Cover Page
Cover Page - shares | 9 Months Ended | |
Jun. 30, 2020 | Aug. 05, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
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 - $2.50 Par Value | |
Trading Symbol | NJR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Business | false | |
Entity Common Stock, Shares Outstanding | 95,930,191 | |
Entity Central Index Key | 0000356309 | |
Current Fiscal Year End Date | --09-30 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
OPERATING REVENUES | ||||
Utility | $ 128,532 | $ 120,782 | $ 645,375 | $ 622,167 |
Nonutility | 170,442 | 314,160 | 908,249 | 1,490,797 |
Total operating revenues | 298,974 | 434,942 | 1,553,624 | 2,112,964 |
Gas purchases: | ||||
Gas purchases - Related parties | 1,518 | 2,126 | 4,548 | 6,455 |
Operation and maintenance | 68,541 | 64,932 | 198,718 | 194,298 |
Regulatory rider expenses | 5,464 | 4,136 | 32,536 | 32,159 |
Depreciation and amortization | 31,216 | 23,149 | 89,758 | 67,292 |
Total operating expenses | 319,165 | 438,961 | 1,377,103 | 1,951,239 |
OPERATING (LOSS) INCOME | (20,191) | (4,019) | 176,521 | 161,725 |
Other income, net | 2,713 | 1,829 | 10,260 | 5,456 |
Interest expense, net of capitalized interest | 15,144 | 11,648 | 50,417 | 37,643 |
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES | (32,622) | (13,838) | 136,364 | 129,538 |
Income tax benefit | (2,190) | (1,941) | (4,092) | (11,854) |
Equity in earnings of affiliates | 3,213 | 3,495 | 10,191 | 10,027 |
NET (LOSS) INCOME | $ (27,219) | $ (8,402) | $ 150,647 | $ 151,419 |
EARNINGS PER COMMON SHARE | ||||
Basic (usd per share) | $ (0.28) | $ (0.09) | $ 1.60 | $ 1.70 |
Diluted (usd per share) | $ (0.28) | $ (0.09) | $ 1.59 | $ 1.69 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||
Basic (in shares) | 95,764 | 89,600 | 94,420 | 88,995 |
Diluted (in shares) | 95,764 | 89,600 | 94,718 | 89,402 |
Regulated | ||||
Gas purchases: | ||||
Gas purchases - Utility and Nonutility | $ 45,665 | $ 54,861 | $ 249,042 | $ 280,627 |
Unregulated | ||||
Gas purchases: | ||||
Gas purchases - Utility and Nonutility | $ 166,761 | $ 289,757 | $ 802,501 | $ 1,370,408 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (27,219) | $ (8,402) | $ 150,647 | $ 151,419 |
Other comprehensive (loss) income, net of tax | ||||
Loss on derivatives designated as hedging instruments, net of tax of $180, $0, $2,961 and $0, respectively | (626) | 0 | (10,337) | 0 |
Adjustment to postemployment benefit obligation, net of tax of $(191), $(118), $(2,161) and $(333), respectively | 663 | 305 | 7,522 | 844 |
Other comprehensive income (loss) | 37 | 305 | (2,815) | 844 |
Comprehensive (loss) income | $ (27,182) | $ (8,097) | $ 147,832 | $ 152,263 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax on net unrealized gain on derivatives | $ 180 | $ 0 | $ 2,961 | $ 0 |
Tax on adjustment for postemployment benefit obligation | $ (191) | $ (118) | $ (2,161) | $ (333) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 150,647,000 | $ 151,419,000 |
Adjustments to reconcile net income to cash flows from operating activities | ||
Unrealized gain on derivative instruments | (21,827,000) | (25,353,000) |
Realized and unrealized gains on investments in equity securities | 0 | (1,567,000) |
Gain on sale of businesses | 0 | (645,000) |
Depreciation and amortization | 89,758,000 | 67,292,000 |
Amortization of acquired wholesale energy contracts | 4,356,000 | 7,813,000 |
Allowance for equity used during construction | (12,328,000) | (6,135,000) |
Allowance for doubtful accounts | 1,657,000 | 1,686,000 |
Non cash lease expense | 2,864,000 | 0 |
Deferred income taxes | (3,066,000) | (29,092,000) |
Manufactured gas plant remediation costs | (6,629,000) | (9,582,000) |
Equity in earnings, net of distributions received from equity investees | (4,985,000) | (2,700,000) |
Cost of removal - asset retirement obligations | (183,000) | (194,000) |
Contributions to postemployment benefit plans | (5,969,000) | (5,994,000) |
Tax benefit from stock-based compensation | 644,000 | 1,289,000 |
Changes in: | ||
Components of working capital | (17,397,000) | (14,829,000) |
Other noncurrent assets | 10,177,000 | 16,906,000 |
Other noncurrent liabilities | (4,936,000) | 15,476,000 |
Cash flows from operating activities | 182,783,000 | 165,790,000 |
Expenditures for: | ||
Cost of removal | (24,343,000) | (32,212,000) |
Acquisition of assets, net of cash acquired of $5.1 million | (523,647,000) | 0 |
Distribution from equity investees in excess of equity in earnings | 1,411,000 | 1,473,000 |
Investments in equity investees | (1,491,000) | (2,696,000) |
Proceeds from sale of businesses, net of closing costs | 0 | 205,745,000 |
Proceeds from sale of investments in equity securities, net | 0 | 34,484,000 |
Cash flows used in investing activities | (890,966,000) | (105,012,000) |
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | ||
Proceeds from term loan | 350,000,000 | 0 |
Payments of term loan | (212,900,000) | 0 |
Proceeds from long-term debt | 50,000,000 | 35,800,000 |
Payments of long-term debt | (11,947,000) | (15,001,000) |
Proceeds from (payments of) short-term debt, net | 390,562,000 | (52,650,000) |
Proceeds from sale-leaseback transaction - solar | 42,927,000 | 0 |
Proceeds from sale-leaseback transaction | 4,000,000 | |
Proceeds from sale-leaseback transaction | 9,895,000 | |
Payments of common stock dividends | (86,709,000) | (77,730,000) |
Proceeds from issuance of common stock - public equity offering | 212,900,000 | 0 |
Proceeds from waiver discount issuance of common stock | 0 | 57,391,000 |
Proceeds from issuance of common stock - DRP | 14,498,000 | 13,199,000 |
Tax withholding payments related to net settled stock compensation | (3,966,000) | (6,704,000) |
Cash flows from (used in) financing activities | 749,365,000 | (35,800,000) |
Change in cash, cash equivalents and restricted cash | 41,182,000 | 24,978,000 |
Cash, cash equivalents and restricted cash at beginning of period | 4,063,000 | 1,710,000 |
Cash, cash equivalents and restricted cash at end of period | 45,245,000 | 26,688,000 |
CHANGES IN COMPONENTS OF WORKING CAPITAL | ||
Receivables | (3,019,000) | 28,385,000 |
Inventories | 42,566,000 | 51,833,000 |
Recovery of gas costs | (5,722,000) | (14,870,000) |
Gas purchases payable | (55,593,000) | (66,060,000) |
Prepaid expenses | 1,487,000 | (2,385,000) |
Prepaid and accrued taxes | (991,000) | 10,110,000 |
Accounts payable and other | (13,084,000) | (31,883,000) |
Restricted broker margin accounts | 11,900,000 | 13,092,000 |
Customers' credit balances and deposits | (7,060,000) | (7,832,000) |
Other current assets | 12,119,000 | 4,781,000 |
Total | (17,397,000) | (14,829,000) |
Cash paid for: | ||
Interest (net of amounts capitalized) | 47,642,000 | 42,107,000 |
Income taxes | 1,127,000 | 8,550,000 |
Accrued capital expenditures | 20,814,000 | 32,143,000 |
Utility Plant | ||
Expenditures for: | ||
Payments to acquire PP&E | (213,667,000) | (207,357,000) |
Solar Equipment | ||
Expenditures for: | ||
Payments to acquire PP&E | (110,968,000) | (91,333,000) |
Midstream and Other Property | ||
Expenditures for: | ||
Payments to acquire PP&E | $ (18,261,000) | $ (13,116,000) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) $ in Millions | 9 Months Ended |
Jun. 30, 2020USD ($) | |
Statement of Cash Flows [Abstract] | |
Cash acquired from asset acquisition | $ 5.1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
PROPERTY, PLANT AND EQUIPMENT | ||
Utility plant, at cost | $ 2,741,021 | $ 2,625,730 |
Construction work in progress | 362,970 | 237,011 |
Nonutility plant and equipment, at cost | 1,410,428 | 861,904 |
Construction work in progress | 167,807 | 62,492 |
Total property, plant and equipment | 4,682,226 | 3,787,137 |
Accumulated depreciation and amortization, utility plant | (586,711) | (585,160) |
Accumulated depreciation and amortization, nonutility plant and equipment | (191,520) | (156,033) |
Property, plant and equipment, net | 3,903,995 | 3,045,944 |
CURRENT ASSETS | ||
Cash and cash equivalents | 42,821 | 2,676 |
Customer accounts receivable | ||
Billed | 143,059 | 139,263 |
Unbilled revenues | 8,738 | 6,510 |
Allowance for doubtful accounts | (6,975) | (6,148) |
Regulatory assets | 52,251 | 32,871 |
Gas in storage, at average cost | 123,962 | 169,803 |
Materials and supplies, at average cost | 18,128 | 14,475 |
Prepaid expenses | 7,700 | 8,333 |
Prepaid and accrued taxes | 25,546 | 22,602 |
Derivatives, at fair value | 29,367 | 25,103 |
Restricted broker margin accounts | 52,212 | 73,723 |
Other | 24,269 | 22,395 |
Total current assets | 521,078 | 511,606 |
NONCURRENT ASSETS | ||
Investments in equity method investees | 205,800 | 200,268 |
Regulatory assets | 451,115 | 496,637 |
Operating lease assets | 101,657 | 0 |
Derivatives, at fair value | 6,347 | 7,426 |
Intangible assets, net | 11,006 | 14,611 |
Other noncurrent assets | 81,086 | 96,493 |
Total noncurrent assets | 857,011 | 815,435 |
Total assets | 5,282,084 | 4,372,985 |
CAPITALIZATION | ||
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding June 30, 2020 — 95,830,500; September 30, 2019 — 89,998,788 | 240,227 | 226,649 |
Premium on common stock | 492,365 | 291,331 |
Accumulated other comprehensive loss, net of tax | (34,602) | (31,787) |
Treasury stock at cost and other; shares June 30, 2020 — 260,462; September 30, 2019 —660,734 | 4,012 | (10,436) |
Retained earnings | 1,136,925 | 1,075,960 |
Common stock equity | 1,838,927 | 1,551,717 |
Long-term debt | 1,664,517 | 1,537,177 |
Total capitalization | 3,503,444 | 3,088,894 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 25,954 | 21,419 |
Short-term debt | 553,112 | 25,450 |
Gas purchases payable | 81,677 | 137,271 |
Gas purchases payable to related parties | 791 | 790 |
Accounts payable and other | 109,987 | 129,724 |
Dividends payable | 29,947 | 28,122 |
Accrued taxes | 5,347 | 3,394 |
Regulatory liabilities-current | 6,774 | 0 |
New Jersey Clean Energy Program | 17,062 | 15,468 |
Derivatives, at fair value | 47,094 | 57,623 |
Operating lease liabilities | 4,458 | 0 |
Customers' credit balances and deposits | 20,056 | 27,116 |
Total current liabilities | 902,259 | 446,377 |
NONCURRENT LIABILITIES | ||
Deferred income taxes | 187,508 | 190,663 |
Deferred investment tax credits | 3,412 | 3,653 |
Deferred gain | 1,035 | 1,554 |
Derivatives, at fair value | 23,600 | 18,821 |
Manufactured gas plant remediation | 128,886 | 131,080 |
Postemployment employee benefit liability | 196,664 | 246,517 |
Regulatory liabilities | 197,281 | 202,435 |
Operating lease liabilities | 96,118 | 0 |
Asset retirement obligation | 33,305 | 31,046 |
Other | 8,572 | 11,945 |
Total noncurrent liabilities | 876,381 | 837,714 |
Commitments and contingent liabilities (Note 13) | ||
Total capitalization and liabilities | $ 5,282,084 | $ 4,372,985 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2020 | Sep. 30, 2019 |
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) | 95,830,500 | 89,998,788 |
Treasury stock at cost and other, shares (in shares) | 260,462 | 660,734 |
CONDENSED CONSOLIDATED STATEM_6
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 (in shares) at Sep. 30, 2018 | 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 (in 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 (in shares) at Sep. 30, 2018 | 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 | 151,419 | ||||||
Other comprehensive income | 844 | ||||||
Balance as of end of period (in shares) at Jun. 30, 2019 | 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 (in 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 (in shares) | (8,000) | ||||||
Treasury stock and other | 654 | 654 | |||||
Balance as of end of period (in 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) | (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 | 741 | 741 | |||||
Balance as of end of period (in shares) at Jun. 30, 2019 | 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 (in shares) at Sep. 30, 2019 | 89,998,788 | 89,999,000 | |||||
Balance as of beginning of period at Sep. 30, 2019 | $ 1,551,717 | $ 226,649 | 291,331 | (31,787) | (10,436) | 1,075,960 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 89,361 | 89,361 | |||||
Other comprehensive income | 759 | 759 | |||||
Common stock issued: | |||||||
Common stock offering (in shares) | 5,333,000 | ||||||
Common stock offering | 212,900 | $ 13,333 | 199,567 | ||||
Incentive compensation plan (in shares) | 96,000 | ||||||
Incentive compensation plan | 3,292 | $ 239 | 3,053 | ||||
Dividend reinvestment plan (in shares) | [1] | 80,000 | |||||
Dividend reinvestment plan | [1] | 3,499 | 314 | 3,185 | |||
Cash dividend declared | (29,846) | (29,846) | |||||
Treasury stock and other | (3,879) | (3,879) | |||||
Balance as of end of period (in shares) at Dec. 31, 2019 | 95,508,000 | ||||||
Balance as of end of period at Dec. 31, 2019 | $ 1,827,803 | $ 240,221 | 494,265 | (31,028) | (11,130) | 1,135,475 | |
Balance as of beginning of period (in shares) at Sep. 30, 2019 | 89,998,788 | 89,999,000 | |||||
Balance as of beginning of period at Sep. 30, 2019 | $ 1,551,717 | $ 226,649 | 291,331 | (31,787) | (10,436) | 1,075,960 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 150,647 | ||||||
Other comprehensive income | $ (2,815) | ||||||
Balance as of end of period (in shares) at Jun. 30, 2020 | 95,830,500 | 95,830,000 | |||||
Balance as of end of period at Jun. 30, 2020 | $ 1,838,927 | $ 240,227 | 492,365 | (34,602) | 4,012 | 1,136,925 | |
Balance as of beginning of period (in shares) at Dec. 31, 2019 | 95,508,000 | ||||||
Balance as of beginning of period at Dec. 31, 2019 | 1,827,803 | $ 240,221 | 494,265 | (31,028) | (11,130) | 1,135,475 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 88,505 | 88,505 | |||||
Other comprehensive income | (3,611) | (3,611) | |||||
Common stock issued: | |||||||
Dividend reinvestment plan (in shares) | [1] | 143,000 | |||||
Dividend reinvestment plan | [1] | 5,205 | (416) | 5,621 | |||
Cash dividend declared | (29,888) | (29,888) | |||||
Treasury stock and other (in shares) | (8,000) | ||||||
Treasury stock and other | 1,093 | 107 | 986 | ||||
Balance as of end of period (in shares) at Mar. 31, 2020 | 95,643,000 | ||||||
Balance as of end of period at Mar. 31, 2020 | 1,889,107 | $ 240,221 | 493,956 | (34,639) | (4,523) | 1,194,092 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | (27,219) | (27,219) | |||||
Other comprehensive income | 37 | 37 | |||||
Common stock issued: | |||||||
Incentive compensation plan (in shares) | 2,000 | ||||||
Incentive compensation plan | 119 | $ 6 | 113 | ||||
Dividend reinvestment plan (in shares) | [1] | 185,000 | |||||
Dividend reinvestment plan | [1] | 5,723 | (1,694) | 7,417 | |||
Cash dividend declared | (29,948) | (29,948) | |||||
Treasury stock and other | $ 1,108 | (10) | 1,118 | ||||
Balance as of end of period (in shares) at Jun. 30, 2020 | 95,830,500 | 95,830,000 | |||||
Balance as of end of period at Jun. 30, 2020 | $ 1,838,927 | $ 240,227 | $ 492,365 | $ (34,602) | $ 4,012 | $ 1,136,925 | |
[1] | Shares sold through the DRP are issued from treasury stock at average cost, which may differ from the actual market price paid. |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividend declared per share (usd per share) | $ 0.3125 | $ 0.3125 | $ 0.3125 | $ 0.2925 | $ 0.2925 | $ 0.2925 |
NATURE OF THE BUSINESS
NATURE OF THE BUSINESS | 9 Months Ended |
Jun. 30, 2020 | |
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, transportation and storage services and operates certain unregulated businesses primarily through the following: New Jersey Natural Gas Company provides natural gas utility service to approximately 555,000 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 18. 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 which include the Company's 50 percent combined ownership interest in Steckman Ridge, located in Pennsylvania, the Company's 20 percent ownership interest in PennEast and the wholly-owned subsidiaries of L eaf River, which was acquired on October 11, 2019 and Adelphia, which was acquired on January 13, 2020 , and is subject to FERC regulation . See Note 17. Acquisitions and Dispositions for more information regarding these acquisitions. 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 Corp., which owns commercial real estate. NJR Home Services Company and Commercial Realty & Resources Corp. are included in Home Services and Other operations. Impacts of the COVID-19 Pandemic In March 2020, COVID-19 was declared a pandemic by the World Health Organization and the Centers for Disease Control and Prevention and has spread globally, including throughout the United States. The Company’s Unaudited Condensed Consolidated Financial Statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities at the balance sheet date and reported amounts of revenue and expenses during the reporting periods presented. The Company considered the impacts of COVID-19 on the assumptions and estimates used and determined that there have been no material adverse impacts on the Company’s results of operations as of June 30, 2020 . |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2020 | |
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, 2019 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 2019 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, 2020 . Intercompany transactions and accounts have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a quarterly basis or more frequently whenever events or changes in circumstances indicate a need, the Company evaluates its estimates, including those related to the calculation of the fair value of derivative instruments, debt, equity method investments, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, long-lived assets, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation. ARO are evaluated as often as needed. The Company’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The Company has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, the Company will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is the Company’s policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is the Company’s policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates. Acquisitions The Company follows the guidance in ASC 805, Business Combinations, for determining the appropriate accounting treatment for acquisitions. ASU No. 2017-01, Clarifying the Definition of a Business , provides an initial fair value screen to determine if substantially all of the fair value of the assets acquired is concentrated in a single asset or group of similar assets. If the initial screening test is not met, the set is considered a business based on whether there are inputs and substantive processes in place. Based on the results of this analysis and conclusion on an acquisition’s classification of a business combination or an asset acquisition, the accounting treatment is derived. If the acquisition is deemed to be a business, the acquisition method of accounting is applied. Identifiable assets acquired and liabilities assumed at the acquisition date are recorded at fair value. If the transaction is deemed to be an asset purchase, the cost accumulation and allocation model is used whereby the assets and liabilities are recorded based on the purchase price and allocated to the individual assets and liabilities based on relative fair values. The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed are based on various assumptions and valuation methodologies requiring considerable management judgment. The most significant variables in these valuations are discount rates and the number of years on which to base the cash flow projections, as well as other assumptions and estimates used to determine the cash inflows and outflows. Management determines discount rates based on the risk inherent in the acquired assets, specific risks, industry beta and capital structure of guideline companies. The valuation of an acquired business is based on available information at the acquisition date and assumptions that are believed to be reasonable. However, a change in facts and circumstances as of the acquisition date can result in subsequent adjustments during the measurement period, but no later than one year from the acquisition date. Revenues Revenues from the sale of natural gas to NJNG customers are recognized in the period that gas is delivered and consumed by customers, including an estimate for unbilled revenue. NJNG records unbilled revenue for natural gas services. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for gas and the most current tariff rates. Clean Energy Ventures recognizes revenue when SRECs are transferred to counterparties. SRECs are physically delivered through the transfer of certificates as per contractual settlement schedules. Revenues for Energy Services are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur, as noted above. Energy Services also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues. Midstream generates revenues from firm storage contracts and transportation contracts, related usage fees and hub services for the use of storage space, injections and withdrawals from their natural gas storage facility and the delivery of natural gas to customers. Demand fees are recognized as revenue over the term of the related agreement while usage fees and hub services revenues are recognized as services are performed. Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. See Note 3. Revenue for further information. Gas in Storage The following table summarizes gas in storage, at average cost by segment as of: June 30, 2020 September 30, 2019 ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf Energy Services $ 50,400 33.1 $ 52,390 25.6 Natural Gas Distribution 73,501 17.5 117,413 27.0 Midstream 61 — — — Total $ 123,962 50.6 $ 169,803 52.6 Cash and Cash Equivalents Cash and cash equivalents consist of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash related to escrow balances for utility plant projects at NJNG and irrevocable letters of credit at Leaf River, which is recorded in other current and noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets, respectively. ASU No. 2016-18, an amendment to ASC 230, Statement of Cash Flows , required 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. 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 $ 42,821 $ 2,676 $ 26,297 $ 1,458 Restricted cash in other noncurrent assets 2,424 1,387 391 252 Statements of Cash Flow Cash, cash equivalents and restricted cash in the statement of cash flows $ 45,245 $ 4,063 $ 26,688 $ 1,710 Loans Receivable NJNG currently provides loans, with terms ranging from two to 10 years , to customers that elect to purchase and install certain energy-efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at fair value on the Unaudited Condensed Consolidated Balance Sheets. The Company recorded $13 million and $12.4 million in other current assets and $36.3 million and $38.8 million in other noncurrent assets as of June 30, 2020 and September 30, 2019 , respectively, on the Unaudited Condensed Consolidated Balance Sheets, related to the loans. The Company regularly evaluates the credit quality and collection profile of its customers. If NJNG determines a loan is impaired, the basis of the loan would be subject to regulatory review for recovery. As of June 30, 2020 and September 30, 2019 , the Company has not recorded any impairments for SAVEGREEN loans. 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 $4.3 million and $1.7 million in other noncurrent assets and $12.2 million and $4.8 million in utility plant construction work in progress on the Unaudited Condensed Consolidated Balance Sheets at June 30, 2020 and September 30, 2019 , respectively. The Company recorded $1.9 million and $4.5 million in O&M on the Unaudited Condensed Consolidated Statements of Operations during the three and nine months ended June 30, 2020 , respectively and $3.7 million in O&M on the Unaudited Condensed Consolidated Statements of Operations during both the three and nine months ended June 30, 2019 . 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, 2020 and 2019 : (Thousands) Investments in Equity Securities Cash Flow Hedges Postemployment Benefit Obligation Total Balance at March 31, 2020 $ — $ (9,711 ) $ (24,928 ) $ (34,639 ) Other comprehensive income (loss), net of tax Other comprehensive (loss) income, before reclassifications, net of tax of $0, $180, $0, $180 — (626 ) — (626 ) Amounts reclassified from accumulated other comprehensive loss, net of tax of $0, $0, $(191), $(191) — — 663 (1) 663 Net current-period other comprehensive income, net of tax of $0, $180, $(191), $(11) — (626 ) 663 37 Balance at June 30, 2020 $ — $ (10,337 ) $ (24,265 ) $ (34,602 ) Balance at March 31, 2019 $ — $ — $ (15,517 ) $ (15,517 ) Other comprehensive income (loss), 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 ) (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. 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, 2020 and 2019 : (Thousands) Investments in Equity Securities Cash Flow Hedges Postemployment Benefit Obligation Total Balance at September 30, 2019 $ — $ — $ (31,787 ) $ (31,787 ) Other comprehensive income (loss), net of tax Other comprehensive (loss) income, before reclassifications, net of tax of $0, $2,961, $(1,681), $1,280 — (10,337 ) 5,378 (4,959 ) Amounts reclassified from accumulated other comprehensive loss, net of tax of $0, $0, $(480), $(480) — — 2,144 (1) 2,144 Net current-period other comprehensive income, net of tax of $0, $2,961, $(2,161), $800 — (10,337 ) 7,522 (2,815 ) Balance at June 30, 2020 $ — $ (10,337 ) $ (24,265 ) $ (34,602 ) 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 ) (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 . Reclassification Certain prior period amounts related to energy and other taxes on the Unaudited Condensed Consolidated Statements of Operations and prepaid expenses on the Unaudited Condensed Consolidated Balance Sheets and Unaudited Consolidated Condensed Statements of Cash Flows have been reclassified to conform to the current period presentation. Certain amounts related to software costs on the Unaudited Condensed Consolidated Balance Sheets have been reclassified to utility plant construction work in progress to conform to the current period presentation. Recently Adopted 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 an original term greater than one year are recorded on the balance sheet. The related asset is amortized straight-line over the term of the lease. Additional disclosures are required to provide transparency as to the amount, timing and uncertainty of cash flows arising from leasing activities. 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 as of October 1, 2019. The Company adopted this practical expedient. 