Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Nov. 14, 2022 | Mar. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2022 | ||
Current Fiscal Year End Date | --09-30 | ||
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 | 938‑1000 | ||
Title of 12(b) Security | Common Stock ‑ $2.50 Par Value | ||
Trading Symbol | NJR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,388,979,332 | ||
Entity Common Stock, Shares Outstanding | 96,386,496 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for the Annual Meeting of Shareowners (Proxy Statement) to be held on January 25, 2023, are incorporated by reference into Part I and Part III of this report. | ||
Entity Central Index Key | 0000356309 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Sep. 30, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Morristown, New Jersey |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
OPERATING REVENUES | |||
Utility | $ 1,127,417 | $ 731,459 | $ 729,923 |
Nonutility | 1,778,562 | 1,425,154 | 1,223,745 |
Total operating revenues | 2,905,979 | 2,156,613 | 1,953,668 |
Natural gas purchases: | |||
Related parties | 7,395 | 7,013 | 6,083 |
Operation and maintenance | 361,866 | 366,905 | 278,143 |
Regulatory rider expenses | 59,437 | 38,304 | 34,529 |
Depreciation and amortization | 129,249 | 111,387 | 107,368 |
Total operating expenses | 2,499,504 | 1,868,263 | 1,724,759 |
OPERATING INCOME | 406,475 | 288,350 | 228,909 |
Other income, net | 22,295 | 24,597 | 23,878 |
Interest expense, net of capitalized interest | 85,830 | 78,559 | 67,597 |
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES | 342,940 | 234,388 | 185,190 |
Income tax provision | 76,195 | 33,286 | 36,494 |
Equity in earnings (loss) of affiliates | 8,177 | (83,212) | 14,311 |
NET INCOME | $ 274,922 | $ 117,890 | $ 163,007 |
EARNINGS PER COMMON SHARE | |||
Basic (usd per share) | $ 2.86 | $ 1.23 | $ 1.72 |
Diluted (usd per share) | $ 2.85 | $ 1.22 | $ 1.71 |
WEIGHTED AVERAGE SHARES OUTSTANDING | |||
Basic (in shares) | 96,100 | 96,227 | 94,798 |
Diluted (in shares) | 96,488 | 96,560 | 95,103 |
Regulated | |||
Natural gas purchases: | |||
Gas purchases - Utility and Nonutility | $ 547,901 | $ 247,734 | $ 275,831 |
Unregulated | |||
Natural gas purchases: | |||
Gas purchases - Utility and Nonutility | $ 1,393,656 | $ 1,096,920 | $ 1,022,805 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 274,922 | $ 117,890 | $ 163,007 |
Other comprehensive income (loss), net of tax: | |||
Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax of $(317), $(350) and $(32), respectively | 1,054 | 1,021 | 108 |
Loss on derivatives designated as hedging instruments, net of tax of $0, $0 and $3,203, respectively | 0 | 0 | (10,505) |
Adjustment to postemployment benefit obligation, net of tax of $(8,657), $(2,575) and $567, respectively | 28,648 | 8,766 | (2,131) |
Net current-period other comprehensive income, net of tax | 29,702 | 9,787 | (12,528) |
Comprehensive income | $ 304,624 | $ 127,677 | $ 150,479 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Tax on reclassifications of losses to net income on derivatives | $ (317) | $ (350) | $ (32) |
Tax on loss on derivatives | 0 | 0 | 3,203 |
Tax on adjustment to postemployment benefit obligation | $ (8,657) | $ (2,575) | $ 567 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 274,922 | $ 117,890 | $ 163,007 |
Adjustments to reconcile net income to cash flows from operating activities | |||
Unrealized (gain) loss on derivative instruments | (59,906) | 54,203 | (9,644) |
Impairment of equity method investment | 0 | 92,000 | 0 |
Depreciation and amortization | 129,249 | 111,387 | 107,368 |
Amortization of acquired wholesale energy contracts | 2,561 | 4,604 | 4,924 |
Allowance for equity used during construction | (11,243) | (20,303) | (17,053) |
Allowance for doubtful accounts | 2,401 | 18,986 | 2,238 |
Non-cash lease expense | 4,850 | 3,920 | 3,851 |
Deferred income taxes | 81,659 | 23,796 | 34,346 |
Equivalent value of ITCs recognized on equipment financing | (7,542) | (6,482) | (6,482) |
Manufactured gas plant remediation costs | (17,538) | (17,532) | (7,651) |
Equity in earnings, net of distributions received from equity investees | 0 | (3,046) | (5,848) |
Cost of removal - asset retirement obligations | (1,289) | (1,129) | (245) |
Contributions to postemployment benefit plans | (6,785) | (7,669) | (9,032) |
Taxes related to stock-based compensation | (144) | (159) | 647 |
Changes in: | |||
Components of working capital | (77,687) | 10,254 | (8,096) |
Other noncurrent assets | (38,424) | 13,715 | (44,129) |
Other noncurrent liabilities | 48,396 | (3,481) | 5,280 |
Cash flows from operating activities | 323,480 | 390,954 | 213,481 |
Expenditures for: | |||
Cost of removal | (39,293) | (50,316) | (22,059) |
Acquisition of assets, net of cash acquired of $5.1 million | 0 | 0 | (523,647) |
Distribution from equity investees in excess of equity in earnings | 2,336 | 3,183 | 1,907 |
Investments in equity investees, net of return of capital | 5,479 | ||
Investments in equity investees, net of return of capital | (690) | (2,117) | |
Cash flows used in investing activities | (590,613) | (622,117) | (994,025) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from long-term debt | 360,000 | 0 | 660,000 |
Payments of long-term debt | (68,343) | (18,007) | (20,286) |
Proceeds from term loan | 150,000 | 0 | 350,000 |
Payments of term loan | 0 | 0 | (350,000) |
(Payments of) proceeds from short-term debt, net | (103,350) | 251,950 | 99,900 |
Proceeds from sale leaseback transactions - solar | 24,071 | 17,673 | 42,927 |
Proceeds from sale leaseback transactions - natural gas meters | 17,300 | 0 | 4,000 |
Payments of common stock dividends | (127,704) | (116,960) | (117,804) |
Proceeds from equity offering | 0 | 0 | 212,900 |
Cash settlement of equity forward agreement | 0 | (2,823) | 0 |
Proceeds from issuance of common stock - DRP | 14,745 | 15,105 | 18,080 |
Purchases of treasury stock | 0 | (27,217) | 0 |
Tax withholding payments related to net settled stock compensation | (4,177) | (1,938) | (3,813) |
Cash flows from financing activities | 262,542 | 117,783 | 895,904 |
Change in cash, cash equivalents and restricted cash | (4,591) | (113,380) | 115,360 |
Cash, cash equivalents and restricted cash at beginning of period | 6,043 | 119,423 | 4,063 |
Cash, cash equivalents and restricted cash at end of period | 1,452 | 6,043 | 119,423 |
CHANGES IN COMPONENTS OF WORKING CAPITAL | |||
Receivables | (16,658) | (81,366) | 5,065 |
Inventories | (80,801) | (25,257) | (3,254) |
Recovery of natural gas costs | 1,037 | (13,124) | 17,479 |
Natural gas purchases payable | 66,352 | 72,752 | (41,326) |
Natural gas purchases payable - related parties | (10) | 70 | 1 |
Deferred revenue | 33,802 | (1,763) | 1,922 |
Accounts payable and other | (34,259) | 31,826 | 18,468 |
Prepaid expenses | (406) | (1,527) | 2,548 |
Prepaid and accrued taxes | (1,516) | (3,449) | (2,376) |
Restricted broker margin accounts | (51,165) | 28,013 | (6,097) |
Customers’ credit balances and deposits | 660 | 6,652 | (1,182) |
Other current assets (liabilities) | 5,277 | (2,573) | 656 |
Total | (77,687) | 10,254 | (8,096) |
Cash paid for: | |||
Interest (net of amounts capitalized) | 84,375 | 78,650 | 66,146 |
Income taxes | 4,252 | 6,381 | 7,594 |
Accrued capital expenditures | 34,674 | 64,626 | 19,434 |
Utility plant | |||
Expenditures for: | |||
Payments to acquire PP&E | (259,081) | (376,312) | (290,040) |
Solar equipment | |||
Expenditures for: | |||
Payments to acquire PP&E | (146,676) | (87,852) | (133,841) |
Storage and Transportation and other | |||
Expenditures for: | |||
Payments to acquire PP&E | $ (153,378) | $ (110,130) | $ (24,228) |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Statement of Cash Flows [Abstract] | |
Cash acquired | $ 5.1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
PROPERTY, PLANT AND EQUIPMENT | ||
Utility plant, at cost | $ 3,576,691 | $ 3,324,611 |
Construction work in progress | 162,087 | 182,196 |
Nonutility plant and equipment, at cost | 1,577,259 | 1,124,896 |
Construction work in progress | 199,679 | 365,346 |
Total property, plant and equipment | 5,515,716 | 4,997,049 |
Accumulated depreciation and amortization, utility plant | (659,737) | (611,827) |
Accumulated depreciation and amortization, nonutility plant and equipment | (206,053) | (171,709) |
Property, plant and equipment, net | 4,649,926 | 4,213,513 |
CURRENT ASSETS | ||
Cash and cash equivalents | 1,107 | 4,749 |
Customer accounts receivable: | ||
Customer accounts receivable: Billed and Unbilled revenues | 222,297 | 212,838 |
Unbilled revenues | 13,769 | 10,351 |
Allowance for doubtful accounts | (19,379) | (24,652) |
Regulatory assets | 40,086 | 30,118 |
Natural gas in storage, at average cost | 273,644 | 193,606 |
Materials and supplies, at average cost | 20,324 | 19,561 |
Prepaid expenses | 8,572 | 8,166 |
Prepaid and accrued taxes | 54,501 | 51,211 |
Derivatives, at fair value | 24,635 | 35,251 |
Restricted broker margin accounts | 94,261 | 72,840 |
Other current assets | 22,270 | 20,235 |
Total current assets | 756,087 | 634,274 |
NONCURRENT ASSETS | ||
Investments in equity method investees | 106,571 | 114,529 |
Regulatory assets | 500,666 | 522,099 |
Operating lease assets | 168,520 | 173,928 |
Derivatives, at fair value | 6,385 | 3,403 |
Intangible assets, net | 2,348 | 5,029 |
Software costs | 6,120 | 5,582 |
Other noncurrent assets | 64,793 | 49,921 |
Total noncurrent assets | 855,403 | 874,491 |
Total assets | 6,261,416 | 5,722,278 |
CAPITALIZATION | ||
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding shares September 30, 2022 — 96,249,859; September 30, 2021 — 95,709,662 | 241,616 | 240,644 |
Premium on common stock | 519,697 | 502,584 |
Accumulated other comprehensive loss, net of tax | (4,826) | (34,528) |
Treasury stock at cost and other; shares September 30, 2022 — 611,045; September 30, 2021 — 762,313 | (6,805) | (12,448) |
Retained earnings | 1,067,528 | 934,610 |
Common stock equity | 1,817,210 | 1,630,862 |
Long-term debt | 2,485,402 | 2,162,164 |
Total capitalization | 4,302,612 | 3,793,026 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 75,069 | 72,840 |
Short-term debt | 423,950 | 377,300 |
Natural gas purchases payable | 235,049 | 168,697 |
Natural gas purchases payable to related parties | 851 | 861 |
Deferred revenue | 35,547 | 1,745 |
Accounts payable and other | 156,580 | 223,497 |
Dividends payable | 37,534 | 34,768 |
Accrued taxes | 5,130 | 3,356 |
Regulatory liabilities | 31,090 | 28,007 |
New Jersey Clean Energy Program | 15,697 | 16,308 |
Derivatives, at fair value | 49,848 | 87,145 |
Operating lease liabilities | 4,562 | 4,300 |
Customers’ credit balances and deposits | 33,246 | 32,586 |
Total current liabilities | 1,104,153 | 1,051,410 |
NONCURRENT LIABILITIES | ||
Deferred income taxes | 238,928 | 163,530 |
Deferred investment tax credits | 2,710 | 3,010 |
Deferred revenue | 753 | 847 |
Derivatives, at fair value | 14,191 | 13,497 |
Manufactured gas plant remediation | 127,060 | 135,012 |
Postemployment employee benefit liability | 82,867 | 169,267 |
Regulatory liabilities | 185,634 | 193,051 |
Operating lease liabilities | 138,382 | 141,363 |
Asset retirement obligation | 55,035 | 46,306 |
Other noncurrent liabilities | 9,091 | 11,959 |
Total noncurrent liabilities | 854,651 | 877,842 |
Commitments and contingent liabilities (Note 15) | ||
Total capitalization and liabilities | $ 6,261,416 | $ 5,722,278 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2022 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares outstanding (in shares) | 96,249,859 | 95,709,662 |
Treasury stock at cost and other, shares (in shares) | 611,045 | 762,313 |
CONSOLIDATED STATEMENTS OF COMM
CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY - 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, 2019 | 89,999,000 | ||||||
Balance as of beginning of period at Sep. 30, 2019 | $ 1,381,833 | $ 226,649 | $ 291,331 | $ (31,787) | $ (10,436) | $ 906,076 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 163,007 | 163,007 | |||||
Other comprehensive income (loss) | (12,528) | (12,528) | |||||
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) | 105,000 | ||||||
Incentive compensation plan | 3,772 | $ 261 | 3,511 | ||||
Dividend reinvestment plan (in shares) | [1] | 520,000 | |||||
Dividend reinvestment plan | [1] | 18,157 | 2,833 | 15,324 | |||
Cash dividend declared | (121,582) | (121,582) | |||||
Treasury stock and other (in shares) | (8,000) | ||||||
Treasury stock and other | (1,663) | (5,260) | 3,597 | ||||
Balance as of end of period (in shares) at Sep. 30, 2020 | 95,949,000 | ||||||
Balance as of end of period at Sep. 30, 2020 | 1,643,896 | $ 240,243 | 491,982 | (44,315) | 8,485 | 947,501 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 117,890 | 117,890 | |||||
Other comprehensive income (loss) | 9,787 | 9,787 | |||||
Common stock issued: | |||||||
Common stock offering | (2,823) | (2,823) | |||||
Incentive compensation plan (in shares) | 84,000 | ||||||
Incentive compensation plan | 4,263 | $ 210 | 4,053 | ||||
Dividend reinvestment plan (in shares) | [1] | 431,000 | |||||
Dividend reinvestment plan | [1] | 15,156 | $ 191 | 9,372 | 5,593 | ||
Cash dividend declared | (130,781) | (130,781) | |||||
Treasury stock and other (in shares) | (754,000) | ||||||
Treasury stock and other | $ (26,526) | (26,526) | |||||
Balance as of end of period (in shares) at Sep. 30, 2021 | 95,709,662 | 95,710,000 | |||||
Balance as of end of period at Sep. 30, 2021 | $ 1,630,862 | $ 240,644 | 502,584 | (34,528) | (12,448) | 934,610 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 274,922 | 274,922 | |||||
Other comprehensive income (loss) | 29,702 | 29,702 | |||||
Common stock issued: | |||||||
Incentive compensation plan (in shares) | 193,000 | ||||||
Incentive compensation plan | 9,146 | $ 481 | 8,665 | ||||
Dividend reinvestment plan (in shares) | [1] | 355,000 | |||||
Dividend reinvestment plan | [1] | 14,741 | $ 491 | 8,450 | 5,800 | ||
Cash dividend declared | (142,004) | (142,004) | |||||
Treasury stock and other (in shares) | (8,000) | ||||||
Treasury stock and other | $ (159) | (2) | (157) | ||||
Balance as of end of period (in shares) at Sep. 30, 2022 | 96,249,859 | 96,250,000 | |||||
Balance as of end of period at Sep. 30, 2022 | $ 1,817,210 | $ 241,616 | $ 519,697 | $ (4,826) | $ (6,805) | $ 1,067,528 | |
[1]Certain shares sold through the DRP issued from treasury stock are at average cost, which may differ from the actual market price paid. |
CONSOLIDATED STATEMENTS OF CO_3
CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividend declared per share (usd per share) | $ 1.4775 | $ 1.36 | $ 1.27 |
NATURE OF THE BUSINESS
NATURE OF THE BUSINESS | 12 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF THE BUSINESS | 1. NATURE OF THE BUSINESS The Company provides regulated natural gas distribution services, transmission and storage services and operates certain unregulated businesses primarily through the following: NJNG provides natural gas utility service to approximately 569,300 customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties in New Jersey and is subject to rate regulation by the BPU. NJNG comprises the Natural Gas Distribution segment. NJRCEV, the Company’s clean energy subsidiary, comprises the Clean Energy Ventures segment and invests in, owns and operates clean energy projects, including commercial and residential solar installations located in New Jersey, Connecticut, Rhode Island and New York. NJRES comprises the Energy Services segment. Energy Services maintains and transacts around a portfolio of natural gas transportation and storage 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 Storage and Transportation segment, invests in energy-related ventures through its subsidiaries. The Company operates natural gas storage and transmission assets through the wholly-owned subsidiaries of Leaf River and Adelphia Gateway and is subject to rate regulation by FERC. The Company holds a 50 percent combined ownership interest in Steckman Ridge, located in Pennsylvania, and a 20 percent ownership interest in PennEast, which are accounted for under the equity method of accounting. NJR Retail Holdings Corporation has one principal subsidiary: NJRHS, which provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey. NJRHS is included in Home Services and Other operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Other financial investments or contractual interests that lack the characteristics of a voting interest entity, which are commonly referred to as variable interest entities, are evaluated by the Company to determine if the entity has the power to direct business activities and, therefore, would be considered a controlling interest that the Company would have to consolidate. Based on those evaluations, NJR has determined that it does not have any investments in variable interest entities as of September 30, 2022, 2021 and 2020. Investments in entities over which the Company does not have a controlling financial interest are accounted for either under the equity method or cost method of accounting. 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 periodically as required. 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. 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 U.S. The Company’s 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 September 30, 2022. The Company continues to closely monitor developments related to the COVID-19 pandemic and has, when appropriate, taken steps to ensure business continuity in the safe operation of its business. These steps include working from home for office-based employees utilizing a hybrid schedule, limiting direct contact with customers and suspending late payment fees for utility customers. While the Company and many businesses generally have returned to normal operating practices, this remains an evolving situation. The timing for recovery of businesses and local economies, resurgences or mutations of the virus, and any potential future shutdowns remains unknown. Throughout the COVID-19 pandemic, the Company has continued to provide essential services to our customers. Both the Company and NJNG continue to have sufficient liquidity to meet their current obligations and business operations remain fundamentally unchanged at this time. The Company will continue to monitor developments affecting its employees, customers, and operations and take additional steps to address the COVID-19 pandemic and its impacts, as necessary. 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 September 30, 2022. 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 data 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 natural 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 natural 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. The Clean Energy Act of 2018 established guidelines for the closure of the SREC registration program to new applicants in New Jersey. The SREC program officially closed to new qualified solar projects on April 30, 2020. In December 2019, the BPU established the TREC as the successor to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined. All TRECs generated are required to be purchased monthly by a TREC program administrator as appointed by the BPU. TREC revenue is recognized when TRECs are generated and are transferred monthly based upon metered solar electricity activity. 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. Energy Services also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues. During December 2020, Energy Services entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts, which commenced on November 1, 2021. The AMAs include a series of temporary and permanent releases, and revenue under these agreements is recognized as the performance obligations are satisfied. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed-upon term. For permanent releases of pipeline capacity, which represent a transfer of contractual rights for such capacity, revenue is recognized upon the transfer of the underlying contractual rights. Energy Services recognized $53.0 million of operating revenue on the Consolidated Statements of Operations during fiscal 2022. Amounts received in excess of revenue recognized totaling $33.8 million are included in deferred revenue on the Consolidated Balance Sheets as of September 30, 2022. Storage and Transportation 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. Natural Gas Purchases NJNG’s tariff includes a component for BGSS, which is designed to allow it to recover the cost of natural gas through rates charged to its customers and is typically revised on an annual basis. As part of computing its BGSS rate, NJNG projects its cost of natural gas, net of supplier refunds, the impact of hedging activities and cost savings created by BGSS incentive programs. NJNG subsequently recovers or credits the difference, if any, of actual costs compared with those included in current rates. Any underrecoveries or overrecoveries are either credited to customers or deferred and, subject to BPU approval, reflected in the BGSS rates in subsequent years. Natural gas purchases at Energy Services are composed of natural gas costs to be paid upon completion of a variety of transactions, as well as realized gains and losses from settled derivative instruments and unrealized gains and losses on the change in fair value of derivative instruments that have not yet settled. Changes in the fair value of derivatives that economically hedge the forecasted purchases of natural gas are recognized in natural gas purchases as they occur. Demand Fees For the purpose of securing storage and pipeline capacity in support of their respective businesses, Energy Services and Natural Gas Distribution enter into storage and pipeline capacity contracts, which require the payment of associated demand fees and charges that allow them access to a high priority of service in order to maintain the ability to access storage or pipeline capacity during a fixed time period, which generally ranges from one The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of natural gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30: (Millions) 2022 2021 2020 Energy Services $ 95.4 $ 120.5 $ 121.8 Natural Gas Distribution 170.3 123.2 131.9 Total $ 265.7 $ 243.7 $ 253.7 Energy Services expenses demand charges over the term of the service being provided. Natural Gas Distribution’s costs associated with demand charges are included in its weighted average cost of natural gas. The demand charges are expensed based on NJNG’s BGSS sales and recovered as part of the natural gas commodity component of its BGSS tariff. Operations and Maintenance Expenses Operations and maintenance expenses include operations and maintenance salaries and benefits, materials and supplies, usage of vehicles, tools and equipment, payments to contractors, utility plant maintenance, amortization of software costs for unregulated entities, customer service, professional fees and other outside services, insurance expense, accretion of cost of removal for future retirements of utility assets and other administrative expenses and are expensed as incurred. Stock-Based Compensation Stock-based compensation represents costs related to stock-based awards granted to employees and members of NJR’s Board of Directors. NJR recognizes stock-based compensation based upon the estimated fair value of awards. The recognition period for these costs begins at either the applicable service inception date or grant date and continues throughout the requisite service period. The related compensation cost is recognized as O&M expense on the Consolidated Statements of Operations. See Note 10. Stock-Based Compensation for further information. Income Taxes The Company computes income taxes using the asset and liability method, whereby deferred income taxes are generally determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. See Note 13. Income Taxes. In addition, the Company evaluates its tax positions to determine the appropriate accounting and recognition of future obligations associated with unrecognized tax benefits. To the extent that NJNG invests in property that qualifies for ITCs, the ITC is deferred and amortized to income over the life of the equipment in accordance with regulatory treatment. ITCs at the unregulated subsidiaries of NJR are recorded on the balance sheet as a reduction to property, plant and equipment when the property is placed in service, and recognized in earnings as a reduction of depreciation expense over the useful lives of the related assets. Projects placed in service through December 31, 2019, qualified for a 30 percent federal ITC. The ITC declined to 26 percent for property under construction before December 31, 2020. The Consolidated Appropriations Act of 2021 extended the 26 percent ITC for property under construction during 2021 and 2022. On August 16, 2022, the President of the U.S. signed the Inflation Reduction Act, which raised the ITC from 26 percent to 30 percent for property under construction through the end of 2032, dropping to 26 percent for property under construction before the end of 2033 and to 22 percent for property under construction before the end of 2034. The ITC expires starting in 2035 unless it is renewed. Investments in Equity Investees The Company accounts for its investments in Steckman Ridge and PennEast using the equity method of accounting where it is not the primary beneficiary, as defined under ASC 810, Consolidation ; its respective ownership interests are 50 percent or less and/or it has significant influence over operating and management decisions. The Company’s share of earnings is recognized as equity in earnings of affiliates on the Consolidated Statements of Operations. Equity method investments are reviewed for impairment when changes in facts and circumstances indicate that the current fair value may be less than the asset’s carrying amount. If the Company determines the decline in the value of its equity method investment is other than temporary, an impairment charge is recorded in an amount equal to the excess of the carrying value of the asset over its fair value. See Note 7. Investments in Equity Investees for more information regarding impairments. Property Plant and Equipment Property, plant and equipment is stated at original cost. Costs include direct labor, materials and third-party construction contractor costs, capitalized interest and certain indirect costs related to equipment and employees engaged in construction. Utility plant and nonutility plant for Adelphia Gateway also includes AFUDC. Upon retirement, the cost of depreciable property, plus removal costs less salvage, is charged to accumulated depreciation with no gain or loss recorded. Depreciation is computed on a straight-line basis over the useful life of the assets for the Company’s nonutility entities, and using rates based on the estimated average lives of the various classes of depreciable property for NJNG. The composite rate of depreciation used for NJNG was 2.66 percent of average depreciable property in fiscal 2022, 2.42 percent in fiscal 2021 and 2.65 percent in fiscal 2020. The Company recorded $129.2 million, $111.4 million and $107.4 million in depreciation expense during fiscal 2022, 2021 and 2020, respectively. Property, plant and equipment was comprised of the following as of September 30: (Thousands) Estimated Property Classifications Useful Lives 2022 2021 Distribution facilities 10 to 54 years $ 2,797,936 $ 2,558,651 Transmission facilities 28 to 42 years 649,241 643,942 Storage facilities 35 to 86 years 85,449 79,892 Solar property 20 to 35 years 710,224 675,376 Storage and transportation property 5 to 50 years 850,186 433,678 All other property 5 to 40 years 60,914 57,968 Construction work in progress 361,766 547,542 Total property, plant and equipment 5,515,716 4,997,049 Accumulated depreciation and amortization (865,790) (783,536) Property, plant and equipment, net $ 4,649,926 $ 4,213,513 Within storage and transportation property, base gas is required to maintain the necessary pressure and to allow for efficient operation of the Leaf River storage facility. The base gas is determined to be recoverable and is considered part of the facility and thus presented as a component in property, plant and equipment. This natural gas is not depreciated, as it is expected to be recovered and sold. As of September 30, 2022 and 2021, the base gas had a cost basis of $15.1 million and $7.9 million, respectively. Capitalized and Deferred Interest NJNG’s base rates include the ability to recover AFUDC on its construction work in progress. For all NJNG construction projects, an incremental cost of equity is recoverable during periods when NJNG’s short-term debt balances are lower than its construction work in progress. For more information on AFUDC treatment with respect to certain accelerated infrastructure projects, see Note 4. Regulation - Infrastructure Programs. Capitalized amounts associated with the debt and equity components of NJNG’s AFUDC are recorded in utility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component are recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations. Adelphia Gateway’s base rates include the ability to recover AFUDC on its construction work in progress. Beginning in the fourth quarter of fiscal 2020, capitalized amounts associated with Adelphia Gateway’s AFUDC are recorded in nonutility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component are recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations. Capitalized and deferred interest include the following for the fiscal years ended September 30: ($ in thousands) 2022 2021 2020 AFUDC: NJNG Adelphia Gateway NJNG Adelphia Gateway NJNG Adelphia Gateway Debt $ 1,648 $ 4,019 $ 5,648 $ 2,101 $ 5,134 $ 1,394 Equity 4,169 7,074 16,605 3,698 14,599 2,454 Total $ 5,817 $ 11,093 $ 22,253 $ 5,799 $ 19,733 $ 3,848 Weighted average interest rate 4.91 % 8.28 % 5.97 % 8.28 % 6.79 % 8.28 % Pursuant to a BPU order, NJNG is permitted to recover carrying costs on uncollected balances related to SBC program costs, which include NJCEP, RAC and USF expenditures. The SBC interest rate changes each September based on the August 31 seven-year constant maturity treasury rate plus 60 basis points. The rate was 3.85 percent, 1.68 percent and 1.97 percent for the fiscal years ended September 30, 2022, 2021 and 2020, respectively. Accordingly, other income included $857,000, $346,000 and $511,000 in the fiscal years ended September 30, 2022, 2021 and 2020, respectively. Clean Energy Ventures capitalizes interest on the allocation of the costs of debt borrowed for the financing of solar investments. Capitalized amounts are included in nonutility plant and equipment on the Consolidated Balance Sheets. Corresponding amounts are recognized in interest expense on the Consolidated Statements of Operations. 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, which are recorded in other noncurrent assets on the Consolidated Balance Sheets. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the total amounts in the Consolidated Statements of Cash Flows, as of September 30: (Thousands) 2022 2021 2020 Balance Sheet Cash and cash equivalents $ 1,107 $ 4,749 $ 117,012 Restricted cash in other noncurrent assets $ 345 $ 1,294 $ 2,411 Statements of Cash Flow Cash, cash equivalents and restricted cash $ 1,452 $ 6,043 $ 119,423 Allowance for Doubtful Accounts The Company segregates financial assets, primarily trade receivables and unbilled revenues due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations and macroeconomic factors, such as unemployment rates among others, including the estimated impact of the ongoing pandemic on the outstanding balances. During fiscal 2022, the Company deferred a portion of costs incurred related to bad debt for NJNG associated with customer accounts receivable as a regulatory asset resulting from the impacts of the ongoing COVID-19 pandemic. See Note 4. Regulation for additional information. Loans Receivable NJNG currently provides loans, with terms ranging from 2 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 Consolidated Balance Sheets. The Company has $14.5 million and $14.2 million recorded in other current assets and $34.7 million and $32.3 million in other noncurrent assets as of September 30, 2022 and 2021, respectively, on the 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 September 30, 2022 and 2021, the Company has not recorded any impairments for SAVEGREEN loans. Regulatory Assets & Liabilities Under cost-based regulation, regulated utility enterprises generally are permitted to recover their operating expenses and earn a reasonable rate of return on their utility investment. Natural Gas Distribution maintains its accounts in accordance with the FERC Uniform System of Accounts as prescribed by the BPU and in accordance with ASC 980, Regulated Operations . As a result of the impact of the ratemaking process and regulatory actions of the BPU, NJNG is required to recognize the economic effects of rate regulation. Accordingly, NJNG capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 4. Regulation for a more detailed description of NJNG’s regulatory assets and liabilities. Adelphia Gateway capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 4. Regulation for a more detailed description of Adelphia Gateway’s regulatory assets and liabilities. Natural Gas in Storage Natural gas in storage is reflected at average cost on the Consolidated Balance Sheets and represents natural gas and LNG that will be utilized in the ordinary course of business. The following table summarizes natural gas in storage, at average cost by company, as of September 30: 2022 2021 ($ in thousands) Natural Gas in Storage Bcf Natural Gas in Storage Bcf Natural Gas Distribution $ 191,175 29.0 $ 115,824 27.6 Energy Services 82,469 10.8 77,782 18.8 Total $ 273,644 39.8 $ 193,606 46.4 Derivative Instruments The Company accounts for its financial instruments, such as futures, options, foreign exchange contracts and interest rate contracts, as well as its physical commodity contracts related to the purchase and sale of natural gas at Energy Services, as derivatives, and therefore recognizes them at fair value on the Consolidated Balance Sheets. The Company’s unregulated subsidiaries record changes in the fair value of their financial commodity derivatives in natural gas purchases and changes in the fair value of their physical forward contracts in natural gas purchases or operating revenues, as appropriate, on the Consolidated Statements of Operations. Ineffective portions of the cash flow hedges are recognized immediately in earnings. ASC 815, Derivatives and Hedging also provides for a NPNS scope exception for qualifying physical commodity contracts for which physical delivery is probable and the quantities delivered are expected to be used or sold over a reasonable period of time in the normal course of business. Effective January 1, 2016, the Company prospectively applies this normal scope exception on a case-by-case basis to physical commodity contracts at NJNG and PPAs at Clean Energy Ventures. When applied, it does not account for these contracts until the contract settles and the related underlying natural gas or power is delivered. Gains and/or losses on NJNG’s derivatives used to economically hedge its regulated natural gas supply obligations, as well as its exposure to interest rate variability, are recoverable through its BGSS, a component of its tariff. Accordingly, the offset to the change in fair value of these derivatives is recorded as a regulatory asset or liability on the Consolidated Balance Sheets. See Note 5. Derivative Instruments for additional details regarding natural gas trading and hedging activities. Fair values of exchange-traded instruments, including futures and swaps, are based on unadjusted, quoted prices in active markets. The Company’s non-exchange-traded financial instruments, foreign currency derivatives, over-the-counter physical commodity contracts at Energy Services and interest rate contracts are valued using observable, quoted prices for similar or identical assets when available. In establishing the fair value of contracts for which a quoted basis price is not available at the measurement date, management utilizes available market data and pricing models to estimate fair values. Fair values are subject to change in the near term and reflect management’s best estimate based on a variety of factors. Estimating fair values of instruments that do not have quoted market prices requires management’s judgment in determining amounts that could reasonably be expected to be received from, or paid to, a third party in settlement of the instruments. These amounts could be materially different from amounts that might be realized in an actual sale transaction. During fiscal 2020, the Company entered into treasury lock transactions to fix the benchmark treasury rate associated with debt issuances for NJNG and NJR that occurred during the fiscal year. Settlement of the NJNG treasury locks resulted in a loss, which was recorded as a component of regulatory assets on the Consolidated Balance Sheets and will be amortized in earnings over the term of the debt as a component of interest expense on the Consolidated Statements of Operations. NJR designated its treasury lock contracts as cash flow hedges; therefore, changes in fair value of the effective portion of the hedges were recorded in OCI. Settlement of the treasury locks resulted in a loss, which was recorded within OCI and is amortized into earnings over the term of the associated debt as a component of interest expense on the Consolidated Statements of Operations. As of September 30, 2022 and 2021, amounts recognized in interest expense related to the amortization of the loss on treasury lock transactions totaled $219,000 and $223,000, respectively, for NJNG, and $1.1 million and $1.0 million, respectively, for NJR. 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 following table presents the software costs included in the Consolidated Financial Statements, as of September 30: (Thousands) 2022 2021 Balance Sheets Utility plant, at cost $ 40,437 $ 16,543 Construction work in progress $ 14,381 $ 7,801 Nonutility plant and equipment, at cost $ 344 $ 338 Construction work in progress $ — $ 8 Accumulated depreciation and amortization, utility plant $ (3,361) $ (1,333) Accumulated depreciation and amortization, nonutility plant and equipment $ (25) $ (29) Software costs $ 6,120 $ 5,582 Statements of Operations Operation and maintenance (1) $ 11,141 $ 9,141 Depreciation and amortization $ 2,024 $ 1,078 (1) During fiscal 2022 and 2021, $452,000 and 447,000, respectively, was amortized from software costs into O&M. Intangible Assets Finite-lived intangible assets are stated at cost less accumulated amortization. The Company amortizes intangible assets based upon the pattern in which the economic benefits are consumed over the life of the asset unless a pattern cannot be reliably determined, in which case the Company uses a straight-line amortization method. As of September 30, 2022, intangible assets consist primarily of acquired wholesale natural gas energy contracts totaling $2.3 million. The wholesale natural gas contracts are being amortized based upon expected cash flows over the respective terms of the agreements. The estimated future amortization expense as of September 30, is as follows: (Thousands) 2023 $ 2,271 2024 $ 77 2025 $ — 2026 $ — 2027 $ — Long-lived Assets The Company reviews the recoverability of long-lived assets and finite-lived intangible asse |
REVENUE
REVENUE | 12 Months Ended |
Sep. 30, 2022 | |
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 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/ Operations 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 natural 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 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. Revenue is recognized as invoiced and the payment is due each month for the previous month’s services. Revenue Recognized Over Time (continued): Segment/ Operations Performance Obligation Description 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. Clean Energy Ventures Transition renewable energy certificates Clean Energy Ventures generates TRECs, which are created for every MWh of electricity produced by a solar generator. The performance obligation of Clean Energy Ventures is to generate electricity and TRECs, which are purchased monthly by a REC Administrator. Revenue is recognized upon generation. 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 in line with the terms of the contract and based on the services provided. Payment is due upon receipt of the invoice. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term. Storage and Transportation Natural gas services The performance obligation of Storage and Transportation is to provide the customer with storage and transportation services. Storage and Transportation generates revenues from firm storage contracts and transportation contracts, injection and withdrawal at the storage facility and the delivery of natural gas to customers. Revenue is recognized over time as customers receive the benefits of its 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. NJR Retail enters into warranty contracts with homeowners for various appliances. 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: Energy Services Natural gas services For a permanent release of pipeline capacity, the performance obligation of Energy Services is the release of the pipeline capacity associated with certain natural gas transportation contracts and the transfer of the underlying contractual rights to the counterparty. Revenue is recognized upon the transfer of the underlying contractual rights. Storage and Transportation Natural gas services The performance obligation of Storage and Transportation is to provide the customer with storage and transportation services. Storage and Transportation generates revenues from usage fees and hub services for the use of storage space, injection and withdrawal from the storage facility. Hub services include park and loan transactions and wheeling. Usage fees and hub services revenues are recognized as services are performed. Home Services and Other Installations Home Services installs appliances, including but not limited to furnaces, air conditioning units, boilers and generators, for customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. The transaction price for each installation differs accordingly. Revenue is recognized at a point in time upon completion of the installation, which is when the customer is billed. Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during fiscal 2022, 2021 and 2020 are as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total 2022 Natural gas utility sales (1) $ 951,626 — — — — $ 951,626 Natural gas services — — 83,801 67,735 — 151,536 Service contracts — — — — 33,932 33,932 Installations and maintenance — — — — 22,250 22,250 Renewable energy certificates — 5,487 — — — 5,487 Electricity sales — 38,317 — — — 38,317 Eliminations (1) (1,350) — — (2,449) (364) (4,163) Revenues from contracts with customers 950,276 43,804 83,801 65,286 55,818 1,198,985 Alternative revenue programs (3) 11,259 — — — — 11,259 Derivative instruments 165,882 84,476 (4) 1,445,471 — — 1,695,829 Eliminations (2) — — (94) — — (94) Revenues out of scope 177,141 84,476 1,445,377 — — 1,706,994 Total operating revenues $ 1,127,417 128,280 1,529,178 65,286 55,818 $ 2,905,979 2021 Natural gas utility sales (1) $ 694,635 — — — — $ 694,635 Natural gas services — — 26,933 51,020 — 77,953 Service contracts — — — — 33,250 33,250 Installations and maintenance — — — — 18,979 18,979 Renewable energy certificates — 4,571 — — — 4,571 Electricity sales — 25,270 — — — 25,270 Eliminations (2) — — — (1,768) (785) (2,553) Revenues from contracts with customers 694,635 29,841 26,933 49,252 51,444 852,105 Alternative revenue programs (3) (7,282) — — — — (7,282) Derivative instruments 44,443 65,434 (4) 1,201,487 — — 1,311,364 Eliminations (2) — — 426 — — 426 Revenues out of scope 37,161 65,434 1,201,913 — — 1,304,508 Total operating revenues $ 731,796 95,275 1,228,846 49,252 51,444 $ 2,156,613 2020 Natural gas utility sales $ 695,858 — — — — 695,858 Natural gas services — — 24,511 44,728 — 69,239 Service contracts — — — — 32,455 32,455 Installations and maintenance — — — — 18,562 18,562 Renewable energy certificates — 1,384 — — — 1,384 Electricity sales — 20,099 — — — 20,099 Eliminations (2) — — — (2,713) (1,207) (3,920) Revenues from contracts with customers 695,858 21,483 24,511 42,015 49,810 833,677 Alternative revenue programs (3) 15,750 — — — — 15,750 Derivative instruments 18,315 81,134 (4) 1,005,908 — — 1,105,357 Eliminations (2) — — (1,116) — — (1,116) Revenues out of scope 34,065 81,134 1,004,792 — — 1,119,991 Total operating revenues $ 729,923 102,617 1,029,303 42,015 49,810 1,953,668 (1) Includes building rent related to the Wall headquarters, which is eliminated in consolidation. (2) Consists of transactions between subsidiaries that are eliminated in consolidation. (3) Includes CIP revenue. (4) Includes SREC revenue. Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the fiscal years ended September 30, are as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total 2022 Residential $ 586,678 12,579 — — 55,629 $ 654,886 Commercial and industrial 265,970 31,225 83,801 65,286 189 446,471 Firm transportation 92,531 — — — — 92,531 Interruptible and off-tariff 5,097 — — — — 5,097 Revenues out of scope 177,141 84,476 1,445,377 — — 1,706,994 Total operating revenues $ 1,127,417 128,280 1,529,178 65,286 55,818 $ 2,905,979 2021 Residential $ 487,018 11,319 — — 50,689 $ 549,026 Commercial and industrial 124,519 18,522 26,933 49,252 755 219,981 Firm transportation 79,256 — — — — 79,256 Interruptible and off-tariff 3,842 — — — — 3,842 Revenues out of scope 37,161 65,434 1,201,913 — — 1,304,508 Total operating revenues $ 731,796 95,275 1,228,846 49,252 51,444 $ 2,156,613 2020 Residential $ 490,233 10,233 — — 48,867 $ 549,333 Commercial and industrial 129,946 11,250 24,511 42,015 943 208,665 Firm transportation 69,357 — — — — 69,357 Interruptible and off-tariff 6,322 — — — — 6,322 Revenues out of scope 34,065 81,134 1,004,792 — — 1,119,991 Total operating revenues $ 729,923 102,617 1,029,303 42,015 49,810 $ 1,953,668 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 Consolidated Balance Sheets are as follows: Customer Accounts Receivable Customers' Credit (Thousands) Billed Unbilled Balances and Deposits Balance as of September 30, 2020 $ 134,173 $ 9,226 $ 25,934 Increase 78,665 1,125 6,652 Balance as of September 30, 2021 212,838 10,351 32,586 Increase 9,459 3,418 660 Balance as of September 30, 2022 $ 222,297 $ 13,769 $ 33,246 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 Consolidated Balance Sheets as of September 30: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total 2022 Customer accounts receivable Billed $ 78,508 5,566 129,199 7,012 2,012 $ 222,297 Unbilled 10,814 2,955 — — — 13,769 Customers’ credit balances and deposits (33,246) — — — — (33,246) Total $ 56,076 8,521 129,199 7,012 2,012 $ 202,820 2021 Customer accounts receivable Billed $ 54,514 5,534 147,087 3,956 1,747 $ 212,838 Unbilled 8,427 1,924 — — — 10,351 Customers’ credit balances and deposits (32,586) — — — — (32,586) Total $ 30,355 7,458 147,087 3,956 1,747 $ 190,603 |
