Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Nov. 21, 2014 | Mar. 31, 2014 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'NEW JERSEY RESOURCES CORP | ' | ' |
Entity Central Index Key | '0000356309 | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $2,064,781,156 |
Entity Common Stock, Shares Outstanding | ' | 42,249,211 | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
OPERATING REVENUES | ' | ' | ' | |||
Utility | $819,415 | $787,987 | $627,713 | |||
Nonutility | 2,918,730 | 2,410,081 | 1,621,210 | |||
Total operating revenues | 3,738,145 | 3,198,068 | 2,248,923 | |||
OPERATING EXPENSES | ' | ' | ' | |||
Gas Purchases - Utility | 319,897 | 400,307 | 262,858 | |||
Gas Purchases - Nonutility | 2,807,008 | 2,299,974 | 1,566,396 | |||
Gas Purchases - Related parties | 12,620 | 11,942 | 12,154 | |||
Operation and maintenance | 215,180 | 173,473 | 171,045 | |||
Regulatory rider expenses | 72,164 | 48,417 | 40,350 | |||
Depreciation and amortization | 52,742 | 47,310 | 41,643 | |||
Energy and other taxes | 57,344 | 57,414 | 45,787 | |||
Total operating expenses | 3,536,955 | 3,038,837 | 2,140,233 | |||
OPERATING INCOME | 201,190 | 159,231 | 108,690 | |||
Other income, net | 7,551 | 4,783 | 2,128 | |||
Interest expense, net of capitalized interest | 25,463 | 23,979 | 20,844 | |||
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES | 183,278 | 140,035 | 89,974 | |||
Income tax provision | 51,840 | 35,575 | 7,729 | |||
Equity in earnings of affiliates | 10,532 | 10,349 | 10,634 | |||
NET INCOME | $141,970 | $114,809 | $92,879 | |||
EARNINGS PER COMMON SHARE | ' | ' | ' | |||
Basic (in usd per share) | $3.37 | $2.76 | $2.24 | |||
Diluted (in usd per share) | $3.34 | [1] | $2.75 | [1] | $2.23 | [1] |
DIVIDENDS DECLARED PER COMMON SHARE (in usd per share) | $1.71 | $1.62 | $1.54 | |||
WEIGHTED AVERAGE SHARES OUTSTANDING | ' | ' | ' | |||
Basic (in shares) | 42,099 | 41,658 | 41,527 | |||
Diluted (in shares) | 42,461 | 41,814 | 41,632 | |||
[1] | There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2014, 2013 and 2012. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Net income | $141,970 | $114,809 | $92,879 | |||
Other comprehensive income, net of tax | ' | ' | ' | |||
Unrealized (loss) gain on available for sale securities, net of tax of $426, $(330) and $(270), respectively | -618 | [1] | 479 | [1] | 391 | [1] |
Net unrealized (loss) on derivatives, net of tax of $61, $23 and $71, respectively | -105 | -39 | -122 | |||
Adjustment to postemployment benefit obligation, net of tax of $2,162, $(5,934) and $345, respectively | -3,250 | 8,710 | -436 | |||
Other comprehensive (loss) income | -3,973 | 9,150 | -167 | |||
Comprehensive income | $137,997 | $123,959 | $92,712 | |||
[1] | Available for sale securities are included in other noncurrent assets on the Consolidated Balance Sheets. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Tax on unrealized (loss) gain on available for sale securities | $426 | ($330) | ($270) |
Tax on net unrealized gain (loss) on derivatives | 61 | 23 | 71 |
Tax on adjustment for postemployment benefit obligation | $2,162 | ($5,934) | $345 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net income | $141,970 | $114,809 | $92,879 |
Adjustments to reconcile net income to cash flows from operating activities | ' | ' | ' |
Unrealized loss (gain) on derivative instruments | 28,534 | -9,417 | 35,789 |
Depreciation and amortization | 52,742 | 47,310 | 41,643 |
Impairment loss on investment | 6,351 | 0 | 0 |
Allowance for equity used during construction | -1,562 | -2,037 | -638 |
Allowance for bad debt expense | 2,504 | 2,627 | 3,932 |
Deferred income taxes | 18,421 | 41,075 | -5,323 |
Manufactured gas plant remediation costs | -4,396 | -6,166 | -7,965 |
Equity in earnings of equity investees, net of distributions received | 2,589 | 3,299 | 6,799 |
Cost of removal - asset retirement obligations | -1,153 | -1,697 | -1,196 |
Contributions to postemployment benefit plans | -4,953 | -26,028 | -25,874 |
Changes in: | ' | ' | ' |
Components of working capital | 85,480 | -60,316 | -95,357 |
Other noncurrent assets | 10,484 | 9,496 | -20,539 |
Other noncurrent liabilities | 19,775 | 1,039 | 26,931 |
Cash flows from operating activities | 356,786 | 113,994 | 51,081 |
CASH FLOWS (USED IN) INVESTING ACTIVITIES | ' | ' | ' |
Expenditures for Utility plant | -128,254 | -110,482 | -104,277 |
Expenditures for Solar and wind equipment | -135,543 | -59,125 | -89,726 |
Expenditures for Real estate properties and other | -1,179 | -1,042 | -1,334 |
Expenditures for Cost of removal | -24,312 | -26,601 | -12,178 |
Investments in equity investees | -555 | 0 | -8,800 |
Distribution from equity investees in excess of equity in earnings | 1,150 | 3,079 | 0 |
Withdrawal from restricted cash construction fund | 88 | 56 | -802 |
Proceeds from sale of asset | 6,010 | 0 | 0 |
Proceeds from sale of available for sale securities | 0 | 482 | 0 |
Cash flows (used in) investing activities | -282,595 | -193,633 | -217,117 |
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from issuance of common stock | 15,373 | 37,839 | 13,834 |
Tax benefit from stock options exercised | 414 | 173 | 780 |
Proceeds from sale-leaseback transaction | 7,576 | 7,076 | 6,522 |
Proceeds from long-term debt | 125,000 | 50,000 | 100,000 |
Payments of long-term debt | -82,586 | -8,953 | -8,025 |
Purchases of treasury stock | -5,522 | -26,606 | -8,768 |
Payments of common stock dividends | -70,664 | -67,230 | -61,688 |
Net proceeds from short-term debt | -64,600 | 85,800 | 120,450 |
Cash flows (used in) from financing activities | -75,009 | 78,099 | 163,105 |
Change in cash and cash equivalents | -818 | -1,540 | -2,931 |
Cash and cash equivalents at beginning of period | 2,969 | 4,509 | 7,440 |
Cash and cash equivalents at end of period | 2,151 | 2,969 | 4,509 |
CHANGES IN COMPONENTS OF WORKING CAPITAL | ' | ' | ' |
Receivables | 48,032 | -72,244 | 36,670 |
Inventories | 43,130 | -55,755 | 28,814 |
Recovery of gas costs | 13,015 | 6,100 | -11,686 |
Gas purchases payable | -47,528 | 72,415 | -70,216 |
Gas purchases payable - related parties | 14 | -16 | -61 |
Prepaid and accrued taxes | 21,133 | -8,182 | 23,036 |
Accounts payable and other | 34,716 | 726 | -3,418 |
Restricted broker margin accounts | -20,758 | 15,348 | 666 |
Customers' credit balances and deposits | -2,058 | -24,059 | -65,324 |
Other current assets | -4,216 | 5,351 | -33,838 |
Components of working capital | 85,480 | -60,316 | -95,357 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION | ' | ' | ' |
Cash paid for Interest (net of amounts capitalized) | 22,458 | 20,414 | 16,670 |
Cash paid for Income taxes | 22,447 | 12,039 | 10,053 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING ACTIVITIES | ' | ' | ' |
Accrued capital expenditures | $9,655 | ($7,103) | $8,257 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
PROPERTY, PLANT AND EQUIPMENT | ' | ' |
Utility plant, at cost | $1,791,009 | $1,681,585 |
Utility plant, at cost, Construction work in progress | 139,624 | 114,961 |
Solar and wind equipment, real estate properties and other, at cost | 347,285 | 249,516 |
Solar and wind equipment, real estate properties and other, at cost, Construction work in progress | 55,625 | 9,093 |
Total property, plant and equipment | 2,333,543 | 2,055,155 |
Accumulated depreciation and amortization, utility plant | -409,135 | -383,895 |
Accumulated depreciation and amortization, solar and wind equipment, real estate properties and other | -40,298 | -28,144 |
Property, plant and equipment, net | 1,884,110 | 1,643,116 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | 2,151 | 2,969 |
Customer accounts receivable | ' | ' |
Billed | 189,970 | 240,281 |
Unbilled revenues | 7,231 | 7,429 |
Allowance for doubtful accounts | -5,357 | -5,330 |
Regulatory assets | 26,862 | 34,372 |
Gas in storage, at average cost | 277,516 | 314,477 |
Materials and supplies, at average cost | 8,165 | 14,334 |
Prepaid and accrued taxes | 22,269 | 42,645 |
Derivatives, at fair value | 64,223 | 53,327 |
Restricted broker margin accounts | 27,339 | 6,581 |
Deferred taxes | 36,451 | 8,432 |
Asset held for sale | 0 | 5,428 |
Other current assets | 25,911 | 20,953 |
Total current assets | 682,731 | 745,898 |
NONCURRENT ASSETS | ' | ' |
Investments in equity investees | 153,010 | 161,591 |
Regulatory assets | 377,575 | 402,202 |
Derivatives, at fair value | 5,654 | 2,761 |
Prepaid pension asset | 0 | 6,287 |
Other noncurrent assets | 55,724 | 42,928 |
Total noncurrent assets | 591,963 | 615,769 |
Total assets | 3,158,804 | 3,004,783 |
CAPITALIZATION | ' | ' |
Common stock, $2.50 par value; authorized 75,000,000 shares; outstanding 2014 — 42,178,156; 2013 — 41,961,534 | 112,777 | 112,563 |
Premium on common stock | 305,185 | 300,196 |
Accumulated other comprehensive (loss), net of tax | -5,594 | -1,621 |
Treasury stock at cost and other; shares 2014 — 2,932,775; 2013 — 3,060,356 | -121,031 | -128,638 |
Retained earnings | 674,829 | 604,884 |
Common stock equity | 966,166 | 887,384 |
Long-term debt | 598,209 | 512,886 |
Total capitalization | 1,564,375 | 1,400,270 |
CURRENT LIABILITIES | ' | ' |
Current maturities of long-term debt | 34,505 | 68,643 |
Short-term debt | 301,000 | 365,600 |
Gas purchases payable | 205,901 | 253,429 |
Gas purchases payable to related parties | 1,398 | 1,384 |
Accounts payable and other | 104,005 | 60,342 |
Dividends payable | 19,001 | 17,624 |
Deferred and accrued taxes | 2,721 | 4,040 |
Regulatory liabilities | 6,072 | 1,456 |
New Jersey clean energy program | 14,285 | 14,532 |
Derivatives, at fair value | 79,863 | 40,390 |
Customers' credit balances and deposits | 22,335 | 24,393 |
Total current liabilities | 791,086 | 851,833 |
NONCURRENT LIABILITIES | ' | ' |
Deferred income taxes | 423,213 | 372,773 |
Deferred investment tax credits | 5,262 | 5,584 |
Deferred revenue | 4,042 | 4,763 |
Derivatives, at fair value | 6,690 | 2,458 |
Manufactured gas plant remediation | 177,000 | 183,600 |
Postemployment employee benefit liability | 86,674 | 67,897 |
Regulatory liabilities | 61,326 | 79,647 |
Asset retirement obligation | 30,495 | 28,711 |
Other noncurrent liabilities | 8,641 | 7,247 |
Total noncurrent liabilities | 803,343 | 752,680 |
Commitments and contingent liabilities (Note 13) | ' | ' |
Total capitalization and liabilities | $3,158,804 | $3,004,783 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Common stock, par value (in usd per share) | $2.50 | $2.50 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares outstanding | 42,178,156 | 41,961,534 |
Treasury stock at cost and other, shares | 2,932,775 | 3,060,356 |
CONSOLIDATED_STATEMENTS_OF_COM2
CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (USD $) | Total | Common Stock [Member] | Premium on Common Stock [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Stock and Other [Member] | Retained Earnings [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning Balance at Sep. 30, 2011 | $776,257 | $110,258 | $265,524 | ($10,604) | ($117,683) | $528,762 |
Beginning Balance (shares) at Sep. 30, 2011 | ' | 41,422,000 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 92,879 | ' | ' | ' | ' | 92,879 |
Other comprehensive (loss) income | -167 | ' | ' | -167 | ' | ' |
Common stock issued under stock plans (shares) | ' | 445,000 | ' | ' | ' | ' |
Common stock issued under stock plans | 18,641 | 698 | 6,262 | ' | 11,681 | ' |
Tax benefits from stock plans | 780 | ' | 780 | ' | ' | ' |
Cash dividend declared | -63,976 | ' | ' | ' | ' | -63,976 |
Treasury stock and other (shares) | ' | -247,000 | ' | ' | ' | ' |
Treasury stock and other | -10,549 | ' | ' | ' | -10,549 | ' |
Ending Balance at Sep. 30, 2012 | 813,865 | 110,956 | 272,566 | -10,771 | -116,551 | 557,665 |
Ending Balance (shares) at Sep. 30, 2012 | ' | 41,620,000 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 114,809 | ' | ' | ' | ' | 114,809 |
Other comprehensive (loss) income | 9,150 | ' | ' | 9,150 | ' | ' |
Common stock issued under stock plans (shares) | ' | 958,000 | ' | ' | ' | ' |
Common stock issued under stock plans | 39,996 | 1,607 | 25,455 | ' | 12,934 | ' |
Tax benefits from stock plans | 2,175 | ' | 2,175 | ' | ' | ' |
Cash dividend declared | -67,590 | ' | ' | ' | ' | -67,590 |
Treasury stock and other (shares) | ' | -616,000 | ' | ' | ' | ' |
Treasury stock and other | -25,021 | ' | ' | ' | -25,021 | ' |
Ending Balance at Sep. 30, 2013 | 887,384 | 112,563 | 300,196 | -1,621 | -128,638 | 604,884 |
Ending Balance (shares) at Sep. 30, 2013 | 41,961,534 | 41,962,000 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 141,970 | ' | ' | ' | ' | 141,970 |
Other comprehensive (loss) income | -3,973 | ' | ' | -3,973 | ' | ' |
Common stock issued under stock plans (shares) | ' | 381,000 | ' | ' | ' | ' |
Common stock issued under stock plans | 17,437 | 214 | 5,173 | ' | 12,050 | ' |
Tax benefits from stock plans | -184 | ' | -184 | ' | ' | ' |
Cash dividend declared | -72,025 | ' | ' | ' | ' | -72,025 |
Treasury stock and other (shares) | ' | -165,000 | ' | ' | ' | ' |
Treasury stock and other | -4,443 | ' | ' | ' | -4,443 | ' |
Ending Balance at Sep. 30, 2014 | $966,166 | $112,777 | $305,185 | ($5,594) | ($121,031) | $674,829 |
Ending Balance (shares) at Sep. 30, 2014 | 42,178,156 | 42,178,000 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_COM3
CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Cash dividends declared (in usd per share) | $1.71 | $1.62 | $1.54 |
NATURE_OF_BUSINESS
NATURE OF BUSINESS | 12 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
NATURE OF THE BUSINESS | ' |
NATURE OF THE BUSINESS | |
New Jersey Resources Corporation provides regulated gas distribution services and operates certain non-regulated businesses primarily through the following subsidiaries: | |
New Jersey Natural Gas Company provides natural gas utility service to approximately 504,300 retail customers in central and northern New Jersey and is subject to rate regulation by the BPU. NJNG comprises the Natural Gas Distribution segment; | |
NJR Energy Services Company comprises the Energy Services segment that maintains and transacts around a portfolio of natural gas storage and transportation capacity contracts and provides wholesale energy and energy management services; | |
NJR Clean Energy Ventures Corporation, the Company's unregulated distributed power subsidiary, comprises the Clean Energy Ventures segment and consists of the Company's capital investments in distributed power projects, including commercial and residential solar projects and onshore wind investments; | |
NJR Midstream Holdings Corporation invests in energy-related ventures through its subsidiaries, NJR Steckman Ridge Storage Company, which holds the Company's 50 percent combined interest in Steckman Ridge, NJNR Pipeline Company, which holds the Company's 5.53 percent ownership interest in Iroquois Gas Transmission L.P. and NJR Pipeline Company, which holds the Company's 20 percent ownership interest in PennEast. Steckman Ridge, Iroquois and PennEast comprise the Midstream segment. On November 7, 2013, NJR Energy Holdings Corporation changed its name to NJR Midstream Holdings Corporation; and | |
NJR Retail Holdings Corporation has two principal subsidiaries, NJR Home Services Company and Commercial Realty & Resources Corporation. Retail Holdings and NJR Energy Corporation are included in Home Services and Other operations (formerly Retail and Other operations). |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||
Principles of Consolidation | ||||||||||||||||
The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. | ||||||||||||||||
Other financial investments or contractual interests that lack the characteristics of a voting interest entity, which are commonly referred to as variable interest entities, are evaluated by NJR to determine if it has the power to direct business activities and, therefore, would be considered a controlling interest that NJR would have to consolidate. Based on those evaluations, NJR has determined that it does not have any investments in variable interest entities as of September 30, 2014, 2013 and 2012. | ||||||||||||||||
Investments in entities over which the Company does not have a controlling financial interest are either accounted for under the equity method or cost method of accounting. | ||||||||||||||||
Regulatory Assets & Liabilities | ||||||||||||||||
Under cost-based regulation, regulated utility enterprises generally are permitted to recover their operating expenses and earn a reasonable rate of return on their utility investment. | ||||||||||||||||
NJNG maintains its accounts in accordance with the FERC Uniform System of Accounts as prescribed by the BPU and in accordance with the Regulated Operations Topic of the FASB ASC. As a result of the impact of the ratemaking process and regulatory actions of the BPU, NJNG is required to recognize the economic effects of rate regulation. Accordingly, NJNG capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 3. Regulation, for a more detailed description of NJNG's regulatory assets and liabilities. | ||||||||||||||||
Gas in Storage | ||||||||||||||||
Gas in storage is reflected at average cost on the Consolidated Balance Sheets, and represents natural gas and LNG that will be utilized in the ordinary course of business. | ||||||||||||||||
The following table summarizes gas in storage by company as of September 30: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
($ in thousands) | Gas in Storage | Bcf | Gas in Storage | Bcf | ||||||||||||
NJRES | $ | 191,250 | 56.5 | $ | 209,498 | 62.3 | ||||||||||
NJNG | $ | 86,266 | 21.3 | $ | 104,979 | 20.4 | ||||||||||
Total | $ | 277,516 | 77.8 | $ | 314,477 | 82.7 | ||||||||||
Demand Fees | ||||||||||||||||
For the purpose of securing adequate storage and pipeline capacity, NJRES and NJNG enter into storage and pipeline capacity contracts, which require the payment of certain demand charges to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one to 10 years. Demand charges are based on established rates as regulated by FERC. These demand charges represent commitments to pay storage providers or pipeline companies for the right to store and transport natural gas utilizing their respective assets. | ||||||||||||||||
The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30: | ||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||
NJRES | $ | 122 | $ | 123 | $ | 129.8 | ||||||||||
NJNG | 92 | 92.1 | 86.7 | |||||||||||||
Total | $ | 214 | $ | 215.1 | $ | 216.5 | ||||||||||
NJRES expenses demand charges ratably over the term of the contract. | ||||||||||||||||
NJNG's costs associated with demand charges are included in its weighted average cost of gas. The demand charges are expensed based on NJNG's BGSS sales and recovered as part of its gas commodity component of its BGSS tariff. | ||||||||||||||||
Derivative Instruments | ||||||||||||||||
NJR accounts for its financial instruments, such as futures, options, foreign exchange contracts and swaps, as well as its physical commodity contracts related to the purchase and sale of natural gas at NJRES, as derivatives, and therefore recognizes them at fair value on the Consolidated Balance Sheets. NJR's unregulated subsidiaries record changes in the fair value of their financial commodity derivatives and physical forward contracts in gas purchases or operating revenues, as appropriate, on the Consolidated Statements of Operations. NJRES designates its foreign exchange contracts as cash flow hedges of Canadian dollar dominated gas purchases. Changes in the fair value of the effective portion of these hedges are recorded to OCI, a component of stockholders' equity, and reclassified to gas purchases on the Consolidated Statements of Operations when they settle. Ineffective portions of the cash flow hedges are recognized immediately in earnings. NJR did not have derivatives designated as fair value hedges during fiscal 2013 and 2014. | ||||||||||||||||
The Derivatives and Hedging Topic of the ASC also provides for a normal scope exception for qualifying physical commodity contracts that are intended for purchases and sales during the normal course of business and for which physical delivery is probable. NJR applies this normal scope exception to physical commodity contracts at NJNG and forward contracts at NJRCEV, and therefore does not record changes in the fair value of these contracts until the contract settles and the related underlying natural gas or SREC is delivered. NJNG's derivatives used to economically hedge its natural gas purchasing activities are recoverable through its BGSS, a component of its tariff. Accordingly, the offset to the change in fair value of these derivatives is recorded as a regulatory asset or liability on the Consolidated Balance Sheets. | ||||||||||||||||
See Note 4. Derivative Instruments for additional details regarding natural gas trading and hedging activities. | ||||||||||||||||
Fair values of exchange-traded instruments, including futures, swaps, foreign exchange contracts and certain options, are based on actively quoted market prices. Fair values are subject to change in the near term and reflect management's best estimate based on various factors. In establishing the fair value of commodity contracts that do not have quoted prices, such as physical contracts, over-the-counter options and swaps and certain embedded derivatives, management uses available market data and pricing models to estimate fair values. Estimating fair values of instruments that do not have quoted market prices requires management's judgment in determining amounts that could reasonably be expected to be received from, or paid to, a third party in settlement of the instruments. These amounts could be materially different from amounts that might be realized in an actual sale transaction. | ||||||||||||||||
Revenues | ||||||||||||||||
Revenues from the sale of natural gas to customers of NJNG are recognized in the period that gas is delivered and consumed by customers, including an estimate for unbilled revenue. | ||||||||||||||||
NJNG records unbilled revenue for natural gas services. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and NJNG recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for gas and the most current tariff rates. | ||||||||||||||||
Revenues for NJRES are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur, as noted above. | ||||||||||||||||
Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. | ||||||||||||||||
Gas Purchases | ||||||||||||||||
NJNG's tariff includes a component for BGSS, which is designed to allow NJNG to recover the cost of natural gas through rates charged to its customers and is typically revised on an annual basis. As part of computing its BGSS rate, NJNG projects its cost of natural gas, net of supplier refunds, the impact of hedging activities and credits from non-firm sales and transportation activities. NJNG subsequently recovers or credits the difference, if any, of actual costs compared with those included in current rates. Any underrecoveries or overrecoveries are either credited to customers or deferred and, subject to BPU approval, reflected in the BGSS rates in subsequent years. | ||||||||||||||||
NJRES' gas purchases represent the total commodity contract cost, recognized upon completion of the transaction, as well as realized gains and losses of settled derivative instruments, both for physical purchase contracts and all financial contracts and unrealized gains and losses on the change in fair value of financial derivative instruments that have not yet settled. | ||||||||||||||||
Income Taxes | ||||||||||||||||
The Company computes income taxes using the asset and liability method, whereby deferred income taxes are generally determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. See Note 12. Income Taxes. | ||||||||||||||||
In addition, NJR evaluates its tax positions to determine the appropriate accounting and recognition of future obligations associated with unrecognized tax benefits. | ||||||||||||||||
The Company invests in property that qualifies for federal ITCs and utilizes the ITCs, as allowed, based on the cost and life of the assets. ITCs at NJNG are deferred and amortized as a reduction to the tax provision over the average lives of the related equipment in accordance with regulatory treatment. ITCs at NJR's unregulated subsidiaries are recognized as a reduction to income tax expense when the property is placed in service. | ||||||||||||||||
Capitalized and Deferred Interest | ||||||||||||||||
NJNG's base rates include the ability for NJNG to recover the cost of debt associated with AFUDC and CWIP. For most of NJNG's construction projects, an incremental cost of equity is also recoverable during periods when NJNG's short-term debt balances are lower than its CWIP. For more information on AFUDC treatment with respect to certain accelerated infrastructure projects, see Note 3 Regulation - Infrastructure programs. | ||||||||||||||||
Capitalized amounts associated with the debt and equity components of NJNG's AFUDC, are recorded in utility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component is recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations and include the following for the fiscal years ended September 30: | ||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | |||||||||||||
AFUDC: | ||||||||||||||||
Debt | $ | 1,057 | $ | 921 | $ | 300 | ||||||||||
Equity | 1,562 | 2,037 | 638 | |||||||||||||
Total | $ | 2,619 | $ | 2,958 | $ | 938 | ||||||||||
Weighted average interest rate | 3.3 | % | 1.05 | % | 1.47 | % | ||||||||||
Pursuant to a BPU order, NJNG is permitted to recover carrying costs on uncollected balances related to SBC program costs, which include NJCEP, RA and USF expenditures. See Note 3. Regulation. The SBC interest rate changes each September based on the August 31 seven-year constant maturity Treasury rate plus 60 basis points. The rate was 2.65 percent, 2.84 percent and 1.61 percent for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. Accordingly, other income included $586,000, $653,000 and $878,000 in the fiscal years ended September 30, 2014, 2013 and 2012, respectively. | ||||||||||||||||
Sales Tax Accounting | ||||||||||||||||
Sales tax and TEFA are collected from customers and presented in both operating revenues and operating expenses on the Consolidated Statements of Operations for the fiscal years ended September 30, as follows: | ||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||
Sales tax | $ | 47.4 | $ | 44.4 | $ | 32.3 | ||||||||||
TEFA (1) | 1.4 | 5 | 6 | |||||||||||||
Total | $ | 48.8 | $ | 49.4 | $ | 38.3 | ||||||||||
-1 | TEFA was phased out in January 2014. | |||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||
Cash and cash equivalents consists of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash of $1 million and $1.1 million as of September 30, 2014 and 2013, respectively, related to escrow balances for utility plant projects, which is recorded in other current and noncurrent assets on the Consolidated Balance Sheets, respectively. | ||||||||||||||||
Property Plant and Equipment | ||||||||||||||||
Regulated property, plant and equipment and solar and wind equipment are stated at original cost. Regulated property, plant and equipment costs include direct labor, materials and third-party construction contractor costs, AFUDC and certain indirect costs related to equipment and employees engaged in construction. Upon retirement, the cost of depreciable regulated property, plus removal costs less salvage, is charged to accumulated depreciation with no gain or loss recorded. | ||||||||||||||||
Depreciation is computed on a straight-line basis over the useful life of the assets for non-regulated assets for financial statement purposes 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 2.44 percent of average depreciable property in fiscal 2014, 2.43 percent in fiscal 2013 and 2.38 percent in fiscal 2012. | ||||||||||||||||
Property, plant and equipment was comprised of the following as of September 30: | ||||||||||||||||
(Thousands) | ||||||||||||||||
Property Classifications | Estimated Useful Lives | 2014 | 2013 | |||||||||||||
Distribution facilities | 38 to 74 years | $ | 1,567,648 | $ | 1,421,885 | |||||||||||
Transmission facilities | 35 to 56 years | 281,488 | 273,853 | |||||||||||||
Storage facilities | 34 to 47 years | 41,669 | 41,687 | |||||||||||||
Solar and wind property | 20 to 25 years | 376,065 | 232,409 | |||||||||||||
All other property | 5 to 35 years | 66,673 | 85,321 | |||||||||||||
Total property, plant and equipment | 2,333,543 | 2,055,155 | ||||||||||||||
Accumulated depreciation and amortization | (449,433 | ) | (412,039 | ) | ||||||||||||
Property, plant and equipment, net | $ | 1,884,110 | $ | 1,643,116 | ||||||||||||
Sale of Asset | ||||||||||||||||
On October 22, 2013, CR&R sold approximately 25.4 acres of undeveloped land located in Monmouth County for $6 million, generating a pre-tax gain after closing costs of $313,000, which was recognized in other income on the Unaudited Condensed Consolidated Statements of Operations. | ||||||||||||||||
Disposal of Equipment | ||||||||||||||||
In October 2012, certain NJRCEV's solar assets sustained damage as a result of Superstorm Sandy. To the extent that any of the assets were deemed irreparable, the Company disposed of the damaged assets. As a result, the Company recognized a pre-tax loss of $766,000 during fiscal 2013, which is included in other income on the Consolidated Statements of Operations. The Company also received $997,000 from an insurance claim, representing the replacement value of the disposed assets and recorded a gain in the same amount in other income on the Consolidated Statements of Operations. | ||||||||||||||||
Impairment of Long-Lived Assets | ||||||||||||||||
The Company reviews the carrying amount of an asset for possible impairment whenever events or changes in circumstances indicate that such amount may not be recoverable. | ||||||||||||||||
No impairments were identified for the fiscal years ended September 30, 2014, 2013 and 2012. | ||||||||||||||||
Available for Sale Securities | ||||||||||||||||
Included in other noncurrent assets on the Consolidated Balance Sheets are certain investments in equity securities of a publicly traded energy company that have a fair value of $10.7 million and $11.7 million as of September 30, 2014 and 2013, respectively. Total unrealized gains associated with these equity securities, which are included as a part of accumulated other comprehensive income, a component of common stock equity, were $8.1 million, $4.8 million after tax, and $9.1 million, $5.4 million after tax, for the fiscal years ended September 30, 2014 and 2013, respectively. Reclassifications made from unrealized gains to realized gains are determined based on average cost. There were no sales of securities during fiscal 2014. During fiscal 2013, NJR received proceeds of approximately $482,000 from the sale of available-for-sale securities and realized a pre-tax gain of $380,000, which is included in other income in the Consolidated Statements of Operations. Reclassifications of realized gains out of OCI into income are determined based on average cost. | ||||||||||||||||
Investments in Equity Investees | ||||||||||||||||
The Company accounts for its investments in Steckman Ridge and Iroquois using the equity method of accounting, where its respective ownership interests are 50 percent or less and/or it has significant influence over operating and management decisions, but is not the primary beneficiary, as defined under ASC 810, Consolidation. The Company's share of earnings is recognized as equity in earnings of affiliates on the Consolidated Statements of Operations. | ||||||||||||||||
The Company accounts for its investment in PennEast using the equity method of accounting. NJR expects the pipeline to cost approximately $1 billion, which will be split among the six investors in accordance with ownership interests. NJR has a 20 percent equity interest and has the ability to exert significant influence, but not control. | ||||||||||||||||
The Company accounts for its investment in OwnEnergy using the cost method of accounting. NJRCEV is not the primary beneficiary of OwnEnergy, nor does it have significant influence over operating and management decisions. Therefore, NJRCEV records dividends, if and when received, as a component of other income on the Consolidated Statements of Operations. | ||||||||||||||||
During the fourth quarter of fiscal 2014, NJR determined that it was unlikely that it would be able to recover the value of its cost method investment in OwnEnergy and, therefore, recognized an impairment loss of $6.4 million, which is included in other income, net on the Consolidated Statements of Operations. See Note 6. Investment in Equity Investees for more information. | ||||||||||||||||
Customer Accounts Receivable and Allowance for Doubtful Accounts | ||||||||||||||||
Receivables consist of natural gas sales and transportation services billed to residential, commercial, industrial and other customers, as well as equipment sales, installations, solar leases and power purchase agreements to commercial and residential customers. NJR evaluates it accounts receivables and, to the extent customer account balances are outstanding for more than 60 days, establishes an allowance for doubtful accounts. The allowance is based on a combination of factors including historical collection experience and trends, aging of receivables, general economic conditions in the company's distribution or sales territories, and customer specific information. NJR writes-off customers' accounts once it is determined they are uncollectible. | ||||||||||||||||
The following table summarizes customer accounts receivable by company as of September 30: | ||||||||||||||||
(Thousands) | 2014 | 2013 | ||||||||||||||
NJRES | $ | 142,566 | 75 | % | $ | 194,263 | 81 | % | ||||||||
NJNG (1) | 41,281 | 22 | 43,045 | 18 | ||||||||||||
NJRCEV | 594 | — | 293 | — | ||||||||||||
NJRHS and other | 5,529 | 3 | 2,680 | 1 | ||||||||||||
Total | $ | 189,970 | 100 | % | $ | 240,281 | 100 | % | ||||||||
-1 | Does not include unbilled revenues of $7.2 million and $7.4 million as of September 30, 2014 and 2013, respectively. | |||||||||||||||
Loan Receivable | ||||||||||||||||
NJNG provides interest-free loans, with terms ranging from two to 10 years, to customers that elect to purchase and install certain energy efficient equipment in accordance with its BPU approved SAVEGREEN program. The loans are recognized at net present value on the Consolidated Balance Sheets. Refer to Note 5. Fair Value for a discussion of the Company's fair value measurement policies and level disclosures. The Company has recorded $3.9 million and $1.9 million in other current assets and $27.3 million and $14.3 million in other noncurrent assets as of September 30, 2014 and 2013, respectively, on the Consolidated Balance Sheets, related to the loans. | ||||||||||||||||
NJR's policy is to establish an allowance for doubtful accounts when loan balances are outstanding for more than 60 days. There was no allowance for doubtful accounts established during fiscal 2014 and 2013. | ||||||||||||||||
Asset Retirement Obligations | ||||||||||||||||
NJR recognizes a liability for its AROs based on the fair value of the liability when incurred, which is generally upon acquisition, construction, development and/or through the normal operation of the asset. Concurrently, NJR also capitalizes an asset retirement cost by increasing the carrying amount of the related asset by the same amount as the liability. In periods subsequent to the initial measurement, NJR is required to recognize changes in the liability resulting from the passage of time (accretion) or due to revisions to either timing or the amount of the originally estimated cash flows to settle the conditional ARO. | ||||||||||||||||
Pension and Postemployment Plans | ||||||||||||||||
NJR has two noncontributory defined pension plans covering eligible employees, including officers. Benefits are based on each employee's years of service and compensation. NJR's funding policy is to contribute annually to these plans at least the minimum amount required under ERISA, as amended, and not more than can be deducted for federal income tax purposes. Plan assets consist of equity securities, fixed-income securities and short-term investments. NJR made no discretionary contributions to the pension plans in fiscal 2014, and contributed $20 million in aggregate to the plans in fiscal 2013 and 2012, respectively. | ||||||||||||||||
NJR also provides two primarily noncontributory medical and life insurance plans for eligible retirees and dependents. Medical benefits, which make up the largest component of the plans, are based upon an age and years-of-service vesting schedule and other plan provisions. Funding of these benefits is made primarily into Voluntary Employee Beneficiary Association trust funds. NJR contributed $5 million, $6 million and $5.8 million in aggregate to these plans in fiscal 2014, 2013 and 2012, respectively. | ||||||||||||||||
See Note 10. Employee Benefit Plans, for a more detailed description of the Company's pension and postemployment plans. | ||||||||||||||||
Foreign Currency Transactions | ||||||||||||||||
NJRES' market area includes Canadian delivery points and as a result incurs certain natural gas commodity costs and demand fees that are denominated in Canadian dollars. Gains or losses that occur as a result of these foreign currency transactions are reported as a component of gas purchases on the Consolidated Statements of Operations and were not material during the fiscal years ended September 30, 2014, 2013 and 2012. | ||||||||||||||||
Recent Updates to the Accounting Standards Codification | ||||||||||||||||
Balance Sheet Offsetting | ||||||||||||||||
In December 2011, the FASB issued ASU No. 2011-11, an amendment to ASC 210, Balance Sheet, requiring additional disclosures about the nature of an entity's rights of setoff and related master netting arrangements. ASU 2013-01, issued in January 2013, further clarified that the amended guidance was applicable to certain financial and derivative instruments. The Company applied the provisions of the amended guidance retrospectively effective October 1, 2013. The guidance did not impact the Company's financial position, results of operations or cash flows, however, it required additional disclosures that are included in Note 4. Derivative Instruments. | ||||||||||||||||
Income Taxes | ||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, an amendment to ASC 740, Income Taxes, which clarifies financial statement presentation for unrecognized tax benefits. The ASU requires that an unrecognized tax benefit, or portion thereof, shall be presented in the balance sheet as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss or a tax credit carryforward. To the extent such a deferred tax asset is not available or the company does not intend to use it to settle any additional taxes that would result from the disallowance of a tax position, the related unrecognized tax benefit will be presented as a liability in the financial statements. The amended guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company currently does not have unrecognized tax benefits recorded on its balance sheet and does not expect any impact to its financial position upon adoption during its first quarter of fiscal 2015. | ||||||||||||||||
Discontinued Operations | ||||||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The new guidance changes the definition and reporting of discontinued operations to include only those disposals that represent a strategic shift and that have a major effect on an entity's operations and financial results. The new guidance, which also requires additional disclosures, becomes effective for annual periods beginning on or after December 15, 2014 and interim periods within those years. The company does not expect an impact to its financial position, results of operations and cash flows upon adoption. | ||||||||||||||||
Revenue | ||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, and added Topic 606, Revenue from Contracts with Customers, to the ASC. ASC 606 supersedes ASC 605, Revenue Recognition, as well as most industry-specific guidance, and prescribes a single, comprehensive revenue recognition model designed to improve financial reporting comparability across entities, industries, jurisdictions and capital markets. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Upon adoption, the guidance will be applied on a full or modified retrospective basis. The Company is currently evaluating the provisions of ASC 606 to understand the impact, if any, to its financial position, results of operations and cash flows upon adoption. | ||||||||||||||||
Stock Compensation | ||||||||||||||||
In June 2014, the FASB issued ASU No. 2014-12, an amendment to ASC 718, Compensation - Stock Compensation, which clarifies the accounting for performance awards when the terms of the award provide that a performance target could be achieved after the requisite service period. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The company does not expect any impact to its financial position, results of operations and cash flows upon adoption. | ||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||
The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects as of September 30: | ||||||||||||||||
(Thousands) | Unrealized gain on available for sale securities | Net unrealized gain on derivatives | Adjustment to postemployment benefit obligation | Total | ||||||||||||
Balance as of September 30, 2012 | $ | 4,921 | $ | 51 | $ | (15,743 | ) | $ | (10,771 | ) | ||||||
Other comprehensive income, net of tax | ||||||||||||||||
Other comprehensive income (loss), before reclassifications, net of tax of $(485), $16, $(5,124), $(5,593) | 703 | (28 | ) | 7,526 | 8,201 | |||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $155, $7, $(810), $(648) | (224 | ) | (1) | (11 | ) | (2) | 1,184 | (3) | 949 | |||||||
Net current-period other comprehensive income (loss), net of tax of $(330), $23, $(5,934), $(6,241) | 479 | (39 | ) | 8,710 | 9,150 | |||||||||||
Balance at September 30, 2013 | $ | 5,400 | $ | 12 | $ | (7,033 | ) | $ | (1,621 | ) | ||||||
Other comprehensive income, net of tax | ||||||||||||||||
Other comprehensive (loss), before reclassifications, net of tax of $426 $159, $3,334, $3,919 | (618 | ) | (273 | ) | (5,006 | ) | (5,897 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(98), $(1,172), $(1,270) | — | (1) | 168 | (2) | 1,756 | (3) | 1,924 | |||||||||
Net current-period other comprehensive income, net of tax of $426, $61, $2,162, $2,649 | (618 | ) | (105 | ) | (3,250 | ) | (3,973 | ) | ||||||||
Balance at September 30, 2014 | $ | 4,782 | $ | (93 | ) | $ | (10,283 | ) | $ | (5,594 | ) | |||||
-1 | Reclassified to other income in the Consolidated Statements of Operations. | |||||||||||||||
-2 | Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases in the Consolidated Statements of Operations. | |||||||||||||||
-3 | Included in the computation of net periodic pension cost, a component of O&M expense in the Consolidated Statements of Operations. | |||||||||||||||
Use of Estimates | ||||||||||||||||
The preparation of financial statements in conformity with GAAP requires NJR to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a monthly basis, NJR evaluates its estimates, including those related to the calculation of the fair value of derivative instruments, debt, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation. AROs are evaluated as often as needed. NJR's estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. | ||||||||||||||||
NJR has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, NJR will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is NJR's policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is NJR's policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates. |
REGULATION
REGULATION | 12 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Regulated Operations [Abstract] | ' | ||||||
REGULATION | ' | ||||||
REGULATION | |||||||
The EDECA is the legal framework for New Jersey's public utility and wholesale energy landscape. NJNG is required, pursuant to a written order by the BPU under EDECA, to open its residential markets to competition from third-party natural gas suppliers. Customers can choose the supplier of their natural gas commodity in NJNG's service territory. | |||||||