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, if any. The Company elected this transition method and did not have any cumulative impact to the opening balance of retained earnings. The Company’s other practical expedient elections include the package of practical expedients whereby the Company was not required to reassess all of its leases identified, lease classifications and initial direct costs associated with leases. The Company also elected to not separate non-lease components from lease components and elected to exclude short-term leases from the recognition requirements of ASC 842. The Company did not elect the portfolio approach for the application of the discount rate and therefore applies a discount rate individually to each lease in its population. The Company adopted ASC 842 and all related amendments on October 1, 2019, using the modified retrospective transition method. The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property leases, including land and office facility leases and office equipment and the sale-leaseback of its natural gas meters. The total right-of-use assets and operating lease liabilities recorded upon adoption were $67.1 million . Upon the acquisition of Leaf River, on October 11, 2019 , the Company adopted ASC 842 for Leaf River which resulted in additional right-of-use asset and lease liability of $21.6 million . 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 Company adopted this guidance on October 1, 2019. As October 1, 2019, the Company did not apply hedge accounting to its risk management activities, therefore the amendments did not have an impact on its financial position, results of operations or cash flows. 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 Index Swap rate based on the Secured Overnight Financing Rate as an additional acceptable U.S. benchmark interest rate for hedge accounting purposes. The Company adopted this guidance on October 1, 2019. As the Company did not apply hedge accounting to any of its risk management activities as of October 1, 2019, the amendments did not have an impact on its financial position, results of operations or cash flows. 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 Company adopted this guidance on October 1, 2019. There was no impact to the Company's financial position, results of operations or cash flows. Financial Instruments In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments . This accounting standard provides clarification of guidance for financial instruments and makes narrow scope amendments related to various issues. The Company adopted this standard effective upon issuance. There was no impact to the Company's financial position, results of operations or cash flows as a result of its adoption. Reference Rate Reform In March 2020, the FASB issued ASU No. 2020-04, an amendment to ASC 848, Reference Rate Reform , which provides relief for companies preparing for discontinuation of interest rates such as LIBOR. The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The amendments in this update are elective and are effective upon the ASU issuance through December 31, 2022. There was no impact to the Company's financial position, results of operations or cash flows as a result of its adoption. Other Recent Updates to the Accounting Standards Codification 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 in the process of assessing the impact of the guidance on NJR's reserve methodologies and credit policies and procedures for any assets that could be impacted. The Company is currently evaluating the amendment and all subsequent amendments related to this topic, but does not expect that the pending adoption of this ASU will have a material effect on its consolidated financial statements and its disclosures since the majority of NJR's financial assets are short-term in nature, such as trade receivables. 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 impact of the adoption of this ASU but does not expect that its pending adoption will have a material effect on its consolidated financial statements. The Company does not have either Level 3 fair value measurements or transfers between Level 1 or Level 2 in its current portfolios, and therefore, does not expect this ASU to have an impact on the Company's financial statements and disclosures. 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 amended presentation and disclosure guidance 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 but it is not expecting this ASU to materially affect the financial statements and disclosures. Income Taxes In December 2019, the FASB issued ASU No. 2019-12, an amendment to ASC 740, Income Taxes , which is intended to simplify the accounting for income taxes and changes the accounting for certain income tax transactions, among other minor improvements. The guidance is effective for the Company beginning October 1, 2021, with early adoption permitted. Upon adoption, the amendments will be applied on a prospective basis. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations, cash flows and disclosures upon adoption. Investments - Equity Method and Derivatives and Hedging In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 . The update states that an entity is required to evaluate observable transactions that necessitate applying or discontinuing the equity method of accounting, when applying the measurement alternative in Topic 321. This evaluation occurs prior to applying or upon ceasing the equity method. The update also states that when applying paragraph 815-10-15-141(a) for forward contracts and purchased options, an entity is not required to assess whether the underlying securities will be accounted for under the equity method in accordance with Topic 323 or fair value method under Topic 825 upon settlement or exercise. The guidance is effective for the Company beginning October 1, 2021, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this ASU but does not expect that its pending adoption will have a material effect on its consolidated financial statements. |
REVENUE
REVENUE | 9 Months Ended |
Jun. 30, 2020 | |
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 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. All wind assets were sold as of 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 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. Midstream Natural gas services The performance obligation of Midstream is to provide the customer with storage and transportation services. Midstream generates revenues from firm storage contracts and transportation contracts, related usage fees for the use of storage space, injection and withdrawal at the storage facility and the delivery of natural gas to customers. Revenue is recognized over time as our customers receive the benefits of our service as it is performed on their behalf using an output method based on actual deliveries. Demand fees are recognized as revenue over the term of the related agreement. 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: Midstream Natural gas services The performance obligation of Midstream is to provide the customer with storage and transportation services. Midstream generates revenues from hub services for the use of storage space, injection and withdrawal from the storage facility. Hub services include park and loan transactions and wheeling. 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, 2020 , is as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Midstream Home Services and Other Total 2020 Natural gas utility sales $ 124,888 — — — — $ 124,888 Wholesale natural gas services — — 3,536 11,863 — 15,399 Service contracts — — — — 8,126 8,126 Installations and maintenance — — — — 4,243 4,243 Electricity sales — 5,294 — — — 5,294 Eliminations (1) — — — (720 ) (206 ) (926 ) Revenues from contracts with customers 124,888 5,294 3,536 11,143 12,163 157,024 Alternative revenue programs (2,665 ) — — — — (2,665 ) Derivative Instruments 6,309 8,102 (2) 130,007 — — 144,418 Eliminations (1) — — 197 — — 197 Revenues out of scope 3,644 8,102 130,204 — — 141,950 Total operating revenues $ 128,532 13,396 133,740 11,143 12,163 $ 298,974 2019 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 (2) 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. (2) Includes SREC revenue. Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the nine months ended June 30, 2020 and 2019 , is as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Midstream Home Services and Other Total 2020 Natural gas utility sales $ 611,650 — — — — $ 611,650 Natural gas services — — 20,491 32,011 — 52,502 Service contracts — — — — 24,237 24,237 Installations and maintenance — — — — 13,404 13,404 Electricity sales — 13,770 — — — 13,770 Eliminations (1) — — — (2,062 ) (947 ) (3,009 ) Revenues from contracts with customers 611,650 13,770 20,491 29,949 36,694 712,554 Alternative revenue programs 17,465 — — — — 17,465 Derivative Instruments 16,260 11,833 (2) 797,168 — — 825,261 Eliminations (1) — — (1,656 ) — — (1,656 ) Revenues out of scope 33,725 11,833 795,512 — — 841,070 Total operating revenues $ 645,375 25,603 816,003 29,949 36,694 $ 1,553,624 2019 Natural gas utility sales $ 598,676 — — — — $ 598,676 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 (2) 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. (2) Includes SREC revenue. Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended June 30, 2020 and 2019 , is as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Midstream Home Services and Other Total 2020 Residential $ 89,095 2,587 — — 11,845 $ 103,527 Commercial and industrial 20,050 2,707 3,536 11,143 318 37,754 Firm transportation 14,331 — — — — 14,331 Interruptible and off-tariff 1,412 — — — — 1,412 Revenues out of scope 3,644 8,102 130,204 — — 141,950 Total operating revenues $ 128,532 13,396 133,740 11,143 12,163 $ 298,974 2019 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, 2020 and 2019 , is as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Midstream Home Services and Other Total 2020 Residential $ 442,093 7,516 — — 35,955 $ 485,564 Commercial and industrial 107,107 6,254 20,491 29,949 739 164,540 Firm transportation 58,043 — — — — 58,043 Interruptible and off-tariff 4,407 — — — — 4,407 Revenues out of scope 33,725 11,833 795,512 — — 841,070 Total operating revenues $ 645,375 25,603 816,003 29,949 36,694 $ 1,553,624 2019 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 resulting 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, 2020 , are as follows: Customer Accounts Receivable Customers' Credit (Thousands) Billed Unbilled Balances and Deposits Balance as of October 1, 2019 $ 139,263 $ 6,510 $ 27,116 Increase (decrease) 3,796 2,228 (7,060 ) Balance as of June 30, 2020 $ 143,059 $ 8,738 $ 20,056 The following table provides information about receivables, 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, 2020 : (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Midstream Home Services and Other Total Customer accounts receivable Billed $ 78,370 3,469 55,364 3,828 2,028 $ 143,059 Unbilled 8,738 — — — — 8,738 Customers' credit balances and deposits (20,056 ) — — — — (20,056 ) Total $ 67,052 3,469 55,364 3,828 2,028 $ 131,741 |
REGULATION
REGULATION | 9 Months Ended |
Jun. 30, 2020 | |
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 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 $ 17,062 $ 15,468 Under-recovered gas costs — 9,506 Conservation Incentive Program 20,836 3,371 Derivatives at fair value, net 9,845 4,526 Other 4,508 — Total current regulatory assets $ 52,251 $ 32,871 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 36,053 $ 38,351 Liability for future expenditures 128,886 131,080 Deferred income taxes 22,477 19,631 Derivatives at fair value, net — 486 SAVEGREEN 15,229 10,201 Postemployment and other benefit costs 161,847 212,461 Deferred storm damage costs 7,058 8,687 Cost of removal 62,831 65,660 Other noncurrent regulatory assets 16,720 10,080 Total noncurrent regulatory assets $ 451,101 $ 496,637 Regulatory liabilities-current Over-recovered gas costs 6,774 — Total current regulatory liabilities $ 6,774 $ — Regulatory liabilities-noncurrent Tax Act impact (1) $ 196,705 $ 200,417 New Jersey Clean Energy Program 128 197 Other noncurrent regulatory liabilities 448 1,821 Total noncurrent regulatory liabilities $ 197,281 $ 202,435 (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 October 25, 2019 , the BPU approved NJNG’s annual filing to increase its EE recovery rate, which resulted in an annual recovery of approximately $11.3 million , effective November 1, 2019 . • On November 13, 2019 , the BPU issued an order adopting a stipulation of settlement approving a $62.2 million increase to base rates, effective on November 15, 2019 . The increase includes an overall rate of return on rate base of 6.95 percent , return on common equity of 9.6 percent , a common equity ratio of 54 percent and a depreciation rate of 2.78 percent . • On March 16, 2020 , a stipulation was signed in NJNG's annual SBC application which included an increase in the RAC rate of $1.2 million annually and a decrease to the NJCEP factor of $600,000 . The stipulation is pending BPU approval. • On March 30, 2020 , NJNG filed a petition with the BPU requesting a base rate increase of approximately $7.4 million for the recovery associated with NJ RISE and SAFE II capital investments cost of approximately $57.9 million made through June 30, 2020 . On July 24, 2020, the Company updated this filing for actual information through June 30, 2020 and the revised rate increase requested is $7.1 million based on $55.1 million of actual capital investments. Changes to base rates are anticipated to be effective October 1, 2020 . • On May 29, 2020 , 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 $20.4 million decrease to the annual revenues credited to BGSS, a $3.9 million annual decrease related to its balancing charge, as well as changes to CIP rates, which will result in a $22.3 million annual recovery increase, anticipated to be effective October 1, 2020 . • On May 29, 2020 , NJNG filed a petition with the BPU to increase its EE recovery rate, which will result in an annual decrease of approximately $70,000 , anticipated to be effective October 1, 2020. • On June 25, 2020 , NJNG filed its annual USF compliance filing proposing a decrease to the statewide USF rate, which will result in the annual recovery decreasing by approximately $400,000 , to be effective October 1, 2020 . • On July 2, 2020, the BPU issued an order which authorized New Jersey utilities to create a regulatory asset by deferring incremental COVID-19 related costs and required a related quarterly report be filed for the COVID-19-related costs and savings incurred. Regulatory assets at Adelphia, not included in the table above, were immaterial as of June 30, 2020 . |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Jun. 30, 2020 | |
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 and 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 February 2020 and March 2020, NJNG entered into treasury lock transactions to fix the benchmark treasury rate associated with a forecasted debt issuance expected during the fiscal year. The change in fair value of NJNG's treasury lock agreement is recorded as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets since NJNG believes that the market value upon settlement will be reflected in future rates. Upon settlement, any gain or loss will be amortized in earnings over the life of the future debt issuance as a component of interest expense on the Consolidated Statements of Operations. 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 terminated on August 16, 2019 , which coincided with the maturity of the debt. The change in the fair value of the interest rate swap was recorded as a component of interest expense on the Unaudited Condensed Consolidated Statements of Operations. In February 2020 and March 2020 , NJR entered into treasury lock transactions, designated as cash flow hedges, to fix the benchmark treasury rate associated with a forecasted debt issuance expected during the fiscal year. The treasury lock transaction is recorded as a derivative asset or liability at fair value on the Unaudited Condensed Consolidated Balance Sheets. Upon settlement, any gain or loss will be amortized in earnings over the life of the future debt issuance as a component of interest expense on the Consolidated Statements of Operations. Fair Value of Derivatives The following table presents the fair value of NJR's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of: Fair Value June 30, 2020 September 30, 2019 (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 $ 66 $ 133 $ 67 $ 245 Financial commodity contracts Derivatives - current — 190 382 570 Interest rate contracts Derivatives - current — 5,056 — — Energy Services: Physical commodity contracts Derivatives - current 5,440 17,242 6,847 27,540 Derivatives - noncurrent 2,671 22,448 1,710 12,641 Financial commodity contracts Derivatives - current 23,852 13,447 17,806 29,057 Derivatives - noncurrent 3,647 1,129 5,716 6,105 Foreign currency contracts Derivatives - current 9 230 1 211 Derivatives - noncurrent 29 23 — 75 Derivatives designated as hedging instruments: Home Services and Other: Interest rate contracts Derivatives - current — 10,796 — — Total fair value of derivatives $ 35,714 $ 70,694 $ 32,529 $ 76,444 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, 2020: Derivative assets: Energy Services Physical commodity contracts $ 8,111 $ (3,097 ) $ (200 ) $ 4,814 Financial commodity contracts 27,499 (14,576 ) — 12,923 Foreign currency contracts 38 (38 ) — — Total Energy Services $ 35,648 $ (17,711 ) $ (200 ) $ 17,737 Natural Gas Distribution Physical commodity contracts $ 66 $ (39 ) $ — $ 27 Total Natural Gas Distribution $ 66 $ (39 ) $ — $ 27 Derivative liabilities: Energy Services Physical commodity contracts $ 39,690 $ (3,097 ) $ — $ 36,593 Financial commodity contracts 14,576 (14,576 ) — — Foreign currency contracts 253 (38 ) — 215 Total Energy Services $ 54,519 $ (17,711 ) $ — $ 36,808 Natural Gas Distribution Physical commodity contracts $ 133 $ (39 ) $ — $ 94 Financial commodity contracts 190 — (190 ) — Interest rate contracts 5,056 — — 5,056 Total Natural Gas Distribution $ 5,379 $ (39 ) $ (190 ) $ 5,150 Home Services and Other Interest rate contracts $ 10,796 $ — $ — $ 10,796 Total Home Services and Other $ 10,796 $ — $ — $ 10,796 As of September 30, 2019: Derivative assets: Energy Services Physical commodity contracts $ 8,557 $ (2,906 ) $ (200 ) $ 5,451 Financial commodity contracts 23,522 (19,646 ) — 3,876 Foreign currency contracts 1 (1 ) — — Total Energy Services $ 32,080 $ (22,553 ) $ (200 ) $ 9,327 Natural Gas Distribution Physical commodity contracts $ 67 $ (9 ) $ — $ 58 Financial commodity contracts 382 (382 ) — — Total Natural Gas Distribution $ 449 $ (391 ) $ — $ 58 Derivative liabilities: Energy Services Physical commodity contracts $ 40,181 $ (2,906 ) $ — $ 37,275 Financial commodity contracts 35,162 (19,646 ) (15,516 ) — Foreign currency contracts 286 (1 ) — 285 Total Energy Services $ 75,629 $ (22,553 ) $ (15,516 ) $ 37,560 Natural Gas Distribution Physical commodity contracts $ 245 $ (9 ) $ — $ 236 Financial commodity contracts 570 (382 ) (188 ) — Total Natural Gas Distribution $ 815 $ (391 ) $ (188 ) $ 236 (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 presents the effect of derivative instruments recognized on the Unaudited Condensed Consolidated Statements of Operations for the periods set forth below: (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: 2020 2019 2020 2019 Energy Services: Physical commodity contracts Operating revenues $ (18,061 ) $ 1,435 $ 3,871 $ 74 Physical commodity contracts Gas purchases 1,014 2,392 (2,288 ) 266 Financial commodity contracts Gas purchases 2,408 22,919 71,820 17,732 Foreign currency contracts Gas purchases 181 37 (179 ) (188 ) Home Services and Other: Interest rate contracts Interest expense — (43 ) (228 ) Total unrealized and realized gains (losses) $ (14,458 ) $ 26,740 $ 73,224 $ 17,656 NJNG’s derivative contracts are part of the Company's risk management activities that relate to its natural gas purchases and BGSS incentive programs. 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 for the periods set forth below: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2020 2019 2020 2019 Natural Gas Distribution: Physical commodity contracts $ 308 $ 812 $ 1,357 $ 5,225 Financial commodity contracts 1,029 (10,368 ) (11,493 ) (7,129 ) Interest rate contracts 1,636 — (5,056 ) — Total unrealized and realized (losses) gains $ 2,973 $ (9,556 ) $ (15,192 ) $ (1,904 ) NJR designates its treasury lock contracts as cash flow hedges, therefore, changes in fair value of the effective portion of the hedges are recorded in OCI and upon settlement of the contracts, realized gains and (losses) are reclassified from OCI to interest expense on the Unaudited Condensed Consolidated Statements of Operations. The following table reflects the effect of derivative instruments designated as cash flow hedges in OCI for the periods set forth below: (Thousands) Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Three Months Ended Three Months Ended June 30, June 30, Derivatives in cash flow hedging relationships: 2020 2019 2020 2019 Interest rate contracts $ (807 ) $ — $ — $ — Nine Months Ended Nine Months Ended June 30, June 30, Derivatives in cash flow hedging relationships: 2020 2019 2020 2019 Interest rate contracts $ (13,299 ) $ — $ — $ — NJNG and Energy Services had the following outstanding long (short) derivatives as of: Volume (Bcf) June 30, September 30, Natural Gas Distribution Futures 18.8 27.6 Physical 10.3 11.6 Energy Services Futures (38.4 ) (29.6 ) Physical 12.6 44.5 Swaps (2.3 ) (5.0 ) Not included in the previous table are Energy Services' net notional amount of foreign currency transactions of approximately $6.4 million , notional amounts related to treasury lock transactions of approximately $60 million and $195 million at NJNG and NJR respectively, and 1,276,000 SRECs at Energy Services that were open as of June 30, 2020 . 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 $ — $ 1,982 Accounts payable and other $ (219 ) $ — Energy Services Restricted broker margin accounts $ 52,211 $ 71,741 Wholesale Credit Risk NJNG, Energy Services, Clean Energy Ventures and Midstream are exposed to credit risk as a result of their sales/wholesale marketing activities. As a result of services performed or sold, 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, RECs or Midstream services), 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 commercial teams 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 S&P or Moody's. In these cases, the counterparty's or guarantor's financial statements are reviewed, and similar methodologies and ratios used by S&P and/or Moody's are applied to arrive at a substitute rating. Gross credit exposure is defined as the unrealized fair value of physical and financial derivative commodity contracts, plus any outstanding wholesale receivable for the value of natural gas delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received. The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of June 30, 2020 . 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 $ 126,026 Noninvestment grade 8,915 Internally rated investment grade 22,877 Internally rated noninvestment grade 12,319 Total $ 170,137 Conversely, certain of NJR's, 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, 2020 , was $15.9 million , 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, 2020 , the Company would have been required to post an additional $15.9 million 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, 2020 | |
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 at fair value in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. The estimated fair value of long-term debt, 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) (4) $ 1,492,845 $ 1,442,845 Fair market value $ 1,719,734 $ 1,568,864 (1) Excludes finance leases of $77.6 million and $35.4 million as of June 30, 2020 and September 30, 2019 , respectively. (2) Excludes solar asset financing obligations of $130.8 million and $91.4 million as of June 30, 2020 and September 30, 2019 , respectively. (3) Excludes NJNG's debt issuance costs of $9.2 million and $9 million as of June 30, 2020 and September 30, 2019 , respectively. (4) Excludes NJR's debt issuance costs of $1.5 million and $2 million as of June 30, 2020 and September 30, 2019 , respectively. Clean Energy Ventures enters into transactions to sell certain commercial solar assets and lease the assets back for a term specified in the lease. These transactions are considered financing obligations for accounting purposes and are recorded within long-term debt on the Unaudited Condensed Consolidated Balance Sheets. The estimated fair value of solar asset financing obligations as of June 30, 2020 and September 30, 2019 was $148.3 million and $98.6 million , respectively. The Company 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, 2020 , 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 to internally 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, 2020: Assets: Physical commodity contracts $ — $ 8,177 $ — $ 8,177 Financial commodity contracts 25,349 2,150 — 27,499 Financial commodity contracts - foreign exchange — 38 — 38 Money market funds 36,172 — — 36,172 Other (1) 1,814 — — 1,814 Total assets at fair value $ 63,335 $ 10,365 $ — $ 73,700 Liabilities: Physical commodity contracts $ — $ 39,823 $ — $ 39,823 Financial commodity contracts 14,766 — — 14,766 Financial commodity contracts - foreign exchange — 253 — 253 Interest rate contracts — 15,852 — 15,852 Total liabilities at fair value $ 14,766 $ 55,928 $ — $ 70,694 As of September 30, 2019: Assets: Physical commodity contracts $ — $ 8,624 $ — $ 8,624 Financial commodity contracts 20,028 3,876 — 23,904 Financial commodity contracts - foreign exchange — 1 — 1 Other (1) 1,706 — — 1,706 Total assets at fair value $ 21,734 $ 12,501 $ — $ 34,235 Liabilities: Physical commodity contracts $ — $ 40,426 $ — $ 40,426 Financial commodity contracts 35,732 — — 35,732 Financial commodity contracts - foreign exchange — 286 — 286 Total liabilities at fair value $ 35,732 $ 40,712 $ — $ 76,444 |
INVESTMENTS IN EQUITY INVESTEES
INVESTMENTS IN EQUITY INVESTEES | 9 Months Ended |
Jun. 30, 2020 | |