REGULATION
REGULATION | 12 Months Ended |
Sep. 30, 2022 | |
Regulated Operations [Abstract] | |
REGULATION | 4. REGULATION The EDECA is the legal framework for New Jersey’s public utility and wholesale energy landscape. NJNG is required, pursuant to a written order by the BPU under EDECA, to open its residential markets to competition from third-party natural gas suppliers. Customers can choose the supplier of their natural gas commodity in NJNG’s service territory. As required by EDECA, NJNG’s rates are segregated into two primary components: the commodity portion, which represents the wholesale cost of natural gas, including the cost for interstate pipeline capacity to transport the natural gas to NJNG’s service territory; and the delivery portion, which represents the transportation of the commodity portion through NJNG’s natural gas distribution system to the end-use customer. NJNG does not earn Utility Gross Margin on the commodity portion of its natural gas sales. NJNG earns Utility Gross Margin through the delivery of natural gas to its customers, regardless of whether it or a third-party supplier provides the wholesale natural gas commodity. Under EDECA, the BPU is required to audit the state’s energy utilities every two years. The primary purpose of the audit is to ensure that utilities and their affiliates offering unregulated retail services do not have an unfair competitive advantage over nonaffiliated providers of similar retail services. A combined competitive services and management audit of NJNG commenced in August 1, 2013. A draft management audit report was accepted by the BPU on July 23, 2014, for public comment. To date, NJNG has implemented all audit recommendations with the approval of BPU staff and is waiting for final BPU approval. 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 filings to the BPU for review of its BGSS, CIP and other programs and related rates. Annual rate changes are typically requested to be effective at the beginning of the following fiscal year. The current base rates include a weighted average cost of capital of 6.84 percent and a return on common equity of 9.6 percent. 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 Consolidated Balance Sheets for NJNG are comprised of the following, as of September 30: (Thousands) 2022 2021 Regulatory assets-current New Jersey Clean Energy Program $ 15,697 $ 16,308 Conservation Incentive Program 23,099 11,839 Other current regulatory assets 1,290 1,554 Total current regulatory assets $ 40,086 $ 29,701 Regulatory assets-noncurrent Environmental remediation costs: Expended, net of recoveries $ 66,149 $ 58,483 Liability for future expenditures 127,070 135,012 Deferred income taxes 40,520 39,694 SAVEGREEN 52,690 32,941 Postemployment and other benefit costs 56,021 117,194 Deferred storm damage costs 2,172 4,343 Cost of removal 104,850 99,238 Other noncurrent regulatory assets 45,828 32,695 Total noncurrent regulatory assets $ 495,300 $ 519,600 Regulatory liability-current Overrecovered natural gas costs $ 17,807 $ 5,510 Derivatives at fair value, net 7,972 22,497 Total current regulatory liabilities $ 25,779 $ 28,007 Regulatory liabilities-noncurrent Tax Act impact (1) $ 185,367 $ 190,386 Derivatives at fair value, net 116 1,166 Other noncurrent regulatory liabilities 151 336 Total noncurrent regulatory liabilities $ 185,634 $ 191,888 (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 assets and liabilities included on the Consolidated Balance Sheets for Adelphia Gateway are comprised of the following, as of September 30: (Thousands) 2022 2021 Total current regulatory assets $ — $ 417 Total noncurrent regulatory assets $ 5,366 $ 2,499 Total current regulatory liabilities 5,311 — Total noncurrent regulatory liabilities $ — $ 1,163 The assets are comprised primarily of the tax benefit associated with the equity component of AFUDC and the liability consists primarily of scheduling penalties. Recovery of regulatory assets is subject to FERC approval. New Jersey Clean Energy Program The NJCEP is a statewide program that encourages energy efficiency and renewable energy. Funding amounts are determined by the BPU’s Office of Clean Energy and all New Jersey utilities are required to share in the annual funding obligation. The current NJCEP program is for the State of New Jersey’s fiscal year ending June 2023. NJNG recovers the costs associated with its portion of the NJCEP obligation through its NJCEP rider, with interest. Conservation Incentive Program The CIP permits NJNG to recover Utility Gross Margin variations related to customer usage resulting from customer conservation efforts and mitigates the impact of weather on its margin. Such Utility Gross Margin variations are recovered in the year following the end of the CIP usage year, without interest, and are subject to additional conditions, including an earnings test, a revenue test and an evaluation of BGSS-related savings. This program has no expiration date. Environmental Remediation Costs NJNG is responsible for the cleanup of certain former gas manufacturing facilities. Actual expenditures are recovered from customers, with interest, over seven-year rolling periods, through a RAC rate rider. Recovery for NJNG’s estimated future liability will be requested and/or recovered when actual expenditures are incurred. See Note 15. Commitments and Contingent Liabilities . Derivatives Derivatives are utilized by NJNG to manage the price risk associated with its natural gas purchasing activities and to participate in certain BGSS incentive programs. The gains and losses associated with NJNG’s derivatives are recoverable through its BGSS, as noted above, without interest. See Note 5. Derivative Instruments . Deferred Income Taxes Upon adoption of a 1993 provision of ASC 740, Income Taxes , NJNG recognized a transition adjustment and corresponding regulatory asset representing the difference between NJNG’s existing deferred tax amounts compared with the deferred tax amounts calculated in accordance with the change in method prescribed by ASC 740. NJNG recovers the regulatory asset associated with these tax impacts through future base rates, without interest. SAVEGREEN NJNG administers certain programs that supplement the state’s NJCEP and that allow NJNG to promote clean energy to its residential and commercial customers, as described further below. NJNG will recover related expenditures and a weighted average cost of capital on the unamortized balance through a tariff rider, with interest, as approved by the BPU, over a two Postemployment and Other Benefit Costs Postemployment and Other Benefit Costs represents NJNG’s underfunded postemployment benefit obligations, as well as a fiscal 2010 tax charge resulting from a change in the deductibility of federal subsidies associated with Medicare Part D, both of which are deferred as regulatory assets and are recoverable, without interest, in base rates. The BPU approved the recovery of the tax charge through NJNG’s base rates effective October 2016 over a seven-year amortization period. See Note 11. Employee Benefit Plans . Deferred Storm Damage Costs Portions of NJNG’s distribution system incurred significant damage as a result of Post-Tropical Cyclone Sandy in October 2012. NJNG deferred the uninsured incremental O&M costs associated with its restoration efforts, which were approved for recovery by the BPU through NJNG’s base rates, without interest, effective October 2016 over a seven-year amortization period. Cost of Removal NJNG accrues and collects for cost of removal in base rates on its utility property, without interest. These costs are recorded in accumulated depreciation for regulatory reporting purposes, and actual costs of removal, without interest, will be recovered in subsequent rates, pursuant to the BPU order. Consistent with GAAP, amounts recorded within accumulated depreciation for regulatory accounting purposes are reclassified out of accumulated depreciation to either a regulatory asset or a regulatory liability depending on whether actual cost of removal is still subject to collection or amounts overcollected will be refunded back to customers. Other Regulatory Assets Other regulatory assets consist primarily of deferred costs associated with certain components of NJNG’s SBC, as discussed further in the regulatory proceedings section, and NJNG’s compliance with federal and state-mandated PIM provisions. NJNG’s related costs to maintain the operational integrity of its distribution and transmission main are recoverable, without interest, subject to BPU review and approval. As of September 30, 2022, NJNG recorded $635,000 of PIM in other regulatory assets, which is being recovered through base rates over a seven-year amortization period effective October 2016. Overrecovered Natural Gas Costs NJNG recovers its cost of natural gas through the BGSS rate component of its customers’ bills. NJNG’s cost of natural gas includes the purchased cost of the natural gas commodity, fees paid to pipelines and storage facilities, adjustments as a result of BGSS incentive programs and hedging transactions. Overrecovered natural gas costs represent a regulatory liability that generally occurs when NJNG’s BGSS rates are higher than actual costs and requests approval to be returned to customers including interest, when applicable, in accordance with NJNG’s approved BGSS tariff. Conversely, underrecovered natural gas costs generally occur during periods when NJNG’s BGSS rates are lower than actual costs, in which case NJNG records a regulatory asset and requests amounts to be recovered from customers in the future. The following is a description of certain regulatory proceedings during fiscal 2021 and 2022: On November 17, 2021, the BPU issued an order adopting a stipulation of settlement approving a $79.0 million increase to base rates, effective December 1, 2021. The increase includes an overall rate of return on rate base of 6.84 percent, return on common equity of 9.6 percent, a common equity ratio of 54.0 percent and a depreciation rate of 2.78 percent. BGSS and CIP BGSS rates are normally revised on an annual basis. In addition, to manage the fluctuations in wholesale natural gas costs, NJNG has the ability to make two interim filings during each fiscal year to increase residential and small commercial customer BGSS rates on a self-implementing and provisional basis. NJNG is also permitted to refund or credit back a portion of the commodity costs to customers at any time given five days’ notice when the natural gas commodity costs decrease in comparison to amounts projected or to amounts previously collected from customers. Concurrent with the annual BGSS filing, NJNG files for an annual review of its CIP. NJNG’s annual BGSS and CIP filings are summarized as follows: • In November 2020, NJNG notified the BPU of its intent to provide BGSS bill credits to residential and small commercial sales customers effective December 1, 2020 to December 31, 2020. In December 2020, NJNG notified the BPU of the extension of the BGSS bill credits through January 2021. The actual bill credits given to customers totaled $20.6 million, $19.3 million net of tax. • 2021 BGSS/CIP filing — In May 2021, NJNG submitted to the BPU the annual petition to modify its BGSS, balancing charge and CIP rates. On November 17, 2021, the BPU approved a $2.9 million increase to the annual revenues credited to BGSS and a $13.0 million annual increase related to its balancing charge, as well as changes to CIP rates, which will result in a $6.3 million decrease to the annual recovery, effective December 1, 2021. • On November 17, 2021, the BPU approved, on a preliminary basis, NJNG’s annual petition to modify its BGSS, balancing charge and CIP rates for residential and small commercial customers. The rate changes resulted in a $2.9 million increase to the annual revenues credited to BGSS and a $13.0 million annual increase related to its balancing charge, as well as changes to CIP rates, which resulted in a $6.3 million annual recovery decrease, effective December 1, 2021, and was approved on a final basis on May 4, 2022. • On November 19, 2021, NJNG submitted notification of its intent to self-implement an increase to its BGSS rate which results in an approximate $24.2 million increase to annual revenues credited to BGSS, effective December 1, 2021. • 2022 BGSS/CIP filing — On June 1, 2022, NJNG submitted its annual petition to modify its BGSS, balancing charge and CIP rates for residential and small commercial customers. On September 7, 2022, the BPU approved, on a preliminary basis, an $81.9 million increase to the annual revenues credited to BGSS and a $9.0 million annual increase related to its balancing charge, as well as a $10.2 million increase to CIP rates, effective October 1, 2022. BGSS Incentive Programs NJNG is eligible to receive financial incentives for reducing BGSS costs through a series of Utility Gross Margin-sharing programs that include off-system sales, capacity release and storage incentive programs. The Company is permitted to annually propose a process to evaluate and discuss alternative incentive programs, should performance of the existing incentives or market conditions warrant re-evaluation. Energy Efficiency Programs SAVEGREEN conducts home energy audits and provides various grants, incentives and financing alternatives, which are designed to encourage the installation of high efficiency heating and cooling equipment and other upgrades to promote energy efficiency to its residential and commercial customers while stimulating state and local economies through the creation of jobs. Depending on the specific initiative or approval, NJNG recovers costs associated with the programs over a three SAVEGREEN investments and costs are filed with the BPU on an annual basis. NJNG’s annual EE filings are summarized as follows: • 2020 EE filing — In May 2020, NJNG filed a petition with the BPU to minimally decrease its EE recovery rate. Throughout the course of the proceeding, the Company updated the filing for additional actual information. Based on the updated information, the BPU approved the request to maintain its existing rate, which results in an annual recovery of approximately $11.4 million, effective November 1, 2020. • 2021 EE filing — In June 2021, NJNG submitted its annual cost recovery filing for the SAVEGREEN programs established from 2010 through 2018. On January 26, 2022, the BPU approved the stipulation to resolve the current EE annual cost recovery filing, which increases annual recoveries by $2.2 million, effective February 1, 2022. • 2022 EE filing — On June 1, 2022, NJNG submitted its annual cost recovery filing for the SAVEGREEN programs established from 2010 through the present. On September 28, 2022, the BPU approved the filing, which decreases annual recoveries by $3.5 million, effective October 1, 2022. Societal Benefits Charge The SBC is comprised of three primary riders that allow NJNG to recover costs associated with USF, which is a permanent statewide program for all natural gas and electric utilities for the benefit of income-eligible customers, MGP remediation and the NJCEP. NJNG has submitted the following filings to the BPU, which include a report of program expenditures incurred each program year: • 2020 SBC filing — In April 2021, the BPU approved a stipulation resolving NJNG’s annual SBC application requesting to recover remediation expenses, including an increase in the RAC of approximately $1.3 million annually and an increase to the NJCEP factor, which resulted in an annual increase of approximately $6.0 million, effective May 1, 2021. • 2021 USF filing — In June 2021, NJNG filed its annual USF compliance filing proposing an annual increase to the statewide USF rate of approximately $4.9 million. In September 2021, the BPU approved the increase, effective October 1, 2021. • 2021 SBC filing — On March 23, 2022, the BPU approved NJNG's annual filing to increase the RAC by $600,000 and decrease the NJCEP by $2.9 million, effective April 1, 2022. • 2022 USF filing — On June 27, 2022, NJNG filed its annual USF compliance filing proposing a decrease to the statewide USF rate. On August 25, 2022, an additional update was submitted on behalf of all NJ utilities with actual information through July 31, 2022. On September 28, 2022, the BPU approved a decrease based on the August update, which resulted in an annual decrease of approximately $1.6 million, effective October 1, 2022. • 2022 SBC filing — On September 13, 2022, NJNG submitted its annual SBC filing to the BPU requesting approval of RAC expenditures through June 30, 2022, as well as an increase to the RAC annual recoveries of $3.8 million and an increase to the NJCEP annual recoveries of $2.2 million, with a proposed effective date of April 1, 2023. Infrastructure Programs NJNG has significant annual capital expenditures associated with the management of its natural gas distribution and transmission system, including new utility plant for customer growth and its associated PIM and infrastructure programs. NJNG continues to implement BPU-approved infrastructure projects that are designed to enhance the reliability of NJNG’s natural gas distribution system, including SAFE and NJ RISE. SAFE/NJ RISE The SAFE program replaced portions of NJNG’s natural gas distribution unprotected steel, cast iron infrastructure and associated services to improve the safety and reliability of the natural gas distribution system. SAFE I was approved to invest up to $130.0 million, exclusive of AFUDC, over a four-year period. SAFE II was approved to invest up to $200.0 million, excluding AFUDC, over a five-year period. NJNG recovered approximately $157.5 million through annual rate filings, with the remainder recovered through subsequent rate cases. As a condition of approval of the program, NJNG was required to file a base rate case no later than November 2019 and satisfied this requirement with its March 29, 2019 base rate case filing. NJ RISE consisted of six capital investment projects estimated to cost $102.5 million over a five-year period, excluding AFUDC, for natural gas distribution storm-hardening and mitigation projects, along with incremental depreciation expense. NJ RISE includes a weighted average cost of capital that ranges from 6.74 percent to 6.9 percent and a return on equity of 9.75 percent. Requests for recovery of future NJ RISE capital costs occurred in conjunction with SAFE II. In March 2021, NJNG filed a petition with the BPU requesting the final base rate increase for the recovery associated with NJ RISE and SAFE II capital investments cost of approximately $3.4 million made through June 30, 2021. In June 2021, this filing was consolidated with the 2021 base rate case. In November 2021, the BPU issued an order for the consolidated matter which included approval for the final increase for the NJ RISE and SAFE II programs of $269,000. With this approval, the BPU filings with respect to NJ RISE and SAFE II are complete. Infrastructure Investment Program In February 2019, NJNG filed a petition with the BPU seeking authority to implement a five-year IIP. The IIP consists of two components, transmission and distribution investments and information technology replacement and enhancements. The total investment for the IIP is approximately $507.0 million. Upon approval from the BPU, investments will be recovered through annual filings to adjust base rates. In October 2020, the BPU approved the Company’s transmission and distribution component of the IIP for $150.0 million over five years, effective November 1, 2020. The recovery of information technology replacement and enhancements that was included in the original IIP filing will be included as part of base rate filings as projects are placed in service. On March 31, 2022, NJNG filed its first rate recovery request for its BPU-approved IIP with capital expenditures estimated through June 30, 2022, including AFUDC. On July 13, 2022, NJNG filed its update with actual capital expenditures of $28.9 million through June 30, 2022. On September 7, 2022, the BPU approved the rate increase resulting in a $3.2 million revenue increase, effective October 1, 2022. Other Filings In July 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. Utilities were to file a petition by the later of December 31, 2021, or within 60 days of the close of the regulatory asset period, and rate recovery can be addressed in the filing or the utility may request consideration be deferred to a future rate case. Any potential rate recovery, and the appropriate period of recovery, would be addressed through that filing, or may have requested a deferral of rate recovery for a future base rate case. In September 2021, the BPU extended the filing date to December 31, 2022, or within 60 days of the close of the regulatory asset period. On August 17, 2022, the BPU approved NJNG’s petition seeking authority to issue up to $500 million in Medium Term Notes over a 3-year period. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Sep. 30, 2022 | |
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 natural 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, unless the Company elects NPNS, which is done on a contract-by-contract election. Accordingly, all of the financial and certain of the Company’s physical derivative instruments are recorded at fair value on the Consolidated Balance Sheets. For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the Company’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 natural gas purchases or operating revenues, as appropriate for Energy Services, on the 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 natural 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 natural 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 natural 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 natural gas is expected to occur and is considered a derivative transaction that is recorded at fair value on the Consolidated Balance Sheets, with changes in value recognized in current-period earnings. 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 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 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 a portfolio basis. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect to treat certain contracts as 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 natural gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Consolidated Balance Sheets. Clean Energy Ventures The Company elects NPNS accounting treatment on PPA contracts executed by Clean Energy Ventures 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 to treat certain contracts as normal. Fair Value of Derivatives The following table presents the fair value of the Company’s derivative assets and liabilities recognized on the Consolidated Balance Sheets as of September 30: Derivatives at Fair Value 2022 2021 (Thousands) Balance Sheet Location Assets Liabilities Assets Liabilities Derivatives not designated as hedging instruments: Natural Gas Distribution: Physical commodity contracts Derivatives - current $ 252 $ 11 $ 36 $ 16 Financial commodity contracts Derivatives - current 85 6,281 2,046 13 Energy Services: Physical commodity contracts Derivatives - current 9,857 17,051 2,818 24,592 Derivatives - noncurrent 376 13,561 333 13,237 Financial commodity contracts Derivatives - current 14,423 26,488 30,226 62,521 Derivatives - noncurrent 6,009 630 3,068 260 Foreign currency contracts Derivatives - current 18 17 125 3 Derivatives - noncurrent — — 2 — Total fair value of derivatives $ 31,020 $ 64,039 $ 38,654 $ 100,642 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 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 and the net amounts the Company could present on the 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 September 30, 2022: Derivative assets: Energy Services Physical commodity contracts $ 10,233 $ (404) $ (200) $ 9,629 Financial commodity contracts 20,432 (12,198) — 8,234 Foreign currency contracts 18 (17) — 1 Total Energy Services $ 30,683 $ (12,619) $ (200) $ 17,864 Natural Gas Distribution Physical commodity contracts $ 252 $ — $ — $ 252 Financial commodity contracts 85 (85) — — Total Natural Gas Distribution $ 337 $ (85) $ — $ 252 Derivative liabilities: Energy Services Physical commodity contracts $ 30,612 $ (404) $ — $ 30,208 Financial commodity contracts 27,118 (12,198) — 14,920 Foreign currency contracts 17 (17) — Total Energy Services $ 57,747 $ (12,619) $ — $ 45,128 Natural Gas Distribution Physical commodity contracts $ 11 $ — $ — $ 11 Financial commodity contracts 6,281 (85) — 6,196 Total Natural Gas Distribution $ 6,292 $ (85) $ — $ 6,207 As of September 30, 2021: Derivative assets: Energy Services Physical commodity contracts $ 3,151 $ (894) $ (700) $ 1,557 Financial commodity contracts 33,294 (33,294) 20,532 20,532 Foreign currency contracts 127 (3) — 124 Total Energy Services $ 36,572 $ (34,191) $ 19,832 $ 22,213 Natural Gas Distribution Physical commodity contracts $ 36 $ (8) $ — $ 28 Financial commodity contracts 2,046 (13) — 2,033 Total Natural Gas Distribution $ 2,082 $ (21) $ — $ 2,061 Derivative liabilities: Energy Services Physical commodity contracts $ 37,829 $ (894) $ — $ 36,935 Financial commodity contracts 62,781 (33,294) — 29,487 Foreign currency contracts 3 (3) — — Total Energy Services $ 100,613 $ (34,191) $ — $ 66,422 Natural Gas Distribution Physical commodity contracts $ 16 $ (8) $ — $ 8 Financial commodity contracts 13 (13) — — Total Natural Gas Distribution $ 29 $ (21) $ — $ 8 (1) Derivative assets and liabilities are presented on a gross basis on the balance sheets 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 natural 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 natural 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 Consolidated Statements of Operations as of September 30: (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized Derivatives not designated as hedging instruments: 2022 2021 2020 Energy Services: Physical commodity contracts Operating revenues $ (8,569) $ 30,011 $ 1,163 Physical commodity contracts Natural gas purchases 3,580 1,052 (3,366) Financial commodity contracts Natural gas purchases 14,403 (43,997) 58,949 Foreign currency contracts Natural gas purchases (14) 238 (41) Total unrealized and realized gains (losses) $ 9,400 $ (12,696) $ 56,705 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 gains and/or (losses) associated with NJNG’s derivative instruments as of September 30: (Thousands) 2022 2021 2020 Natural Gas Distribution: Physical commodity contracts $ 7,116 $ 2,174 $ 2,077 Financial commodity contracts 32,868 32,725 (3,903) Total unrealized and realized gains (losses) $ 39,984 $ 34,899 $ (1,826) During fiscal 2020, NJR entered into treasury lock transactions to fix the benchmark treasury rate associated with debt issuances that were finalized in 2020. 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 Consolidated Statements of Operations ratable over the term of the associated debt. Pre-tax losses of $1.4 million were reclassified during both fiscal 2022 and 2021. The following table reflects the effect of derivative instruments designated as cash flow hedges in OCI as of September 30: (Thousands) Amount of pre-tax gain (loss) recognized in OCI on derivatives Location of gain (loss) reclassified from OCI into income Amount of pre-tax gain (loss) reclassified from OCI into income Derivatives in cash flow hedging relationships: 2022 2021 2022 2021 Interest rate contracts $ — $ — Interest expense $ (1,371) $ (1,371) NJNG and Energy Services had the following outstanding long (short) derivatives as of September 30: Volume (Bcf) Transaction Type 2022 2021 Natural Gas Distribution Futures 30.5 22.2 Physical Commodity 6.8 7.6 Energy Services Futures (0.7) (13.4) Swaps — (0.3) Physical Commodity 2.7 0.6 Not included in the above table are Energy Services’ net notional amount of foreign currency transactions of approximately $(1,000) and $(123,000) and 1.2 million and 1.4 million SRECs that were open as of September 30, 2022 and 2021, respectively. 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 Natural Gas Distribution and Energy Services. The balances as of September 30, by reporting segment, are as follows: (Thousands) Balance Sheet Location 2022 2021 Natural Gas Distribution Restricted broker margin accounts - current assets $ 26,138 $ 2,790 Energy Services Restricted broker margin accounts - current assets $ 68,123 $ 70,050 Wholesale Credit Risk NJNG, Energy Services, Clean Energy Ventures and Storage and Transportation are exposed to credit risk as a result of their sales/wholesale marketing activities. As a result of the inherent volatility in the prices of natural gas commodities, derivatives and SRECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty fails to perform the obligations under its contract, then the Company could sustain a loss. The Company monitors and manages the credit risk of its wholesale operations through credit policies and procedures that management believes reduce overall credit risk. These policies include a review and evaluation of current and prospective counterparties’ financial statements and/or credit ratings, daily monitoring of counterparties’ credit limits and exposure, daily communication with traders regarding credit status and the use of credit mitigation measures, such as collateral requirements and netting agreements. Examples of collateral include letters of credit and cash received for either prepayment or margin deposit. Collateral may be requested due to the Company’s election not to extend credit or because exposure exceeds defined thresholds. Most of the Company’s wholesale marketing contracts contain standard netting provisions. These contracts include those governed by ISDA and the NAESB. The netting provisions refer to payment netting, whereby receivables and payables with the same counterparty are offset and the resulting net amount is paid to the party to which it is due. Internally-rated exposure applies to counterparties that are not rated by Fitch or Moody’s. In these cases, the counterparty’s or guarantor’s financial statements are reviewed, and similar methodologies and ratios used by Fitch and/or Moody’s are applied to arrive at a substitute rating. Gross credit exposure is defined as the unrealized fair value of physical and financial derivative commodity contracts, plus any outstanding wholesale receivable for the value of natural gas delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received. The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of September 30, 2022. 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 Investment grade $ 182,138 Noninvestment grade 30,105 Internally-rated investment grade 17,113 Internally-rated noninvestment grade 45,591 Total $ 274,947 Conversely, certain of NJNG’s and Energy Services’ derivative instruments are linked to agreements containing provisions that would require cash collateral payments from the Company if certain events occur. These provisions vary based upon the terms in individual counterparty agreements and can result in cash payments if NJNG’s credit rating were to fall below its current level. Specifically, most, but not all, of these additional payments will be triggered if NJNG’s debt is downgraded by the major credit agencies, regardless of investment grade status. In addition, some of these agreements include threshold amounts that would result in additional collateral payments if the values of derivative liabilities were to exceed the maximum values provided for in relevant counterparty agreements. Other provisions include payment features that are not specifically linked to ratings, but are based on certain financial metrics. Collateral amounts associated with any of these conditions are determined based on a sliding scale and are contingent upon the degree to which the Company’s credit rating and/or financial metrics deteriorate, and the extent to which liability amounts exceed applicable threshold limits. There was approximately $161,000 of derivative instruments with credit-risk-related contingent features that were in a liability position for which collateral is required as of September 30, 2022. These amounts differ from the respective net derivative liabilities reflected on the Consolidated Balance Sheets because the agreements also include clauses, commonly known as “Rights of Offset,” that would permit the Company to offset its derivative assets against its derivative liabilities for determining additional collateral to be posted, as previously discussed. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Sep. 30, 2022 | |
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 loans receivable are recorded based on what the Company expects to receive, which approximates fair value, in other noncurrent assets on the Consolidated Balance Sheets. The Company regularly evaluates the credit quality and collection profile of its customers to approximate fair value. As of September 30, the estimated fair value of long-term debt, including current maturities, excluding finance leases, debt issuance costs and solar asset financing obligations, is as follows (1) : (Thousands) 2022 2021 NJNG (2) (3) Carrying value $ 1,292,845 $ 1,092,845 Fair market value $ 979,388 $ 1,188,261 NJR (4) Carrying value $ 1,070,000 $ 1,010,000 Fair market value $ 966,968 $ 1,100,283 (1) See Note 9. Debt f or a reconciliation to long-term and short-term debt . (2) Excludes finance leases of $30.3 million and $20.1 million as of September 30, 2022 and September 30, 2021, respectively. (3) Excludes NJNG’'s debt issuance costs of $9.5 million and $9.1 million as of September 30, 2022 and September 30, 2021, respectively. (4) Excludes NJR’s debt issuance costs of $3.8 million and $3.3 million as of September 30, 2022 and September 30, 2021, 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 Consolidated Balance Sheets. The estimated fair value of solar asset financing obligations as of September 30, 2022 and 2021 was $124.1 million and $132.5 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 September 30, 2022, the Company discloses its debt within Level 2 of the fair value hierarchy. Fair Value Hierarchy The Company 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 includes the following: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets. The Company’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 the Company refers to internally as basis swaps, fixed swaps, futures and financial options that are cleared through an 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. The Company’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). 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 the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies. Financial derivative portfolios of NJNG and Energy Services consist mainly of futures, options and swaps. The Company primarily uses the market approach, and its policy is to use actively quoted market prices when available. The principal market for its derivative transactions is the natural gas wholesale market; therefore, the primary sources for its price inputs are CME, NYMEX and ICE. Energy Services uses Platts and Natural Gas Exchange for Canadian delivery points. However, Energy Services also engages in transactions that result in transporting natural gas to delivery points for which there is no actively quoted market price. In most instances, the transportation cost to the final delivery location is not significant to the overall valuation. If required, Energy Services’ policy is to use the best information available to determine fair value based on internal pricing models, which would include estimates extrapolated from broker quotes or other pricing services. The Company also has other financial assets that include listed equities, mutual funds and money market funds for which there are active exchange quotes available. When the Company determines fair values, measurements are adjusted, as needed, for credit risk associated with its counterparties, as well as its own credit risk. The Company determines these adjustments by using historical default probabilities that correspond to the applicable S&P issuer ratings, while also taking into consideration collateral and netting arrangements that serve to mitigate risk. Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant (Thousands) (Level 1) (Level 2) (Level 3) Total As of September 30, 2022: Assets Physical commodity contracts $ — $ 10,485 $ — $ 10,485 Financial commodity contracts 20,517 — — 20,517 Financial commodity contracts - foreign exchange — 18 — 18 Money market funds 59 — — 59 Other 1,884 — — 1,884 Total assets at fair value $ 22,460 $ 10,503 $ — $ 32,963 Liabilities Physical commodity contracts $ — $ 30,623 $ — $ 30,623 Financial commodity contracts 33,231 168 — 33,399 Financial commodity contracts - foreign exchange — 17 — 17 Total liabilities at fair value $ 33,231 $ 30,808 $ — $ 64,039 As of September 30, 2021: Assets Physical commodity contracts $ — $ 3,187 $ — $ 3,187 Financial commodity contracts 35,340 — — 35,340 Financial commodity contracts - foreign exchange — 127 — 127 Money market funds 41 — — 41 Other 1,815 — — 1,815 Total assets at fair value $ 37,196 $ 3,314 $ — $ 40,510 Liabilities Physical commodity contracts $ — $ 37,845 $ — $ 37,845 Financial commodity contracts 62,188 606 — 62,794 Financial commodity contracts - foreign exchange — 3 — 3 Total liabilities at fair value $ 62,188 $ 38,454 $ — $ 100,642 |
INVESTMENTS IN EQUITY INVESTEES
INVESTMENTS IN EQUITY INVESTEES | 12 Months Ended |
Sep. 30, 2022 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS IN EQUITY INVESTEES | 7. INVESTMENTS IN EQUITY INVESTEES As of September 30, the Company’s investments in equity method investees includes the following: (Thousands) 2022 2021 Steckman Ridge (1) $ 106,571 $ 109,050 PennEast — 5,479 Total $ 106,571 $ 114,529 (1) Includes loans with a total outstanding principal balance of $70.4 million for both fiscal 2022 and 2021, which accrue interest at a variable rate that resets quarterly and are due October 1, 2023. Steckman Ridge The Company holds a 50 percent equity method investment in Steckman Ridge, a jointly owned and controlled natural gas storage facility located in Bedford County, Pennsylvania. NJNG and Energy Services have entered into storage and park and loan agreements with Steckman Ridge. See Note 18. Related Party Transactions for more information on these intercompany transactions. PennEast The Company, through its subsidiary NJR Midstream Company, is a 20 percent investor in PennEast, a partnership whose purpose was to construct and operate a 120-mile natural gas pipeline that would have extended from northeast Pennsylvania to western New Jersey. During the third quarter of fiscal 2021, the Company recognized an other-than-temporary impairment charge of $92.0 million, or approximately $74.5 million, net of income taxes, which represents the best estimate of the salvage value of the remaining assets of the project. Other-than-temporary impairments are recorded in equity in earnings (losses) of affiliates in the Consolidated Statements of Operations. In September 2021, the PennEast partnership determined that this project is no longer supported, and all further development has ceased. On December 16, 2021, the FERC dismissed PennEast’s pending applications. The order vacates the certificate authorization for the PennEast pipeline project in light of PennEast’s response to FERC staff’s November 23, 2021 request for a status update, in which PennEast informed the FERC it is no longer developing the project. During fiscal 2022, the PennEast board of managers approved cash distributions to members of the partnership following the sale of certain project-related assets and refunds of interconnection fees received from interstate pipelines. The return of capital received by the Company, which totaled $11.0 million, reduced the remaining carrying value of its equity method investment in PennEast to zero in the Consolidated Balance Sheet, with the excess recorded in equity in earnings (loss) of affiliates in the Consolidated Statements of Operations. The following is the summarized financial information for Steckman Ridge and PennEast for fiscal years ended September 30: (Thousands) 2022 2021 2020 Steckman Ridge Operating revenues $ 19,812 $ 21,847 $ 28,814 Gross profit $ 11,349 $ 13,350 $ 20,537 Income from continuing operations $ 8,686 $ 11,483 $ 16,926 Net income $ 8,686 $ 11,483 $ 16,926 Net income attributable to NJR $ 4,343 $ 5,741 $ 8,463 Current assets $ 28,609 $ 14,786 Noncurrent assets $ 198,052 $ 202,670 Current liabilities $ 23,618 $ 9,738 Noncurrent liabilities $ 140,810 $ 140,810 PennEast Operating revenues $ — $ — $ — Gross profit $ — $ — $ — Income from continuing operations $ (3,778) $ (406,305) $ 34,376 Net (loss) income $ (3,778) $ (406,305) $ 34,376 Net (loss) income attributable to NJR $ (756) $ (81,261) $ 6,875 Current assets $ 1,801 $ 822 Noncurrent assets $ — $ 44,998 Current liabilities $ 82 $ 248 Noncurrent liabilities $ 500 $ 500 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Sep. 30, 2022 | |
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 the fiscal years ended September 30: (Thousands, except per share amounts) 2022 2021 2020 Net income, as reported $ 274,922 $ 117,890 $ 163,007 Basic earnings per share Weighted average shares of common stock outstanding-basic 96,100 96,227 94,798 Basic earnings per common share $2.86 $1.23 $1.72 Diluted earnings per share Weighted average shares of common stock outstanding-basic 96,100 96,227 94,798 Incremental shares (1) 388 333 305 Weighted average shares of common stock outstanding-diluted 96,488 96,560 95,103 Diluted earnings per common share (2) $2.85 $1.22 $1.71 (1) Incremental shares consist primarily of unvested stock awards and performance units. (2) There were anti-dilutive shares of 74,000 excluded from the calculation of diluted earnings per share related to the equity forward sale agreement for fiscal 2020. There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2022 and 2021. |
DEBT
