEGREEN | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | 7,684 | 8,636 | |
Postemployment and other benefit costs | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | 132,605 | 136,716 | |
Deferred storm damage costs | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | 9,229 | 10,858 | |
Cost of removal | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | 49,929 | 22,339 | |
Other noncurrent regulatory assets | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory assets-noncurrent | $ 9,247 | $ 9,001 | |
[1] | Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. |
REGULATION - REGULATORY FILINGS
REGULATION - REGULATORY FILINGS (Details) - Natural Gas Distribution $ in Millions | Jul. 17, 2019USD ($) | Jul. 02, 2019USD ($) | Jun. 24, 2019USD ($) | May 31, 2019USD ($) | Mar. 29, 2019USD ($) | Feb. 28, 2019USD ($)project_component | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) |
Schedule of Regulatory Filings [Line Items] | |||||||||
Requested rate increase (decrease), amount | $ 128.2 | ||||||||
Energy Efficiency EE | |||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||
Approved rate increase (decrease), amount | $ (8.8) | ||||||||
BGSS/CIP Filing | |||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||
Interim rate increase (decrease), amount | $ 10.9 | ||||||||
Infrastructure Investment Program (IIP) | |||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||
Number of project components | project_component | 2 | ||||||||
Investment | $ 507 | ||||||||
Program term | 5 years | ||||||||
RAC | |||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||
Approved rate increase (decrease), amount | $ 1.4 | ||||||||
NJCEP | |||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||
Approved rate increase (decrease), amount | $ 1.9 | ||||||||
NJ RISE and SAFE II | |||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||
Requested rate increase (decrease), amount | 8.7 | ||||||||
Investment cost | $ 75 | ||||||||
BPU | |||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||
Requested rate increase (decrease), amount | $ 3.5 | ||||||||
Requested return on return, percentage | 7.87% | ||||||||
BGSS | |||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||
Requested rate increase (decrease), amount | (6.8) | ||||||||
BGSS Balancing | |||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||
Requested rate increase (decrease), amount | 15.6 | ||||||||
Conservation Incentive Program | |||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||
Requested rate increase (decrease), amount | $ 12.8 | ||||||||
June 2019 Annual USF Compliance Filing | |||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||
Requested rate increase (decrease), amount | $ 1.2 | ||||||||
Subsequent Event | |||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||
Requested rate increase (decrease), amount | $ 129.8 | ||||||||
Subsequent Event | NJ RISE and SAFE II | |||||||||
Schedule of Regulatory Filings [Line Items] | |||||||||
Revised rate increase (decrease), amount | $ 7.8 |
DERIVATIVE INSTRUMENTS - BALANC
DERIVATIVE INSTRUMENTS - BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($) $ in Thousands | Mar. 13, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | May 30, 2018 | May 15, 2018 | May 11, 2018 | Jan. 31, 2018 | Jun. 30, 2015 |
Fair Value | |||||||||||
Derivative assets, current | $ 28,337 | $ 28,337 | $ 27,396 | ||||||||
Derivative liabilities, current | 40,677 | 40,677 | 46,652 | ||||||||
Derivative assets, noncurrent | 14,476 | 14,476 | 10,560 | ||||||||
Derivative liabilities, noncurrent | 24,923 | 24,923 | 22,982 | ||||||||
Treasury lock | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Benchmark interest rate | 3.26% | ||||||||||
Interest rate, stated percentage | 4.01% | ||||||||||
Gain (loss) on derivative, net | $ (2,600) | ||||||||||
Interest rate swap | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Benchmark interest rate | 2.84% | ||||||||||
Not Designated as Hedging Instrument | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Gain (loss) on derivative, net | 26,740 | $ (2,752) | 17,656 | $ (93,209) | |||||||
Fair Value | |||||||||||
Derivative assets | 42,813 | 42,813 | 37,956 | ||||||||
Derivative liabilities | 65,600 | 65,600 | 69,634 | ||||||||
Natural Gas Distribution | Not Designated as Hedging Instrument | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Gain (loss) on derivative, net | (9,556) | 3,128 | (1,904) | (5,836) | |||||||
Natural Gas Distribution | Not Designated as Hedging Instrument | Physical commodity contracts | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Gain (loss) on derivative, net | 812 | (178) | 5,225 | (16,033) | |||||||
Fair Value | |||||||||||
Derivative assets, current | 55 | 55 | 85 | ||||||||
Derivative liabilities, current | 62 | 62 | 192 | ||||||||
Natural Gas Distribution | Not Designated as Hedging Instrument | Financial commodity contracts | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Gain (loss) on derivative, net | (10,368) | 3,306 | (7,129) | 1,730 | |||||||
Fair Value | |||||||||||
Derivative assets, current | 216 | 216 | 94 | ||||||||
Derivative liabilities, current | 19 | 19 | 0 | ||||||||
Natural Gas Distribution | Not Designated as Hedging Instrument | Interest rate contracts | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Gain (loss) on derivative, net | 0 | $ 0 | 0 | $ 8,467 | |||||||