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 $ 112,909 $ 114,428 PennEast (1) 92,891 85,840 Total $ 205,800 $ 200,268 (1) Includes a deferred tax component related to AFUDC equity of $4.6 million and $4.1 million for June 30, 2020 and September 30, 2019 , respectively. The Company, through its subsidiary NJR Pipeline Company holds a 50 percent ownership interest in Steckman Ridge, a storage facility that operates under market-based rates. NJR's investment in Steckman Ridge includes loans with a total outstanding principal balance of $70.4 million for both June 30, 2020 and September 30, 2019 . 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 party to a precedent capacity agreement with PennEast. See Note 16. Related Party Transactions for more information on these intercompany transactions. The Company, through its subsidiary NJR Pipeline Company, is a 20 percent 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. On September 10, 2019, the United States Court of Appeals for the Third Circuit issued an order overturning the United States District Court for the District of New Jersey’s order granting PennEast condemnation and immediate access in accordance with the Natural Gas Act to certain properties in which the State of New Jersey holds an interest. A Petition for Rehearing was denied by the Third Circuit on November 5, 2019. On October 8, 2019, the NJDEP issued a letter indicating that it deemed PennEast’s freshwater wetlands permit application to be administratively incomplete and closed the matter without prejudice. On October 11, 2019, PennEast submitted a letter to the NJDEP objecting to its position that the application is administratively incomplete. PennEast's objections were rejected by the NJDEP on November 18, 2019. On October 4, 2019, PennEast filed a petition for Declaratory Order with FERC requesting an interpretation of the eminent domain authority of a FERC certificate holder under the Natural Gas Act. The Declaratory Order was granted on January 30, 2020. On January 30, 2020, PennEast filed an amendment with FERC to construct the PennEast pipeline in two phases. Phase one consists of construction of a 68 -mile pipeline in Pennsylvania from the eastern Marcellus Shale region in Luzerne County that would terminate in Northampton County. Phase two includes construction of the remaining original certificated route in Pennsylvania and New Jersey. Construction is expected to begin following approval by FERC of the phased approach and receipt of any remaining governmental and regulatory permits. On February 18, 2020, PennEast filed a writ of certiorari with the Supreme Court of the United States to review the September 10, 2019 Third Circuit decision. On June 29, 2020, the Supreme Court requested that the Solicitor General of the United States file a brief that expresses the views on the question of the use of eminent domain to acquire state owned lands for pipeline construction. The Company evaluated its investment in PennEast for an other-than-temporary impairment and determined an impairment charge was not necessary. It is reasonably possible that future unfavorable developments, such as a reduced likelihood of success from development options and legal outcomes, estimated increases in construction costs, increases in the discount rate, or further significant delays, could result in an impairment of our equity method investment. Also, the use of alternate judgments and assumptions could result in a different calculation of fair value, which could ultimately result in the recognition of an impairment charge in the Unaudited Condensed Consolidated Financial Statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Jun. 30, 2020 | |
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) 2020 2019 2020 2019 Net income, as reported $ (27,219 ) $ (8,402 ) $ 150,647 $ 151,419 Basic earnings per share Weighted average shares of common stock outstanding-basic 95,764 89,600 94,420 88,995 Basic earnings per common share $(0.28) $(0.09) $1.60 $1.70 Diluted earnings per share Weighted average shares of common stock outstanding-basic 95,764 89,600 94,420 88,995 Incremental shares (1) — — 298 407 Weighted average shares of common stock outstanding-diluted 95,764 89,600 94,718 89,402 Diluted earnings per common share (2) $(0.28) $(0.09) $1.59 $1.69 (1) C onsist primarily of unvested stock awards and performance shares. (2) There were anti-dilutive shares of 251,780 and 95,817 excluded from the calculation of diluted earnings per share related to the e quity forward sale agreement during the three and nine months ended June 30, 2020 , respectively. Since t here was a net loss for the three months ended June 30, 2020 and 2019 , incremental shares of 310,000 and 409,000 , 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 . |
DEBT
DEBT | 9 Months Ended |
Jun. 30, 2020 | |
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 On April 24, 2020 , NJR entered into a 364 -day $250 million revolving credit facility with an interest rate based on LIBOR plus 1.625 percent . After six months , all outstanding amounts under the credit facility will convert to a term loan and will be due on April 23, 2021 . Proceeds will be used to fund ongoing ordinary working capital requirements and other general corporate purposes. In connection with entry into this credit facility, all outstanding borrowings under NJR's December 13, 2019 , $150 million revolving line of credit facility were repaid. 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 $ 416,300 $ 25,450 Weighted average interest rate at end of period 1.06 % 3.04 % Amount available at end of period (2) $ 244 $ 394,800 Bank revolving credit facilities (1) $ 250,000 $ — April 2021 Notes outstanding at end of period $ — $ — Weighted average interest rate at end of period — % — % Amount available at end of period (2) $ 250,000 $ — NJNG Bank revolving credit facilities (1) $ 250,000 $ 250,000 December 2023 Commercial paper outstanding at end of period $ — $ — Weighted average interest rate at end of period 0.25 % — % Amount available at end of period (3) $ 249,269 $ 249,269 (1) Committed credit facilities, which require commitment fees on the unused amounts. (2) Letters of credit outstanding total $8.5 million and $4.8 million for June 30, 2020 and September 30, 2019 , respectively, which reduces amount available by the same amount. (3) Letters of credit outstanding total $731,000 for both June 30, 2020 and September 30, 2019 , which reduces the amount available by the same amount. 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. On October 9, 2019 , NJR entered into a $350 million Bridge Facility, which was used primarily to finance the Leaf River acquisition. The Bridge Facility accrues interest at the LIBOR rate for a 1-month interest period plus 0.875 percent during the first 180 days, and 1.075 percent after 180 days. Loans under the Bridge Facility are required to be prepaid to the extent of new cash proceeds received upon the issuance of equity of NJR, the incurrence of indebtedness by NJR or its subsidiaries, the disposition of assets by NJR or its subsidiaries or upon other specified events, in each case subject to certain exceptions set forth in the Bridge Facility. As of June 30, 2020 , there were $137.1 million in borrowings remaining against the facility. The net proceeds from the December 2019 equity issuance were used to pay down the Bridge Facility. On July 23, 2020, the remaining $137.1 million in borrowings were repaid. Long-term Debt NJNG NJNG received $4 million and $9.9 million in December 2019 and 2018 , 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 $1.2 million and $1.1 million during the nine months ended June 30, 2020 and 2019 , respectively. On May 14, 2020 , NJNG entered into a Note Purchase Agreement for $125 million of its senior notes, of which $100 million were at an interest rate of 3.13 percent , maturing in 2050 , and $25 million were at an interest rate of 3.33 percent , maturing in 2060 . On June 30, 2020 , NJNG issued $50 million of the 3.13 percent senior notes due June 30, 2050 . On July 23, 2020 , NJNG issued the remaining $50 million of 3.13 percent senior notes due July 23, 2050 , and $25 million of 3.33 percent senior notes due July 23, 2060 . The senior notes are secured by an equal principal amount of NJNG’s FMBs issued under NJNG’s Mortgage Indenture. NJR On May 14, 2020 , NJR entered into a Note Purchase Agreement for $260 million of its senior notes, of which $130 million were at an interest rate of 3.5 percent , maturing in 2030 , and $130 million were at an interest rate of 3.6 percent , maturing in 2032 . On July 23, 2020 , NJR issued all $260 million of the senior notes. The senior notes are unsecured and guaranteed by certain unregulated subsidiaries of NJR. On April 29, 2020, NJR settled a treasury lock resulting in a $2.5 million loss, which was recorded to accumulated other comprehensive income on the Unaudited Condensed Consolidated Balance Sheets. When the related forecasted debt issuance occurs, the loss will be amortized to interest expense on the Unaudited Condensed Consolidated Statements of Operations. Clean Energy Ventures In June 2020, Clean Energy Ventures received proceeds of $42.9 million in connection with the sale-leaseback of three commercial solar projects. Clean Energy Ventures did no t receive proceeds related to the sale-leaseback of commercial solar assets during the nine months ended June 30, 2019 . Clean Energy Ventures enters into transactions to sell the commercial solar assets concurrent with agreements to lease the assets back over a period of five to 15 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Jun. 30, 2020 | |
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) 2020 2019 2020 2019 2020 2019 2020 2019 Service cost $ 2,056 $ 1,845 $ 6,167 $ 5,536 $ 1,213 $ 1,101 $ 3,640 $ 3,303 Interest cost 2,647 3,043 7,940 9,129 1,757 2,081 5,270 6,243 Expected return on plan assets (5,145 ) (4,763 ) (15,434 ) (14,290 ) (1,628 ) (1,379 ) (4,883 ) (4,137 ) Recognized actuarial loss 2,606 1,442 7,818 4,324 1,861 1,617 5,582 4,850 Prior service cost amortization 25 25 76 76 (49 ) (91 ) (148 ) (273 ) Net periodic benefit cost $ 2,189 $ 1,592 $ 6,567 $ 4,775 $ 3,154 $ 3,329 $ 9,461 $ 9,986 The Company does not expect to be required to make additional contributions to fund the pension plans during fiscal 2020 or 2021 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, 2020 and 2019 . There are no federal requirements to pre-fund OPEB benefits. However, the Company is required to fund certain amounts due to regulatory agreements with the BPU and estimates that it will contribute between $5 million and $10 million over each of the next five years . Additional contributions may be required based on market conditions and changes to assumptions. The Company's OPEB liability was revalued for changes related to the Affordable Care Act-mandated excise tax applicable to high-cost health plans, commonly known as the Cadillac Tax. The Company applied a practical expedient to remeasure the plan assets and obligations as of December 31, 2019, which was the nearest calendar month-end date. The impact of the revaluation of the OPEB liability was recorded as of January 1, 2020. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2020 | |
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 investment tax credits associated with solar asset investment. 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. 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 prior to September 30, 2016. 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, in June 2019, the Company recorded a benefit from income taxes of approximately $10 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 other noncurrent liabilities on the Unaudited Condensed Consolidated Balance Sheets. As of June 30, 2020 , the Company had a reserve of $4.9 million for a portion of tax benefits that are uncertain at this time, which is included in deferred income 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. As of June 30, 2019 , there were no reserves associated with uncertain tax positions. Effective Tax Rate The forecasted effective tax rates were (1.2) percent and (4.6) percent , for the nine months ended June 30, 2020 and 2019 , respectively. The increase in the effective tax rate, when compared with the prior fiscal year, is due primarily to a combination of an increase in forecasted pre-tax income and a decrease in forecasted tax credits for the fiscal year ending September 30, 2020 . Forecasted tax credits, net of deferred income taxes, were $37.5 million and $46.3 million for fiscal 2020 and 2019 , 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, 2020 and 2019 , discrete items totaled $2.3 million and $5.4 million , respectively, related to a revaluation of certain state deferred tax assets and liabilities as a result of a change in the New Jersey state apportionment factor and excess tax benefits associated with the vesting of share-based awards. NJR’s actual effective tax rate was (2.8) percent and (8.5) percent during the nine months ended June 30, 2020 and 2019 , respectively. CARES Act On March 27, 2020, the President of the United States signed the CARES Act, which is aimed at providing emergency assistance and health care for individuals, families, and businesses affected by the COVID-19 pandemic and generally supporting the U.S. economy. The CARES Act, among other things, includes several business tax provisions which include, but are not limited to modifications of federal net operating loss carrybacks and deductibility, changes to prior year refundable alternative minimum tax liabilities, increase of limitations on business interest deductions from 30 percent to 50 percent of earnings before interest, taxes, depreciation, and amortization, technical corrections of the classification of qualified improvement property making them eligible for bonus depreciation, increase of the limits on charitable contribution deductions from 10 percent to 25 percent of adjusted taxable income, modifications of the treatment of federal loans, loan guarantees, and other investments, suspension of industry specific excise taxes, deferral of the company portion of OASDI, and implementation of a refundable employee retention tax credit. The CARES Act provides for the delay in the required deposit of the employer portion of the OASDI payroll tax from the date of enactment through the end of 2020. Of the taxes that the Company can defer, 50 percent of the deferred taxes are required to be deposited by the end of 2021 and the remaining 50 percent are required to be deposited by the end of 2022. Additionally, The CARES Act provides a refundable tax credit, the employee retention tax credit, to certain employers who are ordered by a competent governmental authority to suspend or reduce business operations due to concern about the spread of COVID-19 or suffered a significant decline in the business during a calendar quarter during 2020 compared to the same calendar quarter during the previous year. As of June 30, 2020 , the Company deferred $1.3 million related to the employer portion of the OASDI tax. The Company is currently investigating the applicability of the Employee Retention Tax credit. Other Tax Items As of June 30, 2020 and September 30, 2019 , the Company had ITC carryforwards of approximately $184.7 million and $154.2 million , respectively, which each have a life of 20 years. When the Company carries back the federal net operating losses noted below, it expects to recapture investment tax credits totaling $24.1 million . These recaptured tax credits are in addition to the $184.7 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 2034. The Company had federal income tax net operating losses of approximately $134 million as of June 30, 2020 and September 30, 2019 , 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 $22.8 million for both June 30, 2020 and September 30, 2019 , 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 the Company will recapture tax credits totaling $24.1 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. The Company had state income tax net operating losses of approximately $489.7 million and $340.2 million for June 30, 2020 and September 30, 2019 , 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. The Company expects to utilize this entire carryforward, other than as described below. In February 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 a portion of certain state net operating loss carryforwards will not be realizable prior to their expiration. The Company had a valuation allowance of $1.8 million and $4 million for June 30, 2020 and September 30, 2019 , respectively, 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. As a result of changes to filing requirements in the State of New Jersey that require tax returns filed for periods ending on or after July 31, 2019 be filed on a combined basis when part of an affiliated group, the Company recorded a benefit from income taxes of approximately $15.3 million during the nine months ended June 30, 2020 , resulting from the re-measurement of deferred income tax attributes. The Company also evaluated its New Jersey state net operating loss carryforwards on a post-apportionment basis and determined it is more likely than not that a portion of these net operating loss carryforwards may not be realizable prior to their expiration. As a result, the Company recorded a valuation allowance associated with New Jersey state net operating loss carryforwards of approximately $13.6 million as of June 30, 2020 . The Consolidated Appropriations Act extended the 30 percent ITC for solar property that is under construction on or before December 31, 2019. The credit will decline to 26 percent for property under construction during 2020 and to 22 percent for property under construction during 2021. For any property that is under construction before 2022, but not placed in service before 2024, the ITC will be reduced to 10 percent . Projects placed in service after December 31, 2019, may also qualify for a 30 percent federal ITC if five percent or more of the total costs of a solar property are incurred before the end of the applicable year and there are continuous efforts to advance towards completion of the project, based on the IRS guidance around ITC safe harbor determination. The Company has taken steps to preserve the current ITC rates for solar projects that are completed after the scheduled reduction in rates, in accordance with IRS guidance. As of June 30, 2020 , the IRS has an open examination of the Company's federal income tax return for fiscal 2016. All periods subsequent to those ended September 30, 2014 , are statutorily open for both state and federal examinations. |
LEASES
LEASES | 9 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
LEASES | 12. LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset and accounts for leases in accordance with ASC 842, Leases . Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases. For more information on the adoption of ASC 842, Leases , see Note 2. Summary of Significant Accounting Policies . The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale-leaseback of its natural gas meters. Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. These variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of gas stored in the storage caverns. Generally, the Company’s solar land leases terms are between 15 and 25 years and include options to extend the terms for multiple additional 5 to 10 year terms each. The Company’s office leases vary in duration, ranging from 1 to 25 years and may or may not include extension or early purchase options. The majority of the Company’s meter leases are for terms of 7 years with purchase options available prior to the end of the 7 year term. Equipment leases include general office equipment that also vary in duration, most are for a term of 5 years. The Company's storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated. The Company's lease terms may include options to extend, purchase the leased asset or terminate a lease and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised. The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, Leases. The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not significant to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. There are no material lease transactions with related parties. The following table presents the Company's lease costs included in the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) Income Statement Location 2020 2020 Finance lease cost Amortization of right-of-use assets Depreciation and amortization $ 1,274 $ 3,734 Interest on lease liabilities Interest expense, net of capitalized interest 248 796 Total finance lease cost 1,522 4,530 Operating lease cost Operation and maintenance, net of capitalized costs $ 1,650 $ 4,761 Short-term lease cost Operation and maintenance 95 721 Variable lease cost Operation and maintenance 597 1,707 Total lease cost $ 3,864 $ 11,719 The following table presents supplemental cash flow information related to leases: Nine Months Ended June 30, (Thousands) 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,133 Operating cash flows from finance leases $ 952 Financing cash flows from finance leases $ 5,505 Assets obtained or modified through amendments in exchange for operating lease liabilities during the three and nine months ended June 30, 2020 , were $270,000 and $34.2 million , respectively. Assets obtained or modified through amendments in exchange for finance lease liabilities during the nine months ended June 30, 2020 , were $49.7 million . There were no assets obtained or modified through amendments in exchange for finance lease liabilities during the three months ended June 30, 2020 . The following table presents the balance and classifications of our right of use assets and lease liabilities included in the Unaudited Condensed Consolidated Balance Sheets: (Thousands) Balance Sheet Location June 30, 2020 Assets Noncurrent Operating lease assets Operating lease assets $ 101,657 Finance lease assets Utility plant 72,357 Total lease assets $ 174,014 Liabilities Current Operating lease liabilities Operating lease liabilities $ 4,458 Finance lease liabilities Current maturities of long-term debt 10,645 Noncurrent Operating lease liabilities Operating lease liabilities 96,118 Finance lease liabilities Long-term debt 66,944 Total lease liabilities $ 178,165 As of June 30, 2020 , the weighted average remaining lease term for the operating and finance leases is 27.3 and 2.37 years, respectively. The weighted average discount rate used in the valuation of the operating and finance lease liabilities and right-of-use assets over the remaining lease term is 3.18 percent and 2.54 percent , respectively. As of June 30, 2020 , the Company has entered into three commercial solar land leases, which have not yet commenced, that would entitle the Company to significant rights or create additional obligations. The leases are expected to commence when construction of the assets is completed during fiscal 2020. Total estimated payments over the life of these leases are approximately $6.1 million . There are options to extend the term of these leases for two additional five -year periods. The following table presents the Company's maturities of lease liabilities as of June 30, 2020 : (Thousands) Operating Leases Finance Leases Remainder of fiscal 2020 $ 2,137 $ 3,417 2021 6,481 56,271 2022 6,387 6,004 2023 6,356 4,622 2024 5,985 5,279 Thereafter 126,331 5,720 Total future minimum lease payments 153,677 81,313 Less: Interest component (53,101 ) (3,724 ) Total lease liability $ 100,576 $ 77,589 The following table reflects the Company's future minimum lease payments due under non-cancelable operating leases for continuing operations as of September 30, 2019 , under ASC 840 and is being presented for comparative purposes. These commitments relate principally to commercial solar land leases, equipment and real property leases, including land and office facility leases, gas meters and office equipment. (Thousands) Operating Leases Capital Leases 2020 $ 4,411 $ 11,707 2021 $ 4,698 $ 6,603 2022 $ 4,609 $ 7,494 2023 $ 4,579 $ 3,995 2024 $ 4,199 $ 4,652 Thereafter $ 54,405 $ 4,173 |
LEASES | 12. LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset and accounts for leases in accordance with ASC 842, Leases . Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases. For more information on the adoption of ASC 842, Leases , see Note 2. Summary of Significant Accounting Policies . The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale-leaseback of its natural gas meters. Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. These variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of gas stored in the storage caverns. Generally, the Company’s solar land leases terms are between 15 and 25 years and include options to extend the terms for multiple additional 5 to 10 year terms each. The Company’s office leases vary in duration, ranging from 1 to 25 years and may or may not include extension or early purchase options. The majority of the Company’s meter leases are for terms of 7 years with purchase options available prior to the end of the 7 year term. Equipment leases include general office equipment that also vary in duration, most are for a term of 5 years. The Company's storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated. The Company's lease terms may include options to extend, purchase the leased asset or terminate a lease and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised. The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, Leases. The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not significant to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. There are no material lease transactions with related parties. The following table presents the Company's lease costs included in the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) Income Statement Location 2020 2020 Finance lease cost Amortization of right-of-use assets Depreciation and amortization $ 1,274 $ 3,734 Interest on lease liabilities Interest expense, net of capitalized interest 248 796 Total finance lease cost 1,522 4,530 Operating lease cost Operation and maintenance, net of capitalized costs $ 1,650 $ 4,761 Short-term lease cost Operation and maintenance 95 721 Variable lease cost Operation and maintenance 597 1,707 Total lease cost $ 3,864 $ 11,719 The following table presents supplemental cash flow information related to leases: Nine Months Ended June 30, (Thousands) 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,133 Operating cash flows from finance leases $ 952 Financing cash flows from finance leases $ 5,505 Assets obtained or modified through amendments in exchange for operating lease liabilities during the three and nine months ended June 30, 2020 , were $270,000 and $34.2 million , respectively. Assets obtained or modified through amendments in exchange for finance lease liabilities during the nine months ended June 30, 2020 , were $49.7 million . There were no assets obtained or modified through amendments in exchange for finance lease liabilities during the three months ended June 30, 2020 . The following table presents the balance and classifications of our right of use assets and lease liabilities included in the Unaudited Condensed Consolidated Balance Sheets: (Thousands) Balance Sheet Location June 30, 2020 Assets Noncurrent Operating lease assets Operating lease assets $ 101,657 Finance lease assets Utility plant 72,357 Total lease assets $ 174,014 Liabilities Current Operating lease liabilities Operating lease liabilities $ 4,458 Finance lease liabilities Current maturities of long-term debt 10,645 Noncurrent Operating lease liabilities Operating lease liabilities 96,118 Finance lease liabilities Long-term debt 66,944 Total lease liabilities $ 178,165 As of June 30, 2020 , the weighted average remaining lease term for the operating and finance leases is 27.3 and 2.37 years, respectively. The weighted average discount rate used in the valuation of the operating and finance lease liabilities and right-of-use assets over the remaining lease term is 3.18 percent and 2.54 percent , respectively. As of June 30, 2020 , the Company has entered into three commercial solar land leases, which have not yet commenced, that would entitle the Company to significant rights or create additional obligations. The leases are expected to commence when construction of the assets is completed during fiscal 2020. Total estimated payments over the life of these leases are approximately $6.1 million . There are options to extend the term of these leases for two additional five -year periods. The following table presents the Company's maturities of lease liabilities as of June 30, 2020 : (Thousands) Operating Leases Finance Leases Remainder of fiscal 2020 $ 2,137 $ 3,417 2021 6,481 56,271 2022 6,387 6,004 2023 6,356 4,622 2024 5,985 5,279 Thereafter 126,331 5,720 Total future minimum lease payments 153,677 81,313 Less: Interest component (53,101 ) (3,724 ) Total lease liability $ 100,576 $ 77,589 The following table reflects the Company's future minimum lease payments due under non-cancelable operating leases for continuing operations as of September 30, 2019 , under ASC 840 and is being presented for comparative purposes. These commitments relate principally to commercial solar land leases, equipment and real property leases, including land and office facility leases, gas meters and office equipment. (Thousands) Operating Leases Capital Leases 2020 $ 4,411 $ 11,707 2021 $ 4,698 $ 6,603 2022 $ 4,609 $ 7,494 2023 $ 4,579 $ 3,995 2024 $ 4,199 $ 4,652 Thereafter $ 54,405 $ 4,173 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | 13. COMMITMENTS AND CONTINGENT LIABILITIES Cash Commitments NJNG has entered into long-term contracts, expiring at various dates through October 2036 , for the supply, storage and transportation of natural gas. These contracts include annual fixed charges of approximately $125.7 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, 2020 , for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2020 2021 2022 2023 2024 Thereafter Energy Services: Natural gas purchases $ 161,351 $ 1,264 $ — $ — $ — $ — Storage demand fees 23,483 12,975 10,116 4,063 2,173 1,329 Pipeline demand fees 66,544 55,599 33,068 22,364 17,163 40,206 Sub-total Energy Services $ 251,378 $ 69,838 $ 43,184 $ 26,427 $ 19,336 $ 41,535 NJNG: Natural gas purchases $ 13,273 $ — $ — $ — $ — $ — Storage demand fees 36,062 34,483 23,424 13,409 9,154 4,077 Pipeline demand fees 89,627 107,510 106,414 89,217 79,899 572,433 Sub-total NJNG $ 138,962 $ 141,993 $ 129,838 $ 102,626 $ 89,053 $ 576,510 Total $ 390,340 $ 211,831 $ 173,022 $ 129,053 $ 108,389 $ 618,045 Legal Proceedings Manufactured Gas Plant Remediation NJNG is responsible for the remedial cleanup of certain former 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 periodically, and at least annually, performs an environmental review of former MGP sites located in Atlantic Highlands, Berkeley, Long Branch, Manchester, Toms River, and Freehold, New Jersey, collectively, the "former MGP sites", including a review of potential liability for investigation and remedial action. NJNG estimated at the time of the most recent review that total future expenditures at the former MGP sites for which it is responsible, including potential liabilities for further and continued natural resource damages, may be brought by the NJDEP for alleged injury to groundwater or other natural resources concerning these sites. As we have not yet completed the remedial investigation of the site, the total amount of potential costs of all remedial actions at the MGP site in Freehold, New Jersey, cannot be reasonably estimated at this time. The estimated total future expenditures for all former MGP sites will range from approximately $115.9 million to $186.2 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 $128.9 million as of June 30, 2020 and $131.1 million as of September 30, 2019 , based on the most likely amount. The remediation liability at June 30, 2020 includes adjustments for actual expenditures during fiscal 2020 . 