As required by EDECA, NJNG's rates are segregated into two primary components, the commodity portion, which represents the wholesale cost of natural gas, including the cost for interstate pipeline capacity to transport the gas to NJNG's service territory, and the delivery portion, which represents the transportation of the commodity portion through NJNG's gas distribution system to the end-use customer. NJNG does not earn utility gross margin on the commodity portion of its natural gas sales. NJNG earns utility gross margin through the delivery of natural gas to its customers, regardless of whether it or a third-party supplier provides the wholesale natural gas commodity. | |||||||
Under EDECA, the BPU is required to audit the state's energy utilities every two years. The primary purpose of the audit is to ensure that utilities and their affiliates offering unregulated retail services do not have an unfair competitive advantage over nonaffiliated providers of similar retail services. A combined competitive services and management audit of NJNG commenced in August 2013. A draft management audit report was accepted by the BPU on July 23, 2014, for public comment and is waiting for final approval. | |||||||
NJNG is subject to cost-based regulation, therefore, it is permitted to recover authorized operating expenses and earn a reasonable return on its utility investment based on the BPU's approval, in accordance with accounting guidance applicable to regulated operations. 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. | |||||||
As recovery of regulatory assets is subject to BPU approval, if there are any changes in regulatory positions that indicate recovery is not probable, the related cost would be charged to income in the period of such determination. | |||||||
Regulatory assets and liabilities included on the Consolidated Balance Sheets as of September 30, are comprised of the following: | |||||||
(Thousands) | 2014 | 2013 | |||||
Regulatory assets-current | |||||||
Underrecovered gas costs | $ | 12,577 | $ | 953 | |||
Conservation Incentive Program | — | 18,887 | |||||
New Jersey Clean Energy Program | 14,285 | 14,532 | |||||
Total current regulatory assets | $ | 26,862 | $ | 34,372 | |||
Regulatory assets-noncurrent | |||||||
Environmental remediation costs | |||||||
Expended, net of recoveries | $ | 30,916 | $ | 46,968 | |||
Liability for future expenditures | 177,000 | 183,600 | |||||
Deferred income taxes | 9,968 | 10,718 | |||||
Derivatives at fair value, net | — | 19 | |||||
SAVEGREEN | 29,180 | 30,004 | |||||
Postemployment and other benefit costs | 108,507 | 101,415 | |||||
Deferred Superstorm Sandy costs | 15,207 | 14,822 | |||||
Other noncurrent regulatory assets | 6,797 | 14,656 | |||||
Total noncurrent regulatory assets | $ | 377,575 | $ | 402,202 | |||
Regulatory liability-current | |||||||
Conservation Incentive Program | $ | 5,752 | $ | — | |||
Derivatives at fair value, net | 320 | 1,456 | |||||
Total current regulatory liabilities | $ | 6,072 | $ | 1,456 | |||
Regulatory liabilities-noncurrent | |||||||
Cost of removal obligation | $ | 61,163 | $ | 79,315 | |||
Derivatives at fair value, net | 57 | — | |||||
Other noncurrent regulatory liabilities | 106 | 332 | |||||
Total noncurrent regulatory liabilities | $ | 61,326 | $ | 79,647 | |||
NJNG's recovery of costs is facilitated through its base tariff rates, BGSS and other regulatory tariff riders. NJNG is required to make an annual filing to the BPU by June 1 of each year for review of its BGSS, CIP and various other programs and related rates. Annual rate changes are requested to be effective at the beginning of the following fiscal year. In addition, NJNG is also permitted to request approval of certain rate or program changes on an interim basis. All rate and program changes are subject to proper notification and BPU review and approval. | |||||||
Gas Costs | |||||||
NJNG recovers its cost of gas through the BGSS rate component of its customers' bills. NJNG's cost of gas includes the purchased cost of the natural gas commodity, fees paid to pipelines and storage facilities, adjustments as a result of BGSS incentive programs, and hedging transactions. Under-recovered gas costs represent a regulatory asset that generally occurs during periods when NJNG's BGSS rates are lower than actual costs and requests amounts to be recovered from customers in the future. Conversely, over-recovered gas costs represent a regulatory liability that generally occurs when NJNG's BGSS rates are higher than actual costs and requests approval to be returned to customers including interest, when applicable, in accordance with NJNG's approved BGSS tariff. | |||||||
Conservation Incentive Program | |||||||
The CIP permits NJNG to recover utility gross margin variations related to customer usage resulting from customer conservation efforts and allows NJNG to mitigate the impact of weather on its gross margin. Such utility gross margin variations are recovered in the year following the end of the CIP usage year, without interest, and are subject to additional conditions, including an earnings test and an evaluation of BGSS related savings. | |||||||
New Jersey Clean Energy Program | |||||||
The NJCEP is a statewide program that encourages energy efficiency and renewable energy. Funding amounts are determined by the BPU's Office of Clean Energy and all New Jersey utilities are required to share in the annual funding obligation. The current NJCEP program is for the State of New Jersey's fiscal year ending June 2015. NJNG recovers the costs associated with its portion of the NJCEP obligation, including interest, through its SBC rate rider over a one-year period. | |||||||
Environmental Remediation Costs | |||||||
NJNG is responsible for the cleanup of certain former gas manufacturing facilities. Actual expenditures are recovered from customers, with interest, over seven year rolling periods, through a RA rate rider. Recovery for NJNG's estimated future liability will be requested and/or recovered when actual expenditures are incurred. See Note 13. Commitments and Contingencies. | |||||||
Deferred Income Taxes | |||||||
In 1993, NJNG adopted the provisions of ASC 740, Income Taxes, which changed the method used to determine deferred tax assets and liabilities. Upon adoption, NJNG recognized a transition adjustment and corresponding regulatory asset representing the difference between NJNG's existing deferred tax amounts compared with the deferred tax amounts calculated in accordance with the change in method prescribed by ASC 740. NJNG recovers the regulatory asset associated with these tax impacts through future base rates, without interest. | |||||||
Derivatives | |||||||
Derivatives are utilized by NJNG to manage the price risk associated with its natural gas purchasing activities and to participate in certain BGSS incentive programs. The gains and losses associated with NJNG's derivatives are recoverable through its BGSS, as noted above, without interest. See Note 4. Derivatives. | |||||||
SAVEGREEN | |||||||
NJNG administers certain programs that supplement the state's NJCEP and that allows NJNG to promote clean energy to its residential and commercial customers, as described further below. NJNG will recover related expenditures and a weighted average cost of capital through a tariff rider, as approved by the BPU, over a two to 10-year period depending upon the specific program incentive. | |||||||
Postemployment and Other Benefit Costs | |||||||
Postemployment and Other Benefit Costs represents NJNG's underfunded postemployment benefit obligations that the Company began recognizing in fiscal 2006, as a result of changes in the accounting provisions of ASC 715, Compensation and Benefits, as well as a fiscal 2010 tax charge resulting from a change in the deductibility of federal subsidies associated with Medicare D, both of which are deferred as regulatory assets and are recoverable, without interest, in base tariff rates. See Note 10. Employee Benefit Plans. | |||||||
Deferred Superstorm Sandy Costs | |||||||
In October 2012, portions of NJNG's distribution system incurred significant damage as a result of Superstorm Sandy. NJNG filed a petition with the BPU in November 2012 requesting deferral accounting for uninsured incremental O&M costs associated with its restoration efforts, which was approved in May 2013. On October 22, 2014, the BPU approved, as prudent and reasonable, the deferred O&M storm costs to be recovered in NJNG's next base rate case including the appropriate recovery period for such deferred expenses, to be filed no later than November 15, 2015. | |||||||
Other Regulatory Assets | |||||||
Other regulatory assets consists primarily of deferred costs associated with certain components of NJNG's SBC, as discussed further below, and NJNG's compliance with federal and state mandated PIM provisions. NJNG's related costs to maintain the operational integrity of its distribution and transmission main are recoverable, subject to BPU review and approval, in its next base rate case. NJNG is limited to recording a regulatory asset associated with PIM that does not exceed $700,000 per year. In addition, to the extent that project costs are lower than the approved PIM annual expense of $1.4 million, NJNG will record a regulatory liability that will be refundable as a credit to customers' gas costs when the net cumulative liability exceeds $1 million. As of September 30, 2014, NJNG has recorded $3.8 million of PIM in other regulatory assets. | |||||||
Cost of Removal Obligation | |||||||
NJNG accrues and collects for cost of removal in base tariff rates on its utility property, without interest. A regulatory liability represents the current collections in excess of actual expenditures, which the Company will return to customers over approximately 48 years, through a reduction in the depreciation expense component of NJNG's base tariff rates, as approved by the BPU in NJNG's October 2008 base rate case. | |||||||
The following is a description of regulatory proceedings during fiscal 2013 and 2014: | |||||||
BGSS and CIP | |||||||
BGSS rates are normally revised on an annual basis. In addition, to manage the fluctuations in wholesale natural gas costs, NJNG has the ability to make two interim filings during each fiscal year to increase residential and small commercial customer BGSS rates on a self-implementing and provisional basis. NJNG is also permitted to refund or credit back a portion of the commodity costs to customers when the natural gas commodity costs decrease in comparison to amounts projected or to amounts previously collected from customers. Commodity prices were relatively stable during fiscal 2014 and 2013, therefore, no refunds or bill credits were issued to BGSS customers. | |||||||
Concurrent with the annual BGSS filing, NJNG files for an annual review of its CIP. In March 2013, NJNG and South Jersey Gas Company filed a joint petition with the BPU requesting the continuation of the CIP with certain modifications. On May 21, 2014, the BPU approved the continuation of the CIP program with no expiration date; however, it will be subject to review in a future rate filing in 2017. NJNG's annual BGSS and CIP filings are summarized as follows: | |||||||
• | June 2012 BGSS/CIP filing — NJNG proposed to maintain its BGSS rate. In addition, NJNG requested approval to decrease the CIP rate for residential non-heating customers and increase the CIP rates for residential heating and commercial customers, which increased an average residential heat customer's bill by 2.4 percent, effective October 2012. In May 2013, the BPU approved the changes on a final basis. In May 2013, NJNG notified the BPU that it was going to reduce its BGSS rate resulting in a 5.2 percent decrease to an average residential heat customer's bill, effective June 1, 2013. | ||||||
• | June 2013 BGSS/CIP filing — NJNG proposed to maintain its BGSS rate. In addition, NJNG proposed a 1 percent reduction to an average residential heat customer's bill related to the CIP factor. The CIP rate reduction was provisionally approved by the BPU on October 16, 2013, to be effective November 1, 2013. On November 21, 2013, NJNG notified the BPU of its intent to reduce its BGSS rate, effective December 1, 2013, resulting in a 6 percent decrease to the average residential heat customer's bill. On July 23, 2014, the BPU approved these rates on a final basis. | ||||||
• | June 2014 BGSS/CIP filing — NJNG proposed to maintain its BGSS rate. In addition, NJNG proposed a 4.3 percent reduction to an average residential heat customer's bill related to the CIP factor for fiscal 2015. On September 30, 2014, the BPU provisionally approved these rates to be effective October 1, 2014. | ||||||
• | On October 1, 2014, NJNG implemented a decrease to its BGSS price for residential sales and general service small sales customers resulting in a 5 percent decrease to the average residential heat customer's bill. | ||||||
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 has implemented BPU-approved infrastructure projects that are designed to enhance the reliability of NJNG's gas distribution system, including AIP and SAFE. The AIP projects, which totaled approximately $148.7 million, were constructed and gas was introduced to the system from 2009 through October 2012. In May 2013, a base rate change was approved by the BPU that permits NJNG to recover a total of approximately $15.3 million annually. Depending on the infrastructure project, recoveries include a weighted average cost of capital of 7.76 percent or 7.12 percent with a return on equity of 10.3 percent. | |||||||
In October 2012, the BPU approved NJNG's petition to implement the SAFE program, investing up to $130 million, exclusive of AFUDC, over a four-year period to replace portions of NJNG's gas distribution unprotected steel and cast iron infrastructure in order to improve the safety and reliability of the gas distribution system. The approved SAFE Program includes the deferral of infrastructure costs subject to review in NJNG's next base rate case to be filed no later than November 15, 2015, the deferral of depreciation expense on SAFE investments and recognizes an overall rate of return on infrastructure investments of 6.9 percent, including a return on equity of 9.75 percent. The deferred cost recovery will include accruals for both debt and equity components of AFUDC while construction is completed but not yet in service. In accordance with ASC 980, Regulated Operations, when SAFE construction projects are placed in service, NJNG will accrue an AFUDC debt rate. For ratemaking purposes, subsequent to projects being placed into service, NJNG will continue to earn an AFUDC rate of 6.9 percent per year until such time that NJNG receives approval for recovery of all costs through base rates. | |||||||
In June 2012, the BPU approved a pilot program for NJNG to invest up to $10 million to build NGV refueling stations in Monmouth, Ocean and Morris counties. On April 23, 2014, the BPU approved NJNG's request to include a cost recovery filing to the BPU within the Company's next base rate case to be filed no later than November 15, 2015. In addition, the BPU approved a deferred accounting methodology related to the NGV investment costs consistent with NJNG's SAFE Program. The NGV program was authorized by the BPU to earn an overall weighted average cost of capital of 7.1 percent, including a return on equity of 10.3 percent. A portion of the proceeds from the utilization of the NGV equipment, along with any available federal and state incentives, will be credited back to ratepayers to help offset the cost of this investment. As of September 30, 2014, NJNG has begun development on three NGV stations for a total investment of approximately $5.8 million to date. | |||||||
On September 3, 2013, NJNG filed a petition seeking approval of NJ RISE, which consists of six capital investment projects estimated to cost $102.5 million over a five-year period, excluding AFUDC, for gas distribution storm hardening and mitigation projects, along with incremental O&M expenses. The submission was made in response to a March 2013 BPU order, initiating a proceeding to investigate prudent, cost efficient and effective opportunities to protect New Jersey's utility infrastructure from future major storm events. These system enhancements are intended to minimize service impacts during extreme weather events to customers that live in the most storm prone areas of NJNG's service territory. In the filing, NJNG seeks to recover the capital costs associated with NJ RISE through an annual adjustment to its base rate. On July 23, 2014, the BPU issued an order approving a Stipulation of Settlement related to the NJ RISE capital infrastructure program that requires NJNG to submit a filing in May 2015 to recover costs through July 31, 2015, associated with NJ RISE. Those costs will be recovered through an adjustment to base rates as of November 1, 2015. Additional cost recovery will be included in NJNG's next base rate case scheduled to be filed no later than November 15, 2015. | |||||||
BGSS Incentive Programs | |||||||
NJNG is eligible to receive financial incentives for reducing BGSS costs through a series of utility gross margin-sharing programs that include off-system sales, capacity release, storage incentive and FRM programs. In August 2011, the BPU approved an extension of NJNG's BGSS incentive programs for four years through October 31, 2015, maintaining the existing margin-sharing percentages. This agreement also permits the Company to annually propose a process to evaluate and discuss alternative incentive programs, should performance of the existing incentives or market conditions warrant re-evaluation. | |||||||
SAVEGREEN | |||||||
SAVEGREEN conducts home energy audits and provides various grants, incentives and financing alternatives, which are designed to encourage the installation of high efficiency heating and cooling equipment and other energy efficiency upgrades to promote energy efficiency incentives to its residential and commercial customers while stimulating state and local economies through the creation of jobs. Depending on the specific initiative, NJNG recovers costs associated with the programs over a two to 10-year period through a tariff rider mechanism. As of September 30, 2014, the BPU has approved total SAVEGREEN expenditures of $85 million related to grants and rebates, of which, NJNG has spent a total of $52.8 million and approved $93.1 million related to customer financing incentives, of which, NJNG has provided interest-free loans in the amount of $38.8 million. | |||||||
SAVEGREEN investments and costs are filed with the BPU on an annual basis and include the following: | |||||||
• | June 2012 SAVEGREEN filing — In June 2013, the BPU approved NJNG's 2012 request to extend and expand SAVEGREEN through June 2015, with certain modifications, resulting in a planned investment of more than $85 million, which includes $17.3 million of investments in grants and rebates, and includes a weighted average cost of capital of 6.9 percent. In addition, the BPU approved a tariff rider rate increase of approximately 1.7 percent to recover costs and investments related to SAVEGREEN over a two to 10-year period, which represents an an annual recovery of approximately $12.4 million. | ||||||
Additionally, in June 2014, NJNG submitted a rate filing for the recovery of SAVEGREEN costs, which proposes to maintain the existing rate. | |||||||
Societal Benefits Clause | |||||||
The SBC is comprised of three primary riders that allow NJNG to recover costs associated with USF, which is a permanent statewide program for all natural gas and electric utilities for the benefit of income-eligible customers, MGP remediation, and the NJCEP. NJNG has submitted the following filings to the BPU, which includes a report of program expenditures incurred each program year: | |||||||
• | February 2012 SBC filing — NJNG requested, and received, BPU approval of its MGP expenditures incurred through June 2011, which continued its existing overall SBC rate and recovery that was approved by the BPU, effective November 2011. | ||||||
• | June 2012 USF filing — NJNG filed to reduce the USF recovery rate resulting in a .1 percent decrease for the average residential heat customer's bill. The rate was approved by the BPU, effective October 2012. | ||||||
• | June 2013 USF filing — NJNG filed to reduce the USF recovery rate resulting in a .5 percent decrease for the average residential heat customer's bill effective October 1, 2013. The rate was approved by the BPU in September 2013. | ||||||
• | July 2013 SBC filing — NJNG requested approval of its MGP expenditures incurred through June 2013, as well as a .2 percent reduction to the average residential heat customer's bill related to the SBC RA factor to recover $18.7 million annually, and a 1.9 percent increase related to its NJCEP factor. The rates were approved by the BPU on a provisional basis, effective December 1, 2013, and on a final basis in July 2014. | ||||||
• | June 2014 USF filing — NJNG filed to to increase the statewide USF rate, resulting in a .4 percent increase to the average residential heat customer's bill effective October 1, 2014. The rate was approved by the BPU in September 2014. | ||||||
• | September 2014 SBC filing — NJNG requested approval of its MGP expenditures incurred through June 2014, as well as a 3 percent reduction to the average residential heat customer's bill, to recover $8.5 million annually related to the SBC RA factor and $16.3 million related to the NJCEP factor. | ||||||
• | Additionally, in November 2012, the BPU approved NJNG's funding obligations for NJCEP for the period from January 2013 to June 2013, of approximately $9.8 million. In June 2013, the BPU approved NJNG's funding obligations for July 2013 to June 2014, of approximately $15.6 million. In June 2014, the BPU approved NJNG's funding obligations for July 2014 to June 2015, of approximately $15.6 million. Accordingly, NJNG recorded the obligation and corresponding regulatory asset on the Consolidated Balance Sheets. | ||||||
Other Regulatory Initiatives | |||||||
In November 2012, NJNG filed a petition with the BPU requesting deferral accounting for uninsured incremental O&M costs associated with Superstorm Sandy, which was subsequently approved in May 2013. In March 2013, the BPU issued an Order establishing a generic proceeding to review the prudency of costs incurred by New Jersey utility companies in response to major storm events in 2011 and 2012. In July 2013, NJNG filed its detailed report including unreimbursed, uninsured incremental storm restoration costs and capital expenditures. As of September 30, 2014, NJNG has deferred $15.2 million of these costs as a regulatory asset. On October 22, 2014, the BPU approved, as prudent and reasonable, the deferred O&M storm costs to be recovered in NJNG's next base rate case to be filed no later than November 15, 2015. | |||||||
In December 2012, NJNG filed a petition with the BPU requesting approval of a municipal consent in the Borough of Sayreville, New Jersey to provide natural gas distribution service to Red Oak Power, LLC, an electric generating facility. The municipal consent was approved by the BPU in September 2013. In December 2013, the BPU approved a gas service agreement between TAQA GEN-X, LLC and NJNG that allows NJNG to provide transportation service to Red Oak Power, LLC, through September 2022. Construction to connect to the plant commenced during the fourth quarter of fiscal 2014, and is anticipated to cost approximately $1 million, which will be reimbursed by Red Oak Power, LLC. Service is expected to begin in the first half of fiscal 2015. | |||||||
On April 23, 2014, the BPU approved a petition filed by NJNG requesting authorization over a three-year period to issue up to $300 million of medium-term notes with a maturity of not more than 30 years, renew its revolving credit facility expiring August 2014 for up to five years, enter into interest rate risk management transactions related to debt securities and redeem, refinance or defease any of NJNG's outstanding long-term debt securities. |
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
DERIVATIVE INSTRUMENTS | ' | ||||||||||||||||||
DERIVATIVE INSTRUMENTS | |||||||||||||||||||
The Company is subject to commodity price risk due to fluctuations in the market price of natural gas, SRECs, and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs, and electricity. In addition, the Company may utilize foreign currency derivatives as cash flow hedges of Canadian dollar denominated gas purchases. These contracts, with a few exceptions as described below, are accounted for as derivatives. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Consolidated Balance Sheets. For a more detailed discussion of the Company's fair value measurement policies and level disclosures associated with the NJR's derivative instruments, see Note 5. Fair Value. | |||||||||||||||||||
Since the Company chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS as appropriate, changes in the fair value of these derivative instruments are recorded as a component of gas purchases or operating revenues, as appropriate for NJRES, on the Consolidated Statements of Operations as unrealized gains or (losses). For NJRES at settlement, realized gains and (losses) on all financial derivative instruments are recognized as a component of gas purchases and realized gains and (losses) on all physical derivatives follow the presentation of the related unrealized gains and (losses) as a component of either gas purchases or operating revenues. | |||||||||||||||||||
NJRES also enters into natural gas transactions in Canada and, consequently, is exposed to fluctuations in the value of Canadian currency relative to the US dollar. NJRES utilizes foreign currency derivatives to lock in the currency translation rate associated with natural gas transactions denominated in Canadian currency. The derivatives may include currency forwards, futures, or swaps and are accounted for as derivatives. These derivatives are being used to hedge future forecasted cash payments associated with transportation and storage contracts along with purchases of natural gas. The Company has designated these foreign currency derivatives as cash flow hedges of that exposure, and expects the hedge relationship to be highly effective throughout the term. Since NJRES designates its foreign exchange contracts as cash flow hedges, changes in fair value of the effective portion of the hedge are recorded in OCI. When the foreign exchange contracts are settled and the related purchases are recognized in income, realized gains and (losses) are recognized in gas purchases on the Consolidated Statements of Operations. | |||||||||||||||||||
As a result of NJRES entering into transactions to borrow gas, commonly referred to as “park and loans,” an embedded derivative is created related to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Consolidated Balance Sheets, with changes in value recognized in current period earnings. | |||||||||||||||||||
Changes in fair value of NJNG's financial derivative instruments are recorded as a component of regulatory assets or liabilities on the Consolidated Balance Sheets. NJNG has received regulatory approval to defer and to recover these amounts through future BGSS rates as an increase or decrease to the cost of natural gas in NJNG's tariff for gas service. | |||||||||||||||||||
The Company elects NPNS accounting treatment on all physical commodity contracts at NJNG. These contracts are accounted for on an accrual basis. Accordingly, physical purchases are recognized in regulatory assets or liabilities on the Consolidated Balance Sheets when the contract settles and the natural gas is delivered and amortized in current period earnings based on the current BPU BGSS factor. | |||||||||||||||||||
NJRCEV hedges certain of its expected production of SRECs through forward and futures contracts. The contracts require the Company to physically deliver the SRECs upon settlement. The Company elects NPNS accounting treatment on all SREC forward and futures contracts it enters into. NJRCEV recognizes the related revenue upon transfer of the SREC certificate to the stated counterparty. | |||||||||||||||||||
Fair Value of Derivatives | |||||||||||||||||||
The following table reflects the fair value of NJR's derivative assets and liabilities recognized on the Consolidated Balance Sheets as of September 30: | |||||||||||||||||||
Fair Value | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(Thousands) | Balance Sheet Location | Asset | Liability | Asset | Liability | ||||||||||||||
Derivatives | Derivatives | Derivatives | Derivatives | ||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
NJRES: | |||||||||||||||||||
Foreign currency contracts | Derivatives - current | $ | — | $ | 155 | $ | 16 | $ | 3 | ||||||||||
Derivatives - noncurrent | — | — | — | 2 | |||||||||||||||
Fair value of derivatives designated as hedging instruments | $ | — | $ | 155 | $ | 16 | $ | 5 | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
NJNG: | |||||||||||||||||||
Financial commodity contracts | Derivatives - current | $ | 2,525 | $ | 2,205 | $ | 3,502 | $ | 2,045 | ||||||||||
Derivatives - noncurrent | 82 | 25 | 121 | 140 | |||||||||||||||
NJRES: | |||||||||||||||||||
Physical forward commodity contracts | Derivatives - current | 15,391 | 30,778 | 11,282 | 14,573 | ||||||||||||||
Derivatives - noncurrent | 35 | 132 | 541 | 22 | |||||||||||||||
Financial commodity contracts | Derivatives - current | 46,307 | 46,725 | 38,527 | 23,769 | ||||||||||||||
Derivatives - noncurrent | 5,537 | 6,533 | 2,099 | 2,294 | |||||||||||||||
Fair value of derivatives not designated as hedging instruments | $ | 69,877 | $ | 86,398 | $ | 56,072 | $ | 42,843 | |||||||||||
Total fair value of derivatives | $ | 69,877 | $ | 86,553 | $ | 56,088 | $ | 42,848 | |||||||||||
As of September 30, 2014, the gross notional amount of the foreign currency transactions was approximately $2.9 million, and ineffectiveness in the hedge relationship is immaterial to the financial results of NJR. | |||||||||||||||||||
Offsetting of Derivatives | |||||||||||||||||||
NJR transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty, however NJR's policy is to present its derivative assets and liabilities on a gross basis in the Unaudited Condensed Consolidated Balance Sheets. | |||||||||||||||||||
The tables below summarize the reported gross amounts, the amounts that NJR has the right to offset but elects not to, financial collateral, as well as the net amounts NJR could present in the Unaudited Condensed Consolidated Balance Sheets but elects not to. | |||||||||||||||||||
(Thousands) | Amounts Presented in Balance Sheets (1) | Offsetting Derivative Instruments (2) | Financial Collateral Received/Pledged (3) | Net Amounts (4) | |||||||||||||||
As of September 30, 2014: | |||||||||||||||||||
Derivative assets: | |||||||||||||||||||
NJRES | |||||||||||||||||||
Physical forward commodity contracts | $ | 15,426 | $ | (11,531 | ) | $ | — | $ | 3,895 | ||||||||||
Financial commodity contracts | 51,844 | (51,844 | ) | — | — | ||||||||||||||
Total NJRES | $ | 67,270 | $ | (63,375 | ) | $ | — | $ | 3,895 | ||||||||||
NJNG | |||||||||||||||||||
Financial commodity contracts | $ | 2,607 | $ | (2,230 | ) | $ | (377 | ) | $ | — | |||||||||
Derivative liabilities: | |||||||||||||||||||
NJRES | |||||||||||||||||||
Physical forward commodity contracts | $ | 30,910 | $ | (12,058 | ) | $ | (1,200 | ) | $ | 17,652 | |||||||||
Financial commodity contracts | 53,258 | (51,844 | ) | (1,414 | ) | — | |||||||||||||
Foreign currency contracts | 155 | — | — | 155 | |||||||||||||||
Total NJRES | $ | 84,323 | $ | (63,902 | ) | $ | (2,614 | ) | $ | 17,807 | |||||||||
NJNG | |||||||||||||||||||
Financial commodity contracts | $ | 2,230 | $ | (2,230 | ) | $ | — | $ | — | ||||||||||
As of September 30, 2013: | |||||||||||||||||||
Derivative assets: | |||||||||||||||||||
NJRES | |||||||||||||||||||
Physical forward commodity contracts | $ | 11,823 | $ | (3,549 | ) | $ | (100 | ) | $ | 8,174 | |||||||||
Financial commodity contracts | 40,626 | (26,063 | ) | 6,870 | 21,433 | ||||||||||||||
Foreign currency contracts | 16 | (5 | ) | — | 11 | ||||||||||||||
Total NJRES | $ | 52,465 | $ | (29,617 | ) | $ | 6,770 | $ | 29,618 | ||||||||||
NJNG | |||||||||||||||||||
Financial commodity contracts | $ | 3,623 | $ | (2,185 | ) | $ | 214 | $ | 1,652 | ||||||||||
Derivative liabilities: | |||||||||||||||||||
NJRES | |||||||||||||||||||
Physical forward commodity contracts | $ | 14,595 | $ | (3,549 | ) | $ | (500 | ) | $ | 10,546 | |||||||||
Financial commodity contracts | 26,063 | (26,063 | ) | — | — | ||||||||||||||
Foreign currency contracts | 5 | (5 | ) | — | — | ||||||||||||||
Total NJRES | $ | 40,663 | $ | (29,617 | ) | $ | (500 | ) | $ | 10,546 | |||||||||
NJNG | |||||||||||||||||||
Financial commodity contracts | $ | 2,185 | $ | (2,185 | ) | $ | — | $ | — | ||||||||||
-1 | Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. | ||||||||||||||||||
-2 | Offsetting derivative instruments include: transactions with NAESB netting election, transactions held by FCM's with net margining and transactions with ISDA netting. | ||||||||||||||||||
-3 | Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties. | ||||||||||||||||||
-4 | Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20. | ||||||||||||||||||
NJRES utilizes financial derivatives to economically hedge the gross margin associated with the purchase of physical gas for injection into storage and the subsequent sale of physical gas at a later date. The gains or (losses) on the financial transactions that are economic hedges of the cost of the purchased gas are recognized prior to the gains or (losses) on the physical transaction, which are recognized in earnings when the natural gas is sold. Therefore, mismatches between the timing of the recognition of realized gains or (losses) on the financial derivative instruments and gains or (losses) associated with the actual sale of the natural gas that is being economically hedged along with fair value changes in derivative instruments creates volatility in the results of NJRES, although the Company's intended economic results relating to the entire transaction are unaffected. | |||||||||||||||||||
The following table reflects the effect of derivative instruments on the Consolidated Statements of Operations as of September 30: | |||||||||||||||||||
(Thousands) | Location of gain (loss) recognized in income on derivatives | Amount of gain (loss) recognized | |||||||||||||||||
in income on derivatives | |||||||||||||||||||
Derivatives not designated as hedging instruments: | 2014 | 2013 | 2012 | ||||||||||||||||
NJRES: | |||||||||||||||||||
Physical commodity contracts | Operating revenues | $ | (48,977 | ) | $ | 1,117 | $ | (7,187 | ) | ||||||||||
Physical commodity contracts | Gas purchases | (83,847 | ) | (17,194 | ) | 12,967 | |||||||||||||
Financial commodity contracts | Gas purchases | (118,872 | ) | 41,183 | 81,872 | ||||||||||||||
Total unrealized and realized (losses) gains | $ | (251,696 | ) | $ | 25,106 | $ | 87,652 | ||||||||||||
The table above does not include gains (losses) associated with NJNG's financial derivatives that totaled $10.1 million, $1.8 million and $(25.3) million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. These derivatives are part of NJNG's risk management activities that relate to its natural gas purchases and BGSS incentive programs. As these transactions are entered into pursuant to and recoverable through regulatory riders, any changes in the value of NJNG's financial derivatives are deferred in regulatory assets or liabilities resulting in no impact to earnings. | |||||||||||||||||||
As previously noted, NJRES designates its foreign exchange contracts as cash flow hedges, therefore, changes in fair value of the effective portion of the hedges are recorded in OCI and, upon settlement of the contracts, realized gains and (losses) are reclassified from OCI to gas purchases on the Consolidated Statements of Operations. The following table reflects the effect of derivative instruments designated as cash flow hedges on OCI as of September 30: | |||||||||||||||||||
(Thousands) | Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) (1) | Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) | Amount of Gain or (Loss) Recognized on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||||||||
Derivatives in cash flow hedging relationships: | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Foreign currency contracts | $ | (432 | ) | $ | (44 | ) | $ | 266 | $ | (18 | ) | $ | — | $ | — | ||||
-1 | The settlement of foreign currency transactions over the next 12 months is expected to result in the reclassification of $(155,000) from OCI into earnings. The maximum tenor is April 2015. | ||||||||||||||||||
NJNG and NJRES had the following outstanding long (short) derivatives as of September 30: | |||||||||||||||||||
Volume (Bcf) | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
NJNG | Futures | 17.3 | 22.6 | ||||||||||||||||
NJRES | Futures | (62.1 | ) | (64.2 | ) | ||||||||||||||
Financial Options | 1.2 | 1.5 | |||||||||||||||||
Physical | 28.6 | 7.3 | |||||||||||||||||
Broker Margin | |||||||||||||||||||
Generally, exchange-traded futures contracts require posted collateral, referred to as margin, usually in the form of cash. The amount of margin required is comprised of a fixed initial amount based on exchange requirements and a variable amount based on a daily mark-to-market. The Company maintains separate broker margin accounts for NJNG and NJRES. The balances as of September 30, by company, are as follows: | |||||||||||||||||||
(Thousands) | Balance Sheet Location | 2014 | 2013 | ||||||||||||||||
NJNG | Broker margin - Current assets | $ | 1,057 | $ | 213 | ||||||||||||||
NJRES | Broker margin - Current assets | $ | 26,282 | $ | 6,368 | ||||||||||||||
Wholesale Credit Risk | |||||||||||||||||||
NJNG and NJRES are exposed to credit risk as a result of their wholesale marketing activities. In addition, NJRCEV engages in SREC sales. As a result of the inherent volatility in the prices of natural gas commodities, derivatives and SRECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty failed to perform the obligations under its contract (e.g., failed to deliver or pay for natural gas), then the Company could sustain a loss. | |||||||||||||||||||
NJR monitors and manages the credit risk of its wholesale marketing operations through credit policies and procedures that management believes reduce overall credit risk. These policies include a review and evaluation of current and prospective counterparties' financial statements and/or credit ratings, daily monitoring of counterparties' credit limits and exposure, daily communication with traders regarding credit status and the use of credit mitigation measures, such as collateral requirements and netting agreements. Examples of collateral include letters of credit and cash received for either prepayment or margin deposit. Collateral may be requested due to NJR's election not to extend credit or because exposure exceeds defined thresholds. Most of NJR's wholesale marketing contracts contain standard netting provisions. These contracts include those governed by ISDA and the NAESB. The netting provisions refer to payment netting, whereby receivables and payables with the same counterparty are offset and the resulting net amount is paid to the party to which it is due. | |||||||||||||||||||
The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of September 30, 2014. Internally-rated exposure applies to counterparties that are not rated by S&P or Moody's. In these cases, the Company's or guarantor's financial statements are reviewed, and similar methodologies and ratios used by S&P and/or Moody's are applied to arrive at a substitute rating. Gross credit exposure is defined as the unrealized fair value of physical and financial derivative commodity contracts, plus any outstanding wholesale receivable for the value of natural gas delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received. The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services. | |||||||||||||||||||
(Thousands) | Gross Credit | ||||||||||||||||||
Exposure | |||||||||||||||||||
Investment grade | $ | 143,070 | |||||||||||||||||
Noninvestment grade | 6,462 | ||||||||||||||||||
Internally-rated investment grade | 9,334 | ||||||||||||||||||
Internally-rated noninvestment grade | 9,366 | ||||||||||||||||||
Total | $ | 168,232 | |||||||||||||||||
Conversely, certain of NJNG's and NJRES' derivative instruments are linked to agreements containing provisions that would require cash collateral payments from the Company if certain events occur. These provisions vary based upon the terms in individual counterparty agreements and can result in cash payments if NJNG's credit rating were to fall below its current level. NJNG's credit rating, with respect to S&P, reflects the overall corporate credit profile of NJR. Specifically, most, but not all, of these additional payments will be triggered if NJNG's debt is downgraded by the major credit agencies, regardless of investment grade status. In addition, some of these agreements include threshold amounts that would result in additional collateral payments if the values of derivative liabilities were to exceed the maximum values provided for in relevant counterparty agreements. Other provisions include payment features that are not specifically linked to ratings, but are based on certain financial metrics. | |||||||||||||||||||
Collateral amounts associated with any of these conditions are determined based on a sliding scale and are contingent upon the degree to which the Company's credit rating and/or financial metrics deteriorate, and the extent to which liability amounts exceed applicable threshold limits. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position on September 30, 2014 and 2013, is $39,000 and $2 million, respectively, for which the Company had not posted collateral. If all thresholds related to the credit-risk-related contingent features underlying these agreements had been invoked on September 30, 2014 and 2013, the Company would have been required to post an additional $7,000 and $1.1 million, respectively, to its counterparties. These amounts differ from the respective net derivative liabilities reflected on the Consolidated Balance Sheets because the agreements also include clauses, commonly known as “Rights of Offset,” that would permit the Company to offset its derivative assets against its derivative liabilities for determining additional collateral to be posted, as previously discussed. | |||||||||||||||||||
Liquidation of Clearing Broker | |||||||||||||||||||
In October 2011, MF Global disclosed to the CME that it had a “significant shortfall” in its segregated customer accounts. As of the close of business on November 3, 2011, the market value of NJRES' MF Global account was $27.8 million. NJRES received distributions from the Securities Investor Protection Act Trustee totaling $9.3 million related to its CME positions. During the fourth quarter of fiscal 2012, the Company established an allowance for bad debt of $1.4 million. On October 24, 2012, NJR sold its remaining claim of $18.5 million for $17.1 million. The loss on the sale was equal to the allowance established during fiscal 2012. |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
FAIR VALUE | ' | ||||||||||||||||||
FAIR VALUE | |||||||||||||||||||
Fair Value of Assets and Liabilities | |||||||||||||||||||
The fair value of cash and temporary investments, accounts receivable, current loan receivables, accounts payable, commercial paper and borrowings under revolving credit facilities are estimated to equal their carrying amounts due to the short maturity of those instruments. Non-current loan receivables are recorded based on what the company expects to receive, which approximates fair value. The Company regularly evaluates the credit quality and collection profile of its customers to approximate fair value. | |||||||||||||||||||
As of September 30, the estimated fair value of long-term debt at NJNG and NJR, including current maturities and excluding capital leases, as applicable, is as follows: | |||||||||||||||||||
(Thousands) | 2014 | 2013 | |||||||||||||||||
NJNG | |||||||||||||||||||
Carrying value | $ | 432,845 | $ | 379,845 | |||||||||||||||
Fair market value | $ | 453,773 | $ | 397,175 | |||||||||||||||
NJR | |||||||||||||||||||
Carrying value | $ | 125,000 | $ | 150,000 | |||||||||||||||
Fair market value | $ | 133,136 | $ | 159,343 | |||||||||||||||
