Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2015 | Jul. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NEW JERSEY RESOURCES CORP | |
Entity Central Index Key | 356,309 | |
Current Fiscal Year End Date | --09-30 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 85,505,534 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
OPERATING REVENUES | |||||
Utility | $ 116,307 | $ 111,383 | $ 699,737 | $ 739,380 | |
Nonutility | 342,160 | 576,874 | 1,595,944 | 2,406,851 | |
Total operating revenues | 458,467 | 688,257 | 2,295,681 | 3,146,231 | |
OPERATING EXPENSES | |||||
Gas Purchases - Utility | 41,562 | 37,875 | 255,106 | 293,812 | |
Gas Purchases - Nonutility | 342,105 | 598,043 | 1,477,649 | 2,306,315 | |
Gas Purchases - Related parties | 3,102 | 3,158 | 9,490 | 9,497 | |
Operation and maintenance | 48,598 | 45,995 | 146,135 | 149,291 | |
Regulatory rider expenses | 8,516 | 9,337 | 72,671 | 67,380 | |
Depreciation and amortization | 15,574 | 13,620 | 45,164 | 39,014 | |
Energy and other taxes | 8,319 | 9,437 | 47,272 | 50,894 | |
Total operating expenses | 467,776 | 717,465 | 2,053,487 | 2,916,203 | |
OPERATING (LOSS) INCOME | (9,309) | (29,208) | 242,194 | 230,028 | |
Other income, net | 1,491 | 10,952 | 2,518 | 12,791 | |
Interest expense, net of capitalized interest | 7,327 | 6,507 | 21,005 | 19,108 | |
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES | (15,145) | (24,763) | 223,707 | 223,711 | |
Income tax (benefit) provision | (4,318) | (7,808) | 56,693 | 65,377 | |
Equity in earnings of affiliates | 3,367 | 2,681 | 9,749 | 8,056 | |
NET (LOSS) INCOME | $ (7,460) | $ (14,274) | $ 176,763 | $ 166,390 | |
(LOSS) EARNINGS PER COMMON SHARE | |||||
BASIC (usd per share) | $ (0.09) | $ (0.17) | $ 2.08 | $ 1.98 | |
DILUTED (usd per share) | [1] | (0.09) | (0.17) | 2.05 | 1.96 |
DIVIDENDS DECLARED PER COMMON SHARE (usd per share) | $ 0.23 | $ 0.21 | $ 0.68 | $ 0.63 | |
WEIGHTED AVERAGE SHARES OUTSTANDING | |||||
BASIC (in shares) | 85,449 | 84,234 | 85,110 | 84,144 | |
DILUTED (in shares) | 85,449 | 84,234 | 86,128 | 84,912 | |
[1] | Since there was a net loss for the three months ended June 30, 2015, and 2014, incremental shares of 1,018 and 768, respectively, were not included in the computation of diluted loss per common share, as their effect would have been anti-dilutive. There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for the nine months ended June 30, 2015, and 2014. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (7,460) | $ (14,274) | $ 176,763 | $ 166,390 |
Other comprehensive income, net of tax | ||||
Unrealized (loss) gain on available for sale securities, net of tax of $394, $(353), $319 and $(150), respectively | (570) | 511 | (461) | 216 |
Net unrealized gain (loss) on derivatives, net of tax of $(6), $(95), $(56) and $14, respectively | 6 | 162 | 93 | (24) |
Adjustment to postemployment benefit obligation, net of tax of $(169), $(111), $(506) and $(334), respectively | 246 | 161 | 732 | 483 |
Other comprehensive (loss) income | (318) | 834 | 364 | 675 |
Comprehensive (loss) income | $ (7,778) | $ (13,440) | $ 177,127 | $ 167,065 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax on unrealized (loss) gain on available for sale securities | $ (394) | $ 353 | $ (319) | $ 150 |
Tax on net unrealized gain (loss) on derivatives | 6 | 95 | 56 | (14) |
Tax on adjustment for postemployment benefit obligation | $ 169 | $ 111 | $ 506 | $ 334 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 176,763 | $ 166,390 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Unrealized (gain) loss on derivative instruments | (19,010) | 45,810 |
Depreciation and amortization | 45,164 | 39,014 |
Allowance for equity used during construction | (3,371) | (1,154) |
Allowance for bad debt expense | 2,143 | 1,685 |
Deferred income taxes | 36,764 | 21,226 |
Manufactured gas plant remediation costs | (4,745) | (3,391) |
Equity in earnings of equity investees, net of distributions received | 3,909 | 1,364 |
Cost of removal - asset retirement obligations | (467) | (257) |
Contributions to postemployment benefit plans | (2,466) | (3,618) |
Changes in: | ||
Components of working capital | 88,290 | 83,223 |
Other noncurrent assets | 22,572 | 15,735 |
Other noncurrent liabilities | 34,214 | 10,434 |
Cash flows from operating activities | 379,760 | 376,461 |
CASH FLOWS (USED IN) INVESTING ACTIVITIES | ||
Utility plant expenditures | (96,626) | (90,381) |
Solar and wind equipment expenditures | (111,588) | (91,569) |
Real estate properties and other expenditures | (90) | (636) |
Cost of removal expenditures | (19,114) | (18,690) |
Investments in equity investees | (2,313) | 0 |
Distribution from equity investees in excess of equity in earnings | 2,269 | 1,344 |
Proceeds from sale of asset | 0 | 6,010 |
(Payment to) withdrawal from restricted cash construction fund | (1,484) | 100 |
Cash flows (used in) investing activities | (228,946) | (193,822) |
CASH FLOWS (USED IN) FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock | 33,659 | 12,161 |
Tax benefit from stock options exercised | 838 | 348 |
Proceeds from sale-leaseback transaction | 7,216 | 7,576 |
Proceeds from long-term debt | 250,000 | 125,000 |
Payments of long-term debt | (7,227) | (78,964) |
Purchases of treasury stock | (9,045) | (4,387) |
Payments of common stock dividends | (57,226) | (52,922) |
Net payments of short-term debt | (301,000) | (191,100) |
Cash flows (used in) financing activities | (82,785) | (182,288) |
Change in cash and cash equivalents | 68,029 | 351 |
Cash and cash equivalents at beginning of period | 2,151 | 2,969 |
Cash and cash equivalents at end of period | 70,180 | 3,320 |
CHANGES IN COMPONENTS OF WORKING CAPITAL | ||
Receivables | (8,566) | (37,575) |
Inventories | 160,809 | 100,021 |
Recovery of gas costs | 18,109 | (5,725) |
Gas purchases payable | (47,371) | 3,367 |
Gas purchases payable - related parties | 50 | 0 |
Prepaid and accrued taxes | (5,063) | 28,404 |
Accounts payable and other | (26,829) | 8,439 |
Restricted broker margin accounts | 3,466 | (19,045) |
Customers' credit balances and deposits | (5,784) | (4,738) |
Other current assets | (531) | 10,075 |
Components of working capital | 88,290 | 83,223 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION | ||
Cash paid for Interest (net of amounts capitalized) | 14,324 | 12,419 |
Cash paid for Income taxes | 22,818 | 12,782 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING ACTIVITIES | ||
Accrued capital expenditures | $ 30,038 | $ 14,317 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
PROPERTY, PLANT AND EQUIPMENT | ||
Utility plant, at cost | $ 1,874,823 | $ 1,791,009 |
Construction work in progress | 152,890 | 139,624 |
Solar and wind equipment, real estate properties and other, at cost | 455,017 | 347,285 |
Construction work in progress | 68,551 | 55,625 |
Total property, plant and equipment | 2,551,281 | 2,333,543 |
Accumulated depreciation and amortization, utility plant | (429,535) | (409,135) |
Accumulated depreciation and amortization, solar and wind equipment, real estate properties and other | (53,449) | (40,298) |
Property, plant and equipment, net | 2,068,297 | 1,884,110 |
CURRENT ASSETS | ||
Cash and cash equivalents | 70,180 | 2,151 |
Customer accounts receivable | ||
Billed | 197,086 | 189,970 |
Unbilled revenues | 6,707 | 7,231 |
Allowance for doubtful accounts | (5,527) | (5,357) |
Regulatory assets | 29,623 | 26,862 |
Gas in storage, at average cost | 117,115 | 277,516 |
Materials and supplies, at average cost | 7,757 | 8,165 |
Prepaid and accrued taxes | 23,736 | 22,269 |
Derivatives, at fair value | 38,291 | 64,223 |
Restricted broker margin accounts | 23,873 | 27,339 |
Deferred taxes | 25,487 | 36,451 |
Other | 27,474 | 25,911 |
Total current assets | 561,802 | 682,731 |
NONCURRENT ASSETS | ||
Investments in equity investees | 151,923 | 153,010 |
Regulatory assets | 351,763 | 377,575 |
Derivatives, at fair value | 7,977 | 5,654 |
Other | 67,162 | 55,724 |
Total noncurrent assets | 578,825 | 591,963 |
Total assets | 3,208,924 | 3,158,804 |
CAPITALIZATION | ||
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding June 30, 2015-85,401,117; September 30, 2014-84,356,310 | 220,830 | 218,223 |
Premium on common stock | 211,325 | 199,739 |
Accumulated other comprehensive (loss), net of tax | (5,230) | (5,594) |
Treasury stock at cost and other; shares June 30, 2015-2,935,153; September 30, 2014-2,932,775 | (97,688) | (121,031) |
Retained earnings | 794,075 | 674,829 |
Common stock equity | 1,123,312 | 966,166 |
Long-term debt | 847,521 | 598,209 |
Total capitalization | 1,970,833 | 1,564,375 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 36,032 | 34,505 |
Short-term debt | 0 | 301,000 |
Gas purchases payable | 158,562 | 205,901 |
Gas purchases payable to related parties | 1,416 | 1,398 |
Accounts payable and other | 89,527 | 104,005 |
Dividends payable | 19,269 | 19,001 |
Deferred and accrued taxes | 1,350 | 2,721 |
Regulatory liabilities | 11,284 | 6,072 |
New Jersey clean energy program | 15,685 | 14,285 |
Derivatives, at fair value | 52,989 | 79,863 |
Customers' credit balances and deposits | 16,551 | 22,335 |
Total current liabilities | 402,665 | 791,086 |
NONCURRENT LIABILITIES | ||
Deferred income taxes | 450,871 | 423,213 |
Deferred investment tax credits | 5,021 | 5,262 |
Deferred revenue | 4,936 | 4,042 |
Derivatives, at fair value | 2,415 | 6,690 |
Manufactured gas plant remediation | 177,000 | 177,000 |
Postemployment employee benefit liability | 88,646 | 86,674 |
Regulatory liabilities | 66,233 | 61,326 |
Asset retirement obligation | 31,584 | 30,495 |
Other | 8,720 | 8,641 |
Total noncurrent liabilities | $ 835,426 | $ 803,343 |
Commitments and contingent liabilities (Note 12) | ||
Total capitalization and liabilities | $ 3,208,924 | $ 3,158,804 |
CONDENSED CONSOLIDATED BALANCE7
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2015 | Sep. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares outstanding | 85,401,117 | 84,356,310 |
Treasury stock at cost and other, shares | 2,935,153 | 2,932,775 |
NATURE OF THE BUSINESS