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. In June 2019, NJNG initiated a preliminary assessment of a site in Aberdeen, New Jersey to determine prior ownership and if there were former MGP operations active at the location. The Company is in the process of conducting site investigation activities to identify and evaluate the nature and extent of MGP related contaminants present at the location. The costs associated with preliminary assessment and site investigation activities are considered immaterial and are included as a component of NJNG’s annual SBC application to recover remediation expenses. NJNG will continue to gather information to further refine and enhance its estimate of potential costs for this site as it becomes available. NJNG recovers its remediation expenditures, including carrying costs, over rolling seven-year periods pursuant to a RAC approved by the BPU. On March 16, 2020 , a stipulation was signed in NJNG's annual SBC filing which included an increase in the RAC, which will increase the annual recovery from $8.5 million to $9.7 million and is pending approval. As of June 30, 2020 , $36.1 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. |
COMMON STOCK EQUITY
COMMON STOCK EQUITY | 9 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
COMMON STOCK EQUITY | 14. COMMON STOCK EQUITY On December 4, 2019 , the Company completed an equity offering of 6,545,454 common shares, consisting of 5,333,334 common shares issued directly by the Company and 1,212,120 common shares issuable pursuant to forward sales agreements with investment banks. The issuance of 5,333,334 resulted in proceeds of approximately $212.9 million , net of issuance costs, and was reflected in shareholders' equity and as a financing activity on the statement of cash flows. Under the forward sale agreements, a total of 1,212,120 common shares were borrowed from third parties and sold to the underwriters. Each forward sale agreement allows the Company, at its election and prior to September 30, 2020 , to physically settle the forward sale agreement by issuing common shares in exchange for net proceeds at the then-applicable forward sale price specified by the agreement, which was initially $40.0125 per share, or, alternatively, to settle the forward sale agreement in whole or in part through the delivery or receipt of shares or cash. The forward sale price is subject to adjustment daily based on a floating interest rate factor and will decrease in respect of certain fixed amounts specified in the agreement, such as anticipated dividends. The Company's current intent is to physically settle the forward sale agreements by issuing common shares. As of June 30, 2020 , if the Company elected to net settle the forward sale agreement, the Company would receive approximately $7 million under a cash settlement or would receive 227,461 common shares under a net share settlement. Issuances of shares under the forward sale agreements are classified as equity transactions. Accordingly, no amounts relating to the forward sale agreements have or will be recorded in the financial statements until settlements take place. Prior to any settlements, the only impact to the financial statements is the inclusion of incremental shares within the calculation of diluted EPS using the treasury stock method until settlement of the forward sale agreements. Under this method, the number of the Company common shares used in calculating diluted EPS is deemed to be increased by the excess, if any, of the number of shares that would be issued upon physical settlement of the forward sale agreements less the number of shares that would be purchased by the Company in the market (based on the average market price during the same reporting period) using the proceeds receivable upon settlement (based on the adjusted forward sale price at the end of that reporting period). Share dilution occurs when the average market price of the Company's common shares is higher than the adjusted forward sale price. See Note 8. Earnings Per Share for the impact of the forward sale agreements on the calculation of diluted earnings per share. |
REPORTING SEGMENT AND OTHER OPE
REPORTING SEGMENT AND OTHER OPERATIONS DATA | 9 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
REPORTING SEGMENT AND OTHER OPERATIONS DATA | 15. 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) 2020 2019 2020 2019 Operating revenues Natural Gas Distribution External customers $ 128,532 $ 120,782 $ 645,375 $ 622,167 Clean Energy Ventures External customers 13,396 11,450 25,603 37,707 Energy Services External customers (1) 133,740 290,083 816,003 1,416,837 Intercompany (197 ) (62 ) 1,656 8,276 Midstream External customers 11,143 — 29,949 — Intercompany 720 — 2,062 — Subtotal 287,334 422,253 1,520,648 2,084,987 Home Services and Other External customers 12,163 12,627 36,694 36,253 Intercompany 206 455 947 1,652 Eliminations (729 ) (393 ) (4,665 ) (9,928 ) Total $ 298,974 $ 434,942 $ 1,553,624 $ 2,112,964 Depreciation and amortization Natural Gas Distribution $ 18,269 $ 14,689 $ 53,186 $ 42,557 Clean Energy Ventures 10,121 8,239 29,429 24,253 Energy Services (2) 28 23 84 75 Midstream 2,513 1 6,591 4 Subtotal 30,931 22,952 89,290 66,889 Home Services and Other 265 230 761 673 Eliminations 20 (33 ) (293 ) (270 ) Total $ 31,216 $ 23,149 $ 89,758 $ 67,292 Interest income (3) Natural Gas Distribution $ 135 $ 187 $ 378 $ 567 Energy Services 10 26 99 40 Midstream 463 1,088 3,245 3,089 Subtotal 608 1,301 3,722 3,696 Home Services and Other 157 515 856 1,620 Eliminations (618 ) (1,320 ) (2,524 ) (4,202 ) Total $ 147 $ 496 $ 2,054 $ 1,114 (1) Includes sales to Canada for the Energy Services segment, 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) 2020 2019 2020 2019 Interest expense, net of capitalized interest Natural Gas Distribution $ 7,455 $ 6,301 $ 22,760 $ 18,166 Clean Energy Ventures 5,070 4,320 14,397 14,405 Energy Services 517 766 2,680 4,277 Midstream 1,843 522 10,286 1,630 Subtotal 14,885 11,909 50,123 38,478 Home Services and Other 427 407 1,264 1,410 Eliminations (168 ) (668 ) (970 ) (2,245 ) Total $ 15,144 $ 11,648 $ 50,417 $ 37,643 Income tax provision (benefit) Natural Gas Distribution $ 939 $ (1,391 ) $ 29,276 $ 16,705 Clean Energy Ventures 4,193 (1,787 ) (38,432 ) (39,033 ) Energy Services (8,909 ) (1,193 ) (606 ) 7,063 Midstream 1,646 729 3,453 2,910 Subtotal (2,131 ) (3,642 ) (6,309 ) (12,355 ) Home Services and Other (131 ) 1,705 2,044 854 Eliminations 72 (4 ) 173 (353 ) Total $ (2,190 ) $ (1,941 ) $ (4,092 ) $ (11,854 ) Equity in earnings of affiliates Midstream $ 3,615 $ 4,167 $ 11,200 $ 11,966 Eliminations (402 ) (672 ) (1,009 ) (1,939 ) Total $ 3,213 $ 3,495 $ 10,191 $ 10,027 Net financial earnings (loss) Natural Gas Distribution $ 11,968 $ (3,795 ) $ 142,160 $ 96,464 Clean Energy Ventures (13,891 ) (7,138 ) (2,817 ) 24,797 Energy Services (6,913 ) (14,030 ) (9,511 ) 13,644 Midstream 3,615 3,052 10,877 11,201 Subtotal (5,221 ) (21,911 ) 140,709 146,106 Home Services and Other (582 ) 4,437 675 2,932 Eliminations (14 ) (32 ) 140 (34 ) Total $ (5,817 ) $ (17,506 ) $ 141,524 $ 149,004 Capital expenditures Natural Gas Distribution $ 88,171 $ 100,473 $ 238,010 $ 239,569 Clean Energy Ventures 41,182 38,813 110,968 91,333 Midstream 8,575 6,406 16,284 11,290 Subtotal 137,928 145,692 365,262 342,192 Home Services and Other 1,962 924 1,977 1,826 Total $ 139,890 $ 146,616 $ 367,239 $ 344,018 Investments in equity investees Midstream $ 225 $ 1,239 $ 1,491 $ 2,696 Total $ 225 $ 1,239 $ 1,491 $ 2,696 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) 2020 2019 2020 2019 Net financial earnings (loss) $ (5,817 ) $ (17,506 ) $ 141,524 $ 149,004 Less: Unrealized loss (gain) on derivative instruments and related transactions 23,712 (24,646 ) (21,827 ) (25,353 ) Tax effect (5,639 ) 5,885 5,189 6,034 Effects of economic hedging related to natural gas inventory 4,739 11,317 10,474 12,073 Tax effect (1,126 ) (2,689 ) (2,489 ) (2,869 ) NFE tax adjustment (284 ) 1,029 (470 ) 7,700 Net (loss) income $ (27,219 ) $ (8,402 ) $ 150,647 $ 151,419 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. 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 $ 3,319,754 $ 3,064,309 Clean Energy Ventures 1,007,240 864,323 Energy Services 225,830 290,847 Midstream 813,932 240,955 Subtotal 5,366,756 4,460,434 Home Services and Other 133,773 104,411 Intercompany assets (1) (218,445 ) (191,860 ) Total $ 5,282,084 $ 4,372,985 (1) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 16. RELATED PARTY TRANSACTIONS NJNG has an agreement with Steckman Ridge for 3 Bcf of firm storage capacity, which expires on March 31, 2025 . 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, 2020 , 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) 2020 2019 2020 2019 Natural Gas Distribution $ 1,491 $ 1,431 $ 4,462 $ 4,349 Energy Services 27 695 86 2,106 Total $ 1,518 $ 2,126 $ 4,548 $ 6,455 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) June 30, September 30, Natural Gas Distribution $ 775 $ 775 Energy Services 16 15 Total $ 791 $ 790 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, 2020 , NJNG and Energy Services had four asset management agreements with expiration dates ranging from October 31, 2020 through October 31, 2021 . NJNG has entered into a 15 -year transportation precedent agreement for committed capacity of 180,000 Dths per day and NJRES has entered into a 5 -year, 50,000 Dths per day transportation precedent agreement with PennEast, both to commence when PennEast is placed in service. NJNG has entered into a transportation precedent agreement with Adelphia for committed capacity of 130,000 Dths per day, which expires in October 2025. Energy Services has a 5 -year agreement for 3 Bcf of firm storage capacity with Leaf River, which is eliminated in consolidation and expires in March 2024. |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 9 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | 17. ACQUISITIONS AND DISPOSITIONS Acquisitions Adelphia On January 13, 2020 , Adelphia, an indirect wholly-owned subsidiary of NJR, acquired all of Talen’s membership interests in IEC, an existing 84 -mile pipeline in southeastern Pennsylvania, including related assets and rights of way, for a base purchase price of $166 million . In November 2017, the Company made an initial payment of $10 million towards the base purchase price, which was included in other noncurrent assets on the Consolidated Balance Sheets. The remaining purchase price of $156 million was paid upon the close of the acquisition of the related assets. 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. On December 20, 2019 , FERC issued Adelphia Gateway’s Certificate of Public Convenience and Necessity. Adelphia has agreed to provide firm natural gas transportation service for 10 years following the closing to two power generators owned by affiliates of Talen that are currently served by the pipeline. The Company evaluated the acquisition under the guidance of ASU 2017-01, Clarifying the Definition of a Business and concluded that the acquisition did not meet the definition of a business, as almost all of the fair value relates to the pipeline assets acquired. As a result, the purchase was accounted for as an asset acquisition. The following table summarizes the consideration transferred and purchase price allocation based upon the relative fair value of the assets acquired and liabilities to be assumed: (Thousands) Estimated Fair Value Purchase price $ 166,000 Net working capital adjustment (449 ) Transaction costs 9,456 Total costs capitalized $ 175,007 Identifiable assets acquired Property, plant and equipment $ 174,438 Other 1,018 Net working capital (449 ) Net assets acquired $ 175,007 The Company utilized a discounted cash flow valuation technique to measure the fair value of the property, plant, and equipment based upon the present value of their future economic benefits reflecting current market expectations. The assumptions used in the discounted cash flow valuation are not observable in active markets and thus represent non-recurring Level 3 fair value measurements. Property, plant and equipment consist primarily of pipeline related assets, land, buildings and other structures and software. Depreciation is computed on a straight-line basis over the estimated useful life of the assets, ranging from five to 30 years, based on various classes of depreciable property. Other assets consist primarily of an assembled workforce and base gas. Asset retirement obligations are initially recognized when the legal obligation to retire an asset has been incurred and a reasonable estimate of fair value can be made. The Company records any asset retirement obligations in the period in which information permitting a reasonable estimate of such obligation becomes available. The Company is unable to predict when, or if, the pipelines would become completely obsolete and require decommissioning. As such, upon acquisition, there were no liabilities recorded for asset retirement obligations, as both the timing and future estimates of decommissioning the pipeline was indeterminable. Leaf River On October 11, 2019 , NJR Pipeline Company, an indirect wholly-owned subsidiary of NJR, acquired 100 percent of the issued and outstanding limited liability company interests of Leaf River Energy Center LLC for $367.5 million . The purchase price was subject to certain contractual conditions, including customary purchase price adjustments related to the amount of net working capital and transaction expenses. Leaf River owns and operates a 32.2 million Dth salt dome natural gas storage facility, located in southeastern Mississippi. The Company evaluated the acquisition under the guidance of ASU 2017-01, Clarifying the Definition of a Business and concluded that the acquisition did not meet the definition of a business, as almost all of the fair value relates to the storage assets acquired. As a result, the purchase was accounted for as an asset acquisition. The following table summarizes the consideration transferred and purchase price allocation based upon the relative fair value of the assets acquired and liabilities to be assumed: (Thousands) Estimated Fair Value Purchase price $ 367,500 Net working capital adjustment 4,111 Transaction costs 1,664 Total costs capitalized $ 373,275 Identifiable assets acquired Property, plant and equipment $ 365,715 Base gas 3,445 Other assets, net 4 Net working capital 4,111 Net assets acquired $ 373,275 The total consideration transferred is comprised of the purchase price to the seller and the transaction costs incurred during the acquisition. The Company utilized a discounted cash flow valuation technique to measure the fair value of the property, plant, and equipment based upon the present value of their future economic benefits reflecting current market expectations. Base gas is valued based upon the estimated replacement costs associated with the respective assets. Base gas is needed to maintain the necessary pressure to allow efficient operation of the storage facility. The base gas is determined to be recoverable and is considered a component of the facility and presented as a component in property, plant and equipment. This gas is not depreciated, as it is expected to be recovered and sold. Property, plant and equipment consist primarily of surface equipment and pipelines necessary to operate the facility. Depreciation is computed on a straight-line basis over the estimated useful life of the assets, ranging from five to 50 years , based on various classes of depreciable property. Asset retirement obligations are initially recognized when the legal obligation to retire an asset has been incurred and a reasonable estimate of fair value can be made. The Company records any asset retirement obligations in the period in which information permitting a reasonable estimate of such obligation becomes available. The Company is unable to predict when, or if, the storage facilities and related pipelines would become completely obsolete and require decommissioning. As such, upon acquisition, there were no liabilities recorded for asset retirement obligations, as both the timing and future estimates of decommissioning the storage facilities and related pipelines were indeterminable. The assumptions used in the discounted cash flow valuation are not observable in active markets and thus represent non-recurring Level 3 fair value measurements. |
ACQUISITIONS AND DISPOSITIONS | 17. ACQUISITIONS AND DISPOSITIONS Acquisitions Adelphia On January 13, 2020 , Adelphia, an indirect wholly-owned subsidiary of NJR, acquired all of Talen’s membership interests in IEC, an existing 84 -mile pipeline in southeastern Pennsylvania, including related assets and rights of way, for a base purchase price of $166 million . In November 2017, the Company made an initial payment of $10 million towards the base purchase price, which was included in other noncurrent assets on the Consolidated Balance Sheets. The remaining purchase price of $156 million was paid upon the close of the acquisition of the related assets. 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. On December 20, 2019 , FERC issued Adelphia Gateway’s Certificate of Public Convenience and Necessity. Adelphia has agreed to provide firm natural gas transportation service for 10 years following the closing to two power generators owned by affiliates of Talen that are currently served by the pipeline. The Company evaluated the acquisition under the guidance of ASU 2017-01, Clarifying the Definition of a Business and concluded that the acquisition did not meet the definition of a business, as almost all of the fair value relates to the pipeline assets acquired. As a result, the purchase was accounted for as an asset acquisition. The following table summarizes the consideration transferred and purchase price allocation based upon the relative fair value of the assets acquired and liabilities to be assumed: (Thousands) Estimated Fair Value Purchase price $ 166,000 Net working capital adjustment (449 ) Transaction costs 9,456 Total costs capitalized $ 175,007 Identifiable assets acquired Property, plant and equipment $ 174,438 Other 1,018 Net working capital (449 ) Net assets acquired $ 175,007 The Company utilized a discounted cash flow valuation technique to measure the fair value of the property, plant, and equipment based upon the present value of their future economic benefits reflecting current market expectations. The assumptions used in the discounted cash flow valuation are not observable in active markets and thus represent non-recurring Level 3 fair value measurements. Property, plant and equipment consist primarily of pipeline related assets, land, buildings and other structures and software. Depreciation is computed on a straight-line basis over the estimated useful life of the assets, ranging from five to 30 years, based on various classes of depreciable property. Other assets consist primarily of an assembled workforce and base gas. Asset retirement obligations are initially recognized when the legal obligation to retire an asset has been incurred and a reasonable estimate of fair value can be made. The Company records any asset retirement obligations in the period in which information permitting a reasonable estimate of such obligation becomes available. The Company is unable to predict when, or if, the pipelines would become completely obsolete and require decommissioning. As such, upon acquisition, there were no liabilities recorded for asset retirement obligations, as both the timing and future estimates of decommissioning the pipeline was indeterminable. Leaf River On October 11, 2019 , NJR Pipeline Company, an indirect wholly-owned subsidiary of NJR, acquired 100 percent of the issued and outstanding limited liability company interests of Leaf River Energy Center LLC for $367.5 million . The purchase price was subject to certain contractual conditions, including customary purchase price adjustments related to the amount of net working capital and transaction expenses. Leaf River owns and operates a 32.2 million Dth salt dome natural gas storage facility, located in southeastern Mississippi. The Company evaluated the acquisition under the guidance of ASU 2017-01, Clarifying the Definition of a Business and concluded that the acquisition did not meet the definition of a business, as almost all of the fair value relates to the storage assets acquired. As a result, the purchase was accounted for as an asset acquisition. The following table summarizes the consideration transferred and purchase price allocation based upon the relative fair value of the assets acquired and liabilities to be assumed: (Thousands) Estimated Fair Value Purchase price $ 367,500 Net working capital adjustment 4,111 Transaction costs 1,664 Total costs capitalized $ 373,275 Identifiable assets acquired Property, plant and equipment $ 365,715 Base gas 3,445 Other assets, net 4 Net working capital 4,111 Net assets acquired $ 373,275 The total consideration transferred is comprised of the purchase price to the seller and the transaction costs incurred during the acquisition. The Company utilized a discounted cash flow valuation technique to measure the fair value of the property, plant, and equipment based upon the present value of their future economic benefits reflecting current market expectations. Base gas is valued based upon the estimated replacement costs associated with the respective assets. Base gas is needed to maintain the necessary pressure to allow efficient operation of the storage facility. The base gas is determined to be recoverable and is considered a component of the facility and presented as a component in property, plant and equipment. This gas is not depreciated, as it is expected to be recovered and sold. Property, plant and equipment consist primarily of surface equipment and pipelines necessary to operate the facility. Depreciation is computed on a straight-line basis over the estimated useful life of the assets, ranging from five to 50 years , based on various classes of depreciable property. Asset retirement obligations are initially recognized when the legal obligation to retire an asset has been incurred and a reasonable estimate of fair value can be made. The Company records any asset retirement obligations in the period in which information permitting a reasonable estimate of such obligation becomes available. The Company is unable to predict when, or if, the storage facilities and related pipelines would become completely obsolete and require decommissioning. As such, upon acquisition, there were no liabilities recorded for asset retirement obligations, as both the timing and future estimates of decommissioning the storage facilities and related pipelines were indeterminable. The assumptions used in the discounted cash flow valuation are not observable in active markets and thus represent non-recurring Level 3 fair value measurements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Consolidation | 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, 2019 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 2019 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, 2020 . Intercompany transactions and accounts have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a quarterly basis or more frequently whenever events or changes in circumstances indicate a need, the Company evaluates its estimates, including those related to the calculation of the fair value of derivative instruments, debt, equity method investments, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, long-lived assets, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation. ARO are evaluated as often as needed. The Company’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The Company has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, the Company will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is the Company’s policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is the Company’s policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates. |