NJR utilizes a discounted cash flow method to determine the fair value of its debt. Inputs include observable municipal and corporate yields, as appropriate, for the maturity of the specific issue and the Company's credit rating. As of September 30, 2014 and 2013, NJR discloses its debt within Level 2 of the fair value hierarchy. | |||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||
NJR applies fair value measurement guidance to its financial assets and liabilities, as appropriate, which include financial derivatives and physical commodity contracts qualifying as derivatives, available for sale securities and other financial assets and liabilities. In addition, authoritative accounting literature prescribes the use of a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on the source of the data used to develop the price inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and include the following: | |||||||||||||||||||
Level 1 | Unadjusted quoted prices for identical assets or liabilities in active markets. NJR's Level 1 assets and liabilities include exchange traded futures and options contracts, listed equities and money market funds. Exchange traded futures and options contracts include all energy contracts traded on the NYMEX/CME and ICE that NJR refers internally to as basis swaps, fixed swaps, futures and financial options that are cleared through a FCM. | ||||||||||||||||||
Level 2 | Other significant observable inputs such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services. NJR's Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). 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 was considered to be a “model,” it would still be considered to be a Level 2 input as: | ||||||||||||||||||
1) The data is widely accepted and public | |||||||||||||||||||
2) The data is non-proprietary and sourced from an independent third party | |||||||||||||||||||
3) The data is observable and published | |||||||||||||||||||
These additional adjustments are generally not considered to be significant to the ultimate recognized values. | |||||||||||||||||||
Level 3 | Inputs derived from a significant amount of unobservable market data. These include NJR's best estimate of fair value and are derived primarily through the use of internal valuation methodologies. | ||||||||||||||||||
NJNG's and NJRES' financial derivatives portfolios consist mainly of futures, options and swaps. NJR primarily uses the market approach and its policy is to use actively quoted market prices when available. The principal market for its derivative transactions is the natural gas wholesale market, therefore, the primary source for its price inputs is CME/NYMEX. NJRES also uses ICE, Platts, and Natural Gas Exchange for Canadian delivery points. However, NJRES also engages in transactions that result in transporting natural gas to delivery points for which there is no actively quoted market price. In most instances, the transportation cost to the final delivery location is not significant to the overall valuation. If required, NJRES' policy is to use the best information available to determine fair value based on internal pricing models, which would include estimates extrapolated from broker quotes or other pricing services. | |||||||||||||||||||
NJR also has available for sale securities and other financial assets that include listed equities, mutual funds and money market funds for which there are active exchange quotes available. | |||||||||||||||||||
When NJR determines fair values, measurements are adjusted, as needed, for credit risk associated with its counterparties, as well as its own credit risk. NJR determines these adjustments by using historical default probabilities that correspond to the applicable S&P issuer ratings, while also taking into consideration collateral and netting arrangements that serve to mitigate risk. | |||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized as follows: | |||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant | |||||||||||||||||
Unobservable | |||||||||||||||||||
Inputs | |||||||||||||||||||
(Thousands) | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||
As of September 30, 2014: | |||||||||||||||||||
Assets | |||||||||||||||||||
Physical forward commodity contracts | $ | — | $ | 15,426 | $ | — | $ | 15,426 | |||||||||||
Financial derivative contracts - natural gas | 54,451 | — | — | 54,451 | |||||||||||||||
Available for sale equity securities - energy industry (1) | 10,672 | — | — | 10,672 | |||||||||||||||
Other (2) | 1,299 | — | — | 1,299 | |||||||||||||||
Total assets at fair value | $ | 66,422 | $ | 15,426 | $ | — | $ | 81,848 | |||||||||||
Liabilities | |||||||||||||||||||
Physical forward commodity contracts | $ | — | $ | 30,910 | $ | — | $ | 30,910 | |||||||||||
Financial commodity contracts - natural gas | 55,488 | — | — | 55,488 | |||||||||||||||
Financial commodity contracts - foreign exchange | — | 155 | — | 155 | |||||||||||||||
Total liabilities at fair value | $ | 55,488 | $ | 31,065 | $ | — | $ | 86,553 | |||||||||||
As of September 30, 2013: | |||||||||||||||||||
Assets | |||||||||||||||||||
Physical forward commodity contracts | $ | — | $ | 11,823 | $ | — | $ | 11,823 | |||||||||||
Financial derivative contracts - natural gas | 44,249 | — | — | 44,249 | |||||||||||||||
Financial commodity contracts - foreign exchange | — | 16 | — | 16 | |||||||||||||||
Available for sale equity securities - energy industry (1) | 11,716 | — | — | 11,716 | |||||||||||||||
Other (2) | 1,129 | — | — | 1,129 | |||||||||||||||
Total assets at fair value | $ | 57,094 | $ | 11,839 | $ | — | $ | 68,933 | |||||||||||
Liabilities | |||||||||||||||||||
Physical forward commodity contracts | $ | — | $ | 14,595 | $ | — | $ | 14,595 | |||||||||||
Financial derivative contracts - natural gas | 28,248 | — | — | 28,248 | |||||||||||||||
Financial commodity contracts - foreign exchange | — | 5 | — | 5 | |||||||||||||||
Total liabilities at fair value | $ | 28,248 | $ | 14,600 | $ | — | $ | 42,848 | |||||||||||
-1 | Included in other noncurrent assets on the Consolidated Balance Sheets. | ||||||||||||||||||
-2 | Includes various money market funds in Level 1. |
INVESTMENTS_IN_EQUITY_INVESTEE
INVESTMENTS IN EQUITY INVESTEES | 12 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||
INVESTMENTS IN EQUITY INVESTEES | ' | ||||||
INVESTMENTS IN EQUITY INVESTEES | |||||||
Investments in equity investees includes NJR's equity method and cost method investments. | |||||||
Equity Method Investments | |||||||
During the fourth quarter of fiscal 2014, NJR, through a subsidiary, NJR Pipeline Company, formed PennEast with four other investors, with another investor joining in October 2014, plans to construct and operate a 108-mile pipeline that will extend from northeast Pennsylvania to western New Jersey. | |||||||
As of September 30, NJR's equity method investments include the following: | |||||||
(Thousands) | 2014 | 2013 | |||||
Steckman Ridge (1) | $ | 128,413 | $ | 129,707 | |||
Iroquois | 24,042 | 23,084 | |||||
PennEast | 555 | — | |||||
Total | $ | 153,010 | $ | 152,791 | |||
(1)Includes loans with a total outstanding principal balance of $70.4 million for both fiscal 2014 and 2013, which accrue interest at a variable rate that resets quarterly and are due October 1, 2023. | |||||||
NJRES and NJNG have entered into transportation, storage and park and loan agreements with Steckman Ridge and Iroquois. In addition, NJNG has entered into a precedent capacity agreement with PennEast with an estimated service date of November 1, 2017. See Note 15. Related Party Transactions for more information on these intercompany transactions. | |||||||
Cost Method Investments | |||||||
In fiscal 2012, NJR invested $8.8 million in OwnEnergy, a developer of onshore wind projects, for an 18.7 percent ownership interest and the option, but not the obligation, to purchase certain qualified projects. | |||||||
During fiscal 2014, NJRCEV agreed to acquire the development rights to the following onshore wind farms from OwnEnergy: | |||||||
• | a $21.2 million 9.7 MW project in Two Dot, Montana that was completed in June 2014; and | ||||||
• | a $42 million, 20 MW project in Carroll County, Iowa that is currently under construction and expected to be operational in the second quarter of fiscal 2015. | ||||||
Accordingly, NJRCEV reclassified $2.4 million associated with the wind purchase option from its investment to property, plant and equipment on the Consolidated Balance Sheets, which represents the costs associated with the rights to develop the projects above. | |||||||
During the fourth quarter of fiscal 2014, due to its concerns surrounding the ability of OwnEnergy to fulfill its future obligation to present qualified projects to NJRCEV for investment, the Company reassessed the value of its cost method investment, as well as remaining value of its wind purchase option and determined that it was other-than-temporarily impaired. As a result, NJRCEV recognized an impairment loss of $6.4 million, $3.8 million after tax, which is included in other income, net on the Consolidated Statements of Operations. | |||||||
On October 9, 2014, NJRCEV also acquired the development rights to an $85 million, 48 MW wind project in Rush County, Kansas that is currently under construction and is expected to commence commercial operation in the first quarter of fiscal 2016. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
EARNINGS PER SHARE | ' | |||||||||
EARNINGS PER SHARE | ||||||||||
The following table presents the calculation of the Company's basic and diluted earnings per share for the fiscal years ended September 30: | ||||||||||
(Thousands, except per share amounts) | 2014 | 2013 | 2012 | |||||||
Net income, as reported | $ | 141,970 | $ | 114,809 | $ | 92,879 | ||||
Basic earnings per share | ||||||||||
Weighted average shares of common stock outstanding-basic | 42,099 | 41,658 | 41,527 | |||||||
Basic earnings per common share | $3.37 | $2.76 | $2.24 | |||||||
Diluted earnings per share | ||||||||||
Weighted average shares of common stock outstanding-basic | 42,099 | 41,658 | 41,527 | |||||||
Incremental shares (1) | 362 | 156 | 105 | |||||||
Weighted average shares of common stock outstanding-diluted | 42,461 | 41,814 | 41,632 | |||||||
Diluted earnings per common share (2) | $3.34 | $2.75 | $2.23 | |||||||
-1 | Incremental shares consist of stock options, stock awards and performance units. | |||||||||
-2 | There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2014, 2013 and 2012. |
DEBT
DEBT | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
DEBT | ' | ||||||||
DEBT | |||||||||
NJNG and NJR finance working capital requirements and capital expenditures through the issuance of various long-term debt and other financing arrangements, including unsecured credit and private placement debt shelf facilities. Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. | |||||||||
The following table presents the long-term debt of the Company as of September 30: | |||||||||
(Thousands) | 2014 | 2013 | |||||||
NJNG | |||||||||
First mortgage bonds: | Maturity date: | ||||||||
5.00% | Series HH | 1-Dec-38 | $ | — | $ | 12,000 | |||
4.50% | Series II | 1-Aug-23 | 10,300 | 10,300 | |||||
4.60% | Series JJ | 1-Aug-24 | 10,500 | 10,500 | |||||
4.90% | Series KK | 1-Oct-40 | 15,000 | 15,000 | |||||
5.60% | Series LL | 15-May-18 | 125,000 | 125,000 | |||||
Variable | Series MM | 1-Sep-27 | 9,545 | 9,545 | |||||
Variable | Series NN | 1-Aug-35 | 41,000 | 41,000 | |||||
Variable | Series OO | 1-Aug-41 | 46,500 | 46,500 | |||||
3.15% | Series PP | 15-Apr-28 | 50,000 | 50,000 | |||||
4.77% | Unsecured senior notes | 15-Mar-14 | — | 60,000 | |||||
3.58% | Series QQ | 13-Mar-24 | 70,000 | — | |||||
4.61% | Series RR | 13-Mar-44 | 55,000 | — | |||||
Capital lease obligation-buildings | 1-Jun-21 | 18,726 | 20,381 | ||||||
Capital lease obligation-meters | Various dates | 31,143 | 31,261 | ||||||
Capital lease obligation-equipment | 1-Dec-13 | — | 42 | ||||||
Less: Current maturities of long-term debt | (9,505 | ) | (68,643 | ) | |||||
Total NJNG long-term debt | 473,209 | 362,886 | |||||||
NJR | |||||||||
6.05% | Unsecured senior notes | 24-Sep-17 | 50,000 | 50,000 | |||||
1.94% | Unsecured senior notes | 17-Sep-15 | 25,000 | 25,000 | |||||
2.51% | Unsecured senior notes | 17-Sep-18 | 25,000 | 25,000 | |||||
3.25% | Unsecured senior notes | 17-Sep-22 | 50,000 | 50,000 | |||||
Less: Current maturities of long-term debt | (25,000 | ) | — | ||||||
Total NJR long-term debt | 125,000 | 150,000 | |||||||
Total long-term debt | $ | 598,209 | $ | 512,886 | |||||
Annual long-term debt redemption requirements, excluding capital leases, as of September 30, are as follows: | |||||||||
(Millions) | NJNG | NJR | |||||||
2015 | $ | — | $ | 25 | |||||
2016 | $ | — | $ | — | |||||
2017 | $ | — | $ | 50 | |||||
2018 | $ | 125 | $ | 25 | |||||
2019 | $ | — | $ | — | |||||
Thereafter | $ | 307.8 | $ | 50 | |||||
NJNG First Mortgage Bonds | |||||||||
NJNG and Trustee, entered into the New Mortgage Indenture, dated September 1, 2014, which secures all of the outstanding First Mortgage Bonds issued under the Old Mortgage Indenture. The New 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 New 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 New Mortgage Indenture no longer contains a restriction on the ability of NJNG to pay dividends. New Jersey Administrative Code 14:4-4.7 states that a public utility cannot issue dividends if it's equity to total capitalization ratio falls below 30 percent without regulatory approval. As of September 30, 2014, NJNG equity to total capitalization ratio is 50.9 percent and has the ability to issue up to $841.2 million of FMBs under the terms of the New Mortgage Indenture. | |||||||||
In August 2011, NJNG completed a refunding of its outstanding Auction-Rate Securities whereby the EDA issued three series of Variable Rate Demand Notes with a total principal amount of $97 million with maturity dates ranging from September 2027 to August 2041. NJNG and the EDA entered into a Loan Agreement securing the payment of principal and interest on the notes by NJNG with a pledge of $97 million principal amount of First Mortgage Bonds issued by NJNG. This agreement was amended and restated effective September 1, 2014, to accommodate a new variable interest rate mode. In connection with the change in interest rate mode, NJNG entered into a Continuing Covenant Agreement dated as of September 24, 2014, with Wells Fargo Municipal Capital Strategies, LLC, pursuant to which Wells Fargo agreed to buy the EDA Bonds. Each series of EDA Bonds is expected to accrue interest for five years at a variable rate determined monthly, which rate is initially calculated as .55 percent plus 70 percent of one month LIBOR, subject to earlier redemption or conversion to another interest rate mode. The EDA Bonds are not subject to optional tender while they bear interest at a LIBOR index rate. Any remaining unamortized extinguished debt costs, will be amortized over the life of the new EDA Bonds in accordance with ASC 980, Regulated Operations, therefore, there was no impact to income upon extinguishment. | |||||||||
The rates on these types of investments are generally correlated with the Securities Industry and Financial Markets Association Municipal Swap Index and will initially accrue interest at a daily rate, with a maximum rate of 12 percent per annum. As of September 30, 2014, the interest rate on the EDA Bonds was .66 percent. | |||||||||
On April 15, 2013, NJNG issued $50 million of 3.15 percent senior secured notes due April 15, 2028, in the private placement market pursuant to a note purchase agreement entered into on February 8, 2013. Interest is payable semi-annually. The proceeds were used to refinance short-term debt and will fund capital expenditure requirements. | |||||||||
On March 13, 2014, NJNG issued $70 million of 3.58 percent senior notes due March 13, 2024, and $55 million of 4.61 percent senior notes due March 13, 2044, secured by First Mortgage Bonds in the private placement market pursuant to a note purchase agreement entered into on February 7, 2014. The proceeds were used to pay down short-term debt and redeem NJNG's $60 million, 4.77 percent private placement bonds on March 15, 2014. | |||||||||
On May 27, 2014, NJNG redeemed the $12 million, 5 percent Series HH bonds, which were callable as of December 1, 2013. | |||||||||
NJNG Sale-Leasebacks | |||||||||
NJNG has entered into a sale-leaseback for its headquarters building, which has a 25.5-year term that expires in June 2021, subject to an option by NJNG to renew the lease for additional five-year terms a maximum of four times. The present value of the agreement's minimum lease payments is reflected as both a capital lease asset and a capital lease obligation, which are included in utility plant and long-term debt, respectively, on the Consolidated Balance Sheets. | |||||||||
NJNG received $7.6 million, $7.1 million and $6.5 million for fiscal 2014, 2013 and 2012, respectively, in connection with the sale-leaseback of its natural gas meters. NJNG records a capital lease obligation that is paid over the term of the lease and has the option to purchase the meters back at fair value upon expiration of the lease. During fiscal 2014, 2013 and 2012, NJNG exercised early purchase options with respect to meter leases by making final principal payments of $956,000, $752,000 and $1 million, respectively. This sale-leaseback program is expected to continue on an annual basis. | |||||||||
Contractual commitments for capital lease payments, as of the fiscal years ended September 30, are as follows: | |||||||||
(Millions) | Lease Payments | ||||||||
2015 | $ | 11.9 | |||||||
2016 | 12.1 | ||||||||
2017 | 11 | ||||||||
2018 | 9.1 | ||||||||
2019 | 6.3 | ||||||||
Thereafter | 7.6 | ||||||||
Subtotal | 58 | ||||||||
Less: interest component | (8.1 | ) | |||||||
Total | $ | 49.9 | |||||||
NJR Long-term Debt | |||||||||
NJR has two unsecured, uncommitted private placement debt shelf note agreements. These debt shelf note agreements are to be used for general corporate purposes, including working capital and capital expenditures. | |||||||||
The first agreement was entered into with Prudential on June 30, 2011, in the amount of $75 million, which expired on June 30, 2014, and was amended effective July 25, 2014, by the First Amendment to the Prudential Facility, which allowed for another $100 million under the Prudential Facility. As of September 30, 2014, NJR had $50 million at 3.25 percent outstanding under this agreement, which will mature on September 17, 2022, and $100 million in notes at 3.48 percent due November 7, 2024. | |||||||||
On September 26, 2013, NJR entered into an unsecured, uncommitted $100 million private placement shelf note agreement with MetLife. The MetLife Facility, subject to the terms and conditions set forth therein, allows NJR to issue senior notes to MetLife or certain of MetLife's affiliates from time to time during a three-year issuance period ending September 26, 2016, on terms and conditions, including interest rates and maturity dates, to be agreed upon in connection with each note issuance. The notes issued under the MetLife Facility will be guaranteed by certain unregulated subsidiaries of NJR. As of September 30, 2014, $100 million remains available for borrowing under the MetLife Facility. | |||||||||
Additionally, NJR entered into another debt shelf note agreement on May 12, 2011, in the amount of $100 million, which expired on May 10, 2013. As of September 30, 2014, NJR had two series of notes outstanding under this agreement, $25 million at 1.94 percent, which will mature on September 15, 2015 and $25 million at 2.51 percent, which will mature on September 15, 2018. Notes issued under these agreements are guaranteed by certain unregulated subsidiaries of the Company. | |||||||||
NJR had no long-term, variable-rate debt outstanding as of September 30, 2014 and 2013. | |||||||||
A summary of NJR's and NJNG's short-term bank facilities as of September 30, are as follows: | |||||||||
(Thousands) | 2014 | 2013 | |||||||
NJR | |||||||||
Bank revolving credit facilities (1) | $ | 425,000 | $ | 325,000 | |||||
Notes outstanding at end of period | $ | 148,000 | $ | 97,000 | |||||
Weighted average interest rate at end of period | 1.08 | % | 1 | % | |||||
Amount available at end of period (2) | $ | 256,484 | $ | 210,110 | |||||
Bank term loan | $ | — | $ | 100,000 | |||||
Loan outstanding at end of period | $ | — | $ | 100,000 | |||||
Weighted average interest rate at end of period | — | % | 0.74 | % | |||||
Amount available at end of period | $ | — | $ | — | |||||
Bank letter of credit facility (3) (4) | $ | — | $ | 10,000 | |||||
NJNG | |||||||||
Bank credit facility dedicated to EDA Bonds (1) (4) | $ | — | $ | 100,000 | |||||
Bank revolving credit facilities (1) | $ | 250,000 | $ | 250,000 | |||||
Commercial paper outstanding at end of period | $ | 153,000 | $ | 168,600 | |||||
Weighted average interest rate at end of period | 0.12 | % | 0.13 | % | |||||
Amount available at end of period (5) | $ | 96,269 | $ | 81,400 | |||||
-1 | Committed credit facilities, which require commitment fees on the unused amounts. | ||||||||
-2 | Letters of credit outstanding total $20.5 million and $17.9 million as of September 30, 2014 and 2013, respectively, which reduces amount available by the same amount. | ||||||||
-3 | Uncommitted, expired on June 5, 2014. | ||||||||
-4 | There were no borrowings outstanding as of September 30, 2014 and 2013, respectively. | ||||||||
-5 | Letters of credit outstanding total $731,000 and $266,000 as of September 30, 2014 and 2013, respectively, which reduces amount available by the same amount. | ||||||||
NJR Short-term Debt | |||||||||
NJR had a $325 million unsecured committed credit facility expiring August 22, 2017. On January 24, 2014, NJR entered into an agreement for a $50 million unsecured, committed credit line. The credit line was put in place primarily to provide additional working capital to NJRES to meet any potential margin calls that may arise in NJRES' normal course of business. Effective January 31, 2014, NJR utilized the accordion option available under the NJR Credit Facility to increase the amount of credit available from $325 million to $425 million. The additional credit line was thereby terminated on the same date. The credit facility is used primarily to finance its share repurchases, to satisfy NJRES' short-term liquidity needs and to finance, on an initial basis, unregulated investments. | |||||||||
As of September 30, 2014, NJR has six letters of credit outstanding totaling $20.5 million. One letter of credit for $15 million is issued on behalf of NJRES and five letters of credit, which total $5.5 million, are issued on behalf of NJRCEV. These letters of credit reduce the amount available under NJR's committed credit facility by the same amount. NJR does not anticipate that these letters of credit will be drawn upon by the counterparties, and they will be renewed as necessary. | |||||||||
NJRES' letter of credit is used for margin requirements for natural gas transactions and expires on December 31, 2014. NJRCEV's letters of credit are used to secure construction of ground-mounted solar projects and to secure obligations pursuant to an Interconnection Services Agreement. They expire on dates ranging from November 27, 2014 to August 21, 2015. | |||||||||
On September 13, 2013, NJR, as borrower, and certain of its unregulated subsidiaries, as guarantors, entered into an unsecured one-year $100 million Term Loan Credit Agreement with JPMorgan that expired on September 15, 2014, and was not replaced. | |||||||||
On June 5, 2013, NJR entered into a new agreement permitting the issuance of stand-alone letters of credit for up to $10 million, which expired on June 5, 2014. | |||||||||
On October 24, 2014, NJR entered into a $100 million uncommitted line of credit agreement, with Santander Bank, N.A., expiring on October 23, 2015. | |||||||||
Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities. | |||||||||
NJNG Short-term Debt | |||||||||
NJNG had a $250 million unsecured committed credit facility, which was due to expire in August 2014. On May 15, 2014, NJNG replaced the facility with a new $250 million, five-year, revolving, unsecured credit facility expiring in May 2019. The new NJNG Credit Facility permits the borrowing of revolving loans and swing loans, as well as the issuance of letters of credit. It also permits an increase to the facility, from time to time, with the existing or new lenders, in a minimum of $15 million increments up to a maximum of $50 million at the lending banks' discretion. As of September 30, 2014, the unused amount available under the NJNG Credit Facility, including amounts allocated to the backstop under the commercial paper program and the issuance of letters of credit, was $153 million. | |||||||||
As of September 30, 2014, NJNG has two letters of credit outstanding for $731,000. NJNG's letters of credit are used for collateral for remediation projects and expire on August 11, 2015. These letters of credit reduce the amount available under NJNG's committed credit facility by the same amount. NJNG does not anticipate that these letters of credit will be drawn upon by the counterparty, and will be renewed as necessary. | |||||||||
NJNG entered into the JPMC Facility, which was a $100 million four-year credit facility that was due to expire in August 2015, to provide liquidity support in the event of a failed remarketing of the EDA Bonds and to ensure payment of principal and interest. The JPMC Facility was terminated on September 26, 2014 as a result of the change in the interest rate mode on the EDA bonds. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||
STOCK-BASED COMPENSATION | ||||||||||||
In January 2007, the NJR 2007 Stock Award and Incentive Plan replaced the 2002 Employee and Outside Director Long-Term Incentive Plan. Shares have been issued in the form of options, performance shares, restricted stock and deferred retention stock. The Outside Director Stock Compensation Plan allows for the issuance of non-restricted shares to non-employee directors. As of September 30, 2014, 1,596,316 and 28,897 shares remain available for future issuance to employees and directors, respectively. | ||||||||||||
The following table summarizes all stock-based compensation expense recognized during the following fiscal years: | ||||||||||||
(Thousands) | 2014 | 2013 | 2012 | |||||||||
Stock-based compensation expense: | ||||||||||||
Performance share awards | $ | 2,509 | $ | 1,049 | $ | 1,276 | ||||||
Restricted and non-restricted stock | 1,664 | 1,081 | 1,362 | |||||||||
Deferred retention stock | 13,643 | 1,326 | 2,733 | |||||||||
Compensation expense included in operation and maintenance expense | 17,816 | 3,456 | 5,371 | |||||||||
Income tax benefit | (7,278 | ) | (1,412 | ) | (2,194 | ) | ||||||
Total, net of tax | $ | 10,538 | $ | 2,044 | $ | 3,177 | ||||||
Stock Options | ||||||||||||
The following table summarizes the stock option activity for the past three fiscal years: | ||||||||||||
Shares | Weighted Average | |||||||||||
Exercise Price | ||||||||||||
Outstanding at September 30, 2011 | 109,763 | $27.84 | ||||||||||
Granted | — | — | ||||||||||
Exercised | (28,138 | ) | $25.30 | |||||||||
Forfeited | — | — | ||||||||||
Outstanding at September 30, 2012 | 81,625 | $28.71 | ||||||||||
Granted | — | — | ||||||||||
Exercised | (15,000 | ) | $25.08 | |||||||||
Forfeited | — | — | ||||||||||
Outstanding at September 30, 2013 | 66,625 | $29.53 | ||||||||||
Granted | — | — | ||||||||||
Exercised | (42,500 | ) | $26.26 | |||||||||
Forfeited | — | — | ||||||||||
Outstanding at September 30, 2014 | 24,125 | $30.00 | ||||||||||
Exercisable at September 30, 2014 | 24,125 | $30.00 | ||||||||||
Exercisable at September 30, 2013 | 66,625 | $29.53 | ||||||||||
Exercisable at September 30, 2012 | 81,625 | $28.71 | ||||||||||
There are no costs related to outstanding options for the stock options listed above. During fiscal 2014 and fiscal 2013, NJR received proceeds of $1.2 million and $376,000, respectively, from the exercise of stock options. | ||||||||||||
The following table summarizes stock options outstanding and exercisable as of September 30, 2014: | ||||||||||||
Outstanding and Exercisable | ||||||||||||
Exercise Price Range | Number | Weighted Average | Weighted | Aggregate | ||||||||
Of Stock | Remaining | Average | Intrinsic | |||||||||
Options | Contractual Term | Exercise | Value | |||||||||
(in years) | Price | (in thousands) | ||||||||||
$28.65 - $30.37 | 24,125 | 0.6 | $30.00 | $ | 495 | |||||||
Performance Shares | ||||||||||||
In fiscal 2014, the Company granted to various officers 34,577 performance shares, which are market condition awards that vest on September 30, 2016, subject to the Company meeting certain performance conditions. In fiscal 2014, the Company also granted to various officers 39,287 performance shares, of which 25,240 vest in September 2016 and 14,047 vest annually over a three year period beginning in September 2014, both of which are subject to the Company meeting certain performance conditions. In fiscal 2013, the Company granted to various officers 49,904 performance shares, which are market condition awards that vest on September 30, 2015, subject to the Company meeting certain performance conditions. In fiscal 2012, the Company granted to various officers 28,418 performance shares, which vested on September 30, 2014. There is $2.2 million of deferred compensation related to unvested performance shares that is expected to be recognized over the next two years. | ||||||||||||
The following table summarizes the performance share activity under the NJR 2007 Stock Award and Incentive Plan for the past three fiscal years: | ||||||||||||
Shares (1) | Weighted Average | |||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Non-vested and outstanding at September 30, 2011 | 106,027 | $28.04 | ||||||||||
Granted | 28,418 | $47.17 | ||||||||||
Vested (2) | (49,702 | ) | 30.08 | |||||||||
Cancelled/forfeited | — | — | ||||||||||
Non-vested and outstanding at September 30, 2012 | 84,743 | $33.26 | ||||||||||
Granted | 49,904 | $30.74 | ||||||||||
Vested | — | — | ||||||||||
Cancelled/forfeited (3) | (56,325 | ) | 26.24 | |||||||||
Non-vested and outstanding at September 30, 2013 | 78,322 | $36.70 | ||||||||||
Granted | 73,864 | $40.55 | ||||||||||
Vested (4) | (28,418 | ) | 47.17 | |||||||||
Cancelled/forfeited | — | — | ||||||||||
Non-vested and outstanding at September 30, 2014 | 123,768 | $36.59 | ||||||||||
-1 | The number of common shares issued related to 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 13, 2012, the number of common shares related to performance shares and market condition shares earned was 68.8 percent , or 15,427 shares and 70 percent, or 19,095 shares, respectively. The number represented on this line is the target number of 100 percent. See footnote (1) above. | |||||||||||
-3 | As certified by the Company's Leadership and Compensation Committee on November 12, 2013, the number of common shares granted in fiscal 2011 related to performance shares and market condition shares earned was zero. The number represented on this line is the target number of 100 percent. See footnote (1) above. | |||||||||||
-4 | As certified by the Company's Leadership and Compensation Committee on November 11, 2014, the number of common shares related to performance shares earned was 150 percent, or 42,627 shares, excluding accumulated dividends. The number represented on this line is the target number of 100 percent. See footnote (1) above. | |||||||||||
The Company measures compensation expense related to performance shares based on the fair value of these awards at their date of grant. In accordance with ASC 718, Compensation - Stock Compensation, compensation expense for market condition grants are recognized for awards granted, and are not adjusted based on actual achievement of the performance goals. The Company estimated the fair value of these grants on the date of grant using a lattice model. Performance condition grants are initially fair valued at the company's stock price on grant date, and are subsequently adjusted for actual achievement of the performance goals. | ||||||||||||
Restricted Stock | ||||||||||||
In fiscal 2014, the company granted 16,678 shares of restricted stock that will vest annually over a three year period beginning in October 2014. In fiscal 2013, the company granted 2,139 shares of restricted stock that will vest in October 2015. In fiscal 2012, the company granted 1,929 shares of restricted stock that vested in October 2014. There is $576,000 of deferred compensation related to unvested restricted stock shares that is expected to be recognized over the next two years. | ||||||||||||
The following table summarizes the restricted stock activity under the NJR 2007 Stock Award and Incentive Plan for the past three fiscal years: | ||||||||||||
Shares | Weighted Average | Total Fair Value of Vested Shares (in Thousands) | ||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Non-vested and outstanding at September 30, 2011 | 77,097 | $39.90 | — | |||||||||
Granted | 1,929 | $47.17 | — | |||||||||
Vested | (19,680 | ) | $39.10 | $ | 879 | |||||||
Cancelled/forfeited | — | — | — | |||||||||
Non-vested and outstanding at September 30, 2012 | 59,346 | $40.40 | — | |||||||||
Granted | 2,139 | $40.62 | — | |||||||||
Vested (1) | (19,680 | ) | $39.10 | $ | 888 | |||||||
Cancelled/forfeited | (2,550 | ) | $40.74 | — | ||||||||
Non-vested and outstanding at September 30, 2013 | 39,255 | $41.05 | — | |||||||||
Granted | 16,678 | $45.56 | — | |||||||||
Vested (1) | (34,230 | ) | $40.74 | $ | 1,534 | |||||||
Cancelled/forfeited | (958 | ) | $40.74 | — | ||||||||
Non-vested and outstanding at September 30, 2014 | 20,745 | $45.20 | — | |||||||||
Deferred Retention Stock | ||||||||||||
Deferred retention stock awards vest immediately when granted, with shares delivered at a future date in accordance with the terms of the underlying agreements. The expense for these awards is recognized in the fiscal year in which services are rendered and the related shares are granted upon approval by the Board of Directors, which generally occurs subsequent to the fiscal year end. | ||||||||||||
The following table summarizes the deferred retention stock award under the NJR 2007 Stock Award and Incentive Plan for the past three fiscal years: | ||||||||||||
Shares | Weighted Average | Total Fair Value of Vested Shares (in Thousands) | ||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Outstanding at September 30, 2011 | 106,730 | $35.37 | — | |||||||||
Granted/Vested | 49,171 | $47.17 | — | |||||||||
Delivered | (103,903 | ) | $35.37 | $ | 4,787 | |||||||
Forfeited | (2,827 | ) | 35.37 | — | ||||||||
Outstanding at September 30, 2012 | 49,171 | $47.17 | — | |||||||||
Granted/Vested | 67,295 | $40.62 | — | |||||||||
Delivered | — | — | — | |||||||||
Forfeited | (4,673 | ) | $43.44 | — | ||||||||
Outstanding at September 30, 2013 | 111,793 | $43.38 | — | |||||||||
Granted/Vested | 28,985 | $45.75 | — | |||||||||
Delivered | — | — | — | |||||||||
Forfeited | (2,387 | ) | $42.94 | — | ||||||||
Outstanding at September 30, 2014 | 138,391 | $43.89 | — | |||||||||
Non-Employee Director Stock | ||||||||||||
Non-employee director compensation includes an annual retainer that is awarded in stock. In January 2014, the company issued 15,848 shares for the annual retainer with a weighted average fair value of $44.80 per share. The shares vested immediately and are amortized to expense over a 12 month period. As of September 30, 2014, there is $177,000 of expense remaining to be recognized through December 31, 2014. In January 2013 and January 2012, the company issued 16,262 and 10,800 shares for the annual retainer with weighted average fair values of $39.97 and $48.18, respectively. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | ||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | |||||||||||||||||||||||||
Pension and Other Postemployment Benefit Plans | |||||||||||||||||||||||||
The Company has two trusteed, noncontributory defined benefit retirement plans covering eligible regular represented and nonrepresented employees with more than one year of service. Defined benefit plan benefits are based on years of service and average compensation during the highest sixty 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 also maintains an unfunded nonqualified PEP that was established to provide employees with the full level of benefits as stated in the qualified plan without reductions due to various limitations imposed by the provisions of federal income tax laws and regulations. There were no plan assets in the nonqualified plan due to the nature of the plan. | |||||||||||||||||||||||||
During the fourth quarter of fiscal 2014, the Company implemented a voluntary early retirement program to certain employees and recognized an expense of approximately $5 million, including pension and postemployment benefit costs of $3.5 million related to special termination benefits, and $1.5 million related to other severance benefits. | |||||||||||||||||||||||||
The Company's funding policy for its pension plans is to contribute at least the minimum amount required by the Employee Retirement Income Security Act of 1974, as amended. In fiscal 2014 and 2013, the Company had no minimum funding requirements. The Company made no discretionary contributions to the pension plans in fiscal 2014, and contributed $20 million in fiscal 2013. The Company elected to make this discretionary tax-deductible contribution to improve the funded status of the pension plans. The Company does not expect to be required to make additional contributions to fund the pension plans over the next three fiscal years based on current actuarial assumptions; however, funding requirements are uncertain and can depend significantly on changes in actuarial assumptions, returns on plan assets and changes in the demographics of eligible employees and covered dependents. In addition, as in the past, the Company may elect to make contributions in excess of the minimum required amount to the plans. | |||||||||||||||||||||||||
There are no Federal requirements to pre-fund OPEB benefits. However, the Company is required to fund certain amounts due to regulatory agreements with the BPU. The Company contributed $5 million and $6 million, respectively, in fiscal 2014 and 2013 and estimates that it will contribute between $4 million to $6 million over the next five years. Additional contributions may be required based on market conditions and changes to assumptions. | |||||||||||||||||||||||||
The following summarizes the changes in the funded status of the plans and the related liabilities recognized on the Consolidated Balance Sheets as of September 30: | |||||||||||||||||||||||||
Pension (1) | OPEB | ||||||||||||||||||||||||
(Thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 198,826 | $ | 211,136 | $ | 112,771 | $ | 121,027 | |||||||||||||||||
Service cost | 6,143 | 6,871 | 3,923 | 4,686 | |||||||||||||||||||||
Interest cost | 10,066 | 8,942 | 5,734 | 5,148 | |||||||||||||||||||||
Plan participants' contributions | 47 | 49 | 38 | 32 | |||||||||||||||||||||
Special termination benefits | 2,814 | — | 648 | — | |||||||||||||||||||||
Actuarial loss (gain) | 21,440 | (22,288 | ) | 6,792 | (15,645 | ) | |||||||||||||||||||
Benefits paid, net of retiree subsidies received | (11,637 | ) | (5,884 | ) | (2,133 | ) | (2,477 | ) | |||||||||||||||||
Benefit obligation at end of year | $ | 227,699 | $ | 198,826 | $ | 127,773 | $ | 112,771 | |||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 200,236 | $ | 166,664 | $ | 49,555 | $ | 41,090 | |||||||||||||||||
Actual return on plan assets | 22,923 | 19,323 | 4,590 | 5,120 | |||||||||||||||||||||
Employer contributions | 85 | 20,083 | 4,970 | 5,977 | |||||||||||||||||||||
Benefits paid, net of plan participants' contributions | (11,591 | ) | (5,834 | ) | (2,206 | ) | (2,632 | ) | |||||||||||||||||
Fair value of plan assets at end of year | $ | 211,653 | $ | 200,236 | $ | 56,909 | $ | 49,555 | |||||||||||||||||
Funded status | $ | (16,046 | ) | $ | 1,410 | $ | (70,864 | ) | $ | (63,216 | ) | ||||||||||||||
Amounts recognized on Consolidated Balance Sheets | |||||||||||||||||||||||||
Postemployment employee benefit (liability) asset | |||||||||||||||||||||||||
Current | $ | (100 | ) | $ | (96 | ) | $ | (136 | ) | $ | (100 | ) | |||||||||||||
Noncurrent | (15,946 | ) | 1,506 | (70,728 | ) | (63,116 | ) | ||||||||||||||||||
Total | $ | (16,046 | ) | $ | 1,410 | $ | (70,864 | ) | $ | (63,216 | ) | ||||||||||||||
-1 | Includes the Company's PEP. | ||||||||||||||||||||||||
The Company recognizes a liability for its underfunded benefit plans as required by the Compensation - Retirement Benefits Topic of the ASC. The Company records the offset to regulatory assets for the portion of liability relating to its regulated utility and to accumulated other comprehensive income for the portion of the liability related to its non-regulated operations. | |||||||||||||||||||||||||
The following table summarizes the amounts recognized in regulatory assets and accumulated other comprehensive income as of September 30: | |||||||||||||||||||||||||
Regulatory Assets | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
Pension | OPEB | Pension | OPEB | ||||||||||||||||||||||
Balance at September 30, 2012 | $ | 80,449 | $ | 58,799 | (1) | $ | 25,183 | $ | 1,511 | ||||||||||||||||
Amounts arising during the period: | |||||||||||||||||||||||||
Net actuarial (gain) | (17,961 | ) | (13,523 | ) | (8,826 | ) | (3,589 | ) | |||||||||||||||||
Amounts amortized to net periodic costs: | |||||||||||||||||||||||||
Net actuarial (loss) | (5,719 | ) | (3,743 | ) | (1,927 | ) | (114 | ) | |||||||||||||||||
Prior service (cost) credit | (105 | ) | 301 | (3 | ) | 54 | |||||||||||||||||||
Net transition obligation | — | (22 | ) | — | (4 | ) | |||||||||||||||||||
Balance at September 30, 2013 | $ | 56,664 | $ | 41,812 | $ | 14,427 | $ | (2,142 | ) | ||||||||||||||||
Amounts arising during the period: | |||||||||||||||||||||||||
Net actuarial loss | 10,563 | 4,277 | 6,243 | 2,098 | |||||||||||||||||||||
Amounts amortized to net periodic costs: | |||||||||||||||||||||||||
Net actuarial (loss) gain | (5,326 | ) | (2,607 | ) | (3,085 | ) | 107 | ||||||||||||||||||
Prior service (cost) credit | (107 | ) | 303 | (4 | ) | 54 | |||||||||||||||||||
Net transition obligation | — | (11 | ) | — | — | ||||||||||||||||||||
Balance at September 30, 2014 | $ | 61,794 | $ | 43,774 | $ | 17,581 | $ | 117 | |||||||||||||||||
-1 | Balance represents amounts recognized in accordance with ASC 715 and excludes $308,000 associated with a regulatory asset approved by the BPU for fiscal 2012. | ||||||||||||||||||||||||
The amounts in regulatory assets and accumulated other comprehensive income not yet recognized as components of net periodic benefit cost as of September 30 are: | |||||||||||||||||||||||||
Regulatory Assets | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
Pension | OPEB | Pension | OPEB | ||||||||||||||||||||||
(Thousands) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Net actuarial loss (gain) | $ | 60,797 | $ | 55,559 | $ | 45,809 | $ | 44,140 | $ | 17,570 | $ | 14,412 | $ | 425 | $ | (1,782 | ) | ||||||||
Prior service cost (credit) | 997 | 1,105 | (2,035 | ) | (2,339 | ) | 11 | 15 | (308 | ) | (360 | ) | |||||||||||||
Net transition obligation | — | — | — | 11 | — | — | — | — | |||||||||||||||||
Total | $ | 61,794 | $ | 56,664 | $ | 43,774 | $ | 41,812 | $ | 17,581 | $ | 14,427 | $ | 117 | $ | (2,142 | ) | ||||||||
Amounts included in regulatory assets and accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost in fiscal 2015 are as follows: | |||||||||||||||||||||||||
Regulatory Assets | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
(Thousands) | Pension | OPEB | Pension | OPEB | |||||||||||||||||||||
Net actuarial loss | $ | 5,305 | $ | 2,911 | $ | 1,680 | $ | 32 | |||||||||||||||||
Prior service cost (credit) | 108 | (311 | ) | 3 | (54 | ) | |||||||||||||||||||
Total | $ | 5,413 | $ | 2,600 | $ | 1,683 | $ | (22 | ) | ||||||||||||||||
The accumulated benefit obligation for the pension plans, including the PEP, exceeded the fair value of plan assets. The projected benefit and accumulated benefit obligations and the fair value of plan assets as of September 30, are as follows: | |||||||||||||||||||||||||
Pension | |||||||||||||||||||||||||
(Thousands) | 2014 | 2013 | |||||||||||||||||||||||
Projected benefit obligation | $ | 227,699 | $ | 198,826 | |||||||||||||||||||||