DEBT | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | 9. DEBT NJNG and NJR 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. Long-term Debt The following table presents the long-term debt of the Company as of September 30: (Thousands) 2022 2021 NJNG First mortgage bonds: Maturity date: 3.00% Series OO August 1, 2041 46,500 46,500 3.15% Series PP April 15, 2028 50,000 50,000 3.58% Series QQ March 13, 2024 70,000 70,000 4.61% Series RR March 13, 2044 55,000 55,000 2.82% Series SS April 15, 2025 50,000 50,000 3.66% Series TT April 15, 2045 100,000 100,000 3.63% Series UU June 21, 2046 125,000 125,000 4.01% Series VV May 11, 2048 125,000 125,000 3.50% Series WW April 1, 2042 10,300 10,300 3.38% Series XX April 1, 2038 10,500 10,500 2.45% Series YY April 1, 2059 15,000 15,000 3.76% Series ZZ July 17, 2049 100,000 100,000 3.86% Series AAA July 17, 2059 85,000 85,000 2.75% Series BBB August 1, 2039 9,545 9,545 3.00% Series CCC August 1, 2043 41,000 41,000 3.13% Series DDD June 30, 2050 50,000 50,000 3.13% Series EEE July 23, 2050 50,000 50,000 3.33% Series FFF July 23, 2060 25,000 25,000 2.87% Series GGG September 1, 2050 25,000 25,000 2.97% Series HHH September 1, 2060 50,000 50,000 2.97% Series III October 28, 2051 50,000 — 3.07% Series JJJ October 28, 2061 50,000 — 4.37% Series LLL May 27, 2037 50,000 — 4.71% Series MMM May 27, 2052 50,000 — Finance lease obligation-meters Various dates 30,290 20,135 Less: Debt issuance costs (9,528) (9,093) Less: Current maturities of long-term debt (6,538) (5,393) Total NJNG long-term debt 1,307,069 1,098,494 NJR 3.25% Unsecured senior notes September 17, 2022 — 50,000 3.20% Unsecured senior notes August 18, 2023 50,000 50,000 3.48% Unsecured senior notes November 7, 2024 100,000 100,000 3.54% Unsecured senior notes August 18, 2026 100,000 100,000 3.96% Unsecured senior notes June 8, 2028 100,000 100,000 3.29% Unsecured senior notes July 17, 2029 150,000 150,000 3.60% Unsecured senior notes July 23, 2032 130,000 130,000 3.50% Unsecured senior notes July 23, 2030 130,000 130,000 3.25% Unsecured senior notes September 1, 2033 80,000 80,000 3.13% Unsecured senior notes September 1, 2031 120,000 120,000 4.38% Unsecured senior notes June 23, 2027 110,000 — 3.64% Unsecured senior notes September 19, 2034 50,000 — Less: Debt issuance costs (3,753) (3,269) Less: Current maturities of long-term debt (50,000) (50,000) Total NJR long-term debt 1,066,247 956,731 Clean Energy Ventures Solar asset financing obligation Various dates 130,618 124,387 Less: Current maturities of long-term debt (18,532) (17,448) Total Clean Energy Ventures long-term debt 112,086 106,939 Total long-term debt $ 2,485,402 $ 2,162,164 Annual long-term debt redemption requirements, excluding finance leases, debt issuance costs and solar asset financing obligations, as of September 30, are as follows: (Thousands) NJR NJNG 2023 $ 50,000 $ — 2024 $ — $ 70,000 2025 $ 100,000 $ 50,000 2026 $ 100,000 $ — 2027 $ 110,000 $ — Thereafter $ 760,000 $ 1,172,845 NJR On June 23, 2022, NJR entered into a Note Purchase Agreement under which NJR issued $110 million, Series 2022A senior notes at a fixed rate of 4.38 percent, maturing in 2027. On September 16, 2022, NJR entered into another Note Purchase Agreement under which NJR issued $50 million, Series C senior notes at a fixed rate of 3.64 percent, maturing in 2034. The senior notes are unsecured and guaranteed by certain unregulated subsidiaries of NJR. NJNG First Mortgage Bonds NJNG and Trustee entered into the Mortgage Indenture, dated September 1, 2014, which secures all of the outstanding FMBs issued by NJNG. The Mortgage Indenture provides a direct first mortgage lien upon substantially all of the operating properties and franchises of NJNG (other than excepted property, such as cash on hand, choses-in-action, securities, rent, natural gas meters and certain materials, supplies, appliances and vehicles), subject only to certain permitted encumbrances. The Mortgage Indenture contains provisions subjecting after-acquired property (other than excepted property and subject to pre-existing liens, if any, at the time of acquisition) to the lien thereof. NJNG’s Mortgage Indenture does not restrict NJNG’s ability to pay dividends. New Jersey Administrative Code 14:4-4.7 states that a public utility cannot issue dividends, without regulatory approval, if its equity-to-total-capitalization ratio falls below 30 percent. As of September 30, 2022, NJNG’s equity-to-total-capitalization ratio is 53.7 percent and NJNG has the capacity to issue up to $1.3 billion of FMB under the terms of the Mortgage Indenture. On October 28, 2021, NJNG entered into a Note Purchase Agreement for $100 million of its senior notes, of which $50 million were issued at an interest rate of 2.97 percent, maturing in 2051, and $50 million were issued at an interest rate of 3.07 percent, maturing in 2061. On May 27, 2022, NJNG entered into a Note Purchase Agreement for $100 million of its senior notes, of which $50 million were issued at an interest rate of 4.37 percent, maturing in 2037, and $50 million were issued at an interest rate of 4.71 percent, maturing in 2052. On October 24, 2022, NJNG entered into a Note Purchase Agreement for $125 million of its senior notes at an interest rate of 5.47 percent, maturing in 2052. The senior notes are secured by an equal principal amount of NJNG’s FMBs issued under NJNG’s Mortgage Indenture. Sale Leasebacks NJNG received $17.3 million during fiscal 2022 in connection with the sale leaseback of its natural gas meters, with terms ranging from seven Contractual commitments for finance lease payments, as of the fiscal years ended September 30, are as follows: (Thousands) Lease Payments 2023 $ 7,252 2024 7,909 2025 6,026 2026 4,955 2027 2,630 Thereafter 3,262 Subtotal 32,034 Less: Interest component (1,744) Total $ 30,290 Clean Energy Ventures 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 Contractual commitments for the solar financing obligation payments, as of the fiscal years ended September 30, are as follows: (Thousands) Lease Payments 2023 $ 15,755 2024 43,000 2025 39,629 2026 2,841 2027 5,352 Thereafter 16,442 Subtotal 123,019 Less: Interest component (11,443) Total $ 111,576 Credit Facilities and Short-term Debt On February 8, 2022, NJR entered into a 364-day $150 million term loan credit agreement with an interest rate based on SOFR plus 0.85 percent, which expires on February 7, 2023. The Company borrowed $50 million on February 9, 2022 and $100 million on February 14, 2022. A summary of NJR’s credit facility and NJNG’s commercial paper program and credit facility as of September 30, are as follows: (Thousands) 2022 2021 Expiration Dates NJR Bank revolving credit facilities (1) $ 650,000 $ 500,000 September 2027 Notes outstanding at end of period $ 200,150 $ 219,100 Weighted average interest rate at end of period 3.97 % 1.05 % Amount available at end of period (2) $ 440,177 $ 270,312 Bank term loan credit agreement $ 150,000 $ — February 2023 Loans outstanding at end of period $ 150,000 $ — Weighted average interest rate at end of period 3.81 % — % Amount available at end of period $ — $ — NJNG Bank revolving credit facilities (3) $ 250,000 $ 250,000 September 2027 Commercial paper outstanding at end of period $ 73,800 $ 158,200 Weighted average interest rate at end of period 3.34 % .17 % Amount available at end of period (4) $ 175,469 $ 91,069 (1) Committed credit facilities, which require commitment fees of 0.10 percent on the unused amounts. (2) Letters of credit outstanding total $9.7 million and $10.6 million as of September 30, 2022 and September 30, 2021, respectively, which reduces amount available by the same amount. (3) Committed credit facilities, which require commitment fees of 0.075 percent on the unused amounts. (4) Letters of credit outstanding total $731,000 as of both September 30, 2022 and 2021, which reduces 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. NJR During fiscal 2021, NJR entered into a Second Amended and Restated Credit Agreement governing a $500 million NJR Credit Facility, which was to expire on September 2, 2026. The NJR Credit Facility is subject to two mutual options for a one-year extension beyond that date and includes an accordion feature, which allows NJR, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJR Credit Facility in increments of $50 million up to a maximum of $250 million. The NJR Credit Facility also permits the borrowing of revolving loans and swingline loans, as well as a $75 million sublimit for the issuance of letters of credit. On August 30, 2022, NJR amended the Second Amended and Restated Credit Agreement to $650 million and extended the maturity date of the facility to September 2, 2027. The amendment also increased the swingline to $70 million from $60 million and moved to SOFR as the benchmark rate, replacing the existing LIBOR. Certain of NJR’s unregulated subsidiaries have guaranteed all of NJR’s obligations under the NJR Credit Facility. The credit facility is used primarily to finance its share repurchases, to satisfy Energy Services’ short-term liquidity needs and to finance, on an initial basis, unregulated investments. As of September 30, 2022, NJR had seven letters of credit outstanding totaling $9.7 million on behalf of Energy Services and Clean Energy Ventures. These letters of credit reduce the amount available under NJR’s committed credit facility by the same amount. NJR does not anticipate that these letters of credit will be drawn upon by the counterparties, and they will be renewed as necessary. Energy Services’ letters of credit are used for margin requirements for natural gas transactions, collateral and security deposit for retail natural gas sales, and they expire on dates ranging from September 2023 to December 2023. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities. NJNG During fiscal 2021, NJNG entered into a Second Amended and Restated Credit Agreement governing a $250 million, NJNG Credit Facility, which was to expire on September 2, 2026. The NJNG Credit Facility is subject to two mutual options for a one-year extension beyond that date and permits the borrowing of revolving loans and swingline loans, as well as a $30 million sublimit for the issuance of letters of credit. The NJNG Credit Facility also includes an accordion feature, which would allow NJNG, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJNG Credit Facility in minimum increments of $50 million up to a maximum of $100 million. On August 30, 2022, NJNG amended the Second Amended and Restated Credit Agreement to extend the maturity date of the facility to September 2, 2027, and moved to SOFR as the benchmark rate, replacing the existing LIBOR. As of September 30, 2022, NJNG has two letters of credit outstanding for 731,000, which reduced the amount available under the NJNG Credit Facility by the same amount. NJNG does not anticipate that these letters of credit will be drawn upon by the counterparties. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | 10. STOCK-BASED COMPENSATION In January 2017, the NJR 2017 Stock Award and Incentive Plan replaced the NJR 2007 Stock Award and Incentive Plan. Shares have been issued in the form of performance share units, restricted stock units, deferred retention stock units and unrestricted common stock to non-employee directors. As of September 30, 2022, 2,918,487 shares remain available for future issuance. The following table summarizes all stock-based compensation expense recognized during the following fiscal years: (Thousands) 2022 2021 2020 Stock-based compensation expense: Performance share awards $ 4,131 $ 3,856 $ 1,943 Restricted and non-restricted stock 3,189 3,193 2,868 Deferred retention stock 7,507 100 1,725 Compensation expense included in operation and maintenance expense 14,827 7,149 6,536 Income tax benefit (1) (3,624) (1,613) (1,900) Total, net of tax $ 11,203 $ 5,536 $ 4,636 (1) Excludes additional tax (expense) benefit related to delivered shares of $(144,000), $(159,000) and $647,000 as of September 30, 2022, 2021 and 2020, respectively. Performance Share Units In fiscal 2022, the Company granted to certain officers 44,965 performance shares, which are market condition awards that vest on September 30, 2024, subject to the Company meeting certain conditions. In fiscal 2022, the Company also granted to certain officers 73,561 performance shares, of which 44,596 vest on September 30, 2024 and 28,965 vest annually over a three-year period beginning in September 2022, both of which are subject to the Company meeting certain performance conditions. In fiscal 2021, the Company granted to certain officers 46,813 performance shares, which are market condition awards that vest on September 30, 2023, subject to the Company meeting certain conditions. In fiscal 2021, the Company also granted to certain officers 70,138 performance shares, of which 44,156 vest on September 30, 2023 and 25,982 vest annually over a three-year period beginning in September 2021, both of which are subject to the Company meeting certain performance conditions. In fiscal 2020, the Company granted to certain officers 33,123 performance shares, which are market condition awards that vested on September 30, 2022, subject to the Company meeting certain conditions. In fiscal 2020, the Company also granted to certain officers 48,941 performance shares, of which 30,473 vested in September 30, 2022 and 18,468 vest annually over a three-year period beginning in September 2020, both of which were subject to the Company meeting certain performance conditions. The vesting of these awards are shown in the table below. There is approximately $4.4 million of deferred compensation related to unvested performance shares that is expected to be recognized over the weighted average period of 1.7 years. The following table summarizes the performance share activity under the stock award and incentive plans for the past three fiscal years: Shares (1) Weighted Average Total Fair Value of Vested Shares (in Thousands) Non-vested and outstanding at September 30, 2019 130,509 $46.53 — Granted 82,064 $40.61 — Vested (2) (55,025) $44.27 $ 2,083 Cancelled/forfeited (1,817) $44.38 — Non-vested and outstanding at September 30, 2020 155,731 $44.22 — Granted 116,951 $33.34 — Vested (3) (54,918) $44.64 $ 1,673 Cancelled/forfeited (51,673) $45.32 — Non-vested and outstanding at September 30, 2021 166,091 $36.08 — Granted 118,526 $38.84 — Vested (4) (76,708) $39.57 $ 2,765 Cancelled/forfeited (15,788) $37.33 — Non-vested and outstanding at September 30, 2022 192,121 $36.29 — (1) The number of common shares issued related to certain performance shares may range from zero to 150 percent of the number of shares shown in the table above based on the Company’s achievement of performance goals. (2) As certified by the Company’s Leadership and Compensation Committee on November 9, 2020, there were no common shares earned related to TSR performance, the number of common shares earned related to NFE performance was 114 percent or 28,513 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100 percent or 11,139 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100 percent. (3) As certified by the Company’s Leadership and Compensation Committee on November 10, 2021, there were no common shares earned related to TSR performance, the number of common shares earned related to NFE performance was 93 percent or 31,116 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100 percent or 25,982 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100 percent. (4) As certified by the Company’s Leadership and Compensation Committee on November 9, 2022, the number of common shares earned related to TSR performance was 112 percent or 30,472 shares, the number of common shares earned related to NFE performance was 105 percent or 26,282 shares and the number of common shares earned related to Performance Based Restricted Stock was 100 percent or 28,965 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100 percent. The Company measures compensation expense related to performance shares based on the fair value of these awards at their date of grant. In accordance with ASC 718, Compensation - Stock Compensation , compensation expense for market condition grants are recognized for awards granted, and are not adjusted based on actual achievement of the performance goals. The Company estimated the fair value of these grants on the date of grant using a lattice model. Performance condition grants are initially fair valued at the Company’s stock price on grant date, and are subsequently adjusted for actual achievement of the performance goals. Restricted Stock Units The Company granted 54,826, 67,726 and 42,478 shares of restricted stock during fiscal 2022, 2021 and 2020, respectively. The shares vest annually over a three-year period beginning in October of the fiscal year in which they were granted. There is approximately $1.0 million of deferred compensation related to unvested restricted stock shares that is expected to be recognized over the weighted average period of 1.8 years. The following table summarizes the restricted stock activity under the stock award and incentive plans for the past three fiscal years: Shares Weighted Average Total Fair Value of Vested Shares (in Thousands) Non-vested and outstanding at September 30, 2019 58,156 $46.18 — Granted 42,478 $40.61 — Vested (25,973) $44.71 $ 1,073 Cancelled/forfeited (1,175) $43.62 — Non-vested and outstanding at September 30, 2020 73,486 $43.52 — Granted 67,726 $33.34 — Vested (34,000) $44.30 $ 996 Cancelled/forfeited (5,591) $36.34 — Non-vested and outstanding at September 30, 2021 101,621 $36.87 — Granted 54,826 $38.84 — Vested (47,867) $39.01 $ 1,824 Cancelled/forfeited (10,756) $37.06 — Non-vested and outstanding at September 30, 2022 97,824 $36.90 — Deferred Retention Stock Units Deferred retention stock awards are granted upon approval by the Board of Directors, which generally occurs subsequent to the fiscal year end. Deferred retention stock awards vest immediately when granted, with shares delivered at a future date in accordance with the terms of the underlying agreements. The expense for these awards is recognized in the fiscal year in which services are rendered. The following table summarizes the deferred retention stock award under the stock award and incentive plans for the past three fiscal years: Shares Weighted Average Total Fair Value of Vested Shares (in Thousands) Outstanding at September 30, 2019 243,561 $44.67 — Granted/Vested 42,358 $40.72 — Delivered (57,673) $35.25 $ 2,423 Outstanding at September 30, 2020 228,246 $46.32 — Granted/Vested 2,999 $33.34 — Delivered (22,389) $45.00 $ 641 Outstanding at September 30, 2021 208,856 $46.28 — Granted/Vested 192,728 $38.95 — Delivered (163,499) $47.95 $ 6,167 Forfeited (6,818) 40.33 — Outstanding at September 30, 2022 231,267 $39.16 — Non-Employee Director Stock Non-employee director compensation includes an annual equity retainer that is awarded at the time of the Company’s annual meeting of shareowners. The shares vest upon the earlier of the first anniversary of the grant date or the date of the Company’s next annual meeting of shareowners following the grant date and are subsequently amortized to expense over a 12-month period. The following summarizes non-employee director share awards for the past three fiscal years: 2022 2021 2020 Shares granted 30,908 (1) 34,994 27,696 Weighted average grant date fair value $39.09 $35.72 $42.88 (1) Approximately $300,000 of expense remains as of September 30, 2022, to be recognized through December 31, 2022. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | 11. EMPLOYEE BENEFIT PLANS Pension and Other Postemployment Benefit Plans The Company has two trusteed, noncontributory defined benefit retirement plans covering eligible regular represented and non-represented employees with more than one year of service. Defined benefit plan benefits are based on years of service and average compensation during the highest 60 consecutive months of employment. The Company also provides postemployment medical and life insurance benefits to employees who meet certain eligibility requirements. All represented employees of NJRHS hired on or after October 1, 2000, non-represented employees hired on or after October 1, 2009 and NJNG represented employees hired on or after January 1, 2012 are covered by an enhanced defined contribution plan instead of the defined benefit plan. Participation in the postemployment medical and life insurance plan was also frozen to new employees as of the same dates, with the exception of new NJRHS represented employees, for which benefits were frozen beginning April 3, 2012. The Company maintains an unfunded nonqualified PEP that was established to provide employees with the full level of benefits as stated in the qualified plan without reductions due to various limitations imposed by the provisions of federal income tax laws and regulations. There are no plan assets in the nonqualified plan due to the nature of the plan. The Company’s funding policy for its pension plans is to contribute at least the minimum amount required by the Employee Retirement Income Security Act of 1974, as amended. In fiscal 2022 and 2021, the Company had no minimum funding requirements and did not make any discretionary contributions to the pension plans. The Company does not expect to be required to make additional contributions to fund the pension plans during the next fiscal year based on current actuarial assumptions; however, funding requirements are uncertain and can depend significantly on changes in actuarial assumptions, returns on plan assets and changes in the demographics of eligible employees and covered dependents. There are no federal requirements to pre-fund OPEB benefits. However, the Company is required to fund certain amounts due to regulatory agreements with the BPU. The Company contributed $6.1 million and $7.2 million in fiscal 2022 and 2021, respectively, 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 Affordable Care Act was enacted in March 2010 and created an excise tax applicable to high-cost health plans, commonly known as the Cadillac Tax. Beginning in 2022, employers who sponsor health plans that have an annual cost that exceeded an amount defined by the law pay a 40 percent tax on the excess plan costs. The 2020 federal spending package permanently eliminated the Affordable Care Act-mandated Cadillac tax on high-cost employer-sponsored health coverage. Due to the repeal, the Company’s OPEB liability was revalued for these changes. 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 and is incorporated within actuarial assumptions at September 30, 2020. The following summarizes the changes in the funded status of the plans and the related liabilities recognized on the Consolidated Balance Sheets as of September 30: Pension (1) OPEB (Thousands) 2022 2021 2022 2021 Change in Benefit Obligation Benefit obligation at beginning of year $ 395,547 $ 397,164 $ 244,674 $ 245,862 Service cost 8,291 8,730 4,305 4,844 Interest cost 9,632 9,112 6,355 6,071 Plan participants’ contributions (2) 59 27 423 451 Actuarial (gain) (109,320) (7,319) (77,775) (4,715) Benefits paid, net of retiree subsidies received (13,386) (12,167) (4,765) (7,839) Benefit obligation at end of year $ 290,823 $ 395,547 $ 173,217 $ 244,674 Change in plan assets Fair value of plan assets at beginning of year $ 355,284 $ 307,968 $ 114,183 $ 96,406 Actual (loss) return on plan assets (58,239) 58,874 (15,996) 18,144 Employer contributions 628 548 6,082 7,198 Benefits paid, net of plan participants’ contributions (2) (13,326) (12,106) (4,533) (7,565) Fair value of plan assets at end of year $ 284,347 $ 355,284 $ 99,736 $ 114,183 Funded status $ (6,476) $ (40,263) $ (73,481) $ (130,491) Amounts recognized on Consolidated Balance Sheets Postemployment employee benefit asset Noncurrent $ 4,388 $ — $ — $ — Postemployment employee benefit liability Current $ (578) $ (587) $ (900) $ (900) Noncurrent (10,286) (39,676) (72,581) (129,591) Total $ (6,476) $ (40,263) $ (73,481) $ (130,491) (1) Includes the Company’s PEP. (2) Employees hired prior to July 1, 1998, that were eligible to elect an additional participant contribution to enhance their benefits, and contributions made during the periods were immaterial. The actuarial gains on the Company’s pension and OPEB are due primarily to an increase in the discount rate used to measure the benefit obligation. The Company recognizes a liability for its underfunded benefit plans as required by ASC 715, Compensation - Retirement Benefits . The Company records the offset to regulatory assets for the portion of liability relating to NJNG and to accumulated OCI for the portion of the liability related to its unregulated operations. The following table summarizes the amounts recognized in regulatory assets and accumulated OCI as of September 30: Regulatory Assets Accumulated Other Comprehensive Income (Loss) Pension OPEB Pension OPEB Balance at September 30, 2020 $ 103,564 $ 83,301 $ 33,004 $ 13,823 Amounts arising during the period: Net actuarial (gain) (39,006) (16,286) (7,036) (76) Amounts amortized to net periodic costs: Net actuarial (loss) (8,269) (6,846) (3,178) (1,064) Prior service (cost) credit (102) 166 — 13 Balance at September 30, 2021 $ 56,187 $ 60,335 $ 22,790 $ 12,696 Amounts arising during the period: Net actuarial (gain) (14,922) (35,781) (14,885) (18,422) Amounts amortized to net periodic costs: Net actuarial (loss) (5,843) (4,577) (2,902) (1,107) Prior service (cost) credit (101) 133 — 11 Balance at September 30, 2022 $ 35,321 $ 20,110 $ 5,003 $ (6,822) The amounts in regulatory assets and accumulated OCI not yet recognized as components of net periodic benefit cost as of September 30 are: Regulatory Assets Accumulated Other Comprehensive Pension OPEB Pension OPEB (Thousands) 2022 2021 2022 2021 2022 2021 2022 2021 Net actuarial loss (gain) $ 35,157 $ 55,922 $ 20,110 $ 60,468 $ 5,003 $ 22,790 $ (6,822) $ 12,707 Prior service cost (credit) 164 265 — (133) — — — (11) Total $ 35,321 $ 56,187 $ 20,110 $ 60,335 $ 5,003 $ 22,790 $ (6,822) $ 12,696 To the extent the unrecognized amounts in accumulated OCI or regulatory assets exceed 10 percent of the greater of the benefit obligation or the fair value of plan assets, an amortized amount over the average expected future working lifetime of the active plan participants is recognized. Amounts included in regulatory assets and accumulated OCI expected to be recognized as components of net periodic benefit cost in fiscal 2023 are as follows: Regulatory Assets Accumulated Other Comprehensive Income (Loss) (Thousands) Pension OPEB Pension OPEB Net actuarial (gain) loss $ (36) $ — $ 217 $ — Total $ (36) $ — $ 217 $ — The projected benefit and accumulated benefit obligations and the fair value of plan assets as of September 30, are as follows: Pension (Thousands) 2022 2021 Projected benefit obligation $ 290,823 $ 395,547 Accumulated benefit obligation $ 265,933 $ 353,852 Fair value of plan assets $ 284,347 $ 355,284 The components of the net periodic cost for pension benefits, including the Company’s PEP, and OPEB costs (principally health care and life insurance) for employees and covered dependents for fiscal years ended September 30, are as follows: Pension OPEB (Thousands) 2022 2021 2020 2022 2021 2020 Service cost $ 8,291 $ 8,730 $ 8,223 $ 4,305 $ 4,844 $ 4,854 Interest cost 9,632 9,112 10,587 6,355 6,071 7,026 Expected return on plan assets (21,275) (20,150) (20,579) (7,575) (6,497) (6,510) Recognized actuarial loss 8,745 11,446 10,424 5,684 7,909 7,442 Prior service cost (credit) amortization 101 102 102 (144) (179) (197) Net periodic benefit cost recognized as expense $ 5,494 $ 9,240 $ 8,757 $ 8,625 $ 12,148 $ 12,615 Assumptions The weighted average assumptions used to determine the Company’s benefit costs during the fiscal years below and obligations as of September 30, are as follows: Pension OPEB 2022 2021 2020 2022 2021 2020 Benefit costs: Discount rate 3.10/3.07% (1) 2.95/2.92% (1) 3.37/3.35% (1) 3.24/3.17% (1) 3.08/3.03% (1) 3.48/3.44% (1) Expected asset return 6.75 % 6.75 % 7.25 % 6.75 % 6.75 % 7.25 % Compensation increase 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) Obligations: Discount rate 5.50/5.50% (1) 3.10/3.07% (1) 2.95/2.92% (1) 5.51/5.51% (1) 3.24/3.17% (1) 3.08/3.03% (1) Compensation increase 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) (1) Percentages for represented and non-represented plans, respectively. When measuring its PBO, the Company uses an aggregate discount rate at which its obligation could be effectively settled. The Company determines a single weighted average discount rate based on a yield curve comprised of rates of return on a population of high quality debt issuances (AA- or better) whose cash flows (via coupons or maturities) match the timing and amount of its expected future benefit payments. The Company measures its service and interest costs using a disaggregated, or spot rate, approach. The Company applies the duration-specific spot rates from the full yield curve, as of the measurement date, to each year’s future benefit payments, which aligns the timing of the plans’ separate future cash flows to the corresponding spot rates on the yield curve. Information relating to the assumed HCCTR used to determine expected OPEB benefits as of September 30, and the effect of a 1 percent change in the rate, are as follows: ($ in thousands) 2022 2021 2020 HCCTR 6.6% 6.9% 7.6% Ultimate HCCTR 4.5% 4.5% 4.5% Year ultimate HCCTR reached 2027 2027 2026 Effect of a 1 percentage point increase in the HCCTR on: Year-end benefit obligation $ 26,710 $ 43,217 $ 49,106 Total service and interest cost $ 2,544 $ 2,959 $ 2,799 Effect of a 1 percentage point decrease in the HCCTR on: Year-end benefit obligation $ (21,853) $ (34,669) $ (38,844) Total service and interest costs $ (1,966) $ (2,253) $ (2,151) The Company’s investment objective is a long-term real rate of return on assets before permissible expenses that is approximately 5 percent greater than the assumed rate of inflation, as measured by the consumer price index. The expected long-term rate of return is based on the asset categories in which the Company invests and the current expectations and historical performance for these categories. The mix and targeted allocation of the pension and OPEB plans’ assets are as follows: 2023 Assets at Target September 30, Asset Allocation Allocation 2022 2021 U.S. equity securities 34 % 32 % 36 % International equity securities 17 16 17 Fixed income 33 32 40 Collective investment trusts at NAV 16 20 7 Total 100 % 100 % 100 % The Company adopted the revised mortality assumptions published by the Society of Actuaries for its pension and other postemployment benefit obligations, which reflected increased life expectancies in the U.S. The adoption of the new mortality projection scale, MP-2021 and the Pri-2012 mortality study, did not materially impact the projected benefit obligation for the plans. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following fiscal years: (Thousands) Pension OPEB 2023 $ 14,112 $ 6,878 2024 $ 15,143 $ 7,508 2025 $ 16,150 $ 8,220 2026 $ 17,137 $ 8,938 2027 $ 18,104 $ 9,656 2028 - 2032 $ 104,614 $ 57,488 The Company’s OPEB plans provide prescription drug benefits that are actuarially equivalent to those provided by Medicare Part D. Therefore, under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, the Company qualifies for federal subsidies. The following estimated subsidy payments are expected to be paid during the following fiscal years: Estimated Subsidy (Thousands) Payments 2023 $ 356 2024 $ 393 2025 $ 433 2026 $ 475 2027 $ 520 2028 - 2032 $ 3,426 Pension and OPEB assets held in the master trust, measured at fair value, as of September 30, are summarized as follows: (Thousands) Quoted Prices in Active Markets for Identical Assets Total Quoted Prices in Active Markets for Identical Assets Total As of September 30, 2022 Pension OPEB Assets Money market funds $ — $ — $ 28 $ 28 Registered Investment Companies: Equity Funds: Large Cap Index 75,394 75,394 26,939 26,939 Extended Market Index 15,783 15,783 5,578 5,578 International Stock 44,846 44,846 16,106 16,106 Fixed Income Funds: Emerging Markets 11,074 11,074 4,026 4,026 Core Fixed Income — — 16,594 16,594 Opportunistic Income — — 3,283 3,283 Ultra Short Duration — — 3,296 3,296 High Yield Bond Fund 19,816 19,816 7,320 7,320 Long Duration Fund 59,084 59,084 — — Total assets in the fair value hierarchy $ 225,997 225,997 $ 83,170 83,170 Investments measured at net asset value Collective investment trusts 58,350 16,566 Total assets at fair value $ 284,347 $ 99,736 (Thousands) Quoted Prices in Active Markets for Identical Assets Total Quoted Prices in Active Markets for Identical Assets Total As of September 30, 2021: Pension OPEB Assets Money market funds $ — $ — $ 32 $ 32 Registered Investment Companies: Equity Funds: Large Cap Index 103,961 103,961 33,644 33,644 Extended Market Index 21,948 21,948 7,096 7,096 International Stock 61,286 61,286 20,063 20,063 Fixed Income Funds: Emerging Markets 18,291 18,291 6,001 6,001 Core Fixed Income — — 13,345 13,345 Opportunistic Income — — 8,568 8,568 Ultra Short Duration — — 8,536 8,536 High Yield Bond Fund 30,300 30,300 9,912 9,912 Long Duration Fund 93,849 93,849 — — Total assets in the fair value hierarchy $ 329,635 329,635 $ 107,197 107,197 Investments measured at net asset value Collective investment trusts 25,649 6,986 Total assets at fair value $ 355,284 $ 114,183 The Plan had no Level 2 or Level 3 fair value measurements during fiscal 2022 and 2021, and there have been no changes in valuation methodologies as of September 30, 2022. The Plan held assets that are valued using NAV as a practical expedient, which are excluded from the fair value hierarchy. The following is a description of the valuation methodologies used for assets measured at fair value: Money Market funds — Represents bank balances and money market funds that are valued based on the NAV of shares held at year end. Registered Investment Companies — Equity and fixed income funds valued at the NAV of shares held by the plan at year end as reported on the active market on which the individual securities are traded. Collective investment trusts — The NAV for collective investment trusts is provided by the Trustee and is used as a practical expedient to estimate fair value. The NAV is based on the value of the underlying assets owned by the fund less liabilities. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Defined Contribution Plan The Company offers a Savings Plan to eligible employees. The Company matches 85 percent of participants’ contributions up to 6 percent of base compensation. Represented NJRHS employees, non-represented employees hired on or after October 1, 2009, and NJNG represented employees hired on or after January 1, 2012, are eligible for an employer special contribution of between 3.5 percent and 4.5 percent of base compensation, depending on years of service, into the Savings Plan on their behalf. The amount expensed and contributed for the matching provision of the Savings Plan was $5.5 million in fiscal 2022, $5.1 million in fiscal 2021 and $4.5 million in fiscal 2020. The amount contributed for the employer special contribution of the Savings Plan was $2.4 million in fiscal 2022, $2.1 million in fiscal 2021 and $1.6 million in fiscal 2020. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Sep. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | 12. ASSET RETIREMENT OBLIGATIONS The Company recognizes ARO when the legal obligation to retire an asset has been incurred and a reasonable estimate of fair value can be made. Accordingly, the Company recognizes ARO related to the costs associated with cutting and capping its main and service natural gas distribution pipelines of NJNG, which is required by New Jersey law when taking such natural gas distribution pipeline out of service. The Company also recognizes ARO related to Clean Energy Ventures’ solar assets when there are decommissioning provisions in Clean Energy Ventures’ lease agreements that require removal of the asset. Accretion amounts associated with NJNG’s ARO are recognized as part of its depreciation expense, and the corresponding regulatory asset and liability will be shown gross on the Consolidated Balance Sheets. Accretion amounts associated with Clean Energy Ventures’ ARO are recognized as a component of operations and maintenance expense on the Consolidated Statements of Operations. The following is an analysis of the change in the Company’s ARO for the fiscal years ended September 30: 2022 2021 (Thousands) NJNG NJRCEV NJNG NJRCEV Balance at October 1 $ 41,611 $ 4,694 $ 29,280 $ 4,444 Accretion 2,052 186 1,612 182 Additions 161 281 5,697 68 Change in assumptions 7,339 — 6,151 — Retirements (1,289) — (1,129) — Balance at period end $ 49,874 $ 5,161 $ 41,611 $ 4,694 Accretion for the next five years, for the fiscal years ended September 30, is estimated to be as follows: Estimated (Thousands) Accretion 2023 $ 2,767 2024 2,900 2025 3,038 2026 3,180 2027 3,328 Total $ 15,213 |
LEASES
LEASES | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
LEASES | 14. 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. After the criteria is satisfied, the Company accounts for these arrangements as 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. 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. The 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 natural gas stored in the storage caverns. Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five two seven 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 considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation. The following table presents the Company’s lease costs included in the Consolidated Statements of Operations for the fiscal year ended September 30: (Thousands) Income Statement Location 2022 2021 Operating lease cost (1) Operation and maintenance $ 9,702 $ 8,182 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 1,769 3,442 Interest on lease liabilities Interest expense, net of capitalized interest 612 710 Total finance lease cost $ 2,381 $ 4,152 Short-term lease cost Operation and maintenance 34 543 Variable lease cost Operation and maintenance 781 1,381 Total lease cost $ 12,898 $ 14,258 (1) Net of capitalized costs. The following table presents supplemental cash flow information related to leases for the fiscal year ended September 30: (Thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 7,417 $ 6,675 Operating cash flows for finance leases $ 831 $ 1,167 Financing cash flows for finance leases $ 7,145 $ 8,180 Assets obtained or modified for operating lease liabilities totaled approximately $911,000 and $46.1 million during fiscal 2022 and 2021, respectively. Assets obtained or modified through finance lease liabilities totaled $17.3 million during fiscal 2022. There were no assets obtained or modified through finance lease liabilities during fiscal 2021. The following table presents the balance and classifications of the Company’s right of use assets and lease liabilities included in the Consolidated Balance Sheets for the fiscal year ended September 30: (Thousands) Balance Sheet Location 2022 2021 Assets Noncurrent Operating lease assets Operating lease assets $ 168,520 $ 173,928 Finance lease assets Utility plant 21,913 13,489 Total lease assets $ 190,433 $ 187,417 Liabilities Current Operating lease liabilities Operating lease liabilities $ 4,562 $ 4,300 Finance lease liabilities Current maturities of long-term debt 6,538 5,393 Noncurrent Operating lease liabilities Operating lease liabilities 138,382 141,363 Finance lease liabilities Long-term debt 23,752 14,742 Total lease liabilities $ 173,234 $ 165,798 For operating lease assets and liabilities, the weighted average remaining lease term was 29.2 years and 29.6 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.2 percent for both September 30, 2022 and 2021. For finance lease assets and liabilities as of September 30, 2022 and 2021, the weighted average remaining lease term was 4.0 years and 3.4 years, respectively, and the weighted average discount rate used in the valuation over the remaining lease term is 2.7 percent and 3.5 percent as of September 30, 2022 and 2021, respectively. The following table presents the Company’s maturities of lease liabilities as of September 30, 2022: (Thousands) Operating Leases Finance Leases 2023 $ 8,024 $ 7,252 2024 7,652 7,909 2025 7,087 6,026 2026 6,998 4,955 2027 6,972 2,630 Thereafter 190,972 3,262 Total future lease payments 227,705 32,034 Less: interest (84,761) (1,744) Total lease liability $ 142,944 $ 30,290 |
LEASES | 14. 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. After the criteria is satisfied, the Company accounts for these arrangements as 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. 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. The 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 natural gas stored in the storage caverns. Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five two seven 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 considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation. The following table presents the Company’s lease costs included in the Consolidated Statements of Operations for the fiscal year ended September 30: (Thousands) Income Statement Location 2022 2021 Operating lease cost (1) Operation and maintenance $ 9,702 $ 8,182 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 1,769 3,442 Interest on lease liabilities Interest expense, net of capitalized interest 612 710 Total finance lease cost $ 2,381 $ 4,152 Short-term lease cost Operation and maintenance 34 543 Variable lease cost Operation and maintenance 781 1,381 Total lease cost $ 12,898 $ 14,258 (1) Net of capitalized costs. The following table presents supplemental cash flow information related to leases for the fiscal year ended September 30: (Thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 7,417 $ 6,675 Operating cash flows for finance leases $ 831 $ 1,167 Financing cash flows for finance leases $ 7,145 $ 8,180 Assets obtained or modified for operating lease liabilities totaled approximately $911,000 and $46.1 million during fiscal 2022 and 2021, respectively. Assets obtained or modified through finance lease liabilities totaled $17.3 million during fiscal 2022. There were no assets obtained or modified through finance lease liabilities during fiscal 2021. The following table presents the balance and classifications of the Company’s right of use assets and lease liabilities included in the Consolidated Balance Sheets for the fiscal year ended September 30: (Thousands) Balance Sheet Location 2022 2021 Assets Noncurrent Operating lease assets Operating lease assets $ 168,520 $ 173,928 Finance lease assets Utility plant 21,913 13,489 Total lease assets $ 190,433 $ 187,417 Liabilities Current Operating lease liabilities Operating lease liabilities $ 4,562 $ 4,300 Finance lease liabilities Current maturities of long-term debt 6,538 5,393 Noncurrent Operating lease liabilities Operating lease liabilities 138,382 141,363 Finance lease liabilities Long-term debt 23,752 14,742 Total lease liabilities $ 173,234 $ 165,798 For operating lease assets and liabilities, the weighted average remaining lease term was 29.2 years and 29.6 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.2 percent for both September 30, 2022 and 2021. For finance lease assets and liabilities as of September 30, 2022 and 2021, the weighted average remaining lease term was 4.0 years and 3.4 years, respectively, and the weighted average discount rate used in the valuation over the remaining lease term is 2.7 percent and 3.5 percent as of September 30, 2022 and 2021, respectively. The following table presents the Company’s maturities of lease liabilities as of September 30, 2022: (Thousands) Operating Leases Finance Leases 2023 $ 8,024 $ 7,252 2024 7,652 7,909 2025 7,087 6,026 2026 6,998 4,955 2027 6,972 2,630 Thereafter 190,972 3,262 Total future lease payments 227,705 32,034 Less: interest (84,761) (1,744) Total lease liability $ 142,944 $ 30,290 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | 15. COMMITMENTS AND CONTINGENT LIABILITIES Cash Commitments NJNG has entered into long-term contracts, expiring at various dates through September 2039, for the supply, transportation and storage of natural gas. These contracts include annual fixed charges of approximately $196.6 million at current contract rates and volumes, which are recoverable through BGSS. For the purpose of securing storage and pipeline capacity, Energy Services 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 Commitments as of September 30, 2022, for natural gas purchases and future demand fees for the next five fiscal year periods, are as follows: (Thousands) 2022 2023 2024 2025 2026 Thereafter Energy Services: Natural gas purchases $ 199,629 $ 2,355 $ — $ — $ — $ — Storage demand fees 21,160 12,607 6,450 3,797 2,208 819 Pipeline demand fees 56,757 44,466 32,285 31,876 23,061 20,724 Sub-total Energy Services $ 277,546 $ 59,428 $ 38,735 $ 35,673 $ 25,269 $ 21,543 NJNG: Natural gas purchases $ 30,730 $ — $ — $ — $ — $ — Storage demand fees 47,513 35,345 17,370 10,268 9,546 4,775 Pipeline demand fees 149,071 120,805 138,949 127,722 124,163 1,057,942 Sub-total NJNG $ 227,314 $ 156,150 $ 156,319 $ 137,990 $ 133,709 $ 1,062,717 Total $ 504,860 $ 215,578 $ 195,054 $ 173,663 $ 158,978 $ 1,084,260 Certain pipeline demand fees totaling approximately $4.0 million per year, for which Energy Services is the responsible party, are being paid for by the counterparty to a capacity release transaction beginning November 1, 2021 for a period of 10 years. As of September 30, 2022, the Company’s future minimum lease payments under various operating leases will not be more than $8.0 million annually for the next five years and $191.0 million in the aggregate for all years thereafter. Guarantees As of September 30, 2022, there were NJR guarantees covering approximately $261.7 million of Energy Services’ natural gas purchases and demand fee commitments not yet reflected in accounts payable on the Consolidated Balance Sheets. Legal Proceedings Manufactured Gas Plant Remediation NJNG is responsible for the remedial cleanup of 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 is 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, Freehold and Aberdeen, New Jersey, 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 natural resource damages that might be brought by the NJDEP for alleged injury to groundwater or other natural resources concerning these sites, will range from approximately $110.8 million to $167.1 million. NJNG’s estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG’s policy to accrue the lower end of the range. Accordingly, as of September 30, 2022, NJNG recorded a MGP remediation liability and a corresponding regulatory asset of approximately $127.1 million on the Consolidated Balance Sheets based on the most likely amount. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and 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 former MGP operations were active at the location. The preliminary assessment and site investigation activities are ongoing at the Aberdeen site. The estimated costs to complete the preliminary assessment and site investigation phase are included in the MGP remediation liability and corresponding regulatory asset on the Consolidated Balance Sheets at September 30, 2022 and 2021. NJNG will continue to gather information to determine whether the obligation exists to undertake remedial action, if any, and refine its estimate of potential costs for this site as more information 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 23, 2022, the BPU approved an increase in the RAC, which increased the pre-tax annual recovery from $11.1 million to $11.7 million, effective April 1, 2022. On September 13, 2022, NJNG submitted its annual filing to the BPU requesting approval of RAC expenditures through June 30, 2022, as well as an increase to the RAC annual recoveries of $3.8 million, which will increase the pre-tax annual recovery to $15.5 million, effective April 1, 2023. As of September 30, 2022, $66.1 million of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Consolidated Balance Sheets. NJNG 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, the Company 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. The Company also discloses contingent matters for which there is a reasonable possibility of a loss. Based upon currently available information, the Company believes that the results of litigation that are currently pending, taken together, will not have a materially adverse effect on the Company’s financial condition, results of operations or cash flows. The actual results of resolving the pending litigation matters may be substantially higher than the amounts accrued. The foregoing statements about the Company’s litigation are based upon the Company’s judgments, assumptions and estimates and are necessarily subjective and uncertain. The Company has a number of threatened and pending litigation matters at various stages. |