Natural Gas Distribution | Series Ll | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Debt issued | $ 125,000 | ||||||||||
Interest rate, stated percentage | 5.60% | ||||||||||
Energy Services | Not Designated as Hedging Instrument | Physical commodity contracts | |||||||||||
Fair Value | |||||||||||
Derivative assets, current | 7,874 | 7,874 | 7,667 | ||||||||
Derivative liabilities, current | 17,988 | 17,988 | 18,158 | ||||||||
Derivative assets, noncurrent | 3,126 | 3,126 | 3,930 | ||||||||
Derivative liabilities, noncurrent | 19,068 | 19,068 | 11,316 | ||||||||
Energy Services | Not Designated as Hedging Instrument | Financial commodity contracts | |||||||||||
Fair Value | |||||||||||
Derivative assets, current | 20,162 | 20,162 | 19,169 | ||||||||
Derivative liabilities, current | 22,425 | 22,425 | 28,176 | ||||||||
Derivative assets, noncurrent | 11,350 | 11,350 | 6,630 | ||||||||
Derivative liabilities, noncurrent | 5,774 | 5,774 | 11,548 | ||||||||
Energy Services | Not Designated as Hedging Instrument | Foreign currency contracts | |||||||||||
Fair Value | |||||||||||
Derivative assets, current | 10 | 10 | 0 | ||||||||
Derivative liabilities, current | 183 | 183 | 126 | ||||||||
Derivative assets, noncurrent | 0 | 0 | 0 | ||||||||
Derivative liabilities, noncurrent | 81 | 81 | 118 | ||||||||
First Mortgage | Natural Gas Distribution | Series VV | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Debt issued | $ 125,000 | $ 125,000 | |||||||||
Term Loan | Credit Agreement Due August 16, 2019 | Interest rate swap | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Debt issued | $ 100,000 | ||||||||||
Home Services and Other | Not Designated as Hedging Instrument | Interest rate contracts | |||||||||||
Fair Value | |||||||||||
Derivative assets, current | 20 | 20 | 381 | ||||||||
Derivative liabilities, current | $ 0 | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - OFFSET
DERIVATIVE INSTRUMENTS - OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 | ||
Energy Services | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | [1] | $ 42,522 | $ 37,396 | |
Offsetting Derivative Instruments | [2] | (31,103) | (22,719) | |
Financial Collateral Received/Pledged | [3] | (814) | (200) | |
Net Amounts | [4] | 10,605 | 14,477 | |
Derivative liabilities: | ||||
Amounts Presented in Balance Sheets | [1] | 65,519 | 69,442 | |
Offsetting Derivative Instruments | [2] | (31,103) | (22,719) | |
Financial Collateral Received/Pledged | [3] | (654) | (20,949) | |
Net Amounts | [4] | 33,762 | 25,774 | |
Energy Services | Physical commodity contracts | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | [1] | 11,000 | 11,597 | |
Offsetting Derivative Instruments | [2] | (4,187) | (3,944) | |
Financial Collateral Received/Pledged | [3] | (200) | (200) | |
Net Amounts | [4] | 6,613 | 7,453 | |
Derivative liabilities: | ||||
Amounts Presented in Balance Sheets | [1] | 37,056 | 29,474 | |
Offsetting Derivative Instruments | [2] | (4,187) | (3,944) | |
Financial Collateral Received/Pledged | [3] | 0 | 0 | |
Net Amounts | [4] | 32,869 | 25,530 | |
Energy Services | Financial commodity contracts | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | [1] | 31,512 | 25,799 | |
Offsetting Derivative Instruments | [2] | (26,906) | (18,775) | |
Financial Collateral Received/Pledged | [3] | (614) | 0 | |
Net Amounts | [4] | 3,992 | 7,024 | |
Derivative liabilities: | ||||
Amounts Presented in Balance Sheets | [1] | 28,199 | 39,724 | |
Offsetting Derivative Instruments | [2] | (26,906) | (18,775) | |
Financial Collateral Received/Pledged | [3] | (654) | (20,949) | |
Net Amounts | [4] | 639 | 0 | |
Energy Services | Foreign currency contracts | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | 10 | |||
Offsetting Derivative Instruments | (10) | |||
Financial Collateral Received/Pledged | 0 | |||
Net Amounts | 0 | |||
Derivative liabilities: | ||||
Amounts Presented in Balance Sheets | [1] | 264 | 244 | |
Offsetting Derivative Instruments | [2] | (10) | 0 | |
Financial Collateral Received/Pledged | [3] | 0 | 0 | |
Net Amounts | [4] | 254 | 244 | |
Natural Gas Distribution | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | 271 | [1] | 179 | |
Offsetting Derivative Instruments | (19) | [2] | (3) | |
Financial Collateral Received/Pledged | 0 | [3] | (94) | |
Net Amounts | 252 | [4] | 82 | |
Derivative liabilities: | ||||
Amounts Presented in Balance Sheets | [1] | 81 | 192 | |
Offsetting Derivative Instruments | [2] | (19) | (3) | |
Financial Collateral Received/Pledged | [3] | 0 | 0 | |
Net Amounts | [4] | 62 | 189 | |
Natural Gas Distribution | Physical commodity contracts | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | 55 | [1] | 85 | |
Offsetting Derivative Instruments | 0 | [2] | (3) | |
Financial Collateral Received/Pledged | 0 | [3] | 0 | |
Net Amounts | 55 | [4] | 82 | |
Derivative liabilities: | ||||
Amounts Presented in Balance Sheets | [1] | 62 | 192 | |
Offsetting Derivative Instruments | [2] | 0 | (3) | |
Financial Collateral Received/Pledged | [3] | 0 | 0 | |
Net Amounts | [4] | 62 | 189 | |
Natural Gas Distribution | Financial commodity contracts | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | 216 | [1] | 94 | |
Offsetting Derivative Instruments | (19) | [2] | 0 | |
Financial Collateral Received/Pledged | 0 | [3] | (94) | |
Net Amounts | 197 | [4] | 0 | |
Derivative liabilities: | ||||
Amounts Presented in Balance Sheets | [1] | 19 | ||
Offsetting Derivative Instruments | [2] | (19) | ||