Accumulated benefit obligation | $ | 198,058 | $ | 176,172 | |||||||||||||||||||||
Fair value of plan assets | $ | 211,653 | $ | 200,236 | |||||||||||||||||||||
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) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 6,143 | $ | 6,871 | $ | 5,375 | $ | 3,923 | $ | 4,686 | $ | 3,584 | |||||||||||||
Interest cost | 10,066 | 8,942 | 8,825 | 5,734 | 5,148 | 5,133 | |||||||||||||||||||
Expected return on plan assets | (15,475 | ) | (14,825 | ) | (12,685 | ) | (4,174 | ) | (3,653 | ) | (2,746 | ) | |||||||||||||
Recognized actuarial loss | 5,596 | 7,646 | 5,015 | 2,500 | 3,857 | 2,894 | |||||||||||||||||||
Prior service cost (credit) amortization | 111 | 108 | 46 | (357 | ) | (355 | ) | 25 | |||||||||||||||||
Recognized net initial obligation | — | — | — | 11 | 26 | 356 | |||||||||||||||||||
Net periodic benefit cost | $ | 6,441 | $ | 8,742 | $ | 6,576 | $ | 7,637 | $ | 9,709 | $ | 9,246 | |||||||||||||
Special termination benefit | 2,814 | — | — | 648 | — | — | |||||||||||||||||||
Net periodic benefit cost recognized as expense | $ | 9,255 | $ | 8,742 | $ | 6,576 | $ | 8,285 | $ | 9,709 | $ | 9,246 | |||||||||||||
The weighted average assumptions used to determine benefit costs during the fiscal year and obligations as of September 30, are as follows: | |||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Benefit costs: | |||||||||||||||||||||||||
Discount rate | 5.15 | % | 4.3 | % | 5.25 | % | 5.15 | % | 4.3 | % | 5.25 | % | |||||||||||||
Expected asset return | 8.25 | % | 8.5 | % | 8.25 | % | 8.25 | % | 8.5 | % | 8.25 | % | |||||||||||||
Compensation increase | 3.25 | % | 3.25 | % | 3.25 | % | 3.5 | % | 3.25 | % | 3.25 | % | |||||||||||||
Obligations: | |||||||||||||||||||||||||
Discount rate | 4.55 | % | 5.15 | % | 4.3 | % | 4.55 | % | 5.15 | % | 4.3 | % | |||||||||||||
Compensation increase | 3.25/3.50% | (1) | 3.25 | % | 3.25 | % | 3.5 | % | 3.25 | % | 3.25 | % | |||||||||||||
-1 | Percentages for represented and nonrepresented plans, respectively. | ||||||||||||||||||||||||
In selecting an assumed discount rate, the Company uses a modeling process that involves selecting a portfolio of high-quality corporate debt issuances (AA- or better) whose cash flows (via coupons or maturities) match the timing and amount of the Company's expected future benefit payments. The Company considers the results of this modeling process, as well as overall rates of return on high-quality corporate bonds and changes in such rates over time, to determine its assumed discount rate. | |||||||||||||||||||||||||
Information relating to the assumed HCCTR used to determine expected OPEB benefits as of September 30, and the effect of a one percent change in the rate, are as follows: | |||||||||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
HCCTR | 7.1 | % | 7.3 | % | 7.5 | % | |||||||||||||||||||
Ultimate HCCTR | 4.8 | % | 4.8 | % | 4.8 | % | |||||||||||||||||||
Year ultimate HCCTR reached | 2022 | 2022 | 2022 | ||||||||||||||||||||||
Effect of a 1 percentage point increase in the HCCTR on: | |||||||||||||||||||||||||
Year-end benefit obligation | $ | 20,965 | $ | 18,008 | $ | 21,278 | |||||||||||||||||||
Total service and interest cost | $ | 1,885 | $ | 2,156 | $ | 1,868 | |||||||||||||||||||
Effect of a 1 percentage point decrease in the HCCTR on: | |||||||||||||||||||||||||
Year-end benefit obligation | $ | (16,932 | ) | $ | (14,629 | ) | $ | (17,034 | ) | ||||||||||||||||
Total service and interest costs | $ | (1,493 | ) | $ | (1,675 | ) | $ | (1,457 | ) | ||||||||||||||||
The Company's investment objective is a long-term real rate of return on assets before permissible expenses that is approximately 6 percent greater than the assumed rate of inflation as measured by the consumer price index. The expected long-term rate of return is based on the asset categories in which the Company invests and the current expectations and historical performance for these categories. | |||||||||||||||||||||||||
The mix and targeted allocation of the pension and OPEB plans' assets are as follows: | |||||||||||||||||||||||||
2015 | Assets at | ||||||||||||||||||||||||
Target | September 30, | ||||||||||||||||||||||||
Asset Allocation | Allocation | 2014 | 2013 | ||||||||||||||||||||||
U.S. equity securities | 40 | % | 39 | % | 42 | % | |||||||||||||||||||
International equity securities | 20 | 20 | 22 | ||||||||||||||||||||||
Fixed income | 40 | 41 | 36 | ||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years: | |||||||||||||||||||||||||
(Thousands) | Pension | OPEB | |||||||||||||||||||||||
2015 | $ | 7,176 | $ | 3,509 | |||||||||||||||||||||
2016 | $ | 8,102 | $ | 4,292 | |||||||||||||||||||||
2017 | $ | 8,513 | $ | 4,735 | |||||||||||||||||||||
2018 | $ | 9,309 | $ | 5,197 | |||||||||||||||||||||
2019 | $ | 10,017 | $ | 5,705 | |||||||||||||||||||||
2020 - 2024 | $ | 62,977 | $ | 37,063 | |||||||||||||||||||||
The Company 's OPEB plans provide prescription drug benefits that are actuarially equivalent to those provided by Medicare Part D. Therefore, under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, the Company qualifies for federal subsidies. | |||||||||||||||||||||||||
The estimated subsidy payments are: | |||||||||||||||||||||||||
Estimated Subsidy Payment | |||||||||||||||||||||||||
Fiscal Year | (Thousands) | ||||||||||||||||||||||||
2015 | $201 | ||||||||||||||||||||||||
2016 | $225 | ||||||||||||||||||||||||
2017 | $249 | ||||||||||||||||||||||||
2018 | $274 | ||||||||||||||||||||||||
2019 | $300 | ||||||||||||||||||||||||
2020 - 2024 | $2,030 | ||||||||||||||||||||||||
Pension and OPEB assets held in the master trust, measured at fair value, as of September 30, are summarized as follows: | |||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | |||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
(Thousands) | Pension | OPEB | |||||||||||||||||||||||
Assets | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Money market funds | $ | 50 | $ | 3 | $ | 1,154 | $ | 1,150 | |||||||||||||||||
Registered Investment Companies- | |||||||||||||||||||||||||
Equity Funds | |||||||||||||||||||||||||
Large Cap Index | 70,358 | 69,707 | 19,092 | 16,419 | |||||||||||||||||||||
Extended Market Index | 12,475 | 14,736 | 3,733 | 3,444 | |||||||||||||||||||||
International Stock | 41,833 | 42,792 | 10,309 | 10,033 | |||||||||||||||||||||
Fixed Income Funds | |||||||||||||||||||||||||
Emerging Markets | 10,029 | 8,754 | 2,798 | 2,163 | |||||||||||||||||||||
Core Fixed Income | — | — | 6,522 | 11,684 | |||||||||||||||||||||
Opportunistic Income | — | — | 3,960 | — | |||||||||||||||||||||
Ultra Short Duration | — | — | 3,761 | — | |||||||||||||||||||||
High Yield Bond Fund | 21,054 | 19,850 | 5,580 | 4,662 | |||||||||||||||||||||
Long Duration Fund | 55,854 | 44,394 | — | — | |||||||||||||||||||||
Total assets at fair value | $ | 211,653 | $ | 200,236 | $ | 56,909 | $ | 49,555 | |||||||||||||||||
The Plan had no Level 2 or Level 3 fair value measurements during the two fiscal years and there have been no changes in valuation methodologies as of September 30, 2014. The following is a description of the valuation methodologies used for assets measured at fair value: | |||||||||||||||||||||||||
Money Market funds — Represents bank balances and money market funds that are valued based on the net asset value of shares held at year end. | |||||||||||||||||||||||||
Registered Investment Companies — Equity and fixed income funds valued at the net asset value of shares held by the plan at year end as reported on the active market on which the individual securities are traded. | |||||||||||||||||||||||||
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. | |||||||||||||||||||||||||
Defined Contribution Plan | |||||||||||||||||||||||||
The Company offers a Savings Plan to eligible employees. As of January 1, 2014, the Company matches 60 percent of participants' contributions up to 6 percent of base compensation. Represented NJRHS employees, non-represented employees hired on or after October 1, 2009, and NJNG represented employees hired on or after January 1, 2012, are eligible for an employer special contribution of between 3 and 4 percent of base compensation, depending on years of service, into the Savings Plan on their behalf. The amount expensed and contributed for the matching provision of the Savings Plan was $2.2 million in fiscal 2014, $1.9 million in fiscal 2013 and $1.7 million in fiscal 2012. The amount contributed for the employer special contribution of the Savings Plan was $374,000 in fiscal 2014, $193,000 in fiscal 2013 and $143,000 in fiscal 2012. |
ASSET_RETIREMENT_OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | |||||||
ASSET RETIREMENT OBLIGATIONS | ' | |||||||
ASSET RETIREMENT OBLIGATIONS | ||||||||
NJR recognizes AROs related to the costs associated with cutting and capping its main and service gas distribution pipelines of NJNG, which is required by New Jersey law when taking such gas distribution pipeline out of service. | ||||||||
The following is an analysis of the change in the ARO liability for the fiscal year ended September 30: | ||||||||
(Thousands) | 2014 | 2013 | ||||||
Balance at October 1 | $ | 28,711 | $ | 27,983 | ||||
Accretion | 2,012 | 1,892 | ||||||
Additions | 925 | 533 | ||||||
Retirements | (1,153 | ) | (1,697 | ) | ||||
Balance at period end | $ | 30,495 | $ | 28,711 | ||||
Accretion amounts are not reflected as an expense on NJR's Consolidated Statements of Operations, but rather are deferred as a regulatory asset and netted against NJNG's regulatory liabilities, for presentation purposes, on the Consolidated Balance Sheets. | ||||||||
Accretion for the next five years is estimated to be as follows: | ||||||||
(Thousands) | ||||||||
Fiscal Year Ended September 30, | Estimated Accretion | |||||||
2015 | $ | 2,075 | ||||||
2016 | 2,139 | |||||||
2017 | 2,194 | |||||||
2018 | 2,248 | |||||||
2019 | 2,303 | |||||||
Total | $ | 10,959 | ||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||
INCOME TAXES | ' | |||||||||
INCOME TAXES | ||||||||||
A reconciliation of the U.S. federal statutory rate of 35 percent to the effective rate from operations for the fiscal years ended September 30, 2014, 2013 and 2012 is as follows: | ||||||||||
(Thousands) | 2014 | 2013 | 2012 | |||||||
Statutory income tax expense | $ | 67,834 | $ | 52,661 | $ | 35,213 | ||||
Change resulting from | ||||||||||
State income taxes | 7,785 | 5,168 | 5,434 | |||||||
Depreciation and cost of removal | (4,437 | ) | (5,769 | ) | (3,999 | ) | ||||
Investment tax credits | (23,083 | ) | (18,749 | ) | (34,397 | ) | ||||
Basis adjustment of solar assets due to ITC | 3,959 | 3,225 | 5,974 | |||||||
Other | (218 | ) | (961 | ) | (496 | ) | ||||
Income tax provision | $ | 51,840 | $ | 35,575 | $ | 7,729 | ||||
Effective income tax rate | 26.8 | % | 23.6 | % | 7.7 | % | ||||
The income tax provision (benefit) from operations consists of the following: | ||||||||||
(Thousands) | 2014 | 2013 | 2012 | |||||||
Current | ||||||||||
Federal | $ | 37,904 | $ | 12,248 | $ | 14,983 | ||||
State | 11,096 | 1,763 | 4,025 | |||||||
Deferred | ||||||||||
Federal | 24,963 | 34,127 | 18,757 | |||||||
State | 960 | 6,186 | 4,361 | |||||||
Investment tax credits | (23,083 | ) | (18,749 | ) | (34,397 | ) | ||||
Income tax provision | $ | 51,840 | $ | 35,575 | $ | 7,729 | ||||
The temporary differences, which give rise to deferred tax assets and (liabilities), consist of the following: | ||||||||||
(Thousands) | 2014 | 2013 | ||||||||
Deferred tax assets | ||||||||||
Investment tax credits | $ | 10,341 | (1) | $ | 43,033 | |||||
Deferred service contract revenue | 3,299 | 3,231 | ||||||||
Incentive compensation | 14,632 | 6,798 | ||||||||
Fair value of derivatives | 14,350 | — | ||||||||
State net operating losses | 8,962 | 6,118 | ||||||||
Conservation incentive plan | 2,312 | — | ||||||||
Other | 10,078 | 5,718 | ||||||||
Total deferred tax assets | $ | 63,974 | $ | 64,898 | ||||||
Deferred tax liabilities | ||||||||||
Property related items | $ | (371,017 | ) | $ | (329,921 | ) | ||||
Remediation costs | (12,429 | ) | (18,881 | ) | ||||||
Equity investments | (35,474 | ) | (33,368 | ) | ||||||
Post employment benefits | (10,268 | ) | (17,455 | ) | ||||||
Fair value of derivatives | — | (6,258 | ) | |||||||
Conservation incentive plan | — | (7,611 | ) | |||||||
Under-recovered gas costs | (5,056 | ) | (383 | ) | ||||||
Other | (11,751 | ) | (13,699 | ) | ||||||
Total deferred tax liabilities | $ | (445,995 | ) | $ | (427,576 | ) | ||||
Total net deferred tax liabilities | $ | (382,021 | ) | $ | (362,678 | ) | ||||
(1) Includes $2.8 million for NJNG, which is being amortized over the life of the related assets and $7.5 million for NJRCEV, which is ITC carryforward. | ||||||||||
The Company and one or more of its subsidiaries files or expects to file income and/or franchise tax returns in the U.S. Federal jurisdiction and in the states of New Jersey, New York, Connecticut, Texas, Delaware, Pennsylvania, Oklahoma, North Carolina and Louisiana and the City of New York. The Company neither files in, nor believes it has a filing requirement in, any foreign jurisdictions. | ||||||||||
The Company's federal income tax returns through fiscal 2010 have either been reviewed by the IRS, or the related statute of limitations has expired and all matters have been settled. The IRS is currently examining tax returns for fiscal 2011 through fiscal 2013. | ||||||||||
The State of New Jersey has completed its sales and use tax examinations through March 31, 2010, and its corporate business tax examinations through September 30, 2008. All periods subsequent to those ended September 30, 2009, are statutorily open to examination in all applicable states with the exception of New York. In New York, all periods subsequent to September 30, 2011, are statutorily open to examination. | ||||||||||
In May 2013, the State of New Jersey completed their audit of NJRES for the periods ended September 30, 2008, 2009 and 2010. The audit resulted in a refund of $1.1 million that was related primarily to state apportionment differences. | ||||||||||
NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with unrecognized tax benefits. As of September 30, 2014 and 2013, based on its analysis, the Company determined there was no need to recognize any liabilities associated with uncertain tax positions. | ||||||||||
As of September 30, 2014, the Company has state income tax net operating losses of approximately $153.2 million, which generally have a life of 20 years. The company has recorded a deferred state tax asset of approximately $9 million on the Consolidated Balance Sheets, reflecting the tax benefit associated with the loss carryforwards. In addition, as of September 30, 2014 and 2013, the Company has recorded a valuation allowance of $212,000 and $262,000, respectively, because it believes that it is more likely than not that the deferred tax assets related to CR&R and NJR will expire unused. | ||||||||||
The deferred tax assets will expire as follows: | ||||||||||
(Thousands) | ||||||||||
Fiscal years 2015 - 2018 | $ | 78 | ||||||||
Fiscal years 2019 - 2023 | — | |||||||||
Fiscal Years 2024 - 2028 | — | |||||||||
Fiscal Years 2029 - 2034 | 8,946 | |||||||||
Total | $ | 9,024 | ||||||||
In addition, as of September 30, 2014, the Company has an ITC carryforward of approximately $7.5 million, which has a life of 20 years. This carryforward will begin to expire in fiscal 2034. | ||||||||||
In September 2013, the U.S. Department of the Treasury and the IRS released final regulations that provide guidance on applying Section 263(a) of the Internal Revenue Code to amounts paid to acquire, produce, or improve tangible property, as well as rules for materials and supplies. Implementation of these final regulations in September 2013 had no material impact on NJR's and its subsidiaries' results of operations, financial condition or cash flow. |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES | ' | ||||||||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES | |||||||||||||||||||
Cash Commitments | |||||||||||||||||||
NJNG has entered into long-term contracts, expiring at various dates through October 2032, for the supply, storage and transportation of natural gas. These contracts include current annual fixed charges of approximately $78.3 million at current contract rates and volumes, which are recoverable through BGSS. | |||||||||||||||||||
For the purpose of securing storage and pipeline capacity, NJRES enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by NJRES to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one to 10 years. Demand charges are established by interstate storage and pipeline operators and regulated by the FERC. These demand charges represent commitments to pay storage providers or pipeline companies for the right to store and/or transport natural gas utilizing their respective assets. | |||||||||||||||||||
Commitments as of September 30, 2014, for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: | |||||||||||||||||||
(Thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||
NJRES: | |||||||||||||||||||
Natural gas purchases | $ | 298,563 | $ | 18,402 | $ | — | $ | — | $ | — | $ | — | |||||||
Storage demand fees | 27,883 | 10,471 | 5,612 | 3,500 | 1,782 | 2,598 | |||||||||||||
Pipeline demand fees | 76,524 | 41,759 | 21,828 | 14,499 | 6,638 | 6,861 | |||||||||||||
Sub-total NJRES | $ | 402,970 | $ | 70,632 | $ | 27,440 | $ | 17,999 | $ | 8,420 | $ | 9,459 | |||||||
NJNG: | |||||||||||||||||||
Natural gas purchases | $ | 100,218 | $ | 5,328 | $ | 34 | $ | — | $ | — | $ | — | |||||||
Storage demand fees | 24,045 | 17,865 | 10,883 | 9,299 | 9,299 | 4,649 | |||||||||||||
Pipeline demand fees | 54,293 | 44,372 | 41,001 | 85,558 | 87,367 | 860,211 | |||||||||||||
Sub-total NJNG | $ | 178,556 | $ | 67,565 | $ | 51,918 | $ | 94,857 | $ | 96,666 | $ | 864,860 | |||||||
Total (1) | $ | 581,526 | $ | 138,197 | $ | 79,358 | $ | 112,856 | $ | 105,086 | $ | 874,319 | |||||||
-1 | Does not include amounts related to intercompany asset management agreements between NJRES and NJNG. | ||||||||||||||||||
As of September 30, 2014, the Company's future minimum lease payments under various operating leases will not be more than $2 million annually for the next five years and $22.8 million in the aggregate for all years thereafter. | |||||||||||||||||||
Guarantees | |||||||||||||||||||
As of September 30, 2014, there were NJR guarantees covering approximately $323.6 million of natural gas purchases and NJRES demand fee commitments not yet reflected in accounts payable on the Consolidated Balance Sheets. | |||||||||||||||||||
The Company previously entered into agreements to lease vehicles, generally over a five-year term, that qualified as operating leases. These agreements contain provisions that could require the Company to make additional cash payments at the end of the term for a portion of the residual value of the vehicles. As of September 30, 2014, the present value of the liability recognized on the Consolidated Balance Sheets is $700,000. In the event performance under the guarantee is required, the Company's maximum future payment would be $922,000. | |||||||||||||||||||
Legal Proceedings | |||||||||||||||||||
Manufactured Gas Plant Remediation | |||||||||||||||||||
NJNG is responsible for the remedial cleanup of five MGP sites, dating back to gas operations in the late 1800s and early 1900s that contain contaminated residues from former gas manufacturing operations. NJNG is currently involved in administrative proceedings with the NJDEP, as well as participating in various studies and investigations by outside consultants, to determine the nature and extent of any such contaminated residues and to develop appropriate programs of remedial action, where warranted, under Administrative Consent Orders or Memoranda of Agreement with the NJDEP. | |||||||||||||||||||
NJNG may recover its remediation expenditures, including carrying costs, over rolling seven-year periods pursuant to a RA approved by the BPU. In February 2012, NJNG filed its 2011 SBC filing, requesting approval of its MGP expenditures incurred through June 30, 2011, which would continue its existing overall SBC rate and recovery at approximately $20 million. In July 2013, NJNG requested approval of its MGP expenditures incurred through June 2013 as well as a reduction in the RA factor to $18.7 million annually. The petition was provisionally approved by the BPU on November 22, 2013, with rates effective December 1, 2013, and was approved on a final basis in July 2014. In September 2014, NJNG requested approval of its MGP expenditures incurred through June 2014 to recover $8.5 million annually related to the SBC RA factor. As of September 30, 2014, $30.9 million of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Consolidated Balance Sheets. | |||||||||||||||||||
NJNG periodically, and at least annually, performs an environmental review of the MGP sites, including a review of potential liability for investigation and remedial action. NJNG estimated at the time of the most recent review that total future expenditures to remediate and monitor the five MGP sites for which it is responsible, including potential liabilities for Natural Resource Damages that might be brought by the NJDEP for alleged injury to groundwater or other natural resources concerning these sites, will range from approximately $151.3 million to $249.8 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, 2014, NJNG recorded an MGP remediation liability and a corresponding regulatory asset of $177 million on the Consolidated Balance Sheets, based on the most likely amount. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and any insurance recoveries. | |||||||||||||||||||
NJNG will continue to seek recovery of MGP-related costs through the RA. However, because recovery of such costs is subject to BPU approval, there can be no assurance as to the ultimate recovery through the RA or the impact on the Company's results of operations, financial position or cash flows, which could be material. If any future regulatory position indicates that the recovery of such costs is not probable, the related non-recoverable costs would be charged to income in the period of such determination. | |||||||||||||||||||
General | |||||||||||||||||||
The Company is party to various other claims, legal actions and complaints arising in the ordinary course of business. In the Company's opinion, the ultimate disposition of these matters will not have a material effect on its financial condition, results of operations or cash flows. |
BUSINESS_SEGMENT_AND_OTHER_OPE
BUSINESS SEGMENT AND OTHER OPERATIONS DATA | 12 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Segment Reporting [Abstract] | ' | |||||||||
BUSINESS SEGMENT AND OTHER OPERATIONS DATA | ' | |||||||||
BUSINESS SEGMENT AND OTHER OPERATIONS DATA | ||||||||||
NJR organizes its businesses based on its products and services as well as regulatory environment. As a result, the Company manages the businesses through the following reportable segments and other operations: the Natural Gas Distribution segment consists of regulated energy and off-system, capacity and storage management operations; the Energy Services segment consists of unregulated wholesale energy operations; the Clean Energy Ventures segment consists of capital investments in distributed power projects; the Midstream segment consists of NJR's investments in natural gas transportation and storage facilities; the Home Services and Other operations consist of heating, cooling and water appliance sales, installations and services, commercial real estate development, other investments and general corporate activities. Information related to the Company's various business segments and other operations is detailed below: | ||||||||||
(Thousands) | ||||||||||
Fiscal Years Ended September 30, | 2014 | 2013 | 2012 | |||||||
Operating revenues | ||||||||||
Natural Gas Distribution | ||||||||||
External customers | $ | 819,415 | $ | 787,987 | $ | 627,713 | ||||
Energy Services | ||||||||||
External customers (1) | 2,858,703 | 2,351,084 | 1,577,851 | |||||||
Intercompany | 72,114 | 5,494 | 2,760 | |||||||
Clean Energy Ventures | ||||||||||
External customers | 14,575 | 11,988 | 2,257 | |||||||
Subtotal | 3,764,807 | 3,156,553 | 2,210,581 | |||||||
Home Services and Other | ||||||||||
External customers | 45,452 | 47,009 | 41,102 | |||||||
Intercompany | 1,235 | 945 | 1,093 | |||||||
Eliminations | (73,349 | ) | (6,439 | ) | (3,853 | ) | ||||
Total | $ | 3,738,145 | $ | 3,198,068 | $ | 2,248,923 | ||||
Depreciation and amortization | ||||||||||
Natural Gas Distribution | $ | 40,540 | $ | 37,999 | $ | 35,247 | ||||
Energy Services | 59 | 44 | 59 | |||||||
Clean Energy Ventures | 11,295 | 8,477 | 5,680 | |||||||
Midstream | 6 | 6 | 6 | |||||||
Subtotal | 51,900 | 46,526 | 40,992 | |||||||
Home Services and Other | 846 | 786 | 661 | |||||||
Eliminations | (4 | ) | (2 | ) | (10 | ) | ||||
Total | $ | 52,742 | $ | 47,310 | $ | 41,643 | ||||
Interest income (2) | ||||||||||
Natural Gas Distribution | $ | 999 | $ | 653 | $ | 889 | ||||
Energy Services | 222 | 1 | 37 | |||||||
Midstream | 950 | 1,065 | 1,098 | |||||||
Subtotal | 2,171 | 1,719 | 2,024 | |||||||
Home Services and Other | 1 | 2 | 3 | |||||||
Eliminations | (950 | ) | (884 | ) | (1,001 | ) | ||||
Total | $ | 1,222 | $ | 837 | $ | 1,026 | ||||
-1 | Includes sales to Canada, which accounted for 3.3, 5.9 and 6.6 percent of total operating revenues during fiscal 2014, 2013 and 2012, respectively. | |||||||||
-2 | Included in other income on the Consolidated Statement of Operations. | |||||||||
(Thousands) | ||||||||||
Fiscal Years Ended September 30, | 2014 | 2013 | 2012 | |||||||
Interest expense, net of capitalized interest | ||||||||||
Natural Gas Distribution | $ | 16,683 | $ | 14,995 | $ | 14,890 | ||||
Energy Services | 1,725 | 2,534 | 1,096 | |||||||
Clean Energy Ventures | 5,300 | 3,387 | 854 | |||||||
Midstream | 1,396 | 1,962 | 2,665 | |||||||
Subtotal | 25,104 | 22,878 | 19,505 | |||||||
Home Services and Other | 359 | 1,101 | 1,339 | |||||||
Total | $ | 25,463 | $ | 23,979 | $ | 20,844 | ||||
Income tax provision (benefit) | ||||||||||
Natural Gas Distribution | $ | 39,374 | $ | 35,399 | $ | 38,135 | ||||
Energy Services | 26,458 | 10,516 | (4,950 | ) | ||||||
Clean Energy Ventures | (21,937 | ) | (17,711 | ) | (32,507 | ) | ||||
Midstream | 5,227 | 4,993 | 4,978 | |||||||
Subtotal | 49,122 | 33,197 | 5,656 | |||||||
Home Services and Other | 2,460 | 2,550 | 2,178 | |||||||
Eliminations | 258 | (172 | ) | (105 | ) | |||||
Total | $ | 51,840 | $ | 35,575 | $ | 7,729 | ||||
Equity in earnings of affiliates | ||||||||||
Midstream | $ | 14,078 | $ | 13,868 | $ | 14,308 | ||||
Eliminations | (3,546 | ) | (3,519 | ) | (3,674 | ) | ||||
Total | $ | 10,532 | $ | 10,349 | $ | 10,634 | ||||
Net financial earnings | ||||||||||
Natural Gas Distribution | $ | 74,204 | $ | 73,846 | $ | 73,238 | ||||
Energy Services | 79,735 | 19,311 | 10,791 | |||||||
Clean Energy Ventures | 12,654 | 10,060 | 19,452 | |||||||
Midstream | 7,498 | 7,199 | 6,749 | |||||||
Subtotal | 174,091 | 110,416 | 110,230 | |||||||
Home Services and Other | 2,798 | 3,292 | 2,366 | |||||||
Eliminations | (32 | ) | (27 | ) | (179 | ) | ||||
Total | $ | 176,857 | $ | 113,681 | $ | 112,417 | ||||
Capital expenditures | ||||||||||
Natural Gas Distribution | $ | 152,566 | $ | 137,083 | $ | 116,455 | ||||
Clean Energy Ventures | 135,543 | 59,125 | 89,726 | |||||||
Subtotal | 288,109 | 196,208 | 206,181 | |||||||
Home Services and Other | 1,179 | 1,042 | 1,334 | |||||||
Total | $ | 289,288 | $ | 197,250 | $ | 207,515 | ||||
Investments in equity investees | ||||||||||
Clean Energy Ventures | $ | — | $ | — | $ | 8,800 | ||||
Midstream | 555 | — | — | |||||||
Total | $ | 555 | $ | — | $ | 8,800 | ||||
The Chief Executive Officer, who uses NFE as a measure of profit or loss in measuring the results of the Company's segments and operations, is the chief operating decision maker of the Company. A reconciliation of consolidated NFE to consolidated net income is as follows: | ||||||||||
(Thousands) | 2014 | 2013 | 2012 | |||||||
Consolidated net financial earnings | $ | 176,857 | $ | 113,681 | $ | 112,417 | ||||
Less: | ||||||||||
Unrealized loss (gain) on derivative instruments and related transactions | 28,534 | (9,418 | ) | 35,790 | ||||||
Effects of economic hedging related to natural gas inventory | 26,639 | 7,635 | (4,891 | ) | ||||||
Tax adjustments | (20,286 | ) | 655 | (11,361 | ) | |||||
Consolidated net income | $ | 141,970 | $ | 114,809 | $ | 92,879 | ||||
The Company uses derivative instruments as economic hedges of purchases and sales of physical gas inventory. For GAAP purposes, these derivatives are recorded at fair value and related changes in fair value are included in reported earnings. Revenues and cost of gas related to physical gas flow is recognized when the gas is delivered to customers. Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical gas flows. Timing differences occur in two ways: | ||||||||||
• | Unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical gas inventory flows; and | |||||||||
• | Unrealized gains and losses of prior periods are reclassified as realized gains and losses when derivatives are settled in the same period as physical gas inventory movements occur. | |||||||||
NFE is a measure of the earnings based on eliminating these timing differences, to effectively match the earnings effects of the economic hedges with the physical sale of gas. Consequently, to reconcile between GAAP and NFE, current period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Additionally, realized derivative gains and losses are also included in current period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical gas flows. | ||||||||||
The Company's assets for the various business segments and business operations are detailed below: | ||||||||||
(Thousands) | 2014 | 2013 | 2012 | |||||||
Assets at end of period | ||||||||||
Natural Gas Distribution | $ | 2,143,684 | $ | 2,094,940 | $ | 2,005,520 | ||||
Energy Services | 457,080 | 468,096 | 347,406 | |||||||
Clean Energy Ventures | 380,707 | 253,663 | 223,247 | |||||||
Midstream | 153,891 | 153,536 | 157,779 | |||||||
Subtotal | 3,135,362 | 2,970,235 | 2,733,952 | |||||||
Home Services and Other | 82,413 | 85,293 | 73,298 | |||||||
Intercompany assets (1) | (58,971 | ) | (50,745 | ) | (37,245 | ) | ||||
Total | $ | 3,158,804 | $ | 3,004,783 | $ | 2,770,005 | ||||
-1 | Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | |
NJRES may periodically enter into storage or park and loan agreements with its affiliated FERC-regulated natural gas storage facility, Steckman Ridge, or transportation agreements with its affiliated FERC-regulated interstate pipeline, Iroquois. As of September 30, 2014, NJRES has entered into storage and park and loan transactions with Steckman Ridge for varying terms, all of which expire by October 31, 2020. Additionally, NJRES has transportation capacity with Iroquois that expires by March 31, 2019. Demand fees, net of eliminations, associated with both Steckman Ridge and Iroquois were $6.2 million, $6.1 million and $6.6 million during the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014, NJRES had demand fees payable of $187,000 and $389,000 to Steckman Ridge and Iroquois, respectively, which are included in gas purchases payable. As of September 30, 2013, fees payable to Steckman Ridge and Iroquois were $159,000 and $390,000 respectively. | |
In January 2010, NJNG entered into a 10-year agreement effective April 1, 2010, for 3 Bcf of firm storage capacity with Steckman Ridge. Under the terms of the agreement, NJNG incurs demand fees, at market rates, of approximately $9.3 million annually, a portion of which is eliminated in consolidation. These fees are recoverable through NJNG's BGSS mechanism and are included in regulatory assets. Additionally, NJNG has transportation capacity with Iroquois that expires by January 31, 2019. Demand fees, net of eliminations, associated with both Steckman Ridge and Iroquois were $6.4 million, $5.9 million and $5.6 million during the fiscal years ended September 30, 2014, 2013and 2012, respectively. NJNG had demand fees payable to Steckman Ridge in the amount of $775,000 as of September 30, 2014 and $775,000 as of September 30, 2013. NJNG had fees payable to Iroquois of $48,000 and $61,000 as of September 30, 2014 and September 30, 2013, respectively. | |
NJNG and NJRES have entered into various asset management agreements. Under the terms of these agreements, NJNG releases certain transportation and storage contracts to NJRES for the entire term of the agreements. NJNG also sold natural gas in storage at cost to NJRES. In return, NJNG has the option to purchase index priced gas and storage inventory gas from NJRES at NJNG's citygate and other delivery locations to maintain operational reliability. As of September 30, 2014, NJNG and NJRES had four asset management agreements with expiration dates ranging from October 2014 through March 2016. | |
In the fourth quarter of fiscal 2014, NJNG entered into a precedent agreement for transportation capacity of 180,000 dths per day with PennEast with an estimated service date of November 1, 2017. |
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | ||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||
A summary of financial data for each quarter of fiscal 2014 and 2013 follows. Due to the seasonal nature of the Company's businesses, quarterly amounts vary significantly during the fiscal year. In the opinion of management, the information furnished reflects all adjustments necessary for a fair presentation of the results of the interim periods. | |||||||||||||
First | Second | Third | Fourth | ||||||||||
(Thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | |||||||||
2014 | |||||||||||||
Operating revenues | $ | 878,405 | $ | 1,579,569 | $ | 688,257 | $ | 591,914 | |||||
Gross margin (1) | $ | 64,432 | $ | 315,849 | $ | 28,474 | $ | 47,375 | |||||
Operating income (loss) | $ | 12,224 | $ | 247,012 | $ | (29,208 | ) | $ | (28,838 | ) | |||
Net income (loss) | $ | 7,693 | $ | 172,971 | $ | (14,274 | ) | $ | (24,420 | ) | |||
Earnings (loss) per share | |||||||||||||
Basic | $0.18 | $4.11 | ($0.34) | ($0.58) | |||||||||
Diluted | $0.18 | $4.07 | ($0.34) | ($0.58) | |||||||||
2013 | |||||||||||||
Operating revenues | $ | 736,019 | $ | 960,885 | $ | 767,469 | $ | 733,695 | |||||
Gross margin (1) | $ | 135,189 | $ | 108,137 | $ | 100,641 | $ | 23,088 | |||||
Operating income (loss) | $ | 87,191 | $ | 56,969 | $ | 47,000 | $ | (31,929 | ) | ||||
Net income (loss) | $ | 60,206 | $ | 45,469 | $ | 29,155 | $ | (20,021 | ) | ||||
Earnings (loss) per share | |||||||||||||
Basic | $1.44 | $1.09 | $0.70 | ($0.48) | |||||||||
Diluted | $1.44 | $1.08 | $0.70 | ($0.48) | |||||||||
-1 | Gross margin consists of operating revenue less cost of goods sold and other direct expenses at NJR's unregulated subsidiaries and utility gross margin at NJNG, which includes natural gas revenues less natural gas purchases, sales tax, a TEFA and regulatory rider expenses. | ||||||||||||
The sum of quarterly amounts may not equal the annual amounts due to rounding. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||
YEARS ENDED SEPTEMBER 30, 2014, 2013 and 2012 | |||||||||||
(Thousands) | ADDITIONS | ||||||||||
CLASSIFICATION | BEGINNING | CHARGED TO | OTHER (1) | ENDING BALANCE | |||||||
BALANCE | EXPENSE | ||||||||||
2014 | |||||||||||
Allowance for doubtful accounts | $ | 5,330 | 2,504 | (2,477 | ) | $ | 5,357 | ||||
2013 | |||||||||||
Regulatory asset | $ | 71 | (71 | ) | — | $ | — | ||||
Allowance for doubtful accounts | $ | 4,797 | 2,627 | (2,094 | ) | $ | 5,330 | ||||
2012 | |||||||||||
Regulatory asset | $ | 141 | (70 | ) | — | $ | 71 | ||||
Allowance for doubtful accounts | $ | 4,612 | 3,932 | (3,747 | ) | $ | 4,797 | ||||
-1 | Uncollectible accounts written off, less recoveries and adjustments. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Principles of Consolidation | ' | |||||||||||||||
Principles of Consolidation | ||||||||||||||||
The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. | ||||||||||||||||
Other financial investments or contractual interests that lack the characteristics of a voting interest entity, which are commonly referred to as variable interest entities, are evaluated by NJR to determine if it has the power to direct business activities and, therefore, would be considered a controlling interest that NJR would have to consolidate. Based on those evaluations, NJR has determined that it does not have any investments in variable interest entities as of September 30, 2014, 2013 and 2012. | ||||||||||||||||
Investments in entities over which the Company does not have a controlling financial interest are either accounted for under the equity method or cost method of accounting. | ||||||||||||||||
Regulatory Assets and Liabilities | ' | |||||||||||||||
Regulatory Assets & Liabilities | ||||||||||||||||
Under cost-based regulation, regulated utility enterprises generally are permitted to recover their operating expenses and earn a reasonable rate of return on their utility investment. | ||||||||||||||||
NJNG maintains its accounts in accordance with the FERC Uniform System of Accounts as prescribed by the BPU and in accordance with the Regulated Operations Topic of the FASB ASC. As a result of the impact of the ratemaking process and regulatory actions of the BPU, NJNG is required to recognize the economic effects of rate regulation. Accordingly, NJNG capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 3. Regulation, for a more detailed description of NJNG's regulatory assets and liabilities. | ||||||||||||||||
Derivative Instruments | ' | |||||||||||||||
Derivative Instruments | ||||||||||||||||
NJR accounts for its financial instruments, such as futures, options, foreign exchange contracts and swaps, as well as its physical commodity contracts related to the purchase and sale of natural gas at NJRES, as derivatives, and therefore recognizes them at fair value on the Consolidated Balance Sheets. NJR's unregulated subsidiaries record changes in the fair value of their financial commodity derivatives and physical forward contracts in gas purchases or operating revenues, as appropriate, on the Consolidated Statements of Operations. NJRES designates its foreign exchange contracts as cash flow hedges of Canadian dollar dominated gas purchases. Changes in the fair value of the effective portion of these hedges are recorded to OCI, a component of stockholders' equity, and reclassified to gas purchases on the Consolidated Statements of Operations when they settle. Ineffective portions of the cash flow hedges are recognized immediately in earnings. NJR did not have derivatives designated as fair value hedges during fiscal 2013 and 2014. | ||||||||||||||||
The Derivatives and Hedging Topic of the ASC also provides for a normal scope exception for qualifying physical commodity contracts that are intended for purchases and sales during the normal course of business and for which physical delivery is probable. NJR applies this normal scope exception to physical commodity contracts at NJNG and forward contracts at NJRCEV, and therefore does not record changes in the fair value of these contracts until the contract settles and the related underlying natural gas or SREC is delivered. NJNG's derivatives used to economically hedge its natural gas purchasing activities are recoverable through its BGSS, a component of its tariff. Accordingly, the offset to the change in fair value of these derivatives is recorded as a regulatory asset or liability on the Consolidated Balance Sheets. | ||||||||||||||||
See Note 4. Derivative Instruments for additional details regarding natural gas trading and hedging activities. | ||||||||||||||||
Fair values of exchange-traded instruments, including futures, swaps, foreign exchange contracts and certain options, are based on actively quoted market prices. Fair values are subject to change in the near term and reflect management's best estimate based on various factors. In establishing the fair value of commodity contracts that do not have quoted prices, such as physical contracts, over-the-counter options and swaps and certain embedded derivatives, management uses available market data and pricing models to estimate fair values. Estimating fair values of instruments that do not have quoted market prices requires management's judgment in determining amounts that could reasonably be expected to be received from, or paid to, a third party in settlement of the instruments. These amounts could be materially different from amounts that might be realized in an actual sale transaction. | ||||||||||||||||
The Company is subject to commodity price risk due to fluctuations in the market price of natural gas, SRECs, and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs, and electricity. In addition, the Company may utilize foreign currency derivatives as cash flow hedges of Canadian dollar denominated gas purchases. These contracts, with a few exceptions as described below, are accounted for as derivatives. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Consolidated Balance Sheets. For a more detailed discussion of the Company's fair value measurement policies and level disclosures associated with the NJR's derivative instruments, see Note 5. Fair Value. | ||||||||||||||||
Since the Company chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS as appropriate, changes in the fair value of these derivative instruments are recorded as a component of gas purchases or operating revenues, as appropriate for NJRES, on the Consolidated Statements of Operations as unrealized gains or (losses). For NJRES at settlement, realized gains and (losses) on all financial derivative instruments are recognized as a component of gas purchases and realized gains and (losses) on all physical derivatives follow the presentation of the related unrealized gains and (losses) as a component of either gas purchases or operating revenues. | ||||||||||||||||
NJRES also enters into natural gas transactions in Canada and, consequently, is exposed to fluctuations in the value of Canadian currency relative to the US dollar. NJRES utilizes foreign currency derivatives to lock in the currency translation rate associated with natural gas transactions denominated in Canadian currency. The derivatives may include currency forwards, futures, or swaps and are accounted for as derivatives. These derivatives are being used to hedge future forecasted cash payments associated with transportation and storage contracts along with purchases of natural gas. The Company has designated these foreign currency derivatives as cash flow hedges of that exposure, and expects the hedge relationship to be highly effective throughout the term. Since NJRES designates its foreign exchange contracts as cash flow hedges, changes in fair value of the effective portion of the hedge are recorded in OCI. When the foreign exchange contracts are settled and the related purchases are recognized in income, realized gains and (losses) are recognized in gas purchases on the Consolidated Statements of Operations. | ||||||||||||||||
As a result of NJRES entering into transactions to borrow gas, commonly referred to as “park and loans,” an embedded derivative is created related to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Consolidated Balance Sheets, with changes in value recognized in current period earnings. | ||||||||||||||||
Changes in fair value of NJNG's financial derivative instruments are recorded as a component of regulatory assets or liabilities on the Consolidated Balance Sheets. NJNG has received regulatory approval to defer and to recover these amounts through future BGSS rates as an increase or decrease to the cost of natural gas in NJNG's tariff for gas service. | ||||||||||||||||
The Company elects NPNS accounting treatment on all physical commodity contracts at NJNG. These contracts are accounted for on an accrual basis. Accordingly, physical purchases are recognized in regulatory assets or liabilities on the Consolidated Balance Sheets when the contract settles and the natural gas is delivered and amortized in current period earnings based on the current BPU BGSS factor. | ||||||||||||||||
Revenues | ' | |||||||||||||||
Revenues | ||||||||||||||||
Revenues from the sale of natural gas to customers of NJNG are recognized in the period that gas is delivered and consumed by customers, including an estimate for unbilled revenue. | ||||||||||||||||