COMMON STOCK EQUITY
COMMON STOCK EQUITY | 12 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
COMMON STOCK EQUITY | 16. COMMON STOCK EQUITY In December 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 common shares 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 allowed 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 was subjected to adjustment daily based on a floating interest rate factor and would decrease in respect of certain fixed amounts specified in the agreement, such as anticipated dividends. 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 Earnings Per Share 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 Earnings Per Share 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. On September 18, 2020, the Company amended its forward sale agreements to extend the maturity date of such forward sales agreements from September 30, 2020 to September 10, 2021. On March 3, 2021, the Company cash settled a portion of the forward sale agreement for a payout of approximately $388,000 in lieu of the issuance of 727,272 common shares. On May 26, 2021, the Company cash settled the rest of the forward sale agreements for a payout of approximately $2.4 million in lieu of the issuance of 484,848 common shares. |
REPORTING SEGMENT AND OTHER OPE
REPORTING SEGMENT AND OTHER OPERATIONS DATA | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
REPORTING SEGMENT AND OTHER OPERATIONS DATA | 17. 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 business operations: Natural Gas Distribution consists of regulated energy and off-system, capacity and storage management operations; Clean Energy Ventures consists of capital investments in clean energy projects; Energy Services consists of unregulated wholesale and retail energy operations; Storage and Transportation 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 business operations is detailed below: (Thousands) Fiscal Years Ended September 30, 2022 2021 2020 Operating revenues Natural Gas Distribution External customers $ 1,127,417 $ 731,796 $ 729,923 Intercompany 1,350 — — Clean Energy Ventures External customers 128,280 95,275 102,617 Energy Services External customers (1) 1,529,178 1,228,846 1,029,303 Intercompany 94 (426) 1,116 Storage and Transportation External customers 65,286 49,252 42,015 Intercompany 2,449 1,768 2,713 Subtotal 2,854,054 2,106,511 1,907,687 Home Services and Other External customers 55,818 51,444 49,810 Intercompany 364 785 1,207 Eliminations (4,257) (2,127) (5,036) Total $ 2,905,979 $ 2,156,613 $ 1,953,668 Depreciation and amortization Natural Gas Distribution $ 94,579 $ 80,045 $ 71,883 Clean Energy Ventures 21,396 20,567 25,329 Energy Services (2) 148 111 123 Storage and Transportation 12,302 9,960 9,293 Subtotal 128,425 110,683 106,628 Home Services and Other 824 980 1,032 Eliminations — (276) (292) Total $ 129,249 $ 111,387 $ 107,368 Interest income (3) Natural Gas Distribution $ 895 $ 85 $ 538 Clean Energy Ventures — 241 240 Energy Services 16 11 99 Storage and Transportation 2,110 2,243 3,510 Subtotal 3,021 2,580 4,387 Home Services and Other 944 522 8,633 Eliminations (1,249) (935) (10,061) Total $ 2,716 $ 2,167 $ 2,959 (1) Includes sales to Canada for Energy Services, which are $2.4 million, $75,000 and $584,000 in the fiscal years ended September 30, 2022, 2021 and 2020, respectively. (2) The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Consolidated Statements of Operations. (3) Included in other income, net on the Consolidated Statements of Operations. (Thousands) Fiscal Years Ended September 30, 2022 2021 2020 Interest expense, net of capitalized interest Natural Gas Distribution $ 46,394 $ 36,405 $ 30,975 Clean Energy Ventures 21,968 22,548 20,253 Energy Services 4,725 2,204 3,276 Storage and Transportation 12,097 13,348 13,124 Subtotal 85,184 74,505 67,628 Home Services and Other 646 4,054 10,327 Eliminations — — (10,358) Total $ 85,830 $ 78,559 $ 67,597 Income tax provision (benefit) Natural Gas Distribution $ 40,141 $ 19,054 $ 27,021 Clean Energy Ventures 11,361 5,048 11,034 Energy Services 21,776 18,371 (3,615) Storage and Transportation 1,879 (10,043) 4,247 Subtotal 75,157 32,430 38,687 Home Services and Other 1,059 (196) (2,478) Eliminations (21) 1,052 285 Total $ 76,195 $ 33,286 $ 36,494 Equity in earnings (loss) of affiliates Storage and Transportation $ 9,865 $ (81,072) $ 15,903 Eliminations (1,688) (2,140) (1,592) Total $ 8,177 $ (83,212) $ 14,311 Net financial earnings (loss) Natural Gas Distribution $ 140,124 $ 107,375 $ 126,902 Clean Energy Ventures 39,403 16,789 22,111 Energy Services 39,121 71,117 (7,873) Storage and Transportation 22,454 13,046 18,311 Subtotal 241,102 208,327 159,451 Home Services and Other (781) (826) 5,784 Eliminations — 211 98 Total $ 240,321 $ 207,712 $ 165,333 Capital expenditures Natural Gas Distribution $ 298,374 $ 426,628 $ 290,040 Clean Energy Ventures 146,676 87,852 133,841 Storage and Transportation 151,988 107,500 20,998 Subtotal 597,038 621,980 444,879 Home Services and Other 1,390 2,630 3,230 Total $ 598,428 $ 624,610 $ 448,109 (Return of capital from) investments in equity investees Storage and Transportation $ (5,479) $ 690 $ 2,117 Total $ (5,479) $ 690 $ 2,117 The Company’s assets for the various reporting segments and other business operations are detailed below: (Thousands) 2022 2021 2020 Assets at end of period: Natural Gas Distribution $ 4,030,686 $ 3,707,461 $ 3,531,477 Clean Energy Ventures 1,015,065 914,788 814,277 Energy Services 333,064 365,423 244,836 Storage and Transportation 999,520 862,407 844,799 Subtotal 6,378,335 5,850,079 5,435,389 Home Services and Other 159,068 162,134 138,375 Intercompany assets (1) (275,987) (289,935) (257,287) Total $ 6,261,416 $ 5,722,278 $ 5,316,477 (1) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. The Chief Executive Officer, who uses NFE as a measure of profit or loss in measuring the results of the Company’s reporting segments and other business operations, is the chief operating decision maker of the Company. A reconciliation of consolidated NFE to consolidated net income is as follows: (Thousands) 2022 2021 2020 Net financial earnings $ 240,321 $ 207,712 $ 165,333 Less: Unrealized (gain) loss on derivative instruments and related transactions (59,906) 54,203 (9,644) Tax effect 14,248 (12,887) 2,296 Effects of economic hedging related to natural gas inventory 19,939 (42,405) 12,690 Tax effect (4,738) 10,078 (3,016) (Gain on) impairment of equity method investment (5,521) 92,000 — Tax effect 1,377 (11,167) — Net income $ 274,922 $ 117,890 $ 163,007 The Company uses derivative instruments as economic hedges of purchases and sales of physical natural 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 natural gas related to physical natural gas flow are recognized when the natural gas is delivered to customers. Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical natural gas flows. Timing differences occur in two ways: • unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical natural 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 natural 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 natural 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. 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 natural gas flows. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are considered unusual in nature and occur infrequently such that they are not indicative of the Company’s performance for our ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 18. RELATED PARTY TRANSACTIONS Effective April 1, 2020, NJNG entered into a 5-year agreement for 3 Bcf of firm storage capacity with Steckman Ridge, 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 an affiliated FERC-jurisdictional natural gas storage facility, Steckman Ridge. As of September 30, 2022, Energy Services has entered into transactions with Steckman Ridge for varying terms, all of which expire by March 31, 2024. Demand fees, net of eliminations, associated with Steckman Ridge during the fiscal years ended September 30, were as follows: (Thousands) 2022 2021 2020 Natural Gas Distribution $ 6,663 $ 6,449 $ 5,900 Energy Services 732 564 183 Total $ 7,395 $ 7,013 $ 6,083 The following table summarizes demand fees payable to Steckman Ridge as of September 30: (Thousands) 2022 2021 Natural Gas Distribution $ 775 $ 778 Energy Services 76 83 Total $ 851 $ 861 NJNG and Energy Services have entered into various AMAs, 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 September 30, 2022, NJNG and Energy Services had one AMA with an expiration date of March 31, 2023. NJNG has entered into a 5-year transportation precedent agreement with Adelphia Gateway for committed capacity of 130,000 Dths per day, which began on August 9, 2022. 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. In March 2021, NJNG and Clean Energy Ventures entered into a 15-year sublease and PPA agreement related to an onsite solar array and the related energy output at the Company’s headquarters in Wall, New Jersey, the effects of which are immaterial to the consolidated financial statements. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation. In June 2022, NJNG and Clean Energy Ventures entered into a 20-year sublease and PPA agreement related to an onsite solar array and the related energy output at the Company’s LNG plant in Howell, New Jersey, the effects of which are immaterial to the consolidated financial statements. NJNG entered into a 15-year transportation precedent agreement with Adelphia Gateway for committed capacity of 130,000 Dth per day, beginning November 1, 2023; however, the agreement term will automatically be reduced to 7 years if Transco has not placed its Regional Energy Access Expansion project into service by October 31, 2030. The intercompany profit for certain transactions between NJNG and Energy Services and NJNG and Adelphia Gateway is not eliminated in accordance with ASC 980, Regulated Operations. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Sep. 30, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED SEPTEMBER 30, 2022, 2021 and 2020 (Thousands) ADDITIONS CLASSIFICATION BEGINNING CHARGED TO OTHER ENDING BALANCE 2022 Valuation allowance for deferred tax assets $ 23,613 (1,372) — $ 22,241 Allowance for doubtful accounts $ 24,652 2,401 (7,674) (1) $ 19,379 2021 Valuation allowance for deferred tax assets $ 17,639 6,355 (381) $ 23,613 Allowance for doubtful accounts $ 7,242 18,986 (1,576) (1) $ 24,652 2020 Valuation allowance for deferred tax assets $ 4,035 15,869 (2,265) $ 17,639 Allowance for doubtful accounts $ 6,148 2,238 (1,144) (1) $ 7,242 (1) Uncollectible accounts written off, less recoveries and adjustments. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Other financial investments or contractual interests that lack the characteristics of a voting interest entity, which are commonly referred to as variable interest entities, are evaluated by the Company to determine if the entity has the power to direct business activities and, therefore, would be considered a controlling interest that the Company would have to consolidate. Based on those evaluations, NJR has determined that it does not have any investments in variable interest entities as of September 30, 2022, 2021 and 2020. Investments in entities over which the Company does not have a controlling financial interest are accounted for either under the equity method or cost method of accounting. |
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 periodically as required. 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. 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 U.S. The Company’s 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 September 30, 2022. The Company continues to closely monitor developments related to the COVID-19 pandemic and has, when appropriate, taken steps to ensure business continuity in the safe operation of its business. These steps include working from home for office-based employees utilizing a hybrid schedule, limiting direct contact with customers and suspending late payment fees for utility customers. While the Company and many businesses generally have returned to normal operating practices, this remains an evolving situation. The timing for recovery of businesses and local economies, resurgences or mutations of the virus, and any potential future shutdowns remains unknown. Throughout the COVID-19 pandemic, the Company has continued to provide essential services to our customers. Both the Company and NJNG continue to have sufficient liquidity to meet their current obligations and business operations remain fundamentally unchanged at this time. The Company will continue to monitor developments affecting its employees, customers, and operations and take additional steps to address the COVID-19 pandemic and its impacts, as necessary. 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 September 30, 2022. |
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 data 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 natural 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 natural 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. The Clean Energy Act of 2018 established guidelines for the closure of the SREC registration program to new applicants in New Jersey. The SREC program officially closed to new qualified solar projects on April 30, 2020. In December 2019, the BPU established the TREC as the successor to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined. All TRECs generated are required to be purchased monthly by a TREC program administrator as appointed by the BPU. TREC revenue is recognized when TRECs are generated and are transferred monthly based upon metered solar electricity activity. 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. Energy Services also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues. During December 2020, Energy Services entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts, which commenced on November 1, 2021. The AMAs include a series of temporary and permanent releases, and revenue under these agreements is recognized as the performance obligations are satisfied. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed-upon term. For permanent releases of pipeline capacity, which represent a transfer of contractual rights for such capacity, revenue is recognized upon the transfer of the underlying contractual rights. Energy Services recognized $53.0 million of operating revenue on the Consolidated Statements of Operations during fiscal 2022. Amounts received in excess of revenue recognized totaling $33.8 million are included in deferred revenue on the Consolidated Balance Sheets as of September 30, 2022. Storage and Transportation 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. |
Natural Gas Purchases | Natural Gas Purchases NJNG’s tariff includes a component for BGSS, which is designed to allow it to recover the cost of natural gas through rates charged to its customers and is typically revised on an annual basis. As part of computing its BGSS rate, NJNG projects its cost of natural gas, net of supplier refunds, the impact of hedging activities and cost savings created by BGSS incentive programs. NJNG subsequently recovers or credits the difference, if any, of actual costs compared with those included in current rates. Any underrecoveries or overrecoveries are either credited to customers or deferred and, subject to BPU approval, reflected in the BGSS rates in subsequent years. Natural gas purchases at Energy Services are composed of natural gas costs to be paid upon completion of a variety of transactions, as well as realized gains and losses from settled derivative instruments and unrealized gains and losses on the change in fair value of derivative instruments that have not yet settled. Changes in the fair value of derivatives that economically hedge the forecasted purchases of natural gas are recognized in natural gas purchases as they occur. |
Demand Fees | Demand Fees For the purpose of securing storage and pipeline capacity in support of their respective businesses, Energy Services and Natural Gas Distribution enter into storage and pipeline capacity contracts, which require the payment of associated demand fees and charges that allow them access to a high priority of service in order to maintain the ability to access storage or pipeline capacity during a fixed time period, which generally ranges from one The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of natural gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30: (Millions) 2022 2021 2020 Energy Services $ 95.4 $ 120.5 $ 121.8 Natural Gas Distribution 170.3 123.2 131.9 Total $ 265.7 $ 243.7 $ 253.7 Energy Services expenses demand charges over the term of the service being provided. Natural Gas Distribution’s costs associated with demand charges are included in its weighted average cost of natural gas. The demand charges are expensed based on NJNG’s BGSS sales and recovered as part of the natural gas commodity component of its BGSS tariff. |
Operations and Maintenance Expenses | Operations and Maintenance Expenses Operations and maintenance expenses include operations and maintenance salaries and benefits, materials and supplies, usage of vehicles, tools and equipment, payments to contractors, utility plant maintenance, amortization of software costs for unregulated entities, customer service, professional fees and other outside services, insurance expense, accretion of cost of removal for future retirements of utility assets and other administrative expenses and are expensed as incurred. |
Stock Based Compensation | Stock-Based CompensationStock-based compensation represents costs related to stock-based awards granted to employees and members of NJR’s Board of Directors. NJR recognizes stock-based compensation based upon the estimated fair value of awards. The recognition period for these costs begins at either the applicable service inception date or grant date and continues throughout the requisite service period. The related compensation cost is recognized as O&M expense on the Consolidated Statements of Operations. |
Income Taxes | Income Taxes The Company computes income taxes using the asset and liability method, whereby deferred income taxes are generally determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. See Note 13. Income Taxes. In addition, the Company evaluates its tax positions to determine the appropriate accounting and recognition of future obligations associated with unrecognized tax benefits. To the extent that NJNG invests in property that qualifies for ITCs, the ITC is deferred and amortized to income over the life of the equipment in accordance with regulatory treatment. ITCs at the unregulated subsidiaries of NJR are recorded on the balance sheet as a reduction to property, plant and equipment when the property is placed in service, and recognized in earnings as a reduction of depreciation expense over the useful lives of the related assets. Projects placed in service through December 31, 2019, qualified for a 30 percent federal ITC. The ITC declined to 26 percent for property under construction before December 31, 2020. The Consolidated Appropriations Act of 2021 extended the 26 percent ITC for property under construction during 2021 and 2022. On August 16, 2022, the President of the U.S. signed the Inflation Reduction Act, which raised the ITC from 26 percent to 30 percent for property under construction through the end of 2032, dropping to 26 percent for property under construction before the end of 2033 and to 22 percent for property under construction before the end of 2034. The ITC expires starting in 2035 unless it is renewed. |
Investments in Equity Investees | Investments in Equity Investees The Company accounts for its investments in Steckman Ridge and PennEast using the equity method of accounting where it is not the primary beneficiary, as defined under ASC 810, Consolidation ; its respective ownership interests are 50 percent or less and/or it has significant influence over operating and management decisions. The Company’s share of earnings is recognized as equity in earnings of affiliates on the Consolidated Statements of Operations. Equity method investments are reviewed for impairment when changes in facts and circumstances indicate that the current fair value may be less than the asset’s carrying amount. If the Company determines the decline in the value of its equity method investment is other than temporary, an impairment charge is recorded in an amount equal to the excess of the carrying value of the asset over its fair value. See Note 7. Investments in Equity Investees for more information regarding impairments. |
Property Plant and Equipment | Property Plant and Equipment Property, plant and equipment is stated at original cost. Costs include direct labor, materials and third-party construction contractor costs, capitalized interest and certain indirect costs related to equipment and employees engaged in construction. Utility plant and nonutility plant for Adelphia Gateway also includes AFUDC. Upon retirement, the cost of depreciable property, plus removal costs less salvage, is charged to accumulated depreciation with no gain or loss recorded. |
Capitalized and Deferred Interest | Capitalized and Deferred Interest NJNG’s base rates include the ability to recover AFUDC on its construction work in progress. For all NJNG construction projects, an incremental cost of equity is recoverable during periods when NJNG’s short-term debt balances are lower than its construction work in progress. For more information on AFUDC treatment with respect to certain accelerated infrastructure projects, see Note 4. Regulation - Infrastructure Programs. Capitalized amounts associated with the debt and equity components of NJNG’s AFUDC are recorded in utility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component are recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations. Adelphia Gateway’s base rates include the ability to recover AFUDC on its construction work in progress. Beginning in the fourth quarter of fiscal 2020, capitalized amounts associated with Adelphia Gateway’s AFUDC are recorded in nonutility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component are recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations. |
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, which are recorded in other noncurrent assets on the Consolidated Balance Sheets. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company segregates financial assets, primarily trade receivables and unbilled revenues due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations and macroeconomic factors, such as unemployment rates among others, including the estimated impact of the ongoing pandemic on the outstanding balances. During fiscal 2022, the Company deferred a portion of costs incurred related to bad debt for NJNG associated with customer accounts receivable as a regulatory asset resulting from the impacts of the ongoing COVID-19 pandemic. See Note 4. Regulation for additional information. |
Loans Receivable | Loans ReceivableNJNG currently provides loans, with terms ranging from 2 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 Consolidated Balance Sheets. |
Regulatory Assets & Liabilities | Regulatory Assets & Liabilities Under cost-based regulation, regulated utility enterprises generally are permitted to recover their operating expenses and earn a reasonable rate of return on their utility investment. Natural Gas Distribution maintains its accounts in accordance with the FERC Uniform System of Accounts as prescribed by the BPU and in accordance with ASC 980, Regulated Operations . As a result of the impact of the ratemaking process and regulatory actions of the BPU, NJNG is required to recognize the economic effects of rate regulation. Accordingly, NJNG capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 4. Regulation for a more detailed description of NJNG’s regulatory assets and liabilities. Adelphia Gateway capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 4. Regulation for a more detailed description of Adelphia Gateway’s regulatory assets and liabilities. |
Natural Gas in Storage | Natural Gas in StorageNatural gas in storage is reflected at average cost on the Consolidated Balance Sheets and represents natural gas and LNG that will be utilized in the ordinary course of business. |
Derivative Instruments | Derivative Instruments The Company accounts for its financial instruments, such as futures, options, foreign exchange contracts and interest rate contracts, as well as its physical commodity contracts related to the purchase and sale of natural gas at Energy Services, as derivatives, and therefore recognizes them at fair value on the Consolidated Balance Sheets. The Company’s unregulated subsidiaries record changes in the fair value of their financial commodity derivatives in natural gas purchases and changes in the fair value of their physical forward contracts in natural gas purchases or operating revenues, as appropriate, on the Consolidated Statements of Operations. Ineffective portions of the cash flow hedges are recognized immediately in earnings. ASC 815, Derivatives and Hedging also provides for a NPNS scope exception for qualifying physical commodity contracts for which physical delivery is probable and the quantities delivered are expected to be used or sold over a reasonable period of time in the normal course of business. Effective January 1, 2016, the Company prospectively applies this normal scope exception on a case-by-case basis to physical commodity contracts at NJNG and PPAs at Clean Energy Ventures. When applied, it does not account for these contracts until the contract settles and the related underlying natural gas or power is delivered. Gains and/or losses on NJNG’s derivatives used to economically hedge its regulated natural gas supply obligations, as well as its exposure to interest rate variability, are recoverable through its BGSS, a component of its tariff. Accordingly, the offset to the change in fair value of these derivatives is recorded as a regulatory asset or liability on the Consolidated Balance Sheets. See Note 5. Derivative Instruments for additional details regarding natural gas trading and hedging activities. Fair values of exchange-traded instruments, including futures and swaps, are based on unadjusted, quoted prices in active markets. The Company’s non-exchange-traded financial instruments, foreign currency derivatives, over-the-counter physical commodity contracts at Energy Services and interest rate contracts are valued using observable, quoted prices for similar or identical assets when available. In establishing the fair value of contracts for which a quoted basis price is not available at the measurement date, management utilizes available market data and pricing models to estimate fair values. Fair values are subject to change in the near term and reflect management’s best estimate based on a variety of factors. Estimating fair values of instruments that do not have quoted market prices requires management’s judgment in determining amounts that could reasonably be expected to be received from, or paid to, a third party in settlement of the instruments. These amounts could be materially different from amounts that might be realized in an actual sale transaction. The Company is subject 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 natural 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, unless the Company elects NPNS, which is done on a contract-by-contract election. Accordingly, all of the financial and certain of the Company’s physical derivative instruments are recorded at fair value on the Consolidated Balance Sheets. For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the Company’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 natural gas purchases or operating revenues, as appropriate for Energy Services, on the 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 natural 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 natural 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 natural 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 natural gas is expected to occur and is considered a derivative transaction that is recorded at fair value on the Consolidated Balance Sheets, with changes in value recognized in current-period earnings. 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 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 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 a portfolio basis. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect to treat certain contracts as 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 natural gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Consolidated Balance Sheets. Clean Energy Ventures The Company elects NPNS accounting treatment on PPA contracts executed by Clean Energy Ventures 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 to treat certain contracts as normal. |
Software Costs | Software CostsThe 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. |
Intangible Assets and Long-Lived Assets | Intangible Assets Finite-lived intangible assets are stated at cost less accumulated amortization. The Company amortizes intangible assets based upon the pattern in which the economic benefits are consumed over the life of the asset unless a pattern cannot be reliably determined, in which case the Company uses a straight-line amortization method. As of September 30, 2022, intangible assets consist primarily of acquired wholesale natural gas energy contracts totaling $2.3 million. The wholesale natural gas contracts are being amortized based upon expected cash flows over the respective terms of the agreements. The estimated future amortization expense as of September 30, is as follows: (Thousands) 2023 $ 2,271 2024 $ 77 2025 $ — 2026 $ — 2027 $ — Long-lived Assets The Company reviews the recoverability of long-lived assets and finite-lived intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable, such as significant adverse changes in regulation, business climate or market conditions, including prolonged periods of adverse commodity and capacity prices. If there are changes indicating that the carrying value of such assets may not be recoverable, an undiscounted cash flows test is performed. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recognized by reducing the recorded value of the asset to its fair value. Factors that the Company analyzes in determining whether an impairment in its long-lived assets exists include: a significant decrease in the market price of a long-lived asset; a significant adverse change in the extent in which a long-lived asset is being used in its physical condition; legal proceedings or other contributing factors; significant business climate changes; accumulations of costs in significant excess of the amounts expected; a current-period operating or cash flow loss combined with a history of such events; and current expectations that more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its estimated useful life. During fiscal 2022 and 2021, there were no events or circumstances that indicated that the carrying value of long-lived assets or finite-lived intangibles was not recoverable. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs are capitalized and amortized as interest expense on a basis which approximates the effective interest method over the term of the related debt. Debt issuance costs are presented as a direct deduction from the carrying amount of the related debt. See Note 9. Debt for the total unamortized debt issuance costs that are recorded as a reduction to long-term debt on the Consolidated Balance Sheets. |
Sale Leasebacks | Sale Leasebacks NJNG utilizes sale leaseback arrangements as a financing mechanism to fund certain of its capital expenditures related to natural gas meters, whereby the physical asset is sold concurrent with an agreement to lease the asset back. These agreements include options to renew the lease or repurchase the asset at the end of the term. Proceeds from sale leaseback transactions are accounted for as financing arrangements and are included in long-term debt on the Consolidated Balance Sheets. During fiscal 2022 and 2020, NJNG received $17.3 million and $4.0 million, respectively, in connection with the sale leaseback of its natural gas meters with terms ranging from seven In addition, for certain of its commercial solar energy projects, the Company enters into lease agreements that provide for the sale of commercial solar energy assets to third parties and the concurrent leaseback of the assets. For sale leaseback transactions where the Company has concluded that the arrangement does not qualify as a sale as the Company retains control of the underlying assets, the Company uses the financing method to account for the transaction. Under the financing method, the Company recognizes the proceeds received from the buyer-lessor that constitute a payment to acquire the solar energy asset as a financing arrangement, which is recorded as a component of debt on the Consolidated Balance Sheets. During fiscal 2022, 2021, and 2020, Clean Energy Ventures received proceeds of $24.1 million, $17.7 million and $42.9 million, respectively, in connection with sale leasebacks of commercial solar assets. The proceeds received were recognized as a financing obligation on the Consolidated Balance Sheets. Clean Energy Ventures simultaneously entered into agreements to lease the assets back over a term of five |
Environmental Contingencies | Environmental Contingencies Loss contingencies are recorded as liabilities when it is probable a liability has been incurred and the amount of the loss is reasonably estimable in accordance with accounting standards for contingencies. Estimating probable losses requires an analysis of uncertainties that often depend upon judgments about potential actions by third parties. Accruals for loss contingencies are recorded based on an analysis of potential results. With respect to environmental liabilities and related costs, NJNG periodically, and at least annually, performs an environmental review of MGP sites, including a review of potential liability for investigation and remedial action. 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. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and any insurance recoveries. NJNG will continue to seek recovery of MGP-related costs through the 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. See Note 15. Commitments and Contingent Liabilities for more details. |
Pension and Postemployment Plans | Pension and Postemployment Plans The Company has two noncontributory defined pension plans covering eligible employees, including officers. Benefits are based on each employee’s years of service and compensation. The Company’s funding policy is to contribute annually to these plans at least the minimum amount required under the Employee Retirement Income Security Act, as amended, and not more than can be deducted for federal income tax purposes. Plan assets consist of equity securities, fixed-income securities and short-term investments. The Company did not make any discretionary contributions to the pension plans during fiscal 2022 and 2021. |
Asset Retirement Obligations | Asset Retirement Obligations The Company recognizes ARO related to the costs associated with cutting and capping NJNG’s main and service natural gas distribution mains, which is required by New Jersey law when taking such natural gas distribution mains out of service. The Company also recognizes ARO associated with Clean Energy Ventures’ solar assets when there are decommissioning provisions in lease agreements that require removal of the asset at the end of the lease term. ARO 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 discounted fair value is recognized as an ARO liability with a corresponding amount capitalized as part of the carrying cost of the underlying asset. The obligation is subsequently accreted to the future value of the expected retirement cost, and the corresponding asset retirement cost is depreciated over the life of the related asset. Accretion expense associated with Clean Energy Ventures’ ARO is recognized as a component of operations and maintenance expense on the Consolidated Statements of Operations. Accretion amounts associated with NJNG’s ARO are recognized as part of its depreciation expense, and the corresponding regulatory asset and liability will be shown gross on the Consolidated Balance Sheets. Estimating future removal costs requires management to make significant judgments because most of the removal obligations span long time frames and removal may be conditioned upon future events. Asset removal technologies are also constantly changing, which makes it difficult to estimate removal costs. Accordingly, inherent in the estimate of ARO are various assumptions including the ultimate settlement date, expected cash outflows, inflation rates, credit-adjusted risk-free rates and consideration of potential outcomes where settlement of the ARO can be conditioned upon events. In the latter case, the Company develops possible retirement scenarios and assigns probabilities based on management’s reasonable judgment and knowledge of industry practice. Accordingly, ARO are subject to change. |
Foreign Currency Transactions | Foreign Currency Transactions The market area of Energy Services includes Canadian delivery points and, as a result, Energy Services incurs certain natural gas commodity costs and demand fees denominated in Canadian dollars. Gains or losses that occur as a result of these foreign currency transactions are reported as a component of natural gas purchases on the Consolidated Statements of Operations. Gains and losses recognized for the fiscal years ended September 30, 2022, 2021 and 2020, are considered immaterial. |