NATURE OF THE BUSINESS | 9 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF THE BUSINESS | NATURE OF THE BUSINESS New Jersey Resources Corporation provides regulated gas distribution services and operates certain unregulated businesses primarily through the following subsidiaries: New Jersey Natural Gas Company provides natural gas utility service to approximately 512,000 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 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; 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared by NJR in accordance with the rules and regulations of the Securities and Exchange Commission and ASC 270. The September 30, 2014 , Balance Sheet data is derived from the audited financial statements of the Company. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and the notes thereto included in NJR's 2014 Annual Report on Form 10-K. The Unaudited Condensed Consolidated Financial Statements include the accounts of NJR and its subsidiaries. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary, for a fair presentation of the results of the interim periods presented. These adjustments are of a normal and recurring nature. Because of the seasonal nature of NJR's utility and wholesale energy services operations, in addition to other factors, the financial results for the interim periods presented are not indicative of the results that are to be expected for the fiscal year ended September 30, 2015 . Intercompany transactions and accounts have been eliminated. Gas in Storage The following table summarizes gas in storage, at average cost by company as of: June 30, September 30, ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf NJRES $ 81,829 36.6 $ 191,250 56.5 NJNG 35,286 12.1 86,266 21.3 Total $ 117,115 48.7 $ 277,516 77.8 Available for Sale Securities Included in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets are certain investments in equity securities of a publicly traded energy company that have a fair value of $9.9 million and $10.7 million as of June 30, 2015 and September 30, 2014 , 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 $7.3 million , or $4.3 million after tax, and $8.1 million , or $4.8 million after tax, as of June 30, 2015 and September 30, 2014 , respectively. Reclassifications of realized gains out of other comprehensive income into income are determined based on average cost. 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 in the first fiscal quarter of fiscal 2014 on the Unaudited Condensed Consolidated Statements of Operations. Common Stock Split On January 20, 2015, NJR’s Board of Directors approved a 2 for 1 stock split of the Company’s common stock for the Company’s common stock shareholders of record on February 6, 2015. The additional shares were issued on March 3, 2015, resulting in an increase in average shares outstanding from approximately 42.7 million to approximately 85.4 million . All share-related information for prior periods has been adjusted throughout this report on a retroactive basis to reflect the effects of the stock split. As well, common stock and premium on common stock amounts have been adjusted as of the earliest period presented in the Unaudited Condensed Consolidated Balance Sheets. Customer Accounts Receivable Customer accounts receivable include outstanding billings from the following subsidiaries as of: (Thousands) June 30, September 30, NJRES $ 114,531 58 % $ 142,566 75 % NJNG (1) 76,716 39 41,281 22 NJRCEV 898 — 594 — NJRHS and other 4,941 3 5,529 3 Total $ 197,086 100 % $ 189,970 100 % (1) Does not include unbilled revenues of $6.7 million and $7.2 million as of June 30, 2015 and September 30, 2014 , respectively. Loan Receivable NJNG provides interest-free loans, with terms ranging from two to 10 years, to customers that elect to purchase and install certain energy efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at net present value on the Unaudited Condensed Consolidated Balance Sheets. The Company has recorded $5.2 million and $3.9 million in other current assets and $33.7 million and $27.3 million in other noncurrent assets as of June 30, 2015 and September 30, 2014 , respectively, on the Unaudited Condensed Consolidated Balance Sheets, related to the loans. NJR's policy is to establish an allowance for doubtful accounts when loan balances are in arrears for more than 60 days . As of June 30, 2015 and September 30, 2014 , there was no allowance for doubtful accounts established for the SAVEGREEN loans. Recent Updates to the Accounting Standards Codification Income Taxes In July 2013, the FASB issued ASU No. 2013-11, an amendment to ASC 740, Income Taxes , which clarifies financial statement presentation for unrecognized tax benefits. The ASU requires that an unrecognized tax benefit, or portion thereof, shall be presented in the balance sheet as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss or a tax credit carryforward. To the extent such a deferred tax asset is not available or the Company does not intend to use it to settle any additional taxes that would result from the disallowance of a tax position, the related unrecognized tax benefit will be presented as a liability in the financial statements. The amended guidance became effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company currently does not have unrecognized tax benefits recorded on its balance sheet and there was no impact to its financial position upon adoption. Discontinued Operations In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity . The new guidance 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 this standard to have any impact to its financial position, results of operations and cash flows upon adoption. Revenue In May 2014, the FASB issued ASU No. 2014-09, and added Topic 606, Revenue from Contracts with Customers , to the ASC. ASC 606 supersedes ASC 605, Revenue Recognition , as well as most industry-specific guidance, and prescribes a single, comprehensive revenue recognition model designed to improve financial reporting comparability across entities, industries, jurisdictions and capital markets. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. In July 2015, the FASB voted to defer the implementation of the new guidance for one year. Upon adoption, the guidance will be applied on a full or modified retrospective basis. The Company is currently evaluating the provisions of ASC 606 to understand the impact, if any, to its financial position, results of operations and cash flows upon adoption. Stock Compensation In June 2014, the FASB issued ASU No. 2014-12, an amendment to ASC 718, Compensation - Stock Compensation , which clarifies the accounting for performance awards when the terms of the award provide that a performance target could be achieved after the requisite service period. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company does not expect this standard to have any impact to its financial position, results of operations and cash flows upon adoption. Extraordinary and Unusual Items In January 2015, the FASB issued ASU No. 2015-01, an amendment to ASC 225, Income Statement , which eliminates the concept of extraordinary items and, therefore, removes the requirement for separate presentation, net of tax, after income from continuing operations. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company does not expect this standard to have any impact to its financial position, results of operations and cash flows upon adoption. Consolidation In February 2015, the FASB issued ASU No. 2015-02, an amendment to ASC 810, Consolidation , which changes the consolidation analysis required under U.S. GAAP and reevaluates whether limited partnerships and similar entities must be consolidated. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Upon adoption, the amendment will be applied on a full or modified retrospective basis. The Company is currently evaluating the provisions of ASC 810 to understand the impact, if any, to its financial position, results of operations and cash flows upon adoption. Interest In April 2015, the FASB issued ASU No. 2015-03, an amendment to ASC 835, Interest - Imputation of Interest, which simplifies the presentation of debt issuance costs by requiring them to be presented in the balance sheet as a deduction from the carrying amount of the liability. The amendments do not affect the recognition and measurement guidance for debt issuance costs. The amended guidance becomes effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Upon adoption, the amendment will be applied on a retrospective basis. The Company is currently evaluating the amendments to understand the impact to its financial position, results of operations and cash flows upon adoption. Intangibles In April 2015, the FASB issued ASU No. 2015-05, an amendment to ASC 350, Intangibles - Goodwill and Other - Internal-Use Software, which clarifies the accounting for fees in a cloud computing arrangement. The amendments provide guidance on how an entity should evaluate the accounting for fees paid in a cloud computing arrangement to determine whether an arrangement includes the sale or license of software. The amended guidance becomes effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Upon adoption, the amendments can be applied on a prospective or retrospective basis. The Company is currently evaluating the amendment to understand the impact to its financial position, results of operations and cash flows upon adoption. |
REGULATION
REGULATION | 9 Months Ended |
Jun. 30, 2015 | |
Regulated Operations [Abstract] | |
REGULATION | REGULATION NJNG is subject to cost-based regulation, therefore, it is permitted to recover authorized operating expenses and earn a reasonable return on its utility investment based on the BPU's approval. The impact of the ratemaking process and decisions authorized by the BPU allows NJNG to capitalize or defer certain costs that are expected to be recovered from its customers as regulatory assets and to recognize certain obligations representing amounts that are probable future expenditures as regulatory liabilities in accordance with accounting guidance applicable to regulated operations. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets are comprised of the following: (Thousands) June 30, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 15,685 $ 14,285 Derivatives at fair value, net 13,938 — Underrecovered gas costs — 12,577 Total current regulatory assets $ 29,623 $ 26,862 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 18,095 $ 30,916 Liability for future expenditures 177,000 177,000 Deferred income taxes 9,968 9,968 SAVEGREEN 23,738 29,180 Postemployment and other benefit costs 102,497 108,507 Deferred Superstorm Sandy costs 15,207 15,207 Other noncurrent regulatory assets 5,258 6,797 Total noncurrent regulatory assets $ 351,763 $ 377,575 Overrecovered gas costs $ 3,820 $ — Conservation Incentive Program 7,464 5,752 Derivatives at fair value, net — 320 Total current regulatory liabilities $ 11,284 $ 6,072 Regulatory liabilities-noncurrent Cost of removal obligation $ 49,904 $ 61,163 Derivatives at fair value, net 3,450 57 Conservation programs 11,911 — Other noncurrent regulatory liabilities 968 106 Total noncurrent regulatory liabilities $ 66,233 $ 61,326 NJNG's recovery of costs is facilitated through its base tariff rates, BGSS and other regulatory tariff riders. 