Financial Collateral Received/Pledged | [3] | 0 | ||
Net Amounts | [4] | 0 | ||
Home Services and Other | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | [1] | 20 | 381 | |
Offsetting Derivative Instruments | [2] | 0 | 0 | |
Financial Collateral Received/Pledged | [3] | 0 | 0 | |
Net Amounts | [4] | 20 | 381 | |
Home Services and Other | Interest rate contracts | ||||
Derivative assets: | ||||
Amounts Presented in Balance Sheets | [1] | 20 | 381 | |
Offsetting Derivative Instruments | [2] | 0 | 0 | |
Financial Collateral Received/Pledged | [3] | 0 | 0 | |
Net Amounts | [4] | $ 20 | $ 381 | |
[1] | Derivative assets and liabilities are presented on a gross basis on the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. | |||
[2] | Includes 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) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | $ 26,740 | $ (2,752) | $ 17,656 | $ (93,209) |
Interest rate contracts | Interest Expense | Home Services and Other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | (43) | 165 | (228) | 286 |
Energy Services | Physical commodity contracts | Operating revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | 1,435 | 3,046 | 74 | (7,696) |
Energy Services | Physical commodity contracts | Gas purchases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | 2,392 | 1,008 | 266 | (66,335) |
Energy Services | Financial commodity contracts | Gas purchases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | 22,919 | (6,777) | 17,732 | (19,007) |
Energy Services | Foreign currency contracts | Gas purchases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | 37 | (194) | (188) | (457) |
Natural Gas Distribution | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | (9,556) | 3,128 | (1,904) | (5,836) |
Natural Gas Distribution | Physical commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | 812 | (178) | 5,225 | (16,033) |
Natural Gas Distribution | Financial commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | (10,368) | 3,306 | (7,129) | 1,730 |
Natural Gas Distribution | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | $ 0 | $ 0 | $ 0 | $ 8,467 |
DERIVATIVE INSTRUMENTS - VOLUME
DERIVATIVE INSTRUMENTS - VOLUME (Details) certificate in Thousands, $ in Millions | Jun. 30, 2019USD ($)Bcfcertificate | Sep. 30, 2018Bcf |
Foreign currency contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ | $ 3.8 | |
Natural Gas Distribution | Long | Futures | ||
Derivative [Line Items] | ||
Outsanding long (short) derivatives, Volume | (28.7) | (27.9) |
Natural Gas Distribution | Long | Physical | ||
Derivative [Line Items] | ||
Outsanding long (short) derivatives, Volume | (14.6) | (23.1) |
Energy Services | Physical commodity contracts | ||
Derivative [Line Items] | ||
Number of SRECs | certificate | (1,015) | |
Energy Services | Long | Physical | ||
Derivative [Line Items] | ||
Outsanding long (short) derivatives, Volume | (17) | (51.2) |
Energy Services | Short | Futures | ||
Derivative [Line Items] | ||
Outsanding long (short) derivatives, Volume | (26.9) | (7) |
Energy Services | Short | Swaps | ||
Derivative [Line Items] | ||
Outsanding long (short) derivatives, Volume | (6.2) | (17.3) |
DERIVATIVE INSTRUMENTS - BROKER
DERIVATIVE INSTRUMENTS - BROKER MARGIN DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Natural Gas Distribution | ||
Derivative [Line Items] | ||
Broker margin - Current assets | $ 1,460 | $ 2,038 |
Energy Services | ||
Derivative [Line Items] | ||
Broker margin - Current assets | $ 43,367 | $ 51,681 |
DERIVATIVE INSTRUMENTS - CREDIT
DERIVATIVE INSTRUMENTS - CREDIT RISK EXPOSURE (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019 | Sep. 30, 2018 | |
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | $ 197,855 | |
Derivative, net liability position, aggregate fair value | 483 | $ 124 |
Additional collateral, aggregate fair value | 40 | $ 33 |
Investment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 127,602 | |
Noninvestment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 19,542 | |
Internally rated investment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 18,415 | |
Internally rated noninvestment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | $ 32,296 |
FAIR VALUE - DEBT (Details)
FAIR VALUE - DEBT (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital lease obligations | $ 38,600 | $ 35,900 | |
Level 2 | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | [1],[2],[3] | 1,207,845 | 1,172,045 |
Level 2 | Fair market value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | 1,276,912 | 1,158,051 | |
NJNG | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt issuance costs | 7,700 | 6,500 | |
NJR | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt issuance costs | $ 1,000 | $ 1,100 | |
[1] | Excludes capital leases of $38.6 million and $35.9 million as of June 30, 2019 and September 30, 2018 , respectively. | ||
[2] | Excludes NJNG's debt issuance costs of $7.7 million and $6.5 million as of June 30, 2019 and September 30, 2018 , respectively. | ||
[3] | Excludes NJR's debt issuance costs of $1 million and $1.1 million as of June 30, 2019 and September 30, 2018 , respectively. |
FAIR VALUE - HIERARCHY (Details
FAIR VALUE - HIERARCHY (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in equity securities | $ 32,900 | ||
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in equity securities | 32,917 | ||
Other | $ 1,681 | 1,217 | [1] |