NJNG records unbilled revenue for natural gas services. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and NJNG recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for gas and the most current tariff rates. | ||||||||||||||||
Revenues for NJRES are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur, as noted above. | ||||||||||||||||
Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. | ||||||||||||||||
Gas Purchases | ' | |||||||||||||||
Gas Purchases | ||||||||||||||||
NJNG's tariff includes a component for BGSS, which is designed to allow NJNG to recover the cost of natural gas through rates charged to its customers and is typically revised on an annual basis. As part of computing its BGSS rate, NJNG projects its cost of natural gas, net of supplier refunds, the impact of hedging activities and credits from non-firm sales and transportation activities. NJNG subsequently recovers or credits the difference, if any, of actual costs compared with those included in current rates. Any underrecoveries or overrecoveries are either credited to customers or deferred and, subject to BPU approval, reflected in the BGSS rates in subsequent years. | ||||||||||||||||
NJRES' gas purchases represent the total commodity contract cost, recognized upon completion of the transaction, as well as realized gains and losses of settled derivative instruments, both for physical purchase contracts and all financial contracts and unrealized gains and losses on the change in fair value of financial derivative instruments that have not yet settled. | ||||||||||||||||
Income Taxes | ' | |||||||||||||||
Income Taxes | ||||||||||||||||
The Company computes income taxes using the asset and liability method, whereby deferred income taxes are generally determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. See Note 12. Income Taxes. | ||||||||||||||||
In addition, NJR evaluates its tax positions to determine the appropriate accounting and recognition of future obligations associated with unrecognized tax benefits. | ||||||||||||||||
The Company invests in property that qualifies for federal ITCs and utilizes the ITCs, as allowed, based on the cost and life of the assets. ITCs at NJNG are deferred and amortized as a reduction to the tax provision over the average lives of the related equipment in accordance with regulatory treatment. ITCs at NJR's unregulated subsidiaries are recognized as a reduction to income tax expense when the property is placed in service. | ||||||||||||||||
Capitalized and Deferred Interest | ' | |||||||||||||||
Capitalized and Deferred Interest | ||||||||||||||||
NJNG's base rates include the ability for NJNG to recover the cost of debt associated with AFUDC and CWIP. For most of NJNG's construction projects, an incremental cost of equity is also recoverable during periods when NJNG's short-term debt balances are lower than its CWIP. For more information on AFUDC treatment with respect to certain accelerated infrastructure projects, see Note 3 Regulation - Infrastructure programs. | ||||||||||||||||
Capitalized amounts associated with the debt and equity components of NJNG's AFUDC, are recorded in utility plant on the Consolidated Balance Sheets. | ||||||||||||||||
Sales Tax Accounting | ' | |||||||||||||||
Sales Tax Accounting | ||||||||||||||||
Sales tax and TEFA are collected from customers and presented in both operating revenues and operating expenses on the Consolidated Statements of Operations for the fiscal years ended September 30, as follows: | ||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||
Sales tax | $ | 47.4 | $ | 44.4 | $ | 32.3 | ||||||||||
TEFA (1) | 1.4 | 5 | 6 | |||||||||||||
Total | $ | 48.8 | $ | 49.4 | $ | 38.3 | ||||||||||
-1 | TEFA was phased out in January 2014. | |||||||||||||||
Cash and Cash Equivalents | ' | |||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||
Cash and cash equivalents consists of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash of $1 million and $1.1 million as of September 30, 2014 and 2013, respectively, related to escrow balances for utility plant projects, which is recorded in other current and noncurrent assets on the Consolidated Balance Sheets, respectively. | ||||||||||||||||
Property Plant and Equipment | ' | |||||||||||||||
Property Plant and Equipment | ||||||||||||||||
Regulated property, plant and equipment and solar and wind equipment are stated at original cost. Regulated property, plant and equipment costs include direct labor, materials and third-party construction contractor costs, AFUDC and certain indirect costs related to equipment and employees engaged in construction. Upon retirement, the cost of depreciable regulated property, plus removal costs less salvage, is charged to accumulated depreciation with no gain or loss recorded. | ||||||||||||||||
Depreciation is computed on a straight-line basis over the useful life of the assets for non-regulated assets for financial statement purposes and using rates based on the estimated average lives of the various classes of depreciable property for NJNG. | ||||||||||||||||
Disposal of Equipment and Impairment of Long-Lived Assets | ' | |||||||||||||||
Impairment of Long-Lived Assets | ||||||||||||||||
The Company reviews the carrying amount of an asset for possible impairment whenever events or changes in circumstances indicate that such amount may not be recoverable. | ||||||||||||||||
Available for Sale Securities | ' | |||||||||||||||
Available for Sale Securities | ||||||||||||||||
Included in other noncurrent assets on the Consolidated Balance Sheets are certain investments in equity securities of a publicly traded energy company that have a fair value of $10.7 million and $11.7 million as of September 30, 2014 and 2013, respectively. Total unrealized gains associated with these equity securities, which are included as a part of accumulated other comprehensive income, a component of common stock equity, were $8.1 million, $4.8 million after tax, and $9.1 million, $5.4 million after tax, for the fiscal years ended September 30, 2014 and 2013, respectively. Reclassifications made from unrealized gains to realized gains are determined based on average cost. There were no sales of securities during fiscal 2014. During fiscal 2013, NJR received proceeds of approximately $482,000 from the sale of available-for-sale securities and realized a pre-tax gain of $380,000, which is included in other income in the Consolidated Statements of Operations. Reclassifications of realized gains out of OCI into income are determined based on average cost. | ||||||||||||||||
Investments in Equity Investees | ' | |||||||||||||||
Investments in Equity Investees | ||||||||||||||||
The Company accounts for its investments in Steckman Ridge and Iroquois using the equity method of accounting, where its respective ownership interests are 50 percent or less and/or it has significant influence over operating and management decisions, but is not the primary beneficiary, as defined under ASC 810, Consolidation. The Company's share of earnings is recognized as equity in earnings of affiliates on the Consolidated Statements of Operations. | ||||||||||||||||
The Company accounts for its investment in PennEast using the equity method of accounting. NJR expects the pipeline to cost approximately $1 billion, which will be split among the six investors in accordance with ownership interests. NJR has a 20 percent equity interest and has the ability to exert significant influence, but not control. | ||||||||||||||||
The Company accounts for its investment in OwnEnergy using the cost method of accounting. NJRCEV is not the primary beneficiary of OwnEnergy, nor does it have significant influence over operating and management decisions. Therefore, NJRCEV records dividends, if and when received, as a component of other income on the Consolidated Statements of Operations. | ||||||||||||||||
During the fourth quarter of fiscal 2014, NJR determined that it was unlikely that it would be able to recover the value of its cost method investment in OwnEnergy and, therefore, recognized an impairment loss of $6.4 million, which is included in other income, net on the Consolidated Statements of Operations. See Note 6. Investment in Equity Investees for more information. | ||||||||||||||||
Loan Receivable | ' | |||||||||||||||
Loan Receivable | ||||||||||||||||
NJNG provides interest-free loans, with terms ranging from two to 10 years, to customers that elect to purchase and install certain energy efficient equipment in accordance with its BPU approved SAVEGREEN program. The loans are recognized at net present value on the Consolidated Balance Sheets. Refer to Note 5. Fair Value for a discussion of the Company's fair value measurement policies and level disclosures. The Company has recorded $3.9 million and $1.9 million in other current assets and $27.3 million and $14.3 million in other noncurrent assets as of September 30, 2014 and 2013, respectively, on the Consolidated Balance Sheets, related to the loans. | ||||||||||||||||
NJR's policy is to establish an allowance for doubtful accounts when loan balances are outstanding for more than 60 days. | ||||||||||||||||
Customer Accounts Receivable and Allowance for Doubtful Accounts | ||||||||||||||||
Receivables consist of natural gas sales and transportation services billed to residential, commercial, industrial and other customers, as well as equipment sales, installations, solar leases and power purchase agreements to commercial and residential customers. NJR evaluates it accounts receivables and, to the extent customer account balances are outstanding for more than 60 days, establishes an allowance for doubtful accounts. The allowance is based on a combination of factors including historical collection experience and trends, aging of receivables, general economic conditions in the company's distribution or sales territories, and customer specific information. NJR writes-off customers' accounts once it is determined they are uncollectible. | ||||||||||||||||
Asset Retirement Obligations | ' | |||||||||||||||
Asset Retirement Obligations | ||||||||||||||||
NJR recognizes a liability for its AROs based on the fair value of the liability when incurred, which is generally upon acquisition, construction, development and/or through the normal operation of the asset. Concurrently, NJR also capitalizes an asset retirement cost by increasing the carrying amount of the related asset by the same amount as the liability. In periods subsequent to the initial measurement, NJR is required to recognize changes in the liability resulting from the passage of time (accretion) or due to revisions to either timing or the amount of the originally estimated cash flows to settle the conditional ARO. | ||||||||||||||||
Pension and Postemployment Plans | ' | |||||||||||||||
Pension and Postemployment Plans | ||||||||||||||||
NJR has two noncontributory defined pension plans covering eligible employees, including officers. Benefits are based on each employee's years of service and compensation. NJR's funding policy is to contribute annually to these plans at least the minimum amount required under ERISA, as amended, and not more than can be deducted for federal income tax purposes. Plan assets consist of equity securities, fixed-income securities and short-term investments. NJR made no discretionary contributions to the pension plans in fiscal 2014, and contributed $20 million in aggregate to the plans in fiscal 2013 and 2012, respectively. | ||||||||||||||||
NJR also provides two primarily noncontributory medical and life insurance plans for eligible retirees and dependents. Medical benefits, which make up the largest component of the plans, are based upon an age and years-of-service vesting schedule and other plan provisions. Funding of these benefits is made primarily into Voluntary Employee Beneficiary Association trust funds. NJR contributed $5 million, $6 million and $5.8 million in aggregate to these plans in fiscal 2014, 2013 and 2012, respectively. | ||||||||||||||||
Foreign Currency Transactions | ' | |||||||||||||||
Foreign Currency Transactions | ||||||||||||||||
NJRES' market area includes Canadian delivery points and as a result incurs certain natural gas commodity costs and demand fees that are denominated in Canadian dollars. Gains or losses that occur as a result of these foreign currency transactions are reported as a component of gas purchases on the Consolidated Statements of Operations and were not material during the fiscal years ended September 30, 2014, 2013 and 2012. | ||||||||||||||||
Recent Updates to the Accounting Standards Codification | ' | |||||||||||||||
Recent Updates to the Accounting Standards Codification | ||||||||||||||||
Balance Sheet Offsetting | ||||||||||||||||
In December 2011, the FASB issued ASU No. 2011-11, an amendment to ASC 210, Balance Sheet, requiring additional disclosures about the nature of an entity's rights of setoff and related master netting arrangements. ASU 2013-01, issued in January 2013, further clarified that the amended guidance was applicable to certain financial and derivative instruments. The Company applied the provisions of the amended guidance retrospectively effective October 1, 2013. The guidance did not impact the Company's financial position, results of operations or cash flows, however, it required additional disclosures that are included in Note 4. Derivative Instruments. | ||||||||||||||||
Income Taxes | ||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, an amendment to ASC 740, Income Taxes, which clarifies financial statement presentation for unrecognized tax benefits. The ASU requires that an unrecognized tax benefit, or portion thereof, shall be presented in the balance sheet as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss or a tax credit carryforward. To the extent such a deferred tax asset is not available or the company does not intend to use it to settle any additional taxes that would result from the disallowance of a tax position, the related unrecognized tax benefit will be presented as a liability in the financial statements. The amended guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company currently does not have unrecognized tax benefits recorded on its balance sheet and does not expect any impact to its financial position upon adoption during its first quarter of fiscal 2015. | ||||||||||||||||
Discontinued Operations | ||||||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The new guidance changes the definition and reporting of discontinued operations to include only those disposals that represent a strategic shift and that have a major effect on an entity's operations and financial results. The new guidance, which also requires additional disclosures, becomes effective for annual periods beginning on or after December 15, 2014 and interim periods within those years. The company does not expect an impact to its financial position, results of operations and cash flows upon adoption. | ||||||||||||||||
Revenue | ||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, and added Topic 606, Revenue from Contracts with Customers, to the ASC. ASC 606 supersedes ASC 605, Revenue Recognition, as well as most industry-specific guidance, and prescribes a single, comprehensive revenue recognition model designed to improve financial reporting comparability across entities, industries, jurisdictions and capital markets. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Upon adoption, the guidance will be applied on a full or modified retrospective basis. The Company is currently evaluating the provisions of ASC 606 to understand the impact, if any, to its financial position, results of operations and cash flows upon adoption. | ||||||||||||||||
Stock Compensation | ||||||||||||||||
In June 2014, the FASB issued ASU No. 2014-12, an amendment to ASC 718, Compensation - Stock Compensation, which clarifies the accounting for performance awards when the terms of the award provide that a performance target could be achieved after the requisite service period. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The company does not expect any impact to its financial position, results of operations and cash flows upon adoption. | ||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||
The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects as of September 30: | ||||||||||||||||
(Thousands) | Unrealized gain on available for sale securities | Net unrealized gain on derivatives | Adjustment to postemployment benefit obligation | Total | ||||||||||||
Balance as of September 30, 2012 | $ | 4,921 | $ | 51 | $ | (15,743 | ) | $ | (10,771 | ) | ||||||
Other comprehensive income, net of tax | ||||||||||||||||
Other comprehensive income (loss), before reclassifications, net of tax of $(485), $16, $(5,124), $(5,593) | 703 | (28 | ) | 7,526 | 8,201 | |||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $155, $7, $(810), $(648) | (224 | ) | (1) | (11 | ) | (2) | 1,184 | (3) | 949 | |||||||
Net current-period other comprehensive income (loss), net of tax of $(330), $23, $(5,934), $(6,241) | 479 | (39 | ) | 8,710 | 9,150 | |||||||||||
Balance at September 30, 2013 | $ | 5,400 | $ | 12 | $ | (7,033 | ) | $ | (1,621 | ) | ||||||
Other comprehensive income, net of tax | ||||||||||||||||
Other comprehensive (loss), before reclassifications, net of tax of $426 $159, $3,334, $3,919 | (618 | ) | (273 | ) | (5,006 | ) | (5,897 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(98), $(1,172), $(1,270) | — | (1) | 168 | (2) | 1,756 | (3) | 1,924 | |||||||||
Net current-period other comprehensive income, net of tax of $426, $61, $2,162, $2,649 | (618 | ) | (105 | ) | (3,250 | ) | (3,973 | ) | ||||||||
Balance at September 30, 2014 | $ | 4,782 | $ | (93 | ) | $ | (10,283 | ) | $ | (5,594 | ) | |||||
-1 | Reclassified to other income in the Consolidated Statements of Operations. | |||||||||||||||
-2 | Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases in the Consolidated Statements of Operations. | |||||||||||||||
-3 | Included in the computation of net periodic pension cost, a component of O&M expense in the Consolidated Statements of Operations. | |||||||||||||||
Use of Estimates | ' | |||||||||||||||
Use of Estimates | ||||||||||||||||
The preparation of financial statements in conformity with GAAP requires NJR to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a monthly basis, NJR evaluates its estimates, including those related to the calculation of the fair value of derivative instruments, debt, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation. AROs are evaluated as often as needed. NJR's estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. | ||||||||||||||||
NJR has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, NJR will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is NJR's policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is NJR's policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates. | ||||||||||||||||
Fair Value Hierarchy | ' | |||||||||||||||
Fair Value Hierarchy | ||||||||||||||||
NJR applies fair value measurement guidance to its financial assets and liabilities, as appropriate, which include financial derivatives and physical commodity contracts qualifying as derivatives, available for sale securities and other financial assets and liabilities. In addition, authoritative accounting literature prescribes the use of a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on the source of the data used to develop the price inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and include the following: | ||||||||||||||||
Level 1 | Unadjusted quoted prices for identical assets or liabilities in active markets. NJR's Level 1 assets and liabilities include exchange traded futures and options contracts, listed equities and money market funds. Exchange traded futures and options contracts include all energy contracts traded on the NYMEX/CME and ICE that NJR refers internally to as basis swaps, fixed swaps, futures and financial options that are cleared through a FCM. | |||||||||||||||
Level 2 | Other significant observable inputs such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services. NJR's Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). 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 was considered to be a “model,” it would still be considered to be a Level 2 input as: | |||||||||||||||
1) The data is widely accepted and public | ||||||||||||||||
2) The data is non-proprietary and sourced from an independent third party | ||||||||||||||||
3) The data is observable and published | ||||||||||||||||
These additional adjustments are generally not considered to be significant to the ultimate recognized values. | ||||||||||||||||
Level 3 | Inputs derived from a significant amount of unobservable market data. These include NJR's best estimate of fair value and are derived primarily through the use of internal valuation methodologies. | |||||||||||||||
NJNG's and NJRES' financial derivatives portfolios consist mainly of futures, options and swaps. NJR primarily uses the market approach and its policy is to use actively quoted market prices when available. The principal market for its derivative transactions is the natural gas wholesale market, therefore, the primary source for its price inputs is CME/NYMEX. NJRES also uses ICE, Platts, and Natural Gas Exchange for Canadian delivery points. However, NJRES also engages in transactions that result in transporting natural gas to delivery points for which there is no actively quoted market price. In most instances, the transportation cost to the final delivery location is not significant to the overall valuation. If required, NJRES' policy is to use the best information available to determine fair value based on internal pricing models, which would include estimates extrapolated from broker quotes or other pricing services. | ||||||||||||||||
NJR also has available for sale securities and other financial assets that include listed equities, mutual funds and money market funds for which there are active exchange quotes available. | ||||||||||||||||
When NJR determines fair values, measurements are adjusted, as needed, for credit risk associated with its counterparties, as well as its own credit risk. NJR determines these adjustments by using historical default probabilities that correspond to the applicable S&P issuer ratings, while also taking into consideration collateral and netting arrangements that serve to mitigate risk. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Schedule of Utility Inventory | ' | |||||||||||||||
The following table summarizes gas in storage by company as of September 30: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
($ in thousands) | Gas in Storage | Bcf | Gas in Storage | Bcf | ||||||||||||
NJRES | $ | 191,250 | 56.5 | $ | 209,498 | 62.3 | ||||||||||
NJNG | $ | 86,266 | 21.3 | $ | 104,979 | 20.4 | ||||||||||
Total | $ | 277,516 | 77.8 | $ | 314,477 | 82.7 | ||||||||||
Schedule of Demand Fees | ' | |||||||||||||||
The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30: | ||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||
NJRES | $ | 122 | $ | 123 | $ | 129.8 | ||||||||||
NJNG | 92 | 92.1 | 86.7 | |||||||||||||
Total | $ | 214 | $ | 215.1 | $ | 216.5 | ||||||||||
Schedule of Public Utilities Allowance for Funds Used During Construction Rate | ' | |||||||||||||||
Corresponding amounts for the debt component is recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations and include the following for the fiscal years ended September 30: | ||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | |||||||||||||
AFUDC: | ||||||||||||||||
Debt | $ | 1,057 | $ | 921 | $ | 300 | ||||||||||
Equity | 1,562 | 2,037 | 638 | |||||||||||||
Total | $ | 2,619 | $ | 2,958 | $ | 938 | ||||||||||
Weighted average interest rate | 3.3 | % | 1.05 | % | 1.47 | % | ||||||||||
Schedule of Sales Tax And Assessment | ' | |||||||||||||||
Sales tax and TEFA are collected from customers and presented in both operating revenues and operating expenses on the Consolidated Statements of Operations for the fiscal years ended September 30, as follows: | ||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||
Sales tax | $ | 47.4 | $ | 44.4 | $ | 32.3 | ||||||||||
TEFA (1) | 1.4 | 5 | 6 | |||||||||||||
Total | $ | 48.8 | $ | 49.4 | $ | 38.3 | ||||||||||
-1 | TEFA was phased out in January 2014. | |||||||||||||||
Schedule of Property, Plant and Equipment | ' | |||||||||||||||
Property, plant and equipment was comprised of the following as of September 30: | ||||||||||||||||
(Thousands) | ||||||||||||||||
Property Classifications | Estimated Useful Lives | 2014 | 2013 | |||||||||||||
Distribution facilities | 38 to 74 years | $ | 1,567,648 | $ | 1,421,885 | |||||||||||
Transmission facilities | 35 to 56 years | 281,488 | 273,853 | |||||||||||||
Storage facilities | 34 to 47 years | 41,669 | 41,687 | |||||||||||||
Solar and wind property | 20 to 25 years | 376,065 | 232,409 | |||||||||||||
All other property | 5 to 35 years | 66,673 | 85,321 | |||||||||||||
Total property, plant and equipment | 2,333,543 | 2,055,155 | ||||||||||||||
Accumulated depreciation and amortization | (449,433 | ) | (412,039 | ) | ||||||||||||
Property, plant and equipment, net | $ | 1,884,110 | $ | 1,643,116 | ||||||||||||
Summary of Accounts Receivable by Subsidiary | ' | |||||||||||||||
The following table summarizes customer accounts receivable by company as of September 30: | ||||||||||||||||
(Thousands) | 2014 | 2013 | ||||||||||||||
NJRES | $ | 142,566 | 75 | % | $ | 194,263 | 81 | % | ||||||||
NJNG (1) | 41,281 | 22 | 43,045 | 18 | ||||||||||||
NJRCEV | 594 | — | 293 | — | ||||||||||||
NJRHS and other | 5,529 | 3 | 2,680 | 1 | ||||||||||||
Total | $ | 189,970 | 100 | % | $ | 240,281 | 100 | % | ||||||||
-1 | Does not include unbilled revenues of $7.2 million and $7.4 million as of September 30, 2014 and 2013, respectively. | |||||||||||||||
Schedule of Accumulated Other Comprehensive Income (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) | Unrealized gain on available for sale securities | Net unrealized gain on derivatives | Adjustment to postemployment benefit obligation | Total | ||||||||||||
Balance as of September 30, 2012 | $ | 4,921 | $ | 51 | $ | (15,743 | ) | $ | (10,771 | ) | ||||||
Other comprehensive income, net of tax | ||||||||||||||||
Other comprehensive income (loss), before reclassifications, net of tax of $(485), $16, $(5,124), $(5,593) | 703 | (28 | ) | 7,526 | 8,201 | |||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $155, $7, $(810), $(648) | (224 | ) | (1) | (11 | ) | (2) | 1,184 | (3) | 949 | |||||||
Net current-period other comprehensive income (loss), net of tax of $(330), $23, $(5,934), $(6,241) | 479 | (39 | ) | 8,710 | 9,150 | |||||||||||
Balance at September 30, 2013 | $ | 5,400 | $ | 12 | $ | (7,033 | ) | $ | (1,621 | ) | ||||||
Other comprehensive income, net of tax | ||||||||||||||||
Other comprehensive (loss), before reclassifications, net of tax of $426 $159, $3,334, $3,919 | (618 | ) | (273 | ) | (5,006 | ) | (5,897 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(98), $(1,172), $(1,270) | — | (1) | 168 | (2) | 1,756 | (3) | 1,924 | |||||||||
Net current-period other comprehensive income, net of tax of $426, $61, $2,162, $2,649 | (618 | ) | (105 | ) | (3,250 | ) | (3,973 | ) | ||||||||
Balance at September 30, 2014 | $ | 4,782 | $ | (93 | ) | $ | (10,283 | ) | $ | (5,594 | ) | |||||
-1 | Reclassified to other income in the Consolidated Statements of Operations. | |||||||||||||||
-2 | Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases in the Consolidated Statements of Operations. | |||||||||||||||
-3 | Included in the computation of net periodic pension cost, a component of O&M expense in the Consolidated Statements of Operations. |
REGULATION_Tables
REGULATION (Tables) | 12 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Regulated Operations [Abstract] | ' | ||||||
Schedule of Regulatory Assets and Liabilities | ' | ||||||
Regulatory assets and liabilities included on the Consolidated Balance Sheets as of September 30, are comprised of the following: | |||||||
(Thousands) | 2014 | 2013 | |||||
Regulatory assets-current | |||||||
Underrecovered gas costs | $ | 12,577 | $ | 953 | |||
Conservation Incentive Program | — | 18,887 | |||||
New Jersey Clean Energy Program | 14,285 | 14,532 | |||||
Total current regulatory assets | $ | 26,862 | $ | 34,372 | |||
Regulatory assets-noncurrent | |||||||
Environmental remediation costs | |||||||
Expended, net of recoveries | $ | 30,916 | $ | 46,968 | |||
Liability for future expenditures | 177,000 | 183,600 | |||||
Deferred income taxes | 9,968 | 10,718 | |||||
Derivatives at fair value, net | — | 19 | |||||
SAVEGREEN | 29,180 | 30,004 | |||||
Postemployment and other benefit costs | 108,507 | 101,415 | |||||
Deferred Superstorm Sandy costs | 15,207 | 14,822 | |||||
Other noncurrent regulatory assets | 6,797 | 14,656 | |||||
Total noncurrent regulatory assets | $ | 377,575 | $ | 402,202 | |||
Regulatory liability-current | |||||||
Conservation Incentive Program | $ | 5,752 | $ | — | |||
Derivatives at fair value, net | 320 | 1,456 | |||||
Total current regulatory liabilities | $ | 6,072 | $ | 1,456 | |||
Regulatory liabilities-noncurrent | |||||||
Cost of removal obligation | $ | 61,163 | $ | 79,315 | |||
Derivatives at fair value, net | 57 | — | |||||
Other noncurrent regulatory liabilities | 106 | 332 | |||||
Total noncurrent regulatory liabilities | $ | 61,326 | $ | 79,647 | |||
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | ||||||||||||||||||
The following table reflects the fair value of NJR's derivative assets and liabilities recognized on the Consolidated Balance Sheets as of September 30: | |||||||||||||||||||
Fair Value | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(Thousands) | Balance Sheet Location | Asset | Liability | Asset | Liability | ||||||||||||||
Derivatives | Derivatives | Derivatives | Derivatives | ||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
NJRES: | |||||||||||||||||||
Foreign currency contracts | Derivatives - current | $ | — | $ | 155 | $ | 16 | $ | 3 | ||||||||||
Derivatives - noncurrent | — | — | — | 2 | |||||||||||||||
Fair value of derivatives designated as hedging instruments | $ | — | $ | 155 | $ | 16 | $ | 5 | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
NJNG: | |||||||||||||||||||
Financial commodity contracts | Derivatives - current | $ | 2,525 | $ | 2,205 | $ | 3,502 | $ | 2,045 | ||||||||||
Derivatives - noncurrent | 82 | 25 | 121 | 140 | |||||||||||||||
NJRES: | |||||||||||||||||||
Physical forward commodity contracts | Derivatives - current | 15,391 | 30,778 | 11,282 | 14,573 | ||||||||||||||
Derivatives - noncurrent | 35 | 132 | 541 | 22 | |||||||||||||||
Financial commodity contracts | Derivatives - current | 46,307 | 46,725 | 38,527 | 23,769 | ||||||||||||||
Derivatives - noncurrent | 5,537 | 6,533 | 2,099 | 2,294 | |||||||||||||||
Fair value of derivatives not designated as hedging instruments | $ | 69,877 | $ | 86,398 | $ | 56,072 | $ | 42,843 | |||||||||||
Total fair value of derivatives | $ | 69,877 | $ | 86,553 | $ | 56,088 | $ | 42,848 | |||||||||||
Offsetting Assets and Liabilities | ' | ||||||||||||||||||
The tables below summarize the reported gross amounts, the amounts that NJR has the right to offset but elects not to, financial collateral, as well as the net amounts NJR could present in the Unaudited Condensed Consolidated Balance Sheets but elects not to. | |||||||||||||||||||
(Thousands) | Amounts Presented in Balance Sheets (1) | Offsetting Derivative Instruments (2) | Financial Collateral Received/Pledged (3) | Net Amounts (4) | |||||||||||||||
As of September 30, 2014: | |||||||||||||||||||
Derivative assets: | |||||||||||||||||||
NJRES | |||||||||||||||||||
Physical forward commodity contracts | $ | 15,426 | $ | (11,531 | ) | $ | — | $ | 3,895 | ||||||||||
Financial commodity contracts | 51,844 | (51,844 | ) | — | — | ||||||||||||||
Total NJRES | $ | 67,270 | $ | (63,375 | ) | $ | — | $ | 3,895 | ||||||||||
NJNG | |||||||||||||||||||
Financial commodity contracts | $ | 2,607 | $ | (2,230 | ) | $ | (377 | ) | $ | — | |||||||||
Derivative liabilities: | |||||||||||||||||||
NJRES | |||||||||||||||||||
Physical forward commodity contracts | $ | 30,910 | $ | (12,058 | ) | $ | (1,200 | ) | $ | 17,652 | |||||||||
Financial commodity contracts | 53,258 | (51,844 | ) | (1,414 | ) | — | |||||||||||||
Foreign currency contracts | 155 | — | — | 155 | |||||||||||||||
Total NJRES | $ | 84,323 | $ | (63,902 | ) | $ | (2,614 | ) | $ | 17,807 | |||||||||
NJNG | |||||||||||||||||||
Financial commodity contracts | $ | 2,230 | $ | (2,230 | ) | $ | — | $ | — | ||||||||||
As of September 30, 2013: | |||||||||||||||||||
Derivative assets: | |||||||||||||||||||
NJRES | |||||||||||||||||||
Physical forward commodity contracts | $ | 11,823 | $ | (3,549 | ) | $ | (100 | ) | $ | 8,174 | |||||||||
Financial commodity contracts | 40,626 | (26,063 | ) | 6,870 | 21,433 | ||||||||||||||
Foreign currency contracts | 16 | (5 | ) | — | 11 | ||||||||||||||
Total NJRES | $ | 52,465 | $ | (29,617 | ) | $ | 6,770 | $ | 29,618 | ||||||||||
NJNG | |||||||||||||||||||
Financial commodity contracts | $ | 3,623 | $ | (2,185 | ) | $ | 214 | $ | 1,652 | ||||||||||
Derivative liabilities: | |||||||||||||||||||
NJRES | |||||||||||||||||||
Physical forward commodity contracts | $ | 14,595 | $ | (3,549 | ) | $ | (500 | ) | $ | 10,546 | |||||||||
Financial commodity contracts | 26,063 | (26,063 | ) | — | — | ||||||||||||||
Foreign currency contracts | 5 | (5 | ) | — | — | ||||||||||||||
Total NJRES | $ | 40,663 | $ | (29,617 | ) | $ | (500 | ) | $ | 10,546 | |||||||||
NJNG | |||||||||||||||||||
Financial commodity contracts | $ | 2,185 | $ | (2,185 | ) | $ | — | $ | — | ||||||||||
-1 | Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. | ||||||||||||||||||
-2 | Offsetting derivative instruments include: transactions with NAESB netting election, transactions held by FCM's 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. | ||||||||||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | ' | ||||||||||||||||||
The following table reflects the effect of derivative instruments on the Consolidated Statements of Operations as of September 30: | |||||||||||||||||||
(Thousands) | Location of gain (loss) recognized in income on derivatives | Amount of gain (loss) recognized | |||||||||||||||||
in income on derivatives | |||||||||||||||||||
Derivatives not designated as hedging instruments: | 2014 | 2013 | 2012 | ||||||||||||||||
NJRES: | |||||||||||||||||||
Physical commodity contracts | Operating revenues | $ | (48,977 | ) | $ | 1,117 | $ | (7,187 | ) | ||||||||||
Physical commodity contracts | Gas purchases | (83,847 | ) | (17,194 | ) | 12,967 | |||||||||||||
Financial commodity contracts | Gas purchases | (118,872 | ) | 41,183 | 81,872 | ||||||||||||||
Total unrealized and realized (losses) gains | $ | (251,696 | ) | $ | 25,106 | $ | 87,652 | ||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | ||||||||||||||||||
The following table reflects the effect of derivative instruments designated as cash flow hedges on OCI as of September 30: | |||||||||||||||||||
(Thousands) | Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) (1) | Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) | Amount of Gain or (Loss) Recognized on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||||||||
Derivatives in cash flow hedging relationships: | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Foreign currency contracts | $ | (432 | ) | $ | (44 | ) | $ | 266 | $ | (18 | ) | $ | — | $ | — | ||||
-1 | The settlement of foreign currency transactions over the next 12 months is expected to result in the reclassification of $(155,000) from OCI into earnings. The maximum tenor is April 2015. | ||||||||||||||||||
Schedule of Derivative Instruments | ' | ||||||||||||||||||
NJNG and NJRES had the following outstanding long (short) derivatives as of September 30: | |||||||||||||||||||
Volume (Bcf) | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
NJNG | Futures | 17.3 | 22.6 | ||||||||||||||||
NJRES | Futures | (62.1 | ) | (64.2 | ) | ||||||||||||||
Financial Options | 1.2 | 1.5 | |||||||||||||||||
Physical | 28.6 | 7.3 | |||||||||||||||||
Schedule of Due to (from) Broker-Dealers and Clearing Organizations | ' | ||||||||||||||||||
The Company maintains separate broker margin accounts for NJNG and NJRES. The balances as of September 30, by company, are as follows: | |||||||||||||||||||
(Thousands) | Balance Sheet Location | 2014 | 2013 | ||||||||||||||||
NJNG | Broker margin - Current assets | $ | 1,057 | $ | 213 | ||||||||||||||
NJRES | Broker margin - Current assets | $ | 26,282 | $ | 6,368 | ||||||||||||||
Schedules of Concentration of Risk, by Risk Factor | ' | ||||||||||||||||||
The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services. | |||||||||||||||||||
(Thousands) | Gross Credit | ||||||||||||||||||
Exposure | |||||||||||||||||||
Investment grade | $ | 143,070 | |||||||||||||||||
Noninvestment grade | 6,462 | ||||||||||||||||||
Internally-rated investment grade | 9,334 | ||||||||||||||||||
Internally-rated noninvestment grade | 9,366 | ||||||||||||||||||
Total | $ | 168,232 | |||||||||||||||||
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
Fair Value, by Balance Sheet Grouping | ' | ||||||||||||||||||
As of September 30, the estimated fair value of long-term debt at NJNG and NJR, including current maturities and excluding capital leases, as applicable, is as follows: | |||||||||||||||||||
(Thousands) | 2014 | 2013 | |||||||||||||||||
NJNG | |||||||||||||||||||
Carrying value | $ | 432,845 | $ | 379,845 | |||||||||||||||
Fair market value | $ | 453,773 | $ | 397,175 | |||||||||||||||
NJR | |||||||||||||||||||
Carrying value | $ | 125,000 | $ | 150,000 | |||||||||||||||
Fair market value | $ | 133,136 | $ | 159,343 | |||||||||||||||
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized as follows: | |||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant | |||||||||||||||||
Unobservable | |||||||||||||||||||
Inputs | |||||||||||||||||||
(Thousands) | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||
As of September 30, 2014: | |||||||||||||||||||
Assets | |||||||||||||||||||
Physical forward commodity contracts | $ | — | $ | 15,426 | $ | — | $ | 15,426 | |||||||||||
Financial derivative contracts - natural gas | 54,451 | — | — | 54,451 | |||||||||||||||
Available for sale equity securities - energy industry (1) | 10,672 | — | — | 10,672 | |||||||||||||||
Other (2) | 1,299 | — | — | 1,299 | |||||||||||||||
Total assets at fair value | $ | 66,422 | $ | 15,426 | $ | — | $ | 81,848 | |||||||||||
Liabilities | |||||||||||||||||||
Physical forward commodity contracts | $ | — | $ | 30,910 | $ | — | $ | 30,910 | |||||||||||
Financial commodity contracts - natural gas | 55,488 | — | — | 55,488 | |||||||||||||||
Financial commodity contracts - foreign exchange | — | 155 | — | 155 | |||||||||||||||
Total liabilities at fair value | $ | 55,488 | $ | 31,065 | $ | — | $ | 86,553 | |||||||||||
As of September 30, 2013: | |||||||||||||||||||
Assets | |||||||||||||||||||
Physical forward commodity contracts | $ | — | $ | 11,823 | $ | — | $ | 11,823 | |||||||||||
Financial derivative contracts - natural gas | 44,249 | — | — | 44,249 | |||||||||||||||
Financial commodity contracts - foreign exchange | — | 16 | — | 16 | |||||||||||||||
Available for sale equity securities - energy industry (1) | 11,716 | — | — | 11,716 | |||||||||||||||
Other (2) | 1,129 | — | — | 1,129 | |||||||||||||||
Total assets at fair value | $ | 57,094 | $ | 11,839 | $ | — | $ | 68,933 | |||||||||||
Liabilities | |||||||||||||||||||
Physical forward commodity contracts | $ | — | $ | 14,595 | $ | — | $ | 14,595 | |||||||||||
Financial derivative contracts - natural gas | 28,248 | — | — | 28,248 | |||||||||||||||
Financial commodity contracts - foreign exchange | — | 5 | — | 5 | |||||||||||||||
Total liabilities at fair value | $ | 28,248 | $ | 14,600 | $ | — | $ | 42,848 | |||||||||||
-1 | Included in other noncurrent assets on the Consolidated Balance Sheets. | ||||||||||||||||||
-2 | Includes various money market funds in Level 1. |
INVESTMENTS_IN_EQUITY_INVESTEE1
INVESTMENTS IN EQUITY INVESTEES (Tables) | 12 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||
Equity Method Investments | ' | ||||||
As of September 30, NJR's equity method investments include the following: | |||||||
(Thousands) | 2014 | 2013 | |||||
Steckman Ridge (1) | $ | 128,413 | $ | 129,707 | |||
Iroquois | 24,042 | 23,084 | |||||
PennEast | 555 | — | |||||
Total | $ | 153,010 | $ | 152,791 | |||
(1)Includes loans with a total outstanding principal balance of $70.4 million for both fiscal 2014 and 2013, which accrue interest at a variable rate that resets quarterly and are due October 1, 2023. |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
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) | 2014 | 2013 | 2012 | |||||||
Net income, as reported | $ | 141,970 | $ | 114,809 | $ | 92,879 | ||||
Basic earnings per share | ||||||||||
Weighted average shares of common stock outstanding-basic | 42,099 | 41,658 | 41,527 | |||||||
Basic earnings per common share | $3.37 | $2.76 | $2.24 | |||||||
Diluted earnings per share | ||||||||||
Weighted average shares of common stock outstanding-basic | 42,099 | 41,658 | 41,527 | |||||||
Incremental shares (1) | 362 | 156 | 105 | |||||||
Weighted average shares of common stock outstanding-diluted | 42,461 | 41,814 | 41,632 | |||||||
Diluted earnings per common share (2) | $3.34 | $2.75 | $2.23 | |||||||
-1 | Incremental shares consist of stock options, stock awards and performance units. | |||||||||
-2 | There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2014, 2013 and 2012. |
DEBT_Tables
DEBT (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Long-term Debt Instruments | ' | ||||||||
The following table presents the long-term debt of the Company as of September 30: | |||||||||
(Thousands) | 2014 | 2013 | |||||||
NJNG | |||||||||
First mortgage bonds: | Maturity date: | ||||||||
5.00% | Series HH | 1-Dec-38 | $ | — | $ | 12,000 | |||
4.50% | Series II | 1-Aug-23 | 10,300 | 10,300 | |||||
4.60% | Series JJ | 1-Aug-24 | 10,500 | 10,500 | |||||
4.90% | Series KK | 1-Oct-40 | 15,000 | 15,000 | |||||
5.60% | Series LL | 15-May-18 | 125,000 | 125,000 | |||||
Variable | Series MM | 1-Sep-27 | 9,545 | 9,545 | |||||
Variable | Series NN | 1-Aug-35 | 41,000 | 41,000 | |||||
Variable | Series OO | 1-Aug-41 | 46,500 | 46,500 | |||||
3.15% | Series PP | 15-Apr-28 | 50,000 | 50,000 | |||||
4.77% | Unsecured senior notes | 15-Mar-14 | — | 60,000 | |||||
3.58% | Series QQ | 13-Mar-24 | 70,000 | — | |||||
4.61% | Series RR | 13-Mar-44 | 55,000 | — | |||||
Capital lease obligation-buildings | 1-Jun-21 | 18,726 | 20,381 | ||||||
Capital lease obligation-meters | Various dates | 31,143 | 31,261 | ||||||
Capital lease obligation-equipment | 1-Dec-13 | — | 42 | ||||||
Less: Current maturities of long-term debt | (9,505 | ) | (68,643 | ) | |||||
Total NJNG long-term debt | 473,209 | 362,886 | |||||||
NJR | |||||||||
6.05% | Unsecured senior notes | 24-Sep-17 | 50,000 | 50,000 | |||||
1.94% | Unsecured senior notes | 17-Sep-15 | 25,000 | 25,000 | |||||
2.51% | Unsecured senior notes | 17-Sep-18 | 25,000 | 25,000 | |||||
3.25% | Unsecured senior notes | 17-Sep-22 | 50,000 | 50,000 | |||||
Less: Current maturities of long-term debt | (25,000 | ) | — | ||||||
Total NJR long-term debt | 125,000 | 150,000 | |||||||
Total long-term debt | $ | 598,209 | $ | 512,886 | |||||
Schedule of Long-term Debt Redemption Requirements | ' | ||||||||
Annual long-term debt redemption requirements, excluding capital leases, as of September 30, are as follows: | |||||||||
(Millions) | NJNG | NJR | |||||||
2015 | $ | — | $ | 25 | |||||
2016 | $ | — | $ | — | |||||
2017 | $ | — | $ | 50 | |||||
2018 | $ | 125 | $ | 25 | |||||
2019 | $ | — | $ | — | |||||
Thereafter | $ | 307.8 | $ | 50 | |||||
Schedule of Sale Leaseback Transactions | ' | ||||||||
Contractual commitments for capital lease payments, as of the fiscal years ended September 30, are as follows: | |||||||||
(Millions) | Lease Payments | ||||||||
2015 | $ | 11.9 | |||||||
2016 | 12.1 | ||||||||
2017 | 11 | ||||||||
2018 | 9.1 | ||||||||
2019 | 6.3 | ||||||||
Thereafter | 7.6 | ||||||||
Subtotal | 58 | ||||||||
Less: interest component | (8.1 | ) | |||||||
Total | $ | 49.9 | |||||||
Schedule of Line of Credit Facilities | ' | ||||||||
A summary of NJR's and NJNG's short-term bank facilities as of September 30, are as follows: | |||||||||
(Thousands) | 2014 | 2013 | |||||||
NJR | |||||||||