Acquisitions | Acquisitions The Company follows the guidance in ASC 805, Business Combinations, for determining the appropriate accounting treatment for acquisitions. ASU No. 2017-01, Clarifying the Definition of a Business , provides an initial fair value screen to determine if substantially all of the fair value of the assets acquired is concentrated in a single asset or group of similar assets. If the initial screening test is not met, the set is considered a business based on whether there are inputs and substantive processes in place. Based on the results of this analysis and conclusion on an acquisition’s classification of a business combination or an asset acquisition, the accounting treatment is derived. If the acquisition is deemed to be a business, the acquisition method of accounting is applied. Identifiable assets acquired and liabilities assumed at the acquisition date are recorded at fair value. If the transaction is deemed to be an asset purchase, the cost accumulation and allocation model is used whereby the assets and liabilities are recorded based on the purchase price and allocated to the individual assets and liabilities based on relative fair values. The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed are based on various assumptions and valuation methodologies requiring considerable management judgment. The most significant variables in these valuations are discount rates and the number of years on which to base the cash flow projections, as well as other assumptions and estimates used to determine the cash inflows and outflows. Management determines discount rates based on the risk inherent in the acquired assets, specific risks, industry beta and capital structure of guideline companies. The valuation of an acquired business is based on available information at the acquisition date and assumptions that are believed to be reasonable. However, a change in facts and circumstances as of the acquisition date can result in subsequent adjustments during the measurement period, but no later than one year from the acquisition date. |
Revenues | Revenues Revenues from the sale of natural gas to NJNG customers are recognized in the period that gas is delivered and consumed by customers, including an estimate for unbilled revenue. NJNG records unbilled revenue for natural gas services. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for gas and the most current tariff rates. Clean Energy Ventures recognizes revenue when SRECs are transferred to counterparties. SRECs are physically delivered through the transfer of certificates as per contractual settlement schedules. Revenues for Energy Services are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur, as noted above. Energy Services also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues. Midstream generates revenues from firm storage contracts and transportation contracts, related usage fees and hub services for the use of storage space, injections and withdrawals from their natural gas storage facility and the delivery of natural gas to customers. Demand fees are recognized as revenue over the term of the related agreement while usage fees and hub services revenues are recognized as services are performed. Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. See Note 3. Revenue for further information. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash related to escrow balances for utility plant projects at NJNG and irrevocable letters of credit at Leaf River, which is recorded in other current and noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets, respectively. ASU No. 2016-18, an amendment to ASC 230, Statement of Cash Flows |
Loans Receivable | Loans Receivable NJNG currently provides loans, with terms ranging from two to 10 years |
Software Costs | Software Costs |
Reclassification | Reclassification Certain prior period amounts related to energy and other taxes on the Unaudited Condensed Consolidated Statements of Operations and prepaid expenses on the Unaudited Condensed Consolidated Balance Sheets and Unaudited Consolidated Condensed Statements of Cash Flows have been reclassified to conform to the current period presentation. Certain amounts related to software costs on the Unaudited Condensed Consolidated Balance Sheets have been reclassified to utility plant construction work in progress to conform to the current period presentation. |
Recently Adopted Updates to the Accounting Standards Codification | Recently Adopted 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 an original term greater than one year are recorded on the balance sheet. The related asset is amortized straight-line over the term of the lease. Additional disclosures are required to provide transparency as to the amount, timing and uncertainty of cash flows arising from leasing activities. 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 as of October 1, 2019. The Company adopted this practical expedient. 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, if any. The Company elected this transition method and did not have any cumulative impact to the opening balance of retained earnings. The Company’s other practical expedient elections include the package of practical expedients whereby the Company was not required to reassess all of its leases identified, lease classifications and initial direct costs associated with leases. The Company also elected to not separate non-lease components from lease components and elected to exclude short-term leases from the recognition requirements of ASC 842. The Company did not elect the portfolio approach for the application of the discount rate and therefore applies a discount rate individually to each lease in its population. The Company adopted ASC 842 and all related amendments on October 1, 2019, using the modified retrospective transition method. The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property leases, including land and office facility leases and office equipment and the sale-leaseback of its natural gas meters. The total right-of-use assets and operating lease liabilities recorded upon adoption were $67.1 million . Upon the acquisition of Leaf River, on October 11, 2019 , the Company adopted ASC 842 for Leaf River which resulted in additional right-of-use asset and lease liability of $21.6 million . 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 Company adopted this guidance on October 1, 2019. As October 1, 2019, the Company did not apply hedge accounting to its risk management activities, therefore the amendments did not have an impact on its financial position, results of operations or cash flows. 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 Index Swap rate based on the Secured Overnight Financing Rate as an additional acceptable U.S. benchmark interest rate for hedge accounting purposes. The Company adopted this guidance on October 1, 2019. As the Company did not apply hedge accounting to any of its risk management activities as of October 1, 2019, the amendments did not have an impact on its financial position, results of operations or cash flows. 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 Company adopted this guidance on October 1, 2019. There was no impact to the Company's financial position, results of operations or cash flows. Financial Instruments In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments . This accounting standard provides clarification of guidance for financial instruments and makes narrow scope amendments related to various issues. The Company adopted this standard effective upon issuance. There was no impact to the Company's financial position, results of operations or cash flows as a result of its adoption. Reference Rate Reform In March 2020, the FASB issued ASU No. 2020-04, an amendment to ASC 848, Reference Rate Reform , which provides relief for companies preparing for discontinuation of interest rates such as LIBOR. The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The amendments in this update are elective and are effective upon the ASU issuance through December 31, 2022. There was no impact to the Company's financial position, results of operations or cash flows as a result of its adoption. Other Recent Updates to the Accounting Standards Codification 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 in the process of assessing the impact of the guidance on NJR's reserve methodologies and credit policies and procedures for any assets that could be impacted. The Company is currently evaluating the amendment and all subsequent amendments related to this topic, but does not expect that the pending adoption of this ASU will have a material effect on its consolidated financial statements and its disclosures since the majority of NJR's financial assets are short-term in nature, such as trade receivables. 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 impact of the adoption of this ASU but does not expect that its pending adoption will have a material effect on its consolidated financial statements. The Company does not have either Level 3 fair value measurements or transfers between Level 1 or Level 2 in its current portfolios, and therefore, does not expect this ASU to have an impact on the Company's financial statements and disclosures. 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 amended presentation and disclosure guidance 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 but it is not expecting this ASU to materially affect the financial statements and disclosures. Income Taxes In December 2019, the FASB issued ASU No. 2019-12, an amendment to ASC 740, Income Taxes , which is intended to simplify the accounting for income taxes and changes the accounting for certain income tax transactions, among other minor improvements. The guidance is effective for the Company beginning October 1, 2021, with early adoption permitted. Upon adoption, the amendments will be applied on a prospective basis. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations, cash flows and disclosures upon adoption. Investments - Equity Method and Derivatives and Hedging In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 . The update states that an entity is required to evaluate observable transactions that necessitate applying or discontinuing the equity method of accounting, when applying the measurement alternative in Topic 321. This evaluation occurs prior to applying or upon ceasing the equity method. The update also states that when applying paragraph 815-10-15-141(a) for forward contracts and purchased options, an entity is not required to assess whether the underlying securities will be accounted for under the equity method in accordance with Topic 323 or fair value method under Topic 825 upon settlement or exercise. The guidance is effective for the Company beginning October 1, 2021, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this ASU but does not expect that its pending adoption will have a material effect on its consolidated financial statements. |
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 and 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 to internally 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. |
Lessee Accounting | Lessee Accounting The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset and accounts for leases in accordance with ASC 842, Leases . Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases. For more information on the adoption of ASC 842, Leases , see Note 2. Summary of Significant Accounting Policies . The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale-leaseback of its natural gas meters. Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. These variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of gas stored in the storage caverns. Generally, the Company’s solar land leases terms are between 15 and 25 years and include options to extend the terms for multiple additional 5 to 10 year terms each. The Company’s office leases vary in duration, ranging from 1 to 25 years and may or may not include extension or early purchase options. The majority of the Company’s meter leases are for terms of 7 years with purchase options available prior to the end of the 7 year term. Equipment leases include general office equipment that also vary in duration, most are for a term of 5 years. The Company's storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated. The Company's lease terms may include options to extend, purchase the leased asset or terminate a lease and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised. The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, Leases. The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not significant to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. There are no material lease transactions with related parties. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Gas in Storage | The following table summarizes gas in storage, at average cost by segment as of: June 30, 2020 September 30, 2019 ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf Energy Services $ 50,400 33.1 $ 52,390 25.6 Natural Gas Distribution 73,501 17.5 117,413 27.0 Midstream 61 — — — Total $ 123,962 50.6 $ 169,803 52.6 |
Schedule of Cash and Cash Equivalents | 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 $ 42,821 $ 2,676 $ 26,297 $ 1,458 Restricted cash in other noncurrent assets 2,424 1,387 391 252 Statements of Cash Flow Cash, cash equivalents and restricted cash in the statement of cash flows $ 45,245 $ 4,063 $ 26,688 $ 1,710 |
Schedule of Restricted Cash | 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 $ 42,821 $ 2,676 $ 26,297 $ 1,458 Restricted cash in other noncurrent assets 2,424 1,387 391 252 Statements of Cash Flow Cash, cash equivalents and restricted cash in the statement of cash flows $ 45,245 $ 4,063 $ 26,688 $ 1,710 |
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, 2020 and 2019 : (Thousands) Investments in Equity Securities Cash Flow Hedges Postemployment Benefit Obligation Total Balance at March 31, 2020 $ — $ (9,711 ) $ (24,928 ) $ (34,639 ) Other comprehensive income (loss), net of tax Other comprehensive (loss) income, before reclassifications, net of tax of $0, $180, $0, $180 — (626 ) — (626 ) Amounts reclassified from accumulated other comprehensive loss, net of tax of $0, $0, $(191), $(191) — — 663 (1) 663 Net current-period other comprehensive income, net of tax of $0, $180, $(191), $(11) — (626 ) 663 37 Balance at June 30, 2020 $ — $ (10,337 ) $ (24,265 ) $ (34,602 ) Balance at March 31, 2019 $ — $ — $ (15,517 ) $ (15,517 ) Other comprehensive income (loss), 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 ) (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. 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, 2020 and 2019 : (Thousands) Investments in Equity Securities Cash Flow Hedges Postemployment Benefit Obligation Total Balance at September 30, 2019 $ — $ — $ (31,787 ) $ (31,787 ) Other comprehensive income (loss), net of tax Other comprehensive (loss) income, before reclassifications, net of tax of $0, $2,961, $(1,681), $1,280 — (10,337 ) 5,378 (4,959 ) Amounts reclassified from accumulated other comprehensive loss, net of tax of $0, $0, $(480), $(480) — — 2,144 (1) 2,144 Net current-period other comprehensive income, net of tax of $0, $2,961, $(2,161), $800 — (10,337 ) 7,522 (2,815 ) Balance at June 30, 2020 $ — $ (10,337 ) $ (24,265 ) $ (34,602 ) 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 ) (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 . |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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 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. All wind assets were sold as of 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 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. Midstream Natural gas services The performance obligation of Midstream is to provide the customer with storage and transportation services. Midstream generates revenues from firm storage contracts and transportation contracts, related usage fees for the use of storage space, injection and withdrawal at the storage facility and the delivery of natural gas to customers. Revenue is recognized over time as our customers receive the benefits of our service as it is performed on their behalf using an output method based on actual deliveries. Demand fees are recognized as revenue over the term of the related agreement. 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: Midstream Natural gas services The performance obligation of Midstream is to provide the customer with storage and transportation services. Midstream generates revenues from hub services for the use of storage space, injection and withdrawal from the storage facility. Hub services include park and loan transactions and wheeling. 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, 2020 , is as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Midstream Home Services and Other Total 2020 Natural gas utility sales $ 124,888 — — — — $ 124,888 Wholesale natural gas services — — 3,536 11,863 — 15,399 Service contracts — — — — 8,126 8,126 Installations and maintenance — — — — 4,243 4,243 Electricity sales — 5,294 — — — 5,294 Eliminations (1) — — — (720 ) (206 ) (926 ) Revenues from contracts with customers 124,888 5,294 3,536 11,143 12,163 157,024 Alternative revenue programs (2,665 ) — — — — (2,665 ) Derivative Instruments 6,309 8,102 (2) 130,007 — — 144,418 Eliminations (1) — — 197 — — 197 Revenues out of scope 3,644 8,102 130,204 — — 141,950 Total operating revenues $ 128,532 13,396 133,740 11,143 12,163 $ 298,974 2019 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 (2) 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. (2) Includes SREC revenue. Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the nine months ended June 30, 2020 and 2019 , is as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Midstream Home Services and Other Total 2020 Natural gas utility sales $ 611,650 — — — — $ 611,650 Natural gas services — — 20,491 32,011 — 52,502 Service contracts — — — — 24,237 24,237 Installations and maintenance — — — — 13,404 13,404 Electricity sales — 13,770 — — — 13,770 Eliminations (1) — — — (2,062 ) (947 ) (3,009 ) Revenues from contracts with customers 611,650 13,770 20,491 29,949 36,694 712,554 Alternative revenue programs 17,465 — — — — 17,465 Derivative Instruments 16,260 11,833 (2) 797,168 — — 825,261 Eliminations (1) — — (1,656 ) — — (1,656 ) Revenues out of scope 33,725 11,833 795,512 — — 841,070 Total operating revenues $ 645,375 25,603 816,003 29,949 36,694 $ 1,553,624 2019 Natural gas utility sales $ 598,676 — — — — $ 598,676 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 (2) 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. (2) Includes SREC revenue. Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended June 30, 2020 and 2019 , is as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Midstream Home Services and Other Total 2020 Residential $ 89,095 2,587 — — 11,845 $ 103,527 Commercial and industrial 20,050 2,707 3,536 11,143 318 37,754 Firm transportation 14,331 — — — — 14,331 Interruptible and off-tariff 1,412 — — — — 1,412 Revenues out of scope 3,644 8,102 130,204 — — 141,950 Total operating revenues $ 128,532 13,396 133,740 11,143 12,163 $ 298,974 2019 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, 2020 and 2019 , is as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Midstream Home Services and Other Total 2020 Residential $ 442,093 7,516 — — 35,955 $ 485,564 Commercial and industrial 107,107 6,254 20,491 29,949 739 164,540 Firm transportation 58,043 — — — — 58,043 Interruptible and off-tariff 4,407 — — — — 4,407 Revenues out of scope 33,725 11,833 795,512 — — 841,070 Total operating revenues $ 645,375 25,603 816,003 29,949 36,694 $ 1,553,624 2019 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 resulting 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, 2020 , are as follows: Customer Accounts Receivable Customers' Credit (Thousands) Billed Unbilled Balances and Deposits Balance as of October 1, 2019 $ 139,263 $ 6,510 $ 27,116 Increase (decrease) 3,796 2,228 (7,060 ) Balance as of June 30, 2020 $ 143,059 $ 8,738 $ 20,056 |
Performance obligation, in excess of billings | The following table provides information about receivables, 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, 2020 : (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Midstream Home Services and Other Total Customer accounts receivable Billed $ 78,370 3,469 55,364 3,828 2,028 $ 143,059 Unbilled 8,738 — — — — 8,738 Customers' credit balances and deposits (20,056 ) — — — — (20,056 ) Total $ 67,052 3,469 55,364 3,828 2,028 $ 131,741 |
REGULATION (Tables)
REGULATION (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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 $ 17,062 $ 15,468 Under-recovered gas costs — 9,506 Conservation Incentive Program 20,836 3,371 Derivatives at fair value, net 9,845 4,526 Other 4,508 — Total current regulatory assets $ 52,251 $ 32,871 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 36,053 $ 38,351 Liability for future expenditures 128,886 131,080 Deferred income taxes 22,477 19,631 Derivatives at fair value, net — 486 SAVEGREEN 15,229 10,201 Postemployment and other benefit costs 161,847 212,461 Deferred storm damage costs 7,058 8,687 Cost of removal 62,831 65,660 Other noncurrent regulatory assets 16,720 10,080 Total noncurrent regulatory assets $ 451,101 $ 496,637 Regulatory liabilities-current Over-recovered gas costs 6,774 — Total current regulatory liabilities $ 6,774 $ — Regulatory liabilities-noncurrent Tax Act impact (1) $ 196,705 $ 200,417 New Jersey Clean Energy Program 128 197 Other noncurrent regulatory liabilities 448 1,821 Total noncurrent regulatory liabilities $ 197,281 $ 202,435 (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 $ 17,062 $ 15,468 Under-recovered gas costs — 9,506 Conservation Incentive Program 20,836 3,371 Derivatives at fair value, net 9,845 4,526 Other 4,508 — Total current regulatory assets $ 52,251 $ 32,871 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 36,053 $ 38,351 Liability for future expenditures 128,886 131,080 Deferred income taxes 22,477 19,631 Derivatives at fair value, net — 486 SAVEGREEN 15,229 10,201 Postemployment and other benefit costs 161,847 212,461 Deferred storm damage costs 7,058 8,687 Cost of removal 62,831 65,660 Other noncurrent regulatory assets 16,720 10,080 Total noncurrent regulatory assets $ 451,101 $ 496,637 Regulatory liabilities-current Over-recovered gas costs 6,774 — Total current regulatory liabilities $ 6,774 $ — Regulatory liabilities-noncurrent Tax Act impact (1) $ 196,705 $ 200,417 New Jersey Clean Energy Program 128 197 Other noncurrent regulatory liabilities 448 1,821 Total noncurrent regulatory liabilities $ 197,281 $ 202,435 (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, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Assets and Liabilities | The following table presents the fair value of NJR's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of: Fair Value June 30, 2020 September 30, 2019 (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 $ 66 $ 133 $ 67 $ 245 Financial commodity contracts Derivatives - current — 190 382 570 Interest rate contracts Derivatives - current — 5,056 — — Energy Services: Physical commodity contracts Derivatives - current 5,440 17,242 6,847 27,540 Derivatives - noncurrent 2,671 22,448 1,710 12,641 Financial commodity contracts Derivatives - current 23,852 13,447 17,806 29,057 Derivatives - noncurrent 3,647 1,129 5,716 6,105 Foreign currency contracts Derivatives - current 9 230 1 211 Derivatives - noncurrent 29 23 — 75 Derivatives designated as hedging instruments: Home Services and Other: Interest rate contracts Derivatives - current — 10,796 — — Total fair value of derivatives $ 35,714 $ 70,694 $ 32,529 $ 76,444 |
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, 2020: Derivative assets: Energy Services Physical commodity contracts $ 8,111 $ (3,097 ) $ (200 ) $ 4,814 Financial commodity contracts 27,499 (14,576 ) — 12,923 Foreign currency contracts 38 (38 ) — — Total Energy Services $ 35,648 $ (17,711 ) $ (200 ) $ 17,737 Natural Gas Distribution Physical commodity contracts $ 66 $ (39 ) $ — $ 27 Total Natural Gas Distribution $ 66 $ (39 ) $ — $ 27 Derivative liabilities: Energy Services Physical commodity contracts $ 39,690 $ (3,097 ) $ — $ 36,593 Financial commodity contracts 14,576 (14,576 ) — — Foreign currency contracts 253 (38 ) — 215 Total Energy Services $ 54,519 $ (17,711 ) $ — $ 36,808 Natural Gas Distribution Physical commodity contracts $ 133 $ (39 ) $ — $ 94 Financial commodity contracts 190 — (190 ) — Interest rate contracts 5,056 — — 5,056 Total Natural Gas Distribution $ 5,379 $ (39 ) $ (190 ) $ 5,150 Home Services and Other Interest rate contracts $ 10,796 $ — $ — $ 10,796 Total Home Services and Other $ 10,796 $ — $ — $ 10,796 As of September 30, 2019: Derivative assets: Energy Services Physical commodity contracts $ 8,557 $ (2,906 ) $ (200 ) $ 5,451 Financial commodity contracts 23,522 (19,646 ) — 3,876 Foreign currency contracts 1 (1 ) — — Total Energy Services $ 32,080 $ (22,553 ) $ (200 ) $ 9,327 Natural Gas Distribution Physical commodity contracts $ 67 $ (9 ) $ — $ 58 Financial commodity contracts 382 (382 ) — — Total Natural Gas Distribution $ 449 $ (391 ) $ — $ 58 Derivative liabilities: Energy Services Physical commodity contracts $ 40,181 $ (2,906 ) $ — $ 37,275 Financial commodity contracts 35,162 (19,646 ) (15,516 ) — Foreign currency contracts 286 (1 ) — 285 Total Energy Services $ 75,629 $ (22,553 ) $ (15,516 ) $ 37,560 Natural Gas Distribution Physical commodity contracts $ 245 $ (9 ) $ — $ 236 Financial commodity contracts 570 (382 ) (188 ) — Total Natural Gas Distribution $ 815 $ (391 ) $ (188 ) $ 236 (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, 2020: Derivative assets: Energy Services Physical commodity contracts $ 8,111 $ (3,097 ) $ (200 ) $ 4,814 Financial commodity contracts 27,499 (14,576 ) — 12,923 Foreign currency contracts 38 (38 ) — — Total Energy Services $ 35,648 $ (17,711 ) $ (200 ) $ 17,737 Natural Gas Distribution Physical commodity contracts $ 66 $ (39 ) $ — $ 27 Total Natural Gas Distribution $ 66 $ (39 ) $ — $ 27 Derivative liabilities: Energy Services Physical commodity contracts $ 39,690 $ (3,097 ) $ — $ 36,593 Financial commodity contracts 14,576 (14,576 ) — — Foreign currency contracts 253 (38 ) — 215 Total Energy Services $ 54,519 $ (17,711 ) $ — $ 36,808 Natural Gas Distribution Physical commodity contracts $ 133 $ (39 ) $ — $ 94 Financial commodity contracts 190 — (190 ) — Interest rate contracts 5,056 — — 5,056 Total Natural Gas Distribution $ 5,379 $ (39 ) $ (190 ) $ 5,150 Home Services and Other Interest rate contracts $ 10,796 $ — $ — $ 10,796 Total Home Services and Other $ 10,796 $ — $ — $ 10,796 As of September 30, 2019: Derivative assets: Energy Services Physical commodity contracts $ 8,557 $ (2,906 ) $ (200 ) $ 5,451 Financial commodity contracts 23,522 (19,646 ) — 3,876 Foreign currency contracts 1 (1 ) — — Total Energy Services $ 32,080 $ (22,553 ) $ (200 ) $ 9,327 Natural Gas Distribution Physical commodity contracts $ 67 $ (9 ) $ — $ 58 Financial commodity contracts 382 (382 ) — — Total Natural Gas Distribution $ 449 $ (391 ) $ — $ 58 Derivative liabilities: Energy Services Physical commodity contracts $ 40,181 $ (2,906 ) $ — $ 37,275 Financial commodity contracts 35,162 (19,646 ) (15,516 ) — Foreign currency contracts 286 (1 ) — 285 Total Energy Services $ 75,629 $ (22,553 ) $ (15,516 ) $ 37,560 Natural Gas Distribution Physical commodity contracts $ 245 $ (9 ) $ — $ 236 Financial commodity contracts 570 (382 ) (188 ) — Total Natural Gas Distribution $ 815 $ (391 ) $ (188 ) $ 236 (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 presents the effect of derivative instruments recognized on the Unaudited Condensed Consolidated Statements of Operations for the periods set forth below: (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: 2020 2019 2020 2019 Energy Services: Physical commodity contracts Operating revenues $ (18,061 ) $ 1,435 $ 3,871 $ 74 Physical commodity contracts Gas purchases 1,014 2,392 (2,288 ) 266 Financial commodity contracts Gas purchases 2,408 22,919 71,820 17,732 Foreign currency contracts Gas purchases 181 37 (179 ) (188 ) Home Services and Other: Interest rate contracts Interest expense — (43 ) (228 ) Total unrealized and realized gains (losses) $ (14,458 ) $ 26,740 $ 73,224 $ 17,656 |