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 filings and/or actions that occurred during the current fiscal year include the following: • On October 1, 2014 , NJNG implemented a decrease to its BGSS rate for residential sales and general service small sales customers resulting in a 5 percent decrease to the average residential heat customer's bill. In addition, NJNG reduced its CIP rates resulting in a 4.3 percent decrease to the average residential heat customer's bill. On April 15, 2015 , the BPU approved the BGSS and CIP rates on a final basis. • On October 22, 2014 , the BPU approved, as prudent and reasonable, the deferred O&M storm costs associated with Superstorm Sandy, to be recovered in NJNG's next base rate case to be filed no later than November 15, 2015 . • On December 17, 2014 , NJNG filed a petition with the BPU to extend SAVEGREEN through June 30, 2018 , with minor modifications. On July 22, 2015 , the BPU approved the petition allowing the extension of SAVEGREEN through July 31, 2017 , with an additional $75.2 million in investments and a weighted average cost of capital of 6.69 percent . • On March 18, 2015 , the BPU approved the June 2014 compliance filing associated with SAVEGREEN to maintain the existing rate. On July 31, 2015 , NJNG submitted its 2015 SAVEGREEN rate recovery filing to maintain its existing SAVEGREEN recovery rate. • On March 27, 2015 , NJNG filed a letter petition with the BPU to continue its existing BGSS Incentive Programs, which currently expire October 31, 2015 . • On April 2, 2015 , NJNG filed two petitions with the BPU to construct, operate and finalize the route for its SRL project. On June 5, 2015 , NJNG filed two petitions with the BPU to amend the previously proposed route. • On May 19, 2015 , the BPU approved a decrease to NJNG's SBC rate, resulting in a 3.3 percent decrease to the average residential heat customer's bill, effective June 1, 2015 , and approved the recovery of NJNG's MGP expenditures incurred through June 2014 . The rate includes a reduction in the RA factor from $18.7 million to $8.5 million annually and in the NJCEP factor from $26.8 million to $16.3 million annually. • On May 29, 2015 , NJNG filed a petition with the BPU for NJ RISE to recover costs through July 31, 2015 , resulting in a .03 percent increase to the average residential heat customer's bill, effective November 1, 2015 . • On June 1, 2015 , NJNG filed a petition with the BPU to continue its existing BGSS rate for residential and small commercial customers and to increase its CIP rates resulting in a .08 percent increase to the average residential heat customer's bill effective October 1, 2015 . This petition included notification that NJNG will provide bill credits to residential and small commercial customers during the months of November 2015 through February 2016, as a result of a decline in the wholesale price of natural gas. The amount of the bill credits will be determined during Fiscal 2016, but estimates a reduction of approximately $63.7 million , or an approximate 14.3 percent decrease to the average residential heat customer's bill. • On June 19, 2015 , NJNG submitted its annual USF compliance filing proposing to decrease the statewide USF rate, resulting in a .6 percent decrease to the average residential heat customer’s total bill effective October 1, 2015 . |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company is subject to commodity price risk due to fluctuations in the market price of natural gas, SRECs and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs and electricity. In addition, the Company may utilize foreign currency derivatives as cash flow hedges of Canadian dollar denominated gas purchases and/or sales. These contracts, with a few exceptions as described below, are accounted for as derivatives. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Unaudited Condensed 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 NJRES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS, changes in the fair value of these derivative instruments are recorded as a component of gas purchases or operating revenues, as appropriate for NJRES, on the Unaudited Condensed 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 may utilize foreign currency derivatives to lock in the currency translation rate associated with natural gas transactions denominated in Canadian currency. The derivatives may include currency forwards, futures, or swaps and are accounted for as derivatives. These derivatives may be used to hedge future forecasted cash payments associated with transportation and storage contracts along with purchases of natural gas. The Company designates these foreign currency derivatives as cash flow hedges of that exposure, and expects the hedge relationship to be highly effective throughout the term. Since NJRES designates its foreign exchange contracts as cash flow hedges, changes in fair value of the effective portion of the hedge are recorded in OCI. When the foreign exchange contracts are settled and the related purchases are recognized in income, realized gains and (losses) are recognized in gas purchases on the Unaudited Condensed Consolidated Statements of Operations. As of June 30, 2015 , the Company had no open foreign currency hedges. As a result of NJRES entering into transactions to borrow gas, commonly referred to as “park and loans,” an embedded derivative is created related to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Unaudited Condensed 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 Unaudited Condensed 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 Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is amortized in current period earnings based on the current BPU BGSS factor and therm sales. NJRCEV hedges certain of its expected production of SRECs through forward and futures contracts. The contracts require the Company to physically deliver the SRECs upon settlement. The Company elects NPNS accounting treatment on all SREC forward and futures contracts it enters into during the period. NJRCEV recognizes the related revenue upon transfer of the SREC certificate to the counterparty. In an April 2014 BPU Order, NJNG received regulatory approval to enter into interest rate risk management transactions related to long-term debt securities. On June 1, 2015, NJNG entered into a treasury lock transaction to fix a benchmark interest rate of 3.26 percent associated with the forecasted $125 million debt issuance expected in May 2018. This forecasted debt issuance coincides with the maturity of NJNG's existing $125 million , 5.6 percent notes due May 15, 2018 . The change in fair value of NJNG's treasury lock agreement is recorded as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets since the Company believes that the market value upon settlement will be recovered in future rates. Upon settlement, any gain or loss will be amortized in earnings over the life of the future debt issuance. Fair Value of Derivatives The following table reflects the fair value of NJR's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of: Fair Value June 30, 2015 September 30, 2014 (Thousands) Balance Sheet Location Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: NJRES: Foreign currency contracts Derivatives - current $ — $ — $ — $ 155 Derivatives not designated as hedging instruments: NJNG: Financial commodity contracts Derivatives - current $ 775 $ 14,701 $ 2,525 $ 2,205 Derivatives - noncurrent 545 — 82 25 Interest rate contracts Derivatives - noncurrent $ 2,905 $ — $ — $ — NJRES: Physical forward commodity contracts Derivatives - current 11,007 16,900 15,391 30,778 Derivatives - noncurrent 958 — 35 132 Financial commodity contracts Derivatives - current 26,509 21,388 46,307 46,725 Derivatives - noncurrent 3,569 2,415 5,537 6,533 Fair value of derivatives not designated as hedging instruments $ 46,268 $ 55,404 $ 69,877 $ 86,398 Total fair value of derivatives $ 46,268 $ 55,404 $ 69,877 $ 86,553 Offsetting of Derivatives NJR transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty, however NJR's policy is to present its derivative assets and liabilities on a gross basis in the Unaudited Condensed Consolidated Balance Sheets. The following table summarizes the reported gross amounts, the amounts that NJR has the right to offset but elects not to, financial collateral, as well as the net amounts NJR could present 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 June 30, 2015: Derivative assets: NJRES Physical forward commodity contracts $ 11,965 $ (5,972 ) $ — $ 5,993 Financial commodity contracts 30,078 (23,802 ) — 6,276 Total NJRES $ 42,043 $ (29,774 ) $ — $ 12,269 NJNG Financial commodity contracts $ 1,320 $ (1,320 ) $ — $ — Interest rate contracts $ 2,905 $ — $ — $ 2,905 Total NJNG 4,225 (1,320 ) — 2,905 Derivative liabilities: NJRES Physical forward commodity contracts $ 16,900 $ (5,972 ) $ (1,200 ) $ 9,728 Financial commodity contracts 23,803 (23,803 ) — — Total NJRES $ 40,703 $ (29,775 ) $ (1,200 ) $ 9,728 NJNG Financial commodity contracts $ 14,701 $ (1,320 ) $ (13,381 ) $ — As of September 30, 2014: Derivative assets: NJRES Physical forward commodity contracts $ 15,426 $ (11,531 ) $ — $ 3,895 Financial commodity contracts 51,844 (51,844 ) — — Total NJRES $ 67,270 $ (63,375 ) $ — $ 3,895 NJNG Financial commodity contracts $ 2,607 $ (2,230 ) $ (377 ) $ — Derivative liabilities: NJRES Physical forward commodity contracts $ 30,910 $ (12,058 ) $ (1,200 ) $ 17,652 Financial commodity contracts 53,258 (51,844 ) (1,414 ) — Foreign currency contracts 155 — — 155 Total NJRES $ 84,323 $ (63,902 ) $ (2,614 ) $ 17,807 NJNG Financial commodity contracts $ 2,230 $ (2,230 ) $ — $ — (1) Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Offsetting derivative instruments include: transactions with NAESB netting election, transactions held by 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 Unaudited Condensed Consolidated Statements of Operations as of: (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized in income on derivatives Three Months Ended Nine Months Ended June 30, June 30, Derivatives not designated as hedging instruments: 2015 2014 2015 2014 NJRES: Physical commodity contracts Operating revenues $ 6,183 $ 5,496 $ 21,130 $ (52,502 ) Physical commodity contracts Gas purchases (11,988 ) (7,728 ) (21,781 ) (87,202 ) Financial commodity contracts Gas purchases 2,264 2,293 92,781 (139,406 ) Total unrealized and realized (losses) gains - NJRES $ (3,541 ) $ 61 $ 92,130 $ (279,110 ) The