Bank revolving credit facilities (1) | $ | 425,000 | $ | 325,000 | |||||
Notes outstanding at end of period | $ | 148,000 | $ | 97,000 | |||||
Weighted average interest rate at end of period | 1.08 | % | 1 | % | |||||
Amount available at end of period (2) | $ | 256,484 | $ | 210,110 | |||||
Bank term loan | $ | — | $ | 100,000 | |||||
Loan outstanding at end of period | $ | — | $ | 100,000 | |||||
Weighted average interest rate at end of period | — | % | 0.74 | % | |||||
Amount available at end of period | $ | — | $ | — | |||||
Bank letter of credit facility (3) (4) | $ | — | $ | 10,000 | |||||
NJNG | |||||||||
Bank credit facility dedicated to EDA Bonds (1) (4) | $ | — | $ | 100,000 | |||||
Bank revolving credit facilities (1) | $ | 250,000 | $ | 250,000 | |||||
Commercial paper outstanding at end of period | $ | 153,000 | $ | 168,600 | |||||
Weighted average interest rate at end of period | 0.12 | % | 0.13 | % | |||||
Amount available at end of period (5) | $ | 96,269 | $ | 81,400 | |||||
-1 | Committed credit facilities, which require commitment fees on the unused amounts. | ||||||||
-2 | Letters of credit outstanding total $20.5 million and $17.9 million as of September 30, 2014 and 2013, respectively, which reduces amount available by the same amount. | ||||||||
-3 | Uncommitted, expired on June 5, 2014. | ||||||||
-4 | There were no borrowings outstanding as of September 30, 2014 and 2013, respectively. | ||||||||
-5 | Letters of credit outstanding total $731,000 and $266,000 as of September 30, 2014 and 2013, respectively, which reduces amount available by the same amount. |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | ' | |||||||||||
The following table summarizes all stock-based compensation expense recognized during the following fiscal years: | ||||||||||||
(Thousands) | 2014 | 2013 | 2012 | |||||||||
Stock-based compensation expense: | ||||||||||||
Performance share awards | $ | 2,509 | $ | 1,049 | $ | 1,276 | ||||||
Restricted and non-restricted stock | 1,664 | 1,081 | 1,362 | |||||||||
Deferred retention stock | 13,643 | 1,326 | 2,733 | |||||||||
Compensation expense included in operation and maintenance expense | 17,816 | 3,456 | 5,371 | |||||||||
Income tax benefit | (7,278 | ) | (1,412 | ) | (2,194 | ) | ||||||
Total, net of tax | $ | 10,538 | $ | 2,044 | $ | 3,177 | ||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||||||||||
The following table summarizes the stock option activity for the past three fiscal years: | ||||||||||||
Shares | Weighted Average | |||||||||||
Exercise Price | ||||||||||||
Outstanding at September 30, 2011 | 109,763 | $27.84 | ||||||||||
Granted | — | — | ||||||||||
Exercised | (28,138 | ) | $25.30 | |||||||||
Forfeited | — | — | ||||||||||
Outstanding at September 30, 2012 | 81,625 | $28.71 | ||||||||||
Granted | — | — | ||||||||||
Exercised | (15,000 | ) | $25.08 | |||||||||
Forfeited | — | — | ||||||||||
Outstanding at September 30, 2013 | 66,625 | $29.53 | ||||||||||
Granted | — | — | ||||||||||
Exercised | (42,500 | ) | $26.26 | |||||||||
Forfeited | — | — | ||||||||||
Outstanding at September 30, 2014 | 24,125 | $30.00 | ||||||||||
Exercisable at September 30, 2014 | 24,125 | $30.00 | ||||||||||
Exercisable at September 30, 2013 | 66,625 | $29.53 | ||||||||||
Exercisable at September 30, 2012 | 81,625 | $28.71 | ||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | ' | |||||||||||
The following table summarizes stock options outstanding and exercisable as of September 30, 2014: | ||||||||||||
Outstanding and Exercisable | ||||||||||||
Exercise Price Range | Number | Weighted Average | Weighted | Aggregate | ||||||||
Of Stock | Remaining | Average | Intrinsic | |||||||||
Options | Contractual Term | Exercise | Value | |||||||||
(in years) | Price | (in thousands) | ||||||||||
$28.65 - $30.37 | 24,125 | 0.6 | $30.00 | $ | 495 | |||||||
Schedule of Nonvested Share Activity | ' | |||||||||||
The following table summarizes the performance share activity under the NJR 2007 Stock Award and Incentive Plan for the past three fiscal years: | ||||||||||||
Shares (1) | Weighted Average | |||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Non-vested and outstanding at September 30, 2011 | 106,027 | $28.04 | ||||||||||
Granted | 28,418 | $47.17 | ||||||||||
Vested (2) | (49,702 | ) | 30.08 | |||||||||
Cancelled/forfeited | — | — | ||||||||||
Non-vested and outstanding at September 30, 2012 | 84,743 | $33.26 | ||||||||||
Granted | 49,904 | $30.74 | ||||||||||
Vested | — | — | ||||||||||
Cancelled/forfeited (3) | (56,325 | ) | 26.24 | |||||||||
Non-vested and outstanding at September 30, 2013 | 78,322 | $36.70 | ||||||||||
Granted | 73,864 | $40.55 | ||||||||||
Vested (4) | (28,418 | ) | 47.17 | |||||||||
Cancelled/forfeited | — | — | ||||||||||
Non-vested and outstanding at September 30, 2014 | 123,768 | $36.59 | ||||||||||
-1 | The number of common shares issued related to 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 13, 2012, the number of common shares related to performance shares and market condition shares earned was 68.8 percent , or 15,427 shares and 70 percent, or 19,095 shares, respectively. The number represented on this line is the target number of 100 percent. See footnote (1) above. | |||||||||||
-3 | As certified by the Company's Leadership and Compensation Committee on November 12, 2013, the number of common shares granted in fiscal 2011 related to performance shares and market condition shares earned was zero. The number represented on this line is the target number of 100 percent. See footnote (1) above. | |||||||||||
-4 | As certified by the Company's Leadership and Compensation Committee on November 11, 2014, the number of common shares related to performance shares earned was 150 percent, or 42,627 shares, excluding accumulated dividends. The number represented on this line is the target number of 100 percent. See footnote (1) above. | |||||||||||
Nonvested Restricted Stock Shares Activity | ' | |||||||||||
The following table summarizes the restricted stock activity under the NJR 2007 Stock Award and Incentive Plan for the past three fiscal years: | ||||||||||||
Shares | Weighted Average | Total Fair Value of Vested Shares (in Thousands) | ||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Non-vested and outstanding at September 30, 2011 | 77,097 | $39.90 | — | |||||||||
Granted | 1,929 | $47.17 | — | |||||||||
Vested | (19,680 | ) | $39.10 | $ | 879 | |||||||
Cancelled/forfeited | — | — | — | |||||||||
Non-vested and outstanding at September 30, 2012 | 59,346 | $40.40 | — | |||||||||
Granted | 2,139 | $40.62 | — | |||||||||
Vested (1) | (19,680 | ) | $39.10 | $ | 888 | |||||||
Cancelled/forfeited | (2,550 | ) | $40.74 | — | ||||||||
Non-vested and outstanding at September 30, 2013 | 39,255 | $41.05 | — | |||||||||
Granted | 16,678 | $45.56 | — | |||||||||
Vested (1) | (34,230 | ) | $40.74 | $ | 1,534 | |||||||
Cancelled/forfeited | (958 | ) | $40.74 | — | ||||||||
Non-vested and outstanding at September 30, 2014 | 20,745 | $45.20 | — | |||||||||
Schedule of Deferred Retention Stock Award | ' | |||||||||||
The following table summarizes the deferred retention stock award under the NJR 2007 Stock Award and Incentive Plan for the past three fiscal years: | ||||||||||||
Shares | Weighted Average | Total Fair Value of Vested Shares (in Thousands) | ||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Outstanding at September 30, 2011 | 106,730 | $35.37 | — | |||||||||
Granted/Vested | 49,171 | $47.17 | — | |||||||||
Delivered | (103,903 | ) | $35.37 | $ | 4,787 | |||||||
Forfeited | (2,827 | ) | 35.37 | — | ||||||||
Outstanding at September 30, 2012 | 49,171 | $47.17 | — | |||||||||
Granted/Vested | 67,295 | $40.62 | — | |||||||||
Delivered | — | — | — | |||||||||
Forfeited | (4,673 | ) | $43.44 | — | ||||||||
Outstanding at September 30, 2013 | 111,793 | $43.38 | — | |||||||||
Granted/Vested | 28,985 | $45.75 | — | |||||||||
Delivered | — | — | — | |||||||||
Forfeited | (2,387 | ) | $42.94 | — | ||||||||
Outstanding at September 30, 2014 | 138,391 | $43.89 | — | |||||||||
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Net Funded Status | ' | ||||||||||||||||||||||||
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) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 198,826 | $ | 211,136 | $ | 112,771 | $ | 121,027 | |||||||||||||||||
Service cost | 6,143 | 6,871 | 3,923 | 4,686 | |||||||||||||||||||||
Interest cost | 10,066 | 8,942 | 5,734 | 5,148 | |||||||||||||||||||||
Plan participants' contributions | 47 | 49 | 38 | 32 | |||||||||||||||||||||
Special termination benefits | 2,814 | — | 648 | — | |||||||||||||||||||||
Actuarial loss (gain) | 21,440 | (22,288 | ) | 6,792 | (15,645 | ) | |||||||||||||||||||
Benefits paid, net of retiree subsidies received | (11,637 | ) | (5,884 | ) | (2,133 | ) | (2,477 | ) | |||||||||||||||||
Benefit obligation at end of year | $ | 227,699 | $ | 198,826 | $ | 127,773 | $ | 112,771 | |||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 200,236 | $ | 166,664 | $ | 49,555 | $ | 41,090 | |||||||||||||||||
Actual return on plan assets | 22,923 | 19,323 | 4,590 | 5,120 | |||||||||||||||||||||
Employer contributions | 85 | 20,083 | 4,970 | 5,977 | |||||||||||||||||||||
Benefits paid, net of plan participants' contributions | (11,591 | ) | (5,834 | ) | (2,206 | ) | (2,632 | ) | |||||||||||||||||
Fair value of plan assets at end of year | $ | 211,653 | $ | 200,236 | $ | 56,909 | $ | 49,555 | |||||||||||||||||
Funded status | $ | (16,046 | ) | $ | 1,410 | $ | (70,864 | ) | $ | (63,216 | ) | ||||||||||||||
Amounts recognized on Consolidated Balance Sheets | |||||||||||||||||||||||||
Postemployment employee benefit (liability) asset | |||||||||||||||||||||||||
Current | $ | (100 | ) | $ | (96 | ) | $ | (136 | ) | $ | (100 | ) | |||||||||||||
Noncurrent | (15,946 | ) | 1,506 | (70,728 | ) | (63,116 | ) | ||||||||||||||||||
Total | $ | (16,046 | ) | $ | 1,410 | $ | (70,864 | ) | $ | (63,216 | ) | ||||||||||||||
-1 | Includes the Company's PEP. | ||||||||||||||||||||||||
Schedule of Pension Costs Recognized in Regulatory Assets and Accumulated Other Comprehensive Income Loss | ' | ||||||||||||||||||||||||
The following table summarizes the amounts recognized in regulatory assets and accumulated other comprehensive income as of September 30: | |||||||||||||||||||||||||
Regulatory Assets | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
Pension | OPEB | Pension | OPEB | ||||||||||||||||||||||
Balance at September 30, 2012 | $ | 80,449 | $ | 58,799 | (1) | $ | 25,183 | $ | 1,511 | ||||||||||||||||
Amounts arising during the period: | |||||||||||||||||||||||||
Net actuarial (gain) | (17,961 | ) | (13,523 | ) | (8,826 | ) | (3,589 | ) | |||||||||||||||||
Amounts amortized to net periodic costs: | |||||||||||||||||||||||||
Net actuarial (loss) | (5,719 | ) | (3,743 | ) | (1,927 | ) | (114 | ) | |||||||||||||||||
Prior service (cost) credit | (105 | ) | 301 | (3 | ) | 54 | |||||||||||||||||||
Net transition obligation | — | (22 | ) | — | (4 | ) | |||||||||||||||||||
Balance at September 30, 2013 | $ | 56,664 | $ | 41,812 | $ | 14,427 | $ | (2,142 | ) | ||||||||||||||||
Amounts arising during the period: | |||||||||||||||||||||||||
Net actuarial loss | 10,563 | 4,277 | 6,243 | 2,098 | |||||||||||||||||||||
Amounts amortized to net periodic costs: | |||||||||||||||||||||||||
Net actuarial (loss) gain | (5,326 | ) | (2,607 | ) | (3,085 | ) | 107 | ||||||||||||||||||
Prior service (cost) credit | (107 | ) | 303 | (4 | ) | 54 | |||||||||||||||||||
Net transition obligation | — | (11 | ) | — | — | ||||||||||||||||||||
Balance at September 30, 2014 | $ | 61,794 | $ | 43,774 | $ | 17,581 | $ | 117 | |||||||||||||||||
-1 | Balance represents amounts recognized in accordance with ASC 715 and excludes $308,000 associated with a regulatory asset approved by the BPU for fiscal 2012. | ||||||||||||||||||||||||
The amounts in regulatory assets and accumulated other comprehensive income not yet recognized as components of net periodic benefit cost as of September 30 are: | |||||||||||||||||||||||||
Regulatory Assets | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
Pension | OPEB | Pension | OPEB | ||||||||||||||||||||||
(Thousands) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Net actuarial loss (gain) | $ | 60,797 | $ | 55,559 | $ | 45,809 | $ | 44,140 | $ | 17,570 | $ | 14,412 | $ | 425 | $ | (1,782 | ) | ||||||||
Prior service cost (credit) | 997 | 1,105 | (2,035 | ) | (2,339 | ) | 11 | 15 | (308 | ) | (360 | ) | |||||||||||||
Net transition obligation | — | — | — | 11 | — | — | — | — | |||||||||||||||||
Total | $ | 61,794 | $ | 56,664 | $ | 43,774 | $ | 41,812 | $ | 17,581 | $ | 14,427 | $ | 117 | $ | (2,142 | ) | ||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | ' | ||||||||||||||||||||||||
Amounts included in regulatory assets and accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost in fiscal 2015 are as follows: | |||||||||||||||||||||||||
Regulatory Assets | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
(Thousands) | Pension | OPEB | Pension | OPEB | |||||||||||||||||||||
Net actuarial loss | $ | 5,305 | $ | 2,911 | $ | 1,680 | $ | 32 | |||||||||||||||||
Prior service cost (credit) | 108 | (311 | ) | 3 | (54 | ) | |||||||||||||||||||
Total | $ | 5,413 | $ | 2,600 | $ | 1,683 | $ | (22 | ) | ||||||||||||||||
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | ' | ||||||||||||||||||||||||
The accumulated benefit obligation for the pension plans, including the PEP, exceeded the fair value of plan assets. The projected benefit and accumulated benefit obligations and the fair value of plan assets as of September 30, are as follows: | |||||||||||||||||||||||||
Pension | |||||||||||||||||||||||||
(Thousands) | 2014 | 2013 | |||||||||||||||||||||||
Projected benefit obligation | $ | 227,699 | $ | 198,826 | |||||||||||||||||||||
Accumulated benefit obligation | $ | 198,058 | $ | 176,172 | |||||||||||||||||||||
Fair value of plan assets | $ | 211,653 | $ | 200,236 | |||||||||||||||||||||
Schedule of Net Benefit Costs | ' | ||||||||||||||||||||||||
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) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 6,143 | $ | 6,871 | $ | 5,375 | $ | 3,923 | $ | 4,686 | $ | 3,584 | |||||||||||||
Interest cost | 10,066 | 8,942 | 8,825 | 5,734 | 5,148 | 5,133 | |||||||||||||||||||
Expected return on plan assets | (15,475 | ) | (14,825 | ) | (12,685 | ) | (4,174 | ) | (3,653 | ) | (2,746 | ) | |||||||||||||
Recognized actuarial loss | 5,596 | 7,646 | 5,015 | 2,500 | 3,857 | 2,894 | |||||||||||||||||||
Prior service cost (credit) amortization | 111 | 108 | 46 | (357 | ) | (355 | ) | 25 | |||||||||||||||||
Recognized net initial obligation | — | — | — | 11 | 26 | 356 | |||||||||||||||||||
Net periodic benefit cost | $ | 6,441 | $ | 8,742 | $ | 6,576 | $ | 7,637 | $ | 9,709 | $ | 9,246 | |||||||||||||
Special termination benefit | 2,814 | — | — | 648 | — | — | |||||||||||||||||||
Net periodic benefit cost recognized as expense | $ | 9,255 | $ | 8,742 | $ | 6,576 | $ | 8,285 | $ | 9,709 | $ | 9,246 | |||||||||||||
Schedule of Assumptions Used | ' | ||||||||||||||||||||||||
The weighted average assumptions used to determine benefit costs during the fiscal year and obligations as of September 30, are as follows: | |||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Benefit costs: | |||||||||||||||||||||||||
Discount rate | 5.15 | % | 4.3 | % | 5.25 | % | 5.15 | % | 4.3 | % | 5.25 | % | |||||||||||||
Expected asset return | 8.25 | % | 8.5 | % | 8.25 | % | 8.25 | % | 8.5 | % | 8.25 | % | |||||||||||||
Compensation increase | 3.25 | % | 3.25 | % | 3.25 | % | 3.5 | % | 3.25 | % | 3.25 | % | |||||||||||||
Obligations: | |||||||||||||||||||||||||
Discount rate | 4.55 | % | 5.15 | % | 4.3 | % | 4.55 | % | 5.15 | % | 4.3 | % | |||||||||||||
Compensation increase | 3.25/3.50% | (1) | 3.25 | % | 3.25 | % | 3.5 | % | 3.25 | % | 3.25 | % | |||||||||||||
-1 | Percentages for represented and nonrepresented plans, respectively. | ||||||||||||||||||||||||
Schedule of Health Care Cost Trend Rates and Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates | ' | ||||||||||||||||||||||||
Information relating to the assumed HCCTR used to determine expected OPEB benefits as of September 30, and the effect of a one percent change in the rate, are as follows: | |||||||||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
HCCTR | 7.1 | % | 7.3 | % | 7.5 | % | |||||||||||||||||||
Ultimate HCCTR | 4.8 | % | 4.8 | % | 4.8 | % | |||||||||||||||||||
Year ultimate HCCTR reached | 2022 | 2022 | 2022 | ||||||||||||||||||||||
Effect of a 1 percentage point increase in the HCCTR on: | |||||||||||||||||||||||||
Year-end benefit obligation | $ | 20,965 | $ | 18,008 | $ | 21,278 | |||||||||||||||||||
Total service and interest cost | $ | 1,885 | $ | 2,156 | $ | 1,868 | |||||||||||||||||||
Effect of a 1 percentage point decrease in the HCCTR on: | |||||||||||||||||||||||||
Year-end benefit obligation | $ | (16,932 | ) | $ | (14,629 | ) | $ | (17,034 | ) | ||||||||||||||||
Total service and interest costs | $ | (1,493 | ) | $ | (1,675 | ) | $ | (1,457 | ) | ||||||||||||||||
Schedule of Allocation of Plan Assets | ' | ||||||||||||||||||||||||
The mix and targeted allocation of the pension and OPEB plans' assets are as follows: | |||||||||||||||||||||||||
2015 | Assets at | ||||||||||||||||||||||||
Target | September 30, | ||||||||||||||||||||||||
Asset Allocation | Allocation | 2014 | 2013 | ||||||||||||||||||||||
U.S. equity securities | 40 | % | 39 | % | 42 | % | |||||||||||||||||||
International equity securities | 20 | 20 | 22 | ||||||||||||||||||||||
Fixed income | 40 | 41 | 36 | ||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||||||||||||
Schedule of Expected Benefit Payments | ' | ||||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years: | |||||||||||||||||||||||||
(Thousands) | Pension | OPEB | |||||||||||||||||||||||
2015 | $ | 7,176 | $ | 3,509 | |||||||||||||||||||||
2016 | $ | 8,102 | $ | 4,292 | |||||||||||||||||||||
2017 | $ | 8,513 | $ | 4,735 | |||||||||||||||||||||
2018 | $ | 9,309 | $ | 5,197 | |||||||||||||||||||||
2019 | $ | 10,017 | $ | 5,705 | |||||||||||||||||||||
2020 - 2024 | $ | 62,977 | $ | 37,063 | |||||||||||||||||||||
Schedule of Prescription Drug Subsidies | ' | ||||||||||||||||||||||||
The estimated subsidy payments are: | |||||||||||||||||||||||||
Estimated Subsidy Payment | |||||||||||||||||||||||||
Fiscal Year | (Thousands) | ||||||||||||||||||||||||
2015 | $201 | ||||||||||||||||||||||||
2016 | $225 | ||||||||||||||||||||||||
2017 | $249 | ||||||||||||||||||||||||
2018 | $274 | ||||||||||||||||||||||||
2019 | $300 | ||||||||||||||||||||||||
2020 - 2024 | $2,030 | ||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | ' | ||||||||||||||||||||||||
Pension and OPEB assets held in the master trust, measured at fair value, as of September 30, are summarized as follows: | |||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | |||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
(Thousands) | Pension | OPEB | |||||||||||||||||||||||
Assets | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Money market funds | $ | 50 | $ | 3 | $ | 1,154 | $ | 1,150 | |||||||||||||||||
Registered Investment Companies- | |||||||||||||||||||||||||
Equity Funds | |||||||||||||||||||||||||
Large Cap Index | 70,358 | 69,707 | 19,092 | 16,419 | |||||||||||||||||||||
Extended Market Index | 12,475 | 14,736 | 3,733 | 3,444 | |||||||||||||||||||||
International Stock | 41,833 | 42,792 | 10,309 | 10,033 | |||||||||||||||||||||
Fixed Income Funds | |||||||||||||||||||||||||
Emerging Markets | 10,029 | 8,754 | 2,798 | 2,163 | |||||||||||||||||||||
Core Fixed Income | — | — | 6,522 | 11,684 | |||||||||||||||||||||
Opportunistic Income | — | — | 3,960 | — | |||||||||||||||||||||
Ultra Short Duration | — | — | 3,761 | — | |||||||||||||||||||||
High Yield Bond Fund | 21,054 | 19,850 | 5,580 | 4,662 | |||||||||||||||||||||
Long Duration Fund | 55,854 | 44,394 | — | — | |||||||||||||||||||||
Total assets at fair value | $ | 211,653 | $ | 200,236 | $ | 56,909 | $ | 49,555 | |||||||||||||||||
ASSET_RETIREMENT_OBLIGATIONS_T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | |||||||
Analysis of Change in ARO Liability | ' | |||||||
The following is an analysis of the change in the ARO liability for the fiscal year ended September 30: | ||||||||
(Thousands) | 2014 | 2013 | ||||||
Balance at October 1 | $ | 28,711 | $ | 27,983 | ||||
Accretion | 2,012 | 1,892 | ||||||
Additions | 925 | 533 | ||||||
Retirements | (1,153 | ) | (1,697 | ) | ||||
Balance at period end | $ | 30,495 | $ | 28,711 | ||||
Schedule of Future Accretion | ' | |||||||
Accretion for the next five years is estimated to be as follows: | ||||||||
(Thousands) | ||||||||
Fiscal Year Ended September 30, | Estimated Accretion | |||||||
2015 | $ | 2,075 | ||||||
2016 | 2,139 | |||||||
2017 | 2,194 | |||||||
2018 | 2,248 | |||||||
2019 | 2,303 | |||||||
Total | $ | 10,959 | ||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||
A reconciliation of the U.S. federal statutory rate of 35 percent to the effective rate from operations for the fiscal years ended September 30, 2014, 2013 and 2012 is as follows: | ||||||||||
(Thousands) | 2014 | 2013 | 2012 | |||||||
Statutory income tax expense | $ | 67,834 | $ | 52,661 | $ | 35,213 | ||||
Change resulting from | ||||||||||
State income taxes | 7,785 | 5,168 | 5,434 | |||||||
Depreciation and cost of removal | (4,437 | ) | (5,769 | ) | (3,999 | ) | ||||
Investment tax credits | (23,083 | ) | (18,749 | ) | (34,397 | ) | ||||
Basis adjustment of solar assets due to ITC | 3,959 | 3,225 | 5,974 | |||||||
Other | (218 | ) | (961 | ) | (496 | ) | ||||
Income tax provision | $ | 51,840 | $ | 35,575 | $ | 7,729 | ||||
Effective income tax rate | 26.8 | % | 23.6 | % | 7.7 | % | ||||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||||||||
The income tax provision (benefit) from operations consists of the following: | ||||||||||
(Thousands) | 2014 | 2013 | 2012 | |||||||
Current | ||||||||||
Federal | $ | 37,904 | $ | 12,248 | $ | 14,983 | ||||
State | 11,096 | 1,763 | 4,025 | |||||||
Deferred | ||||||||||
Federal | 24,963 | 34,127 | 18,757 | |||||||
State | 960 | 6,186 | 4,361 | |||||||
Investment tax credits | (23,083 | ) | (18,749 | ) | (34,397 | ) | ||||
Income tax provision | $ | 51,840 | $ | 35,575 | $ | 7,729 | ||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||
The temporary differences, which give rise to deferred tax assets and (liabilities), consist of the following: | ||||||||||
(Thousands) | 2014 | 2013 | ||||||||
Deferred tax assets | ||||||||||
Investment tax credits | $ | 10,341 | (1) | $ | 43,033 | |||||
Deferred service contract revenue | 3,299 | 3,231 | ||||||||
Incentive compensation | 14,632 | 6,798 | ||||||||
Fair value of derivatives | 14,350 | — | ||||||||
State net operating losses | 8,962 | 6,118 | ||||||||
Conservation incentive plan | 2,312 | — | ||||||||
Other | 10,078 | 5,718 | ||||||||
Total deferred tax assets | $ | 63,974 | $ | 64,898 | ||||||
Deferred tax liabilities | ||||||||||
Property related items | $ | (371,017 | ) | $ | (329,921 | ) | ||||
Remediation costs | (12,429 | ) | (18,881 | ) | ||||||
Equity investments | (35,474 | ) | (33,368 | ) | ||||||
Post employment benefits | (10,268 | ) | (17,455 | ) | ||||||
Fair value of derivatives | — | (6,258 | ) | |||||||
Conservation incentive plan | — | (7,611 | ) | |||||||
Under-recovered gas costs | (5,056 | ) | (383 | ) | ||||||
Other | (11,751 | ) | (13,699 | ) | ||||||
Total deferred tax liabilities | $ | (445,995 | ) | $ | (427,576 | ) | ||||
Total net deferred tax liabilities | $ | (382,021 | ) | $ | (362,678 | ) | ||||
(1) Includes $2.8 million for NJNG, which is being amortized over the life of the related assets and $7.5 million for NJRCEV, which is ITC carryforward. | ||||||||||
Summary of Operating Loss Carryforwards | ' | |||||||||
The deferred tax assets will expire as follows: | ||||||||||
(Thousands) | ||||||||||
Fiscal years 2015 - 2018 | $ | 78 | ||||||||
Fiscal years 2019 - 2023 | — | |||||||||
Fiscal Years 2024 - 2028 | — | |||||||||
Fiscal Years 2029 - 2034 | 8,946 | |||||||||
Total | $ | 9,024 | ||||||||
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||
Long-term Purchase Commitments | ' | ||||||||||||||||||
Commitments as of September 30, 2014, for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: | |||||||||||||||||||
(Thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||
NJRES: | |||||||||||||||||||
Natural gas purchases | $ | 298,563 | $ | 18,402 | $ | — | $ | — | $ | — | $ | — | |||||||
Storage demand fees | 27,883 | 10,471 | 5,612 | 3,500 | 1,782 | 2,598 | |||||||||||||
Pipeline demand fees | 76,524 | 41,759 | 21,828 | 14,499 | 6,638 | 6,861 | |||||||||||||
Sub-total NJRES | $ | 402,970 | $ | 70,632 | $ | 27,440 | $ | 17,999 | $ | 8,420 | $ | 9,459 | |||||||
NJNG: | |||||||||||||||||||
Natural gas purchases | $ | 100,218 | $ | 5,328 | $ | 34 | $ | — | $ | — | $ | — | |||||||
Storage demand fees | 24,045 | 17,865 | 10,883 | 9,299 | 9,299 | 4,649 | |||||||||||||
Pipeline demand fees | 54,293 | 44,372 | 41,001 | 85,558 | 87,367 | 860,211 | |||||||||||||
Sub-total NJNG | $ | 178,556 | $ | 67,565 | $ | 51,918 | $ | 94,857 | $ | 96,666 | $ | 864,860 | |||||||
Total (1) | $ | 581,526 | $ | 138,197 | $ | 79,358 | $ | 112,856 | $ | 105,086 | $ | 874,319 | |||||||
-1 | Does not include amounts related to intercompany asset management agreements between NJRES and NJNG. |
BUSINESS_SEGMENT_AND_OTHER_OPE1
BUSINESS SEGMENT AND OTHER OPERATIONS DATA (Tables) | 12 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Segment Reporting [Abstract] | ' | |||||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||||
Information related to the Company's various business segments and other operations is detailed below: | ||||||||||
(Thousands) | ||||||||||
Fiscal Years Ended September 30, | 2014 | 2013 | 2012 | |||||||
Operating revenues | ||||||||||
Natural Gas Distribution | ||||||||||
External customers | $ | 819,415 | $ | 787,987 | $ | 627,713 | ||||
Energy Services | ||||||||||
External customers (1) | 2,858,703 | 2,351,084 | 1,577,851 | |||||||
Intercompany | 72,114 | 5,494 | 2,760 | |||||||
Clean Energy Ventures | ||||||||||
External customers | 14,575 | 11,988 | 2,257 | |||||||
Subtotal | 3,764,807 | 3,156,553 | 2,210,581 | |||||||
Home Services and Other | ||||||||||
External customers | 45,452 | 47,009 | 41,102 | |||||||
Intercompany | 1,235 | 945 | 1,093 | |||||||
Eliminations | (73,349 | ) | (6,439 | ) | (3,853 | ) | ||||
Total | $ | 3,738,145 | $ | 3,198,068 | $ | 2,248,923 | ||||
Depreciation and amortization | ||||||||||
Natural Gas Distribution | $ | 40,540 | $ | 37,999 | $ | 35,247 | ||||
Energy Services | 59 | 44 | 59 | |||||||
Clean Energy Ventures | 11,295 | 8,477 | 5,680 | |||||||
Midstream | 6 | 6 | 6 | |||||||
Subtotal | 51,900 | 46,526 | 40,992 | |||||||
Home Services and Other | 846 | 786 | 661 | |||||||
Eliminations | (4 | ) | (2 | ) | (10 | ) | ||||
Total | $ | 52,742 | $ | 47,310 | $ | 41,643 | ||||
Interest income (2) | ||||||||||
Natural Gas Distribution | $ | 999 | $ | 653 | $ | 889 | ||||
Energy Services | 222 | 1 | 37 | |||||||
Midstream | 950 | 1,065 | 1,098 | |||||||
Subtotal | 2,171 | 1,719 | 2,024 | |||||||
Home Services and Other | 1 | 2 | 3 | |||||||
Eliminations | (950 | ) | (884 | ) | (1,001 | ) | ||||
Total | $ | 1,222 | $ | 837 | $ | 1,026 | ||||
-1 | Includes sales to Canada, which accounted for 3.3, 5.9 and 6.6 percent of total operating revenues during fiscal 2014, 2013 and 2012, respectively. | |||||||||
-2 | Included in other income on the Consolidated Statement of Operations. | |||||||||
(Thousands) | ||||||||||
Fiscal Years Ended September 30, | 2014 | 2013 | 2012 | |||||||
Interest expense, net of capitalized interest | ||||||||||
Natural Gas Distribution | $ | 16,683 | $ | 14,995 | $ | 14,890 | ||||
Energy Services | 1,725 | 2,534 | 1,096 | |||||||
Clean Energy Ventures | 5,300 | 3,387 | 854 | |||||||
Midstream | 1,396 | 1,962 | 2,665 | |||||||
Subtotal | 25,104 | 22,878 | 19,505 | |||||||
Home Services and Other | 359 | 1,101 | 1,339 | |||||||
Total | $ | 25,463 | $ | 23,979 | $ | 20,844 | ||||
Income tax provision (benefit) | ||||||||||
Natural Gas Distribution | $ | 39,374 | $ | 35,399 | $ | 38,135 | ||||
Energy Services | 26,458 | 10,516 | (4,950 | ) | ||||||
Clean Energy Ventures | (21,937 | ) | (17,711 | ) | (32,507 | ) | ||||
Midstream | 5,227 | 4,993 | 4,978 | |||||||
Subtotal | 49,122 | 33,197 | 5,656 | |||||||
Home Services and Other | 2,460 | 2,550 | 2,178 | |||||||
Eliminations | 258 | (172 | ) | (105 | ) | |||||
Total | $ | 51,840 | $ | 35,575 | $ | 7,729 | ||||
Equity in earnings of affiliates | ||||||||||
Midstream | $ | 14,078 | $ | 13,868 | $ | 14,308 | ||||
Eliminations | (3,546 | ) | (3,519 | ) | (3,674 | ) | ||||
Total | $ | 10,532 | $ | 10,349 | $ | 10,634 | ||||
Net financial earnings | ||||||||||
Natural Gas Distribution | $ | 74,204 | $ | 73,846 | $ | 73,238 | ||||
Energy Services | 79,735 | 19,311 | 10,791 | |||||||
Clean Energy Ventures | 12,654 | 10,060 | 19,452 | |||||||
Midstream | 7,498 | 7,199 | 6,749 | |||||||
Subtotal | 174,091 | 110,416 | 110,230 | |||||||
Home Services and Other | 2,798 | 3,292 | 2,366 | |||||||
Eliminations | (32 | ) | (27 | ) | (179 | ) | ||||
Total | $ | 176,857 | $ | 113,681 | $ | 112,417 | ||||
Capital expenditures | ||||||||||
Natural Gas Distribution | $ | 152,566 | $ | 137,083 | $ | 116,455 | ||||
Clean Energy Ventures | 135,543 | 59,125 | 89,726 | |||||||
Subtotal | 288,109 | 196,208 | 206,181 | |||||||
Home Services and Other | 1,179 | 1,042 | 1,334 | |||||||
Total | $ | 289,288 | $ | 197,250 | $ | 207,515 | ||||
Investments in equity investees | ||||||||||
Clean Energy Ventures | $ | — | $ | — | $ | 8,800 | ||||
Midstream | 555 | — | — | |||||||
Total | $ | 555 | $ | — | $ | 8,800 | ||||
Reconciliation of Consolidated Net Financial Earnings to Consolidated Net Income | ' | |||||||||
A reconciliation of consolidated NFE to consolidated net income is as follows: | ||||||||||
(Thousands) | 2014 | 2013 | 2012 | |||||||
Consolidated net financial earnings | $ | 176,857 | $ | 113,681 | $ | 112,417 | ||||
Less: | ||||||||||
Unrealized loss (gain) on derivative instruments and related transactions | 28,534 | (9,418 | ) | 35,790 | ||||||
Effects of economic hedging related to natural gas inventory | 26,639 | 7,635 | (4,891 | ) | ||||||
Tax adjustments | (20,286 | ) | 655 | (11,361 | ) | |||||
Consolidated net income | $ | 141,970 | $ | 114,809 | $ | 92,879 | ||||
Reconciliation of Assets from Segment to Consolidated | ' | |||||||||
The Company's assets for the various business segments and business operations are detailed below: | ||||||||||
(Thousands) | 2014 | 2013 | 2012 | |||||||
Assets at end of period | ||||||||||
Natural Gas Distribution | $ | 2,143,684 | $ | 2,094,940 | $ | 2,005,520 | ||||
Energy Services | 457,080 | 468,096 | 347,406 | |||||||
Clean Energy Ventures | 380,707 | 253,663 | 223,247 | |||||||
Midstream | 153,891 | 153,536 | 157,779 | |||||||
Subtotal | 3,135,362 | 2,970,235 | 2,733,952 | |||||||
Home Services and Other | 82,413 | 85,293 | 73,298 | |||||||
Intercompany assets (1) | (58,971 | ) | (50,745 | ) | (37,245 | ) | ||||
Total | $ | 3,158,804 | $ | 3,004,783 | $ | 2,770,005 | ||||
-1 | Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||
A summary of financial data for each quarter of fiscal 2014 and 2013 follows. Due to the seasonal nature of the Company's businesses, quarterly amounts vary significantly during the fiscal year. In the opinion of management, the information furnished reflects all adjustments necessary for a fair presentation of the results of the interim periods. | |||||||||||||
First | Second | Third | Fourth | ||||||||||
(Thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | |||||||||
2014 | |||||||||||||
Operating revenues | $ | 878,405 | $ | 1,579,569 | $ | 688,257 | $ | 591,914 | |||||
Gross margin (1) | $ | 64,432 | $ | 315,849 | $ | 28,474 | $ | 47,375 | |||||
Operating income (loss) | $ | 12,224 | $ | 247,012 | $ | (29,208 | ) | $ | (28,838 | ) | |||
Net income (loss) | $ | 7,693 | $ | 172,971 | $ | (14,274 | ) | $ | (24,420 | ) | |||
Earnings (loss) per share | |||||||||||||
Basic | $0.18 | $4.11 | ($0.34) | ($0.58) | |||||||||
Diluted | $0.18 | $4.07 | ($0.34) | ($0.58) | |||||||||
2013 | |||||||||||||
Operating revenues | $ | 736,019 | $ | 960,885 | $ | 767,469 | $ | 733,695 | |||||
Gross margin (1) | $ | 135,189 | $ | 108,137 | $ | 100,641 | $ | 23,088 | |||||
Operating income (loss) | $ | 87,191 | $ | 56,969 | $ | 47,000 | $ | (31,929 | ) | ||||
Net income (loss) | $ | 60,206 | $ | 45,469 | $ | 29,155 | $ | (20,021 | ) | ||||
Earnings (loss) per share | |||||||||||||
Basic | $1.44 | $1.09 | $0.70 | ($0.48) | |||||||||
Diluted | $1.44 | $1.08 | $0.70 | ($0.48) | |||||||||
-1 | Gross margin consists of operating revenue less cost of goods sold and other direct expenses at NJR's unregulated subsidiaries and utility gross margin at NJNG, which includes natural gas revenues less natural gas purchases, sales tax, a TEFA and regulatory rider expenses. |
NATURE_OF_BUSINESS_Details
NATURE OF BUSINESS (Details) | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 31, 2014 | |
Customers | Steckman Ridge [Member] | Iroquois [Member] | Subsequent Event [Member] | |
PennEast [Member] | ||||
Total retail customers | 504,300 | ' | ' | ' |
Ownership interest, percent | ' | 50.00% | 5.53% | 20.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, GAS IN STORAGE (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | MMcf | MMcf |
Public Utilities, Inventory [Line Items] | ' | ' |
Gas in storage | $277,516 | $314,477 |
Gas in storage (BCF) | 77,800 | 82,700 |
NJNG [Member] | ' | ' |
Public Utilities, Inventory [Line Items] | ' | ' |
Gas in storage | 86,266 | 104,979 |
Gas in storage (BCF) | 21,300 | 20,400 |
NJRES [Member] | ' | ' |
Public Utilities, Inventory [Line Items] | ' | ' |
Gas in storage | $191,250 | $209,498 |
Gas in storage (BCF) | 56,500 | 62,300 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, DEMAND FEES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Demand fees | $214 | $215.10 | $216.50 |
NJRES [Member] | ' | ' | ' |
Demand fees | 122 | 123 | 129.8 |
NJNG [Member] | ' | ' | ' |
Demand fees | $92 | $92.10 | $86.70 |
Minimum [Member] | ' | ' | ' |
Storage and pipeline capacity, contract term | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' |
Storage and pipeline capacity, contract term | '10 years | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CAPITALIZED AND DEFERRED INTEREST (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
SBC interest rate | 2.65% | 2.84% | 1.61% |
Deferred interest | $586 | $653 | $878 |
Seven-Year Treasury Rate [Member] | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | 0.06% | ' | ' |
NJNG [Member] | ' | ' | ' |
AFUDC - Debt | 1,057 | 921 | 300 |
AFUDC - Equity | 1,562 | 2,037 | 638 |
Total | $2,619 | $2,958 | $938 |
Weighted average interest rate | 3.30% | 1.05% | 1.47% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, SALES TAX ACCOUNTING (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Accounting Policies [Abstract] | ' | ' | ' | |||
Sales tax | $47.40 | $44.40 | $32.30 | |||
TEFA | 1.4 | [1] | 5 | [1] | 6 | [1] |
Total | $48.80 | $49.40 | $38.30 | |||
[1] | TEFA was phased out in January 2014. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CASH AND CASH EQUIVALENTS (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Restricted cash and cash equivalents | $1 | $1.10 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, PROPERTY PLANT AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Composite rate of depreciation | 2.44% | 2.43% | 2.38% |
Property, Plant and Equipment, Gross | $2,333,543 | $2,055,155 | ' |
Accumulated depreciation | -449,433 | -412,039 | ' |
Property, plant and equipment, net | 1,884,110 | 1,643,116 | ' |
Regulated Operation [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Distribution facilities | 1,567,648 | 1,421,885 | ' |
Transmission facilities | 281,488 | 273,853 | ' |
Storage facilities | 41,669 | 41,687 | ' |
Unregulated Operation [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Solar and wind property | 376,065 | 232,409 | ' |
All other property | $66,673 | $85,321 | ' |
All other property [Member] | Minimum [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful lives | '5 years | ' | ' |
All other property [Member] | Maximum [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful lives | '35 years | ' | ' |
Distribution Facilities [Member] | Minimum [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful lives | '38 years | ' | ' |
Distribution Facilities [Member] | Maximum [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful lives | '74 years | ' | ' |
Transmission Facilities [Member] | Minimum [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful lives | '35 years | ' | ' |
Transmission Facilities [Member] | Maximum [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful lives | '56 years | ' | ' |
Storage Facilities [Member] | Minimum [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful lives | '34 years | ' | ' |
Storage Facilities [Member] | Maximum [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful lives | '47 years | ' | ' |
Solar Property [Member] | Minimum [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful lives | '20 years | ' | ' |
Solar Property [Member] | Maximum [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful lives | '25 years | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, SALE OF ASSET (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' |
Pre-tax gain from sale of land | ($766) | ' | ' |
Proceeds from sale of property, plant, and equipment | 6,010 | 0 | 0 |
Commercial Realty & Resources Corp. [Member] | ' | ' | ' |
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' |
Area of land | 25.4 | ' | ' |
Pre-tax gain from sale of land | 313 | ' | ' |
Proceeds from sale of property, plant, and equipment | $6,000 | ' | ' |
Recovered_Sheet1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, DISPOSAL OF EQUIPMENT (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Accounting Policies [Abstract] | ' |
Loss on disposal of equipment | $766 |
Proceeds from insurance claim | $997 |
Recovered_Sheet2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, AVAILABLE FOR SALE SECURITIES (Details) (USD $) | 12 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Available-for-sale securities | $10,700,000 | [1] | $11,700,000 | [1] | ' |
Available-for-sale securities, gross unrealized gain (loss) | 8,100,000 | 9,100,000 | ' | ||
Total unrealized gains, net of tax | 4,800,000 | 5,400,000 | ' | ||
Proceeds from sale of available for sale securities | 0 | 482,000 | 0 | ||
Pre-tax gain realized | ' | 380,000 | ' | ||
Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Available-for-sale securities | 10,672,000 | [1] | 11,716,000 | [1] | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Available-for-sale securities | $10,672,000 | [1] | $11,716,000 | [1] | ' |
[1] | Included in other noncurrent assets on the Consolidated Balance Sheets. |
Recovered_Sheet3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, INVESTMENT IN EQUITY INVESTEES (Details) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Oct. 31, 2014 | Oct. 31, 2014 |
PennEast [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
Investor | PennEast [Member] | ||||
Investor | |||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Restricted cash and cash equivalents | $1 | $1.10 | ' | ' | ' |
Capital investment total cost | ' | ' | ' | 1,000 | ' |
Number of investors | ' | ' | 4 | ' | 6 |
Ownership interest, percent | ' | ' | ' | ' | 20.00% |
Asset impairment charges | $6.40 | ' | ' | ' | ' |
Recovered_Sheet4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RECEIVABLE BY SUBSIDIARY (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Billed | $189,970 | $240,281 | ||
Receivable by Susidiary Percentage | 100.00% | 100.00% | ||
Unbilled revenues | 7,231 | 7,429 | ||
NJRES [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Billed | 142,566 | 194,263 | ||
Receivable by Susidiary Percentage | 75.00% | 81.00% | ||
NJNG [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Billed | 41,281 | [1] | 43,045 | [1] |
Receivable by Susidiary Percentage | 22.00% | [1] | 18.00% | [1] |
NJRCEV [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Billed | 594 | 293 | ||
Receivable by Susidiary Percentage | 0.00% | 0.00% | ||
NJRHS and Other [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Billed | $5,529 | $2,680 | ||
Receivable by Susidiary Percentage | 3.00% | 1.00% | ||
[1] | Does not include unbilled revenues of $7.2 million and $7.4 million as of September 30, 2014 and 2013, respectively. |
Recovered_Sheet5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, LOAN RECEIVABLE (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | Minimum [Member] | Maximum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Loans receivable term | ' | ' | '2 years | '10 years |
Loans receivable in other current assets | $3.90 | $1.90 | ' | ' |
Loans receivable in other noncurrent assets | $27.30 | $14.30 | ' | ' |
Recovered_Sheet6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, DEFINED BENEFIT (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Number of noncontributory medical and life insurance plans | 2 | ' | ' |
Pension Plans Excluding Pension Equalization Plan, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Employer contributions | $0 | $20,000,000 | $20,000,000 |
OPEB [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Employer contributions | $4,970,000 | $5,977,000 | $5,800,000 |
Recovered_Sheet7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ||
Balance at beginning of period | ($1,621) | ($10,771) | ' | ||
Other comprehensive (loss), before reclassifications, net of tax of $426 $159, $3,334, $3,919 | -5,897 | 8,201 | ' | ||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(98), $(1,172), $(1,270) | 1,924 | 949 | ' | ||
Other comprehensive (loss) income | -3,973 | 9,150 | -167 | ||
Balance at end of period | -5,594 | -1,621 | -10,771 | ||
Tax on other comprehensive income before reclassifications | 3,919 | -5,593 | ' | ||
Tax on amounts reclassified from accumulated other comprehensive income | -1,270 | -648 | ' | ||
Tax on net current-period other comprehensive income | 2,649 | -6,241 | ' | ||
Unrealized Gain on Available for Sale Securities [Member] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ||
Balance at beginning of period | 5,400 | 4,921 | ' | ||
Other comprehensive (loss), before reclassifications, net of tax of $426 $159, $3,334, $3,919 | -618 | 703 | ' | ||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(98), $(1,172), $(1,270) | 0 | [1] | -224 | [1] | ' |
Other comprehensive (loss) income | -618 | 479 | ' | ||
Balance at end of period | 4,782 | 5,400 | ' | ||
Tax on other comprehensive income before reclassifications | 426 | -485 | ' | ||
Tax on amounts reclassified from accumulated other comprehensive income | 0 | 155 | ' | ||
Tax on net current-period other comprehensive income | 426 | -330 | ' | ||
Net Unrealized Gain on Derivatives [Member] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ||
Balance at beginning of period | 12 | 51 | ' | ||
Other comprehensive (loss), before reclassifications, net of tax of $426 $159, $3,334, $3,919 | -273 | -28 | ' | ||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(98), $(1,172), $(1,270) | 168 | [2] | -11 | [2] | ' |
Other comprehensive (loss) income | -105 | -39 | ' | ||
Balance at end of period | -93 | 12 | ' | ||
Tax on other comprehensive income before reclassifications | 159 | 16 | ' | ||
Tax on amounts reclassified from accumulated other comprehensive income | -98 | 7 | ' | ||
Tax on net current-period other comprehensive income | 61 | 23 | ' | ||
Adjustment to Postemployment Benefit Obligation [Member] | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ||
Balance at beginning of period | -7,033 | -15,743 | ' | ||
Other comprehensive (loss), before reclassifications, net of tax of $426 $159, $3,334, $3,919 | -5,006 | 7,526 | ' | ||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(98), $(1,172), $(1,270) | 1,756 | [3] | 1,184 | [3] | ' |
Other comprehensive (loss) income | -3,250 | 8,710 | ' | ||
Balance at end of period | -10,283 | -7,033 | ' | ||
Tax on other comprehensive income before reclassifications | 3,334 | -5,124 | ' | ||
Tax on amounts reclassified from accumulated other comprehensive income | -1,172 | -810 | ' | ||
Tax on net current-period other comprehensive income | $2,162 | ($5,934) | ' | ||
[1] | Reclassified to other income in the Consolidated Statements of Operations. | ||||