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI | The following table reflects the (losses) gains associated with NJNG's derivative instruments for the periods set forth below: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2020 2019 2020 2019 Natural Gas Distribution: Physical commodity contracts $ 308 $ 812 $ 1,357 $ 5,225 Financial commodity contracts 1,029 (10,368 ) (11,493 ) (7,129 ) Interest rate contracts 1,636 — (5,056 ) — Total unrealized and realized (losses) gains $ 2,973 $ (9,556 ) $ (15,192 ) $ (1,904 ) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table reflects the effect of derivative instruments designated as cash flow hedges in OCI for the periods set forth below: (Thousands) Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Three Months Ended Three Months Ended June 30, June 30, Derivatives in cash flow hedging relationships: 2020 2019 2020 2019 Interest rate contracts $ (807 ) $ — $ — $ — Nine Months Ended Nine Months Ended June 30, June 30, Derivatives in cash flow hedging relationships: 2020 2019 2020 2019 Interest rate contracts $ (13,299 ) $ — $ — $ — |
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 18.8 27.6 Physical 10.3 11.6 Energy Services Futures (38.4 ) (29.6 ) Physical 12.6 44.5 Swaps (2.3 ) (5.0 ) |
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 $ — $ 1,982 Accounts payable and other $ (219 ) $ — Energy Services Restricted broker margin accounts $ 52,211 $ 71,741 |
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, 2020 . 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 $ 126,026 Noninvestment grade 8,915 Internally rated investment grade 22,877 Internally rated noninvestment grade 12,319 Total $ 170,137 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The estimated fair value of long-term debt, 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) (4) $ 1,492,845 $ 1,442,845 Fair market value $ 1,719,734 $ 1,568,864 (1) Excludes finance leases of $77.6 million and $35.4 million as of June 30, 2020 and September 30, 2019 , respectively. (2) Excludes solar asset financing obligations of $130.8 million and $91.4 million as of June 30, 2020 and September 30, 2019 , respectively. (3) Excludes NJNG's debt issuance costs of $9.2 million and $9 million as of June 30, 2020 and September 30, 2019 , respectively. (4) Excludes NJR's debt issuance costs of $1.5 million and $2 million as of June 30, 2020 and September 30, 2019 , 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, 2020: Assets: Physical commodity contracts $ — $ 8,177 $ — $ 8,177 Financial commodity contracts 25,349 2,150 — 27,499 Financial commodity contracts - foreign exchange — 38 — 38 Money market funds 36,172 — — 36,172 Other (1) 1,814 — — 1,814 Total assets at fair value $ 63,335 $ 10,365 $ — $ 73,700 Liabilities: Physical commodity contracts $ — $ 39,823 $ — $ 39,823 Financial commodity contracts 14,766 — — 14,766 Financial commodity contracts - foreign exchange — 253 — 253 Interest rate contracts — 15,852 — 15,852 Total liabilities at fair value $ 14,766 $ 55,928 $ — $ 70,694 As of September 30, 2019: Assets: Physical commodity contracts $ — $ 8,624 $ — $ 8,624 Financial commodity contracts 20,028 3,876 — 23,904 Financial commodity contracts - foreign exchange — 1 — 1 Other (1) 1,706 — — 1,706 Total assets at fair value $ 21,734 $ 12,501 $ — $ 34,235 Liabilities: Physical commodity contracts $ — $ 40,426 $ — $ 40,426 Financial commodity contracts 35,732 — — 35,732 Financial commodity contracts - foreign exchange — 286 — 286 Total liabilities at fair value $ 35,732 $ 40,712 $ — $ 76,444 |
INVESTMENTS IN EQUITY INVESTE_2
INVESTMENTS IN EQUITY INVESTEES (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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 $ 112,909 $ 114,428 PennEast (1) 92,891 85,840 Total $ 205,800 $ 200,268 (1) Includes a deferred tax component related to AFUDC equity of $4.6 million and $4.1 million for June 30, 2020 and September 30, 2019 , respectively. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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) 2020 2019 2020 2019 Net income, as reported $ (27,219 ) $ (8,402 ) $ 150,647 $ 151,419 Basic earnings per share Weighted average shares of common stock outstanding-basic 95,764 89,600 94,420 88,995 Basic earnings per common share $(0.28) $(0.09) $1.60 $1.70 Diluted earnings per share Weighted average shares of common stock outstanding-basic 95,764 89,600 94,420 88,995 Incremental shares (1) — — 298 407 Weighted average shares of common stock outstanding-diluted 95,764 89,600 94,718 89,402 Diluted earnings per common share (2) $(0.28) $(0.09) $1.59 $1.69 (1) C onsist primarily of unvested stock awards and performance shares. (2) There were anti-dilutive shares of 251,780 and 95,817 excluded from the calculation of diluted earnings per share related to the e quity forward sale agreement during the three and nine months ended June 30, 2020 , respectively. Since t here was a net loss for the three months ended June 30, 2020 and 2019 , incremental shares of 310,000 and 409,000 , 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 . |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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 $ 416,300 $ 25,450 Weighted average interest rate at end of period 1.06 % 3.04 % Amount available at end of period (2) $ 244 $ 394,800 Bank revolving credit facilities (1) $ 250,000 $ — April 2021 Notes outstanding at end of period $ — $ — Weighted average interest rate at end of period — % — % Amount available at end of period (2) $ 250,000 $ — NJNG Bank revolving credit facilities (1) $ 250,000 $ 250,000 December 2023 Commercial paper outstanding at end of period $ — $ — Weighted average interest rate at end of period 0.25 % — % Amount available at end of period (3) $ 249,269 $ 249,269 (1) Committed credit facilities, which require commitment fees on the unused amounts. (2) Letters of credit outstanding total $8.5 million and $4.8 million for June 30, 2020 and September 30, 2019 , respectively, which reduces amount available by the same amount. (3) Letters of credit outstanding total $731,000 for both June 30, 2020 and September 30, 2019 , which reduces the amount available by the same amount. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Cost | 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) 2020 2019 2020 2019 2020 2019 2020 2019 Service cost $ 2,056 $ 1,845 $ 6,167 $ 5,536 $ 1,213 $ 1,101 $ 3,640 $ 3,303 Interest cost 2,647 3,043 7,940 9,129 1,757 2,081 5,270 6,243 Expected return on plan assets (5,145 ) (4,763 ) (15,434 ) (14,290 ) (1,628 ) (1,379 ) (4,883 ) (4,137 ) Recognized actuarial loss 2,606 1,442 7,818 4,324 1,861 1,617 5,582 4,850 Prior service cost amortization 25 25 76 76 (49 ) (91 ) (148 ) (273 ) Net periodic benefit cost $ 2,189 $ 1,592 $ 6,567 $ 4,775 $ 3,154 $ 3,329 $ 9,461 $ 9,986 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost | The following table presents the Company's lease costs included in the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) Income Statement Location 2020 2020 Finance lease cost Amortization of right-of-use assets Depreciation and amortization $ 1,274 $ 3,734 Interest on lease liabilities Interest expense, net of capitalized interest 248 796 Total finance lease cost 1,522 4,530 Operating lease cost Operation and maintenance, net of capitalized costs $ 1,650 $ 4,761 Short-term lease cost Operation and maintenance 95 721 Variable lease cost Operation and maintenance 597 1,707 Total lease cost $ 3,864 $ 11,719 The following table presents supplemental cash flow information related to leases: Nine Months Ended June 30, (Thousands) 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,133 Operating cash flows from finance leases $ 952 Financing cash flows from finance leases $ 5,505 |
Assets And Liabilities, Lessee | The following table presents the balance and classifications of our right of use assets and lease liabilities included in the Unaudited Condensed Consolidated Balance Sheets: (Thousands) Balance Sheet Location June 30, 2020 Assets Noncurrent Operating lease assets Operating lease assets $ 101,657 Finance lease assets Utility plant 72,357 Total lease assets $ 174,014 Liabilities Current Operating lease liabilities Operating lease liabilities $ 4,458 Finance lease liabilities Current maturities of long-term debt 10,645 Noncurrent Operating lease liabilities Operating lease liabilities 96,118 Finance lease liabilities Long-term debt 66,944 Total lease liabilities $ 178,165 |
Finance Lease, Liability, Maturity | The following table presents the Company's maturities of lease liabilities as of June 30, 2020 : (Thousands) Operating Leases Finance Leases Remainder of fiscal 2020 $ 2,137 $ 3,417 2021 6,481 56,271 2022 6,387 6,004 2023 6,356 4,622 2024 5,985 5,279 Thereafter 126,331 5,720 Total future minimum lease payments 153,677 81,313 Less: Interest component (53,101 ) (3,724 ) Total lease liability $ 100,576 $ 77,589 |
Lessee, Operating Lease, Liability, Maturity | The following table presents the Company's maturities of lease liabilities as of June 30, 2020 : (Thousands) Operating Leases Finance Leases Remainder of fiscal 2020 $ 2,137 $ 3,417 2021 6,481 56,271 2022 6,387 6,004 2023 6,356 4,622 2024 5,985 5,279 Thereafter 126,331 5,720 Total future minimum lease payments 153,677 81,313 Less: Interest component (53,101 ) (3,724 ) Total lease liability $ 100,576 $ 77,589 |
Schedule of Future Minimum Rental Payments for Operating Leases | The following table reflects the Company's future minimum lease payments due under non-cancelable operating leases for continuing operations as of September 30, 2019 , under ASC 840 and is being presented for comparative purposes. These commitments relate principally to commercial solar land leases, equipment and real property leases, including land and office facility leases, gas meters and office equipment. (Thousands) Operating Leases Capital Leases 2020 $ 4,411 $ 11,707 2021 $ 4,698 $ 6,603 2022 $ 4,609 $ 7,494 2023 $ 4,579 $ 3,995 2024 $ 4,199 $ 4,652 Thereafter $ 54,405 $ 4,173 |
Schedule of Future Minimum Lease Payments for Capital Leases | The following table reflects the Company's future minimum lease payments due under non-cancelable operating leases for continuing operations as of September 30, 2019 , under ASC 840 and is being presented for comparative purposes. These commitments relate principally to commercial solar land leases, equipment and real property leases, including land and office facility leases, gas meters and office equipment. (Thousands) Operating Leases Capital Leases 2020 $ 4,411 $ 11,707 2021 $ 4,698 $ 6,603 2022 $ 4,609 $ 7,494 2023 $ 4,579 $ 3,995 2024 $ 4,199 $ 4,652 Thereafter $ 54,405 $ 4,173 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | Commitments as of June 30, 2020 , for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2020 2021 2022 2023 2024 Thereafter Energy Services: Natural gas purchases $ 161,351 $ 1,264 $ — $ — $ — $ — Storage demand fees 23,483 12,975 10,116 4,063 2,173 1,329 Pipeline demand fees 66,544 55,599 33,068 22,364 17,163 40,206 Sub-total Energy Services $ 251,378 $ 69,838 $ 43,184 $ 26,427 $ 19,336 $ 41,535 NJNG: Natural gas purchases $ 13,273 $ — $ — $ — $ — $ — Storage demand fees 36,062 34,483 23,424 13,409 9,154 4,077 Pipeline demand fees 89,627 107,510 106,414 89,217 79,899 572,433 Sub-total NJNG $ 138,962 $ 141,993 $ 129,838 $ 102,626 $ 89,053 $ 576,510 Total $ 390,340 $ 211,831 $ 173,022 $ 129,053 $ 108,389 $ 618,045 |
REPORTING SEGMENT AND OTHER O_2
REPORTING SEGMENT AND OTHER OPERATIONS DATA (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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) 2020 2019 2020 2019 Operating revenues Natural Gas Distribution External customers $ 128,532 $ 120,782 $ 645,375 $ 622,167 Clean Energy Ventures External customers 13,396 11,450 25,603 37,707 Energy Services External customers (1) 133,740 290,083 816,003 1,416,837 Intercompany (197 ) (62 ) 1,656 8,276 Midstream External customers 11,143 — 29,949 — Intercompany 720 — 2,062 — Subtotal 287,334 422,253 1,520,648 2,084,987 Home Services and Other External customers 12,163 12,627 36,694 36,253 Intercompany 206 455 947 1,652 Eliminations (729 ) (393 ) (4,665 ) (9,928 ) Total $ 298,974 $ 434,942 $ 1,553,624 $ 2,112,964 Depreciation and amortization Natural Gas Distribution $ 18,269 $ 14,689 $ 53,186 $ 42,557 Clean Energy Ventures 10,121 8,239 29,429 24,253 Energy Services (2) 28 23 84 75 Midstream 2,513 1 6,591 4 Subtotal 30,931 22,952 89,290 66,889 Home Services and Other 265 230 761 673 Eliminations 20 (33 ) (293 ) (270 ) Total $ 31,216 $ 23,149 $ 89,758 $ 67,292 Interest income (3) Natural Gas Distribution $ 135 $ 187 $ 378 $ 567 Energy Services 10 26 99 40 Midstream 463 1,088 3,245 3,089 Subtotal 608 1,301 3,722 3,696 Home Services and Other 157 515 856 1,620 Eliminations (618 ) (1,320 ) (2,524 ) (4,202 ) Total $ 147 $ 496 $ 2,054 $ 1,114 (1) Includes sales to Canada for the Energy Services segment, 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) 2020 2019 2020 2019 Interest expense, net of capitalized interest Natural Gas Distribution $ 7,455 $ 6,301 $ 22,760 $ 18,166 Clean Energy Ventures 5,070 4,320 14,397 14,405 Energy Services 517 766 2,680 4,277 Midstream 1,843 522 10,286 1,630 Subtotal 14,885 11,909 50,123 38,478 Home Services and Other 427 407 1,264 1,410 Eliminations (168 ) (668 ) (970 ) (2,245 ) Total $ 15,144 $ 11,648 $ 50,417 $ 37,643 Income tax provision (benefit) Natural Gas Distribution $ 939 $ (1,391 ) $ 29,276 $ 16,705 Clean Energy Ventures 4,193 (1,787 ) (38,432 ) (39,033 ) Energy Services (8,909 ) (1,193 ) (606 ) 7,063 Midstream 1,646 729 3,453 2,910 Subtotal (2,131 ) (3,642 ) (6,309 ) (12,355 ) Home Services and Other (131 ) 1,705 2,044 854 Eliminations 72 (4 ) 173 (353 ) Total $ (2,190 ) $ (1,941 ) $ (4,092 ) $ (11,854 ) Equity in earnings of affiliates Midstream $ 3,615 $ 4,167 $ 11,200 $ 11,966 Eliminations (402 ) (672 ) (1,009 ) (1,939 ) Total $ 3,213 $ 3,495 $ 10,191 $ 10,027 Net financial earnings (loss) Natural Gas Distribution $ 11,968 $ (3,795 ) $ 142,160 $ 96,464 Clean Energy Ventures (13,891 ) (7,138 ) (2,817 ) 24,797 Energy Services (6,913 ) (14,030 ) (9,511 ) 13,644 Midstream 3,615 3,052 10,877 11,201 Subtotal (5,221 ) (21,911 ) 140,709 146,106 Home Services and Other (582 ) 4,437 675 2,932 Eliminations (14 ) (32 ) 140 (34 ) Total $ (5,817 ) $ (17,506 ) $ 141,524 $ 149,004 Capital expenditures Natural Gas Distribution $ 88,171 $ 100,473 $ 238,010 $ 239,569 Clean Energy Ventures 41,182 38,813 110,968 91,333 Midstream 8,575 6,406 16,284 11,290 Subtotal 137,928 145,692 365,262 342,192 Home Services and Other 1,962 924 1,977 1,826 Total $ 139,890 $ 146,616 $ 367,239 $ 344,018 Investments in equity investees Midstream $ 225 $ 1,239 $ 1,491 $ 2,696 Total $ 225 $ 1,239 $ 1,491 $ 2,696 |
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) 2020 2019 2020 2019 Net financial earnings (loss) $ (5,817 ) $ (17,506 ) $ 141,524 $ 149,004 Less: Unrealized loss (gain) on derivative instruments and related transactions 23,712 (24,646 ) (21,827 ) (25,353 ) Tax effect (5,639 ) 5,885 5,189 6,034 Effects of economic hedging related to natural gas inventory 4,739 11,317 10,474 12,073 Tax effect (1,126 ) (2,689 ) (2,489 ) (2,869 ) NFE tax adjustment (284 ) 1,029 (470 ) 7,700 Net (loss) income $ (27,219 ) $ (8,402 ) $ 150,647 $ 151,419 |
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 $ 3,319,754 $ 3,064,309 Clean Energy Ventures 1,007,240 864,323 Energy Services 225,830 290,847 Midstream 813,932 240,955 Subtotal 5,366,756 4,460,434 Home Services and Other 133,773 104,411 Intercompany assets (1) (218,445 ) (191,860 ) Total $ 5,282,084 $ 4,372,985 (1) 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, 2020 | |
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) 2020 2019 2020 2019 Natural Gas Distribution $ 1,491 $ 1,431 $ 4,462 $ 4,349 Energy Services 27 695 86 2,106 Total $ 1,518 $ 2,126 $ 4,548 $ 6,455 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) June 30, September 30, Natural Gas Distribution $ 775 $ 775 Energy Services 16 15 Total $ 791 $ 790 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the consideration transferred and purchase price allocation based upon the relative fair value of the assets acquired and liabilities to be assumed: (Thousands) Estimated Fair Value Purchase price $ 166,000 Net working capital adjustment (449 ) Transaction costs 9,456 Total costs capitalized $ 175,007 Identifiable assets acquired Property, plant and equipment $ 174,438 Other 1,018 Net working capital (449 ) Net assets acquired $ 175,007 The following table summarizes the consideration transferred and purchase price allocation based upon the relative fair value of the assets acquired and liabilities to be assumed: (Thousands) Estimated Fair Value Purchase price $ 367,500 Net working capital adjustment 4,111 Transaction costs 1,664 Total costs capitalized $ 373,275 Identifiable assets acquired Property, plant and equipment $ 365,715 Base gas 3,445 Other assets, net 4 Net working capital 4,111 Net assets acquired $ 373,275 |
NATURE OF THE BUSINESS (Details
NATURE OF THE BUSINESS (Details) customer in Thousands | 9 Months Ended |
Jun. 30, 2020subsidiarycustomer | |
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 | 555 |
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, 2020USD ($)Bcf | Sep. 30, 2019USD ($)Bcf |
Inventory [Line Items] | ||
Gas in Storage, value | $ | $ 123,962 | $ 169,803 |
Gas in Storage, Bcf | Bcf | 50.6 | 52.6 |
Energy Services | ||
Inventory [Line Items] | ||
Gas in Storage, value | $ | $ 50,400 | $ 52,390 |
Gas in Storage, Bcf | Bcf | 33.1 | 25.6 |
Natural Gas Distribution | ||
Inventory [Line Items] | ||
Gas in Storage, value | $ | $ 73,501 | $ 117,413 |
Gas in Storage, Bcf | Bcf | 17.5 | 27 |
Midstream | ||
Inventory [Line Items] | ||
Gas in Storage, value | $ | $ 61 | $ 0 |
Gas in Storage, Bcf | Bcf | 0 | 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 42,821 | $ 2,676 | $ 26,297 | $ 1,458 |
Restricted cash in other noncurrent assets | 2,424 | 1,387 | 391 | 252 |
Cash, cash equivalents and restricted cash in the statement of cash flows | $ 45,245 | $ 4,063 | $ 26,688 | $ 1,710 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Oct. 11, 2019 | Oct. 01, 2019 | Sep. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Loans receivable in other current assets | $ 13,000 | $ 13,000 | $ 12,400 | ||||
Loans receivable in other noncurrent assets | 36,300 | 36,300 | 38,800 | ||||
Operating lease assets | 101,657 | 101,657 | 0 | ||||
Operating lease, liability | 100,576 | $ 100,576 | |||||
Leaf River Energy Center LLC | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Operating lease assets | $ 21,600 | ||||||
Operating lease, liability | $ 21,600 | ||||||
Accounting Standards Update 2016-02 | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Operating lease assets | $ 67,100 | ||||||
Operating lease, liability | $ 67,100 | ||||||
Minimum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Loans receivable, term | 2 years | ||||||
Maximum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Loans receivable, term | 10 years | ||||||
Operation and maintenance | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Capitalized Computer Software, Period Increase (Decrease) | 1,900 | $ 3,700 | $ 4,500 | $ 3,700 | |||
Other Noncurrent Assets | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Capitalized software costs | 4,300 | 4,300 | 1,700 | ||||
Construction in Progress | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Capitalized software costs | $ 12,200 | $ 12,200 | $ 4,800 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Oct. 01, 2018 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance as of beginning of period | $ 1,889,107 | $ 1,569,162 | $ 1,551,717 | $ 1,418,978 | |
Balance as of end of period | 1,838,927 | 1,572,197 | 1,838,927 | 1,572,197 | |
Investments in Equity Securities | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance as of beginning of period | 0 | 0 | 0 | 3,446 | |
Other comprehensive (loss) income, before reclassifications, net of tax | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | 0 | 0 | |
Net current-period, other comprehensive income, net of tax | 0 | 0 | |||
Reclassification to retained earnings | $ (3,446) | ||||
Balance as of end of period | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | |||
Tax on amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss), tax | 0 | 0 | |||
Cash Flow Hedges | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance as of beginning of period | (9,711) | 0 | 0 | 0 | |
Other comprehensive (loss) income, before reclassifications, net of tax | (626) | (10,337) | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | 0 | 0 | |
Net current-period, other comprehensive income, net of tax | (626) | (10,337) | |||
Reclassification to retained earnings | |||||
Balance as of end of period | (10,337) | 0 | (10,337) | 0 | |
Other comprehensive income (loss) before reclassifications, tax | 180 | 2,961 | |||
Tax on amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss), tax | 180 | 2,961 | |||
Postemployment Benefit Obligation | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance as of beginning of period | (24,928) | (15,517) | (31,787) | (16,056) | |
Other comprehensive (loss) income, before reclassifications, net of tax | 0 | 5,378 | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | 663 | 305 | 2,144 | 844 | |
Net current-period, other comprehensive income, net of tax | 663 | 7,522 | |||
Reclassification to retained earnings | 0 | ||||
Balance as of end of period | (24,265) | (15,212) | (24,265) | (15,212) | |
Other comprehensive income (loss) before reclassifications, tax | 0 | (1,681) | |||
Tax on amounts reclassified from accumulated other comprehensive income | (191) | (118) | (480) | (333) | |
Other comprehensive income (loss), tax | (191) | (2,161) | |||
Total | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance as of beginning of period | (34,639) | (15,517) | (31,787) | (12,610) | |
Other comprehensive (loss) income, before reclassifications, net of tax | (626) | (4,959) | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | 663 | 305 | 2,144 | 844 | |
Net current-period, other comprehensive income, net of tax | 37 | (2,815) | |||
Reclassification to retained earnings | $ (3,446) | ||||
Balance as of end of period | (34,602) | (15,212) | (34,602) | (15,212) | |
Other comprehensive income (loss) before reclassifications, tax | 180 | 1,280 | |||
Tax on amounts reclassified from accumulated other comprehensive income | (191) | $ (118) | (480) | $ (333) | |
Other comprehensive income (loss), tax | $ (11) | $ 800 |
REVENUE - DISAGGREGATED REVENUE
REVENUE - DISAGGREGATED REVENUE - PRODUCT (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 157,024 | $ 136,773 | $ 712,554 | $ 678,077 |
Alternative revenue programs | (2,665) | 2,025 | 17,465 | 9,059 |
Derivative Instruments | 144,418 | 296,082 | 825,261 | 1,434,104 |
Revenues out of scope | 141,950 | 298,169 | 841,070 | 1,434,887 |
Total operating revenues | 298,974 | 434,942 | 1,553,624 | 2,112,964 |
Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 124,888 | 115,525 | 611,650 | 598,676 |
Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 15,399 | 3,876 | 52,502 | 26,204 |
Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8,126 | 7,890 | 24,237 | 23,533 |
Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,243 | 5,193 | 13,404 | 14,373 |
Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5,294 | 4,745 | 13,770 | 16,944 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 287,334 | 422,253 | 1,520,648 | 2,084,987 |
Operating Segments | Natural Gas Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 124,888 | 115,525 | 611,650 | 598,676 |
Alternative revenue programs | (2,665) | 2,025 | 17,465 | 9,059 |
Derivative Instruments | 6,309 | 3,232 | 16,260 | 14,432 |
Revenues out of scope | 3,644 | 5,257 | 33,725 | 23,491 |
Total operating revenues | 128,532 | 120,782 | 645,375 | 622,167 |
Operating Segments | Natural Gas Distribution | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 124,888 | 115,525 | 611,650 | 598,676 |
Operating Segments | Natural Gas Distribution | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Natural Gas Distribution | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Natural Gas Distribution | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Natural Gas Distribution | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5,294 | 4,745 | 13,770 | 16,944 |
Alternative revenue programs | 0 | 0 | 0 | 0 |
Derivative Instruments | 8,102 | 6,705 | 11,833 | 20,763 |
Revenues out of scope | 8,102 | 6,705 | 11,833 | 20,763 |
Total operating revenues | 13,396 | 11,450 | 25,603 | 37,707 |
Operating Segments | Clean Energy Ventures | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5,294 | 4,745 | 13,770 | 16,944 |
Operating Segments | Energy Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,536 | 3,876 | 20,491 | 26,204 |
Alternative revenue programs | 0 | 0 | 0 | 0 |
Derivative Instruments | 130,007 | 286,145 | 797,168 | 1,398,909 |
Revenues out of scope | 130,204 | 286,207 | 795,512 | 1,390,633 |
Total operating revenues | 133,740 | 290,083 | 816,003 | 1,416,837 |
Operating Segments | Energy Services | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Energy Services | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,536 | 3,876 | 20,491 | 26,204 |