table above does not include (losses) gains associated with NJNG's financial derivatives of $(199,000) and $1.5 million for the three months ended June 30, 2015 and 2014 , respectively, and $(24.7) million and $14.3 million for the nine months ended June 30, 2015 and 2014 , respectively, and the new treasury rate lock of $2.9 million for the three and nine months ended June 30, 2015 . NJNG’s derivative contracts are part of the Company's risk management activities that relate to its natural gas purchases, BGSS incentive programs and debt financing. These transactions are entered into pursuant to regulatory guidance and at settlement the resulting gains and/or losses are payable to and/or recoverable from customers. Any changes in the value of NJNG's financial derivatives are deferred in regulatory assets or liabilities resulting in no impact to earnings. As previously noted, NJRES had no open foreign currency hedge transactions as of June 30, 2015 . However, previously NJRES designated its foreign exchange contracts as cash flow hedges, therefore, changes in fair value of the effective portion of the hedges are recorded in OCI and, upon settlement of the contracts, realized gains and (losses) are reclassified from OCI to gas purchases on the Unaudited Condensed Consolidated Statements of Operations. The following table reflects the effect of derivative instruments designated as cash flow hedges on OCI as of June 30 : (Thousands) Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Amount of Gain or (Loss) Recognized on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Three Months Ended Three Months Ended Three Months Ended June 30, June 30, June 30, Derivatives in cash flow hedging relationships: 2015 2014 2015 2014 2015 2014 Foreign currency contracts $ 3 $ 213 $ 15 $ 44 $ — $ — Nine Months Ended Nine Months Ended Nine Months Ended June 30, June 30, June 30, Derivatives in cash flow hedging relationships: 2015 2014 2015 2014 2015 2014 Foreign currency contracts $ (402 ) $ (247 ) $ 557 $ 209 $ — $ — NJNG and NJRES had the following outstanding long (short) derivatives as of: Volume (Bcf) June 30, September 30, NJNG Futures 26.2 (1) 17.3 NJRES Futures (57.4 ) (62.1 ) Options 1.2 1.2 Physical 58.4 28.6 (1) Not included is the notional amount of $125 million related to NJNG’s treasury lock agreement. Broker Margin Generally, exchange-traded futures contracts require posted collateral, referred to as margin, usually in the form of cash. The amount of margin required is comprised of a fixed initial amount based on exchange requirements and a variable amount based on a daily mark-to-market. The Company maintains separate broker margin accounts for NJNG and NJRES. The balances by company, are as follows: (Thousands) Balance Sheet Location June 30, September 30, NJNG NJNG Broker margin - Current assets $ 17,297 $ 1,057 NJRES NJRES Broker margin - Current assets $ 6,576 $ 26,282 Wholesale Credit Risk NJNG and NJRES are exposed to credit risk as a result of their wholesale marketing activities. In addition, NJRCEV engages in sales of electricity, capacity and SRECs. As a result of the inherent volatility in the prices of natural gas commodities, derivatives and SRECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty failed to perform the obligations under its contract (e.g., failed to deliver or pay for natural gas or SRECs), then the Company could sustain a loss. NJR monitors and manages the credit risk of its wholesale marketing operations through credit policies and procedures that management believes reduce overall credit risk. These policies include a review and evaluation of current and prospective counterparties' financial statements and/or credit ratings, daily monitoring of counterparties' credit limits and exposure, daily communication with traders regarding credit status and the use of credit mitigation measures, such as collateral requirements and netting agreements. Examples of collateral include letters of credit and cash received for either prepayment or margin deposit. Collateral may be requested due to NJR's election not to extend credit or because exposure exceeds defined thresholds. Most of NJR's wholesale marketing contracts contain standard netting provisions. These contracts include those governed by ISDA and the NAESB. The netting provisions refer to payment netting, whereby receivables and payables with the same counterparty are offset and the resulting net amount is paid to the party to which it is due. 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 following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of June 30, 2015 . 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 $ 101,707 Noninvestment grade 11,977 Internally rated investment grade 11,598 Internally rated noninvestment grade 8,974 Total $ 134,256 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 June 30, 2015 and September 30, 2014 , was $40,000 and $39,000 , respectively, for which the Company had not posted collateral. If all thresholds related to the credit-risk-related contingent features underlying these agreements had been invoked on June 30, 2015 and September 30, 2014 , the Company would have been required to post an additional $37,000 and $7,000 , respectively, to its counterparties. These amounts differ from the respective net derivative liabilities reflected on the Unaudited Condensed Consolidated Balance Sheets because the agreements also include clauses, commonly known as “Rights of Offset,” that would permit the Company to offset its derivative assets against its derivative liabilities for determining additional collateral to be posted, as previously discussed. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair Value of Assets and Liabilities The fair value of cash and temporary investments, accounts receivable, current loan receivables, accounts payable, commercial paper and borrowings under revolving credit facilities are estimated to equal their carrying amounts due to the short maturity of those instruments. Non-current loan receivables are recorded based on what the Company expects to receive, which approximates fair value. The Company regularly evaluates the credit quality and collection profile of its customers to approximate fair value. The estimated fair value of long-term debt, including current maturities and excluding capital leases is as follows: (Thousands) June 30, September 30, Carrying value (1) $ 832,845 $ 557,845 Fair market value $ 839,710 $ 586,909 (1) Excludes capital leases of $50.7 million and $49.9 million as of June 30, 2015 and September 30, 2014 , respectively. NJR utilizes a discounted cash flow method to determine the fair value of its debt. Inputs include observable municipal and corporate yields, as appropriate for the maturity of the specific issue and the Company's credit rating. As of June 30, 2015 , NJR discloses its debt within Level 2 of the fair value hierarchy. Fair Value Hierarchy NJR applies fair value measurement guidance to its financial assets and liabilities, as appropriate, which include financial derivatives and physical commodity contracts qualifying as derivatives, available for sale securities and other financial assets and liabilities. In addition, authoritative accounting literature prescribes the use of a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on the source of the data used to develop the price inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and include the following: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets. NJR's Level 1 assets and liabilities include exchange traded futures and options contracts, listed equities, and money market funds. Exchange traded futures and options contracts include all energy contracts traded on the NYMEX/CME and ICE that NJR refers internally to as basis swaps, fixed swaps, futures and financial options that are cleared through a FCM. Level 2 Other significant observable inputs such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services. NJR's Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). NJNG's treasury lock is also considered Level 2 as valuation is based on quoted market interest and swap rates as inputs to the valuation model. Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input 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. Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Thousands) (Level 1) (Level 2) (Level 3) Total As of June 30, 2015: Assets: Physical forward commodity contracts $ — $ 11,965 $ — $ 11,965 Financial derivative contracts - natural gas 31,398 — — 31,398 Interest rate contracts — 2,905 — 2,905 Available for sale equity securities - energy industry (1) 9,892 — — 9,892 Other (2) 47,513 — — 47,513 Total assets at fair value $ 88,803 $ 14,870 $ — $ 103,673 Liabilities: Physical forward commodity contracts $ — $ 16,900 $ — $ 16,900 Financial commodity contracts - natural gas 38,504 — — 38,504 Total liabilities at fair value $ 38,504 $ 16,900 $ — $ 55,404 As of September 30, 2014: Assets: Physical forward commodity contracts $ — $ 15,426 $ — $ 15,426 Financial derivative contracts - natural gas 54,451 — — 54,451 Available for sale equity securities - energy industry (1) 10,672 — — 10,672 Other (2) 1,299 — — 1,299 Total assets at fair value $ 66,422 $ 15,426 $ — $ 81,848 Liabilities: Physical forward commodity contracts $ — $ 30,910 $ — $ 30,910 Financial commodity contracts - natural gas 55,488 — — 55,488 Financial commodity contracts - foreign exchange — 155 — 155 Total liabilities at fair value $ 55,488 $ 31,065 $ — $ 86,553 (1) Included in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. (2) Includes various money market funds in Level 1. |
INVESTMENTS IN EQUITY INVESTEES
INVESTMENTS IN EQUITY INVESTEES | 9 Months Ended |