Total assets at fair value | 66,007 | 72,090 | |
Total liabilities at fair value | 65,600 | 69,634 | |
Fair Value, Measurements, Recurring | Physical commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 11,055 | 11,682 | |
Liabilities | 37,118 | 29,666 | |
Fair Value, Measurements, Recurring | Financial commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 31,728 | 25,893 | |
Liabilities | 28,218 | 39,724 | |
Fair Value, Measurements, Recurring | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 10 | ||
Liabilities | 264 | 244 | |
Fair Value, Measurements, Recurring | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 20 | 381 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in equity securities | 32,917 | ||
Other | 1,681 | 1,217 | [1] |
Total assets at fair value | 50,316 | 53,002 | |
Total liabilities at fair value | 28,193 | 39,724 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Physical commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Financial commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 27,122 | 18,868 | |
Liabilities | 28,193 | 39,724 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | ||
Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in equity securities | 0 | ||
Other | 0 | 0 | [1] |
Total assets at fair value | 15,691 | 19,088 | |
Total liabilities at fair value | 37,407 | 29,910 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Physical commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 11,055 | 11,682 | |
Liabilities | 37,118 | 29,666 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Financial commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 4,606 | 7,025 | |
Liabilities | 25 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 10 | ||
Liabilities | 264 | 244 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 20 | 381 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in equity securities | 0 | ||
Other | 0 | 0 | [1] |
Total assets at fair value | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Physical commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Financial commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | ||
Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | $ 0 | |
Money Market Funds | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 21,513 | ||
Money Market Funds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 21,513 | ||
Money Market Funds | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | ||
Money Market Funds | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | $ 0 | ||
[1] | Includes money market funds. |
INVESTMENTS IN EQUITY INVESTE_3
INVESTMENTS IN EQUITY INVESTEES (Details) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019USD ($)mi | Sep. 30, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Investments in equity investees | $ 197,660 | $ 190,866 |
Steckman Ridge | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in equity investees | 115,419 | 117,001 |
Total outstanding principal balance of loans | 70,400 | 70,400 |
PennEast | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in equity investees | $ 82,241 | $ 73,865 |
Construction plan, project area (in miles) | mi | 120 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | ||||||
Earnings Per Share [Abstract] | |||||||||||||
Net (loss) income, as reported | $ (8,402) | [1] | $ 73,573 | $ 86,248 | $ (14,274) | [1] | $ 140,266 | $ 123,699 | $ 151,419 | [1] | $ 249,691 | [1] | |
Basic (loss) earnings per share | |||||||||||||
Weighted average shares of common stock outstanding-basic (shares) | 89,600,000 | 87,888,000 | 88,995,000 | 87,493,000 | |||||||||
Basic (loss) earnings per common share (usd per share) | $ (0.09) | $ (0.16) | $ 1.70 | $ 2.85 | |||||||||
Diluted earnings per share | |||||||||||||
Weighted average shares of common stock outstanding-basic (shares) | 89,600,000 | 87,888,000 | 88,995,000 | 87,493,000 | |||||||||
Incremental shares (shares) | [2] | 0 | 0 | 407,000 | 391,000 | ||||||||
Weighted average shares of common stock outstanding-diluted (shares) | 89,600,000 | 87,888,000 | 89,402,000 | 87,884,000 | |||||||||
Diluted (loss) earnings per common share (usd per share) | [3] | $ (0.09) | $ (0.16) | $ 1.69 | $ 2.84 | ||||||||
Anti-dilutive shares excluded from the calculation of diluted earnings per share | 409,000 | 402,000 | 0 | 0 | |||||||||
[1] | Includes income tax benefit related to the Tax Act of $844,000 and $57.7 million , for the three and nine months ended June 30, 2018 , respectively. | ||||||||||||
[2] | Incremental shares consist primarily of unvested stock awards and performance shares. | ||||||||||||
[3] | Since there was a net loss for the three months ended June 30, 2019 and 2018 , incremental shares of 409,000 and 402,000 , respectively, were not included in the computation of diluted loss per common share, as their effect would have been anti-dilutive. There were no anti-dilutive shares excluded from the calculation of diluted earnings per share during the nine months ended June 30, 2019 and 2018 . |
DEBT - CREDIT FACILITIES (Detai
DEBT - CREDIT FACILITIES (Details) | Dec. 21, 2018USD ($) | Jun. 30, 2019USD ($)Mutual_option | Dec. 05, 2018USD ($) | Sep. 30, 2018USD ($) | |||
Revolving Line of Credit, 4 Months | |||||||
Line of Credit Facility [Line Items] | |||||||
Bank revolving credit facilities | $ 100,000,000 | ||||||
Debt instrument, term | 4 months | ||||||