Operating Segments | Energy Services | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Energy Services | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Energy Services | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Midstream | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 11,143 | 0 | 29,949 | 0 |
Alternative revenue programs | 0 | 0 | 0 | 0 |
Derivative Instruments | 0 | 0 | 0 | 0 |
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 11,143 | 0 | 29,949 | 0 |
Operating Segments | Midstream | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Midstream | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 11,863 | 0 | 32,011 | 0 |
Operating Segments | Midstream | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Midstream | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Midstream | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Home Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 12,163 | 12,627 | 36,694 | 36,253 |
Home Services and Other | Home Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12,163 | 12,627 | 36,694 | 36,253 |
Alternative revenue programs | 0 | 0 | 0 | 0 |
Derivative Instruments | 0 | 0 | 0 | 0 |
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 12,163 | 12,627 | 36,694 | 36,253 |
Home Services and Other | Home Services and Other | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Home Services and Other | Home Services and Other | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Home Services and Other | Home Services and Other | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8,126 | 7,890 | 24,237 | 23,533 |
Home Services and Other | Home Services and Other | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,243 | 5,193 | 13,404 | 14,373 |
Home Services and Other | Home Services and Other | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (926) | (456) | (3,009) | (1,653) |
Revenues out of scope | 197 | 62 | (1,656) | (8,276) |
Eliminations | Natural Gas Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues out of scope | 0 | 0 | 0 | 0 |
Eliminations | Clean Energy Ventures | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues out of scope | 0 | 0 | 0 | 0 |
Eliminations | Energy Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues out of scope | 197 | 62 | (1,656) | (8,276) |
Eliminations | Midstream | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (720) | 0 | (2,062) | 0 |
Revenues out of scope | 0 | 0 | 0 | 0 |
Eliminations | Home Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (206) | (456) | (947) | (1,653) |
Revenues out of scope | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE - DISAGGREGATED REVEN_2
REVENUE - DISAGGREGATED REVENUE - TYPE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 157,024 | $ 136,773 | $ 712,554 | $ 678,077 |
Revenues out of scope | 141,950 | 298,169 | 841,070 | 1,434,887 |
Total operating revenues | 298,974 | 434,942 | 1,553,624 | 2,112,964 |
Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 103,527 | 78,676 | 485,564 | 444,341 |
Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 37,754 | 44,067 | 164,540 | 176,943 |
Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 14,331 | 12,296 | 58,043 | 52,006 |
Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,412 | 1,734 | 4,407 | 4,787 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 287,334 | 422,253 | 1,520,648 | 2,084,987 |
Home Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 12,163 | 12,627 | 36,694 | 36,253 |
Home Services and Other | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 11,845 | 12,388 | 35,955 | 35,522 |
Home Services and Other | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 318 | 239 | 739 | 731 |
Home Services and Other | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Home Services and Other | Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Natural Gas Distribution | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 124,888 | 115,525 | 611,650 | 598,676 |
Revenues out of scope | 3,644 | 5,257 | 33,725 | 23,491 |
Total operating revenues | 128,532 | 120,782 | 645,375 | 622,167 |
Natural Gas Distribution | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 89,095 | 63,984 | 442,093 | 402,192 |
Natural Gas Distribution | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 20,050 | 37,511 | 107,107 | 139,691 |
Natural Gas Distribution | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 14,331 | 12,296 | 58,043 | 52,006 |
Natural Gas Distribution | Operating Segments | Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,412 | 1,734 | 4,407 | 4,787 |
Clean Energy Ventures | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5,294 | 4,745 | 13,770 | 16,944 |
Revenues out of scope | 8,102 | 6,705 | 11,833 | 20,763 |
Total operating revenues | 13,396 | 11,450 | 25,603 | 37,707 |
Clean Energy Ventures | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,587 | 2,304 | 7,516 | 6,627 |
Clean Energy Ventures | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,707 | 2,441 | 6,254 | 10,317 |
Clean Energy Ventures | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Clean Energy Ventures | Operating Segments | Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Energy Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,536 | 3,876 | 20,491 | 26,204 |
Revenues out of scope | 130,204 | 286,207 | 795,512 | 1,390,633 |
Total operating revenues | 133,740 | 290,083 | 816,003 | 1,416,837 |
Energy Services | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Energy Services | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,536 | 3,876 | 20,491 | 26,204 |
Energy Services | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Energy Services | Operating Segments | Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Midstream | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 11,143 | 0 | 29,949 | 0 |
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 11,143 | 0 | 29,949 | 0 |
Midstream | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Midstream | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 11,143 | 0 | 29,949 | 0 |
Midstream | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Midstream | Operating Segments | Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE - TIMING OF REVENUE REC
REVENUE - TIMING OF REVENUE RECOGNITION (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2020USD ($) | |
Timing of Revenue Recognition [Roll Forward] | |
Billed, beginning | $ 139,263 |
Unbilled, beginning | 6,510 |
Customers' credit, beginning | 27,116 |
Increase (decrease) for accounts receivable, billed | 3,796 |
Increase (decrease) for unbilled revenue | 2,228 |
Increase (decrease) for customers' credits | (7,060) |
Billed, end | 143,059 |
Unbilled, end | 8,738 |
Customers' credit, end | $ 20,056 |
REVENUE - TIMING OF REVENUE R_2
REVENUE - TIMING OF REVENUE RECOGNITION - BALANCE SHEET (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Customer accounts receivable | ||
Billed | $ 143,059 | $ 139,263 |
Unbilled revenues | 8,738 | 6,510 |
Customers' credit balances and deposits | (20,056) | $ (27,116) |
Customers accounts receivables & Customers' credit balances and deposits | 131,741 | |
Operating Segments | Natural Gas Distribution | ||
Customer accounts receivable | ||
Billed | 78,370 | |
Unbilled revenues | 8,738 | |
Customers' credit balances and deposits | (20,056) | |
Customers accounts receivables & Customers' credit balances and deposits | 67,052 | |
Operating Segments | Clean Energy Ventures | ||
Customer accounts receivable | ||
Billed | 3,469 | |
Unbilled revenues | 0 | |
Customers' credit balances and deposits | 0 | |
Customers accounts receivables & Customers' credit balances and deposits | 3,469 | |
Operating Segments | Energy Services | ||
Customer accounts receivable | ||
Billed | 55,364 | |
Unbilled revenues | 0 | |
Customers' credit balances and deposits | 0 | |
Customers accounts receivables & Customers' credit balances and deposits | 55,364 | |
Operating Segments | Midstream | ||
Customer accounts receivable | ||
Billed | 3,828 | |
Unbilled revenues | 0 | |
Customers' credit balances and deposits | 0 | |
Customers accounts receivables & Customers' credit balances and deposits | 3,828 | |
Home Services and Other | ||
Customer accounts receivable | ||
Billed | 2,028 | |
Unbilled revenues | 0 | |
Customers' credit balances and deposits | 0 | |
Customers accounts receivables & Customers' credit balances and deposits | $ 2,028 |
REGULATION - REGULATORY ASSETS
REGULATION - REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | $ 52,251 | $ 32,871 |
Regulatory assets-noncurrent | 451,101 | 496,637 |
Regulatory liabilities-current | 6,774 | 0 |
Regulatory liabilities-noncurrent | 197,281 | 202,435 |
Over-recovered gas costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-current | 6,774 | 0 |
Tax Act impact | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 196,705 | 200,417 |
New Jersey Clean Energy Program | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 128 | 197 |
Other noncurrent regulatory liabilities | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 448 | 1,821 |
New Jersey Clean Energy Program | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 17,062 | 15,468 |
Under-recovered gas costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 0 | 9,506 |
Conservation Incentive Program | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 20,836 | 3,371 |
Derivatives at fair value, net | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 9,845 | 4,526 |
Regulatory assets-noncurrent | 0 | 486 |
Expended, net of recoveries | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 36,053 | 38,351 |
Liability for future expenditures | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 128,886 | 131,080 |
Deferred income taxes | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 22,477 | 19,631 |
SAVEGREEN | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 15,229 | 10,201 |
Postemployment and other benefit costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 161,847 | 212,461 |
Deferred storm damage costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 7,058 | 8,687 |
Cost of removal | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 62,831 | 65,660 |
Other regulatory assets (liabilities) | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 4,508 | 0 |
Regulatory assets-noncurrent | $ 16,720 | $ 10,080 |
REGULATION - REGULATORY FILINGS
REGULATION - REGULATORY FILINGS (Details) - USD ($) $ in Thousands | Jun. 25, 2020 | May 29, 2020 | Mar. 30, 2020 | Mar. 16, 2020 | Nov. 15, 2019 | Nov. 01, 2019 | Jun. 30, 2020 | Jul. 24, 2020 |
NJNG EE Recovery Rate | NJNG | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Approved rate increase (decrease), amount | $ 11,300 | |||||||
Base Rate Stipulation | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Approved rate increase (decrease), amount | $ 62,200 | |||||||
Approved rate increase (decrease) | 6.95% | |||||||
Approved return on equity | 9.60% | |||||||
Approved equity capital structure, percentage | 54.00% | |||||||
Approved depreciation rate | 2.78% | |||||||
RAC | NJNG | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Requested rate increase (decrease), amount | $ 1,200 | |||||||
NJCEP | NJNG | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Requested rate increase (decrease), amount | $ (600) | |||||||
NJ RISE And SAFE II Capital Investments | NJNG | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Requested rate increase (decrease), amount | $ 7,400 | |||||||
Capital investment costs | $ 57,900 | |||||||
BGSS | NJNG | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Requested rate increase (decrease), amount | $ (20,400) | |||||||
BGSS Balancing | NJNG | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Requested rate increase (decrease), amount | (3,900) | |||||||
Conservation Incentive Program | NJNG | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Requested rate increase (decrease), amount | 22,300 | |||||||
BPU | NJNG | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Requested rate increase (decrease), amount | $ (70) | |||||||
June 2020 Annual U S F Compliance Filing | NJNG | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Requested rate increase (decrease), amount | $ (400) | |||||||
Subsequent Event | NJ RISE And SAFE II Capital Investments | NJNG | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Approved rate increase (decrease), amount | $ 7,100 | |||||||
Capital investment costs | $ 55,100 |
DERIVATIVE INSTRUMENTS - ADDITI
DERIVATIVE INSTRUMENTS - ADDITIONAL INFORMATION (Details) certificate in Thousands, $ in Millions | Jun. 30, 2020USD ($)certificate | Jan. 31, 2018USD ($) |
Derivative [Line Items] | ||
Derivative, net liability position, aggregate fair value | $ 15.9 | |
Additional collateral, aggregate fair value | 15.9 | |
Foreign currency contracts | ||
Derivative [Line Items] | ||
Notional amount | 6.4 | |
Treasury Lock | ||
Derivative [Line Items] | ||
Notional amount | 195 | |
Treasury Lock | NJNG | ||
Derivative [Line Items] | ||
Notional amount | $ 60 | |
Physical commodity contracts | Energy Services | ||
Derivative [Line Items] | ||
Number of SRECs | certificate | (1,276) | |
Home Services and Other | Term Loan | Credit Agreement Due August 16, 2019 | Interest rate swap | ||
Derivative [Line Items] | ||
Debt issued | $ 100 | |
Benchmark interest rate | 2.84% |
DERIVATIVE INSTRUMENTS - BALANC
DERIVATIVE INSTRUMENTS - BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Fair Value | ||
Derivative assets, current | $ 29,367 | $ 25,103 |
Derivative liabilities, current | 47,094 | 57,623 |
Derivative assets, noncurrent | 6,347 | 7,426 |
Derivative liabilities, noncurrent | 23,600 | 18,821 |
Not Designated as Hedging Instrument | ||
Fair Value | ||
Derivative assets | 35,714 | 32,529 |
Derivative liabilities | 70,694 | 76,444 |
Home Services and Other | Designated as Hedging Instrument | Interest rate contracts | ||
Fair Value | ||
Derivative assets, current | 0 | 0 |
Derivative liabilities, current | 10,796 | 0 |
Natural Gas Distribution | Not Designated as Hedging Instrument | Physical commodity contracts | ||
Fair Value | ||
Derivative assets, current | 66 | 67 |
Derivative liabilities, current | 133 | 245 |
Natural Gas Distribution | Not Designated as Hedging Instrument | Financial commodity contracts | ||
Fair Value | ||
Derivative assets, current | 0 | 382 |
Derivative liabilities, current | 190 | 570 |
Natural Gas Distribution | Not Designated as Hedging Instrument | Interest rate contracts | ||
Fair Value | ||
Derivative assets, current | 0 | 0 |
Derivative liabilities, current | 5,056 | 0 |
Energy Services | Not Designated as Hedging Instrument | Physical commodity contracts | ||
Fair Value | ||
Derivative assets, current | 5,440 | 6,847 |
Derivative liabilities, current | 17,242 | 27,540 |
Derivative assets, noncurrent | 2,671 | 1,710 |
Derivative liabilities, noncurrent | 22,448 | 12,641 |
Energy Services | Not Designated as Hedging Instrument | Financial commodity contracts | ||
Fair Value | ||
Derivative assets, current | 23,852 | 17,806 |
Derivative liabilities, current | 13,447 | 29,057 |
Derivative assets, noncurrent | 3,647 | 5,716 |
Derivative liabilities, noncurrent | 1,129 | 6,105 |
Energy Services | Not Designated as Hedging Instrument | Foreign currency contracts | ||
Fair Value | ||
Derivative assets, current | 9 | 1 |
Derivative liabilities, current | 230 | 211 |
Derivative assets, noncurrent | 29 | 0 |
Derivative liabilities, noncurrent | $ 23 | $ 75 |
DERIVATIVE INSTRUMENTS - OFFSET
DERIVATIVE INSTRUMENTS - OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Home Services and Other | ||
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | $ 10,796 | |
Offsetting Derivative Instruments | 0 | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | 10,796 | |
Home Services and Other | Interest rate contracts | ||
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 10,796 | |
Offsetting Derivative Instruments | 0 | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | 10,796 | |
Energy Services | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 35,648 | $ 32,080 |
Offsetting Derivative Instruments | (17,711) | (22,553) |
Financial Collateral Received/Pledged | (200) | (200) |
Net Amounts | 17,737 | 9,327 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 54,519 | 75,629 |
Offsetting Derivative Instruments | (17,711) | (22,553) |
Financial Collateral Received/Pledged | 0 | (15,516) |
Net Amounts | 36,808 | 37,560 |
Energy Services | Physical commodity contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 8,111 | 8,557 |
Offsetting Derivative Instruments | (3,097) | (2,906) |
Financial Collateral Received/Pledged | (200) | (200) |
Net Amounts | 4,814 | 5,451 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 39,690 | 40,181 |
Offsetting Derivative Instruments | (3,097) | (2,906) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 36,593 | 37,275 |
Energy Services | Financial commodity contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 27,499 | 23,522 |
Offsetting Derivative Instruments | (14,576) | (19,646) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 12,923 | 3,876 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 14,576 | 35,162 |
Offsetting Derivative Instruments | (14,576) | (19,646) |
Financial Collateral Received/Pledged | 0 | (15,516) |
Net Amounts | 0 | 0 |
Energy Services | Foreign currency contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 38 | 1 |
Offsetting Derivative Instruments | (38) | (1) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 0 | 0 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 253 | 286 |
Offsetting Derivative Instruments | (38) | (1) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 215 | 285 |
Natural Gas Distribution | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 66 | 449 |
Offsetting Derivative Instruments | (39) | (391) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 27 | 58 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 5,379 | 815 |
Offsetting Derivative Instruments | (39) | (391) |
Financial Collateral Received/Pledged | (190) | (188) |
Net Amounts | 5,150 | 236 |
Natural Gas Distribution | Physical commodity contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 66 | 67 |
Offsetting Derivative Instruments | (39) | (9) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 27 | 58 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 133 | 245 |
Offsetting Derivative Instruments | (39) | (9) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 94 | 236 |
Natural Gas Distribution | Financial commodity contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 382 | |
Offsetting Derivative Instruments | (382) | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | 0 | |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 190 | 570 |
Offsetting Derivative Instruments | 0 | (382) |
Financial Collateral Received/Pledged | (190) | (188) |
Net Amounts | 0 | $ 0 |
Natural Gas Distribution | Interest rate contracts | ||
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 5,056 | |
Offsetting Derivative Instruments | 0 | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | $ 5,056 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | $ (14,458) | $ 26,740 | $ 73,224 | $ 17,656 |
Home Services and Other | Interest rate contracts | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | 0 | (43) | (228) | |
Energy Services | Physical commodity contracts | Operating revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | (18,061) | 1,435 | 3,871 | 74 |
Energy Services | Physical commodity contracts | Gas purchases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | 1,014 | 2,392 | (2,288) | 266 |
Energy Services | Financial commodity contracts | Gas purchases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | 2,408 | 22,919 | 71,820 | 17,732 |
Energy Services | Foreign currency contracts | Gas purchases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | 181 | 37 | (179) | (188) |
Natural Gas Distribution | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | 2,973 | (9,556) | (15,192) | (1,904) |
Natural Gas Distribution | Physical commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | 308 | 812 | 1,357 | 5,225 |
Natural Gas Distribution | Financial commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | 1,029 | (10,368) | (11,493) | (7,129) |
Natural Gas Distribution | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | $ 1,636 | $ 0 | $ (5,056) | $ 0 |
DERIVATIVE INSTRUMENTS - EFFECT
DERIVATIVE INSTRUMENTS - EFFECT OF DERIVATIVE INSTRUMENTS DESIGNATED AS CASH FLOW HEDGES ON OCI (Details) - Treasury Lock - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ (807) | $ 0 | $ (13,299) | $ 0 |
Interest expense | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) | $ 0 | $ 0 | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - VOLUME
DERIVATIVE INSTRUMENTS - VOLUME (Details) - Bcf | Jun. 30, 2020 | Sep. 30, 2019 |
Natural Gas Distribution | Long | Futures | ||
Derivative [Line Items] | ||
Notional amount | 18.8 | 27.6 |
Natural Gas Distribution | Long | Physical | ||
Derivative [Line Items] | ||
Notional amount | 10.3 | 11.6 |
Energy Services | Long | Physical | ||
Derivative [Line Items] | ||
Notional amount | 12.6 | 44.5 |
Energy Services | Short | Futures | ||
Derivative [Line Items] | ||
Notional amount | (38.4) | (29.6) |
Energy Services | Short | Swaps | ||
Derivative [Line Items] | ||
Notional amount | 2.3 | 5 |
DERIVATIVE INSTRUMENTS - BROKER
DERIVATIVE INSTRUMENTS - BROKER MARGIN DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Natural Gas Distribution | ||
Derivative [Line Items] | ||
Broker margin - Current assets | $ 0 | $ 1,982 |
Accounts payable and other | (219) | 0 |
Energy Services | ||
Derivative [Line Items] | ||
Broker margin - Current assets | $ 52,211 | $ 71,741 |
DERIVATIVE INSTRUMENTS - CREDIT
DERIVATIVE INSTRUMENTS - CREDIT RISK EXPOSURE (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2020USD ($) | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | $ 170,137 |
Investment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | 126,026 |
Noninvestment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | 8,915 |
Internally rated investment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | 22,877 |
Internally rated noninvestment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | $ 12,319 |
FAIR VALUE - DEBT (Details)
FAIR VALUE - DEBT (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance lease | $ 77,589 | |
Finance lease | $ 35,400 | |
NJNG | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt issuance costs | 9,200 | 9,000 |
NJR | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt issuance costs | 1,500 | 2,000 |
Solar Asset Financing | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 130,800 | 91,400 |
Fair market value | Solar Asset Financing | Clean Energy Ventures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 148,300 | 98,600 |
Level 2 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 1,492,845 | 1,442,845 |
Level 2 | Fair market value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 1,719,734 | $ 1,568,864 |
FAIR VALUE - HIERARCHY (Details
FAIR VALUE - HIERARCHY (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other | $ 1,814 | $ 1,706 |
Total assets at fair value | 73,700 | 34,235 |
Total liabilities at fair value | 70,694 | 76,444 |
Physical commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 8,177 | 8,624 |
Liabilities | 39,823 | 40,426 |
Financial commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 27,499 | 23,904 |
Liabilities | 14,766 | 35,732 |
Foreign currency contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 38 | 1 |
Liabilities | 253 | 286 |
Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 15,852 | |
Quoted Prices in Active Markets for Identical Assets, (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other | 1,814 | 1,706 |
Total assets at fair value | 63,335 | 21,734 |
Total liabilities at fair value | 14,766 | 35,732 |
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 |
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 | 25,349 | 20,028 |
Liabilities | 14,766 | 35,732 |
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 | 0 |
Liabilities | 0 | 0 |
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] | ||
Liabilities | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other | 0 | 0 |
Total assets at fair value | 10,365 | 12,501 |
Total liabilities at fair value | 55,928 | 40,712 |
Significant Other Observable Inputs (Level 2) | Physical commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 8,177 | 8,624 |
Liabilities | 39,823 | 40,426 |
Significant Other Observable Inputs (Level 2) | Financial commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 2,150 | 3,876 |
Liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Foreign currency contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 38 | 1 |
Liabilities | 253 | 286 |
Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 15,852 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other | 0 | 0 |
Total assets at fair value | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
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 |
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 |
Significant Unobservable Inputs (Level 3) | Foreign currency contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | $ 0 |
Significant Unobservable Inputs (Level 3) | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 36,172 | |
Money market funds | Quoted Prices in Active Markets for Identical Assets, (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 36,172 | |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Money market funds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 |
INVESTMENTS IN EQUITY INVESTE_3
INVESTMENTS IN EQUITY INVESTEES (Details) $ in Thousands | Jan. 30, 2020phasemi | Jun. 30, 2020USD ($)mi | Sep. 30, 2019USD ($) |
Schedule of Equity Method Investments [Line Items] | |||
Investments in equity investees | $ 205,800 | $ 200,268 | |
Deferred tax gross up | $ 4,600 | 4,100 | |
PennEast | NJR Pipeline | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 20.00% | ||
Steckman Ridge | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in equity investees | $ 112,909 | 114,428 | |
Total outstanding principal balance of loans | $ 70,400 | 70,400 | |
Ownership percentage | 50.00% | ||
PennEast | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in equity investees | $ 92,891 | $ 85,840 | |
Ownership percentage | 20.00% | ||
Construction plan, project area (in miles) | mi | 68 | 120 | |
Number of phases | phase | 2 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Net income, as reported | $ (27,219) | $ 88,505 | $ 89,361 | $ (8,402) | $ 73,573 | $ 86,248 | $ 150,647 | $ 151,419 |
Basic earnings per share | ||||||||
Weighted average shares of common stock outstanding-basic (in shares) | 95,764,000 | 89,600,000 | 94,420,000 | 88,995,000 | ||||
Basic (loss) earnings per common share (usd per share) | $ (0.28) | $ (0.09) | $ 1.60 | $ 1.70 | ||||
Diluted earnings per share | ||||||||
Weighted average shares of common stock outstanding-basic (in shares) | 95,764,000 | 89,600,000 | 94,420,000 | 88,995,000 | ||||
Other (in shares) | 0 | 0 | 298,000 | 407,000 | ||||
Weighted average shares of common stock outstanding-diluted (in shares) | 95,764,000 | 89,600,000 | 94,718,000 | 89,402,000 | ||||