Jun. 30, 2015 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS IN EQUITY INVESTEES | INVESTMENTS IN EQUITY INVESTEES NJR's investments in equity investees includes the following investments as of: (Thousands) June 30, September 30, Steckman Ridge (1) $ 126,037 $ 128,413 Iroquois 23,006 24,042 PennEast 2,880 555 Total $ 151,923 $ 153,010 (1) Includes loans with a total outstanding principal balance of $70.4 million for both June 30, 2015 and September 30, 2014 . The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2023. NJR, through a subsidiary, NJR Pipeline Company, formed PennEast with five other investors, and plans to construct and operate a 115 -mile pipeline that will extend from northeast Pennsylvania to western New Jersey. 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 14. Related Party Transactions for more information on these intercompany transactions. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table presents the calculation of the Company's basic and diluted earnings per share for: Three Months Ended Nine Months Ended June 30, June 30, (Thousands, except per share amounts) 2015 2014 2015 2014 Net (loss) income, as reported $ (7,460 ) $ (14,274 ) $ 176,763 $ 166,390 Basic earnings per share Weighted average shares of common stock outstanding-basic 85,449 84,234 85,110 84,144 Basic (loss) earnings per common share $(0.09) $(0.17) $2.08 $1.98 Diluted earnings per share Weighted average shares of common stock outstanding-basic 85,449 84,234 85,110 84,144 Incremental shares (1) — — 1,018 768 Weighted average shares of common stock outstanding-diluted 85,449 84,234 86,128 84,912 Diluted (loss) earnings per common share (2) $(0.09) $(0.17) $2.05 $1.96 (1) Incremental shares consist primarily of stock awards and performance shares. (2) Since there was a net loss for the three months ended June 30, 2015 , and 2014 , incremental shares of 1,018 and 768 , respectively, were not included in the computation of diluted loss per common share, as their effect would have been anti-dilutive. There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for the nine months ended June 30, 2015 , and 2014 . |
COMMON STOCK EQUITY
COMMON STOCK EQUITY | 9 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
COMMON STOCK EQUITY | COMMON STOCK EQUITY Changes in common stock equity during the nine months ended June 30, 2015 , are as follows: (Thousands) Number of Shares Common Stock Premium on Common Stock Accumulated Other Comprehensive (Loss) Income Treasury Stock And Other Retained Earnings Total Balance as of September 30, 2014 84,356 $ 218,223 $ 199,739 $ (5,594 ) $ (121,031 ) $ 674,829 $ 966,166 Net income 176,763 176,763 Other comprehensive income 364 364 Common stock issued under stock plans 1,378 2,607 12,972 13,784 29,363 Tax benefits from stock plans (1,386 ) (1,386 ) Cash dividend declared ($.68 per share) (57,517 ) (57,517 ) Treasury stock and other (333 ) 9,559 9,559 Balance as of June 30, 2015 85,401 $ 220,830 $ 211,325 $ (5,230 ) $ (97,688 ) $ 794,075 $ 1,123,312 NJR satisfies its external common equity requirements, if any, through issuances of its common stock, including the proceeds from stock issuances under its DRP. The DRP allows NJR, at its option, to use treasury shares or newly issued shares to raise capital. NJR raised $13.1 million and $10.9 million of equity through the DRP, by issuing approximately 330,000 and 235,000 shares of treasury stock, during the nine months ended June 30, 2015 and 2014 , respectively. During the nine months ended June 30, 2015 , NJR also raised approximately $19.8 million of equity by issuing approximately 344,000 new shares through the waiver discount feature of the DRP. NJR issued no new shares through the waiver discount feature during the nine months ended June 30, 2014 . Accumulated Other Comprehensive Income The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects: (Thousands) Available for Sale Securities Cash Flow Hedges Postemployment Benefit Obligation Total Balance as of September 30, 2014 $ 4,782 $ (93 ) $ (10,283 ) $ (5,594 ) Other comprehensive income, net of tax Other comprehensive (loss), before reclassifications, net of tax of $319, $146, $0, $465 (461 ) (256 ) — (717 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(202), $(506), $(708) — 349 (1) 732 (2) 1,081 Net current-period other comprehensive (loss) income, net of tax of $319, $(56), $(506), $(243) (461 ) 93 732 364 Balance as of June 30, 2015 $ 4,321 $ — $ (9,551 ) $ (5,230 ) Balance as of September 30, 2013 $ 5,400 $ 12 $ (7,033 ) $ (1,621 ) Other comprehensive income, net of tax Other comprehensive income (loss), before reclassifications, net of tax of $(150), $91, $0, $(59) 216 (156 ) — 60 Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(77), $(334), $(411) — 132 (1) 483 (2) 615 Net current-period other comprehensive income (loss), net of tax of $(150), $14, $(334), $(470) 216 (24 ) 483 675 Balance as of June 30, 2014 $ 5,616 $ (12 ) $ (6,550 ) $ (946 ) (1) Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases in the Unaudited Condensed Consolidated Statements of Operations. (2) Included in the computation of net periodic pension cost, a component of operations and maintenance expense in the Unaudited Condensed Consolidated Statements of Operations. |
DEBT
DEBT | 9 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT NJR and NJNG finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program, committed unsecured credit facilities and private placement debt shelf facilities. Credit Facilities A summary of NJR's credit facility and NJNG's commercial paper program and credit facility are as follows: (Thousands) June 30, September 30, Expiration Dates NJR Bank revolving credit facilities (1) $ 425,000 $ 425,000 August 2017 Notes outstanding at end of period $ — $ 148,000 Weighted average interest rate at end of period — % 1.08 % Amount available at end of period (2) $ 412,345 $ 256,484 Bank revolving credit facilities (3) $ 100,000 $ — October 2015 Amount available at end of period $ 100,000 $ — NJNG Bank revolving credit facilities (1) $ 250,000 $ 250,000 May 2019 Commercial paper outstanding at end of period $ — $ 153,000 Weighted average interest rate at end of period — % 0.12 % Amount available at end of period (4) $ 249,269 $ 96,269 (1) Committed credit facilities, which require commitment fees on the unused amounts. (2) Letters of credit outstanding total $12.7 million and $20.5 million as of June 30, 2015 and September 30, 2014 , respectively, which reduces amount available by the same amount. (3) Uncommitted credit facilities, which require no commitment fees. (4) Letters of credit outstanding total $731,000 and $731,000 as of June 30, 2015 and September 30, 2014 , respectively, which reduces the amount available by the same amount. On October 24, 2014 , NJR entered into a $100 million uncommitted line of credit agreement, with Santander Bank, N.A., expiring on October 24, 2015 . Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities. NJR Long-term Debt Under the Prudential Facility, as of June 30, 2015 , NJR had $50 million in notes outstanding at 3.25 percent due on September 17, 2022 , and on November 7, 2014 , NJR issued an additional $100 million in notes at 3.48 percent due on November 7, 2024 . On September 26, 2013 , NJR entered into an unsecured, uncommitted $100 million private placement shelf note agreement allowing NJR to issue senior notes during a three -year issuance period ending September 26, 2016 . As of June 30, 2015 , $100 million remains available for borrowing under this facility. As of June 30, 2015 , NJR had two series of notes outstanding under an unsecured, uncommitted private placement shelf note agreement, which expired in May 2013 , in the amounts of $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 . NJNG Long-term Debt On April 15, 2015 , NJNG issued $50 million of 2.82 percent senior notes due April 15, 2025 , and $100 million of 3.66 percent senior notes due April 15, 2045 , secured by FMB in the private placement market pursuant to a note purchase agreement entered into on February 12, 2015. The proceeds of the notes will be used for general corporate purposes, to refinance or retire debt and to fund capital expenditure requirements. On March 13, 2014 , NJNG issued $70 million of 3.58 percent senior notes due March 13, 2024 , and $55 million of 4.61 percent senior notes due March 13, 2044 , secured by FMB in the private placement market pursuant to a note purchase agreement entered into on February 7, 2014. NJNG received $7.2 million and $7.6 million in December 2014 and 2013 , respectively, in connection with the sale-leaseback of its natural gas meters. NJNG records a capital lease obligation that is paid over the term of the lease and has the option to purchase the meters back at fair value upon expiration of the lease. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension and Other Postemployment Benefit Plans The components of the net periodic cost for pension benefits, including the Company's Pension Equalization Plan, and OPEB costs (principally health care and life insurance) for employees and covered dependents were as follows: Pension OPEB Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended June 30, June 30, June 30, June 30, (Thousands) 2015 2014 2015 2014 2015 2014 2015 2014 Service cost $ 1,872 $ 1,536 $ 5,614 $ 4,608 $ 1,063 $ 980 $ 3,190 $ 2,942 Interest cost 2,549 2,517 7,649 7,550 1,434 1,434 4,304 4,300 Expected return on plan assets (4,272 ) (3,869 ) (12,817 ) (11,607 ) (1,245 ) (1,043 ) (3,733 ) (3,130 ) Recognized actuarial loss 1,747 1,399 5,239 4,197 737 625 2,208 1,875 Prior service cost amortization 28 27 83 83 (91 ) (89 ) (273 ) (267 ) Recognized net initial obligation — — — — — 3 — 8 Net periodic benefit cost $ 1,924 $ 1,610 $ 5,768 $ 4,831 $ 1,898 $ 1,910 $ 5,696 $ 5,728 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, which includes the most recent mortality table change; however, funding requirements are uncertain and can depend significantly on changes in actuarial assumptions, returns on plan assets, interest rates and changes in the demographics of eligible employees and covered dependents. In addition, as in the past, the Company may elect to make contributions in excess of the minimum required amount to the plans. There were no discretionary contributions made during the nine months ended June 30, 2015 and 2014 . |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with unrecognized tax benefits. During the nine months ended June 30, 2015 and 2014 , based on its analysis, the Company determined there was no need to recognize any liabilities associated with uncertain tax positions. The effective tax rates for the nine months ended June 30, 2015 and 2014 , were 24.3 percent and 28.2 percent , respectively. The decreased tax rate is due primarily to an increase in the ITCs, net of deferred taxes, and the PTCs that were forecasted as of June 30, 2015 , of $22.8 million and $2.1 million , respectively compared with ITCs, net of deferred taxes, and the PTCs that were forecasted as of June 30, 2014 of $17.9 million and $187,000 , respectively. To calculate the estimated annual effective tax rate, NJR considers tax credits associated with solar and wind projects. For investment tax credits the estimate is based on solar projects that are probable of being completed and placed in service during the current fiscal year based on the best information available at each reporting period. For production tax credits the estimate is based on the forecast of electricity produced during the current fiscal year based on the best information available at each reporting period. The estimate includes an assessment of various factors, such as board of director approval, status of contractual agreements, permitting, regulatory approval and interconnection. Adjustments to the effective tax rate and management's estimates will occur as information and assumptions change. As of June 30, 2015 , the Company has total state income tax net operating losses of approximately $191 million , which generally have a life of 20 years. The Company has recorded a deferred state tax asset of approximately $11.2 million on the Unaudited Condensed Consolidated Balance Sheets, reflecting the tax benefit associated with the loss carryforwards. In addition, as of June 30, 2015 , the Company has recorded a valuation allowance of $200,000 because it believes that it is more likely than not that the deferred tax assets related to CR&R and NJR will expire unused. As of September 30, 2014 , the Company had total state income tax net operating losses of approximately $153.2 million , a deferred state tax asset of approximately $9 million and a valuation allowance of $212,000 . In addition, as of September 30, 2014 , the Company had an ITC carryforward of approximately $7.5 million , all of which was generated in fiscal year 2014 , and has a life of 20 years. The Company expects to utilize this entire carryforward in fiscal 2015. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Cash Commitments NJNG has entered into long-term contracts, expiring at various dates through October 2032 , for the supply, storage and transportation of natural gas. These contracts include annual fixed charges of approximately $20 million at current contract rates and volumes, which are recoverable through BGSS. For the purpose of securing storage and pipeline capacity, NJRES enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by NJRES to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one to 10 years. Demand charges are established by interstate storage and pipeline operators and are regulated by the FERC. These demand charges represent commitments to pay storage providers or pipeline companies for the right to store and/or transport natural gas utilizing their respective assets. Commitments as of June 30, 2015 , 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 $ 114,201 $ 147,187 $ 4,811 $ — $ — $ — Storage demand fees 8,761 25,415 10,945 6,942 4,202 7,179 Pipeline demand fees 23,176 59,397 32,485 15,393 7,523 8,157 Sub-total NJRES $ 146,138 $ 231,999 $ 48,241 $ 22,335 $ 11,725 $ 15,336 NJNG: Natural gas purchases $ 12,662 $ 72,705 $ 79,911 $ 49,492 $ 50,008 $ 165,917 Storage demand fees 7,205 29,032 25,336 15,872 11,079 5,345 Pipeline demand fees 12,806 79,877 54,358 88,956 90,235 872,460 Sub-total NJNG $ 32,673 $ 181,614 $ 159,605 $ 154,320 $ 151,322 $ 1,043,722 Total (1) $ 178,811 $ 413,613 $ 207,846 $ 176,655 $ 163,047 $ 1,059,058 (1) Does not include amounts related to intercompany asset management agreements between NJRES and NJNG. 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 September 2014, NJNG requested approval of its MGP expenditures incurred through June 2014 , as well as a reduction in the RA factor from $18.7 million to $8.5 million annually. The petition was approved by the BPU on May 19, 2015 , with rates effective June 1, 2015 . As of June 30, 2015 , $18.1 million of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Unaudited Condensed Consolidated Balance Sheets. NJNG 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 June 30, 2015 , NJNG recorded an MGP remediation liability and a corresponding regulatory asset of $177 million on the Unaudited Condensed Consolidated Balance Sheets, based on the most likely amount. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and any insurance recoveries. NJNG will continue to seek recovery of MGP-related costs through the RA. If any future regulatory position indicates that the recovery of such costs is not probable, the related non-recoverable costs would be charged to income in the period of such determination. General The Company is party to various other claims, legal actions and complaints arising in the ordinary course of business. In the Company's opinion, the ultimate disposition of these matters will not have a material effect on its financial condition, results of operations or cash flows. |
BUSINESS SEGMENT AND OTHER OPER
BUSINESS SEGMENT AND OTHER OPERATIONS DATA | 9 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT AND OTHER OPERATIONS DATA | BUSINESS SEGMENT AND OTHER OPERATIONS DATA NJR organizes its businesses based on its products and services as well as 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: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2015 2014 2015 2014 Operating revenues Natural Gas Distribution External customers $ 116,307 $ 111,383 $ 699,737 $ 739,380 Energy Services External customers (1) 320,221 560,115 1,546,890 2,367,641 Intercompany 1,554 518 60,777 72,285 Clean Energy Ventures External customers 7,861 3,155 18,164 8,007 Subtotal 445,943 675,171 2,325,568 3,187,313 Home Services and Other External customers 14,078 13,604 30,890 31,203 Intercompany 514 194 1,300 693 Eliminations (2,068 ) (712 ) (62,077 ) (72,978 ) Total $ 458,467 $ 688,257 $ 2,295,681 $ 3,146,231 Depreciation and amortization Natural Gas Distribution $ 10,810 $ 10,567 $ 32,002 $ 30,374 Energy Services 23 15 68 40 Clean Energy Ventures 4,504 2,823 12,392 7,969 Midstream 1 1 4 4 Subtotal 15,338 13,406 44,466 38,387 Home Services and Other 238 212 714 627 Eliminations (2 ) 2 (16 ) — Total $ 15,574 $ 13,620 $ 45,164 $ 39,014 Interest income (2) Natural Gas Distribution $ (25 ) $ 137 $ 75 $ 579 Energy Services 250 210 263 210 Clean Energy Ventures — — 22 — Midstream 246 171 727 709 Subtotal 471 518 1,087 1,498 Home Services and Other 13 1 214 1 Eliminations (509 ) (241 ) (990 ) (709 ) Total $ (25 ) $ 278 $ 311 $ 790 (1) Includes sales to Canada, which accounted for 3.6 percent of total operating revenues during the nine months ended June 30, 2015 and 2014 . (2) Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2015 2014 2015 2014 Interest expense, net of capitalized interest Natural Gas Distribution $ 5,005 $ 4,540 $ 14,002 $ 12,412 Energy Services 209 166 1,010 1,443 Clean Energy Ventures 2,078 1,382 5,556 3,817 Midstream 163 333 623 1,108 Subtotal 7,455 6,421 21,191 18,780 Home Services and Other 134 86 76 328 Eliminations $ (262 ) $ — $ (262 ) $ — Total $ 7,327 $ 6,507 $ 21,005 $ 19,108 Income tax (benefit) provision Natural Gas Distribution $ 3,754 $ 4,348 $ 41,698 $ 42,256 Energy Services (9,958 ) (16,256 ) 39,842 36,816 Clean Energy Ventures (423 ) 1,286 (29,186 ) (18,146 ) Midstream 1,737 1,321 5,048 3,890 Subtotal (4,890 ) (9,301 ) 57,402 64,816 Home Services and Other 720 1,680 (704 ) 360 Eliminations (148 ) (187 ) (5 ) 201 Total $ (4,318 ) $ (7,808 ) $ 56,693 $ 65,377 Equity in earnings of affiliates Midstream $ 4,266 $ 3,511 $ 12,622 $ 10,594 Eliminations (899 ) (830 ) (2,873 ) (2,538 ) Total $ 3,367 $ 2,681 $ 9,749 $ 8,056 Net financial earnings (loss) Natural Gas Distribution $ 7,172 $ 4,882 $ 83,952 $ 79,564 Energy Services (5,270 ) (8,628 ) 47,482 90,153 Clean Energy Ventures (3,792 ) 3,865 18,226 20,286 Midstream 2,487 1,896 7,211 5,584 Subtotal 597 2,015 156,871 195,587 Home Services and Other 1,909 2,485 (42 ) 708 Eliminations (29 ) 14 (100 ) — Total $ 2,477 $ 4,514 $ 156,729 $ 196,295 Capital expenditures Natural Gas Distribution $ 45,749 $ 38,186 $ 115,740 $ 109,071 Clean Energy Ventures 23,218 46,166 111,588 91,569 Subtotal 68,967 84,352 227,328 200,640 Home Services and Other 29 159 90 636 Total $ 68,996 $ 84,511 $ 227,418 $ 201,276 Investments in equity investees Midstream $ 1,049 $ — $ 2,313 $ — Total $ 1,049 $ — $ 2,313 $ — The chief operating decision maker of the Company is 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. A reconciliation of consolidated NFE to consolidated net income is as follows: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2015 2014 2015 2014 Consolidated net financial earnings $ 2,477 $ 4,514 $ 156,729 $ 196,295 Less: Unrealized loss (gain) from derivative instruments and related transactions 1,188 (6,585 ) (19,010 ) 45,811 Effects of economic hedging related to natural gas inventory 16,464 38,139 (15,751 ) (3,409 ) Tax adjustments (7,715 ) (12,766 ) 14,727 (12,497 ) Consolidated net (loss) income $ (7,460 ) $ (14,274 ) $ 176,763 $ 166,390 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. NJR also calculates a quarterly tax adjustment based on an estimated annual effective tax rate for NFE purposes. The Company's assets for the various business segments and business operations are detailed below: (Thousands) June 30, September 30, Assets at end of period: Natural Gas Distribution $ 2,239,870 $ 2,143,684 Energy Services 261,485 457,080 Clean Energy Ventures 490,090 380,707 Midstream 152,593 153,891 Subtotal 3,144,038 3,135,362 Home Services and Other 115,005 82,413 Intercompany assets (1) (50,119 ) (58,971 ) Total $ 3,208,924 $ 3,158,804 (1) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS NJRES may periodically enter into storage or park and loan agreements with its affiliated FERC-regulated natural gas storage facility, Steckman Ridge, or transportation agreements with its affiliated FERC-regulated interstate pipeline, Iroquois. As of June 30, 2015 , NJRES has entered into storage and park and loan transactions with Steckman Ridge for varying terms, all of which will expire by October 31, 2020 . Additionally, NJRES has transportation capacity with Iroquois that expires by October 31, 2020 . Demand fees, net of eliminations, associated with both Steckman Ridge and Iroquois were $4.7 million and $2.2 million during the nine months ended June 30, 2015 and 2014 , respectively. As of June 30, 2015 , NJRES had demand fees payable of $162,000 and $406,000 to Steckman Ridge and Iroquois, respectively, which are included in gas purchases payable. As of September 30, 2014 , fees payable to Steckman Ridge and Iroquois, were $187,000 and $389,000 , respectively. In January 2010 , NJNG entered into a 10 -year agreement effective April 1, 2010 , for 3 Bcf of firm storage capacity with Steckman Ridge. Under the terms of the agreement, NJNG incurs demand fees, at market rates, of approximately $9.3 million annually, a portion of which is eliminated in consolidation. These fees are recoverable through NJNG's BGSS mechanism and are included in regulatory assets. Additionally, NJNG has transportation capacity with Iroquois that expires by January 31, 2019 . Demand fees, net of eliminations, associated with both Steckman Ridge and Iroquois were $4.7 million and $7.3 million during the nine months ended June 30, 2015 and 2014 , respectively. NJNG had demand fees payable to both Steckman Ridge and Iroquois in the amount of $848,000 and $823,000 as of June 30, 2015 and September 30, 2014 , respectively. NJNG and NJRES have entered into various asset management agreements. Under the terms of these agreements, NJNG releases certain transportation and storage contracts to NJRES for the entire term of the agreements. NJNG retains the right to purchase market priced or fixed price storage gas from NJRES. As of June 30, 2015 , NJNG and NJRES had three asset management agreements with expiration dates ranging from October 2015 through March 2016 . In the fourth quarter of fiscal 2014, NJNG entered into a 15 year transportation precedent agreement for committed capacity of 180,000 dths per day with PennEast with an estimated service date of November 1, 2017 . |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Available for Sale Securities | Available for Sale Securities Included in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets are certain investments in equity securities of a publicly traded energy company that have a fair value of $9.9 million and $10.7 million as of June 30, 2015 and September 30, 2014 , 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 $7.3 million , or $4.3 million after tax, and $8.1 million , or $4.8 million after tax, as of June 30, 2015 and September 30, 2014 , respectively. Reclassifications of realized gains out of other comprehensive income into income are determined based on average cost. |