Recently Adopted Updates to the Accounting Standards Codification | Recently Adopted Updates to the Accounting Standards Codification Income Taxes In December 2019, the FASB issued ASU No. 2019-12, an amendment to ASC 740, Income Taxes , which simplifies the accounting for income taxes and changes the accounting for certain income tax transactions, among other minor improvements. The Company adopted this guidance on October 1, 2021, and applied it on a prospective basis. The amendments in this update were either not applicable, currently applied, or did not have a material impact on the Company’s financial position, results of operations, cash flows or disclosures upon adoption. Investments - Equity Securities, Investments - Equity Method and Joint Ventures and Derivatives and Hedging In January 2020, the FASB issued ASU No. 2020-01, an amendment to ASC 321, Investments - Equity Securities, ASC 323 , Investments - Equity Method and Joint Ventures, and ASC 815 , Derivatives and Hedging, which clarifies the interactions between the three ASU topics. The update requires an entity 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 Company adopted this guidance on October 1, 2021, and applied it on a prospective basis. There was no material impact on the Company’s financial position, results of operations, cash flows or disclosures upon adoption. Other In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements , which clarifies application of various provisions in the ASC by amending and adding new headings, cross-referencing to other guidance, and refining or correcting terminology. It also improves the consistency by amending the ASC to include all disclosure guidance in the appropriate section. The Company adopted this guidance on October 1, 2021, and applied it on a prospective basis. There was no material impact on the Company’s financial position, results of operations, cash flows or disclosures upon adoption. Other Recent Updates to the Accounting Standards Codification Debt and Other In August 2020, the FASB issued ASU No. 2020-06, an amendment to ASC 470, Debt , and ASC 815, Derivatives and Hedging , which changes the accounting for convertible instruments by reducing the number of acceptable accounting models to three models including, the embedded derivative, substantial premium, and traditional no-proceeds-allocated models. The guidance is effective for the Company beginning October 1, 2022, and the Company can elect to apply it on either a modified or a full retrospective basis. The Company does not currently have convertible debt instruments and thus does not expect the amendments to have an impact on its financial position, results of operations, cash flows and disclosures upon adoption. In May 2021, the FASB issued ASU No. 2021-04, an amendment to ASC 470, Debt , ASC 260, Earnings per Share , ASC 718, Stock Compensation , and ASC 815, Derivatives and Hedging. The update impacts equity-classified written call options that remain equity-classified after a modification or exchange. The guidance is effective for the Company beginning October 1, 2022, and will be applied on a prospective basis. The Company does not currently have equity-classified written call options and thus does not expect the amendments to have an impact on its financial position, results of operations, cash flows and disclosures upon adoption. Leases In July 2021, the FASB issued ASU No. 2021-05, an amendment to ASC 842, Leases , which requires a lessor to classify a lease with entirely or partially variable payments that do not depend on an index or rate as an operating lease if another classification, including sales-type or direct financing, would trigger a loss at the lease commencement date. The guidance is effective for the Company beginning October 1, 2022, and the Company has elected to apply it on a prospective basis. The Company expects the amendments to have an immaterial impact on its financial position, results of operations, cash flows and disclosures upon adoption. Business Combinations In October 2021, the FASB issued ASU No. 2021-08, an amendment to ASC 805, Business Combinations , which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers . The guidance is effective for the Company beginning October 1, 2023, and will be applied on a prospective basis to new acquisitions following the date of adoption. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations, cash flows and disclosures upon adoption. Derivatives and Hedging In March 2022, the FASB issued ASU No. 2022-01, an amendment to ASC 815, Derivatives and Hedging , which addresses fair value hedge accounting of interest rate risk for portfolios of financial assets. This update further clarifies guidance previously released in ASU 2017-12 which established the “last-of-layer” method and this update renames that method as the “portfolio layer” method. The guidance is effective for the Company beginning October 1, 2023, and the transition method can be on a prospective basis for a multiple-layer hedging strategy or a modified retrospective basis for a portfolio layer method. The Company does not currently apply hedge accounting to any of its risk management activities and thus does not expect the amendment to have an impact on its financial position, results of operations, cash flows and disclosures upon adoption. Financial Instruments In March 2022, the FASB issued ASU No. 2022-02, an amendment to ASC 326, Financial Instruments - Credit Losses , which eliminates the accounting guidance for creditors in troubled debt restructuring. It also aligns conflicting disclosure requirement guidance in ASC 326 by requiring disclosure of current-period gross write-offs by year of origination. The amendment also adds new disclosures for creditors with loan refinancing and restructuring for borrowers experiencing financial difficulty. The guidance is effective for the Company beginning October 1, 2023, and the Company can elect to apply it either on a modified retrospective or prospective basis. At this time, the Company has not experienced a troubled debt restructuring and thus does not expect the amendments to have an impact on its financial position, results of operations and cash flows upon adoption. The Company is currently evaluating the amendments to understand the impact on its disclosures upon adoption. Fair Value Measurement In June 2022, the FASB issued ASU No. 2022-03, an amendment to ASC 820, Fair Value Measurement. The amendment clarifies the fair value principles when measuring the fair value of an equity security subject to a contractual sale restriction. The guidance is effective for the Company on October 1, 2024, its first fiscal year beginning after December 15, 2023, and will be applied on a prospective basis, if applicable. At this time, the Company does not have equity securities subject to contractual sale restrictions, and therefore these amendments would only impact the Company if, in the future, it entered into such transactions. |
Fair Value Hierarchy | Fair Value Hierarchy The Company 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 includes the following: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets. The Company’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 the Company refers to internally as basis swaps, fixed swaps, futures and financial options that are cleared through an 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. The Company’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). 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 the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies. Financial derivative portfolios of NJNG and Energy Services consist mainly of futures, options and swaps. The Company primarily uses the market approach, and its policy is to use actively quoted market prices when available. The principal market for its derivative transactions is the natural gas wholesale market; therefore, the primary sources for its price inputs are CME, NYMEX and ICE. Energy Services uses Platts and Natural Gas Exchange for Canadian delivery points. However, Energy Services also engages in transactions that result in transporting natural gas to delivery points for which there is no actively quoted market price. In most instances, the transportation cost to the final delivery location is not significant to the overall valuation. If required, Energy Services’ policy is to use the best information available to determine fair value based on internal pricing models, which would include estimates extrapolated from broker quotes or other pricing services. |
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. After the criteria is satisfied, the Company accounts for these arrangements as 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. 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. The 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 natural gas stored in the storage caverns. Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five two seven 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 considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Demand Charges | The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of natural gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30: (Millions) 2022 2021 2020 Energy Services $ 95.4 $ 120.5 $ 121.8 Natural Gas Distribution 170.3 123.2 131.9 Total $ 265.7 $ 243.7 $ 253.7 |
Schedule of Property, Plant and Equipment | Property, plant and equipment was comprised of the following as of September 30: (Thousands) Estimated Property Classifications Useful Lives 2022 2021 Distribution facilities 10 to 54 years $ 2,797,936 $ 2,558,651 Transmission facilities 28 to 42 years 649,241 643,942 Storage facilities 35 to 86 years 85,449 79,892 Solar property 20 to 35 years 710,224 675,376 Storage and transportation property 5 to 50 years 850,186 433,678 All other property 5 to 40 years 60,914 57,968 Construction work in progress 361,766 547,542 Total property, plant and equipment 5,515,716 4,997,049 Accumulated depreciation and amortization (865,790) (783,536) Property, plant and equipment, net $ 4,649,926 $ 4,213,513 |
Schedule of Capitalized Amounts Associated with Debt and Equity Component of AFUDC | Capitalized and deferred interest include the following for the fiscal years ended September 30: ($ in thousands) 2022 2021 2020 AFUDC: NJNG Adelphia Gateway NJNG Adelphia Gateway NJNG Adelphia Gateway Debt $ 1,648 $ 4,019 $ 5,648 $ 2,101 $ 5,134 $ 1,394 Equity 4,169 7,074 16,605 3,698 14,599 2,454 Total $ 5,817 $ 11,093 $ 22,253 $ 5,799 $ 19,733 $ 3,848 Weighted average interest rate 4.91 % 8.28 % 5.97 % 8.28 % 6.79 % 8.28 % |
Schedule of Restricted Cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the total amounts in the Consolidated Statements of Cash Flows, as of September 30: (Thousands) 2022 2021 2020 Balance Sheet Cash and cash equivalents $ 1,107 $ 4,749 $ 117,012 Restricted cash in other noncurrent assets $ 345 $ 1,294 $ 2,411 Statements of Cash Flow Cash, cash equivalents and restricted cash $ 1,452 $ 6,043 $ 119,423 |
Schedule of Gas in Storage | The following table summarizes natural gas in storage, at average cost by company, as of September 30: 2022 2021 ($ in thousands) Natural Gas in Storage Bcf Natural Gas in Storage Bcf Natural Gas Distribution $ 191,175 29.0 $ 115,824 27.6 Energy Services 82,469 10.8 77,782 18.8 Total $ 273,644 39.8 $ 193,606 46.4 |
Schedule of Software Costs Included in the Consolidated Financial Statements | The following table presents the software costs included in the Consolidated Financial Statements, as of September 30: (Thousands) 2022 2021 Balance Sheets Utility plant, at cost $ 40,437 $ 16,543 Construction work in progress $ 14,381 $ 7,801 Nonutility plant and equipment, at cost $ 344 $ 338 Construction work in progress $ — $ 8 Accumulated depreciation and amortization, utility plant $ (3,361) $ (1,333) Accumulated depreciation and amortization, nonutility plant and equipment $ (25) $ (29) Software costs $ 6,120 $ 5,582 Statements of Operations Operation and maintenance (1) $ 11,141 $ 9,141 Depreciation and amortization $ 2,024 $ 1,078 (1) During fiscal 2022 and 2021, $452,000 and 447,000, respectively, was amortized from software costs into O&M. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense as of September 30, is as follows: (Thousands) 2023 $ 2,271 2024 $ 77 2025 $ — 2026 $ — 2027 $ — |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects, as of September 30: (Thousands) Cash Flow Hedges Postemployment Benefit Obligation Total Balance at September 30, 2020 $ (10,397) $ (33,918) $ (44,315) Other comprehensive income, net of tax Other comprehensive income, before reclassifications, net of tax of $0, $(1,618) and $(1,618), respectively — 5,494 5,494 Amounts reclassified from accumulated other comprehensive income, net of tax of $(350), $(957) and $(1,307), respectively 1,021 3,272 (1) 4,293 Net current-period other comprehensive income, net of tax of $(350), $(2,575) and $(2,925), respectively 1,021 8,766 9,787 Balance at September 30, 2021 $ (9,376) $ (25,152) $ (34,528) Other comprehensive income, net of tax Other comprehensive income, before reclassifications, net of tax of $0, $(7,727) and $(7,727), respectively — 25,580 25,580 Amounts reclassified from accumulated other comprehensive income, net of tax of $(317), $(930) and $(1,247), respectively 1,054 3,068 (1) 4,122 Net current-period other comprehensive income, net of tax of $(317), $(8,657) and $(8,974), respectively 1,054 28,648 29,702 Balance at September 30, 2022 $ (8,322) $ 3,496 $ (4,826) (1) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Consolidated Statements of Operations. For more details, see Note 11. Employee Benefit Plans. |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
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/ Operations 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 natural 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 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. Revenue is recognized as invoiced and the payment is due each month for the previous month’s services. Revenue Recognized Over Time (continued): Segment/ Operations Performance Obligation Description 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. Clean Energy Ventures Transition renewable energy certificates Clean Energy Ventures generates TRECs, which are created for every MWh of electricity produced by a solar generator. The performance obligation of Clean Energy Ventures is to generate electricity and TRECs, which are purchased monthly by a REC Administrator. Revenue is recognized upon generation. 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 in line with the terms of the contract and based on the services provided. Payment is due upon receipt of the invoice. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term. Storage and Transportation Natural gas services The performance obligation of Storage and Transportation is to provide the customer with storage and transportation services. Storage and Transportation generates revenues from firm storage contracts and transportation contracts, injection and withdrawal at the storage facility and the delivery of natural gas to customers. Revenue is recognized over time as customers receive the benefits of its 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. NJR Retail enters into warranty contracts with homeowners for various appliances. 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: Energy Services Natural gas services For a permanent release of pipeline capacity, the performance obligation of Energy Services is the release of the pipeline capacity associated with certain natural gas transportation contracts and the transfer of the underlying contractual rights to the counterparty. Revenue is recognized upon the transfer of the underlying contractual rights. Storage and Transportation Natural gas services The performance obligation of Storage and Transportation is to provide the customer with storage and transportation services. Storage and Transportation generates revenues from usage fees and hub services for the use of storage space, injection and withdrawal from the storage facility. Hub services include park and loan transactions and wheeling. Usage fees and hub services revenues are recognized as services are performed. Home Services and Other Installations Home Services installs appliances, including but not limited to furnaces, air conditioning units, boilers and generators, for customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. The transaction price for each installation differs accordingly. Revenue is recognized at a point in time upon completion of the installation, which is when the customer is billed. |
Disaggregation of Revenue | Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during fiscal 2022, 2021 and 2020 are as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total 2022 Natural gas utility sales (1) $ 951,626 — — — — $ 951,626 Natural gas services — — 83,801 67,735 — 151,536 Service contracts — — — — 33,932 33,932 Installations and maintenance — — — — 22,250 22,250 Renewable energy certificates — 5,487 — — — 5,487 Electricity sales — 38,317 — — — 38,317 Eliminations (1) (1,350) — — (2,449) (364) (4,163) Revenues from contracts with customers 950,276 43,804 83,801 65,286 55,818 1,198,985 Alternative revenue programs (3) 11,259 — — — — 11,259 Derivative instruments 165,882 84,476 (4) 1,445,471 — — 1,695,829 Eliminations (2) — — (94) — — (94) Revenues out of scope 177,141 84,476 1,445,377 — — 1,706,994 Total operating revenues $ 1,127,417 128,280 1,529,178 65,286 55,818 $ 2,905,979 2021 Natural gas utility sales (1) $ 694,635 — — — — $ 694,635 Natural gas services — — 26,933 51,020 — 77,953 Service contracts — — — — 33,250 33,250 Installations and maintenance — — — — 18,979 18,979 Renewable energy certificates — 4,571 — — — 4,571 Electricity sales — 25,270 — — — 25,270 Eliminations (2) — — — (1,768) (785) (2,553) Revenues from contracts with customers 694,635 29,841 26,933 49,252 51,444 852,105 Alternative revenue programs (3) (7,282) — — — — (7,282) Derivative instruments 44,443 65,434 (4) 1,201,487 — — 1,311,364 Eliminations (2) — — 426 — — 426 Revenues out of scope 37,161 65,434 1,201,913 — — 1,304,508 Total operating revenues $ 731,796 95,275 1,228,846 49,252 51,444 $ 2,156,613 2020 Natural gas utility sales $ 695,858 — — — — 695,858 Natural gas services — — 24,511 44,728 — 69,239 Service contracts — — — — 32,455 32,455 Installations and maintenance — — — — 18,562 18,562 Renewable energy certificates — 1,384 — — — 1,384 Electricity sales — 20,099 — — — 20,099 Eliminations (2) — — — (2,713) (1,207) (3,920) Revenues from contracts with customers 695,858 21,483 24,511 42,015 49,810 833,677 Alternative revenue programs (3) 15,750 — — — — 15,750 Derivative instruments 18,315 81,134 (4) 1,005,908 — — 1,105,357 Eliminations (2) — — (1,116) — — (1,116) Revenues out of scope 34,065 81,134 1,004,792 — — 1,119,991 Total operating revenues $ 729,923 102,617 1,029,303 42,015 49,810 1,953,668 (1) Includes building rent related to the Wall headquarters, which is eliminated in consolidation. (2) Consists of transactions between subsidiaries that are eliminated in consolidation. (3) Includes CIP revenue. (4) Includes SREC revenue. Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the fiscal years ended September 30, are as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total 2022 Residential $ 586,678 12,579 — — 55,629 $ 654,886 Commercial and industrial 265,970 31,225 83,801 65,286 189 446,471 Firm transportation 92,531 — — — — 92,531 Interruptible and off-tariff 5,097 — — — — 5,097 Revenues out of scope 177,141 84,476 1,445,377 — — 1,706,994 Total operating revenues $ 1,127,417 128,280 1,529,178 65,286 55,818 $ 2,905,979 2021 Residential $ 487,018 11,319 — — 50,689 $ 549,026 Commercial and industrial 124,519 18,522 26,933 49,252 755 219,981 Firm transportation 79,256 — — — — 79,256 Interruptible and off-tariff 3,842 — — — — 3,842 Revenues out of scope 37,161 65,434 1,201,913 — — 1,304,508 Total operating revenues $ 731,796 95,275 1,228,846 49,252 51,444 $ 2,156,613 2020 Residential $ 490,233 10,233 — — 48,867 $ 549,333 Commercial and industrial 129,946 11,250 24,511 42,015 943 208,665 Firm transportation 69,357 — — — — 69,357 Interruptible and off-tariff 6,322 — — — — 6,322 Revenues out of scope 34,065 81,134 1,004,792 — — 1,119,991 Total operating revenues $ 729,923 102,617 1,029,303 42,015 49,810 $ 1,953,668 |
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 Consolidated Balance Sheets are as follows: Customer Accounts Receivable Customers' Credit (Thousands) Billed Unbilled Balances and Deposits Balance as of September 30, 2020 $ 134,173 $ 9,226 $ 25,934 Increase 78,665 1,125 6,652 Balance as of September 30, 2021 212,838 10,351 32,586 Increase 9,459 3,418 660 Balance as of September 30, 2022 $ 222,297 $ 13,769 $ 33,246 |
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 Consolidated Balance Sheets as of September 30: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total 2022 Customer accounts receivable Billed $ 78,508 5,566 129,199 7,012 2,012 $ 222,297 Unbilled 10,814 2,955 — — — 13,769 Customers’ credit balances and deposits (33,246) — — — — (33,246) Total $ 56,076 8,521 129,199 7,012 2,012 $ 202,820 2021 Customer accounts receivable Billed $ 54,514 5,534 147,087 3,956 1,747 $ 212,838 Unbilled 8,427 1,924 — — — 10,351 Customers’ credit balances and deposits (32,586) — — — — (32,586) Total $ 30,355 7,458 147,087 3,956 1,747 $ 190,603 |
REGULATION (Tables)
REGULATION (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | Regulatory assets and liabilities included on the Consolidated Balance Sheets for NJNG are comprised of the following, as of September 30: (Thousands) 2022 2021 Regulatory assets-current New Jersey Clean Energy Program $ 15,697 $ 16,308 Conservation Incentive Program 23,099 11,839 Other current regulatory assets 1,290 1,554 Total current regulatory assets $ 40,086 $ 29,701 Regulatory assets-noncurrent Environmental remediation costs: Expended, net of recoveries $ 66,149 $ 58,483 Liability for future expenditures 127,070 135,012 Deferred income taxes 40,520 39,694 SAVEGREEN 52,690 32,941 Postemployment and other benefit costs 56,021 117,194 Deferred storm damage costs 2,172 4,343 Cost of removal 104,850 99,238 Other noncurrent regulatory assets 45,828 32,695 Total noncurrent regulatory assets $ 495,300 $ 519,600 Regulatory liability-current Overrecovered natural gas costs $ 17,807 $ 5,510 Derivatives at fair value, net 7,972 22,497 Total current regulatory liabilities $ 25,779 $ 28,007 Regulatory liabilities-noncurrent Tax Act impact (1) $ 185,367 $ 190,386 Derivatives at fair value, net 116 1,166 Other noncurrent regulatory liabilities 151 336 Total noncurrent regulatory liabilities $ 185,634 $ 191,888 (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 assets and liabilities included on the Consolidated Balance Sheets for Adelphia Gateway are comprised of the following, as of September 30: (Thousands) 2022 2021 Total current regulatory assets $ — $ 417 Total noncurrent regulatory assets $ 5,366 $ 2,499 Total current regulatory liabilities 5,311 — Total noncurrent regulatory liabilities $ — $ 1,163 |
Schedule of Regulatory Liabilities | Regulatory assets and liabilities included on the Consolidated Balance Sheets for NJNG are comprised of the following, as of September 30: (Thousands) 2022 2021 Regulatory assets-current New Jersey Clean Energy Program $ 15,697 $ 16,308 Conservation Incentive Program 23,099 11,839 Other current regulatory assets 1,290 1,554 Total current regulatory assets $ 40,086 $ 29,701 Regulatory assets-noncurrent Environmental remediation costs: Expended, net of recoveries $ 66,149 $ 58,483 Liability for future expenditures 127,070 135,012 Deferred income taxes 40,520 39,694 SAVEGREEN 52,690 32,941 Postemployment and other benefit costs 56,021 117,194 Deferred storm damage costs 2,172 4,343 Cost of removal 104,850 99,238 Other noncurrent regulatory assets 45,828 32,695 Total noncurrent regulatory assets $ 495,300 $ 519,600 Regulatory liability-current Overrecovered natural gas costs $ 17,807 $ 5,510 Derivatives at fair value, net 7,972 22,497 Total current regulatory liabilities $ 25,779 $ 28,007 Regulatory liabilities-noncurrent Tax Act impact (1) $ 185,367 $ 190,386 Derivatives at fair value, net 116 1,166 Other noncurrent regulatory liabilities 151 336 Total noncurrent regulatory liabilities $ 185,634 $ 191,888 (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 assets and liabilities included on the Consolidated Balance Sheets for Adelphia Gateway are comprised of the following, as of September 30: (Thousands) 2022 2021 Total current regulatory assets $ — $ 417 Total noncurrent regulatory assets $ 5,366 $ 2,499 Total current regulatory liabilities 5,311 — Total noncurrent regulatory liabilities $ — $ 1,163 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Assets and Liabilities | The following table presents the fair value of the Company’s derivative assets and liabilities recognized on the Consolidated Balance Sheets as of September 30: Derivatives at Fair Value 2022 2021 (Thousands) Balance Sheet Location Assets Liabilities Assets Liabilities Derivatives not designated as hedging instruments: Natural Gas Distribution: Physical commodity contracts Derivatives - current $ 252 $ 11 $ 36 $ 16 Financial commodity contracts Derivatives - current 85 6,281 2,046 13 Energy Services: Physical commodity contracts Derivatives - current 9,857 17,051 2,818 24,592 Derivatives - noncurrent 376 13,561 333 13,237 Financial commodity contracts Derivatives - current 14,423 26,488 30,226 62,521 Derivatives - noncurrent 6,009 630 3,068 260 Foreign currency contracts Derivatives - current 18 17 125 3 Derivatives - noncurrent — — 2 — Total fair value of derivatives $ 31,020 $ 64,039 $ 38,654 $ 100,642 |
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 and the net amounts the Company could present on the 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 September 30, 2022: Derivative assets: Energy Services Physical commodity contracts $ 10,233 $ (404) $ (200) $ 9,629 Financial commodity contracts 20,432 (12,198) — 8,234 Foreign currency contracts 18 (17) — 1 Total Energy Services $ 30,683 $ (12,619) $ (200) $ 17,864 Natural Gas Distribution Physical commodity contracts $ 252 $ — $ — $ 252 Financial commodity contracts 85 (85) — — Total Natural Gas Distribution $ 337 $ (85) $ — $ 252 Derivative liabilities: Energy Services Physical commodity contracts $ 30,612 $ (404) $ — $ 30,208 Financial commodity contracts 27,118 (12,198) — 14,920 Foreign currency contracts 17 (17) — Total Energy Services $ 57,747 $ (12,619) $ — $ 45,128 Natural Gas Distribution Physical commodity contracts $ 11 $ — $ — $ 11 Financial commodity contracts 6,281 (85) — 6,196 Total Natural Gas Distribution $ 6,292 $ (85) $ — $ 6,207 As of September 30, 2021: Derivative assets: Energy Services Physical commodity contracts $ 3,151 $ (894) $ (700) $ 1,557 Financial commodity contracts 33,294 (33,294) 20,532 20,532 Foreign currency contracts 127 (3) — 124 Total Energy Services $ 36,572 $ (34,191) $ 19,832 $ 22,213 Natural Gas Distribution Physical commodity contracts $ 36 $ (8) $ — $ 28 Financial commodity contracts 2,046 (13) — 2,033 Total Natural Gas Distribution $ 2,082 $ (21) $ — $ 2,061 Derivative liabilities: Energy Services Physical commodity contracts $ 37,829 $ (894) $ — $ 36,935 Financial commodity contracts 62,781 (33,294) — 29,487 Foreign currency contracts 3 (3) — — Total Energy Services $ 100,613 $ (34,191) $ — $ 66,422 Natural Gas Distribution Physical commodity contracts $ 16 $ (8) $ — $ 8 Financial commodity contracts 13 (13) — — Total Natural Gas Distribution $ 29 $ (21) $ — $ 8 (1) Derivative assets and liabilities are presented on a gross basis on the balance sheets 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 and the net amounts the Company could present on the 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 September 30, 2022: Derivative assets: Energy Services Physical commodity contracts $ 10,233 $ (404) $ (200) $ 9,629 Financial commodity contracts 20,432 (12,198) — 8,234 Foreign currency contracts 18 (17) — 1 Total Energy Services $ 30,683 $ (12,619) $ (200) $ 17,864 Natural Gas Distribution Physical commodity contracts $ 252 $ — $ — $ 252 Financial commodity contracts 85 (85) — — Total Natural Gas Distribution $ 337 $ (85) $ — $ 252 Derivative liabilities: Energy Services Physical commodity contracts $ 30,612 $ (404) $ — $ 30,208 Financial commodity contracts 27,118 (12,198) — 14,920 Foreign currency contracts 17 (17) — Total Energy Services $ 57,747 $ (12,619) $ — $ 45,128 Natural Gas Distribution Physical commodity contracts $ 11 $ — $ — $ 11 Financial commodity contracts 6,281 (85) — 6,196 Total Natural Gas Distribution $ 6,292 $ (85) $ — $ 6,207 As of September 30, 2021: Derivative assets: Energy Services Physical commodity contracts $ 3,151 $ (894) $ (700) $ 1,557 Financial commodity contracts 33,294 (33,294) 20,532 20,532 Foreign currency contracts 127 (3) — 124 Total Energy Services $ 36,572 $ (34,191) $ 19,832 $ 22,213 Natural Gas Distribution Physical commodity contracts $ 36 $ (8) $ — $ 28 Financial commodity contracts 2,046 (13) — 2,033 Total Natural Gas Distribution $ 2,082 $ (21) $ — $ 2,061 Derivative liabilities: Energy Services Physical commodity contracts $ 37,829 $ (894) $ — $ 36,935 Financial commodity contracts 62,781 (33,294) — 29,487 Foreign currency contracts 3 (3) — — Total Energy Services $ 100,613 $ (34,191) $ — $ 66,422 Natural Gas Distribution Physical commodity contracts $ 16 $ (8) $ — $ 8 Financial commodity contracts 13 (13) — — Total Natural Gas Distribution $ 29 $ (21) $ — $ 8 (1) Derivative assets and liabilities are presented on a gross basis on the balance sheets 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 Consolidated Statements of Operations as of September 30: (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized Derivatives not designated as hedging instruments: 2022 2021 2020 Energy Services: Physical commodity contracts Operating revenues $ (8,569) $ 30,011 $ 1,163 Physical commodity contracts Natural gas purchases 3,580 1,052 (3,366) Financial commodity contracts Natural gas purchases 14,403 (43,997) 58,949 Foreign currency contracts Natural gas purchases (14) 238 (41) Total unrealized and realized gains (losses) $ 9,400 $ (12,696) $ 56,705 |
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI | The following table reflects the gains and/or (losses) associated with NJNG’s derivative instruments as of September 30: (Thousands) 2022 2021 2020 Natural Gas Distribution: Physical commodity contracts $ 7,116 $ 2,174 $ 2,077 Financial commodity contracts 32,868 32,725 (3,903) Total unrealized and realized gains (losses) $ 39,984 $ 34,899 $ (1,826) |
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 as of September 30: (Thousands) Amount of pre-tax gain (loss) recognized in OCI on derivatives Location of gain (loss) reclassified from OCI into income Amount of pre-tax gain (loss) reclassified from OCI into income Derivatives in cash flow hedging relationships: 2022 2021 2022 2021 Interest rate contracts $ — $ — Interest expense $ (1,371) $ (1,371) |
Schedule of Outstanding Long (Short) Derivatives | NJNG and Energy Services had the following outstanding long (short) derivatives as of September 30: Volume (Bcf) Transaction Type 2022 2021 Natural Gas Distribution Futures 30.5 22.2 Physical Commodity 6.8 7.6 Energy Services Futures (0.7) (13.4) Swaps — (0.3) Physical Commodity 2.7 0.6 |
Schedule of Broker Margin Accounts by Company | The balances as of September 30, by reporting segment, are as follows: (Thousands) Balance Sheet Location 2022 2021 Natural Gas Distribution Restricted broker margin accounts - current assets $ 26,138 $ 2,790 Energy Services Restricted broker margin accounts - current assets $ 68,123 $ 70,050 |
Summary of Gross Credit Exposures | The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of September 30, 2022. 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 Investment grade $ 182,138 Noninvestment grade 30,105 Internally-rated investment grade 17,113 Internally-rated noninvestment grade 45,591 Total $ 274,947 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | As of September 30, the estimated fair value of long-term debt, including current maturities, excluding finance leases, debt issuance costs and solar asset financing obligations, is as follows (1) : (Thousands) 2022 2021 NJNG (2) (3) Carrying value $ 1,292,845 $ 1,092,845 Fair market value $ 979,388 $ 1,188,261 NJR (4) Carrying value $ 1,070,000 $ 1,010,000 Fair market value $ 966,968 $ 1,100,283 (1) See Note 9. Debt f or a reconciliation to long-term and short-term debt . (2) Excludes finance leases of $30.3 million and $20.1 million as of September 30, 2022 and September 30, 2021, respectively. (3) Excludes NJNG’'s debt issuance costs of $9.5 million and $9.1 million as of September 30, 2022 and September 30, 2021, respectively. (4) Excludes NJR’s debt issuance costs of $3.8 million and $3.3 million as of September 30, 2022 and September 30, 2021, 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 (Thousands) (Level 1) (Level 2) (Level 3) Total As of September 30, 2022: Assets Physical commodity contracts $ — $ 10,485 $ — $ 10,485 Financial commodity contracts 20,517 — — 20,517 Financial commodity contracts - foreign exchange — 18 — 18 Money market funds 59 — — 59 Other 1,884 — — 1,884 Total assets at fair value $ 22,460 $ 10,503 $ — $ 32,963 Liabilities Physical commodity contracts $ — $ 30,623 $ — $ 30,623 Financial commodity contracts 33,231 168 — 33,399 Financial commodity contracts - foreign exchange — 17 — 17 Total liabilities at fair value $ 33,231 $ 30,808 $ — $ 64,039 As of September 30, 2021: Assets Physical commodity contracts $ — $ 3,187 $ — $ 3,187 Financial commodity contracts 35,340 — — 35,340 Financial commodity contracts - foreign exchange — 127 — 127 Money market funds 41 — — 41 Other 1,815 — — 1,815 Total assets at fair value $ 37,196 $ 3,314 $ — $ 40,510 Liabilities Physical commodity contracts $ — $ 37,845 $ — $ 37,845 Financial commodity contracts 62,188 606 — 62,794 Financial commodity contracts - foreign exchange — 3 — 3 Total liabilities at fair value $ 62,188 $ 38,454 $ — $ 100,642 |
INVESTMENTS IN EQUITY INVESTE_2
INVESTMENTS IN EQUITY INVESTEES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Investments, All Other Investments [Abstract] | |
Schedule of Equity Method Investments | As of September 30, the Company’s investments in equity method investees includes the following: (Thousands) 2022 2021 Steckman Ridge (1) $ 106,571 $ 109,050 PennEast — 5,479 Total $ 106,571 $ 114,529 (1) Includes loans with a total outstanding principal balance of $70.4 million for both fiscal 2022 and 2021, which accrue interest at a variable rate that resets quarterly and are due October 1, 2023. The following is the summarized financial information for Steckman Ridge and PennEast for fiscal years ended September 30: (Thousands) 2022 2021 2020 Steckman Ridge Operating revenues $ 19,812 $ 21,847 $ 28,814 Gross profit $ 11,349 $ 13,350 $ 20,537 Income from continuing operations $ 8,686 $ 11,483 $ 16,926 Net income $ 8,686 $ 11,483 $ 16,926 Net income attributable to NJR $ 4,343 $ 5,741 $ 8,463 Current assets $ 28,609 $ 14,786 Noncurrent assets $ 198,052 $ 202,670 Current liabilities $ 23,618 $ 9,738 Noncurrent liabilities $ 140,810 $ 140,810 PennEast Operating revenues $ — $ — $ — Gross profit $ — $ — $ — Income from continuing operations $ (3,778) $ (406,305) $ 34,376 Net (loss) income $ (3,778) $ (406,305) $ 34,376 Net (loss) income attributable to NJR $ (756) $ (81,261) $ 6,875 Current assets $ 1,801 $ 822 Noncurrent assets $ — $ 44,998 Current liabilities $ 82 $ 248 Noncurrent liabilities $ 500 $ 500 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
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 the fiscal years ended September 30: (Thousands, except per share amounts) 2022 2021 2020 Net income, as reported $ 274,922 $ 117,890 $ 163,007 Basic earnings per share Weighted average shares of common stock outstanding-basic 96,100 96,227 94,798 Basic earnings per common share $2.86 $1.23 $1.72 Diluted earnings per share Weighted average shares of common stock outstanding-basic 96,100 96,227 94,798 Incremental shares (1) 388 333 305 Weighted average shares of common stock outstanding-diluted 96,488 96,560 95,103 Diluted earnings per common share (2) $2.85 $1.22 $1.71 (1) Incremental shares consist primarily of unvested stock awards and performance units. |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The following table presents the long-term debt of the Company as of September 30: (Thousands) 2022 2021 NJNG First mortgage bonds: Maturity date: 3.00% Series OO August 1, 2041 46,500 46,500 3.15% Series PP April 15, 2028 50,000 50,000 3.58% Series QQ March 13, 2024 70,000 70,000 4.61% Series RR March 13, 2044 55,000 55,000 2.82% Series SS April 15, 2025 50,000 50,000 3.66% Series TT April 15, 2045 100,000 100,000 3.63% Series UU June 21, 2046 125,000 125,000 4.01% Series VV May 11, 2048 125,000 125,000 3.50% Series WW April 1, 2042 10,300 10,300 3.38% Series XX April 1, 2038 10,500 10,500 2.45% Series YY April 1, 2059 15,000 15,000 3.76% Series ZZ July 17, 2049 100,000 100,000 3.86% Series AAA July 17, 2059 85,000 85,000 2.75% Series BBB August 1, 2039 9,545 9,545 3.00% Series CCC August 1, 2043 41,000 41,000 3.13% Series DDD June 30, 2050 50,000 50,000 3.13% Series EEE July 23, 2050 50,000 50,000 3.33% Series FFF July 23, 2060 25,000 25,000 2.87% Series GGG September 1, 2050 25,000 25,000 2.97% Series HHH September 1, 2060 50,000 50,000 2.97% Series III October 28, 2051 50,000 — 3.07% Series JJJ October 28, 2061 50,000 — 4.37% Series LLL May 27, 2037 50,000 — 4.71% Series MMM May 27, 2052 50,000 — Finance lease obligation-meters Various dates 30,290 20,135 Less: Debt issuance costs (9,528) (9,093) Less: Current maturities of long-term debt (6,538) (5,393) Total NJNG long-term debt 1,307,069 1,098,494 NJR 3.25% Unsecured senior notes September 17, 2022 — 50,000 3.20% Unsecured senior notes August 18, 2023 50,000 50,000 3.48% Unsecured senior notes November 7, 2024 100,000 100,000 3.54% Unsecured senior notes August 18, 2026 100,000 100,000 3.96% Unsecured senior notes June 8, 2028 100,000 100,000 3.29% Unsecured senior notes July 17, 2029 150,000 150,000 3.60% Unsecured senior notes July 23, 2032 130,000 130,000 3.50% Unsecured senior notes July 23, 2030 130,000 130,000 3.25% Unsecured senior notes September 1, 2033 80,000 80,000 3.13% Unsecured senior notes September 1, 2031 120,000 120,000 4.38% Unsecured senior notes June 23, 2027 110,000 — 3.64% Unsecured senior notes September 19, 2034 50,000 — Less: Debt issuance costs (3,753) (3,269) Less: Current maturities of long-term debt (50,000) (50,000) Total NJR long-term debt 1,066,247 956,731 Clean Energy Ventures Solar asset financing obligation Various dates 130,618 124,387 Less: Current maturities of long-term debt (18,532) (17,448) Total Clean Energy Ventures long-term debt 112,086 106,939 Total long-term debt $ 2,485,402 $ 2,162,164 |
Schedule of Long-term Debt Redemption Requirements | Annual long-term debt redemption requirements, excluding finance leases, debt issuance costs and solar asset financing obligations, as of September 30, are as follows: (Thousands) NJR NJNG 2023 $ 50,000 $ — 2024 $ — $ 70,000 2025 $ 100,000 $ 50,000 2026 $ 100,000 $ — 2027 $ 110,000 $ — Thereafter $ 760,000 $ 1,172,845 |
Finance Lease Liability, Maturity | Contractual commitments for finance lease payments, as of the fiscal years ended September 30, are as follows: (Thousands) Lease Payments 2023 $ 7,252 2024 7,909 2025 6,026 2026 4,955 2027 2,630 Thereafter 3,262 Subtotal 32,034 Less: Interest component (1,744) Total $ 30,290 The following table presents the Company’s maturities of lease liabilities as of September 30, 2022: (Thousands) Operating Leases Finance Leases 2023 $ 8,024 $ 7,252 2024 7,652 7,909 2025 7,087 6,026 2026 6,998 4,955 2027 6,972 2,630 Thereafter 190,972 3,262 Total future lease payments 227,705 32,034 Less: interest (84,761) (1,744) Total lease liability $ 142,944 $ 30,290 |
Schedule of Contractual Commitments for Finance Lease Payments | Contractual commitments for the solar financing obligation payments, as of the fiscal years ended September 30, are as follows: (Thousands) Lease Payments 2023 $ 15,755 2024 43,000 2025 39,629 2026 2,841 2027 5,352 Thereafter 16,442 Subtotal 123,019 Less: Interest component (11,443) Total $ 111,576 |
Schedule of Line of Credit Facilities | A summary of NJR’s credit facility and NJNG’s commercial paper program and credit facility as of September 30, are as follows: (Thousands) 2022 2021 Expiration Dates NJR Bank revolving credit facilities (1) $ 650,000 $ 500,000 September 2027 Notes outstanding at end of period $ 200,150 $ 219,100 Weighted average interest rate at end of period 3.97 % 1.05 % Amount available at end of period (2) $ 440,177 $ 270,312 Bank term loan credit agreement $ 150,000 $ — February 2023 Loans outstanding at end of period $ 150,000 $ — Weighted average interest rate at end of period 3.81 % — % Amount available at end of period $ — $ — NJNG Bank revolving credit facilities (3) $ 250,000 $ 250,000 September 2027 Commercial paper outstanding at end of period $ 73,800 $ 158,200 Weighted average interest rate at end of period 3.34 % .17 % Amount available at end of period (4) $ 175,469 $ 91,069 (1) Committed credit facilities, which require commitment fees of 0.10 percent on the unused amounts. (2) Letters of credit outstanding total $9.7 million and $10.6 million as of September 30, 2022 and September 30, 2021, respectively, which reduces amount available by the same amount. (3) Committed credit facilities, which require commitment fees of 0.075 percent on the unused amounts. (4) Letters of credit outstanding total $731,000 as of both September 30, 2022 and 2021, which reduces amount available by the same amount. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-based Compensation Expense Recognized | The following table summarizes all stock-based compensation expense recognized during the following fiscal years: (Thousands) 2022 2021 2020 Stock-based compensation expense: Performance share awards $ 4,131 $ 3,856 $ 1,943 Restricted and non-restricted stock 3,189 3,193 2,868 Deferred retention stock 7,507 100 1,725 Compensation expense included in operation and maintenance expense 14,827 7,149 6,536 Income tax benefit (1) (3,624) (1,613) (1,900) Total, net of tax $ 11,203 $ 5,536 $ 4,636 (1) Excludes additional tax (expense) benefit related to delivered shares of $(144,000), $(159,000) and $647,000 as of September 30, 2022, 2021 and 2020, respectively. |
Summary of Performance Share Activity | The following table summarizes the performance share activity under the stock award and incentive plans for the past three fiscal years: Shares (1) Weighted Average Total Fair Value of Vested Shares (in Thousands) Non-vested and outstanding at September 30, 2019 130,509 $46.53 — Granted 82,064 $40.61 — Vested (2) (55,025) $44.27 $ 2,083 Cancelled/forfeited (1,817) $44.38 — Non-vested and outstanding at September 30, 2020 155,731 $44.22 — Granted 116,951 $33.34 — Vested (3) (54,918) $44.64 $ 1,673 Cancelled/forfeited (51,673) $45.32 — Non-vested and outstanding at September 30, 2021 166,091 $36.08 — Granted 118,526 $38.84 — Vested (4) (76,708) $39.57 $ 2,765 Cancelled/forfeited (15,788) $37.33 — Non-vested and outstanding at September 30, 2022 192,121 $36.29 — (1) The number of common shares issued related to certain performance shares may range from zero to 150 percent of the number of shares shown in the table above based on the Company’s achievement of performance goals. (2) As certified by the Company’s Leadership and Compensation Committee on November 9, 2020, there were no common shares earned related to TSR performance, the number of common shares earned related to NFE performance was 114 percent or 28,513 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100 percent or 11,139 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100 percent. (3) As certified by the Company’s Leadership and Compensation Committee on November 10, 2021, there were no common shares earned related to TSR performance, the number of common shares earned related to NFE performance was 93 percent or 31,116 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100 percent or 25,982 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100 percent. (4) As certified by the Company’s Leadership and Compensation Committee on November 9, 2022, the number of common shares earned related to TSR performance was 112 percent or 30,472 shares, the number of common shares earned related to NFE performance was 105 percent or 26,282 shares and the number of common shares earned related to Performance Based Restricted Stock was 100 percent or 28,965 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100 percent. |
Summary of Restricted Stock Activity | The following table summarizes the restricted stock activity under the stock award and incentive plans for the past three fiscal years: Shares Weighted Average Total Fair Value of Vested Shares (in Thousands) Non-vested and outstanding at September 30, 2019 58,156 $46.18 — Granted 42,478 $40.61 — Vested (25,973) $44.71 $ 1,073 Cancelled/forfeited (1,175) $43.62 — Non-vested and outstanding at September 30, 2020 73,486 $43.52 — Granted 67,726 $33.34 — Vested (34,000) $44.30 $ 996 Cancelled/forfeited (5,591) $36.34 — Non-vested and outstanding at September 30, 2021 101,621 $36.87 — Granted 54,826 $38.84 — Vested (47,867) $39.01 $ 1,824 Cancelled/forfeited (10,756) $37.06 — Non-vested and outstanding at September 30, 2022 97,824 $36.90 — |
Summary of Deferred Retention Stock Award | The following table summarizes the deferred retention stock award under the stock award and incentive plans for the past three fiscal years: Shares Weighted Average Total Fair Value of Vested Shares (in Thousands) Outstanding at September 30, 2019 243,561 $44.67 — Granted/Vested 42,358 $40.72 — Delivered (57,673) $35.25 $ 2,423 Outstanding at September 30, 2020 228,246 $46.32 — Granted/Vested 2,999 $33.34 — Delivered (22,389) $45.00 $ 641 Outstanding at September 30, 2021 208,856 $46.28 — Granted/Vested 192,728 $38.95 — Delivered (163,499) $47.95 $ 6,167 Forfeited (6,818) 40.33 — Outstanding at September 30, 2022 231,267 $39.16 — |
Schedule of Nonemployee Director Stock Award Plan Activity | The following summarizes non-employee director share awards for the past three fiscal years: 2022 2021 2020 Shares granted 30,908 (1) 34,994 27,696 Weighted average grant date fair value $39.09 $35.72 $42.88 (1) Approximately $300,000 of expense remains as of September 30, 2022, to be recognized through December 31, 2022. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Summary of Changes in Funded Status of Plans and Liabilities Recognized | The following summarizes the changes in the funded status of the plans and the related liabilities recognized on the Consolidated Balance Sheets as of September 30: Pension (1) OPEB (Thousands) 2022 2021 2022 2021 Change in Benefit Obligation Benefit obligation at beginning of year $ 395,547 $ 397,164 $ 244,674 $ 245,862 Service cost 8,291 8,730 4,305 4,844 Interest cost 9,632 9,112 6,355 6,071 Plan participants’ contributions (2) 59 27 423 451 Actuarial (gain) (109,320) (7,319) (77,775) (4,715) Benefits paid, net of retiree subsidies received (13,386) (12,167) (4,765) (7,839) Benefit obligation at end of year $ 290,823 $ 395,547 $ 173,217 $ 244,674 Change in plan assets Fair value of plan assets at beginning of year $ 355,284 $ 307,968 $ 114,183 $ 96,406 Actual (loss) return on plan assets (58,239) 58,874 (15,996) 18,144 Employer contributions 628 548 6,082 7,198 Benefits paid, net of plan participants’ contributions (2) (13,326) (12,106) (4,533) (7,565) Fair value of plan assets at end of year $ 284,347 $ 355,284 $ 99,736 $ 114,183 Funded status $ (6,476) $ (40,263) $ (73,481) $ (130,491) Amounts recognized on Consolidated Balance Sheets Postemployment employee benefit asset Noncurrent $ 4,388 $ — $ — $ — Postemployment employee benefit liability Current $ (578) $ (587) $ (900) $ (900) Noncurrent (10,286) (39,676) (72,581) (129,591) Total $ (6,476) $ (40,263) $ (73,481) $ (130,491) (1) Includes the Company’s PEP. (2) Employees hired prior to July 1, 1998, that were eligible to elect an additional participant contribution to enhance their benefits, and contributions made during the periods were immaterial. |