Diluted (loss) earnings per common share (usd per share) | $ (0.28) | $ (0.09) | $ 1.59 | $ 1.69 | ||||
Anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares) | 310,000 | 409,000 | 0 | |||||
Share-based Payment Arrangement | ||||||||
Diluted earnings per share | ||||||||
Anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares) | 251,780 | 95,817 |
DEBT - CREDIT FACILITIES NARRAT
DEBT - CREDIT FACILITIES NARRATIVE (Details) - USD ($) | Apr. 24, 2020 | Oct. 09, 2019 | Jun. 30, 2020 | Dec. 13, 2019 | Sep. 30, 2019 |
Bridge Loan | |||||
Line of Credit Facility [Line Items] | |||||
Face amount | $ 350,000,000 | ||||
Debt, current | $ 137,100,000 | ||||
Bridge Loan | Debt Instrument, Interest Rate, First 180 Days | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.875% | ||||
Bridge Loan | Debt Instrument, Interest Rate, After 180 Days | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.075% | ||||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, term | 364 days | ||||
Bank revolving credit facilities | $ 250,000,000 | ||||
Term of credit facility before conversion | 6 months | ||||
Revolving Credit Facility | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.625% | ||||
NJR | Credit Facilities Due April 2021 | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Bank revolving credit facilities | $ 250,000,000 | $ 150,000,000 | $ 0 |
DEBT - CREDIT FACILITIES (Detai
DEBT - CREDIT FACILITIES (Details) - USD ($) | Jun. 30, 2020 | Apr. 24, 2020 | Dec. 13, 2019 | Sep. 30, 2019 |
NJR | Letter of Credit on Behalf of NJRES | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit outstanding, amount | $ 8,500,000 | $ 4,800,000 | ||
NJNG | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit outstanding, amount | 731,000 | 731,000 | ||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Bank revolving credit facilities | $ 250,000,000 | |||
Revolving Credit Facility | Committed Credit Facilities Due December 2023 | NJR | ||||
Line of Credit Facility [Line Items] | ||||
Bank revolving credit facilities | 425,000,000 | 425,000,000 | ||
Amount outstanding at end of period | $ 416,300,000 | $ 25,450,000 | ||
Weighted average interest rate at end of period | 1.06% | 3.04% | ||
Amount available at end of period | $ 244,000 | $ 394,800,000 | ||
Revolving Credit Facility | Committed Credit Facilities Due December 2023 | NJNG | ||||
Line of Credit Facility [Line Items] | ||||
Bank revolving credit facilities | 250,000,000 | 250,000,000 | ||
Amount outstanding at end of period | $ 0 | $ 0 | ||
Weighted average interest rate at end of period | 0.25% | 0.00% | ||
Amount available at end of period | $ 249,269,000 | $ 249,269,000 | ||
Revolving Credit Facility | Credit Facilities Due April 2021 | NJR | ||||
Line of Credit Facility [Line Items] | ||||
Bank revolving credit facilities | 250,000,000 | $ 150,000,000 | 0 | |
Amount outstanding at end of period | $ 0 | $ 0 | ||
Weighted average interest rate at end of period | 0.00% | 0.00% | ||
Amount available at end of period | $ 250,000,000 | $ 0 |
DEBT - LONG TERM DEBT (Details)
DEBT - LONG TERM DEBT (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jul. 23, 2020 | May 14, 2020 | Apr. 29, 2020 | |
Debt Instrument [Line Items] | ||||||||
Proceeds from sale-leaseback transaction | $ 9,895,000 | |||||||
Proceeds from sale-leaseback transaction - solar | $ 42,900,000 | $ 42,927,000 | 0 | |||||
Clean Energy Ventures | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Sale leaseback transaction lease term | 5 years | |||||||
Clean Energy Ventures | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Sale leaseback transaction lease term | 15 years | |||||||
NJNG | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from sale-leaseback transaction | $ 4,000,000 | $ 9,900,000 | ||||||
Final principal payments for early purchase options | $ 1,200,000 | $ 1,100,000 | ||||||
NJNG | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt issued | $ 125,000,000 | |||||||
NJNG | Fixed Interest Rate Maturing 2050 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt issued | $ 50,000,000 | $ 50,000,000 | $ 100,000,000 | |||||
Debt instrument interest rate | 3.13% | 3.13% | 3.13% | |||||
NJNG | Fixed Interest Rate Maturing 2060 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt issued | $ 25,000,000 | |||||||
Debt instrument interest rate | 3.33% | |||||||
NJR | Treasury Lock | ||||||||
Debt Instrument [Line Items] | ||||||||
Accumulated other comprehensive loss, net of tax | $ 2,500,000 | |||||||
NJR | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt issued | $ 260,000,000 | |||||||
NJR | Fixed Interest Rate Maturing 2030 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt issued | $ 130,000,000 | |||||||
Debt instrument interest rate | 3.50% | |||||||
NJR | Fixed Interest Rate Maturing 2032 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt issued | $ 130,000,000 | |||||||
Debt instrument interest rate | 3.60% | |||||||
Subsequent Event | NJNG | Fixed Interest Rate Maturing 2050 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt issued | $ 50,000,000 | |||||||
Debt instrument interest rate | 3.13% | |||||||
Subsequent Event | NJNG | Fixed Interest Rate Maturing 2060 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt issued | $ 25,000,000 | |||||||
Debt instrument interest rate | 3.33% |
EMPLOYEE BENEFIT PLANS - COMPON
EMPLOYEE BENEFIT PLANS - COMPONENTS OF NET PERIODIC COST (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 2,056 | $ 1,845 | $ 6,167 | $ 5,536 |
Interest cost | 2,647 | 3,043 | 7,940 | 9,129 |
Expected return on plan assets | (5,145) | (4,763) | (15,434) | (14,290) |
Recognized actuarial loss | 2,606 | 1,442 | 7,818 | 4,324 |
Prior service cost amortization | 25 | 25 | 76 | 76 |
Net periodic benefit cost | 2,189 | 1,592 | 6,567 | 4,775 |
OPEB | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1,213 | 1,101 | 3,640 | 3,303 |
Interest cost | 1,757 | 2,081 | 5,270 | 6,243 |
Expected return on plan assets | (1,628) | (1,379) | (4,883) | (4,137) |
Recognized actuarial loss | 1,861 | 1,617 | 5,582 | 4,850 |
Prior service cost amortization | (49) | (91) | (148) | (273) |
Net periodic benefit cost | $ 3,154 | $ 3,329 | $ 9,461 | $ 9,986 |
EMPLOYEE BENEFIT PLANS - ADDITI
EMPLOYEE BENEFIT PLANS - ADDITIONAL INFORMATION (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 0 | $ 0 |
OPEB | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated future employer contributions | 5,000,000 | |
OPEB | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated future employer contributions | $ 10,000,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 9 Months Ended | |||||||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2024 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | May 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||||||
Investment tax credit, solar property | 30.00% | 30.00% | ||||||
Income tax benefit, solar investment tax credit, net of deferred taxes | $ 10,000,000 | |||||||
Unrecognized tax benefits | $ 4,900,000 | $ 0 | ||||||
Forecasted effective tax rate | (1.20%) | (4.60%) | ||||||
Tax credit carryforwards expected, net | $ 37,500,000 | $ 46,300,000 | ||||||
Revaluation of deferred tax assets and liabilities | $ 2,300,000 | $ 5,400,000 | ||||||
Actual effective tax rate | (2.80%) | (8.50%) | ||||||
Deferred employer portion of OASDI | $ 1,300,000 | |||||||
ITC carryforward | $ 184,700,000 | 154,200,000 | ||||||
Effective term | 20 years | |||||||
Deferred tax assets, operating loss carryforwards, domestic | $ 24,100,000 | |||||||
Deferred tax assets, operating loss carryforwards, domestic, refundable and receivables | 22,800,000 | 22,800,000 | ||||||
Scenario, Forecast | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Investment tax credit, solar property | 10.00% | 22.00% | 26.00% | |||||
Federal | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Net operating loss carryforwards | 134,000,000 | 134,000,000 | ||||||
State | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Net operating loss carryforwards | $ 489,700,000 | 340,200,000 | ||||||
State | Minimum | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Effective term | 7 years | |||||||
State | Maximum | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Effective term | 20 years | |||||||
New Jersey, Montana, Iowa, and Kansas | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Valuation allowance | $ 1,800,000 | $ 4,000,000 | ||||||
New Jersey | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Valuation allowance | 13,600,000 | |||||||
Recognition of additional income tax benefit | $ 15,300,000 |
LEASES - ADDITIONAL INFORMATION
LEASES - ADDITIONAL INFORMATION (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2020USD ($)leaseextension | Jun. 30, 2020USD ($)leaseextension | |
Lessee, Lease, Description [Line Items] | ||
ROU asset obtained in exchange for operating lease liability | $ 270 | $ 34,200 |
ROU asset obtained in exchange for finance lease liability | $ 0 | $ 49,700 |
Weighted average remaining lease term, operating lease | 27 years 3 months 18 days | 27 years 3 months 18 days |
Weighted average remaining lease term, finance lease | 2 years 4 months 13 days | 2 years 4 months 13 days |
Operating lease, discount rate | 3.18% | 3.18% |
Finance lease, discount rate | 2.54% | 2.54% |
Number of leases not yet commenced | lease | 3 | 3 |
Lease not yet commenced, estimated payments | $ 6,100 | $ 6,100 |
Number of options to extend | extension | 2 | 2 |
Renewal term | 5 years | 5 years |
Solar Property | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 15 years | 15 years |
Renewal term | 5 years | 5 years |
Solar Property | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 25 years | 25 years |
Renewal term | 10 years | 10 years |
Office Building | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 1 year | 1 year |
Office Building | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 25 years | 25 years |
Meter License | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 7 years | 7 years |
Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 5 years | 5 years |
Storage and Capacity | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract | 50 years | 50 years |
LEASES - LEASE COST (Details)
LEASES - LEASE COST (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 1,274 | $ 3,734 |
Interest on lease liabilities | 248 | 796 |
Total finance lease cost | 1,522 | 4,530 |
Operating lease cost | 1,650 | 4,761 |
Short-term lease cost | 95 | 721 |
Variable lease cost | 597 | 1,707 |
Total lease cost | $ 3,864 | $ 11,719 |
LEASES - SUPPLEMENTAL CASH FLOW
LEASES - SUPPLEMENTAL CASH FLOW INFORMATION (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2020USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 4,133 |
Operating cash flows from finance leases | 952 |
Financing cash flows from finance leases | $ 5,505 |
LEASES - RIGHT-OF-USE ASSETS AN
LEASES - RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
NONCURRENT ASSETS | ||
Operating lease assets | $ 101,657 | $ 0 |
Finance lease assets | 72,357 | |
Total lease assets | 174,014 | |
Current | ||
Operating lease liabilities | 4,458 | 0 |
Finance lease liabilities | 10,645 | |
Noncurrent | ||
Operating lease liabilities | 96,118 | $ 0 |
Finance lease liabilities | 66,944 | |
Total lease liabilities | $ 178,165 |
LEASES - MATURITIES OF LEASE LI
LEASES - MATURITIES OF LEASE LIABILITIES (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Operating Leases | |
Remainder of fiscal 2020 | $ 2,137 |
2021 | 6,481 |
2022 | 6,387 |
2023 | 6,356 |
2024 | 5,985 |
Thereafter | 126,331 |
Total future minimum lease payments | 153,677 |
Less: Interest component | (53,101) |
Total lease liability | 100,576 |
Finance Leases | |
Remainder of fiscal 2020 | 3,417 |
2021 | 56,271 |
2022 | 6,004 |
2023 | 4,622 |
2024 | 5,279 |
Thereafter | 5,720 |
Total future minimum lease payments | 81,313 |
Less: Interest component | (3,724) |
Total lease liability | $ 77,589 |
LEASES - MATURITIES OF LEASE _2
LEASES - MATURITIES OF LEASE LIABILITIES UNDER TOPIC 840 (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Leases | |
2020 | $ 4,411 |
2021 | 4,698 |
2022 | 4,609 |
2023 | 4,579 |
2024 | 4,199 |
Thereafter | 54,405 |
Capital Leases | |
2020 | 11,707 |
2021 | 6,603 |
2022 | 7,494 |
2023 | 3,995 |
2024 | 4,652 |
Thereafter | $ 4,173 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2020USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Current charges recoverable through BGSS | $ 125,700 |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2020 | 390,340 |
2021 | 211,831 |
2022 | 173,022 |
2023 | 129,053 |
2024 | 108,389 |
Thereafter | 618,045 |
Energy Services | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2020 | 251,378 |
2021 | 69,838 |
2022 | 43,184 |
2023 | 26,427 |
2024 | 19,336 |
Thereafter | 41,535 |
Energy Services | Natural gas purchases | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2020 | 161,351 |
2021 | 1,264 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Energy Services | Storage demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2020 | 23,483 |
2021 | 12,975 |
2022 | 10,116 |
2023 | 4,063 |
2024 | 2,173 |
Thereafter | 1,329 |
Energy Services | Pipeline demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2020 | 66,544 |
2021 | 55,599 |
2022 | 33,068 |
2023 | 22,364 |
2024 | 17,163 |
Thereafter | 40,206 |
Natural Gas Distribution | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2020 | 138,962 |
2021 | 141,993 |
2022 | 129,838 |
2023 | 102,626 |
2024 | 89,053 |
Thereafter | 576,510 |
Natural Gas Distribution | Natural gas purchases | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2020 | 13,273 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Natural Gas Distribution | Storage demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2020 | 36,062 |
2021 | 34,483 |
2022 | 23,424 |
2023 | 13,409 |
2024 | 9,154 |
Thereafter | 4,077 |
Natural Gas Distribution | Pipeline demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2020 | 89,627 |
2021 | 107,510 |
2022 | 106,414 |
2023 | 89,217 |
2024 | 79,899 |
Thereafter | $ 572,433 |
Minimum | Energy Services | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, contract term | 1 year |
Maximum | Energy Services | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, contract term | 10 years |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - LEGAL PROCEEDINGS (Details) - USD ($) $ in Thousands | Mar. 16, 2020 | Mar. 15, 2020 | Jun. 30, 2020 | Sep. 30, 2019 |
Site Contingency [Line Items] | ||||
Manufactured gas plant remediation | $ 128,886 | $ 131,080 | ||
Recovery from third party of environmental remediation cost, period | 7 years | |||
Regulatory assets | $ 451,115 | $ 496,637 | ||
Expended, net of recoveries | ||||
Site Contingency [Line Items] | ||||
Regulatory assets | 36,100 | |||
RAC | ||||
Site Contingency [Line Items] | ||||
Approved rate, amount | $ 9,700 | $ 8,500 | ||
Minimum | ||||
Site Contingency [Line Items] | ||||
Product liability contingency, loss exposure in excess of accrual, best estimate | 115,900 | |||
Maximum | ||||
Site Contingency [Line Items] | ||||
Product liability contingency, loss exposure in excess of accrual, best estimate | $ 186,200 |
COMMON STOCK EQUITY - NARRATIVE
COMMON STOCK EQUITY - NARRATIVE (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 04, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Class of Stock [Line Items] | |||
Number of shares issued in transaction (in shares) | 6,545,454 | ||
Proceeds from issuance of common stock - public equity offering | $ 212,900 | $ 212,900 | $ 0 |
Directly Issued Common Stock | |||
Class of Stock [Line Items] | |||
Number of shares issued in transaction (in shares) | 5,333,334 | ||
Forward Sales Agreements | |||
Class of Stock [Line Items] | |||
Number of shares issued in transaction (in shares) | 1,212,120 | ||
Conversion price per share (usd per share) | $ 40.0125 | ||
Forward sales agreement, settlement, amount | $ 7,000 | ||
Forward sales agreement, settlement (in shares) | 227,461 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Utility | $ 128,532 | $ 120,782 | $ 645,375 | $ 622,167 |
Nonutility | 170,442 | 314,160 | 908,249 | 1,490,797 |
Total operating revenues | 298,974 | 434,942 | 1,553,624 | 2,112,964 |
Depreciation and amortization | 31,216 | 23,149 | 89,758 | 67,292 |
Interest income | 147 | 496 | 2,054 | 1,114 |
Interest expense, net of capitalized interest | 15,144 | 11,648 | 50,417 | 37,643 |
Income tax provision (benefit) | (2,190) | (1,941) | (4,092) | (11,854) |
Equity in earnings of affiliates | 3,213 | 3,495 | 10,191 | 10,027 |
Net financial earnings (loss) | (5,817) | (17,506) | 141,524 | 149,004 |
Capital expenditures | 139,890 | 146,616 | 367,239 | 344,018 |
Investments in equity investees | 225 | 1,239 | 1,491 | 2,696 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | 287,334 | 422,253 | 1,520,648 | 2,084,987 |
Depreciation and amortization | 30,931 | 22,952 | 89,290 | 66,889 |
Interest income | 608 | 1,301 | 3,722 | 3,696 |
Interest expense, net of capitalized interest | 14,885 | 11,909 | 50,123 | 38,478 |
Income tax provision (benefit) | (2,131) | (3,642) | (6,309) | (12,355) |
Net financial earnings (loss) | (5,221) | (21,911) | 140,709 | 146,106 |
Capital expenditures | 137,928 | 145,692 | 365,262 | 342,192 |
Operating Segments | Natural Gas Distribution | ||||
Segment Reporting Information [Line Items] | ||||
Utility | 128,532 | 120,782 | 645,375 | 622,167 |
Total operating revenues | 128,532 | 120,782 | 645,375 | 622,167 |
Depreciation and amortization | 18,269 | 14,689 | 53,186 | 42,557 |
Interest income | 135 | 187 | 378 | 567 |
Interest expense, net of capitalized interest | 7,455 | 6,301 | 22,760 | 18,166 |
Income tax provision (benefit) | 939 | (1,391) | 29,276 | 16,705 |
Net financial earnings (loss) | 11,968 | (3,795) | 142,160 | 96,464 |
Capital expenditures | 88,171 | 100,473 | 238,010 | 239,569 |
Operating Segments | Clean Energy Ventures | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 13,396 | 11,450 | 25,603 | 37,707 |
Total operating revenues | 13,396 | 11,450 | 25,603 | 37,707 |
Depreciation and amortization | 10,121 | 8,239 | 29,429 | 24,253 |
Interest expense, net of capitalized interest | 5,070 | 4,320 | 14,397 | 14,405 |
Income tax provision (benefit) | 4,193 | (1,787) | (38,432) | (39,033) |
Net financial earnings (loss) | (13,891) | (7,138) | (2,817) | 24,797 |
Capital expenditures | 41,182 | 38,813 | 110,968 | 91,333 |
Operating Segments | Energy Services | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 133,740 | 290,083 | 816,003 | 1,416,837 |
Total operating revenues | 133,740 | 290,083 | 816,003 | 1,416,837 |
Depreciation and amortization | 28 | 23 | 84 | 75 |
Interest income | 10 | 26 | 99 | 40 |
Interest expense, net of capitalized interest | 517 | 766 | 2,680 | 4,277 |
Income tax provision (benefit) | (8,909) | (1,193) | (606) | 7,063 |
Net financial earnings (loss) | (6,913) | (14,030) | (9,511) | 13,644 |
Operating Segments | Midstream | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 11,143 | 0 | 29,949 | 0 |
Total operating revenues | 11,143 | 0 | 29,949 | 0 |
Depreciation and amortization | 2,513 | 1 | 6,591 | 4 |
Interest income | 463 | 1,088 | 3,245 | 3,089 |
Interest expense, net of capitalized interest | 1,843 | 522 | 10,286 | 1,630 |
Income tax provision (benefit) | 1,646 | 729 | 3,453 | 2,910 |
Equity in earnings of affiliates | 3,615 | 4,167 | 11,200 | 11,966 |
Net financial earnings (loss) | 3,615 | 3,052 | 10,877 | 11,201 |
Capital expenditures | 8,575 | 6,406 | 16,284 | 11,290 |
Investments in equity investees | 225 | 1,239 | 1,491 | 2,696 |
Intercompany | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 206 | 455 | 947 | 1,652 |
Intercompany | Energy Services | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | (197) | (62) | 1,656 | 8,276 |
Intercompany | Midstream | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 720 | 0 | 2,062 | 0 |
Home Services and Other | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 12,163 | 12,627 | 36,694 | 36,253 |
Total operating revenues | 12,163 | 12,627 | 36,694 | 36,253 |
Depreciation and amortization | 265 | 230 | 761 | 673 |
Interest income | 157 | 515 | 856 | 1,620 |
Interest expense, net of capitalized interest | 427 | 407 | 1,264 | 1,410 |
Income tax provision (benefit) | (131) | 1,705 | 2,044 | 854 |
Net financial earnings (loss) | (582) | 4,437 | 675 | 2,932 |
Capital expenditures | 1,962 | 924 | 1,977 | 1,826 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | (729) | (393) | (4,665) | (9,928) |
Depreciation and amortization | 20 | (33) | (293) | (270) |
Interest income | (618) | (1,320) | (2,524) | (4,202) |
Interest expense, net of capitalized interest | (168) | (668) | (970) | (2,245) |
Income tax provision (benefit) | 72 | (4) | 173 | (353) |
Equity in earnings of affiliates | (402) | (672) | (1,009) | (1,939) |
Net financial earnings (loss) | $ (14) | $ (32) | $ 140 | $ (34) |
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, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting [Abstract] | ||||||||
Net financial earnings (loss) | $ (5,817) | $ (17,506) | $ 141,524 | $ 149,004 | ||||
Less: | ||||||||
Unrealized loss (gain) on derivative instruments and related transactions | 23,712 | (24,646) | (21,827) | (25,353) | ||||
Tax effect | (5,639) | 5,885 | 5,189 | 6,034 | ||||
Effects of economic hedging related to natural gas inventory | 4,739 | 11,317 | 10,474 | 12,073 | ||||
Tax effect | (1,126) | (2,689) | (2,489) | (2,869) | ||||
NFE tax adjustment | (284) | 1,029 | (470) | 7,700 | ||||
NET (LOSS) INCOME | $ (27,219) | $ 88,505 | $ 89,361 | $ (8,402) | $ 73,573 | $ 86,248 | $ 150,647 | $ 151,419 |
REPORTING SEGMENT AND OTHER O_5
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 5,282,084 | $ 4,372,985 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 5,366,756 | 4,460,434 |
Operating Segments | Natural Gas Distribution | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 3,319,754 | 3,064,309 |
Operating Segments | Clean Energy Ventures | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,007,240 | 864,323 |
Operating Segments | Energy Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 225,830 | 290,847 |
Operating Segments | Midstream | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 813,932 | 240,955 |
Home Services and Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 133,773 | 104,411 |
Intercompany Assets | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ (218,445) | $ (191,860) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)DTHcontractBcf | Jun. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Related Party Transaction [Line Items] | |||||
Demand fees expense recognized pertaining to related party agreement | $ 1,518 | $ 2,126 | $ 4,548 | $ 6,455 | |
Demand fees payable | 791 | $ 791 | $ 790 | ||
Number of asset management agreements | contract | 4 | ||||
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 | 1,491 | 1,431 | 4,462 | 4,349 | |
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 | 27 | $ 695 | 86 | $ 2,106 | |
Demand fees payable | $ 16 | $ 16 | $ 15 | ||
NJNG to PennEast Affiliate | |||||
Related Party Transaction [Line Items] | |||||
Natural gas transportation capacity agreement, period | 15 years | ||||
Transportation capacity under precedent agreement with PennEast (in bcf per day) | DTH | 180,000 | ||||
NJRES to PennEast Affiliate | |||||
Related Party Transaction [Line Items] | |||||
Natural gas transportation capacity agreement, period | 5 years | ||||
Transportation capacity under precedent agreement with PennEast (in bcf per day) | DTH | 50,000 | ||||
NJN G to Adelphia Affiliate | |||||
Related Party Transaction [Line Items] | |||||
Transportation capacity under precedent agreement with PennEast (in bcf per day) | DTH | 130,000 | ||||
Leaf River Energy Center LLC | |||||
Related Party Transaction [Line Items] | |||||
Natural gas sold at cost under asset management agreement (in Bcf) | Bcf | 3 | ||||
Storage capacity agreement term | 5 years |
ACQUISITIONS AND DISPOSITIONS -
ACQUISITIONS AND DISPOSITIONS - Additional Information (Details) $ in Thousands, DTH in Millions | Jan. 13, 2020USD ($)mi | Dec. 19, 2019 | Oct. 11, 2019USD ($)DTH | Nov. 30, 2017USD ($) | Oct. 31, 2017USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) |
Business Acquisition [Line Items] | |||||||
Payments for asset acquisitions | $ 523,647 | $ 0 | |||||
Talen's Membership Interests In IEC | Talen Generation, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Pipeline length owned | mi | 84 | ||||||
Consideration to be transferred | $ 166,000 | ||||||
Cash paid related to acquisition | $ 156,000 | $ 10,000 | |||||
Contingent consideration arrangements, range of outcomes, value, high | $ 23,000 | ||||||
Natural gas transportation capacity agreement, period | 10 years | ||||||
Leaf River Energy Center LLC | NJR Pipeline | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of voting interests acquired | 100.00% | ||||||
Payments for asset acquisitions | $ 367,500 | ||||||
Natural gas capacity of acquiree | DTH | 32.2 | ||||||
Minimum | Talen's Membership Interests In IEC | Talen Generation, LLC | |||||||
Business Acquisition [Line Items] | |||||||
PP&E useful life | 5 years | ||||||
Minimum | Leaf River Energy Center LLC | NJR Pipeline | |||||||
Business Acquisition [Line Items] | |||||||
PP&E useful life | 5 years | ||||||
Maximum | Talen's Membership Interests In IEC | Talen Generation, LLC | |||||||
Business Acquisition [Line Items] | |||||||
PP&E useful life | 30 years | ||||||
Maximum | Leaf River Energy Center LLC | NJR Pipeline | |||||||
Business Acquisition [Line Items] | |||||||
PP&E useful life | 50 years |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS - Net Assets Acquired (Details) - USD ($) $ in Thousands | Jan. 13, 2020 | Oct. 11, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Business Acquisition [Line Items] | ||||
Purchase price | $ 523,647 | $ 0 | ||
NJR Pipeline | Leaf River Energy Center LLC | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 367,500 | |||
Net working capital adjustment | 4,111 | |||
Transaction costs | 1,664 | |||
Total costs capitalized | 373,275 | |||
Identifiable assets acquired | ||||
Property, plant and equipment | 365,715 | |||
Base gas | 3,445 | |||
Other assets, net | 4 | |||
Net working capital | 4,111 | |||
Net assets acquired | $ 373,275 | |||
Talen Generation, LLC | Adelphia | Talen's Membership Interests In IEC | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 166,000 | |||
Net working capital adjustment | (449) | |||
Transaction costs | 9,456 | |||
Total costs capitalized | 175,007 | |||
Identifiable assets acquired | ||||
Property, plant and equipment | 174,438 | |||
Other assets, net | 1,018 | |||
Net working capital | (449) | |||
Net assets acquired | $ 175,007 |
Uncategorized Items - njr10qjun
Label | Element | Value |
Accounting Standards Update 2017-05 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 4,970,000 |
Accounting Standards Update 2017-05 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 4,970,000 |
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 |
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) |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (2,736,000) |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,736,000) |