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 Unaudited Condensed Consolidated Balance Sheets. The Company has recorded $5.2 million and $3.9 million in other current assets and $33.7 million and $27.3 million in other noncurrent assets as of June 30, 2015 and September 30, 2014 , respectively, on the Unaudited Condensed Consolidated Balance Sheets, related to the loans. NJR's policy is to establish an allowance for doubtful accounts when loan balances are in arrears for more than 60 days . As of June 30, 2015 and September 30, 2014 , there was no allowance for doubtful accounts established for the SAVEGREEN loans. |
Recent Updates to the Accounting Standards Codification | Recent Updates to the Accounting Standards Codification Income Taxes In July 2013, the FASB issued ASU No. 2013-11, an amendment to ASC 740, Income Taxes , which clarifies financial statement presentation for unrecognized tax benefits. The ASU requires that an unrecognized tax benefit, or portion thereof, shall be presented in the balance sheet as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss or a tax credit carryforward. To the extent such a deferred tax asset is not available or the Company does not intend to use it to settle any additional taxes that would result from the disallowance of a tax position, the related unrecognized tax benefit will be presented as a liability in the financial statements. The amended guidance became effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company currently does not have unrecognized tax benefits recorded on its balance sheet and there was no impact to its financial position upon adoption. Discontinued Operations In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity . The new guidance 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 this standard to have any impact to its financial position, results of operations and cash flows upon adoption. Revenue In May 2014, the FASB issued ASU No. 2014-09, and added Topic 606, Revenue from Contracts with Customers , to the ASC. ASC 606 supersedes ASC 605, Revenue Recognition , as well as most industry-specific guidance, and prescribes a single, comprehensive revenue recognition model designed to improve financial reporting comparability across entities, industries, jurisdictions and capital markets. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. In July 2015, the FASB voted to defer the implementation of the new guidance for one year. Upon adoption, the guidance will be applied on a full or modified retrospective basis. The Company is currently evaluating the provisions of ASC 606 to understand the impact, if any, to its financial position, results of operations and cash flows upon adoption. Stock Compensation In June 2014, the FASB issued ASU No. 2014-12, an amendment to ASC 718, Compensation - Stock Compensation , which clarifies the accounting for performance awards when the terms of the award provide that a performance target could be achieved after the requisite service period. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company does not expect this standard to have any impact to its financial position, results of operations and cash flows upon adoption. Extraordinary and Unusual Items In January 2015, the FASB issued ASU No. 2015-01, an amendment to ASC 225, Income Statement , which eliminates the concept of extraordinary items and, therefore, removes the requirement for separate presentation, net of tax, after income from continuing operations. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company does not expect this standard to have any impact to its financial position, results of operations and cash flows upon adoption. Consolidation In February 2015, the FASB issued ASU No. 2015-02, an amendment to ASC 810, Consolidation , which changes the consolidation analysis required under U.S. GAAP and reevaluates whether limited partnerships and similar entities must be consolidated. The new guidance will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Upon adoption, the amendment will be applied on a full or modified retrospective basis. The Company is currently evaluating the provisions of ASC 810 to understand the impact, if any, to its financial position, results of operations and cash flows upon adoption. Interest In April 2015, the FASB issued ASU No. 2015-03, an amendment to ASC 835, Interest - Imputation of Interest, which simplifies the presentation of debt issuance costs by requiring them to be presented in the balance sheet as a deduction from the carrying amount of the liability. The amendments do not affect the recognition and measurement guidance for debt issuance costs. The amended guidance becomes effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Upon adoption, the amendment will be applied on a retrospective basis. The Company is currently evaluating the amendments to understand the impact to its financial position, results of operations and cash flows upon adoption. Intangibles In April 2015, the FASB issued ASU No. 2015-05, an amendment to ASC 350, Intangibles - Goodwill and Other - Internal-Use Software, which clarifies the accounting for fees in a cloud computing arrangement. The amendments provide guidance on how an entity should evaluate the accounting for fees paid in a cloud computing arrangement to determine whether an arrangement includes the sale or license of software. The amended guidance becomes effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Upon adoption, the amendments can be applied on a prospective or retrospective basis. The Company is currently evaluating the amendment to understand the impact to its financial position, results of operations and cash flows upon adoption. |
Derivatives | The Company is subject to commodity price risk due to fluctuations in the market price of natural gas, SRECs and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs and electricity. In addition, the Company may utilize foreign currency derivatives as cash flow hedges of Canadian dollar denominated gas purchases and/or sales. These contracts, with a few exceptions as described below, are accounted for as derivatives. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Unaudited Condensed 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 NJRES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS, changes in the fair value of these derivative instruments are recorded as a component of gas purchases or operating revenues, as appropriate for NJRES, on the Unaudited Condensed 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 may utilize foreign currency derivatives to lock in the currency translation rate associated with natural gas transactions denominated in Canadian currency. The derivatives may include currency forwards, futures, or swaps and are accounted for as derivatives. These derivatives may be used to hedge future forecasted cash payments associated with transportation and storage contracts along with purchases of natural gas. The Company designates these foreign currency derivatives as cash flow hedges of that exposure, and expects the hedge relationship to be highly effective throughout the term. Since NJRES designates its foreign exchange contracts as cash flow hedges, changes in fair value of the effective portion of the hedge are recorded in OCI. When the foreign exchange contracts are settled and the related purchases are recognized in income, realized gains and (losses) are recognized in gas purchases on the Unaudited Condensed Consolidated Statements of Operations. As of June 30, 2015 , the Company had no open foreign currency hedges. As a result of NJRES entering into transactions to borrow gas, commonly referred to as “park and loans,” an embedded derivative is created related to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Unaudited Condensed 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 Unaudited Condensed 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 Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is amortized in current period earnings based on the current BPU BGSS factor and therm sales. NJRCEV hedges certain of its expected production of SRECs through forward and futures contracts. The contracts require the Company to physically deliver the SRECs upon settlement. The Company elects NPNS accounting treatment on all SREC forward and futures contracts it enters into during the period. NJRCEV recognizes the related revenue upon transfer of the SREC certificate to the counterparty. |