Summary of Regulatory Assets and Accumulated Other Comprehensive Income | The following table summarizes the amounts recognized in regulatory assets and accumulated OCI as of September 30: Regulatory Assets Accumulated Other Comprehensive Income (Loss) Pension OPEB Pension OPEB Balance at September 30, 2020 $ 103,564 $ 83,301 $ 33,004 $ 13,823 Amounts arising during the period: Net actuarial (gain) (39,006) (16,286) (7,036) (76) Amounts amortized to net periodic costs: Net actuarial (loss) (8,269) (6,846) (3,178) (1,064) Prior service (cost) credit (102) 166 — 13 Balance at September 30, 2021 $ 56,187 $ 60,335 $ 22,790 $ 12,696 Amounts arising during the period: Net actuarial (gain) (14,922) (35,781) (14,885) (18,422) Amounts amortized to net periodic costs: Net actuarial (loss) (5,843) (4,577) (2,902) (1,107) Prior service (cost) credit (101) 133 — 11 Balance at September 30, 2022 $ 35,321 $ 20,110 $ 5,003 $ (6,822) The amounts in regulatory assets and accumulated OCI not yet recognized as components of net periodic benefit cost as of September 30 are: Regulatory Assets Accumulated Other Comprehensive Pension OPEB Pension OPEB (Thousands) 2022 2021 2022 2021 2022 2021 2022 2021 Net actuarial loss (gain) $ 35,157 $ 55,922 $ 20,110 $ 60,468 $ 5,003 $ 22,790 $ (6,822) $ 12,707 Prior service cost (credit) 164 265 — (133) — — — (11) Total $ 35,321 $ 56,187 $ 20,110 $ 60,335 $ 5,003 $ 22,790 $ (6,822) $ 12,696 Regulatory Assets Accumulated Other Comprehensive Income (Loss) (Thousands) Pension OPEB Pension OPEB Net actuarial (gain) loss $ (36) $ — $ 217 $ — Total $ (36) $ — $ 217 $ — |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The projected benefit and accumulated benefit obligations and the fair value of plan assets as of September 30, are as follows: Pension (Thousands) 2022 2021 Projected benefit obligation $ 290,823 $ 395,547 Accumulated benefit obligation $ 265,933 $ 353,852 Fair value of plan assets $ 284,347 $ 355,284 |
Components of Net Periodic Cost | The components of the net periodic cost for pension benefits, including the Company’s PEP, and OPEB costs (principally health care and life insurance) for employees and covered dependents for fiscal years ended September 30, are as follows: Pension OPEB (Thousands) 2022 2021 2020 2022 2021 2020 Service cost $ 8,291 $ 8,730 $ 8,223 $ 4,305 $ 4,844 $ 4,854 Interest cost 9,632 9,112 10,587 6,355 6,071 7,026 Expected return on plan assets (21,275) (20,150) (20,579) (7,575) (6,497) (6,510) Recognized actuarial loss 8,745 11,446 10,424 5,684 7,909 7,442 Prior service cost (credit) amortization 101 102 102 (144) (179) (197) Net periodic benefit cost recognized as expense $ 5,494 $ 9,240 $ 8,757 $ 8,625 $ 12,148 $ 12,615 |
Schedule of Weighted Average Assumptions Used | The weighted average assumptions used to determine the Company’s benefit costs during the fiscal years below and obligations as of September 30, are as follows: Pension OPEB 2022 2021 2020 2022 2021 2020 Benefit costs: Discount rate 3.10/3.07% (1) 2.95/2.92% (1) 3.37/3.35% (1) 3.24/3.17% (1) 3.08/3.03% (1) 3.48/3.44% (1) Expected asset return 6.75 % 6.75 % 7.25 % 6.75 % 6.75 % 7.25 % Compensation increase 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) Obligations: Discount rate 5.50/5.50% (1) 3.10/3.07% (1) 2.95/2.92% (1) 5.51/5.51% (1) 3.24/3.17% (1) 3.08/3.03% (1) Compensation increase 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) 3.00/3.50% (1) (1) Percentages for represented and non-represented plans, respectively. |
Summary of Pension and OPEB Assets | Information relating to the assumed HCCTR used to determine expected OPEB benefits as of September 30, and the effect of a 1 percent change in the rate, are as follows: ($ in thousands) 2022 2021 2020 HCCTR 6.6% 6.9% 7.6% Ultimate HCCTR 4.5% 4.5% 4.5% Year ultimate HCCTR reached 2027 2027 2026 Effect of a 1 percentage point increase in the HCCTR on: Year-end benefit obligation $ 26,710 $ 43,217 $ 49,106 Total service and interest cost $ 2,544 $ 2,959 $ 2,799 Effect of a 1 percentage point decrease in the HCCTR on: Year-end benefit obligation $ (21,853) $ (34,669) $ (38,844) Total service and interest costs $ (1,966) $ (2,253) $ (2,151) Pension and OPEB assets held in the master trust, measured at fair value, as of September 30, are summarized as follows: (Thousands) Quoted Prices in Active Markets for Identical Assets Total Quoted Prices in Active Markets for Identical Assets Total As of September 30, 2022 Pension OPEB Assets Money market funds $ — $ — $ 28 $ 28 Registered Investment Companies: Equity Funds: Large Cap Index 75,394 75,394 26,939 26,939 Extended Market Index 15,783 15,783 5,578 5,578 International Stock 44,846 44,846 16,106 16,106 Fixed Income Funds: Emerging Markets 11,074 11,074 4,026 4,026 Core Fixed Income — — 16,594 16,594 Opportunistic Income — — 3,283 3,283 Ultra Short Duration — — 3,296 3,296 High Yield Bond Fund 19,816 19,816 7,320 7,320 Long Duration Fund 59,084 59,084 — — Total assets in the fair value hierarchy $ 225,997 225,997 $ 83,170 83,170 Investments measured at net asset value Collective investment trusts 58,350 16,566 Total assets at fair value $ 284,347 $ 99,736 (Thousands) Quoted Prices in Active Markets for Identical Assets Total Quoted Prices in Active Markets for Identical Assets Total As of September 30, 2021: Pension OPEB Assets Money market funds $ — $ — $ 32 $ 32 Registered Investment Companies: Equity Funds: Large Cap Index 103,961 103,961 33,644 33,644 Extended Market Index 21,948 21,948 7,096 7,096 International Stock 61,286 61,286 20,063 20,063 Fixed Income Funds: Emerging Markets 18,291 18,291 6,001 6,001 Core Fixed Income — — 13,345 13,345 Opportunistic Income — — 8,568 8,568 Ultra Short Duration — — 8,536 8,536 High Yield Bond Fund 30,300 30,300 9,912 9,912 Long Duration Fund 93,849 93,849 — — Total assets in the fair value hierarchy $ 329,635 329,635 $ 107,197 107,197 Investments measured at net asset value Collective investment trusts 25,649 6,986 Total assets at fair value $ 355,284 $ 114,183 |
Schedule of Mix and Targeted Allocation of Plan Assets | The mix and targeted allocation of the pension and OPEB plans’ assets are as follows: 2023 Assets at Target September 30, Asset Allocation Allocation 2022 2021 U.S. equity securities 34 % 32 % 36 % International equity securities 17 16 17 Fixed income 33 32 40 Collective investment trusts at NAV 16 20 7 Total 100 % 100 % 100 % |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following fiscal years: (Thousands) Pension OPEB 2023 $ 14,112 $ 6,878 2024 $ 15,143 $ 7,508 2025 $ 16,150 $ 8,220 2026 $ 17,137 $ 8,938 2027 $ 18,104 $ 9,656 2028 - 2032 $ 104,614 $ 57,488 |
Schedule of Estimated Subsidy Payments | The following estimated subsidy payments are expected to be paid during the following fiscal years: Estimated Subsidy (Thousands) Payments 2023 $ 356 2024 $ 393 2025 $ 433 2026 $ 475 2027 $ 520 2028 - 2032 $ 3,426 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Analysis of Change in ARO Liability | The following is an analysis of the change in the Company’s ARO for the fiscal years ended September 30: 2022 2021 (Thousands) NJNG NJRCEV NJNG NJRCEV Balance at October 1 $ 41,611 $ 4,694 $ 29,280 $ 4,444 Accretion 2,052 186 1,612 182 Additions 161 281 5,697 68 Change in assumptions 7,339 — 6,151 — Retirements (1,289) — (1,129) — Balance at period end $ 49,874 $ 5,161 $ 41,611 $ 4,694 |
Schedule of Future Accretion | Accretion for the next five years, for the fiscal years ended September 30, is estimated to be as follows: Estimated (Thousands) Accretion 2023 $ 2,767 2024 2,900 2025 3,038 2026 3,180 2027 3,328 Total $ 15,213 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | The income tax provision from operations for the fiscal years ended September 30, consists of the following: (Thousands) 2022 2021 2020 Current: Federal $ 4,238 $ 651 $ (2,164) State 2,104 1,703 6,763 Deferred: Federal 55,968 25,030 28,817 State 14,185 6,224 3,400 Investment/production tax credits (300) (322) (322) Income tax provision $ 76,195 $ 33,286 $ 36,494 |
Schedule of Deferred Tax Assets and Liabilities | As of September 30, the temporary differences, which give rise to deferred tax assets (liabilities), consist of the following: (Thousands) 2022 2021 Deferred tax assets Investment tax credits (1) $ 212,506 $ 225,036 State net operating losses 36,950 38,108 Fair value of derivatives 6,506 16,333 Impairment of equity method investment 14,124 15,395 Postemployment benefits 2,751 9,665 Incentive compensation 7,297 6,894 Amortization of intangibles 6,474 6,540 Overrecovered natural gas costs 4,977 1,540 Allowance for doubtful accounts 5,761 6,561 Other 5,748 6,140 Total deferred tax assets 303,094 332,212 Less: Valuation allowance (22,241) (23,613) Total deferred tax assets net of valuation allowance $ 280,853 $ 308,599 Deferred tax liabilities Property-related items $ (468,115) $ (419,753) Remediation costs (18,490) (16,347) Investments in equity investees (19,176) (21,739) Conservation incentive plan (6,457) (3,309) Other (4,615) (6,203) Total deferred tax liabilities $ (516,853) $ (467,351) Total net deferred tax liabilities $ (236,000) $ (158,752) (1) Includes approximately $732,000 and $814,000 for NJNG for fiscal 2022 and 2021, respectively, which is being amortized over the life of the related assets. (2) See discussion of federal net operating loss utilization in the Other Tax Items section of this note. |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory rate to the effective rate from operations for the fiscal years ended September 30, is as follows: (Thousands) 2022 2021 2020 Statutory income tax expense $ 73,735 $ 31,747 $ 41,896 Change resulting from: Investment/production tax credits (300) (322) (322) Cost of removal of assets placed in service prior to 1981 (3,533) (5,366) (5,362) AFUDC equity (2,361) (786) (4,933) State income taxes, net of federal benefit 13,072 6,124 11,965 NJ Unitary method change — — (15,345) Valuation allowance (1,372) 5,974 13,604 Tax Act - utility excess deferred income taxes amortized (3,573) (3,573) (3,573) Other 527 (512) (1,436) Income tax provision $ 76,195 $ 33,286 $ 36,494 Effective income tax rate 21.7 % 22.0 % 18.3 % |
Schedule of the Reserve for Uncertain Tax Benefits | The reserve for uncertain tax benefits for the fiscal year ended September 30, is as follows: (Thousands) 2022 2021 Balance at October 1, $ — $ 4,930 Reversal of settled tax positions during the current fiscal period — (4,930) Balance at period end $ — $ — |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Lease, Cost | The following table presents the Company’s lease costs included in the Consolidated Statements of Operations for the fiscal year ended September 30: (Thousands) Income Statement Location 2022 2021 Operating lease cost (1) Operation and maintenance $ 9,702 $ 8,182 Finance lease cost Amortization of right-of-use assets Depreciation and amortization 1,769 3,442 Interest on lease liabilities Interest expense, net of capitalized interest 612 710 Total finance lease cost $ 2,381 $ 4,152 Short-term lease cost Operation and maintenance 34 543 Variable lease cost Operation and maintenance 781 1,381 Total lease cost $ 12,898 $ 14,258 (1) Net of capitalized costs. The following table presents supplemental cash flow information related to leases for the fiscal year ended September 30: (Thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 7,417 $ 6,675 Operating cash flows for finance leases $ 831 $ 1,167 Financing cash flows for finance leases $ 7,145 $ 8,180 |
Assets and Liabilities, Lessee | The following table presents the balance and classifications of the Company’s right of use assets and lease liabilities included in the Consolidated Balance Sheets for the fiscal year ended September 30: (Thousands) Balance Sheet Location 2022 2021 Assets Noncurrent Operating lease assets Operating lease assets $ 168,520 $ 173,928 Finance lease assets Utility plant 21,913 13,489 Total lease assets $ 190,433 $ 187,417 Liabilities Current Operating lease liabilities Operating lease liabilities $ 4,562 $ 4,300 Finance lease liabilities Current maturities of long-term debt 6,538 5,393 Noncurrent Operating lease liabilities Operating lease liabilities 138,382 141,363 Finance lease liabilities Long-term debt 23,752 14,742 Total lease liabilities $ 173,234 $ 165,798 |
Operating Lease Liability, Maturity | The following table presents the Company’s maturities of lease liabilities as of September 30, 2022: (Thousands) Operating Leases Finance Leases 2023 $ 8,024 $ 7,252 2024 7,652 7,909 2025 7,087 6,026 2026 6,998 4,955 2027 6,972 2,630 Thereafter 190,972 3,262 Total future lease payments 227,705 32,034 Less: interest (84,761) (1,744) Total lease liability $ 142,944 $ 30,290 |
Finance Lease Liability, Maturity | Contractual commitments for finance lease payments, as of the fiscal years ended September 30, are as follows: (Thousands) Lease Payments 2023 $ 7,252 2024 7,909 2025 6,026 2026 4,955 2027 2,630 Thereafter 3,262 Subtotal 32,034 Less: Interest component (1,744) Total $ 30,290 The following table presents the Company’s maturities of lease liabilities as of September 30, 2022: (Thousands) Operating Leases Finance Leases 2023 $ 8,024 $ 7,252 2024 7,652 7,909 2025 7,087 6,026 2026 6,998 4,955 2027 6,972 2,630 Thereafter 190,972 3,262 Total future lease payments 227,705 32,034 Less: interest (84,761) (1,744) Total lease liability $ 142,944 $ 30,290 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments for Natural Gas Purchases and Future Demands Fees for the Next Five Years | Commitments as of September 30, 2022, for natural gas purchases and future demand fees for the next five fiscal year periods, are as follows: (Thousands) 2022 2023 2024 2025 2026 Thereafter Energy Services: Natural gas purchases $ 199,629 $ 2,355 $ — $ — $ — $ — Storage demand fees 21,160 12,607 6,450 3,797 2,208 819 Pipeline demand fees 56,757 44,466 32,285 31,876 23,061 20,724 Sub-total Energy Services $ 277,546 $ 59,428 $ 38,735 $ 35,673 $ 25,269 $ 21,543 NJNG: Natural gas purchases $ 30,730 $ — $ — $ — $ — $ — Storage demand fees 47,513 35,345 17,370 10,268 9,546 4,775 Pipeline demand fees 149,071 120,805 138,949 127,722 124,163 1,057,942 Sub-total NJNG $ 227,314 $ 156,150 $ 156,319 $ 137,990 $ 133,709 $ 1,062,717 Total $ 504,860 $ 215,578 $ 195,054 $ 173,663 $ 158,978 $ 1,084,260 |
REPORTING SEGMENT AND OTHER O_2
REPORTING SEGMENT AND OTHER OPERATIONS DATA (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information related to the Company’s various reporting segments and other business operations is detailed below: (Thousands) Fiscal Years Ended September 30, 2022 2021 2020 Operating revenues Natural Gas Distribution External customers $ 1,127,417 $ 731,796 $ 729,923 Intercompany 1,350 — — Clean Energy Ventures External customers 128,280 95,275 102,617 Energy Services External customers (1) 1,529,178 1,228,846 1,029,303 Intercompany 94 (426) 1,116 Storage and Transportation External customers 65,286 49,252 42,015 Intercompany 2,449 1,768 2,713 Subtotal 2,854,054 2,106,511 1,907,687 Home Services and Other External customers 55,818 51,444 49,810 Intercompany 364 785 1,207 Eliminations (4,257) (2,127) (5,036) Total $ 2,905,979 $ 2,156,613 $ 1,953,668 Depreciation and amortization Natural Gas Distribution $ 94,579 $ 80,045 $ 71,883 Clean Energy Ventures 21,396 20,567 25,329 Energy Services (2) 148 111 123 Storage and Transportation 12,302 9,960 9,293 Subtotal 128,425 110,683 106,628 Home Services and Other 824 980 1,032 Eliminations — (276) (292) Total $ 129,249 $ 111,387 $ 107,368 Interest income (3) Natural Gas Distribution $ 895 $ 85 $ 538 Clean Energy Ventures — 241 240 Energy Services 16 11 99 Storage and Transportation 2,110 2,243 3,510 Subtotal 3,021 2,580 4,387 Home Services and Other 944 522 8,633 Eliminations (1,249) (935) (10,061) Total $ 2,716 $ 2,167 $ 2,959 (1) Includes sales to Canada for Energy Services, which are $2.4 million, $75,000 and $584,000 in the fiscal years ended September 30, 2022, 2021 and 2020, respectively. (2) The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Consolidated Statements of Operations. (3) Included in other income, net on the Consolidated Statements of Operations. (Thousands) Fiscal Years Ended September 30, 2022 2021 2020 Interest expense, net of capitalized interest Natural Gas Distribution $ 46,394 $ 36,405 $ 30,975 Clean Energy Ventures 21,968 22,548 20,253 Energy Services 4,725 2,204 3,276 Storage and Transportation 12,097 13,348 13,124 Subtotal 85,184 74,505 67,628 Home Services and Other 646 4,054 10,327 Eliminations — — (10,358) Total $ 85,830 $ 78,559 $ 67,597 Income tax provision (benefit) Natural Gas Distribution $ 40,141 $ 19,054 $ 27,021 Clean Energy Ventures 11,361 5,048 11,034 Energy Services 21,776 18,371 (3,615) Storage and Transportation 1,879 (10,043) 4,247 Subtotal 75,157 32,430 38,687 Home Services and Other 1,059 (196) (2,478) Eliminations (21) 1,052 285 Total $ 76,195 $ 33,286 $ 36,494 Equity in earnings (loss) of affiliates Storage and Transportation $ 9,865 $ (81,072) $ 15,903 Eliminations (1,688) (2,140) (1,592) Total $ 8,177 $ (83,212) $ 14,311 Net financial earnings (loss) Natural Gas Distribution $ 140,124 $ 107,375 $ 126,902 Clean Energy Ventures 39,403 16,789 22,111 Energy Services 39,121 71,117 (7,873) Storage and Transportation 22,454 13,046 18,311 Subtotal 241,102 208,327 159,451 Home Services and Other (781) (826) 5,784 Eliminations — 211 98 Total $ 240,321 $ 207,712 $ 165,333 Capital expenditures Natural Gas Distribution $ 298,374 $ 426,628 $ 290,040 Clean Energy Ventures 146,676 87,852 133,841 Storage and Transportation 151,988 107,500 20,998 Subtotal 597,038 621,980 444,879 Home Services and Other 1,390 2,630 3,230 Total $ 598,428 $ 624,610 $ 448,109 (Return of capital from) investments in equity investees Storage and Transportation $ (5,479) $ 690 $ 2,117 Total $ (5,479) $ 690 $ 2,117 |
Schedule of Assets for Business Segments and Other Business Operations | The Company’s assets for the various reporting segments and other business operations are detailed below: (Thousands) 2022 2021 2020 Assets at end of period: Natural Gas Distribution $ 4,030,686 $ 3,707,461 $ 3,531,477 Clean Energy Ventures 1,015,065 914,788 814,277 Energy Services 333,064 365,423 244,836 Storage and Transportation 999,520 862,407 844,799 Subtotal 6,378,335 5,850,079 5,435,389 Home Services and Other 159,068 162,134 138,375 Intercompany assets (1) (275,987) (289,935) (257,287) Total $ 6,261,416 $ 5,722,278 $ 5,316,477 (1) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
Reconciliation of Consolidated NFE to Consolidated Net Income | A reconciliation of consolidated NFE to consolidated net income is as follows: (Thousands) 2022 2021 2020 Net financial earnings $ 240,321 $ 207,712 $ 165,333 Less: Unrealized (gain) loss on derivative instruments and related transactions (59,906) 54,203 (9,644) Tax effect 14,248 (12,887) 2,296 Effects of economic hedging related to natural gas inventory 19,939 (42,405) 12,690 Tax effect (4,738) 10,078 (3,016) (Gain on) impairment of equity method investment (5,521) 92,000 — Tax effect 1,377 (11,167) — Net income $ 274,922 $ 117,890 $ 163,007 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Demand Fees and Demand Fees Payable | Demand fees, net of eliminations, associated with Steckman Ridge during the fiscal years ended September 30, were as follows: (Thousands) 2022 2021 2020 Natural Gas Distribution $ 6,663 $ 6,449 $ 5,900 Energy Services 732 564 183 Total $ 7,395 $ 7,013 $ 6,083 The following table summarizes demand fees payable to Steckman Ridge as of September 30: (Thousands) 2022 2021 Natural Gas Distribution $ 775 $ 778 Energy Services 76 83 Total $ 851 $ 861 |
NATURE OF THE BUSINESS (Details
NATURE OF THE BUSINESS (Details) | 12 Months Ended |
Sep. 30, 2022 customer subsidiary | |
Steckman Ridge | |
Nature of Business [Line Items] | |
Ownership percentage | 50% |
PennEast | |
Nature of Business [Line Items] | |
Ownership percentage | 20% |
NJNG | |
Nature of Business [Line Items] | |
Total retail customers | customer | 569,300 |
NJR Retail Holdings Corporation | |
Nature of Business [Line Items] | |
Number of principal subsidiaries | subsidiary | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details) | 12 Months Ended | |||
Sep. 30, 2022 USD ($) plan | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Operating revenues | $ 2,905,979,000 | $ 2,156,613,000 | $ 1,953,668,000 | |
Investment tax credit, solar property, percentage | 26% | |||
Composite rate of depreciation | 2.66% | 2.42% | 2.65% | |
Depreciation and amortization | $ 129,249,000 | $ 111,387,000 | $ 107,368,000 | |
SBC interest rate | 3.85% | 1.68% | 1.97% | |
Deferred interest | $ 857,000 | $ 346,000 | $ 511,000 | |
Loans receivable in other noncurrent assets | 34,700,000 | 32,300,000 | ||
Gain (loss) amortized in earning | 219,000 | 223,000 | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | 4,122,000 | 4,293,000 | ||
Intangible assets, acquired wholesale natural gas energy | 2,300,000 | |||
Proceeds from sale leaseback transaction | 17,300,000 | 0 | 4,000,000 | |
Proceeds from sale leaseback transactions - solar | $ 24,071,000 | 17,673,000 | 42,927,000 | |
Number of noncontributory defined benefit retirement plans (in plans) | plan | 2 | |||
Number of noncontributory medical and life insurance plans (in plans) | plan | 2 | |||
Pension | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Employer discretionary contributions | $ 0 | 0 | ||
Employer contributions | 628,000 | 548,000 | ||
OPEB | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Employer contributions | 6,082,000 | 7,198,000 | ||
Clean Energy Ventures | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Proceeds from sale leaseback transactions - solar | 24,100,000 | 17,700,000 | 42,900,000 | |
NJNG | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Proceeds from sale leaseback transaction | 17,300,000 | 0 | $ 4,000,000 | |
Cash Flow Hedges | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax | 1,054,000 | 1,021,000 | ||
Financial Asset, Not Past Due | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Loans receivable in other current assets | $ 14,500,000 | 14,200,000 | ||
Seven-Year Treasury Rate | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Debt instrument, term | 7 years | |||
Basis spread on variable rate | 0.60% | |||
Storage and transportation property, base gas | Unregulated | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Base gas cost | $ 15,100,000 | $ 7,900,000 | ||
Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Storage and pipeline capacity, contract term | 1 year | |||
Loans receivable term | 2 years | |||
Minimum | Clean Energy Ventures | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Term of lease | 5 years | |||
Minimum | NJNG | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Term of lease | 7 years | |||
Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Storage and pipeline capacity, contract term | 10 years | |||
Loans receivable term | 10 years | |||
Maximum | Clean Energy Ventures | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Term of lease | 15 years | |||
Maximum | NJNG | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Term of lease | 11 years | |||
Energy Services | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Operating revenues | $ 53,000,000 | |||
Deferred revenue | $ 33,800,000 | |||
Energy Services | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Storage and pipeline capacity, contract term | 1 year | |||
Energy Services | Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Storage and pipeline capacity, contract term | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - DEMAND FEES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Demand fees | $ 265.7 | $ 243.7 | $ 253.7 |
Energy Services | |||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Demand fees | 95.4 | 120.5 | 121.8 |
NJNG | |||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Demand fees | $ 170.3 | $ 123.2 | $ 131.9 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - PROPERTY PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Property Classifications | ||
Total property, plant and equipment | $ 5,515,716 | $ 4,997,049 |
Accumulated depreciation and amortization | (865,790) | (783,536) |
Property, plant and equipment, net | 4,649,926 | 4,213,513 |
Regulated | Distribution facilities | ||
Property Classifications | ||
Total property, plant and equipment | $ 2,797,936 | 2,558,651 |
Regulated | Distribution facilities | Minimum | ||
Property Classifications | ||
Estimated Useful Lives | 10 years | |
Regulated | Distribution facilities | Maximum | ||
Property Classifications | ||
Estimated Useful Lives | 54 years | |
Regulated | Transmission facilities | ||
Property Classifications | ||
Total property, plant and equipment | $ 649,241 | 643,942 |
Regulated | Transmission facilities | Minimum | ||
Property Classifications | ||
Estimated Useful Lives | 28 years | |
Regulated | Transmission facilities | Maximum | ||
Property Classifications | ||
Estimated Useful Lives | 42 years | |
Regulated | Storage facilities | ||
Property Classifications | ||
Total property, plant and equipment | $ 85,449 | 79,892 |
Regulated | Storage facilities | Minimum | ||
Property Classifications | ||
Estimated Useful Lives | 35 years | |
Regulated | Storage facilities | Maximum | ||
Property Classifications | ||
Estimated Useful Lives | 86 years | |
Unregulated | Solar property | ||
Property Classifications | ||
Total property, plant and equipment | $ 710,224 | 675,376 |
Unregulated | Solar property | Minimum | ||
Property Classifications | ||
Estimated Useful Lives | 20 years | |
Unregulated | Solar property | Maximum | ||
Property Classifications | ||
Estimated Useful Lives | 35 years | |
Unregulated | Storage and transportation property | ||
Property Classifications | ||
Total property, plant and equipment | $ 850,186 | 433,678 |
Unregulated | Storage and transportation property | Minimum | ||
Property Classifications | ||
Estimated Useful Lives | 5 years | |
Unregulated | Storage and transportation property | Maximum | ||
Property Classifications | ||
Estimated Useful Lives | 50 years | |
Unregulated | All other property | ||
Property Classifications | ||
Total property, plant and equipment | $ 60,914 | 57,968 |
Unregulated | All other property | Minimum | ||
Property Classifications | ||
Estimated Useful Lives | 5 years | |
Unregulated | All other property | Maximum | ||
Property Classifications | ||
Estimated Useful Lives | 40 years | |
Unregulated | Construction work in progress | ||
Property Classifications | ||
Total property, plant and equipment | $ 361,766 | $ 547,542 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CAPITALIZED AND DEFERRED INTEREST (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
NJNG | |||
AFUDC: | |||
Debt | $ 1,648 | $ 5,648 | $ 5,134 |
Equity | 4,169 | 16,605 | 14,599 |
Total | $ 5,817 | $ 22,253 | $ 19,733 |
Weighted average interest rate | 4.91% | 5.97% | 6.79% |
Adelphia Gateway | |||
AFUDC: | |||
Debt | $ 4,019 | $ 2,101 | $ 1,394 |
Equity | 7,074 | 3,698 | 2,454 |
Total | $ 11,093 | $ 5,799 | $ 3,848 |
Weighted average interest rate | 8.28% | 8.28% | 8.28% |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 1,107 | $ 4,749 | $ 117,012 | |
Restricted cash in other noncurrent assets | 345 | 1,294 | 2,411 | |
Cash, cash equivalents and restricted cash | $ 1,452 | $ 6,043 | $ 119,423 | $ 4,063 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NATURAL GAS IN STORAGE (Details) $ in Thousands | Sep. 30, 2022 USD ($) Bcf | Sep. 30, 2021 USD ($) Bcf |
Inventory [Line Items] | ||
Natural Gas in Storage, value | $ | $ 273,644 | $ 193,606 |
Natural Gas in Storage, Bcf | Bcf | 39,800,000 | 46,400,000 |
Natural Gas Distribution | ||
Inventory [Line Items] | ||
Natural Gas in Storage, value | $ | $ 191,175 | $ 115,824 |
Natural Gas in Storage, Bcf | Bcf | 29,000,000 | 27,600,000 |
Energy Services | ||
Inventory [Line Items] | ||
Natural Gas in Storage, value | $ | $ 82,469 | $ 77,782 |
Natural Gas in Storage, Bcf | Bcf | 10,800,000 | 18,800,000 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SOFTWARE COSTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Capitalized software costs | $ 6,120 | $ 5,582 |
Software amortization | 452 | 447 |
Operation and maintenance | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Software costs | 11,141 | 9,141 |
Depreciation and amortization | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Software costs | 2,024 | 1,078 |
Utility plant, at cost | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Software costs | 40,437 | 16,543 |
Construction work in progress | Regulated | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Software costs | 14,381 | 7,801 |
Construction work in progress | Unregulated | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Software costs | 0 | 8 |
Nonutility plant and equipment, at cost | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Software costs | 344 | 338 |
Accumulated depreciation and amortization, utility plant | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Accumulated depreciation and amortization | (3,361) | (1,333) |
Accumulated depreciation and amortization, nonutility plant and equipment | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Accumulated depreciation and amortization | $ (25) | $ (29) |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INTANGIBLE ASSETS (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Accounting Policies [Abstract] | |
2023 | $ 2,271 |
2024 | 77 |
2025 | 0 |
2026 | 0 |
2027 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance as of beginning of period | $ 1,630,862 | $ 1,643,896 | $ 1,381,833 |
Other comprehensive income, before reclassifications, net of tax | 25,580 | 5,494 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 4,122 | 4,293 | |
Net current-period other comprehensive income, net of tax | 29,702 | 9,787 | (12,528) |
Balance as of end of period | 1,817,210 | 1,630,862 | 1,643,896 |
Tax on other comprehensive income before reclassifications | (7,727) | (1,618) | |
Tax on amounts reclassified from accumulated other comprehensive income | (1,247) | (1,307) | |
Tax on net current-period other comprehensive income | (8,974) | (2,925) | |
Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance as of beginning of period | (9,376) | (10,397) | |
Other comprehensive income, before reclassifications, net of tax | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 1,054 | 1,021 | |
Net current-period other comprehensive income, net of tax | 1,054 | 1,021 | |
Balance as of end of period | (8,322) | (9,376) | (10,397) |
Tax on other comprehensive income before reclassifications | 0 | 0 | |
Tax on amounts reclassified from accumulated other comprehensive income | (317) | (350) | |
Tax on net current-period other comprehensive income | (317) | (350) | |
Postemployment Benefit Obligation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance as of beginning of period | (25,152) | (33,918) | |
Other comprehensive income, before reclassifications, net of tax | 25,580 | 5,494 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 3,068 | 3,272 | |
Net current-period other comprehensive income, net of tax | 28,648 | 8,766 | |
Balance as of end of period | 3,496 | (25,152) | (33,918) |
Tax on other comprehensive income before reclassifications | (7,727) | (1,618) | |
Tax on amounts reclassified from accumulated other comprehensive income | (930) | (957) | |
Tax on net current-period other comprehensive income | (8,657) | (2,575) | |
Total | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance as of beginning of period | (34,528) | (44,315) | (31,787) |
Net current-period other comprehensive income, net of tax | 29,702 | 9,787 | (12,528) |
Balance as of end of period | $ (4,826) | $ (34,528) | $ (44,315) |
REVENUE - DISAGGREGATED REVENUE
REVENUE - DISAGGREGATED REVENUE - PRODUCT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | $ 1,198,985 | $ 852,105 | $ 833,677 |
Alternative revenue programs | 11,259 | (7,282) | 15,750 |
Derivative instruments | 1,695,829 | 1,311,364 | 1,105,357 |
Revenues out of scope | 1,706,994 | 1,304,508 | 1,119,991 |
Total operating revenues | 2,905,979 | 2,156,613 | 1,953,668 |
Natural gas utility sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 951,626 | 694,635 | 695,858 |
Natural gas services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 151,536 | 77,953 | 69,239 |
Service contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 33,932 | 33,250 | 32,455 |
Installations and maintenance | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 22,250 | 18,979 | 18,562 |
Renewable energy certificates | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 5,487 | 4,571 | 1,384 |
Electricity sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 38,317 | 25,270 | 20,099 |
Energy Services | |||
Disaggregation of Revenue [Line Items] | |||
Total operating revenues | 53,000 | ||
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total operating revenues | 2,854,054 | 2,106,511 | 1,907,687 |
Operating Segments | Natural Gas Distribution | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 950,276 | 694,635 | 695,858 |
Alternative revenue programs | 11,259 | (7,282) | 15,750 |
Derivative instruments | 165,882 | 44,443 | 18,315 |
Revenues out of scope | 177,141 | 37,161 | 34,065 |
Total operating revenues | 1,127,417 | 731,796 | 729,923 |
Operating Segments | Natural Gas Distribution | Natural gas utility sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 951,626 | 694,635 | 695,858 |
Operating Segments | Natural Gas Distribution | Natural gas services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Natural Gas Distribution | Service contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Natural Gas Distribution | Installations and maintenance | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Natural Gas Distribution | Renewable energy certificates | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Natural Gas Distribution | Electricity sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 43,804 | 29,841 | 21,483 |
Alternative revenue programs | 0 | 0 | 0 |
Derivative instruments | 84,476 | 65,434 | 81,134 |
Revenues out of scope | 84,476 | 65,434 | 81,134 |
Total operating revenues | 128,280 | 95,275 | 102,617 |
Operating Segments | Clean Energy Ventures | Natural gas utility sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | Natural gas services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | Service contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | Installations and maintenance | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | Renewable energy certificates | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 5,487 | 4,571 | 1,384 |
Operating Segments | Clean Energy Ventures | Electricity sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 38,317 | 25,270 | 20,099 |
Operating Segments | Energy Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 83,801 | 26,933 | 24,511 |
Alternative revenue programs | 0 | 0 | 0 |
Derivative instruments | 1,445,471 | 1,201,487 | 1,005,908 |
Revenues out of scope | 1,445,377 | 1,201,913 | 1,004,792 |
Total operating revenues | 1,529,178 | 1,228,846 | 1,029,303 |
Operating Segments | Energy Services | Natural gas utility sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Energy Services | Natural gas services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 83,801 | 26,933 | 24,511 |
Operating Segments | Energy Services | Service contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Energy Services | Installations and maintenance | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Energy Services | Renewable energy certificates | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Energy Services | Electricity sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Storage and Transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 65,286 | 49,252 | 42,015 |
Alternative revenue programs | 0 | 0 | 0 |
Derivative instruments | 0 | 0 | 0 |
Revenues out of scope | 0 | 0 | 0 |
Total operating revenues | 65,286 | 49,252 | 42,015 |
Operating Segments | Storage and Transportation | Natural gas utility sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Storage and Transportation | Natural gas services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 67,735 | 51,020 | 44,728 |
Operating Segments | Storage and Transportation | Service contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Storage and Transportation | Installations and maintenance | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Storage and Transportation | Renewable energy certificates | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Operating Segments | Storage and Transportation | Electricity sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Home Services and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues out of scope | 0 | 0 | 0 |
Total operating revenues | 55,818 | 51,444 | 49,810 |
Home Services and Other | Home Services and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 55,818 | 51,444 | 49,810 |
Alternative revenue programs | 0 | 0 | 0 |
Derivative instruments | 0 | 0 | 0 |
Revenues out of scope | 0 | 0 | 0 |
Total operating revenues | 55,818 | 51,444 | 49,810 |
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 |
Home Services and Other | Home Services and Other | Natural gas services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Home Services and Other | Home Services and Other | Service contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 33,932 | 33,250 | 32,455 |
Home Services and Other | Home Services and Other | Installations and maintenance | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 22,250 | 18,979 | 18,562 |
Home Services and Other | Home Services and Other | Renewable energy certificates | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Home Services and Other | Home Services and Other | Electricity sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | (4,163) | (2,553) | (3,920) |
Revenues out of scope | (94) | 426 | (1,116) |
Eliminations | Natural Gas Distribution | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | (1,350) | 0 | 0 |
Revenues out of scope | 0 | 0 | 0 |
Eliminations | Clean Energy Ventures | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Revenues out of scope | 0 | 0 | 0 |
Eliminations | Energy Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Revenues out of scope | (94) | 426 | (1,116) |
Eliminations | Storage and Transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | (2,449) | (1,768) | (2,713) |
Revenues out of scope | 0 | 0 | 0 |
Eliminations | Home Services and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | (364) | (785) | (1,207) |
Revenues out of scope | $ 0 | $ 0 | $ 0 |
REVENUE - DISAGGREGATED REVEN_2
REVENUE - DISAGGREGATED REVENUE - TYPE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | $ 1,198,985 | $ 852,105 | $ 833,677 |
Revenues out of scope | 1,706,994 | 1,304,508 | 1,119,991 |
Total operating revenues | 2,905,979 | 2,156,613 | 1,953,668 |
Residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 654,886 | 549,026 | 549,333 |
Commercial and industrial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 446,471 | 219,981 | 208,665 |
Firm transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 92,531 | 79,256 | 69,357 |
Interruptible and off-tariff | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 5,097 | 3,842 | 6,322 |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total operating revenues | 2,854,054 | 2,106,511 | 1,907,687 |
Home Services and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues out of scope | 0 | 0 | 0 |
Total operating revenues | 55,818 | 51,444 | 49,810 |
Home Services and Other | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 55,629 | 50,689 | 48,867 |
Home Services and Other | Commercial and industrial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 189 | 755 | 943 |
Home Services and Other | Firm transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Home Services and Other | Interruptible and off-tariff | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Natural Gas Distribution | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 950,276 | 694,635 | 695,858 |
Revenues out of scope | 177,141 | 37,161 | 34,065 |
Total operating revenues | 1,127,417 | 731,796 | 729,923 |
Natural Gas Distribution | Operating Segments | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 586,678 | 487,018 | 490,233 |
Natural Gas Distribution | Operating Segments | Commercial and industrial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 265,970 | 124,519 | 129,946 |
Natural Gas Distribution | Operating Segments | Firm transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 92,531 | 79,256 | 69,357 |
Natural Gas Distribution | Operating Segments | Interruptible and off-tariff | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 5,097 | 3,842 | 6,322 |
Clean Energy Ventures | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 43,804 | 29,841 | 21,483 |
Revenues out of scope | 84,476 | 65,434 | 81,134 |
Total operating revenues | 128,280 | 95,275 | 102,617 |
Clean Energy Ventures | Operating Segments | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 12,579 | 11,319 | 10,233 |
Clean Energy Ventures | Operating Segments | Commercial and industrial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 31,225 | 18,522 | 11,250 |
Clean Energy Ventures | Operating Segments | Firm transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 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 |
Energy Services | |||
Disaggregation of Revenue [Line Items] | |||
Total operating revenues | 53,000 | ||
Energy Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 83,801 | 26,933 | 24,511 |
Revenues out of scope | 1,445,377 | 1,201,913 | 1,004,792 |
Total operating revenues | 1,529,178 | 1,228,846 | 1,029,303 |
Energy Services | Operating Segments | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Energy Services | Operating Segments | Commercial and industrial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 83,801 | 26,933 | 24,511 |
Energy Services | Operating Segments | Firm transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Energy Services | Operating Segments | Interruptible and off-tariff | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Storage and Transportation | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 65,286 | 49,252 | 42,015 |
Revenues out of scope | 0 | 0 | 0 |
Total operating revenues | 65,286 | 49,252 | 42,015 |
Storage and Transportation | Operating Segments | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Storage and Transportation | Operating Segments | Commercial and industrial | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 65,286 | 49,252 | 42,015 |
Storage and Transportation | Operating Segments | Firm transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
Storage and Transportation | Operating Segments | Interruptible and off-tariff | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | $ 0 | $ 0 | $ 0 |
REVENUE - TIMING OF REVENUE REC
REVENUE - TIMING OF REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Timing of Revenue Recognition [Roll Forward] | ||
Billed, beginning balance | $ 212,838 | |
Customers' credit, beginning balance | 32,586 | $ 25,934 |
Increase for customers' credits balances and deposits | 660 | 6,652 |
Billed, ending balance | 222,297 | 212,838 |
Customers' credit, ending balance | 33,246 | 32,586 |
Billed | ||
Timing of Revenue Recognition [Roll Forward] | ||
Billed, beginning balance | 212,838 | 134,173 |
Increase for customer accounts receivable | 9,459 | 78,665 |
Billed, ending balance | 222,297 | 212,838 |
Unbilled | ||
Timing of Revenue Recognition [Roll Forward] | ||
Billed, beginning balance | 10,351 | 9,226 |
Increase for customer accounts receivable | 3,418 | 1,125 |
Billed, ending balance | $ 13,769 | $ 10,351 |
REVENUE - TIMING OF REVENUE R_2
REVENUE - TIMING OF REVENUE RECOGNITION - BALANCE SHEET (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Disaggregation of Revenue [Line Items] | |||
Customer accounts receivable | $ 222,297 | $ 212,838 | |
Customers’ credit balances and deposits | (33,246) | (32,586) | $ (25,934) |
Customers accounts receivables & Customers' credit balances and deposits | 202,820 | 190,603 | |
Billed | |||
Disaggregation of Revenue [Line Items] | |||
Customer accounts receivable | 222,297 | 212,838 | 134,173 |
Unbilled revenues | |||
Disaggregation of Revenue [Line Items] | |||
Customer accounts receivable | 13,769 | 10,351 | $ 9,226 |
Operating Segments | Natural Gas Distribution | |||
Disaggregation of Revenue [Line Items] | |||
Customers’ credit balances and deposits | (33,246) | (32,586) | |
Customers accounts receivables & Customers' credit balances and deposits | 56,076 | 30,355 | |
Operating Segments | Natural Gas Distribution | Billed | |||
Disaggregation of Revenue [Line Items] | |||
Customer accounts receivable | 78,508 | 54,514 | |