[2] | Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases in the Consolidated Statements of Operations. | ||||
[3] | Included in the computation of net periodic pension cost, a component of O&M expense in the Consolidated Statements of Operations. |
REGULATION_REGULATORY_ASSETS_A
REGULATION, REGULATORY ASSETS AND LIABILITIES (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets current | $26,862 | $34,372 |
Regulatory assets, noncurrent | 377,575 | 402,202 |
Regulatory liabilities, current | 6,072 | 1,456 |
Regulatory liability, noncurrent | 61,326 | 79,647 |
Conservation Incentive Program [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory liabilities, current | 5,752 | 0 |
Derivatives, Net, Current [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory liabilities, current | 320 | 1,456 |
Cost of Removal Obligation [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory liability, noncurrent | 61,163 | 79,315 |
Derivatives, Net, Noncurrent [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory liability, noncurrent | 57 | 0 |
Other Noncurrent Regulatory Liabilities [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory liability, noncurrent | 106 | 332 |
Underrecovered Gas Costs [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets current | 12,577 | 953 |
Conservation Incentive Program [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets current | 0 | 18,887 |
New Jersey Clean Energy Program [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets current | 14,285 | 14,532 |
Enviromental Remediation Costs Expended, Net of Recoveries [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets, noncurrent | 30,916 | 46,968 |
Enviromental Remediation Costs Liability for Future Expenditures [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets, noncurrent | 177,000 | 183,600 |
Deferred Income and Other Taxes [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets, noncurrent | 9,968 | 10,718 |
Derivatives, Net, Noncurrent [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets, noncurrent | 0 | 19 |
SAVEGREEN [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets, noncurrent | 29,180 | 30,004 |
Other Noncurrent Regulatory Assets [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets, noncurrent | 108,507 | 101,415 |
Deferred Superstorm Sandy Costs [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets, noncurrent | 15,207 | 14,822 |
Other Regulatory Asset Noncurrent [Member] | ' | ' |
Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets, noncurrent | $6,797 | $14,656 |
REGULATION_REGULATORY_FILINGS_
REGULATION, REGULATORY FILINGS (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 4 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2012 | Sep. 30, 2013 | Oct. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Oct. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Subsequent Event [Member] | Other Regulatory Asset Noncurrent [Member] | Other Regulatory Asset Noncurrent [Member] | Other Regulatory Asset Noncurrent, PIM [Member] | Storm Costs [Member] | Storm Costs [Member] | SAVEGREEN [Member] | SAVEGREEN [Member] | SAVEGREEN-Incentives [Member] | SAVEGREEN-Incentives [Member] | CIP [Member] | CIP [Member] | BGSS [Member] | BGSS [Member] | BGSS [Member] | AIP I and AIP II [Member] | AIP I [Member] | AIP II [Member] | SAFE-Safety Acceleration and Facility Enhancement Program [Member] | Compressed Natural Gas Vehicle Refueling Stations [Member] | NJ RISE Program [Member] | USF [Member] | USF [Member] | USF [Member] | SBC [Member] | SBC [Member] | New Jersey Clean Energy Program [Member] | New Jersey Clean Energy Program [Member] | New Jersey Clean Energy Program [Member] | New Jersey Clean Energy Program [Member] | New Jersey Clean Energy Program [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||||
June 2012 SAVEGREEN Filing [Member] | June 2012 SAVEGREEN Filing [Member] | Subsequent Event [Member] | project | June 2012 USF Filing [Member] | June 2013 USF Filing [Member] | Subsequent Event [Member] | July 2013 SBC Filing [Member] | September 2014 SBC Filing [Member] | July 2013 SBC Filing [Member] | September 2014 SBC Filing [Member] | SAVEGREEN [Member] | SAVEGREEN-Incentives [Member] | SAVEGREEN [Member] | SAVEGREEN-Incentives [Member] | ||||||||||||||||||||||||
June 2014 USF Filing [Member] | June 2012 SAVEGREEN Filing [Member] | June 2012 SAVEGREEN Filing [Member] | June 2012 SAVEGREEN Filing [Member] | June 2012 SAVEGREEN Filing [Member] | ||||||||||||||||||||||||||||||||||
Schedule of Regulatory [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Program recovery term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '2 years | '10 years | '10 years |
Regulatory asset, maximum amount to be recorded annually | ' | ' | ' | ' | $700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory asset, expense benchmark | ' | ' | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory assets, threshold of recording regulatory liability when net liability exceeds amount | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory assets, noncurrent | 377,575,000 | ' | 402,202,000 | ' | 6,797,000 | 14,656,000 | 3,800,000 | 15,207,000 | 14,822,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory liability, amortization period | '48 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Requested rate increase (decrease), percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1.00% | 2.40% | ' | ' | -4.30% | ' | ' | ' | ' | ' | ' | -0.10% | -0.50% | 0.40% | ' | ' | ' | ' | ' | 1.90% | ' | ' | ' | ' | ' |
Interim rate increase (decrease), percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5.20% | -6.00% | -5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total investment | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 148,700,000 | ' | ' | ' | 5,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in the RA factor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public utilities, approved equity capital structure, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.76% | 7.12% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Return on equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.30% | ' | ' | 9.75% | 10.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital investments approved by the Board of Public Utilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average cost of capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.90% | ' | ' | ' | ' | ' | ' | ' | ' | 6.90% | 7.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public utility annual rate for allowance for funds used during construction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of capital investment projects | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Originally filed petition for capital investments to Board of Public Utilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 102,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovery amount approved by the Board of Public Utilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85,000,000 | 93,100,000 | 17,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory costs approved | ' | 308,000 | ' | ' | ' | ' | ' | ' | ' | 52,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest-free loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in tariff rider rate approved by the Board of Public Utilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual recovery amount approved by the Board of Public Utilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of increase (decrease) for the average residential heating customer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approved rate, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Requested rate increase (decrease), percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Requested rate, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,500,000 | ' | ' | ' | ' | 16,300,000 | ' | ' | ' | ' |
Increase in regulatory funding obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,600,000 | 9,800,000 | 15,600,000 | ' | ' | ' | ' | ' | ' |
Debt instrument, term | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum issuance amount | $300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum maturity period | '30 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, renewal period | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DERIVATIVE_INSTRUMENTS_BALANCE
DERIVATIVE INSTRUMENTS, BALANCE SHEET RELATED DISCLOSURES (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Current | $64,223,000 | $53,327,000 |
Derivative Liabilities, Current | 79,863,000 | 40,390,000 |
Derivative Assets, Noncurrent | 5,654,000 | 2,761,000 |
Derivative Liabilities, Noncurrent | 6,690,000 | 2,458,000 |
Derivative Assets | 69,877,000 | 56,088,000 |
Derivative Liabilities | 86,553,000 | 42,848,000 |
Notional amount of foreign currency derivatives | 2,900,000 | ' |
Not Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 69,877,000 | 56,072,000 |
Derivative Liabilities | 86,398,000 | 42,843,000 |
Foreign Currency Contract [Member] | NJRES [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Current | 0 | 16,000 |
Derivative Liabilities, Current | 155,000 | 3,000 |
Derivative Assets, Noncurrent | 0 | 0 |
Derivative Liabilities, Noncurrent | 0 | 2,000 |
Derivative Assets | 0 | 16,000 |
Derivative Liabilities | 155,000 | 5,000 |
Financial Commodity Contracts [Member] | NJRES [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Current | 46,307,000 | 38,527,000 |
Derivative Liabilities, Current | 46,725,000 | 23,769,000 |
Derivative Assets, Noncurrent | 5,537,000 | 2,099,000 |
Derivative Liabilities, Noncurrent | 6,533,000 | 2,294,000 |
Financial Commodity Contracts [Member] | NJNG [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Current | 2,525,000 | 3,502,000 |
Derivative Liabilities, Current | 2,205,000 | 2,045,000 |
Derivative Assets, Noncurrent | 82,000 | 121,000 |
Derivative Liabilities, Noncurrent | 25,000 | 140,000 |
Physical Forward Commodity Contracts [Member] | NJRES [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Current | 15,391,000 | 11,282,000 |
Derivative Liabilities, Current | 30,778,000 | 14,573,000 |
Derivative Assets, Noncurrent | 35,000 | 541,000 |
Derivative Liabilities, Noncurrent | $132,000 | $22,000 |
DERIVATIVE_INSTRUMENTS_OFFSETT
DERIVATIVE INSTRUMENTS, OFFSETTING OF ASSETS AND LIABILITIES (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | ||
In Thousands, unless otherwise specified | ||||
NJRES [Member] | ' | ' | ||
Offsetting Derivative Assets [Abstract] | ' | ' | ||
Amounts Presented on the Balance Sheets, Derivative assets | $67,270 | [1] | $52,465 | [1] |
Offsetting Derivative Instruments, Derivative assets | -63,375 | [2] | -29,617 | [2] |
Financial Collateral Received/Pledged, Derivative assets | 0 | [3] | 6,770 | [3] |
Net Amounts, Derivative assets | 3,895 | [4] | 29,618 | [4] |
Offsetting Derivative Liabilities [Abstract] | ' | ' | ||
Amounts Presented in Balance Sheets, Derivative liabilities | 84,323 | [1] | 40,663 | [1] |
Offsetting Derivative Instruments, Derivative liabilities | -63,902 | [2] | -29,617 | [2] |
Financial Collateral Received/Pledged, Derivative liabilities | -2,614 | [3] | -500 | [3] |
Net Amounts, Derivative liabilities | 17,807 | [4] | 10,546 | [4] |
NJRES [Member] | Physical Forward Commodity Contracts [Member] | ' | ' | ||
Offsetting Derivative Assets [Abstract] | ' | ' | ||
Amounts Presented on the Balance Sheets, Derivative assets | 15,426 | [1] | 11,823 | [1] |
Offsetting Derivative Instruments, Derivative assets | -11,531 | [2] | -3,549 | [2] |
Financial Collateral Received/Pledged, Derivative assets | 0 | [3] | -100 | [3] |
Net Amounts, Derivative assets | 3,895 | [4] | 8,174 | [4] |
Offsetting Derivative Liabilities [Abstract] | ' | ' | ||
Amounts Presented in Balance Sheets, Derivative liabilities | 30,910 | [1] | 14,595 | [1] |
Offsetting Derivative Instruments, Derivative liabilities | -12,058 | [2] | -3,549 | [2] |
Financial Collateral Received/Pledged, Derivative liabilities | -1,200 | [3] | -500 | [3] |
Net Amounts, Derivative liabilities | 17,652 | [4] | 10,546 | [4] |
NJRES [Member] | Financial Commodity Contracts [Member] | ' | ' | ||
Offsetting Derivative Assets [Abstract] | ' | ' | ||
Amounts Presented on the Balance Sheets, Derivative assets | 51,844 | [1] | 40,626 | [1] |
Offsetting Derivative Instruments, Derivative assets | -51,844 | [2] | -26,063 | [2] |
Financial Collateral Received/Pledged, Derivative assets | 0 | [3] | 6,870 | [3] |
Net Amounts, Derivative assets | 0 | [4] | 21,433 | [4] |
Offsetting Derivative Liabilities [Abstract] | ' | ' | ||
Amounts Presented in Balance Sheets, Derivative liabilities | 53,258 | [1] | 26,063 | [1] |
Offsetting Derivative Instruments, Derivative liabilities | -51,844 | [2] | -26,063 | [2] |
Financial Collateral Received/Pledged, Derivative liabilities | -1,414 | [3] | 0 | [3] |
Net Amounts, Derivative liabilities | 0 | [4] | 0 | [4] |
NJRES [Member] | Foreign Currency Contract [Member] | ' | ' | ||
Offsetting Derivative Assets [Abstract] | ' | ' | ||
Amounts Presented on the Balance Sheets, Derivative assets | ' | 16 | [1] | |
Offsetting Derivative Instruments, Derivative assets | ' | -5 | [2] | |
Financial Collateral Received/Pledged, Derivative assets | ' | 0 | [3] | |
Net Amounts, Derivative assets | ' | 11 | [4] | |
Offsetting Derivative Liabilities [Abstract] | ' | ' | ||
Amounts Presented in Balance Sheets, Derivative liabilities | 155 | [1] | 5 | [1] |
Offsetting Derivative Instruments, Derivative liabilities | 0 | [2] | -5 | [2] |
Financial Collateral Received/Pledged, Derivative liabilities | 0 | [3] | 0 | [3] |
Net Amounts, Derivative liabilities | 155 | [4] | 0 | [4] |
NJNG [Member] | ' | ' | ||
Offsetting Derivative Liabilities [Abstract] | ' | ' | ||
Amounts Presented in Balance Sheets, Derivative liabilities | 2,230 | [1] | 2,185 | [1] |
Offsetting Derivative Instruments, Derivative liabilities | -2,230 | [2] | -2,185 | [2] |
Financial Collateral Received/Pledged, Derivative liabilities | 0 | [3] | 0 | [3] |
Net Amounts, Derivative liabilities | 0 | [4] | 0 | [4] |
NJNG [Member] | Financial Commodity Contracts [Member] | ' | ' | ||
Offsetting Derivative Assets [Abstract] | ' | ' | ||
Amounts Presented on the Balance Sheets, Derivative assets | 2,607 | [1] | 3,623 | [1] |
Offsetting Derivative Instruments, Derivative assets | -2,230 | [2] | -2,185 | [2] |
Financial Collateral Received/Pledged, Derivative assets | -377 | [3] | 214 | [3] |
Net Amounts, Derivative assets | $0 | [4] | $1,652 | [4] |
[1] | Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. | |||
[2] | Offsetting derivative instruments include: transactions with NAESB netting election, transactions held by FCM's with net margining and transactions with ISDA netting. | |||
[3] | Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties. | |||
[4] | Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20. |
DERIVATIVE_INSTRUMENTS_INCOME_
DERIVATIVE INSTRUMENTS, INCOME STATEMENT RELATED DISCLOSURES (Details) (USD $) | 12 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ||
Foreign currency cash flow hedge gain (loss) to be reclassified during next 12 months | ($155,000) | ' | ' | ||
Maximum date in foreign currency cash flow hedge | 30-Apr-15 | ' | ' | ||
Foreign Currency Contract [Member] | Gas Purchases [Member] | Cash Flow Hedging [Member] | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | -432,000 | [1] | -44,000 | [1] | ' |
Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) | 266,000 | -18,000 | ' | ||
Amount of Gain or (Loss) Recognized on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | ' | ||
NJRES [Member] | Nondesignated [Member] | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ||
Amount of gain (loss) recognized in income on derivatives | -251,696,000 | 25,106,000 | 87,652,000 | ||
NJRES [Member] | Physical Forward Commodity Contracts [Member] | Operating Revenues [Member] | Nondesignated [Member] | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ||
Amount of gain (loss) recognized in income on derivatives | -48,977,000 | 1,117,000 | -7,187,000 | ||
NJRES [Member] | Physical Forward Commodity Contracts [Member] | Gas Purchases [Member] | Nondesignated [Member] | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ||
Amount of gain (loss) recognized in income on derivatives | -83,847,000 | -17,194,000 | 12,967,000 | ||
NJRES [Member] | Financial Commodity Contracts [Member] | Gas Purchases [Member] | Nondesignated [Member] | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ||
Amount of gain (loss) recognized in income on derivatives | -118,872,000 | 41,183,000 | 81,872,000 | ||
NJNG [Member] | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ||
Derivative instruments gain (loss) recognized in regulatory assets and liabilities, net | $10,100,000 | $1,800,000 | ($25,300,000) | ||
[1] | The settlement of foreign currency transactions over the next 12 months is expected to result in the reclassification of $(155,000) from OCI into earnings. The maximum tenor is April 2015. |
DERIVATIVE_INSTRUMENTS_VOLUME_
DERIVATIVE INSTRUMENTS, VOLUME (Details) | Sep. 30, 2014 | Sep. 30, 2013 |
MMcf | MMcf | |
NJNG [Member] | Futures [Member] | Long Position [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Outstanding long (short) derivatives | 17,300 | 22,600 |
NJRES [Member] | Futures [Member] | Short Position [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Outstanding long (short) derivatives | 62,100 | 64,200 |
NJRES [Member] | Options [Member] | Long Position [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Outstanding long (short) derivatives | 1,200 | 1,500 |
NJRES [Member] | Physical Forward Commodity Contracts [Member] | Long Position [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Outstanding long (short) derivatives | 28,600 | 7,300 |
DERIVATIVE_INSTRUMENTS_BROKER_
DERIVATIVE INSTRUMENTS, BROKER MARGIN DEPOSITS (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Restricted broker margin accounts | $27,339 | $6,581 |
Broker Margin, Current Assets [Member] | NJNG [Member] | ' | ' |
Restricted broker margin accounts | 1,057 | 213 |
Broker Margin, Current Assets [Member] | NJRES [Member] | ' | ' |
Restricted broker margin accounts | $26,282 | $6,368 |
DERIVATIVE_INSTRUMENTS_CREDIT_
DERIVATIVE INSTRUMENTS, CREDIT RISK EXPOSURE (Details) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
Oct. 24, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Nov. 03, 2011 | Sep. 30, 2012 | |
External Credit Rating, Investment Grade [Member] | External Credit Rating, Non Investment Grade [Member] | Internally Rated Investment Grade [Member] | Internally Rated Noninvestment Grade [Member] | NJRES [Member] | NJRES [Member] | NJRES [Member] | ||||
CHICAGO MERCANTILE EXCHANGE [Member] | ||||||||||
Credit Risk Exposure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross credit exposure | ' | $168,232,000 | ' | $143,070,000 | $6,462,000 | $9,334,000 | $9,366,000 | ' | ' | ' |
Derivative, net liability position, aggregate fair value | ' | 39,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' |
Additional collateral, aggregate fair value | ' | 7,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ' |
Other receivables from broker-dealers and clearing organizations | 18,500,000 | ' | ' | ' | ' | ' | ' | ' | 27,800,000 | ' |
Cash distributions received from claim allowed in liquidation proceedings | 17,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | 9,300,000 |
Allowance for doubtful accounts receivable | ' | ' | ' | ' | ' | ' | ' | $1,400,000 | ' | ' |
FAIR_VALUE_DEBT_Details
FAIR VALUE, DEBT (Details) (Fair Value, Inputs, Level 2 [Member], USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
NJNG [Member] | Carrying Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, fair value | $432,845 | $379,845 |
NJNG [Member] | Fair Market Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, fair value | 453,773 | 397,175 |
NJR [Member] | Carrying Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, fair value | 125,000 | 150,000 |
NJR [Member] | Fair Market Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, fair value | $133,136 | $159,343 |
FAIR_VALUE_HIERARCHY_Details
FAIR VALUE, HIERARCHY (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | ||
In Thousands, unless otherwise specified | ||||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative assets | $69,877 | $56,088 | ||
Available-for-sale securities | 10,700 | [1] | 11,700 | [1] |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative liabilities | 86,553 | 42,848 | ||
Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Available-for-sale securities | 10,672 | [1] | 11,716 | [1] |
Other | 1,299 | [2] | 1,129 | [2] |
Total assets at fair value | 81,848 | 68,933 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Total liabilities at fair value | 86,553 | 42,848 | ||
Fair Value, Measurements, Recurring [Member] | Physical Forward Commodity Contracts [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative assets | 15,426 | 11,823 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative liabilities | 30,910 | 14,595 | ||
Fair Value, Measurements, Recurring [Member] | Financial Commodity Contracts - Natural Gas [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative assets | 54,451 | 44,249 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative liabilities | 55,488 | 28,248 | ||
Fair Value, Measurements, Recurring [Member] | Foreign Currency Contract [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative assets | ' | 16 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative liabilities | 155 | 5 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Available-for-sale securities | 10,672 | [1] | 11,716 | [1] |
Other | 1,299 | [2] | 1,129 | [2] |
Total assets at fair value | 66,422 | 57,094 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Total liabilities at fair value | 55,488 | 28,248 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Physical Forward Commodity Contracts [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative assets | 0 | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Financial Commodity Contracts - Natural Gas [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative assets | 54,451 | 44,249 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative liabilities | 55,488 | 28,248 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign Currency Contract [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative assets | ' | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Available-for-sale securities | 0 | [1] | 0 | [1] |
Other | 0 | [2] | 0 | [2] |
Total assets at fair value | 15,426 | 11,839 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Total liabilities at fair value | 31,065 | 14,600 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Physical Forward Commodity Contracts [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative assets | 15,426 | 11,823 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative liabilities | 30,910 | 14,595 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Financial Commodity Contracts - Natural Gas [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative assets | 0 | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Currency Contract [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative assets | ' | 16 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative liabilities | 155 | 5 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Available-for-sale securities | 0 | [1] | 0 | [1] |
Other | 0 | [2] | 0 | [2] |
Total assets at fair value | 0 | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Total liabilities at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Physical Forward Commodity Contracts [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative assets | 0 | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Financial Commodity Contracts - Natural Gas [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative assets | 0 | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Foreign Currency Contract [Member] | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative assets | ' | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ||
Derivative liabilities | $0 | $0 | ||
[1] | Included in other noncurrent assets on the Consolidated Balance Sheets. | |||
[2] | Includes various money market funds in Level 1. |
INVESTMENTS_IN_EQUITY_INVESTEE2
INVESTMENTS IN EQUITY INVESTEES, EQUITY METHOD INVESTMENTS (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Investments in equity investees | $153,010,000 | $152,791,000 | ||
Steckman Ridge [Member] | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Investments in equity investees | 128,413,000 | [1] | 129,707,000 | [1] |
Steckman Ridge [Member] | Equity Method Investee [Member] | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Outstanding principal balance | 70,400,000 | 70,400,000 | ||
Iroquois [Member] | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Investments in equity investees | 24,042,000 | 23,084,000 | ||
PennEast [Member] | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Investments in equity investees | $555,000 | $0 | ||
[1] | Includes loans with a total outstanding principal balance of $70.4 million for both fiscal 2014 and 2013, which accrue interest at a variable rate that resets quarterly and are due October 1, 2023. |
INVESTMENTS_IN_EQUITY_INVESTEE3
INVESTMENTS IN EQUITY INVESTEES, COST METHOD INVESTMENTS (Details) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Oct. 09, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2012 | Sep. 30, 2014 | Oct. 31, 2014 | |
Wind Purchase Option [Member] | Alexander Wind Project in Kansas [Member] | Carroll Wind Project in Iowa [Member] | Two Dot Wind Project in Montana [Member] | OwnEnergy [Member] | PennEast [Member] | PennEast [Member] | |||
Subsequent Event [Member] | MWh | MWh | Investor | Subsequent Event [Member] | |||||
MWh | mi | Investor | |||||||
Schedule of Cost-method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of other investors which formed PennEast | ' | ' | ' | ' | ' | ' | ' | 4 | 6 |
Construction plan, pipeline distance (in miles) | ' | ' | ' | ' | ' | ' | ' | 108 | ' |
Cost method investments | ' | ' | ' | ' | ' | ' | $8,800,000 | ' | ' |
Cost method investment, ownership percentage | ' | ' | ' | ' | ' | ' | 18.70% | ' | ' |
Number of megawatts of the wind project | ' | ' | ' | 48 | 20 | 9.7 | ' | ' | ' |
Solar and wind equipment, real estate properties and other, at cost | 347,285,000 | 249,516,000 | -2,400,000 | ' | ' | ' | ' | ' | ' |
Asset impairment loss | 6,400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Asset impairment loss, after tax | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Development project costs | ' | ' | ' | $85,000,000 | $42,000,000 | $21,200,000 | ' | ' | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income, as reported | ($24,420) | ($14,274) | $172,971 | $7,693 | ($20,021) | $29,155 | $45,469 | $60,206 | $141,970 | $114,809 | $92,879 | |||
Basic earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted average shares of common stock outstanding-basic | ' | ' | ' | ' | ' | ' | ' | ' | 42,099,000 | 41,658,000 | 41,527,000 | |||
Basic earnings per common share (in usd per share) | ($0.58) | ($0.34) | $4.11 | $0.18 | ($0.48) | $0.70 | $1.09 | $1.44 | $3.37 | $2.76 | $2.24 | |||
Diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted average shares of common stock outstanding-basic | ' | ' | ' | ' | ' | ' | ' | ' | 42,099,000 | 41,658,000 | 41,527,000 | |||
Incremental shares | ' | ' | ' | ' | ' | ' | ' | ' | 362,000 | [1] | 156,000 | [1] | 105,000 | [1] |
Weighted average shares of common stock outstanding-diluted | ' | ' | ' | ' | ' | ' | ' | ' | 42,461,000 | 41,814,000 | 41,632,000 | |||
Diluted earnings per common share (in usd per share) | ($0.58) | ($0.34) | $4.07 | $0.18 | ($0.48) | $0.70 | $1.08 | $1.44 | $3.34 | [2] | $2.75 | [2] | $2.23 | [2] |
Anti-dilutive securities excluded from the calculation of diluted earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||
[1] | Incremental shares consist of stock options, stock awards and performance units. | |||||||||||||
[2] | There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2014, 2013 and 2012. |
DEBT_SCHEDULE_OF_LONG_TERM_DEB
DEBT, SCHEDULE OF LONG TERM DEBT (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | |
First Mortgage [Member] | Debt, Auction Rate Securities [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | ||||
Unsecured Debt [Member] | Unsecured Debt [Member] | Variable Demand Rate Notes [Member] | Variable Demand Rate Notes [Member] | Variable Demand Rate Notes [Member] | Series HH [Member] | Series HH [Member] | Series II [Member] | Series II [Member] | Series JJ [Member] | Series JJ [Member] | Series KK [Member] | Series KK [Member] | Series LL [Member] | Series LL [Member] | Series MM [Member] | Series MM [Member] | Series NN [Member] | Series NN [Member] | Series OO [Member] | Series OO [Member] | Series PP [Member] | Series PP [Member] | Series, QQ [Member] | Series, QQ [Member] | Series, RR [Member] | Series, RR [Member] | Capital lease obligation-Buildings [Member] | Capital lease obligation-Buildings [Member] | Capital lease obligation-Meters [Member] | Capital lease obligation-Meters [Member] | Capital lease obligation-Equipment [Member] | Capital lease obligation-Equipment [Member] | Private Placement [Member] | Unsecured Debt [Member] | Unsecured senior notes 6.05% [Member] | Unsecured senior notes 6.05% [Member] | Unsecured senior note 1.94% [Member] | Unsecured senior note 1.94% [Member] | Unsecured senior note 2.51% [Member] | Unsecured senior note 2.51% [Member] | Unsecured senior note 3.25% [Member] | Unsecured senior note 3.25% [Member] | Unsecured senior note 3.48% [Member] | Debt Shelf Facility Prudential [Member] | Debt Shelf Facility Prudential [Member] | |||||||||||
Base Rate [Member] | LIBOR [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | First Mortgage [Member] | Capital Lease Obligations [Member] | Capital Lease Obligations [Member] | Capital Lease Obligations [Member] | Capital Lease Obligations [Member] | Capital Lease Obligations [Member] | Capital Lease Obligations [Member] | First Mortgage [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000,000 | $75,000,000 |
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 60,000,000 | ' | ' | ' | 0 | 12,000,000 | 10,300,000 | 10,300,000 | 10,500,000 | 10,500,000 | 15,000,000 | 15,000,000 | 125,000,000 | 125,000,000 | 9,545,000 | 9,545,000 | 41,000,000 | 41,000,000 | 46,500,000 | 46,500,000 | 50,000,000 | 50,000,000 | 70,000,000 | 0 | 55,000,000 | 0 | 18,726,000 | 20,381,000 | 31,143,000 | 31,261,000 | 0 | 42,000 | ' | ' | ' | ' | 50,000,000 | 50,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | 50,000,000 | 50,000,000 | 100,000,000 | ' | ' |
Less: Current maturities of long-term debt | ' | ' | ' | ' | ' | -9,505,000 | -68,643,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -25,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | 598,209,000 | 512,886,000 | ' | ' | ' | 473,209,000 | 362,886,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000,000 | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 4.77% | ' | ' | ' | ' | 5.00% | ' | 4.50% | ' | 4.60% | ' | 4.90% | ' | 5.60% | ' | ' | ' | ' | ' | ' | ' | 3.15% | ' | 3.58% | ' | 4.61% | ' | ' | ' | ' | ' | ' | ' | 4.77% | ' | ' | 6.05% | ' | ' | 1.94% | ' | 2.51% | ' | 3.25% | ' | 3.48% | ' | ' |
Interest rate term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Variable | ' | 'Variable | ' | 'Variable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | ' | ' | ' | ' | ' | 125,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2019 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | ' | ' | ' | ' | ' | 307,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NJBPU dividend restriction, equity to capitalization ratio | 0.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt to equity ratio | 0.509 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unused Borrowing Capacity | ' | ' | ' | 841,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from long-term debt | 125,000,000 | 50,000,000 | 100,000,000 | ' | 97,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest accrual period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.55% | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum daily rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on EDA Bonds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.66% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of long-term debt | 82,586,000 | 8,953,000 | 8,025,000 | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of first mortgage bonds | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale leaseback transaction, lease term | ' | ' | ' | ' | ' | '25 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale leaseback transaction, lease renewal term | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale leaseback transaction, maximum lease renewal term | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale-leaseback transaction | 7,576,000 | 7,076,000 | 6,522,000 | ' | ' | 7,600,000 | 7,100,000 | 6,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale leaseback transaction, other payments required | ' | ' | ' | ' | ' | 956,000 | 752,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Present Value of Future Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2019 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subtotal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: interest component | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -8,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $49,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DEBT_CREDIT_FACILITIES_Details
DEBT, CREDIT FACILITIES (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 26, 2013 | Sep. 30, 2014 | Sep. 26, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Jan. 24, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Oct. 24, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | |||||||||||
NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJR [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | NJNG [Member] | |||||||||||||
Unsecured senior note 3.25% [Member] | Unsecured senior note 3.25% [Member] | Unsecured senior note 1.94% [Member] | Unsecured senior note 1.94% [Member] | Unsecured senior note 2.51% [Member] | Unsecured senior note 2.51% [Member] | Unsecured senior notes [Member] | Letter of Credit [Member] | Letter of Credit [Member] | Letters of Credit on Behalf of NJRES [Member] | Letter of Credit on Behalf of NJRCEV [Member] | Unsecured Private Placement, Debt Shell Facility [Member] | Debt Shelf Facility MetLife [Member] | Debt Shelf Facility MetLife [Member] | Debt Shelf Facility MetLife [Member] | Debt Shelf Facility Prudential [Member] | Debt Shelf Facility Prudential [Member] | Bank Credit Facilities Short term [Member] | Bank Credit Facilities Short term [Member] | JPMC Term Loan [Member] | JPMC Term Loan [Member] | JPMC Term Loan [Member] | Commercial Paper [Member] | Commercial Paper [Member] | Letter of Credit [Member] | Letter of Credit [Member] | Bank Credit Facilities Short term [Member] | Bank Credit Facilities Short term [Member] | Bank Credit Facilities, Santander Bank [Member] | Bank Credit Facilities, EDA Bonds [Member] | Bank Credit Facilities, EDA Bonds [Member] | |||||||||||||
debt_instrument | debt_instrument | debt_instrument | debt_instrument | debt_instrument | debt_instrument | Subsequent Event [Member] | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Line of credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | [1],[2] | $10,000,000 | [1],[2] | ' | ' | ' | ' | $100,000,000 | $100,000,000 | $100,000,000 | $75,000,000 | $425,000,000 | [3] | $325,000,000 | [3] | ' | ' | ' | ' | ' | ' | ' | $250,000,000 | [3] | $250,000,000 | [3] | $100,000,000 | $100,000,000 | [1],[3] | $0 | [1],[3] | ||
Line of credit facility, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 148,000,000 | 97,000,000 | 100,000,000 | 0 | ' | 153,000,000 | 168,600,000 | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Weighted average interest rate at end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.08% | 1.00% | 0.74% | 0.00% | ' | 0.12% | 0.13% | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Amount available at end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 256,484,000 | [4] | 210,110,000 | [4] | 0 | 0 | ' | 96,269,000 | [5] | 81,400,000 | [5] | ' | ' | ' | ' | ' | ' | ' | ||||||
Bank term loan | 301,000,000 | 365,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | 0 | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Letters of credit outstanding, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,500,000 | 17,900,000 | 15,000,000 | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 731,000 | 266,000 | ' | ' | ' | ' | ' | ||||||||||
Number of debt instruments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 6 | ' | 1 | 5 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ||||||||||
Debt instrument, issuance period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Long-term debt | ' | ' | 50,000,000 | 50,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Stated interest rate | ' | ' | 3.25% | ' | 1.94% | ' | 2.51% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Debt instrument, term | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | '4 years | ' | ||||||||||
Line of credit facility, maximum borrowing capacity, incremental increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ||||||||||
Line of credit facility, maximum borrowing capacity, maximum increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | ' | ' | ' | ||||||||||
[1] | There were no borrowings outstanding as of September 30, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||||||||||||
[2] | Uncommitted, expired on June 5, 2014. | ||||||||||||||||||||||||||||||||||||||||||
[3] | Committed credit facilities, which require commitment fees on the unused amounts. | ||||||||||||||||||||||||||||||||||||||||||
[4] | Letters of credit outstanding total $20.5 million and $17.9 million as of September 30, 2014 and 2013, respectively, which reduces amount available by the same amount. | ||||||||||||||||||||||||||||||||||||||||||
[5] | Letters of credit outstanding total $731,000 and $266,000 as of September 30, 2014 and 2013, respectively, which reduces amount available by the same amount. |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2012 | Nov. 12, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 12, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||
Employee [Member] | Director [Member] | Scheduled to Vest Immediately [Member] | Scheduled to Vest Immediately [Member] | Scheduled to Vest Immediately [Member] | Range 1 [Member] | Performance Shares, Market Condition Award [Member] | Performance Shares, Market Condition Award [Member] | Performance Shares, Subject to Performance Conditions [Member] | Performance Shares, Subject to Performance Conditions [Member] | Performance Shares, Subject to Performance Conditions [Member] | Performance Shares, Subject to Performance Conditions [Member] | Performance Shares, Subject to Performance Conditions [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares, Performance and Market Condition Awards [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Deferred Retention Stock [Member] | Deferred Retention Stock [Member] | Deferred Retention Stock [Member] | Restricted Stock and Non-Restricted Stock [Member] | Restricted Stock and Non-Restricted Stock [Member] | Restricted Stock and Non-Restricted Stock [Member] | |||||||||||
Director [Member] | Director [Member] | Director [Member] | Vesting September 2016 [Member] | Subsequent Event [Member] | Vesting September 2016 [Member] | Vesting annually over a three year period beginning in September 2014 [Member] | Subsequent Event [Member] | Minimum [Member] | Maximum [Member] | Vesting May 2015 [Member] | Vesting September 2015 [Member] | Vesting annually over a three year period beginning in October 2014 [Member] | Vesting October 2014 [Member] | Vesting October 2014 [Member] | ||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Shares available for future issuance | ' | ' | ' | 1,596,316 | 28,897 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Deferred compensation related to unvested restricted and performance shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,200 | ' | ' | ' | ' | ' | ' | ' | ' | $576 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Deferred compensation related to unvested performance shares, period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Stock-based compensation | 17,816 | 3,456 | 5,371 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,509 | 1,049 | 1,276 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,643 | 1,326 | 2,733 | 1,664 | 1,081 | 1,362 | |||||||
Income tax benefit | -7,278 | -1,412 | -2,194 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Total, net of tax | 10,538 | 2,044 | 3,177 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Summary of Stock Option Activity, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Beginning, Shares | 66,625 | 81,625 | 109,763 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Granted, Shares | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Exercised, Shares | -42,500 | -15,000 | -28,138 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Forfeited, Shares | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Ending, Shares | 24,125 | 66,625 | 81,625 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Summary of Stock Option Activity, Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Beginning (in usd per share) | $29.53 | $28.71 | $27.84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Granted (in usd per share) | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Exercised (in usd per share) | $26.26 | $25.08 | $25.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Forfeited (in usd per share) | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Ending (in usd per share) | $30 | $29.53 | $28.71 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Options, Oustanding and Exercisable | 24,125 | 66,625 | 81,625 | ' | ' | ' | ' | ' | 24,125 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Options, Outstanding and Exercisable, Weighted Average Remaining Contractual Term (in years) | ' | ' | ' | ' | ' | ' | ' | ' | '7 months 14 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Options, Outstanding and Exercisable, Weighted Average Exercise Price (in usd per share) | $30 | $29.53 | $28.71 | ' | ' | ' | ' | ' | $30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Options, Outstanding and Exercisable, Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | 495 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Options, Outstanding and Exercisable, Lower Exercie Price Range (in usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | $28.65 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Options, Outstanding and Exercisable, Upper Exercie Price Range (in usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | $30.37 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Proceeds from exercise of stock options | 1,200 | 376 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Summary of Performance Shares, Restricted Stock Activity and Deferred Retention Stock, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Beginning, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 78,322 | [1] | 84,743 | [1] | 106,027 | [1] | ' | ' | ' | ' | ' | ' | 39,255 | 59,346 | 77,097 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Beginning, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 111,793 | 49,171 | 106,730 | ' | ' | ' | |||||||
Granted, Shares | ' | ' | ' | ' | ' | 15,848 | 16,262 | 10,800 | ' | ' | 34,577 | [1] | 39,287 | [1] | ' | ' | ' | ' | 73,864 | [1] | ' | ' | ' | ' | ' | 28,418 | [1] | 49,904 | [1] | ' | 16,678 | 2,139 | 1,929 | 16,678 | 2,139 | 1,929 | 28,985 | 67,295 | 49,171 | ' | ' | ' | ||
Vested, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -28,418 | [1],[2] | 0 | [1] | -49,702 | [1],[3] | ' | ' | ' | ' | ' | ' | -34,230 | -19,680 | -19,680 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Delivered, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -103,903 | ' | ' | ' | |||||||
Cancelled/forfeited, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | -56,325 | [1],[4] | 0 | [1] | ' | ' | ' | ' | ' | ' | -958 | -2,550 | 0 | ' | ' | ' | -2,387 | -4,673 | -2,827 | ' | ' | ' | ||||
Ending, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 123,768 | [1] | 78,322 | [1] | 84,743 | [1] | ' | ' | ' | ' | ' | ' | 20,745 | 39,255 | 59,346 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Ending, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 138,391 | 111,793 | 49,171 | ' | ' | ' | |||||||