NJR | Letter of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Letters of credit outstanding, amount | $ 4,200,000 | $ 14,900,000 | |||||
NJR | Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Amount outstanding at end of period | $ 0 | $ 87,950,000 | |||||
Weighted average interest rate at end of period | 0.00% | 3.07% | |||||
NJR | Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Amount available at end of period | [1] | $ 420,775,000 | $ 322,144,000 | ||||
Debt, expiration, mutual options | Mutual_option | 2 | ||||||
Debt, expiration, extension term | 1 year | ||||||
Line of credit facility, maximum borrowing capacity, incremental increase | $ 50,000,000 | ||||||
Line of credit facility, maximum borrowing capacity, maximum increase | 250,000,000 | ||||||
NJR | Revolving Credit Facility | Committed Credit Facilities Due December 2023 | |||||||
Line of Credit Facility [Line Items] | |||||||
Bank revolving credit facilities | 425,000,000 | [2] | $ 425,000,000 | 425,000,000 | [2] | ||
NJNG | Commercial Paper | |||||||
Line of Credit Facility [Line Items] | |||||||
Amount outstanding at end of period | $ 99,300,000 | $ 64,000,000 | |||||
Weighted average interest rate at end of period | 2.62% | 2.18% | |||||
Amount available at end of period | [3] | $ 149,969,000 | $ 185,269,000 | ||||
NJNG | Letter of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Letters of credit outstanding, amount | $ 731,000 | 731,000 | |||||
NJNG | Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt, expiration, mutual options | Mutual_option | 2 | ||||||
Debt, expiration, extension term | 1 year | ||||||
Line of credit facility, maximum borrowing capacity, incremental increase | $ 50,000,000 | ||||||
Line of credit facility, maximum borrowing capacity, maximum increase | 100,000,000 | ||||||
NJNG | Revolving Credit Facility | Committed Credit Facilities Due December 2023 | |||||||
Line of Credit Facility [Line Items] | |||||||
Bank revolving credit facilities | $ 250,000,000 | ||||||
NJNG | Revolving Credit Facility | Committed Credit Facilities Due May 2019 | |||||||
Line of Credit Facility [Line Items] | |||||||
Bank revolving credit facilities | [2] | $ 250,000,000 | $ 250,000,000 | ||||
[1] | Letters of credit outstanding total $4.2 million and $14.9 million for June 30, 2019 and September 30, 2018 , respectively, which reduces amount available by the same amount. | ||||||
[2] | Committed credit facilities, which require commitment fees on the unused amounts. | ||||||
[3] | Letters of credit outstanding total $731,000 for both June 30, 2019 and September 30, 2018 , which reduces the amount available by the same amount. |
DEBT - LONG TERM DEBT (Details)
DEBT - LONG TERM DEBT (Details) | Apr. 18, 2019USD ($)First_mortgage_bond | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Aug. 15, 2019USD ($) | Jul. 17, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||
Proceeds from sale-leaseback transaction | $ 9,895,000 | $ 7,820,000 | ||||||
NJNG | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from sale-leaseback transaction | $ 9,900,000 | $ 7,800,000 | ||||||
Remaining principal payments | $ 1,100,000 | $ 1,100,000 | ||||||
Number of first mortgage bonds | First_mortgage_bond | 3 | |||||||
Proceeds from reissuance of first mortgage bond | $ 35,800,000 | |||||||
NJNG | First Mortgage Bond | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted average interest rate | 3.02% | |||||||
NJR | Unsecured Senior Note | Scenario, Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issued | $ 100,000,000 | |||||||
Subsequent Event | NJNG | Unsecured Senior Note 3.76% | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issued | $ 100,000,000 | |||||||
Interest rate, stated percentage | 3.76% | |||||||
Subsequent Event | NJNG | Unsecured Senior Note 3.86% | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issued | $ 85,000,000 | |||||||
Interest rate, stated percentage | 3.86% | |||||||
Subsequent Event | NJR | Unsecured Senior Note | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issued | $ 50,000,000 | |||||||
Interest rate, stated percentage | 3.29% |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Components of net periodic cost | ||||
Discretionary contribution | $ 0 | $ 0 | ||
Pension | ||||
Components of net periodic cost | ||||
Service cost | $ 1,845,000 | $ 2,035,000 | 5,536,000 | 6,104,000 |
Interest cost | 3,043,000 | 2,623,000 | 9,129,000 | 7,870,000 |
Expected return on plan assets | (4,763,000) | (4,910,000) | (14,290,000) | (14,729,000) |
Recognized actuarial loss | 1,442,000 | 1,884,000 | 4,324,000 | 5,653,000 |
Prior service cost amortization | 25,000 | 27,000 | 76,000 | 80,000 |
Net periodic benefit cost | 1,592,000 | 1,659,000 | 4,775,000 | 4,978,000 |
OPEB | ||||
Components of net periodic cost | ||||
Service cost | 1,101,000 | 1,152,000 | 3,303,000 | 3,455,000 |
Interest cost | 2,081,000 | 1,591,000 | 6,243,000 | 4,773,000 |
Expected return on plan assets | (1,379,000) | (1,338,000) | (4,137,000) | (4,014,000) |
Recognized actuarial loss | 1,617,000 | 1,165,000 | 4,850,000 | 3,495,000 |
Prior service cost amortization | (91,000) | (91,000) | (273,000) | (273,000) |
Net periodic benefit cost | $ 3,329,000 | $ 2,479,000 | $ 9,986,000 | $ 7,436,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | May 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||||||
Income tax expense (benefit), solar investment tax credit, net of deferred taxes | $ (6,000,000) | ||||||