Operating Segments | Natural Gas Distribution | Unbilled revenues | |||
Disaggregation of Revenue [Line Items] | |||
Customer accounts receivable | 10,814 | 8,427 | |
Operating Segments | Clean Energy Ventures | |||
Disaggregation of Revenue [Line Items] | |||
Customers’ credit balances and deposits | 0 | 0 | |
Customers accounts receivables & Customers' credit balances and deposits | 8,521 | 7,458 | |
Operating Segments | Clean Energy Ventures | Billed | |||
Disaggregation of Revenue [Line Items] | |||
Customer accounts receivable | 5,566 | 5,534 | |
Operating Segments | Clean Energy Ventures | Unbilled revenues | |||
Disaggregation of Revenue [Line Items] | |||
Customer accounts receivable | 2,955 | 1,924 | |
Operating Segments | Energy Services | |||
Disaggregation of Revenue [Line Items] | |||
Customers’ credit balances and deposits | 0 | 0 | |
Customers accounts receivables & Customers' credit balances and deposits | 129,199 | 147,087 | |
Operating Segments | Energy Services | Billed | |||
Disaggregation of Revenue [Line Items] | |||
Customer accounts receivable | 129,199 | 147,087 | |
Operating Segments | Energy Services | Unbilled revenues | |||
Disaggregation of Revenue [Line Items] | |||
Customer accounts receivable | 0 | 0 | |
Operating Segments | Storage and Transportation | |||
Disaggregation of Revenue [Line Items] | |||
Customers’ credit balances and deposits | 0 | 0 | |
Customers accounts receivables & Customers' credit balances and deposits | 7,012 | 3,956 | |
Operating Segments | Storage and Transportation | Billed | |||
Disaggregation of Revenue [Line Items] | |||
Customer accounts receivable | 7,012 | 3,956 | |
Operating Segments | Storage and Transportation | Unbilled revenues | |||
Disaggregation of Revenue [Line Items] | |||
Customer accounts receivable | 0 | 0 | |
Home Services and Other | |||
Disaggregation of Revenue [Line Items] | |||
Customers’ credit balances and deposits | 0 | 0 | |
Customers accounts receivables & Customers' credit balances and deposits | 2,012 | 1,747 | |
Home Services and Other | Billed | |||
Disaggregation of Revenue [Line Items] | |||
Customer accounts receivable | 2,012 | 1,747 | |
Home Services and Other | Unbilled revenues | |||
Disaggregation of Revenue [Line Items] | |||
Customer accounts receivable | $ 0 | $ 0 |
REGULATION - REGULATORY FILINGS
REGULATION - REGULATORY FILINGS (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||||||||||||||||||
Sep. 28, 2022 USD ($) | Sep. 13, 2022 USD ($) | Sep. 07, 2022 USD ($) | Aug. 17, 2022 USD ($) | Jul. 13, 2022 USD ($) | Jun. 01, 2022 USD ($) | Mar. 23, 2022 USD ($) | Jan. 26, 2022 USD ($) | Nov. 19, 2021 USD ($) | Nov. 17, 2021 USD ($) | Mar. 03, 2021 USD ($) | Sep. 25, 2020 | May 29, 2020 USD ($) | Feb. 28, 2019 USD ($) lease | Nov. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Apr. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | Jan. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) filing project | Sep. 30, 2021 USD ($) | |
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Regulatory assets-noncurrent | $ 500,666 | $ 522,099 | ||||||||||||||||||||
Number of interim filings during each fiscal year | filing | 2 | |||||||||||||||||||||
Number of days notice for refund | 5 days | |||||||||||||||||||||
NJNG | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Approved rate increase (decrease), amount | $ 28,900 | |||||||||||||||||||||
Environmental Remediation Costs | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Regulatory assets, amortization period | 7 years | |||||||||||||||||||||
Postemployment and Other Benefit Costs | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Regulatory assets, amortization period | 7 years | |||||||||||||||||||||
Deferred Storm Damage Costs | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Regulatory assets, amortization period | 7 years | |||||||||||||||||||||
Other Regulatory Asset Noncurrent, PIM | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Regulatory assets, amortization period | 7 years | |||||||||||||||||||||
Regulatory assets-noncurrent | $ 635 | |||||||||||||||||||||
Base Rate Stipulation | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Weighted average cost of capital | 6.84% | |||||||||||||||||||||
Approved return on equity | 9.60% | |||||||||||||||||||||
Approved equity capital structure, percentage | 54% | |||||||||||||||||||||
Public utilities, approved depreciation rate, percentage | 2.78% | |||||||||||||||||||||
SAVEGREEN | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Public utility extension term | 3 years | |||||||||||||||||||||
Capital investments approved by the BPU | $ 126,100 | |||||||||||||||||||||
Financing options | 109,400 | |||||||||||||||||||||
Operations and maintenance expense | 23,400 | |||||||||||||||||||||
Annual recovery increase | $ 2,200 | $ 15,600 | ||||||||||||||||||||
SAVEGREEN | Minimum | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Regulatory assets, amortization period | 2 years | |||||||||||||||||||||
Program recovery term | 3 years | |||||||||||||||||||||
SAVEGREEN | Maximum | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Regulatory assets, amortization period | 10 years | |||||||||||||||||||||
Program recovery term | 10 years | |||||||||||||||||||||
BPU | NJNG | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Program recovery term | 3 years | |||||||||||||||||||||
Approved rate increase (decrease), amount | $ 3,200 | |||||||||||||||||||||
Public utilities, investments | $ 500,000 | |||||||||||||||||||||
BPU | NJNG | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Requested rate increase (decrease), amount | $ 79,000 | |||||||||||||||||||||
BGSS | NJNG | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Requested rate increase (decrease), amount | $ 24,200 | |||||||||||||||||||||
Interim rate increase (decrease), amount | $ (20,600) | |||||||||||||||||||||
Interim rate increase (decrease), amount, net of tax | $ (19,300) | |||||||||||||||||||||
BGSS | NJNG | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Requested rate increase (decrease), amount | $ 81,900 | 2,900 | ||||||||||||||||||||
BGSS Balancing | NJNG | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Requested rate increase (decrease), amount | 9,000 | 13,000 | ||||||||||||||||||||
Conservation Incentive Program | NJNG | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Requested rate increase (decrease), amount | $ 10,200 | $ (6,300) | ||||||||||||||||||||
NJNG EE Recovery Rate | NJNG | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Annual recovery increase | $ (3,500) | |||||||||||||||||||||
Approved rate increase (decrease), amount | $ 11,400 | |||||||||||||||||||||
RAC | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Approved rate increase (decrease), amount | $ 3,800 | $ 600 | $ 1,300 | |||||||||||||||||||
NJCEP | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Approved rate increase (decrease), amount | $ 2,200 | $ (2,900) | $ 6,000 | |||||||||||||||||||
USF | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Requested rate increase (decrease), amount | $ (1,600) | $ 4,900 | ||||||||||||||||||||
SAFE Program | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Capital investments approved by the BPU | $ 130,000 | |||||||||||||||||||||
Capital investments approved by the BPU, period | 4 years | |||||||||||||||||||||
Capital investments to be recovered approved by the Board of Public Utilities | $ 200,000 | |||||||||||||||||||||
Recovery amount | $ 157,500 | |||||||||||||||||||||
SAFE II | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Capital investments approved by the BPU, period | 5 years | |||||||||||||||||||||
NJ RISE Program | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Approved return on equity | 9.75% | |||||||||||||||||||||
Program recovery term | 5 years | |||||||||||||||||||||
Number of capital investment projects | project | 6 | |||||||||||||||||||||
Originally filed petition for capital investments to Board of Public Utilities | $ 102,500 | |||||||||||||||||||||
NJ RISE Program | Minimum | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Approved equity capital structure, percentage | 6.74% | |||||||||||||||||||||
NJ RISE Program | Maximum | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Approved equity capital structure, percentage | 6.90% | |||||||||||||||||||||
NJ RISE And SAFE II Capital Investments | NJNG | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Capital investment costs | $ 3,400 | |||||||||||||||||||||
SAFE II and NJ RISE | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Approved rate increase (decrease), amount | $ 269 | |||||||||||||||||||||
Infrastructure Investment Program (IIP) | NJNG | ||||||||||||||||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||||||||||||||||
Program recovery term | 5 years | 5 years | ||||||||||||||||||||
Number of project components | lease | 2 | |||||||||||||||||||||
Public utilities, investments | $ 507,000 | $ 150,000 |
REGULATION - REGULATORY ASSETS
REGULATION - REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | $ 40,086 | $ 30,118 |
Regulatory liability-current | 31,090 | 28,007 |
Regulatory liabilities-noncurrent | 185,634 | 193,051 |
NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 40,086 | 29,701 |
Regulatory assets-noncurrent | 495,300 | 519,600 |
Regulatory liability-current | 25,779 | 28,007 |
Regulatory liabilities-noncurrent | 185,634 | 191,888 |
Adelphia | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 0 | 417 |
Regulatory assets-noncurrent | 5,366 | 2,499 |
Regulatory liability-current | 5,311 | 0 |
Regulatory liabilities-noncurrent | 0 | 1,163 |
Overrecovered natural gas costs | NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liability-current | 17,807 | 5,510 |
Derivatives at fair value, net | NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liability-current | 7,972 | 22,497 |
Regulatory liabilities-noncurrent | 116 | 1,166 |
Tax Act impact | NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 185,367 | 190,386 |
Other noncurrent regulatory liabilities | NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 151 | 336 |
New Jersey Clean Energy Program | NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 15,697 | 16,308 |
Conservation Incentive Program | NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 23,099 | 11,839 |
Other current regulatory assets | NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 1,290 | 1,554 |
Regulatory assets-noncurrent | 45,828 | 32,695 |
Expended, net of recoveries | NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 66,149 | 58,483 |
Liability for future expenditures | NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 127,070 | 135,012 |
Deferred income taxes | NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 40,520 | 39,694 |
SAVEGREEN | NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 52,690 | 32,941 |
Postemployment and other benefit costs | NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 56,021 | 117,194 |
Deferred storm damage costs | NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 2,172 | 4,343 |
Cost of removal | NJNG | ||
Schedule of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | $ 104,850 | $ 99,238 |
DERIVATIVE INSTRUMENTS - BALANC
DERIVATIVE INSTRUMENTS - BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Fair Value | ||
Derivative assets, current | $ 24,635 | $ 35,251 |
Derivative liability, Current | 49,848 | 87,145 |
Derivative assets, noncurrent | 6,385 | 3,403 |
Derivative liabilities, noncurrent | 14,191 | 13,497 |
Not Designated as Hedging Instrument | ||
Fair Value | ||
Derivative assets | 31,020 | 38,654 |
Derivative liabilities | 64,039 | 100,642 |
Natural Gas Distribution | Not Designated as Hedging Instrument | Physical commodity contracts | ||
Fair Value | ||
Derivative assets, current | 252 | 36 |
Derivative liability, Current | 11 | 16 |
Natural Gas Distribution | Not Designated as Hedging Instrument | Financial commodity contracts | ||
Fair Value | ||
Derivative assets, current | 85 | 2,046 |
Derivative liability, Current | 6,281 | 13 |
Energy Services | Not Designated as Hedging Instrument | Physical commodity contracts | ||
Fair Value | ||
Derivative assets, current | 9,857 | 2,818 |
Derivative liability, Current | 17,051 | 24,592 |
Derivative assets, noncurrent | 376 | 333 |
Derivative liabilities, noncurrent | 13,561 | 13,237 |
Energy Services | Not Designated as Hedging Instrument | Financial commodity contracts | ||
Fair Value | ||
Derivative assets, current | 14,423 | 30,226 |
Derivative liability, Current | 26,488 | 62,521 |
Derivative assets, noncurrent | 6,009 | 3,068 |
Derivative liabilities, noncurrent | 630 | 260 |
Energy Services | Not Designated as Hedging Instrument | Foreign currency contracts | ||
Fair Value | ||
Derivative assets, current | 18 | 125 |
Derivative liability, Current | 17 | 3 |
Derivative assets, noncurrent | 0 | 2 |
Derivative liabilities, noncurrent | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - OFFSET
DERIVATIVE INSTRUMENTS - OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Energy Services | ||
Derivative assets: | ||
Amounts Presented on Balance Sheets | $ 30,683 | $ 36,572 |
Offsetting Derivative Instruments | (12,619) | (34,191) |
Financial Collateral Received/Pledged | (200) | 19,832 |
Net Amounts | 17,864 | 22,213 |
Derivative liabilities: | ||
Amounts Presented on Balance Sheets | 57,747 | 100,613 |
Offsetting Derivative Instruments | (12,619) | (34,191) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 45,128 | 66,422 |
Energy Services | Physical commodity contracts | ||
Derivative assets: | ||
Amounts Presented on Balance Sheets | 10,233 | 3,151 |
Offsetting Derivative Instruments | (404) | (894) |
Financial Collateral Received/Pledged | (200) | (700) |
Net Amounts | 9,629 | 1,557 |
Derivative liabilities: | ||
Amounts Presented on Balance Sheets | 30,612 | 37,829 |
Offsetting Derivative Instruments | (404) | (894) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 30,208 | 36,935 |
Energy Services | Financial commodity contracts | ||
Derivative assets: | ||
Amounts Presented on Balance Sheets | 20,432 | 33,294 |
Offsetting Derivative Instruments | (12,198) | (33,294) |
Financial Collateral Received/Pledged | 0 | 20,532 |
Net Amounts | 8,234 | 20,532 |
Derivative liabilities: | ||
Amounts Presented on Balance Sheets | 27,118 | 62,781 |
Offsetting Derivative Instruments | (12,198) | (33,294) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 14,920 | 29,487 |
Energy Services | Foreign currency contracts | ||
Derivative assets: | ||
Amounts Presented on Balance Sheets | 18 | 127 |
Offsetting Derivative Instruments | (17) | (3) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 1 | 124 |
Derivative liabilities: | ||
Amounts Presented on Balance Sheets | 17 | 3 |
Offsetting Derivative Instruments | (17) | (3) |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | 0 | 0 |
Natural Gas Distribution | ||
Derivative assets: | ||
Amounts Presented on Balance Sheets | 337 | 2,082 |
Offsetting Derivative Instruments | (85) | (21) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 252 | 2,061 |
Derivative liabilities: | ||
Amounts Presented on Balance Sheets | 6,292 | 29 |
Offsetting Derivative Instruments | (85) | (21) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 6,207 | 8 |
Natural Gas Distribution | Physical commodity contracts | ||
Derivative assets: | ||
Amounts Presented on Balance Sheets | 252 | 36 |
Offsetting Derivative Instruments | 0 | (8) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 252 | 28 |
Derivative liabilities: | ||
Amounts Presented on Balance Sheets | 11 | 16 |
Offsetting Derivative Instruments | 0 | (8) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 11 | 8 |
Natural Gas Distribution | Financial commodity contracts | ||
Derivative assets: | ||
Amounts Presented on Balance Sheets | 85 | 2,046 |
Offsetting Derivative Instruments | (85) | (13) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 0 | 2,033 |
Derivative liabilities: | ||
Amounts Presented on Balance Sheets | 6,281 | 13 |
Offsetting Derivative Instruments | (85) | (13) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | $ 6,196 | $ 0 |
DERIVATIVE INSTRUMENTS - INCOME
DERIVATIVE INSTRUMENTS - INCOME STATEMENT RELATED DISCLOSURES (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | $ 9,400 | $ (12,696) | $ 56,705 |
Energy Services | Physical commodity contracts | Operating revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonutility | Nonutility | Nonutility |
Amount of gain (loss) recognized in income on derivatives | $ (8,569) | $ 30,011 | $ 1,163 |
Energy Services | Physical commodity contracts | Natural gas purchases | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gas purchases - Utility and Nonutility | Gas purchases - Utility and Nonutility | Gas purchases - Utility and Nonutility |
Amount of gain (loss) recognized in income on derivatives | $ 3,580 | $ 1,052 | $ (3,366) |
Energy Services | Financial commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | 14,403 | (43,997) | 58,949 |
Energy Services | Foreign currency contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | (14) | 238 | (41) |
Natural Gas Distribution | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | 39,984 | 34,899 | (1,826) |
Natural Gas Distribution | Physical commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | 7,116 | 2,174 | 2,077 |
Natural Gas Distribution | Financial commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | $ 32,868 | $ 32,725 | $ (3,903) |
DERIVATIVE INSTRUMENTS - ADDITI
DERIVATIVE INSTRUMENTS - ADDITIONAL INFORMATION (Details) $ in Thousands, certificate in Millions | 12 Months Ended | |
Sep. 30, 2022 USD ($) certificate | Sep. 30, 2021 USD ($) certificate | |
Derivative [Line Items] | ||
Derivative, net liability position, aggregate fair value | $ 161 | |
Treasury lock | Interest expense | ||
Derivative [Line Items] | ||
Amount of pre-tax gain (loss) reclassified from OCI into income | (1,371) | $ (1,371) |
Foreign currency contracts | ||
Derivative [Line Items] | ||
Notional amount | $ (1) | $ (123) |
Physical commodity contracts | Energy Services | ||
Derivative [Line Items] | ||
Number of SRECs (in certificates) | certificate | (1.2) | (1.4) |
DERIVATIVE INSTRUMENTS - EFFECT
DERIVATIVE INSTRUMENTS - EFFECT OF DERIVATIVE INSTRUMENTS DESIGNATED AS CASH FLOW HEDGES ON OCI (Details) (Details) - Treasury lock - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | ||
Amount of pre-tax gain (loss) recognized in OCI on derivatives | $ 0 | $ 0 |
Interest expense | ||
Derivative [Line Items] | ||
Amount of pre-tax gain (loss) reclassified from OCI into income | $ (1,371) | $ (1,371) |
DERIVATIVE INSTRUMENTS - VOLUME
DERIVATIVE INSTRUMENTS - VOLUME (Details) - Bcf | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Natural Gas Distribution | Long | Futures | ||
Derivative [Line Items] | ||
Notional amount | 30.5 | 22.2 |
Natural Gas Distribution | Long | Physical commodity contracts | ||
Derivative [Line Items] | ||
Notional amount | 6.8 | 7.6 |
Energy Services | Long | Physical commodity contracts | ||
Derivative [Line Items] | ||
Notional amount | 2.7 | 0.6 |
Energy Services | Short | Futures | ||
Derivative [Line Items] | ||
Notional amount | (0.7) | (13.4) |
Energy Services | Short | Swaps | ||
Derivative [Line Items] | ||
Notional amount | 0 | (0.3) |
DERIVATIVE INSTRUMENTS - BROKER
DERIVATIVE INSTRUMENTS - BROKER MARGIN DEPOSITS (Details) - Assets, Current - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Natural Gas Distribution | ||
Derivative [Line Items] | ||
Broker margin - Current assets | $ 26,138 | $ 2,790 |
Energy Services | ||
Derivative [Line Items] | ||
Broker margin - Current assets | $ 68,123 | $ 70,050 |
DERIVATIVE INSTRUMENTS - CREDIT
DERIVATIVE INSTRUMENTS - CREDIT RISK EXPOSURE (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | $ 274,947 |
Investment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | 182,138 |
Noninvestment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | 30,105 |
Internally-rated investment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | 17,113 |
Internally-rated noninvestment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | $ 45,591 |
FAIR VALUE - DEBT (Details)
FAIR VALUE - DEBT (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance leases | $ 30,290 | $ 20,100 |
NJNG | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance leases | 30,290 | |
Debt issuance costs | 9,528 | 9,093 |
NJR | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt issuance costs | 3,800 | 3,300 |
Level 2 | NJNG | Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 1,292,845 | 1,092,845 |
Level 2 | NJNG | Fair market value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 979,388 | 1,188,261 |
Level 2 | NJR | Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 1,070,000 | 1,010,000 |
Level 2 | NJR | Fair market value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 966,968 | $ 1,100,283 |
FAIR VALUE - ADDITIONAL INFORMA
FAIR VALUE - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Solar Asset Financing | Fair market value | Clean Energy Ventures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 124.1 | $ 132.5 |
FAIR VALUE - HIERARCHY (Details
FAIR VALUE - HIERARCHY (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Assets | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities and Equity | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Assets | |
Fair Value, Measurements, Recurring | ||
Assets | ||
Other | $ 1,884 | $ 1,815 |
Total assets at fair value | 32,963 | 40,510 |
Liabilities | ||
Total liabilities at fair value | 64,039 | 100,642 |
Fair Value, Measurements, Recurring | Money market funds | ||
Assets | ||
Assets | 59 | 41 |
Fair Value, Measurements, Recurring | Physical commodity contracts | ||
Assets | ||
Assets | 10,485 | 3,187 |
Liabilities | ||
liabilities | 30,623 | 37,845 |
Fair Value, Measurements, Recurring | Financial commodity contracts | ||
Assets | ||
Assets | 20,517 | 35,340 |
Liabilities | ||
liabilities | 33,399 | 62,794 |
Fair Value, Measurements, Recurring | Foreign currency contracts | ||
Assets | ||
Assets | 18 | 127 |
Liabilities | ||
liabilities | 17 | 3 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Other | 1,884 | 1,815 |
Total assets at fair value | 22,460 | 37,196 |
Liabilities | ||
Total liabilities at fair value | 33,231 | 62,188 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Assets | ||
Assets | 59 | 41 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Physical commodity contracts | ||
Assets | ||
Assets | 0 | 0 |
Liabilities | ||
liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Financial commodity contracts | ||
Assets | ||
Assets | 20,517 | 35,340 |
Liabilities | ||
liabilities | 33,231 | 62,188 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency contracts | ||
Assets | ||
Assets | 0 | 0 |
Liabilities | ||
liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Other | 0 | 0 |
Total assets at fair value | 10,503 | 3,314 |
Liabilities | ||
Total liabilities at fair value | 30,808 | 38,454 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Physical commodity contracts | ||
Assets | ||
Assets | 10,485 | 3,187 |
Liabilities | ||
liabilities | 30,623 | 37,845 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Financial commodity contracts | ||
Assets | ||
Assets | 0 | 0 |
Liabilities | ||
liabilities | 168 | 606 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign currency contracts | ||
Assets | ||
Assets | 18 | 127 |
Liabilities | ||
liabilities | 17 | 3 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Other | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities | ||
Total liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Money market funds | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Physical commodity contracts | ||
Assets | ||
Assets | 0 | 0 |
Liabilities | ||
liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Financial commodity contracts | ||
Assets | ||
Assets | 0 | 0 |
Liabilities | ||
liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign currency contracts | ||
Assets | ||
Assets | 0 | 0 |
Liabilities | ||
liabilities | $ 0 | $ 0 |
INVESTMENTS IN EQUITY INVESTE_3
INVESTMENTS IN EQUITY INVESTEES (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) mi | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Investments in equity investees | $ 106,571 | $ 114,529 | ||
Impairment of equity method investment | $ 92,000 | 0 | 92,000 | $ 0 |
Other than temporary impairment, net of tax | $ 74,500 | |||
Steckman Ridge | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in equity investees | 106,571 | 109,050 | ||
Total outstanding principal balance of loans | $ 70,400 | 70,400 | ||
Ownership percentage | 50% | |||
PennEast | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in equity investees | $ 0 | $ 5,479 | ||
Ownership percentage | 20% | |||
Construction plan, project area (in miles) | mi | 120 | |||
PennEast | PennEast | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in equity investees | $ 0 | |||
Distribution | $ 11,000 |
INVESTMENTS IN EQUITY INVESTE_4
INVESTMENTS IN EQUITY INVESTEES - FINANCIAL INFORMATION FOR STECKMAN RIDGE AND PENNEAST (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | |||
Operating revenues | $ 2,905,979 | $ 2,156,613 | $ 1,953,668 |
Net income | 274,922 | 117,890 | 163,007 |
Assets | |||
Current assets | 756,087 | 634,274 | |
Liabilities | |||
Current liabilities | 1,104,153 | 1,051,410 | |
Noncurrent liabilities | 854,651 | 877,842 | |
Steckman Ridge | |||
Income Statement [Abstract] | |||
Operating revenues | 19,812 | 21,847 | 28,814 |
Gross profit | 11,349 | 13,350 | 20,537 |
Income from continuing operations | 8,686 | 11,483 | 16,926 |
Net income | 8,686 | 11,483 | 16,926 |
Net (loss) income attributable to NJR | 4,343 | 5,741 | 8,463 |
Assets | |||
Current assets | 28,609 | 14,786 | |
Noncurrent assets | 198,052 | 202,670 | |
Liabilities | |||
Current liabilities | 23,618 | 9,738 | |
Noncurrent liabilities | 140,810 | 140,810 | |
PennEast | |||
Income Statement [Abstract] | |||
Operating revenues | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 |
Income from continuing operations | (3,778) | (406,305) | 34,376 |
Net income | (3,778) | (406,305) | 34,376 |
Net (loss) income attributable to NJR | (756) | (81,261) | $ 6,875 |
Assets | |||
Current assets | 1,801 | 822 | |
Noncurrent assets | 0 | 44,998 | |
Liabilities | |||
Current liabilities | 82 | 248 | |
Noncurrent liabilities | $ 500 | $ 500 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income, as reported | $ 274,922 | $ 117,890 | $ 163,007 |
Basic earnings per share | |||
Weighted average shares of common stock outstanding-basic (in shares) | 96,100,000 | 96,227,000 | 94,798,000 |
Basic earnings per common share (usd per share) | $ 2.86 | $ 1.23 | $ 1.72 |
Diluted earnings per share | |||
Weighted average shares of common stock outstanding-basic (in shares) | 96,100,000 | 96,227,000 | 94,798,000 |
Incremental shares (in shares) | 388,000 | 333,000 | 305,000 |
Weighted average shares of common stock outstanding-diluted (in shares) | 96,488,000 | 96,560,000 | 95,103,000 |
Diluted earnings per common share (usd per share) | $ 2.85 | $ 1.22 | $ 1.71 |
Share-based Payment Arrangement | |||
Diluted earnings per share | |||
Anti-dilutive securities excluded from the calculation of diluted earnings per share (in shares) | 0 | 0 | 74,000 |
DEBT - SCHEDULE OF LONG-TERM DE
DEBT - SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 16, 2022 | Jun. 23, 2022 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||||
Finance lease liabilities | $ 23,752 | $ 14,742 | ||
Total long-term debt | 2,485,402 | 2,162,164 | ||
NJNG | ||||
Debt Instrument [Line Items] | ||||
Less: Debt issuance costs | (9,528) | (9,093) | ||
Less: Current maturities of long-term debt | (6,538) | (5,393) | ||
Total long-term debt | 1,307,069 | 1,098,494 | ||
NJNG | Finance lease obligation-meters | ||||
Debt Instrument [Line Items] | ||||
Finance lease liabilities | $ 30,290 | 20,135 | ||
NJNG | First mortgage bonds | Series OO | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3% | |||
Long-term debt | $ 46,500 | 46,500 | ||
NJNG | First mortgage bonds | Series PP | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.15% | |||
Long-term debt | $ 50,000 | 50,000 | ||
NJNG | First mortgage bonds | Series QQ | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.58% | |||
Long-term debt | $ 70,000 | 70,000 | ||
NJNG | First mortgage bonds | Series RR | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.61% | |||
Long-term debt | $ 55,000 | 55,000 | ||
NJNG | First mortgage bonds | Series SS | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.82% | |||
Long-term debt | $ 50,000 | 50,000 | ||
NJNG | First mortgage bonds | Series TT | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.66% | |||
Long-term debt | $ 100,000 | 100,000 | ||
NJNG | First mortgage bonds | Series UU | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.63% | |||
Long-term debt | $ 125,000 | 125,000 | ||
NJNG | First mortgage bonds | Series VV | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.01% | |||
Long-term debt | $ 125,000 | 125,000 | ||
NJNG | First mortgage bonds | Series WW | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.50% | |||
Long-term debt | $ 10,300 | 10,300 | ||
NJNG | First mortgage bonds | Series XX | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.38% | |||
Long-term debt | $ 10,500 | 10,500 | ||
NJNG | First mortgage bonds | Series YY | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.45% | |||
Long-term debt | $ 15,000 | 15,000 | ||
NJNG | First mortgage bonds | Series ZZ | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.76% | |||
Long-term debt | $ 100,000 | 100,000 | ||
NJNG | First mortgage bonds | Series AAA | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.86% | |||
Long-term debt | $ 85,000 | 85,000 | ||
NJNG | First mortgage bonds | Series BBB | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.75% | |||
Long-term debt | $ 9,545 | 9,545 | ||
NJNG | First mortgage bonds | Series CCC | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3% | |||
Long-term debt | $ 41,000 | 41,000 | ||
NJNG | First mortgage bonds | Series DDD | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.13% | |||
Long-term debt | $ 50,000 | 50,000 | ||
NJNG | First mortgage bonds | Series EEE | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.13% | |||
Long-term debt | $ 50,000 | 50,000 | ||
NJNG | First mortgage bonds | Series FFF | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.33% | |||
Long-term debt | $ 25,000 | 25,000 | ||
NJNG | First mortgage bonds | Series GGG | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.87% | |||
Long-term debt | $ 25,000 | 25,000 | ||
NJNG | First mortgage bonds | Series HHH | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.97% | |||
Long-term debt | $ 50,000 | 50,000 | ||
NJNG | First mortgage bonds | Series III | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.97% | |||
Long-term debt | $ 50,000 | 0 | ||
NJNG | First mortgage bonds | Series JJJ | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.07% | |||
Long-term debt | $ 50,000 | 0 | ||
NJNG | First mortgage bonds | Series LLL | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.37% | |||
Long-term debt | $ 50,000 | 0 | ||
NJNG | First mortgage bonds | Series MMM | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.71% | |||
Long-term debt | $ 50,000 | 0 | ||
NJR | ||||
Debt Instrument [Line Items] | ||||
Less: Debt issuance costs | (3,753) | (3,269) | ||
Less: Current maturities of long-term debt | (50,000) | (50,000) | ||
Total long-term debt | $ 1,066,247 | 956,731 | ||
NJR | Unsecured senior notes 3.25% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.25% | |||
Long-term debt | $ 0 | 50,000 | ||
NJR | Unsecured senior notes 3.20% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.20% | |||
Long-term debt | $ 50,000 | 50,000 | ||
NJR | Unsecured senior notes 3.48% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.48% | |||
Long-term debt | $ 100,000 | 100,000 | ||
NJR | Unsecured senior notes 3.54% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.54% | |||
Long-term debt | $ 100,000 | 100,000 | ||
NJR | Unsecured senior notes 3.96% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.96% | |||
Long-term debt | $ 100,000 | 100,000 | ||
NJR | Unsecured senior notes 3.29% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.29% | |||
Long-term debt | $ 150,000 | 150,000 | ||
NJR | Unsecured senior note 3.60% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.60% | |||
Long-term debt | $ 130,000 | 130,000 | ||
NJR | Unsecured senior note 3.50% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.50% | |||
Long-term debt | $ 130,000 | 130,000 | ||
NJR | Unsecured senior notes 3.25% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.25% | |||
Long-term debt | $ 80,000 | 80,000 | ||
NJR | Unsecured senior note 3.13% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.13% | |||
Long-term debt | $ 120,000 | 120,000 | ||
NJR | Unsecured senior notes 4.38% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.38% | 4.38% | ||
Long-term debt | $ 110,000 | $ 110,000 | 0 | |
NJR | Unsecured senior notes 3.64% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.64% | 3.64% | ||
Long-term debt | $ 50,000 | $ 50,000 | 0 | |
Clean Energy Ventures | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 130,618 | 124,387 | ||
Less: Current maturities of long-term debt | (18,532) | (17,448) | ||
Total Clean Energy Ventures long-term debt | $ 112,086 | $ 106,939 |
DEBT - REDEMPTION REQUIREMENTS
DEBT - REDEMPTION REQUIREMENTS (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
NJR | |
Debt Instrument [Line Items] | |
2023 | $ 50,000 |
2024 | 0 |
2025 | 100,000 |
2026 | 100,000 |
2027 | 110,000 |
Thereafter | 760,000 |
NJNG | |
Debt Instrument [Line Items] | |
2023 | 0 |
2024 | 70,000 |
2025 | 50,000 |
2026 | 0 |
2027 | 0 |
Thereafter | $ 1,172,845 |
DEBT - NJR LONG-TERM DEBT (Deta
DEBT - NJR LONG-TERM DEBT (Details) - NJR - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 16, 2022 | Jun. 23, 2022 | Sep. 30, 2021 |
Unsecured senior notes 4.38% | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 110,000 | $ 110,000 | $ 0 | |
Stated interest rate | 4.38% | 4.38% | ||
Unsecured senior notes 3.64% | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 50,000 | $ 50,000 | $ 0 | |
Stated interest rate | 3.64% | 3.64% |
DEBT - FIRST MORTGAGE BONDS (De
DEBT - FIRST MORTGAGE BONDS (Details) - NJNG | Oct. 24, 2022 USD ($) | Sep. 30, 2022 USD ($) | May 27, 2022 USD ($) | Oct. 28, 2021 USD ($) |
Debt Instrument [Line Items] | ||||
NJBPU dividend restriction, equity to capitalization ratio | 0.30 | |||
Debt to equity ratio | 0.537 | |||
First mortgage bonds | ||||
Debt Instrument [Line Items] | ||||
Maximum amount that can be issued | $ 1,300,000,000 | |||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 100,000,000 | $ 100,000,000 | ||
Senior Notes | Fixed Interest Rate Maturing 2051 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 50,000,000 | |||
Stated interest rate | 2.97% | |||
Senior Notes | Fixed Interest Rate Maturing 2061 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 50,000,000 | |||
Stated interest rate | 3.07% | |||
Senior Notes | Fixed Interest Rate Maturing 2037 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 50,000,000 | |||
Stated interest rate | 4.37% | |||
Senior Notes | Fixed Interest Rate Maturing 2052 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 50,000,000 | |||
Stated interest rate | 4.71% | |||
Senior Notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 125,000,000 | |||
Senior Notes | Subsequent Event | Fixed Interest Rate Maturing 2052 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.47% |
DEBT - SALE-LEASEBACKS (Details
DEBT - SALE-LEASEBACKS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | |||
Proceeds from sale leaseback transaction | $ 17,300 | $ 0 | $ 4,000 |
NJNG | |||
Debt Instrument [Line Items] | |||
Proceeds from sale leaseback transaction | 17,300 | 0 | $ 4,000 |
Payments for sale leaseback transaction | $ 1,100 | $ 1,200 | |
NJNG | Minimum | |||
Debt Instrument [Line Items] | |||
Term of lease | 7 years | ||
NJNG | Maximum | |||
Debt Instrument [Line Items] | |||
Term of lease | 11 years |
DEBT - CONTRACTUAL COMMITMENTS
DEBT - CONTRACTUAL COMMITMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Finance Leases | ||
2023 | $ 7,252 | |
2024 | 7,909 | |
2025 | 6,026 | |
2026 | 4,955 | |
2027 | 2,630 | |
Thereafter | 3,262 | |
Total future lease payments | 32,034 | |
Less: Interest component | (1,744) | |
Total lease liability | 30,290 | $ 20,100 |
NJNG | ||
Finance Leases | ||
2023 | 7,252 | |
2024 | 7,909 | |
2025 | 6,026 | |
2026 | 4,955 | |
2027 | 2,630 | |
Thereafter | 3,262 | |
Total future lease payments | 32,034 | |
Less: Interest component | (1,744) | |
Total lease liability | 30,290 | |
Clean Energy Ventures | ||
Sale Leaseback Transaction, Net Book Value | ||
2023 | 15,755 | |
2024 | 43,000 | |
2025 | 39,629 | |
2026 | 2,841 | |
2027 | 5,352 | |
Thereafter | 16,442 | |
Subtotal | 123,019 | |
Less: Interest component | (11,443) | |
Total | $ 111,576 |
DEBT - CLEAN ENERGY VENTURES (D
DEBT - CLEAN ENERGY VENTURES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | |||
Proceeds from sale leaseback transactions - solar | $ 24,071 | $ 17,673 | $ 42,927 |
Clean Energy Ventures | |||
Debt Instrument [Line Items] | |||
Proceeds from sale leaseback transactions - solar | $ 24,100 | $ 17,700 | $ 42,900 |
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 |
DEBT - CREDIT FACILITIES AND SH
DEBT - CREDIT FACILITIES AND SHORT-TERM DEBT, ADDITIONAL INFORMATION (Details) - Term Loan - Committed Credit Facilities Due February 2023 - NJR - USD ($) | Feb. 08, 2022 | Sep. 30, 2022 | Feb. 14, 2022 | Feb. 09, 2022 | Sep. 30, 2021 |
Debt Conversion [Line Items] | |||||
Bank revolving credit facilities | $ 150,000,000 | $ 150,000,000 | $ 0 | ||
Amount borrowed | $ 100,000,000 | $ 50,000,000 | |||
SOFR | |||||
Debt Conversion [Line Items] | |||||
Basis spread on variable rate | 0.85% |
DEBT - CREDIT FACILITIES AND _2
DEBT - CREDIT FACILITIES AND SHORT-TERM DEBT (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2022 | Aug. 30, 2022 | Feb. 08, 2022 | Sep. 30, 2021 | |
NJR | Letters of Credit on Behalf of NJRES | ||||
Short-term Debt [Line Items] | ||||
Letters of credit outstanding, amount | $ 9,700,000 | $ 10,600,000 | ||
NJR | Revolving Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Commitment fee percentage | 0.10% | |||
NJNG | Letter of Credit | ||||
Short-term Debt [Line Items] | ||||
Letters of credit outstanding, amount | $ 731,000 | 731,000 | ||
NJNG | Revolving Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Commitment fee percentage | 0.075% | |||
Revolving Credit Facility | NJR | Committed Credit Facilities Due September 2027 | ||||
Short-term Debt [Line Items] | ||||
Bank revolving credit facilities | $ 650,000,000 | $ 650,000,000 | 500,000,000 | |
Amount outstanding at end of period | $ 200,150,000 | $ 219,100,000 | ||
Weighted average interest rate at end of period | 3.97% | 1.05% | ||
Amount available at end of period | $ 440,177,000 | $ 270,312,000 | ||
Revolving Credit Facility | NJNG | Committed Credit Facilities Due September 2027 | ||||
Short-term Debt [Line Items] | ||||
Bank revolving credit facilities | 250,000,000 | 250,000,000 | ||
Amount outstanding at end of period | $ 73,800,000 | $ 158,200,000 | ||
Weighted average interest rate at end of period | 3.34% | 0.17% | ||
Amount available at end of period | $ 175,469,000 | $ 91,069,000 | ||
Term Loan | NJR | Committed Credit Facilities Due February 2023 | ||||
Short-term Debt [Line Items] | ||||
Bank revolving credit facilities | 150,000,000 | $ 150,000,000 | 0 | |
Amount outstanding at end of period | $ 150,000,000 | $ 0 | ||
Weighted average interest rate at end of period | 3.81% | 0% | ||
Amount available at end of period | $ 0 | $ 0 |
DEBT - NJR SHORT-TERM DEBT (Det
DEBT - NJR SHORT-TERM DEBT (Details) - NJR | 12 Months Ended | ||
Sep. 30, 2021 USD ($) mutualOption | Sep. 30, 2022 USD ($) debtInstrument | Aug. 30, 2022 USD ($) | |
Letters of Credit on Behalf of NJRES | |||
Short-term Debt [Line Items] | |||
Number of debt instruments (in debt instruments) | debtInstrument | 7 | ||
Letters of credit outstanding, amount | $ 10,600,000 | $ 9,700,000 | |
Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Number of mutual options | mutualOption | 2 | ||
Number of mutual options, extension period | 1 year | ||
Line of credit facility, maximum borrowing capacity, incremental increase | $ 50,000,000 | ||
Line of credit facility, maximum borrowing capacity, maximum increase | 250,000,000 | ||
Revolving Credit Facility | Swingline Loan | |||
Short-term Debt [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 60,000,000 | $ 70,000,000 | |
Line of Credit | |||
Short-term Debt [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 75,000,000 | ||
Committed Credit Facilities Due September 2026 | Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 500,000,000 | ||
Committed Credit Facilities Due September 2027 | Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | $ 650,000,000 | $ 650,000,000 |
DEBT - NJNG SHORT-TERM DEBT (De
DEBT - NJNG SHORT-TERM DEBT (Details) - NJNG | 12 Months Ended | |
Sep. 30, 2021 USD ($) lease | Sep. 30, 2022 USD ($) debtInstrument | |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Number of debt instruments (in debt instruments) | debtInstrument | 2 | |
Letters of credit outstanding, amount | $ 731,000 | $ 731,000 |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Number of mutual options | lease | 2 | |
Number of mutual options, extension period | 1 year | |
Line of credit facility, maximum borrowing capacity, incremental increase | $ 50,000,000 | |
Line of credit facility, maximum borrowing capacity, maximum increase | 100,000,000 | |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 30,000,000 | |
Committed Credit Facilities Due September 2026 | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 250,000,000 |
STOCK-BASED COMPENSATION - NARR
STOCK-BASED COMPENSATION - NARRATIVE (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future issuance (in shares) | 2,918,487 | |||
Performance Shares, Market Condition Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 44,965 | 46,813 | 33,123 | |
Performance Shares, Subject to Performance Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 73,561 | 70,138 | 48,941 | |
Deferred compensation related to unvested performance shares, period | 1 year 8 months 12 days | |||
Performance Shares, Subject to Performance Conditions | Vesting September 30, 2024 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 44,596 | |||
Performance Shares, Subject to Performance Conditions | Vesting Annually Over Three Year Period Beginning September 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 28,965 | |||
Award vesting period | 3 years | |||
Performance Shares, Subject to Performance Conditions | Vesting September 30, 2023 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 44,156 | |||
Performance Shares, Subject to Performance Conditions | Vesting Annually Over Three Year Period Beginning September 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 25,982 | |||
Award vesting period | 3 years | |||
Performance Shares, Subject to Performance Conditions | Vesting September 30, 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 30,473 | |||
Performance Shares, Subject to Performance Conditions | Vesting Annually Over Three Year Period Beginning September 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 18,468 | |||
Award vesting period | 3 years | |||
Performance share awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 192,121 | 166,091 | 155,731 | 130,509 |
Deferred compensation related to unvested restricted and performance shares | $ 4.4 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 97,824 | 101,621 | 73,486 | 58,156 |
Deferred compensation related to unvested restricted and performance shares | $ 1 | |||
Deferred compensation related to unvested performance shares, period | 1 year 9 months 18 days | |||
Restricted Stock | Vesting Annually Over Three Year Period Beginning October 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 54,826 | |||
Award vesting period | 3 years | |||
Restricted Stock | Vesting Annually Over Three Year Period Beginning October 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 67,726 | |||
Award vesting period | 3 years | |||
Restricted Stock | Vesting Annually Over Three Year Period Beginning October 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 42,478 | |||
Award vesting period | 3 years |
STOCK-BASED COMPENSATION - STOC
STOCK-BASED COMPENSATION - STOCK-BASED COMPENSATION EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense included in operation and maintenance expense | $ 14,827 | $ 7,149 | $ 6,536 |
Income tax benefit | (3,624) | (1,613) | (1,900) |
Total, net of tax | 11,203 | 5,536 | 4,636 |