Summary of Performance Shares, Restricted Stock Activity and Deferred Retention Stock, Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Outstanding at beginning of period (in usd per share) | $36.70 | $33.26 | $28.04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $41.05 | $40.40 | $39.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Outstanding at beginning of period (in usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $43.38 | $47.17 | $35.37 | ' | ' | ' | |||||||
Granted (in usd per share) | $40.55 | $30.74 | $47.17 | ' | ' | $44.80 | $39.97 | $48.18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $45.56 | $40.62 | $47.17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Vested (in usd per share) | $47.17 | $0 | $30.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40.74 | $39.10 | $39.10 | ' | ' | ' | $45.75 | $40.62 | $47.17 | ' | ' | ' | |||||||
Delivered (in usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $35.37 | ' | ' | ' | |||||||
Cancelled/forfeited (in usd per share) | $0 | $26.24 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40.74 | $40.74 | $0 | ' | ' | ' | $42.94 | $43.44 | $35.37 | ' | ' | ' | |||||||
Outstanding at end of period (in usd per share) | $36.59 | $36.70 | $33.26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $45.20 | $41.05 | $40.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Outstanding at end of period (in usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $43.89 | $43.38 | $47.17 | ' | ' | ' | |||||||
Total Fair Value of Vested Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,534 | 888 | 879 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Delivered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,787 | ' | ' | ' | |||||||
Percent of awards to common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% | ' | ' | 68.80% | 150.00% | ' | ' | ' | ' | ' | ' | 0.00% | 150.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Number of common shared issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,095 | ' | ' | 15,427 | 42,627 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Percent of awards to common stock, target | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Number of shares granted and expected to be distributed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,240 | 14,047 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Amount of expense to be recognized | ' | ' | ' | ' | $177 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
[1] | The number of common shares issued related to 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 11, 2014, the number of common shares related to performance shares earned was 150 percent, or 42,627 shares, excluding accumulated dividends. The number represented on this line is the target number of 100 percent. See footnote (1) above. | |||||||||||||||||||||||||||||||||||||||||||
[3] | As certified by the Company's Leadership and Compensation Committee on November 13, 2012, the number of common shares related to performance shares and market condition shares earned was 68.8 percent , or 15,427 shares and 70 percent, or 19,095 shares, respectively. The number represented on this line is the target number of 100 percent. See footnote (1) above. | |||||||||||||||||||||||||||||||||||||||||||
[4] | As certified by the Company's Leadership and Compensation Committee on November 12, 2013, the number of common shares granted in fiscal 2011 related to performance shares and market condition shares earned was zero. The number represented on this line is the target number of 100 percent. See footnote (1) above. |
EMPLOYEE_BENEFIT_PLANS_DEFINED
EMPLOYEE BENEFIT PLANS, DEFINED BENEFIT PLANS (Details) (USD $) | 12 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Pension and postemployment benefit costs | $3,500,000 | ' | ' | |||
Other special termination benefits | 1,500,000 | ' | ' | |||
Change in Benefit Obligation [Roll Forward] | ' | ' | ' | |||
Special termination benefits | 5,000,000 | ' | ' | |||
Amounts recognized on Consolidated Balance Sheets, Postemployment benefit liability | ' | ' | ' | |||
Non-current | -86,674,000 | -67,897,000 | ' | |||
Amounts Recognized in Regulatory Assets and Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | |||
Regulatory costs approved | ' | ' | 308,000 | |||
Components of net periodic cost | ' | ' | ' | |||
Special termination benefit | 5,000,000 | ' | ' | |||
Information relating to the assumed health care cost trend rate (HCCTR) | ' | ' | ' | |||
Desired rate of return before permissible expense after inflation | 6.00% | ' | ' | |||
Target allocations | ' | ' | ' | |||
2015 Target Allocation | 100.00% | ' | ' | |||
Assets at September 30 | 100.00% | 100.00% | ' | |||
US Equity Securities [Member] | ' | ' | ' | |||
Target allocations | ' | ' | ' | |||
2015 Target Allocation | 40.00% | ' | ' | |||
Assets at September 30 | 39.00% | 42.00% | ' | |||
International Securities [Member] | ' | ' | ' | |||
Target allocations | ' | ' | ' | |||
2015 Target Allocation | 20.00% | ' | ' | |||
Assets at September 30 | 20.00% | 22.00% | ' | |||
Fixed Income Securities [Member] | ' | ' | ' | |||
Target allocations | ' | ' | ' | |||
2015 Target Allocation | 40.00% | ' | ' | |||
Assets at September 30 | 41.00% | 36.00% | ' | |||
Pension [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Employer discretionary contributions | 0 | 20,000,000 | ' | |||
Change in Benefit Obligation [Roll Forward] | ' | ' | ' | |||
Benefit obligation at beginning of year | 198,826,000 | [1] | 211,136,000 | [1] | ' | |
Service cost | 6,143,000 | [1] | 6,871,000 | [1] | 5,375,000 | |
Interest cost | 10,066,000 | [1] | 8,942,000 | [1] | 8,825,000 | |
Plan participants' contributions | 47,000 | [1] | 49,000 | [1] | ' | |
Special termination benefits | 2,814,000 | [1] | 0 | [1] | 0 | |
Actuarial (gain) loss | 21,440,000 | [1] | -22,288,000 | [1] | ' | |
Benefits paid, net of retiree subsidies received | -11,637,000 | [1] | -5,884,000 | [1] | ' | |
Benefit obligation at end of year | 227,699,000 | [1] | 198,826,000 | [1] | 211,136,000 | [1] |
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at beginning of year | 200,236,000 | [1] | 166,664,000 | [1] | ' | |
Actual return on plan assets | 22,923,000 | [1] | 19,323,000 | [1] | ' | |
Employer contributions | 85,000 | [1] | 20,083,000 | [1] | ' | |
Benefits paid, net of plan participants' contributions | -11,591,000 | [1] | -5,834,000 | [1] | ' | |
Fair value of plan asset at end of year | 211,653,000 | [1] | 200,236,000 | [1] | 166,664,000 | [1] |
Funded status | -16,046,000 | [1] | 1,410,000 | [1] | ' | |
Amounts recognized on Consolidated Balance Sheets, Postemployment benefit liability | ' | ' | ' | |||
Current | -100,000 | [1] | -96,000 | [1] | ' | |
Non-current | -15,946,000 | [1] | 1,506,000 | [1] | ' | |
Total | -16,046,000 | [1] | 1,410,000 | [1] | ' | |
Amounts Recognized in Regulatory Assets and Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | |||
Amounts amortized to net periodic costs, Net actuarial (loss) gain | -5,596,000 | -7,646,000 | -5,015,000 | |||
Prior service (cost) credit | -111,000 | -108,000 | -46,000 | |||
Net transition obligation | 0 | 0 | 0 | |||
Amounts included in regulatory assets and accumulated other comprehensive income | ' | ' | ' | |||
Net actuarial loss, Regulatory Assets | 5,305,000 | ' | ' | |||
Prior service cost (credit), Regulatory Assets | 108,000 | ' | ' | |||
Total, Regulatory Assets | 5,413,000 | ' | ' | |||
Net actuarial loss, Accumulated Other Comprehensive Income (Loss) | 1,680,000 | ' | ' | |||
Prior service cost (credit), Accumulated Other Comprehensive Income (Loss) | 3,000 | ' | ' | |||
Total, Accumulated Other Comprehensive Income (Loss) | 1,683,000 | ' | ' | |||
Accumulated benefit obligation in excess of the fair value of plan assets | ' | ' | ' | |||
Projected benefit obligation | 227,699,000 | 198,826,000 | ' | |||
Accumulated benefit obligation | 198,058,000 | 176,172,000 | ' | |||
Fair value of plan assets | 211,653,000 | 200,236,000 | ' | |||
Components of net periodic cost | ' | ' | ' | |||
Service cost | 6,143,000 | [1] | 6,871,000 | [1] | 5,375,000 | |
Interest cost | 10,066,000 | [1] | 8,942,000 | [1] | 8,825,000 | |
Expected return on plan assets | -15,475,000 | -14,825,000 | -12,685,000 | |||
Recognized actuarial loss | 5,596,000 | 7,646,000 | 5,015,000 | |||
Prior service (cost) credit | 111,000 | 108,000 | 46,000 | |||
Recognized net initial obligation | 0 | 0 | 0 | |||
Net periodic cost | 6,441,000 | 8,742,000 | 6,576,000 | |||
Special termination benefit | 2,814,000 | [1] | 0 | [1] | 0 | |
Net periodic benefit cost recognized as expense | 9,255,000 | 8,742,000 | 6,576,000 | |||
Weighted average assumptions used to determine benefit costs | ' | ' | ' | |||
Discount rate | 5.15% | 4.30% | 5.25% | |||
Expected asset return | 8.25% | 8.50% | 8.25% | |||
Compensation increase | 3.25% | 3.25% | 3.25% | |||
Weighted average assumptions used to determine obligations | ' | ' | ' | |||
Discount rate | 4.55% | 5.15% | 4.30% | |||
Compensation increase | ' | 3.25% | 3.25% | |||
Estimated future benefit payments | ' | ' | ' | |||
2015 | 7,176,000 | ' | ' | |||
2016 | 8,102,000 | ' | ' | |||
2017 | 8,513,000 | ' | ' | |||
2018 | 9,309,000 | ' | ' | |||
2019 | 10,017,000 | ' | ' | |||
2020 - 2024 | 62,977,000 | ' | ' | |||
Pension [Member] | Regulatory Assets [Member] | ' | ' | ' | |||
Amounts Recognized in Regulatory Assets and Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | |||
Beginning, Regulatory Assets | 56,664,000 | [2] | 80,449,000 | ' | ||
Amounts arising during the period, Net actuarial loss (gain) | 10,563,000 | -17,961,000 | ' | |||
Amounts amortized to net periodic costs, Net actuarial (loss) gain | -5,326,000 | -5,719,000 | ' | |||
Prior service (cost) credit | -107,000 | -105,000 | ' | |||
Net transition obligation | 0 | 0 | ' | |||
Net actuarial loss (gain) | 60,797,000 | 55,559,000 | ' | |||
Prior service cost (credit) | 997,000 | 1,105,000 | ' | |||
Net transition obligation | 0 | 0 | ' | |||
Ending, Regulatory Assets | 61,794,000 | 56,664,000 | [2] | ' | ||
Components of net periodic cost | ' | ' | ' | |||
Recognized actuarial loss | 5,326,000 | 5,719,000 | ' | |||
Prior service (cost) credit | 107,000 | 105,000 | ' | |||
Recognized net initial obligation | 0 | 0 | ' | |||
Pension [Member] | Accumulated Other Comprehensive Income, Location [Member] | ' | ' | ' | |||
Amounts Recognized in Regulatory Assets and Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | |||
Beginning, Accumulated Other Comprehensive Income (Loss) | 14,427,000 | 25,183,000 | ' | |||
Amounts arising during the period, Net actuarial loss (gain) | 6,243,000 | -8,826,000 | ' | |||
Amounts amortized to net periodic costs, Net actuarial (loss) gain | -3,085,000 | -1,927,000 | ' | |||
Prior service (cost) credit | -4,000 | -3,000 | ' | |||
Net transition obligation | 0 | 0 | ' | |||
Net actuarial loss (gain) | 17,570,000 | 14,412,000 | ' | |||
Prior service cost (credit) | 11,000 | 15,000 | ' | |||
Net transition obligation | 0 | 0 | ' | |||
Ending, Accumulated Other Comprehensive Income (Loss) | 17,581,000 | 14,427,000 | ' | |||
Components of net periodic cost | ' | ' | ' | |||
Recognized actuarial loss | 3,085,000 | 1,927,000 | ' | |||
Prior service (cost) credit | 4,000 | 3,000 | ' | |||
Recognized net initial obligation | 0 | 0 | ' | |||
Pension [Member] | Minimum [Member] | ' | ' | ' | |||
Weighted average assumptions used to determine obligations | ' | ' | ' | |||
Discount rate | 3.25% | [3] | ' | ' | ||
Pension [Member] | Maximum [Member] | ' | ' | ' | |||
Weighted average assumptions used to determine obligations | ' | ' | ' | |||
Discount rate | 3.50% | [3] | ' | ' | ||
OPEB [Member] | ' | ' | ' | |||
Change in Benefit Obligation [Roll Forward] | ' | ' | ' | |||
Benefit obligation at beginning of year | 112,771,000 | 121,027,000 | ' | |||
Service cost | 3,923,000 | 4,686,000 | 3,584,000 | |||
Interest cost | 5,734,000 | 5,148,000 | 5,133,000 | |||
Plan participants' contributions | 38,000 | 32,000 | ' | |||
Special termination benefits | 648,000 | 0 | 0 | |||
Actuarial (gain) loss | 6,792,000 | -15,645,000 | ' | |||
Benefits paid, net of retiree subsidies received | -2,133,000 | -2,477,000 | ' | |||
Benefit obligation at end of year | 127,773,000 | 112,771,000 | 121,027,000 | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at beginning of year | 49,555,000 | 41,090,000 | ' | |||
Actual return on plan assets | 4,590,000 | 5,120,000 | ' | |||
Employer contributions | 4,970,000 | 5,977,000 | 5,800,000 | |||
Benefits paid, net of plan participants' contributions | -2,206,000 | -2,632,000 | ' | |||
Fair value of plan asset at end of year | 56,909,000 | 49,555,000 | 41,090,000 | |||
Funded status | -70,864,000 | -63,216,000 | ' | |||
Amounts recognized on Consolidated Balance Sheets, Postemployment benefit liability | ' | ' | ' | |||
Current | -136,000 | -100,000 | ' | |||
Non-current | -70,728,000 | -63,116,000 | ' | |||
Total | -70,864,000 | -63,216,000 | ' | |||
Amounts Recognized in Regulatory Assets and Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | |||
Amounts amortized to net periodic costs, Net actuarial (loss) gain | -2,500,000 | -3,857,000 | -2,894,000 | |||
Prior service (cost) credit | 357,000 | 355,000 | -25,000 | |||
Net transition obligation | -11,000 | -26,000 | -356,000 | |||
Amounts included in regulatory assets and accumulated other comprehensive income | ' | ' | ' | |||
Net actuarial loss, Regulatory Assets | 2,911,000 | ' | ' | |||
Prior service cost (credit), Regulatory Assets | -311,000 | ' | ' | |||
Total, Regulatory Assets | 2,600,000 | ' | ' | |||
Net actuarial loss, Accumulated Other Comprehensive Income (Loss) | 32,000 | ' | ' | |||
Prior service cost (credit), Accumulated Other Comprehensive Income (Loss) | -54,000 | ' | ' | |||
Total, Accumulated Other Comprehensive Income (Loss) | -22,000 | ' | ' | |||
Components of net periodic cost | ' | ' | ' | |||
Service cost | 3,923,000 | 4,686,000 | 3,584,000 | |||
Interest cost | 5,734,000 | 5,148,000 | 5,133,000 | |||
Expected return on plan assets | -4,174,000 | -3,653,000 | -2,746,000 | |||
Recognized actuarial loss | 2,500,000 | 3,857,000 | 2,894,000 | |||
Prior service (cost) credit | -357,000 | -355,000 | 25,000 | |||
Recognized net initial obligation | 11,000 | 26,000 | 356,000 | |||
Net periodic cost | 7,637,000 | 9,709,000 | 9,246,000 | |||
Special termination benefit | 648,000 | 0 | 0 | |||
Net periodic benefit cost recognized as expense | 8,285,000 | 9,709,000 | 9,246,000 | |||
Weighted average assumptions used to determine benefit costs | ' | ' | ' | |||
Discount rate | 5.15% | 4.30% | 5.25% | |||
Expected asset return | 8.25% | 8.50% | 8.25% | |||
Compensation increase | 3.50% | 3.25% | 3.25% | |||
Weighted average assumptions used to determine obligations | ' | ' | ' | |||
Discount rate | 4.55% | 5.15% | 4.30% | |||
Compensation increase | 3.50% | 3.25% | 3.25% | |||
Information relating to the assumed health care cost trend rate (HCCTR) | ' | ' | ' | |||
HCCTR | 7.10% | 7.30% | 7.50% | |||
Ultimate HCCTR | 4.80% | 4.80% | 4.80% | |||
Year ultimate HCCTR reached | '2022 | '2022 | '2022 | |||
Effect of a 1 percentage point increase in the HCCTR on year-end benefit obligation | 20,965,000 | 18,008,000 | 21,278,000 | |||
Effect of a 1 percentage point increase in the HCCTR on total service and interest cost | 1,885,000 | 2,156,000 | 1,868,000 | |||
Effect of a 1 percentage point decrease in the HCCTR on year-end benefit obligation | -16,932,000 | -14,629,000 | -17,034,000 | |||
Effect of a 1 percentage point decrease in the HCCTR on total service and interest costs | -1,493,000 | -1,675,000 | -1,457,000 | |||
Estimated future benefit payments | ' | ' | ' | |||
2015 | 3,509,000 | ' | ' | |||
2016 | 4,292,000 | ' | ' | |||
2017 | 4,735,000 | ' | ' | |||
2018 | 5,197,000 | ' | ' | |||
2019 | 5,705,000 | ' | ' | |||
2020 - 2024 | 37,063,000 | ' | ' | |||
OPEB [Member] | Regulatory Assets [Member] | ' | ' | ' | |||
Amounts Recognized in Regulatory Assets and Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | |||
Beginning, Regulatory Assets | 41,812,000 | [2] | 58,799,000 | ' | ||
Amounts arising during the period, Net actuarial loss (gain) | 4,277,000 | -13,523,000 | ' | |||
Amounts amortized to net periodic costs, Net actuarial (loss) gain | -2,607,000 | -3,743,000 | ' | |||
Prior service (cost) credit | 303,000 | 301,000 | ' | |||
Net transition obligation | -11,000 | -22,000 | ' | |||
Net actuarial loss (gain) | 45,809,000 | 44,140,000 | ' | |||
Prior service cost (credit) | -2,035,000 | -2,339,000 | ' | |||
Net transition obligation | 0 | 11,000 | ' | |||
Ending, Regulatory Assets | 43,774,000 | 41,812,000 | [2] | ' | ||
Components of net periodic cost | ' | ' | ' | |||
Recognized actuarial loss | 2,607,000 | 3,743,000 | ' | |||
Prior service (cost) credit | -303,000 | -301,000 | ' | |||
Recognized net initial obligation | 11,000 | 22,000 | ' | |||
OPEB [Member] | Accumulated Other Comprehensive Income, Location [Member] | ' | ' | ' | |||
Amounts Recognized in Regulatory Assets and Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | |||
Beginning, Accumulated Other Comprehensive Income (Loss) | -2,142,000 | 1,511,000 | ' | |||
Amounts arising during the period, Net actuarial loss (gain) | 2,098,000 | -3,589,000 | ' | |||
Amounts amortized to net periodic costs, Net actuarial (loss) gain | 107,000 | -114,000 | ' | |||
Prior service (cost) credit | 54,000 | 54,000 | ' | |||
Net transition obligation | 0 | -4,000 | ' | |||
Net actuarial loss (gain) | 425,000 | -1,782,000 | ' | |||
Prior service cost (credit) | -308,000 | -360,000 | ' | |||
Net transition obligation | 0 | 0 | ' | |||
Ending, Accumulated Other Comprehensive Income (Loss) | 117,000 | -2,142,000 | ' | |||
Components of net periodic cost | ' | ' | ' | |||
Recognized actuarial loss | -107,000 | 114,000 | ' | |||
Prior service (cost) credit | -54,000 | -54,000 | ' | |||
Recognized net initial obligation | 0 | 4,000 | ' | |||
OPEB [Member] | Minimum [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Estimated future employer contributions over the next five years | 4,000,000 | ' | ' | |||
OPEB [Member] | Maximum [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Estimated future employer contributions over the next five years | $6,000,000 | ' | ' | |||
[1] | Includes the Company's PEP. | |||||
[2] | Balance represents amounts recognized in accordance with ASC 715 and excludes $308,000 associated with a regulatory asset approved by the BPU for fiscal 2012. | |||||
[3] | Percentages for represented and nonrepresented plans, respectively. |
EMPLOYEE_BENEFIT_PLANS_ESTIMAT
EMPLOYEE BENEFIT PLANS, ESTIMATED SUBSIDY PAYMENTS (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Prescription Drug Subsidy Receipts, Fiscal Year Maturity [Abstract] | ' |
2015 | $201 |
2016 | 225 |
2017 | 249 |
2018 | 274 |
2019 | 300 |
2020 - 2024 | $2,030 |
EMPLOYEE_BENEFIT_PLANS_FAIR_VA
EMPLOYEE BENEFIT PLANS, FAIR VALUE (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
In Thousands, unless otherwise specified | ||||||
Pension [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | $211,653 | [1] | $200,236 | [1] | $166,664 | [1] |
OPEB [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 56,909 | 49,555 | 41,090 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 211,653 | 200,236 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | Money Market Funds [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 50 | 3 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | Large Cap Index Fund [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 70,358 | 69,707 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | Extended Market Index [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 12,475 | 14,736 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | World Equity ES-Us Fund [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 41,833 | 42,792 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | Emerging Markets Debt Fund [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 10,029 | 8,754 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | High Yield Bond Fund [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 21,054 | 19,850 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension [Member] | Long Duration Fund [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 55,854 | 44,394 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 56,909 | 49,555 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Money Market Funds [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 1,154 | 1,150 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Large Cap Index Fund [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 19,092 | 16,419 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Extended Market Index [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 3,733 | 3,444 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | World Equity ES-Us Fund [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 10,309 | 10,033 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Emerging Markets Debt Fund [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 2,798 | 2,163 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Core Fixed Income [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 6,522 | 11,684 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Opportunistic Income [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 3,960 | 0 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | Ultra Short Duration [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | 3,761 | 0 | ' | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | OPEB [Member] | High Yield Bond Fund [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined benefit plan, fair value of plan assets | $5,580 | $4,662 | ' | |||
[1] | Includes the Company's PEP. |
EMPLOYEE_BENEFIT_PLANS_DEFINED1
EMPLOYEE BENEFIT PLANS, DEFINED CONTRIBUTION (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined contribution, company match of employee contribution | 60.00% | ' | ' |
Defined contribution plan, maximum employer contribution by percentage of employee salary | 6.00% | ' | ' |
Defined contribution plan, cost recognized | $2,200,000 | $1,900,000 | $1,700,000 |
Deferred compensation arrangement with individual, employer contribution | $374,000 | $193,000 | $143,000 |
NJRHS [Member] | Minimum [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined contribution plan, employer contribution for employees not qualifying for the defined benefit plan | 3.00% | ' | ' |
NJRHS [Member] | Maximum [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined contribution plan, employer contribution for employees not qualifying for the defined benefit plan | 4.00% | ' | ' |
ASSET_RETIREMENT_OBLIGATIONS_D
ASSET RETIREMENT OBLIGATIONS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ' | ' |
Balance at October 1 | $28,711 | $27,983 |
Accretion | 2,012 | 1,892 |
Additions | 925 | 533 |
Retirements | -1,153 | -1,697 |
Balance at period end | 30,495 | 28,711 |
Future Accretion [Abstract] | ' | ' |
2015 | 2,075 | ' |
2016 | 2,139 | ' |
2017 | 2,194 | ' |
2018 | 2,248 | ' |
2019 | 2,303 | ' |
Total | $10,959 | ' |
INCOME_TAXES_INCOME_TAX_RECONC
INCOME TAXES, INCOME TAX RECONCILIATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ' | ' | ' |
Statutory income tax expense | $67,834 | $52,661 | $35,213 |
State income taxes | 7,785 | 5,168 | 5,434 |
Depreciation and cost of removal | -4,437 | -5,769 | -3,999 |
Investment tax credits | -23,083 | -18,749 | -34,397 |
Basis adjustment of solar assets due to ITC | 3,959 | 3,225 | 5,974 |
Other | -218 | -961 | -496 |
Income tax provision | $51,840 | $35,575 | $7,729 |
Effective income tax rate | 26.80% | 23.60% | 7.70% |
INCOME_TAXES_COMPONENTS_OF_INC
INCOME TAXES, COMPONENTS OF INCOME TAX PROVISION (BENEFIT) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Current | ' | ' | ' |
Federal | $37,904 | $12,248 | $14,983 |
State | 11,096 | 1,763 | 4,025 |
Deferred | ' | ' | ' |
Federal | 24,963 | 34,127 | 18,757 |
State | 960 | 6,186 | 4,361 |
Investment tax credits | -23,083 | -18,749 | -34,397 |
Income tax provision | $51,840 | $35,575 | $7,729 |
INCOME_TAXES_DEFERRED_TAX_ASSE
INCOME TAXES, DEFERRED TAX ASSETS AND LIABILITIES (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | |
Deferred tax assets | ' | ' | |
Investment tax credits | $10,341,000 | [1] | $43,033,000 |
Deferred service contract revenue | 3,299,000 | 3,231,000 | |
Incentive compensation | 14,632,000 | 6,798,000 | |
Fair value of derivatives | 14,350,000 | 0 | |
State net operating losses | 8,962,000 | 6,118,000 | |
Conservation incentive plan | 2,312,000 | 0 | |
Other | 10,078,000 | 5,718,000 | |
Total deferred tax assets | 63,974,000 | 64,898,000 | |
Deferred tax liabilities | ' | ' | |
Property related items | -371,017,000 | -329,921,000 | |
Remediation costs | -12,429,000 | -18,881,000 | |
Equity investments | -35,474,000 | -33,368,000 | |
Post employment benefits | -10,268,000 | -17,455,000 | |
Fair value of derivatives | 0 | -6,258,000 | |
Conservation incentive plan | 0 | -7,611,000 | |
Under-recoverd gas costs | -5,056,000 | -383,000 | |
Other | -11,751,000 | -13,699,000 | |
Total deferred tax liabilities | -445,995,000 | -427,576,000 | |
Total net deferred tax liabilities | -382,021,000 | -362,678,000 | |
Internal Revenue Service (IRS) [Member] | ' | ' | |
Deferred tax liabilities | ' | ' | |
Tax credit carryforward | 7,500,000 | ' | |
NJNG [Member] | ' | ' | |
Deferred tax assets | ' | ' | |
Investment tax credits | $2,800,000 | ' | |
[1] | Includes $2.8 million for NJNG, which is being amortized over the life of the related assets and $7.5 million for NJRCEV, which is ITC carryforward. |
INCOME_TAXES_UNRECOGNIZED_TAX_
INCOME TAXES, UNRECOGNIZED TAX BENEFIT (Details) (State and Local Jurisdiction [Member], USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
State and Local Jurisdiction [Member] | ' |
Income Tax Contingency [Line Items] | ' |
Income tax refund | $1.10 |
INCOME_TAXES_INCOME_TAX_CARRYF
INCOME TAXES, INCOME TAX CARRYFORWARDS (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Operating Loss Carryforwards [Line Items] | ' | ' |
Tax credit carryforward, expiration period | '20 years | ' |
State and Local Jurisdiction [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net operating losses | $153,200,000 | ' |
Net operating losses, life | '20 years | ' |
Deferred tax asset, loss carryforwards | 9,024,000 | ' |
Valuation allowance | 212,000 | 262,000 |
State and Local Jurisdiction [Member] | Fiscal years 2015 - 2018 [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Deferred tax asset, loss carryforwards | 78,000 | ' |
State and Local Jurisdiction [Member] | Fiscal years 2019 - 2023 [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Deferred tax asset, loss carryforwards | 0 | ' |
State and Local Jurisdiction [Member] | Fiscal Years 2024 - 2028 [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Deferred tax asset, loss carryforwards | 0 | ' |
State and Local Jurisdiction [Member] | Fiscal Years 2029 - 2034 [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Deferred tax asset, loss carryforwards | 8,946,000 | ' |
Internal Revenue Service (IRS) [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Tax credit carryforward | $7,500,000 | ' |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES, SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | ||
Long-term Purchase Commitment [Line Items] | ' | |
Current charges recoverable through BGSS | $78,300,000 | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | |
2015 | 581,526,000 | [1] |
2016 | 138,197,000 | [1] |
2017 | 79,358,000 | [1] |
2018 | 112,856,000 | [1] |
2019 | 105,086,000 | [1] |
Thereafter | 874,319,000 | [1] |
Minimum [Member] | ' | |
Long-term Purchase Commitment [Line Items] | ' | |
Storage and pipeline capacity, fixed period | '1 year | |
Maximum [Member] | ' | |
Long-term Purchase Commitment [Line Items] | ' | |
Storage and pipeline capacity, fixed period | '10 years | |
NJRES [Member] | Natural Gas Purchases [Member] | ' | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | |
2015 | 298,563,000 | |
2016 | 18,402,000 | |
2017 | 0 | |
2018 | 0 | |
2019 | 0 | |
Thereafter | 0 | |
NJRES [Member] | Storage Demand Fees [Member] | ' | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | |
2015 | 27,883,000 | |
2016 | 10,471,000 | |
2017 | 5,612,000 | |
2018 | 3,500,000 | |
2019 | 1,782,000 | |
Thereafter | 2,598,000 | |
NJRES [Member] | Pipeline Demand Fees [Member] | ' | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | |
2015 | 76,524,000 | |
2016 | 41,759,000 | |
2017 | 21,828,000 | |
2018 | 14,499,000 | |
2019 | 6,638,000 | |
Thereafter | 6,861,000 | |
NJRES [Member] | Natural Gas Purchases and Future Demand Fees [Member] | ' | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | |
2015 | 402,970,000 | |
2016 | 70,632,000 | |
2017 | 27,440,000 | |
2018 | 17,999,000 | |
2019 | 8,420,000 | |
Thereafter | 9,459,000 | |
NJNG [Member] | Natural Gas Purchases [Member] | ' | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | |
2015 | 100,218,000 | |
2016 | 5,328,000 | |
2017 | 34,000 | |
2018 | 0 | |
2019 | 0 | |
Thereafter | 0 | |
NJNG [Member] | Storage Demand Fees [Member] | ' | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | |
2015 | 24,045,000 | |
2016 | 17,865,000 | |
2017 | 10,883,000 | |
2018 | 9,299,000 | |
2019 | 9,299,000 | |
Thereafter | 4,649,000 | |
NJNG [Member] | Pipeline Demand Fees [Member] | ' | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | |
2015 | 54,293,000 | |
2016 | 44,372,000 | |
2017 | 41,001,000 | |
2018 | 85,558,000 | |
2019 | 87,367,000 | |
Thereafter | 860,211,000 | |
NJNG [Member] | Natural Gas Purchases and Future Demand Fees [Member] | ' | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ' | |
2015 | 178,556,000 | |
2016 | 67,565,000 | |
2017 | 51,918,000 | |
2018 | 94,857,000 | |
2019 | 96,666,000 | |
Thereafter | $864,860,000 | |
[1] | Does not include amounts related to intercompany asset management agreements between NJRES and NJNG. |
COMMITMENTS_AND_CONTINGENT_LIA3
COMMITMENTS AND CONTINGENT LIABILITIES, CAPITAL EXPENDITURES (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Operating leases, future minimum payments due, next five years | $2 |
Operating leases, future minimum payments, due thereafter | $22.80 |
COMMITMENTS_AND_CONTINGENT_LIA4
COMMITMENTS AND CONTINGENT LIABILITIES, GUARANTEES (Details) (USD $) | 12 Months Ended |
Sep. 30, 2014 | |
Guarantor Obligations [Line Items] | ' |
Term of operating leases for vehicles | '5 years |
Present Value of Vehicle Operating Residual Value [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Guarantor obligations, current carrying value | 700,000 |
Guarantor obligations, maximum exposure, undiscounted | 922,000 |
Guarantee Obligations [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Loss contingency, estimate of possible loss | 323,600,000 |
COMMITMENTS_AND_CONTINGENT_LIA5
COMMITMENTS AND CONTINGENT LIABILITIES, LEGAL PROCEEDINGS (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | |
Minimum [Member] | Maximum [Member] | Enviromental remediation costs expended, net of recoveries [Member] | Enviromental remediation costs expended, net of recoveries [Member] | Enviromental remediation costs liability for future expenditures [Member] | Enviromental remediation costs liability for future expenditures [Member] | July 2013 SBC Filing [Member] | |||
SBC [Member] | |||||||||
Site Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovery period | '7 years | ' | ' | ' | ' | ' | ' | ' | ' |
Site contingency, recovery from third party of environmental remediation cost | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Approved rate, amount | ' | ' | ' | ' | ' | ' | ' | ' | 18,700,000 |
Regulatory assets | 377,575,000 | 402,202,000 | ' | ' | 30,916,000 | 46,968,000 | 177,000,000 | 183,600,000 | ' |
Litigation settlement, gross | ' | ' | $151,300,000 | $249,800,000 | ' | ' | ' | ' | ' |
BUSINESS_SEGMENT_AND_OTHER_OPE2
BUSINESS SEGMENT AND OTHER OPERATIONS DATA, RECONCILIATION OF SEGMENT INCOME TO CONSOLIDATED (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Utility | ' | ' | ' | ' | ' | ' | ' | ' | $819,415 | $787,987 | $627,713 | |||
Nonutility | ' | ' | ' | ' | ' | ' | ' | ' | 2,918,730 | 2,410,081 | 1,621,210 | |||
Total operating revenues | 591,914 | 688,257 | 1,579,569 | 878,405 | 733,695 | 767,469 | 960,885 | 736,019 | 3,738,145 | 3,198,068 | 2,248,923 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 52,742 | 47,310 | 41,643 | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 1,222 | [1] | 837 | [1] | 1,026 | [1] |
Interest expense, net of capitalized interest | ' | ' | ' | ' | ' | ' | ' | ' | 25,463 | 23,979 | 20,844 | |||
Income tax provision (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 51,840 | 35,575 | 7,729 | |||
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | 10,532 | 10,349 | 10,634 | |||
Net financial earnings | ' | ' | ' | ' | ' | ' | ' | ' | 176,857 | 113,681 | 112,417 | |||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 289,288 | 197,250 | 207,515 | |||
Investments in equity investees | ' | ' | ' | ' | ' | ' | ' | ' | 555 | 0 | 8,800 | |||
Investments in equity investees | ' | ' | ' | ' | ' | ' | ' | ' | 555 | 0 | 8,800 | |||
Canada | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage to total operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 3.30% | 5.90% | 6.60% | |||
Reportable Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 3,764,807 | 3,156,553 | 2,210,581 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 51,900 | 46,526 | 40,992 | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 2,171 | [1] | 1,719 | [1] | 2,024 | [1] |
Interest expense, net of capitalized interest | ' | ' | ' | ' | ' | ' | ' | ' | 25,104 | 22,878 | 19,505 | |||
Income tax provision (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 49,122 | 33,197 | 5,656 | |||
Net financial earnings | ' | ' | ' | ' | ' | ' | ' | ' | 174,091 | 110,416 | 110,230 | |||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 288,109 | 196,208 | 206,181 | |||
Natural Gas Distribution [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 40,540 | 37,999 | 35,247 | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 999 | [1] | 653 | [1] | 889 | [1] |
Interest expense, net of capitalized interest | ' | ' | ' | ' | ' | ' | ' | ' | 16,683 | 14,995 | 14,890 | |||
Income tax provision (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 39,374 | 35,399 | 38,135 | |||
Net financial earnings | ' | ' | ' | ' | ' | ' | ' | ' | 74,204 | 73,846 | 73,238 | |||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 152,566 | 137,083 | 116,455 | |||
Natural Gas Distribution [Member] | External Customers [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Utility | ' | ' | ' | ' | ' | ' | ' | ' | 819,415 | 787,987 | 627,713 | |||
Energy Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 59 | 44 | 59 | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 222 | [1] | 1 | [1] | 37 | [1] |
Interest expense, net of capitalized interest | ' | ' | ' | ' | ' | ' | ' | ' | 1,725 | 2,534 | 1,096 | |||
Income tax provision (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 26,458 | 10,516 | -4,950 | |||
Net financial earnings | ' | ' | ' | ' | ' | ' | ' | ' | 79,735 | 19,311 | 10,791 | |||
Energy Services [Member] | External Customers [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Nonutility | ' | ' | ' | ' | ' | ' | ' | ' | 2,858,703 | [2] | 2,351,084 | [2] | 1,577,851 | [2] |
Energy Services [Member] | Intercompany [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Nonutility | ' | ' | ' | ' | ' | ' | ' | ' | 72,114 | 5,494 | 2,760 | |||
Clean Energy Ventures [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 11,295 | 8,477 | 5,680 | |||
Interest expense, net of capitalized interest | ' | ' | ' | ' | ' | ' | ' | ' | 5,300 | 3,387 | 854 | |||
Income tax provision (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -21,937 | -17,711 | -32,507 | |||
Net financial earnings | ' | ' | ' | ' | ' | ' | ' | ' | 12,654 | 10,060 | 19,452 | |||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 135,543 | 59,125 | 89,726 | |||
Investments in equity investees | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 8,800 | |||
Clean Energy Ventures [Member] | External Customers [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Nonutility | ' | ' | ' | ' | ' | ' | ' | ' | 14,575 | 11,988 | 2,257 | |||
Midstream [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 6 | 6 | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 950 | [1] | 1,065 | [1] | 1,098 | [1] |
Interest expense, net of capitalized interest | ' | ' | ' | ' | ' | ' | ' | ' | 1,396 | 1,962 | 2,665 | |||
Income tax provision (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 5,227 | 4,993 | 4,978 | |||
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | 14,078 | 13,868 | 14,308 | |||
Net financial earnings | ' | ' | ' | ' | ' | ' | ' | ' | 7,498 | 7,199 | 6,749 | |||
Investments in equity investees | ' | ' | ' | ' | ' | ' | ' | ' | 555 | 0 | 0 | |||
Retail and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 846 | 786 | 661 | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 1 | [1] | 2 | [1] | 3 | [1] |
Interest expense, net of capitalized interest | ' | ' | ' | ' | ' | ' | ' | ' | 359 | 1,101 | 1,339 | |||
Income tax provision (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 2,460 | 2,550 | 2,178 | |||
Net financial earnings | ' | ' | ' | ' | ' | ' | ' | ' | 2,798 | 3,292 | 2,366 | |||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 1,179 | 1,042 | 1,334 | |||
Retail and Other [Member] | External Customers [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Nonutility | ' | ' | ' | ' | ' | ' | ' | ' | 45,452 | 47,009 | 41,102 | |||
Retail and Other [Member] | Intercompany [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Nonutility | ' | ' | ' | ' | ' | ' | ' | ' | 1,235 | 945 | 1,093 | |||
Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Nonutility | ' | ' | ' | ' | ' | ' | ' | ' | -73,349 | -6,439 | -3,853 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -2 | -10 | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | -950 | [1] | -884 | [1] | -1,001 | [1] |
Income tax provision (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 258 | -172 | -105 | |||
Equity in earnings of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | -3,546 | -3,519 | -3,674 | |||
Net financial earnings | ' | ' | ' | ' | ' | ' | ' | ' | ($32) | ($27) | ($179) | |||
[1] | Included in other income on the Consolidated Statement of Operations. | |||||||||||||
[2] | Includes sales to Canada, which accounted for 3.3, 5.9 and 6.6 percent of total operating revenues during fiscal 2014, 2013 and 2012, respectively. |
BUSINESS_SEGMENT_AND_OTHER_OPE3
BUSINESS SEGMENT AND OTHER OPERATIONS DATA, NET FINANCIAL EARNINGS LOSS RECONCILIATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated net financial earnings | ' | ' | ' | ' | ' | ' | ' | ' | $176,857 | $113,681 | $112,417 |
Unrealized loss (gain) on derivative instruments and related transactions | ' | ' | ' | ' | ' | ' | ' | ' | 28,534 | -9,418 | 35,790 |
Effects of economic hedging related to natural gas inventory | ' | ' | ' | ' | ' | ' | ' | ' | 26,639 | 7,635 | -4,891 |
Tax adjustments | ' | ' | ' | ' | ' | ' | ' | ' | -20,286 | 655 | -11,361 |
NET INCOME | ($24,420) | ($14,274) | $172,971 | $7,693 | ($20,021) | $29,155 | $45,469 | $60,206 | $141,970 | $114,809 | $92,879 |
BUSINESS_SEGMENT_AND_OTHER_OPE4
BUSINESS SEGMENT AND OTHER OPERATIONS DATA, RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
In Thousands, unless otherwise specified | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | |||
Assets | $3,158,804 | $3,004,783 | $2,770,005 | |||
Natural Gas Distribution [Member] | ' | ' | ' | |||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | |||
Assets | 2,143,684 | 2,094,940 | 2,005,520 | |||
Energy Services [Member] | ' | ' | ' | |||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | |||
Assets | 457,080 | 468,096 | 347,406 | |||
Clean Energy Ventures [Member] | ' | ' | ' | |||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | |||
Assets | 380,707 | 253,663 | 223,247 | |||
Midstream [Member] | ' | ' | ' | |||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | |||
Assets | 153,891 | 153,536 | 157,779 | |||
Categorized Business Segments [Member] | ' | ' | ' | |||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | |||
Assets | 3,135,362 | 2,970,235 | 2,733,952 | |||
Retail and Other [Member] | ' | ' | ' | |||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | |||
Assets | 82,413 | 85,293 | 73,298 | |||
Intercompany Assets [Member] | ' | ' | ' | |||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | |||
Assets | ($58,971) | [1] | ($50,745) | [1] | ($37,245) | [1] |
[1] | Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |
NJRES to Steckman Ridge and Iroquios Affiliates [Member] | NJRES to Steckman Ridge and Iroquios Affiliates [Member] | NJRES to Steckman Ridge and Iroquios Affiliates [Member] | NJRES to Steckman Ridge Affiliate [Member] | NJRES to Steckman Ridge Affiliate [Member] | NJRES to Iroquois Affiliate [Member] | NJRES to Iroquois Affiliate [Member] | NJNG to Steckman RIdge and Iroquios Afffiliates [Member] | NJNG to Steckman RIdge and Iroquios Afffiliates [Member] | NJNG to Steckman RIdge and Iroquios Afffiliates [Member] | NJNG to Steckman RIdge Affiliate [Member] | NJNG to Steckman RIdge Affiliate [Member] | NJNG to Iroquois Affiliate [Member] | NJNG to Iroquois Affiliate [Member] | NJNG to NJRES Affilate [Member] | NJNG to PennEast Affiliate [Member] | ||
MMcf | MMcf | ||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Demand fees recognized pertaining to related party agreement | ' | $6,200,000 | $6,100,000 | $6,600,000 | ' | ' | ' | ' | $6,400,000 | $5,900,000 | $5,600,000 | ' | ' | ' | ' | ' | ' |
Due to related parties | ' | ' | ' | ' | 187,000 | 159,000 | 389,000 | 390,000 | ' | ' | ' | 775,000 | 775,000 | 48,000 | 61,000 | ' | ' |
Asset management agreement, period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' |
Natural gas sold at cost under asset management agreement (MMcf) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000 | ' |
Approximate annual demand fees under agreement from April 1 2010 to March 31 2020 | $9,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transportation capacity under precedent agreement from NJNG with PennEast (MMcf) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 180 |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Operating revenues | $591,914 | $688,257 | $1,579,569 | $878,405 | $733,695 | $767,469 | $960,885 | $736,019 | $3,738,145 | $3,198,068 | $2,248,923 | |||||||||||
Gross margin | 47,375 | [1] | 28,474 | [1] | 315,849 | [1] | 64,432 | [1] | 23,088 | [1] | 100,641 | [1] | 108,137 | [1] | 135,189 | [1] | ' | ' | ' | |||
Operating income (loss) | -28,838 | -29,208 | 247,012 | 12,224 | -31,929 | 47,000 | 56,969 | 87,191 | 201,190 | 159,231 | 108,690 | |||||||||||
Net income (loss) | ($24,420) | ($14,274) | $172,971 | $7,693 | ($20,021) | $29,155 | $45,469 | $60,206 | $141,970 | $114,809 | $92,879 | |||||||||||
Earnings (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Basic (in usd per share) | ($0.58) | ($0.34) | $4.11 | $0.18 | ($0.48) | $0.70 | $1.09 | $1.44 | $3.37 | $2.76 | $2.24 | |||||||||||
Diluted (in usd per share) | ($0.58) | ($0.34) | $4.07 | $0.18 | ($0.48) | $0.70 | $1.08 | $1.44 | $3.34 | [2] | $2.75 | [2] | $2.23 | [2] | ||||||||
[1] | Gross margin consists of operating revenue less cost of goods sold and other direct expenses at NJR's unregulated subsidiaries and utility gross margin at NJNG, which includes natural gas revenues less natural gas purchases, sales tax, a TEFA and regulatory rider expenses. | |||||||||||||||||||||
[2] | There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2014, 2013 and 2012. |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Regulatory Asset [Member] | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
BEGINNING BALANCE | ' | $71 | $141 | |||
ADDITIONS, CHARGED TO EXPENSE | ' | -71 | -70 | |||
OTHER | ' | 0 | [1] | 0 | [1] | |
ENDING BALANCE | ' | 0 | 71 | |||
Allowance for Doubtful Accounts [Member] | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
BEGINNING BALANCE | 5,330 | 4,797 | 4,612 | |||
ADDITIONS, CHARGED TO EXPENSE | 2,504 | 2,627 | 3,932 | |||
OTHER | -2,477 | [1] | -2,094 | [1] | -3,747 | [1] |
ENDING BALANCE | $5,357 | $5,330 | $4,797 | |||
[1] | Uncollectible accounts written off, less recoveries and adjustments. |