Federal statutory income tax rate, percent | 24.50% | ||||||
Tax Cuts And Jobs Act Of 2017, income tax benefit | $ 844,000 | $ (57,700,000) | |||||
Income tax provision (benefit) | $ (1,941,000) | $ (28,534,000) | $ (11,854,000) | $ (47,801,000) | |||
Forecasted effective tax rate | (4.60%) | 14.30% | |||||
Forecasted tax credits, net of deferred tax | $ 22,000,000 | ||||||
Other reconciling Items, amount | $ 5,400,000 | $ 76,600,000 | |||||
Other reconciling Items, percent | (8.50%) | (23.70%) | |||||
Deferred tax assets, operating loss carryforwards, domestic, refundable and receivables | 23,000,000 | $ 23,000,000 | 23,000,000 | ||||
Deferred tax assets, operating loss carryforwards, domestic | 24,500,000 | 24,500,000 | |||||
ITC carryforward | 140,800,000 | 140,800,000 | 121,100,000 | ||||
Valuation allowance | 4,000,000 | 4,000,000 | 4,000,000 | ||||
Deferred income taxes | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Income tax provision (benefit) | $ (16,100,000) | ||||||
Public utilities, remeasurement of deferred income tax, liability | 14,300,000 | ||||||
Public utilities, amortization of excess deferred income taxes, liability | 890,000 | ||||||
Public utilities, revaluation of deferred income taxes not included in base rates, liability | 880,000 | ||||||
Federal | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Net operating loss carryforwards | 135,600,000 | 135,600,000 | 136,800,000 | ||||
State | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Net operating loss carryforwards | $ 403,700,000 | $ 403,700,000 | $ 578,800,000 | ||||
Scenario, Forecast | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Federal statutory income tax rate, percent | 21.00% | ||||||
Forecasted tax credits, net of deferred tax | $ 46,300,000 |
INCOME TAXES Reserve For Uncert
INCOME TAXES Reserve For Uncertain Tax Benefits (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2019USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Additions based on tax positions related to the current fiscal period | $ 3,415 |
Uncertain tax benefits, ending balance | $ 3,415 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2019USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Current charges recoverable through BGSS | $ 131,200 |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2019 | 511,685 |
2020 | 273,281 |
2021 | 198,498 |
2022 | 171,256 |
2023 | 119,900 |
Thereafter | 583,146 |
Energy Services | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2019 | 328,718 |
2020 | 105,401 |
2021 | 54,067 |
2022 | 35,607 |
2023 | 10,322 |
Thereafter | 2,089 |
Energy Services | Natural gas purchases | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2019 | 226,513 |
2020 | 26,521 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Energy Services | Storage demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2019 | 28,237 |
2020 | 17,298 |
2021 | 11,716 |
2022 | 8,735 |
2023 | 2,280 |
Thereafter | 1,032 |
Energy Services | Pipeline demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2019 | 73,968 |
2020 | 61,582 |
2021 | 42,351 |
2022 | 26,872 |
2023 | 8,042 |
Thereafter | $ 1,057 |
Energy Services | Minimum | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, contract term | 1 year |
Energy Services | Maximum | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, contract term | 10 years |
Natural Gas Distribution | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2019 | $ 182,967 |
2020 | 167,880 |
2021 | 144,431 |
2022 | 135,649 |
2023 | 109,578 |
Thereafter | 581,057 |
Natural Gas Distribution | Natural gas purchases | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2019 | 51,763 |
2020 | 33,269 |
2021 | 33,607 |
2022 | 34,142 |
2023 | 36,155 |
Thereafter | 8,889 |
Natural Gas Distribution | Storage demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2019 | 35,988 |
2020 | 27,025 |
2021 | 16,383 |
2022 | 11,680 |
2023 | 3,112 |
Thereafter | 4,441 |
Natural Gas Distribution | Pipeline demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2019 | 95,216 |
2020 | 107,586 |
2021 | 94,441 |
2022 | 89,827 |
2023 | 70,311 |
Thereafter | $ 567,727 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - LEGAL PROCEEDINGS (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2019USD ($)site | Sep. 30, 2018USD ($) | |
Site Contingency [Line Items] | ||||
Number of MGP sites | site | 5 | |||
Environmental remediation expense | $ 600,000 | |||
Environmental remediation expense, incurred to date | 1,500,000 | |||
Manufactured gas plant remediation | $ 125,566,000 | $ 125,566,000 | $ 130,800,000 | |
Recovery from third party of environmental remediation cost, period | 7 years | |||
Regulatory assets | 388,769,000 | $ 388,769,000 | 368,592,000 | |
Minimum | ||||
Site Contingency [Line Items] | ||||
Product liability contingency, loss exposure in excess of accrual, best estimate | 117,700,000 | |||
Maximum | ||||
Site Contingency [Line Items] | ||||
Product liability contingency, loss exposure in excess of accrual, best estimate | 204,100,000 | |||
Expended, net of recoveries | ||||
Site Contingency [Line Items] | ||||
Regulatory assets | 34,340,000 | $ 34,340,000 | $ 33,017,000 | |
RAC | ||||
Site Contingency [Line Items] | ||||
Approved rate, amount | $ 8,500,000 | $ 7,100,000 | ||
NJDEP | ||||
Site Contingency [Line Items] | ||||
Number of MGP sites | site | 2 |
REPORTING SEGMENT AND OTHER O_3
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT INCOME TO CONSOLIDATED (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |||||