Taxes related to stock-based compensation | (144) | (159) | 647 |
Performance share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense included in operation and maintenance expense | 4,131 | 3,856 | 1,943 |
Restricted and non-restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense included in operation and maintenance expense | 3,189 | 3,193 | 2,868 |
Deferred retention stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense included in operation and maintenance expense | $ 7,507 | $ 100 | $ 1,725 |
STOCK-BASED COMPENSATION - PERF
STOCK-BASED COMPENSATION - PERFORMANCE SHARES AND RESTRICTED STOCK ACTIVITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Nov. 09, 2022 | Nov. 10, 2021 | Nov. 09, 2020 | |
Performance share awards | ||||||
Shares | ||||||
Outstanding at beginning of period (in shares) | 166,091 | 155,731 | 130,509 | |||
Granted (in shares) | 118,526 | 116,951 | 82,064 | |||
Vested (in shares) | (76,708) | (54,918) | (55,025) | |||
Cancelled/forfeited (in shares) | (15,788) | (51,673) | (1,817) | |||
Outstanding at end of period (in shares) | 192,121 | 166,091 | 155,731 | |||
Weighted Average Grant Date Fair Value | ||||||
Outstanding at beginning of period (in dollars per share) | $ 36.08 | $ 44.22 | $ 46.53 | |||
Granted (in dollars per share) | 38.84 | 33.34 | 40.61 | |||
Vested (in dollars per share) | 39.57 | 44.64 | 44.27 | |||
Cancelled/forfeited (in dollars per share) | 37.33 | 45.32 | 44.38 | |||
Outstanding at end of period (in dollars per share) | $ 36.29 | $ 36.08 | $ 44.22 | |||
Total Fair Value of Vested Shares | ||||||
Total Fair Value of Vested Shares | $ 2,765 | $ 1,673 | $ 2,083 | |||
Percent of awards to common stock | 93% | 114% | ||||
Number of common shares issued (in shares) | 31,116 | 28,513 | ||||
Percent of awards to common stock, target | 100% | 100% | ||||
Performance share awards | Subsequent Event | ||||||
Total Fair Value of Vested Shares | ||||||
Percent of awards to common stock | 105% | |||||
Number of common shares issued (in shares) | 26,282 | |||||
Percent of awards to common stock, target | 100% | |||||
Performance share awards | Minimum | ||||||
Total Fair Value of Vested Shares | ||||||
Percent of awards to common stock | 0% | |||||
Performance share awards | Maximum | ||||||
Total Fair Value of Vested Shares | ||||||
Percent of awards to common stock | 150% | |||||
Performance Shares, Subject to Performance Conditions | ||||||
Shares | ||||||
Outstanding at beginning of period (in shares) | 70,138 | 48,941 | ||||
Outstanding at end of period (in shares) | 73,561 | 70,138 | 48,941 | |||
Total Fair Value of Vested Shares | ||||||
Number of common shares issued (in shares) | 0 | |||||
Performance-based Restricted Stock | ||||||
Total Fair Value of Vested Shares | ||||||
Percent of awards to common stock | 100% | 100% | ||||
Number of common shares issued (in shares) | 25,982 | 11,139 | ||||
Performance-based Restricted Stock | Subsequent Event | ||||||
Total Fair Value of Vested Shares | ||||||
Percent of awards to common stock | 100% | |||||
Number of common shares issued (in shares) | 28,965 | |||||
Performance Shares, TSR | ||||||
Total Fair Value of Vested Shares | ||||||
Number of common shares issued (in shares) | 0 | |||||
Performance Shares, TSR | Subsequent Event | ||||||
Total Fair Value of Vested Shares | ||||||
Percent of awards to common stock | 112% | |||||
Number of common shares issued (in shares) | 30,472 | |||||
Restricted Stock | ||||||
Shares | ||||||
Outstanding at beginning of period (in shares) | 101,621 | 73,486 | 58,156 | |||
Granted (in shares) | 54,826 | 67,726 | 42,478 | |||
Vested (in shares) | (47,867) | (34,000) | (25,973) | |||
Cancelled/forfeited (in shares) | (10,756) | (5,591) | (1,175) | |||
Outstanding at end of period (in shares) | 97,824 | 101,621 | 73,486 | |||
Weighted Average Grant Date Fair Value | ||||||
Outstanding at beginning of period (in dollars per share) | $ 36.87 | $ 43.52 | $ 46.18 | |||
Granted (in dollars per share) | 38.84 | 33.34 | 40.61 | |||
Vested (in dollars per share) | 39.01 | 44.30 | 44.71 | |||
Cancelled/forfeited (in dollars per share) | 37.06 | 36.34 | 43.62 | |||
Outstanding at end of period (in dollars per share) | $ 36.90 | $ 36.87 | $ 43.52 | |||
Total Fair Value of Vested Shares | ||||||
Total Fair Value of Vested Shares | $ 1,824 | $ 996 | $ 1,073 |
STOCK-BASED COMPENSATION - DEFE
STOCK-BASED COMPENSATION - DEFERRED RETENTION STOCK/NON-EMPLOYEE DIRECTOR STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Scheduled to Vest Immediately | Director | |||
Shares | |||
Granted (in shares) | 30,908 | 34,994 | 27,696 |
Weighted Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 39.09 | $ 35.72 | $ 42.88 |
Total Fair Value of Vested Shares | |||
Compensation costs not yet recognized | $ 300 | ||
Deferred retention stock | |||
Shares | |||
Outstanding at beginning of period (in shares) | 208,856 | 228,246 | 243,561 |
Granted/Vested (in shares) | 192,728 | 2,999 | 42,358 |
Delivered (in shares) | (163,499) | (22,389) | (57,673) |
Forfeited (in shares) | (6,818) | ||
Outstanding at end of period (in shares) | 231,267 | 208,856 | 228,246 |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of period (in dollars per share) | $ 46.28 | $ 46.32 | $ 44.67 |
Granted (in dollars per share) | 38.95 | 33.34 | 40.72 |
Vested (in dollars per share) | 38.95 | 33.34 | 40.72 |
Delivered (in dollars per share) | 47.95 | 45 | 35.25 |
Forfeited (in dollars per share) | 40.33 | ||
Outstanding at end of period (in dollars per share) | $ 39.16 | $ 46.28 | $ 46.32 |
Total Fair Value of Vested Shares | |||
Delivered | $ 6,167 | $ 641 | $ 2,423 |
EMPLOYEE BENEFIT PLANS - PENSIO
EMPLOYEE BENEFIT PLANS - PENSION AND OTHER POSTEMPLOYMENT BENEFIT PLANS, NARRATIVE (Details) | 12 Months Ended | |
Sep. 30, 2022 USD ($) plan | Sep. 30, 2021 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Number of noncontributory defined benefit retirement plans (in plans) | plan | 2 | |
Required number of years of service (more than) | 1 year | |
Years of service and average compensation, basis period for plan benefits | 60 months | |
Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer discretionary contributions | $ 0 | $ 0 |
Employer contributions | 628,000 | 548,000 |
OPEB | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer contributions | 6,082,000 | $ 7,198,000 |
OPEB | Minimum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Estimated future employer contributions over the next five years | 5,000,000 | |
OPEB | Maximum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Estimated future employer contributions over the next five years | $ 10,000,000 |
EMPLOYEE BENEFIT PLANS - SUMMAR
EMPLOYEE BENEFIT PLANS - SUMMARY OF CHANGE IN FUNDED STATUS AND LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Postemployment employee benefit liability | |||
Noncurrent | $ (82,867) | $ (169,267) | |
Pension | |||
Change in Benefit Obligation | |||
Benefit obligation at beginning of year | 395,547 | 397,164 | |
Service cost | 8,291 | 8,730 | $ 8,223 |
Interest cost | 9,632 | 9,112 | 10,587 |
Plan participants’ contributions | 59 | 27 | |
Actuarial (gain) | (109,320) | (7,319) | |
Benefits paid, net of retiree subsidies received | (13,386) | (12,167) | |
Benefit obligation at end of year | 290,823 | 395,547 | 397,164 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 355,284 | 307,968 | |
Actual (loss) return on plan assets | (58,239) | 58,874 | |
Employer contributions | 628 | 548 | |
Benefits paid, net of plan participants’ contributions | (13,326) | (12,106) | |
Fair value of plan assets at end of year | 284,347 | 355,284 | 307,968 |
Funded status | (6,476) | (40,263) | |
Postemployment employee benefit asset | |||
Noncurrent | 4,388 | 0 | |
Postemployment employee benefit liability | |||
Current | (578) | (587) | |
Noncurrent | (10,286) | (39,676) | |
Total | (6,476) | (40,263) | |
OPEB | |||
Change in Benefit Obligation | |||
Benefit obligation at beginning of year | 244,674 | 245,862 | |
Service cost | 4,305 | 4,844 | 4,854 |
Interest cost | 6,355 | 6,071 | 7,026 |
Plan participants’ contributions | 423 | 451 | |
Actuarial (gain) | (77,775) | (4,715) | |
Benefits paid, net of retiree subsidies received | (4,765) | (7,839) | |
Benefit obligation at end of year | 173,217 | 244,674 | 245,862 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 114,183 | 96,406 | |
Actual (loss) return on plan assets | (15,996) | 18,144 | |
Employer contributions | 6,082 | 7,198 | |
Benefits paid, net of plan participants’ contributions | (4,533) | (7,565) | |
Fair value of plan assets at end of year | 99,736 | 114,183 | $ 96,406 |
Funded status | (73,481) | (130,491) | |
Postemployment employee benefit asset | |||
Noncurrent | 0 | 0 | |
Postemployment employee benefit liability | |||
Current | (900) | (900) | |
Noncurrent | (72,581) | (129,591) | |
Total | $ (73,481) | $ (130,491) |
EMPLOYEE BENEFIT PLANS - REGULA
EMPLOYEE BENEFIT PLANS - REGULATORY ASSETS AND AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Pension | |||
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) | $ (8,745) | $ (11,446) | $ (10,424) |
Prior service (cost) credit | (101) | (102) | (102) |
OPEB | |||
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) | (5,684) | (7,909) | (7,442) |
Prior service (cost) credit | 144 | 179 | 197 |
Regulatory Assets | Pension | |||
Regulatory Assets and Accumulated Other Comprehensive Income (Loss) | |||
Regulatory Assets, Balance at beginning of period | 56,187 | 103,564 | |
Amounts arising during the period, Net actuarial (gain) | (14,922) | (39,006) | |
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) | (5,843) | (8,269) | |
Prior service (cost) credit | (101) | (102) | |
Regulatory Assets, Balance at end of period | 35,321 | 56,187 | 103,564 |
Regulatory Assets | OPEB | |||
Regulatory Assets and Accumulated Other Comprehensive Income (Loss) | |||
Regulatory Assets, Balance at beginning of period | 60,335 | 83,301 | |
Amounts arising during the period, Net actuarial (gain) | (35,781) | (16,286) | |
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) | (4,577) | (6,846) | |
Prior service (cost) credit | 133 | 166 | |
Regulatory Assets, Balance at end of period | 20,110 | 60,335 | 83,301 |
Accumulated Other Comprehensive Income (Loss) | Pension | |||
Regulatory Assets and Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Balance at beginning of period | 22,790 | 33,004 | |
Amounts arising during the period, Net actuarial (gain) | (14,885) | (7,036) | |
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) | (2,902) | (3,178) | |
Prior service (cost) credit | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss), Balance at end of period | 5,003 | 22,790 | 33,004 |
Accumulated Other Comprehensive Income (Loss) | OPEB | |||
Regulatory Assets and Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Balance at beginning of period | 12,696 | 13,823 | |
Amounts arising during the period, Net actuarial (gain) | (18,422) | (76) | |
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) | (1,107) | (1,064) | |
Prior service (cost) credit | 11 | 13 | |
Accumulated Other Comprehensive Income (Loss), Balance at end of period | $ (6,822) | $ 12,696 | $ 13,823 |
EMPLOYEE BENEFIT PLANS - AMOUNT
EMPLOYEE BENEFIT PLANS - AMOUNTS NOT YET RECOGNIZED AS NET PERIODIC COST (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Regulatory Assets | Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial loss (gain) | $ 35,157 | $ 55,922 | |
Prior service cost (credit) | 164 | 265 | |
Regulatory Assets, Total | 35,321 | 56,187 | $ 103,564 |
Regulatory Assets | OPEB | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial loss (gain) | 20,110 | 60,468 | |
Prior service cost (credit) | 0 | (133) | |
Regulatory Assets, Total | 20,110 | 60,335 | 83,301 |
Accumulated Other Comprehensive Income (Loss) | Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial loss (gain) | 5,003 | 22,790 | |
Prior service cost (credit) | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss), Total | 5,003 | 22,790 | 33,004 |
Accumulated Other Comprehensive Income (Loss) | OPEB | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial loss (gain) | (6,822) | 12,707 | |
Prior service cost (credit) | 0 | (11) | |
Accumulated Other Comprehensive Income (Loss), Total | $ (6,822) | $ 12,696 | $ 13,823 |
EMPLOYEE BENEFIT PLANS - AMOU_2
EMPLOYEE BENEFIT PLANS - AMOUNTS EXPECTED TO BE RECOGNIZED IN NET PERIODIC BENEFIT COST (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Pension | |
Regulatory Assets | |
Net actuarial (gain) loss | $ (36) |
Total | (36) |
Accumulated Other Comprehensive Income (Loss) | |
Net actuarial (gain) loss | 217 |
Total | 217 |
OPEB | |
Regulatory Assets | |
Net actuarial (gain) loss | 0 |
Total | 0 |
Accumulated Other Comprehensive Income (Loss) | |
Net actuarial (gain) loss | 0 |
Total | $ 0 |
EMPLOYEE BENEFIT PLANS - ACCUMU
EMPLOYEE BENEFIT PLANS - ACCUMULATED BENEFIT OBLIGATION (Details) - Pension - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 290,823 | $ 395,547 |
Accumulated benefit obligation | 265,933 | 353,852 |
Fair value of plan assets | $ 284,347 | $ 355,284 |
EMPLOYEE BENEFIT PLANS - COMPON
EMPLOYEE BENEFIT PLANS - COMPONENTS OF NET PERIODIC COST (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income, net | ||
Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 8,291 | $ 8,730 | $ 8,223 |
Interest cost | 9,632 | 9,112 | 10,587 |
Expected return on plan assets | (21,275) | (20,150) | (20,579) |
Recognized actuarial loss | 8,745 | 11,446 | 10,424 |
Prior service cost (credit) amortization | 101 | 102 | 102 |
Net periodic benefit cost recognized as expense | 5,494 | 9,240 | 8,757 |
OPEB | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 4,305 | 4,844 | 4,854 |
Interest cost | 6,355 | 6,071 | 7,026 |
Expected return on plan assets | (7,575) | (6,497) | (6,510) |
Recognized actuarial loss | 5,684 | 7,909 | 7,442 |
Prior service cost (credit) amortization | (144) | (179) | (197) |
Net periodic benefit cost recognized as expense | $ 8,625 | $ 12,148 | $ 12,615 |
EMPLOYEE BENEFIT PLANS - WEIGHT
EMPLOYEE BENEFIT PLANS - WEIGHTED AVERAGE ASSUMPTIONS (Details) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Pension | |||
Benefit costs: | |||
Expected asset return | 6.75% | 6.75% | 7.25% |
Pension | Represented | |||
Benefit costs: | |||
Discount rate | 3.10% | 2.95% | 3.37% |
Compensation increase | 3% | 3% | 3% |
Obligations: | |||
Discount rate | 5.50% | 3.10% | 2.95% |
Compensation increase | 3% | 3% | 3% |
Pension | Nonrepresented | |||
Benefit costs: | |||
Discount rate | 3.07% | 2.92% | 3.35% |
Compensation increase | 3.50% | 3.50% | 3.50% |
Obligations: | |||
Discount rate | 5.50% | 3.07% | 2.92% |
Compensation increase | 3.50% | 3.50% | 3.50% |
OPEB | |||
Benefit costs: | |||
Expected asset return | 6.75% | 6.75% | 7.25% |
OPEB | Represented | |||
Benefit costs: | |||
Discount rate | 3.24% | 3.08% | 3.48% |
Compensation increase | 3% | 3% | 3% |
Obligations: | |||
Discount rate | 5.51% | 3.24% | 3.08% |
Compensation increase | 3% | 3% | 3% |
OPEB | Nonrepresented | |||
Benefit costs: | |||
Discount rate | 3.17% | 3.03% | 3.44% |
Compensation increase | 3.50% | 3.50% | 3.50% |
Obligations: | |||
Discount rate | 5.51% | 3.17% | 3.03% |
Compensation increase | 3.50% | 3.50% | 3.50% |
EMPLOYEE BENEFIT PLANS - ASSUME
EMPLOYEE BENEFIT PLANS - ASSUMED HCCTR (Details) - OPEB - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
HCCTR | 6.60% | 6.90% | 7.60% |
Ultimate HCCTR | 4.50% | 4.50% | 4.50% |
Effect of a 1 percentage point increase in the HCCTR on: | |||
Year-end benefit obligation | $ 26,710 | $ 43,217 | $ 49,106 |
Total service and interest cost | 2,544 | 2,959 | 2,799 |
Effect of a 1 percentage point decrease in the HCCTR on: | |||
Year-end benefit obligation | (21,853) | (34,669) | (38,844) |
Total service and interest costs | $ (1,966) | $ (2,253) | $ (2,151) |
EMPLOYEE BENEFIT PLANS - MIX AN
EMPLOYEE BENEFIT PLANS - MIX AND TARGETED ALLOCATION (Details) | Sep. 30, 2022 | Sep. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100% | |
Assets | 100% | 100% |
U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 34% | |
Assets | 32% | 36% |
International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 17% | |
Assets | 16% | 17% |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 33% | |
Assets | 32% | 40% |
Collective investment trusts at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 16% | |
Assets | 20% | 7% |
EMPLOYEE BENEFIT PLANS - EXPECT
EMPLOYEE BENEFIT PLANS - EXPECTED BENEFIT PAYMENTS (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023 | $ 14,112 |
2024 | 15,143 |
2025 | 16,150 |
2026 | 17,137 |
2027 | 18,104 |
2028 - 2032 | 104,614 |
OPEB | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023 | 6,878 |
2024 | 7,508 |
2025 | 8,220 |
2026 | 8,938 |
2027 | 9,656 |
2028 - 2032 | $ 57,488 |
EMPLOYEE BENEFIT PLANS - ESTIMA
EMPLOYEE BENEFIT PLANS - ESTIMATED SUBSIDY PAYMENTS (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Defined Benefit Plan, Expected Future Prescription Drug Subsidy Receipt [Abstract] | |
2023 | $ 356 |
2024 | 393 |
2025 | 433 |
2026 | 475 |
2027 | 520 |
2028 - 2032 | $ 3,426 |
EMPLOYEE BENEFIT PLANS - FAIR V
EMPLOYEE BENEFIT PLANS - FAIR VALUE (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 284,347 | $ 355,284 | $ 307,968 |
OPEB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 99,736 | 114,183 | $ 96,406 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 225,997 | 329,635 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Large Cap Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 75,394 | 103,961 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Extended Market Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 15,783 | 21,948 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | International Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 44,846 | 61,286 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 11,074 | 18,291 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Core Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Opportunistic Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Ultra Short Duration | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | High Yield Bond Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 19,816 | 30,300 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Long Duration Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 59,084 | 93,849 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 83,170 | 107,197 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 28 | 32 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Large Cap Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 26,939 | 33,644 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Extended Market Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 5,578 | 7,096 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | International Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 16,106 | 20,063 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 4,026 | 6,001 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Core Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 16,594 | 13,345 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Opportunistic Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 3,283 | 8,568 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Ultra Short Duration | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 3,296 | 8,536 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | High Yield Bond Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 7,320 | 9,912 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Long Duration Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 225,997 | 329,635 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Large Cap Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 75,394 | 103,961 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Extended Market Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 15,783 | 21,948 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | International Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 44,846 | 61,286 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 11,074 | 18,291 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Core Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Opportunistic Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Ultra Short Duration | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | High Yield Bond Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 19,816 | 30,300 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Long Duration Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 59,084 | 93,849 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 83,170 | 107,197 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 28 | 32 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Large Cap Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 26,939 | 33,644 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Extended Market Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 5,578 | 7,096 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | International Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 16,106 | 20,063 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 4,026 | 6,001 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Core Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 16,594 | 13,345 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Opportunistic Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 3,283 | 8,568 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Ultra Short Duration | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 3,296 | 8,536 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | High Yield Bond Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 7,320 | 9,912 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Long Duration Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Investments measured at net asset value | Pension | Collective investment trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 58,350 | 25,649 | |
Investments measured at net asset value | OPEB | Collective investment trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 16,566 | $ 6,986 |
EMPLOYEE BENEFIT PLANS - DEFINE
EMPLOYEE BENEFIT PLANS - DEFINED CONTRIBUTION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution, company match of employee contribution | 85% | ||
Defined contribution plan, maximum employer contribution by percentage of employee salary | 6% | ||
Defined contribution plan, cost recognized | $ 5.5 | $ 5.1 | $ 4.5 |
Deferred compensation arrangement with individual, employer contribution | $ 2.4 | $ 2.1 | $ 1.6 |
NJRHS | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution for employees not qualifying for the defined benefit plan | 3.50% | ||
NJRHS | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution for employees not qualifying for the defined benefit plan | 4.50% |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Estimated Accretion | ||
2023 | $ 2,767 | |
2024 | 2,900 | |
2025 | 3,038 | |
2026 | 3,180 | |
2027 | 3,328 | |
Total | 15,213 | |
NJNG | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at period beginning | 41,611 | $ 29,280 |
Accretion | 2,052 | 1,612 |
Additions | 161 | 5,697 |
Change in assumptions | 7,339 | 6,151 |
Retirements | (1,289) | (1,129) |
Balance at period end | 49,874 | 41,611 |
Clean Energy Ventures | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at period beginning | 4,694 | 4,444 |
Accretion | 186 | 182 |
Additions | 281 | 68 |
Change in assumptions | 0 | 0 |
Retirements | 0 | 0 |
Balance at period end | $ 5,161 | $ 4,694 |
INCOME TAXES - COMPONENTS OF IN
INCOME TAXES - COMPONENTS OF INCOME TAX PROVISION (BENEFIT) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Current: | |||
Federal | $ 4,238 | $ 651 | $ (2,164) |
State | 2,104 | 1,703 | 6,763 |
Deferred: | |||
Federal | 55,968 | 25,030 | 28,817 |
State | 14,185 | 6,224 | 3,400 |
Investment/production tax credits | (300) | (322) | (322) |
Income tax provision | $ 76,195 | $ 33,286 | $ 36,494 |
INCOME TAXES - DEFERRED TAX ASS
INCOME TAXES - DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Deferred tax assets | ||
Investment tax credits | $ 212,506 | $ 225,036 |
State net operating losses | 36,950 | 38,108 |
Fair value of derivatives | 6,506 | 16,333 |
Impairment of equity method investment | 14,124 | 15,395 |
Postemployment benefits | 2,751 | 9,665 |
Incentive compensation | 7,297 | 6,894 |
Amortization of intangibles | 6,474 | 6,540 |
Overrecovered natural gas costs | 4,977 | 1,540 |
Allowance for doubtful accounts | 5,761 | 6,561 |
Other | 5,748 | 6,140 |
Total deferred tax assets | 303,094 | 332,212 |
Less: Valuation allowance | (22,241) | (23,613) |
Total deferred tax assets net of valuation allowance | 280,853 | 308,599 |
Deferred tax liabilities | ||
Property-related items | (468,115) | (419,753) |
Remediation costs | (18,490) | (16,347) |
Investments in equity investees | (19,176) | (21,739) |
Conservation incentive plan | (6,457) | (3,309) |
Other | (4,615) | (6,203) |
Total deferred tax liabilities | (516,853) | (467,351) |
Total net deferred tax liabilities | (236,000) | (158,752) |
Tax credit carryforward | 211,800 | 224,200 |
NJNG | ||
Deferred tax liabilities | ||
Tax credit carryforward | $ 732 | $ 814 |
INCOME TAXES - INCOME TAX RECON
INCOME TAXES - INCOME TAX RECONCILIATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory income tax expense | $ 73,735 | $ 31,747 | $ 41,896 |
Change resulting from: | |||
Investment/production tax credits | (300) | (322) | (322) |
Cost of removal of assets placed in service prior to 1981 | (3,533) | (5,366) | (5,362) |
AFUDC equity | (2,361) | (786) | (4,933) |
State income taxes, net of federal benefit | 13,072 | 6,124 | 11,965 |
NJ Unitary method change | 0 | 0 | (15,345) |
Valuation allowance | (1,372) | 5,974 | 13,604 |
Tax Act - utility excess deferred income taxes amortized | (3,573) | (3,573) | (3,573) |
Other | 527 | (512) | (1,436) |
Income tax provision | $ 76,195 | $ 33,286 | $ 36,494 |
Effective income tax rate | 21.70% | 22% | 18.30% |
INCOME TAXES - RESERVE FOR UNCE
INCOME TAXES - RESERVE FOR UNCERTAIN TAX BENEFITS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at October 1, | $ 0 | $ 4,930 |
Reversal of settled tax positions during the current fiscal period | 0 | (4,930) |
Balance at period end | $ 0 | $ 0 |
INCOME TAXES - ADDITIONAL INFOR
INCOME TAXES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||
Deferred employer portion of OASDI | $ 2,700 | $ 5,100 | |
ITC carryforward | $ 211,800 | 224,200 | |
Effective term | 20 years | ||
Potential net capital loss | $ 56,600 | 61,800 | |
Valuation allowance | 22,241 | 23,613 | |
Operating loss carryforward, valuation allowance | 17,200 | 17,300 | |
Investment tax credit, solar property, percentage | 26% | ||
Capital Loss Carryforward | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforward, valuation allowance | 5,100 | 6,400 | |
State and Local Jurisdiction | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | $ 544,400 | $ 554,600 | |
State and Local Jurisdiction | Minimum | |||
Income Tax Contingency [Line Items] | |||
Effective term | 7 years | ||
State and Local Jurisdiction | Maximum | |||
Income Tax Contingency [Line Items] | |||
Effective term | 20 years |
LEASES - ADDITIONAL INFORMATION
LEASES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Jul. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||||
ROU asset obtained in exchange for operating lease liability | $ 911 | $ 46,100 | ||
Proceeds from sale leaseback transaction | 17,300 | 0 | $ 4,000 | |
ROU asset obtained in exchange for finance lease liability | $ 17,300 | $ 0 | ||
Weighted average remaining lease term, operating lease | 29 years 2 months 12 days | 29 years 7 months 6 days | ||
Operating lease, discount rate | 3.20% | 3.20% | ||
Weighted average remaining lease term, finance lease | 4 years | 3 years 4 months 24 days | ||
Finance lease, discount rate | 2.70% | 3.50% | ||
NJNG | ||||
Lessee, Lease, Description [Line Items] | ||||
Proceeds from sale leaseback transaction | $ 17,300 | $ 0 | $ 4,000 | |
Solar Property | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of contract | 20 years | |||
Renewal term | 5 years | |||
Solar Property | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of contract | 50 years | |||
Renewal term | 20 years | |||
Office Building | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of contract | 16 years | |||
Office Building | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of contract | 2 years | |||
Office Building | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of contract | 17 years | |||
Meter License | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of contract | 7 years | |||
Meter License | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of contract | 10 years | |||
Equipment | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of contract | 7 years | |||
Storage and Capacity | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of contract | 50 years |
LEASES - LEASE COST (Details)
LEASES - LEASE COST (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 9,702 | $ 8,182 |
Amortization of right-of-use assets | 1,769 | 3,442 |
Interest on lease liabilities | 612 | 710 |
Total finance lease cost | 2,381 | 4,152 |
Short-term lease cost | 34 | 543 |
Variable lease cost | 781 | 1,381 |
Total lease cost | $ 12,898 | $ 14,258 |
LEASES - SUPPLEMENTAL CASH FLOW
LEASES - SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 7,417 | $ 6,675 |
Operating cash flows for finance leases | 831 | 1,167 |
Financing cash flows for finance leases | $ 7,145 | $ 8,180 |
LEASES - RIGHT-OF-USE ASSETS AN
LEASES - RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Noncurrent | ||
Operating lease assets | $ 168,520 | $ 173,928 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Utility plant, at cost | Utility plant, at cost |
Finance lease assets | $ 21,913 | $ 13,489 |
Total lease assets | 190,433 | 187,417 |
Current | ||
Operating lease liabilities | $ 4,562 | $ 4,300 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of long-term debt | Current maturities of long-term debt |
Finance lease liabilities | $ 6,538 | $ 5,393 |
Noncurrent | ||
Operating lease liabilities | $ 138,382 | $ 141,363 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Finance lease liabilities | $ 23,752 | $ 14,742 |
Total lease liabilities | $ 173,234 | $ 165,798 |
LEASES - MATURITIES OF LEASE LI
LEASES - MATURITIES OF LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Operating Leases | ||
2023 | $ 8,024 | |
2024 | 7,652 | |
2025 | 7,087 | |
2026 | 6,998 | |
2027 | 6,972 | |
Thereafter | 190,972 | |
Total future lease payments | 227,705 | |
Less: interest | (84,761) | |
Total lease liability | 142,944 | |
Finance Leases | ||
2023 | 7,252 | |
2024 | 7,909 | |
2025 | 6,026 | |
2026 | 4,955 | |
2027 | 2,630 | |
Thereafter | 3,262 | |
Total future lease payments | 32,034 | |
Less: interest | (1,744) | |
Total lease liability | $ 30,290 | $ 20,100 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Current charges recoverable through BGSS | $ 196,600 |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2022 | 504,860 |
2023 | 215,578 |
2024 | 195,054 |
2025 | 173,663 |
2026 | 158,978 |
Thereafter | 1,084,260 |
Operating leases, future minimum payments due, next five years (not more than) | 8,000 |
Thereafter | 190,972 |
Energy Services | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2022 | 277,546 |
2023 | 59,428 |
2024 | 38,735 |
2025 | 35,673 |
2026 | 25,269 |
Thereafter | 21,543 |
Energy Services | Natural gas purchases | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2022 | 199,629 |
2023 | 2,355 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Energy Services | Storage demand fees | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2022 | 21,160 |
2023 | 12,607 |
2024 | 6,450 |
2025 | 3,797 |
2026 | 2,208 |
Thereafter | 819 |
Energy Services | Pipeline demand fees | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2022 | 56,757 |
2023 | 44,466 |
2024 | 32,285 |
2025 | 31,876 |
2026 | 23,061 |
Thereafter | 20,724 |
Annual pipeline obligation to be paid over 10 year period | 4,000 |
Natural Gas Distribution | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2022 | 227,314 |
2023 | 156,150 |
2024 | 156,319 |
2025 | 137,990 |
2026 | 133,709 |
Thereafter | 1,062,717 |
Natural Gas Distribution | Natural gas purchases | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2022 | 30,730 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Natural Gas Distribution | Storage demand fees | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2022 | 47,513 |
2023 | 35,345 |
2024 | 17,370 |
2025 | 10,268 |
2026 | 9,546 |
Thereafter | 4,775 |
Natural Gas Distribution | Pipeline demand fees | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2022 | 149,071 |
2023 | 120,805 |
2024 | 138,949 |
2025 | 127,722 |
2026 | 124,163 |
Thereafter | $ 1,057,942 |
Minimum | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, contract term | 1 year |
Minimum | Energy Services | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, contract term | 1 year |
Maximum | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, contract term | 10 years |
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 - GUARANTEES (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Guarantee Obligations | |
Guarantor Obligations [Line Items] | |
Loss contingency, estimate of possible loss | $ 261.7 |
COMMITMENTS AND CONTINGENT LI_5
COMMITMENTS AND CONTINGENT LIABILITIES - LEGAL PROCEEDINGS (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Sep. 13, 2022 | Mar. 23, 2022 | Apr. 07, 2021 | Apr. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Loss Contingencies [Line Items] | ||||||
Manufactured gas plant remediation | $ 127,060 | $ 135,012 | ||||
Recovery from third party of environmental remediation cost, period | 7 years | |||||
Regulatory assets | $ 500,666 | $ 522,099 | ||||
Expended, net of recoveries | ||||||
Loss Contingencies [Line Items] | ||||||
Regulatory assets | 66,100 | |||||
RAC | ||||||
Loss Contingencies [Line Items] | ||||||
Approved rate, amount | $ 15,500 | $ 11,700 | $ 11,100 | |||
Approved rate increase (decrease), amount | $ 3,800 | $ 600 | $ 1,300 | |||
Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Product liability contingency, loss exposure in excess of accrual, best estimate | 110,800 | |||||
Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Product liability contingency, loss exposure in excess of accrual, best estimate | $ 167,100 |
COMMON STOCK EQUITY (Details)
COMMON STOCK EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
May 26, 2021 | Mar. 03, 2021 | Dec. 31, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Class of Stock [Line Items] | ||||||
Number of shares issued in transaction (in shares) | 6,545,454 | |||||
Proceeds from issuance of common stock | $ 212,900 | $ 14,745 | $ 15,105 | $ 18,080 | ||
Cash settlement of equity forward agreement | $ 0 | $ 2,823 | $ 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 | |||||
Cash settlement of equity forward agreement | $ 2,400 | $ 388 | ||||
Forward sales agreement, settlement (in shares) | 484,848 | 727,272 |
REPORTING SEGMENT AND OTHER O_3
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT INCOME TO CONSOLIDATED (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Utility | $ 1,127,417 | $ 731,459 | $ 729,923 |
Nonutility | 1,778,562 | 1,425,154 | 1,223,745 |
Operating revenues | 2,905,979 | 2,156,613 | 1,953,668 |
Depreciation and amortization | 129,249 | 111,387 | 107,368 |
Interest income | 2,716 | 2,167 | 2,959 |
Interest expense, net of capitalized interest | 85,830 | 78,559 | 67,597 |
Income tax provision (benefit) | 76,195 | 33,286 | 36,494 |
Equity in earnings (loss) of affiliates | 8,177 | (83,212) | 14,311 |
Net financial earnings (loss) | 240,321 | 207,712 | 165,333 |
Capital expenditures | 598,428 | 624,610 | 448,109 |
(Return of capital from) investments in equity investees | (5,479) | ||
(Return of capital from) investments in equity investees | 690 | 2,117 | |
Energy Services | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 53,000 | ||
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 2,854,054 | 2,106,511 | 1,907,687 |
Depreciation and amortization | 128,425 | 110,683 | 106,628 |
Interest income | 3,021 | 2,580 | 4,387 |
Interest expense, net of capitalized interest | 85,184 | 74,505 | 67,628 |
Income tax provision (benefit) | 75,157 | 32,430 | 38,687 |
Net financial earnings (loss) | 241,102 | 208,327 | 159,451 |
Capital expenditures | 597,038 | 621,980 | 444,879 |
Operating Segments | Natural Gas Distribution, External Customers | |||
Segment Reporting Information [Line Items] | |||
Utility | 1,127,417 | 731,796 | 729,923 |
Operating Segments | Clean Energy Ventures, External Customers | |||
Segment Reporting Information [Line Items] | |||
Nonutility | 128,280 | 95,275 | 102,617 |
Operating Segments | Energy Services | |||
Segment Reporting Information [Line Items] | |||
Nonutility | 1,529,178 | 1,228,846 | 1,029,303 |
Operating revenues | 1,529,178 | 1,228,846 | 1,029,303 |
Depreciation and amortization | 148 | 111 | 123 |
Interest income | 16 | 11 | 99 |
Interest expense, net of capitalized interest | 4,725 | 2,204 | 3,276 |
Income tax provision (benefit) | 21,776 | 18,371 | (3,615) |
Net financial earnings (loss) | 39,121 | 71,117 | (7,873) |
Operating Segments | Energy Services | CANADA | |||
Segment Reporting Information [Line Items] | |||
Nonutility | 2,400 | 75 | 584 |
Operating Segments | Storage and Transportation | |||
Segment Reporting Information [Line Items] | |||
Nonutility | 65,286 | 49,252 | 42,015 |
Operating revenues | 65,286 | 49,252 | 42,015 |
Depreciation and amortization | 12,302 | 9,960 | 9,293 |
Interest income | 2,110 | 2,243 | 3,510 |
Interest expense, net of capitalized interest | 12,097 | 13,348 | 13,124 |
Income tax provision (benefit) | 1,879 | (10,043) | 4,247 |
Equity in earnings (loss) of affiliates | 9,865 | (81,072) | 15,903 |
Net financial earnings (loss) | 22,454 | 13,046 | 18,311 |
Capital expenditures | 151,988 | 107,500 | 20,998 |
(Return of capital from) investments in equity investees | (5,479) | ||
(Return of capital from) investments in equity investees | 690 | 2,117 | |
Operating Segments | Natural Gas Distribution | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 1,127,417 | 731,796 | 729,923 |
Depreciation and amortization | 94,579 | 80,045 | 71,883 |
Interest income | 895 | 85 | 538 |
Interest expense, net of capitalized interest | 46,394 | 36,405 | 30,975 |
Income tax provision (benefit) | 40,141 | 19,054 | 27,021 |
Net financial earnings (loss) | 140,124 | 107,375 | 126,902 |
Capital expenditures | 298,374 | 426,628 | 290,040 |
Operating Segments | Clean Energy Ventures | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 128,280 | 95,275 | 102,617 |
Depreciation and amortization | 21,396 | 20,567 | 25,329 |
Interest income | 0 | 241 | 240 |
Interest expense, net of capitalized interest | 21,968 | 22,548 | 20,253 |
Income tax provision (benefit) | 11,361 | 5,048 | 11,034 |
Net financial earnings (loss) | 39,403 | 16,789 | 22,111 |
Capital expenditures | 146,676 | 87,852 | 133,841 |
Intercompany | |||
Segment Reporting Information [Line Items] | |||
Nonutility | 364 | 785 | 1,207 |
Intercompany | Natural Gas Distribution, External Customers | |||
Segment Reporting Information [Line Items] | |||
Utility | 1,350 | 0 | 0 |
Intercompany | Energy Services | |||
Segment Reporting Information [Line Items] | |||
Nonutility | 94 | (426) | 1,116 |
Intercompany | Storage and Transportation | |||
Segment Reporting Information [Line Items] | |||
Nonutility | 2,449 | 1,768 | 2,713 |
Home Services and Other | |||
Segment Reporting Information [Line Items] | |||
Nonutility | 55,818 | 51,444 | 49,810 |
Operating revenues | 55,818 | 51,444 | 49,810 |
Depreciation and amortization | 824 | 980 | 1,032 |
Interest income | 944 | 522 | 8,633 |
Interest expense, net of capitalized interest | 646 | 4,054 | 10,327 |
Income tax provision (benefit) | 1,059 | (196) | (2,478) |
Net financial earnings (loss) | (781) | (826) | 5,784 |
Capital expenditures | 1,390 | 2,630 | 3,230 |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Nonutility | (4,257) | (2,127) | (5,036) |
Depreciation and amortization | 0 | (276) | (292) |
Interest income | (1,249) | (935) | (10,061) |
Interest expense, net of capitalized interest | 0 | 0 | (10,358) |
Income tax provision (benefit) | (21) | 1,052 | 285 |
Equity in earnings (loss) of affiliates | (1,688) | (2,140) | (1,592) |
Net financial earnings (loss) | $ 0 | $ 211 | $ 98 |
REPORTING SEGMENT AND OTHER O_4
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $ 6,261,416 | $ 5,722,278 | $ 5,316,477 |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 6,378,335 | 5,850,079 | 5,435,389 |
Operating Segments | Natural Gas Distribution | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 4,030,686 | 3,707,461 | 3,531,477 |
Operating Segments | Clean Energy Ventures | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 1,015,065 | 914,788 | 814,277 |
Operating Segments | Energy Services | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 333,064 | 365,423 | 244,836 |
Operating Segments | Storage and Transportation | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 999,520 | 862,407 | 844,799 |
Home Services and Other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 159,068 | 162,134 | 138,375 |
Eliminations | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $ (275,987) | $ (289,935) | $ (257,287) |
REPORTING SEGMENT AND OTHER O_5
REPORTING SEGMENT AND OTHER OPERATIONS DATA - NET FINANCIAL EARNINGS LOSS RECONCILIATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting [Abstract] | |||
Net financial earnings | $ 240,321 | $ 207,712 | $ 165,333 |
Less: | |||
Unrealized (gain) loss on derivative instruments and related transactions | (59,906) | 54,203 | (9,644) |
Tax effect | 14,248 | (12,887) | 2,296 |
Effects of economic hedging related to natural gas inventory | 19,939 | (42,405) | 12,690 |
Tax effect | (4,738) | 10,078 | (3,016) |
(Gain on) impairment of equity method investment | (5,521) | 92,000 | 0 |
Tax effect | 1,377 | (11,167) | 0 |
NET INCOME | $ 274,922 | $ 117,890 | $ 163,007 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Apr. 01, 2020 USD ($) Bcf | Jun. 30, 2022 | Mar. 31, 2021 | Sep. 30, 2022 USD ($) dekatherm lease Bcf | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Jul. 31, 2021 | |
Related Party Transaction [Line Items] | |||||||
Demand fees expense recognized pertaining to related party agreement | $ 7,395 | $ 7,013 | $ 6,083 | ||||
Demand fees payable | $ 851 | 861 | |||||
Number of asset management agreements | lease | 1 | ||||||
NJNG to NJRES Affiliate | |||||||
Related Party Transaction [Line Items] | |||||||
Asset management agreement, period | 5 years | ||||||
NJNG to Steckman RIdge Affiliate | |||||||
Related Party Transaction [Line Items] | |||||||
Natural gas sold at cost under asset management agreement (in Bcf) | Bcf | 3 | ||||||
Approximate annual demand fees under agreement | $ 9,300 | ||||||
Demand fees expense recognized pertaining to related party agreement | $ 6,663 | 6,449 | 5,900 | ||||
Demand fees payable | 775 | 778 | |||||
NJRES to Steckman Ridge Affiliate | |||||||
Related Party Transaction [Line Items] | |||||||
Demand fees expense recognized pertaining to related party agreement | 732 | 564 | $ 183 | ||||
Demand fees payable | $ 76 | $ 83 | |||||
NJNG to Adelphia Affiliate | |||||||
Related Party Transaction [Line Items] | |||||||
Transportation capacity under precedent agreement with PennEast (in bcf per day) | dekatherm | 130,000 | ||||||
NJNG to Adelphia Affiliate | Transportation Precedent Agreement One | |||||||
Related Party Transaction [Line Items] | |||||||
Transportation precedent agreement term | 5 years | ||||||
NJNG to Adelphia Affiliate | Transportation Precedent Agreement Two | |||||||
Related Party Transaction [Line Items] | |||||||
Transportation precedent agreement term | 15 years | ||||||
Transportation capacity under precedent agreement with PennEast (in bcf per day) | dekatherm | 130,000 | ||||||
Right to reduction term | 7 years | ||||||
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 | ||||||
NJNG and Clean Energy Ventures to PPA | |||||||
Related Party Transaction [Line Items] | |||||||
Sublease agreement term | 20 years | 15 years | |||||
NJNG to NJR Subsidiaries | |||||||
Related Party Transaction [Line Items] | |||||||
Term of contract | 16 years |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Valuation allowance for deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BEGINNING BALANCE | $ 23,613 | $ 17,639 | $ 4,035 |
ADDITIONS CHARGED TO EXPENSE | (1,372) | 6,355 | 15,869 |
OTHER | 0 | (381) | (2,265) |
ENDING BALANCE | 22,241 | 23,613 | 17,639 |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BEGINNING BALANCE | 24,652 | 7,242 | 6,148 |
ADDITIONS CHARGED TO EXPENSE | 2,401 | 18,986 | 2,238 |
OTHER | (7,674) | (1,576) | (1,144) |
ENDING BALANCE | $ 19,379 | $ 24,652 | $ 7,242 |