Segment Reporting Information [Line Items] | ||||||||
Utility | $ 120,782 | $ 104,538 | $ 622,167 | $ 631,389 | ||||
Nonutility | 314,160 | 438,897 | 1,490,797 | 1,636,394 | ||||
Total operating revenues | 434,942 | 543,435 | 2,112,964 | 2,267,783 | ||||
Depreciation and amortization | 23,149 | 20,320 | 67,292 | 64,634 | ||||
Interest income | [1] | 496 | 202 | 1,114 | 452 | |||
Interest expense, net of capitalized interest | 11,648 | 11,037 | 37,643 | 34,740 | ||||
Income tax provision (benefit) | (1,941) | (28,534) | (11,854) | (47,801) | ||||
Equity in earnings of affiliates | 3,495 | 3,213 | 10,027 | 9,670 | ||||
Net financial (loss) earnings | [2] | (17,506) | (8,003) | 149,004 | 269,392 | |||
Capital expenditures | 146,616 | 101,767 | 344,018 | 266,705 | ||||
Investments in equity investees | 1,239 | 3,319 | 2,696 | 14,496 | ||||
Operating Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total operating revenues | 422,253 | 529,291 | 2,084,987 | 2,286,298 | ||||
Depreciation and amortization | 22,952 | 20,197 | 66,889 | 64,228 | ||||
Interest income | [1] | 1,301 | 1,281 | 3,696 | 3,072 | |||
Interest expense, net of capitalized interest | 11,909 | 11,986 | 38,478 | 36,751 | ||||
Income tax provision (benefit) | (3,642) | (29,676) | (12,355) | (58,695) | ||||
Net financial (loss) earnings | (21,911) | (9,979) | 146,106 | 277,805 | ||||
Capital expenditures | 145,692 | 101,022 | 342,192 | 265,405 | ||||
Operating Segments | Natural Gas Distribution | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Utility | 120,782 | 104,538 | 622,167 | 631,389 | ||||
Depreciation and amortization | 14,689 | 13,473 | 42,557 | 39,609 | ||||
Interest income | 187 | [1] | 202 | [1] | 567 | 452 | [1] | |
Interest expense, net of capitalized interest | 6,301 | 6,226 | 18,166 | 19,285 | ||||
Income tax provision (benefit) | (1,391) | (25,314) | 16,705 | 4,381 | ||||
Net financial (loss) earnings | (3,795) | 2,440 | 96,464 | 96,991 | ||||
Capital expenditures | 100,473 | 70,623 | 239,569 | 173,410 | ||||
Operating Segments | Clean Energy Ventures | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Nonutility | 11,450 | 15,348 | 37,707 | 42,210 | ||||
Depreciation and amortization | 8,239 | 6,702 | 24,253 | 24,565 | ||||
Interest expense, net of capitalized interest | 4,320 | 4,708 | 14,405 | 13,260 | ||||
Income tax provision (benefit) | (1,787) | (565) | (39,033) | (87,275) | ||||
Net financial (loss) earnings | (7,138) | (829) | 24,797 | 80,472 | ||||
Capital expenditures | 38,813 | 29,424 | 91,333 | 88,416 | ||||
Operating Segments | Energy Services | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Nonutility | [3] | 290,083 | 409,417 | 1,416,837 | 1,563,063 | |||
Depreciation and amortization | [4] | 23 | 21 | 75 | 50 | |||
Interest income | 26 | [1] | 134 | [1] | 40 | 240 | [1] | |
Interest expense, net of capitalized interest | 766 | 581 | 4,277 | 3,041 | ||||
Income tax provision (benefit) | (1,193) | (4,786) | 7,063 | 32,922 | ||||
Net financial (loss) earnings | (14,030) | (15,079) | 13,644 | 78,027 | ||||
Operating Segments | Midstream | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Depreciation and amortization | 1 | 1 | 4 | 4 | ||||
Interest income | 1,088 | [1] | 945 | [1] | 3,089 | 2,380 | [1] | |
Interest expense, net of capitalized interest | 522 | 471 | 1,630 | 1,165 | ||||
Income tax provision (benefit) | 729 | 989 | 2,910 | (8,723) | ||||
Equity in earnings of affiliates | 4,167 | 3,907 | 11,966 | 12,104 | ||||
Net financial (loss) earnings | 3,052 | 3,489 | 11,201 | 22,315 | ||||
Capital expenditures | 6,406 | 975 | 11,290 | 3,579 | ||||
Investments in equity investees | 1,239 | 3,319 | 2,696 | 14,496 | ||||
Intercompany | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Nonutility | 455 | 627 | 1,652 | 1,856 | ||||
Intercompany | Energy Services | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Nonutility | (62) | (12) | 8,276 | 49,636 | ||||
Home Services and Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Nonutility | 12,627 | 14,132 | 36,253 | 31,121 | ||||
Depreciation and amortization | 230 | 193 | 673 | 570 | ||||
Interest income | 515 | [1] | 340 | [1] | 1,620 | 898 | [1] | |
Interest expense, net of capitalized interest | 407 | (129) | 1,410 | (18) | ||||
Income tax provision (benefit) | 1,705 | 1,122 | 854 | 11,539 | ||||
Net financial (loss) earnings | 4,437 | 1,993 | 2,932 | (8,211) | ||||
Capital expenditures | 924 | 745 | 1,826 | 1,300 | ||||
Eliminations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Nonutility | (393) | (615) | (9,928) | (51,492) | ||||
Depreciation and amortization | (33) | (70) | (270) | (164) | ||||
Interest income | (1,320) | [1] | (1,419) | [1] | (4,202) | (3,518) | [1] | |
Interest expense, net of capitalized interest | (668) | (820) | (2,245) | (1,993) | ||||
Income tax provision (benefit) | (4) | 20 | (353) | (645) | ||||
Equity in earnings of affiliates | (672) | (694) | (1,939) | (2,434) | ||||
Net financial (loss) earnings | $ (32) | $ (17) | $ (34) | $ (202) | ||||
[1] | Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. | |||||||
[2] | Includes income tax benefit related to the Tax Act of $844,000 and $57.7 million , for the three and nine months ended June 30, 2018 , respectively. | |||||||
[3] | Includes sales to Canada, which are immaterial | |||||||
[4] | The amortization of acquired wholesale energy contracts is excluded above and is included in gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations. |
REPORTING SEGMENT AND OTHER O_4
REPORTING SEGMENT AND OTHER OPERATIONS DATA - NET FINANCIAL EARNINGS (LOSS) RECONCILIATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | ||||||
Segment Reporting [Abstract] | |||||||||||||
Net financial (loss) earnings | [1] | $ (17,506) | $ (8,003) | $ 149,004 | $ 269,392 | ||||||||
Less: | |||||||||||||
Unrealized (gain) loss on derivative instruments and related transactions | (24,646) | 2,657 | (25,353) | 25,904 | |||||||||
Tax effect | 5,885 | (577) | 6,034 | (3,920) | |||||||||
Effects of economic hedging related to natural gas inventory | 11,317 | 4,474 | 12,073 | (14,788) | |||||||||
Tax effect | (2,689) | (1,011) | (2,869) | 5,518 | |||||||||
Net income to NFE tax adjustment | 1,029 | 728 | 7,700 | 6,987 | |||||||||
NET (LOSS) INCOME | $ (8,402) | [1] | $ 73,573 | $ 86,248 | (14,274) | [1] | $ 140,266 | $ 123,699 | $ 151,419 | [1] | 249,691 | [1] | |
Tax Cuts And Jobs Act Of 2017, income tax benefit | $ 844 | $ (57,700) | |||||||||||
[1] | Includes income tax benefit related to the Tax Act of $844,000 and $57.7 million , for the three and nine months ended June 30, 2018 , respectively. |
REPORTING SEGMENT AND OTHER O_5
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 4,123,412 | $ 4,143,664 | |
Assets held for sale | 0 | 206,905 | |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 4,086,463 | 4,166,993 | |
Operating Segments | Natural Gas Distribution | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 2,867,528 | 2,663,054 | |
Operating Segments | Clean Energy Ventures | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | [1] | 703,866 | 865,018 |
Assets held for sale | 206,900 | ||
Operating Segments | Energy Services | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 285,970 | 396,852 | |
Operating Segments | Midstream | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 229,099 | 242,069 | |
Home Services and Other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 129,882 | 114,732 | |
Intercompany Assets | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | [2] | $ (92,933) | $ (138,061) |
[1] | Includes assets held for sale of $206.9 million for September 30, 2018 . | ||
[2] | Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | Apr. 01, 2010USD ($)Bcf | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Bcf / dcontract | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) |
Related Party Transaction [Line Items] | ||||||
Demand fees expense recognized pertaining to related party agreement | $ 2,126 | $ 2,156 | $ 6,455 | $ 6,392 | ||
Demand fees payable | 1,150 | $ 1,150 | $ 1,150 | |||
Number of asset management agreements | contract | 4 | |||||
NJNG to NJRES Affilate | ||||||
Related Party Transaction [Line Items] | ||||||
Asset management agreement, period | 10 years | |||||
NJNG to Steckman RIdge Affiliate | ||||||
Related Party Transaction [Line Items] | ||||||
Natural gas sold at cost under asset management agreement (in Bcf) | Bcf | 3 | |||||
Approximate annual demand fees under agreement | $ 9,300 | |||||
Demand fees expense recognized pertaining to related party agreement | 1,431 | 1,451 | $ 4,349 | 4,306 | ||
Demand fees payable | 775 | 775 | 775 | |||
NJRES to Steckman Ridge Affiliate | ||||||
Related Party Transaction [Line Items] | ||||||
Demand fees expense recognized pertaining to related party agreement | 695 | $ 705 | 2,106 | $ 2,086 | ||
Demand fees payable | $ 375 | $ 375 | $ 375 | |||
NJNG to PennEast Affiliate | ||||||
Related Party Transaction [Line Items] | ||||||
Transportation precedent agreement, period | 15 years | |||||
Transportation capacity under precedent agreement with PennEast (in bcf per day) | Bcf / d | 0.18 | |||||
NJRES to PennEast Affiliate | ||||||
Related Party Transaction [Line Items] | ||||||
Transportation precedent agreement, period | 5 years | |||||
Transportation capacity under precedent agreement with PennEast (in bcf per day) | Bcf / d | 0.05 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Details) $ in Thousands | Feb. 07, 2019USD ($) | Nov. 30, 2017USD ($) | Oct. 31, 2017USD ($)mi | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
Business Acquisition [Line Items] | |||||
Cash paid related to acquisition | $ 0 | $ 10,000 | |||
Gain on sale of business, net | $ 645 | $ 4,687 | |||
Clean Energy Ventures | |||||
Business Acquisition [Line Items] | |||||
Disposal group consideration | $ 208,600 | ||||
Gain on sale of business, net | $ 645 | ||||
Talen Generation, LLC | |||||
Business Acquisition [Line Items] | |||||
Related party, service agreement, period | 10 years | ||||
Talen's Membership Interests In IEC | Talen Generation, LLC | |||||
Business Acquisition [Line Items] | |||||
Consideration to be transferred | $ 166,000 | ||||
Contingent consideration arrangements, range of outcomes, value, high | $ 23,000 | ||||
Cash paid related to acquisition | $ 10,000 | ||||
Pipeline length owned | mi | 84 |
Uncategorized Items - njr10qjun
Label | Element | Value | |
Unrecognized Tax Benefits | us-gaap_UnrecognizedTaxBenefits | $ 0 | |
Accounting Standards Update 2016-01 [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 | [1] |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,446,000) | [1] |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 3,446,000 | [1] |
[1] | See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. |