Fair Value Hierarchy | Fair Value Hierarchy NJR applies fair value measurement guidance to its financial assets and liabilities, as appropriate, which include financial derivatives and physical commodity contracts qualifying as derivatives, available for sale securities and other financial assets and liabilities. In addition, authoritative accounting literature prescribes the use of a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on the source of the data used to develop the price inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and include the following: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets. NJR's Level 1 assets and liabilities include exchange traded futures and options contracts, listed equities, and money market funds. Exchange traded futures and options contracts include all energy contracts traded on the NYMEX/CME and ICE that NJR refers internally to as basis swaps, fixed swaps, futures and financial options that are cleared through a FCM. Level 2 Other significant observable inputs such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services. NJR's Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). NJNG's treasury lock is also considered Level 2 as valuation is based on quoted market interest and swap rates as inputs to the valuation model. Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input 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. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Utility Inventory | The following table summarizes gas in storage, at average cost by company as of: June 30, September 30, ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf NJRES $ 81,829 36.6 $ 191,250 56.5 NJNG 35,286 12.1 86,266 21.3 Total $ 117,115 48.7 $ 277,516 77.8 |
Accounts Receivable by Subsidiary | Customer accounts receivable include outstanding billings from the following subsidiaries as of: (Thousands) June 30, September 30, NJRES $ 114,531 58 % $ 142,566 75 % NJNG (1) 76,716 39 41,281 22 NJRCEV 898 — 594 — NJRHS and other 4,941 3 5,529 3 Total $ 197,086 100 % $ 189,970 100 % (1) Does not include unbilled revenues of $6.7 million and $7.2 million as of June 30, 2015 and September 30, 2014 , respectively. |
REGULATION (Tables)
REGULATION (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets and Liabilities | Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets are comprised of the following: (Thousands) June 30, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 15,685 $ 14,285 Derivatives at fair value, net 13,938 — Underrecovered gas costs — 12,577 Total current regulatory assets $ 29,623 $ 26,862 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 18,095 $ 30,916 Liability for future expenditures 177,000 177,000 Deferred income taxes 9,968 9,968 SAVEGREEN 23,738 29,180 Postemployment and other benefit costs 102,497 108,507 Deferred Superstorm Sandy costs 15,207 15,207 Other noncurrent regulatory assets 5,258 6,797 Total noncurrent regulatory assets $ 351,763 $ 377,575 Overrecovered gas costs $ 3,820 $ — Conservation Incentive Program 7,464 5,752 Derivatives at fair value, net — 320 Total current regulatory liabilities $ 11,284 $ 6,072 Regulatory liabilities-noncurrent Cost of removal obligation $ 49,904 $ 61,163 Derivatives at fair value, net 3,450 57 Conservation programs 11,911 — Other noncurrent regulatory liabilities 968 106 Total noncurrent regulatory liabilities $ 66,233 $ 61,326 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
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 Unaudited Condensed Consolidated Balance Sheets as of: Fair Value June 30, 2015 September 30, 2014 (Thousands) Balance Sheet Location Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: NJRES: Foreign currency contracts Derivatives - current $ — $ — $ — $ 155 Derivatives not designated as hedging instruments: NJNG: Financial commodity contracts Derivatives - current $ 775 $ 14,701 $ 2,525 $ 2,205 Derivatives - noncurrent 545 — 82 25 Interest rate contracts Derivatives - noncurrent $ 2,905 $ — $ — $ — NJRES: Physical forward commodity contracts Derivatives - current 11,007 16,900 15,391 30,778 Derivatives - noncurrent 958 — 35 132 Financial commodity contracts Derivatives - current 26,509 21,388 46,307 46,725 Derivatives - noncurrent 3,569 2,415 5,537 6,533 Fair value of derivatives not designated as hedging instruments $ 46,268 $ 55,404 $ 69,877 $ 86,398 Total fair value of derivatives $ 46,268 $ 55,404 $ 69,877 $ 86,553 |
Offsetting Assets and Liabilities | The following table summarizes the reported gross amounts, the amounts that NJR has the right to offset but elects not to, financial collateral, as well as the net amounts NJR could present 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 June 30, 2015: Derivative assets: NJRES Physical forward commodity contracts $ 11,965 $ (5,972 ) $ — $ 5,993 Financial commodity contracts 30,078 (23,802 ) — 6,276 Total NJRES $ 42,043 $ (29,774 ) $ — $ 12,269 NJNG Financial commodity contracts $ 1,320 $ (1,320 ) $ — $ — Interest rate contracts $ 2,905 $ — $ — $ 2,905 Total NJNG 4,225 (1,320 ) — 2,905 Derivative liabilities: NJRES Physical forward commodity contracts $ 16,900 $ (5,972 ) $ (1,200 ) $ 9,728 Financial commodity contracts 23,803 (23,803 ) — — Total NJRES $ 40,703 $ (29,775 ) $ (1,200 ) $ 9,728 NJNG Financial commodity contracts $ 14,701 $ (1,320 ) $ (13,381 ) $ — As of September 30, 2014: Derivative assets: NJRES Physical forward commodity contracts $ 15,426 $ (11,531 ) $ — $ 3,895 Financial commodity contracts 51,844 (51,844 ) — — Total NJRES $ 67,270 $ (63,375 ) $ — $ 3,895 NJNG Financial commodity contracts $ 2,607 $ (2,230 ) $ (377 ) $ — Derivative liabilities: NJRES Physical forward commodity contracts $ 30,910 $ (12,058 ) $ (1,200 ) $ 17,652 Financial commodity contracts 53,258 (51,844 ) (1,414 ) — Foreign currency contracts 155 — — 155 Total NJRES $ 84,323 $ (63,902 ) $ (2,614 ) $ 17,807 NJNG Financial commodity contracts $ 2,230 $ (2,230 ) $ — $ — (1) Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Offsetting derivative instruments include: transactions with NAESB netting election, transactions held by 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 Unaudited Condensed Consolidated Statements of Operations as of: (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized in income on derivatives Three Months Ended Nine Months Ended June 30, June 30, Derivatives not designated as hedging instruments: 2015 2014 2015 2014 NJRES: Physical commodity contracts Operating revenues $ 6,183 $ 5,496 $ 21,130 $ (52,502 ) Physical commodity contracts Gas purchases (11,988 ) (7,728 ) (21,781 ) (87,202 ) Financial commodity contracts Gas purchases 2,264 2,293 92,781 (139,406 ) Total unrealized and realized (losses) gains - NJRES $ (3,541 ) $ 61 $ 92,130 $ (279,110 ) |
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 June 30 : (Thousands) Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Amount of Gain or (Loss) Recognized on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Three Months Ended Three Months Ended Three Months Ended June 30, June 30, June 30, Derivatives in cash flow hedging relationships: 2015 2014 2015 2014 2015 2014 Foreign currency contracts $ 3 $ 213 $ 15 $ 44 $ — $ — Nine Months Ended Nine Months Ended Nine Months Ended June 30, June 30, June 30, Derivatives in cash flow hedging relationships: 2015 2014 2015 2014 2015 2014 Foreign currency contracts $ (402 ) $ (247 ) $ 557 $ 209 $ — $ — |
Schedule of Derivative Instruments | NJNG and NJRES had the following outstanding long (short) derivatives as of: Volume (Bcf) June 30, September 30, NJNG Futures 26.2 (1) 17.3 NJRES Futures (57.4 ) (62.1 ) Options 1.2 1.2 Physical 58.4 28.6 (1) Not included is the notional amount of $125 million related to NJNG’s treasury lock agreement |
Schedule of Due to (from) Broker-Dealers and Clearing Organizations | The balances by company, are as follows: (Thousands) Balance Sheet Location June 30, September 30, NJNG NJNG Broker margin - Current assets $ 17,297 $ 1,057 NJRES NJRES Broker margin - Current assets $ 6,576 $ 26,282 |
Schedules of Concentration of Risk, by Risk Factor | The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of June 30, 2015 . 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 $ 101,707 Noninvestment grade 11,977 Internally rated investment grade 11,598 Internally rated noninvestment grade 8,974 Total $ 134,256 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The estimated fair value of long-term debt, including current maturities and excluding capital leases is as follows: (Thousands) June 30, September 30, Carrying value (1) $ 832,845 $ 557,845 Fair market value $ 839,710 $ 586,909 (1) Excludes capital leases of $50.7 million and $49.9 million as of June 30, 2015 and September 30, 2014 , respectively. |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Thousands) (Level 1) (Level 2) (Level 3) Total As of June 30, 2015: Assets: Physical forward commodity contracts $ — $ 11,965 $ — $ 11,965 Financial derivative contracts - natural gas 31,398 — — 31,398 Interest rate contracts — 2,905 — 2,905 Available for sale equity securities - energy industry (1) 9,892 — — 9,892 Other (2) 47,513 — — 47,513 Total assets at fair value $ 88,803 $ 14,870 $ — $ 103,673 Liabilities: Physical forward commodity contracts $ — $ 16,900 $ — $ 16,900 Financial commodity contracts - natural gas 38,504 — — 38,504 Total liabilities at fair value $ 38,504 $ 16,900 $ — $ 55,404 As of September 30, 2014: Assets: Physical forward commodity contracts $ — $ 15,426 $ — $ 15,426 Financial derivative contracts - natural gas 54,451 — — 54,451 Available for sale equity securities - energy industry (1) 10,672 — — 10,672 Other (2) 1,299 — — 1,299 Total assets at fair value $ 66,422 $ 15,426 $ — $ 81,848 Liabilities: Physical forward commodity contracts $ — $ 30,910 $ — $ 30,910 Financial commodity contracts - natural gas 55,488 — — 55,488 Financial commodity contracts - foreign exchange — 155 — 155 Total liabilities at fair value $ 55,488 $ 31,065 $ — $ 86,553 (1) Included in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. (2) Includes various money market funds in Level 1. |
INVESTMENTS IN EQUITY INVESTE27
INVESTMENTS IN EQUITY INVESTEES (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Investments, All Other Investments [Abstract] | |
Schedule of Equity Method Investments | NJR's investments in equity investees includes the following investments as of: (Thousands) June 30, September 30, Steckman Ridge (1) $ 126,037 $ 128,413 Iroquois 23,006 24,042 PennEast 2,880 555 Total $ 151,923 $ 153,010 (1) Includes loans with a total outstanding principal balance of $70.4 million for both June 30, 2015 and September 30, 2014 . The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2023. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | The following table presents the calculation of the Company's basic and diluted earnings per share for: Three Months Ended Nine Months Ended June 30, June 30, (Thousands, except per share amounts) 2015 2014 2015 2014 Net (loss) income, as reported $ (7,460 ) $ (14,274 ) $ 176,763 $ 166,390 Basic earnings per share Weighted average shares of common stock outstanding-basic 85,449 84,234 85,110 84,144 Basic (loss) earnings per common share $(0.09) $(0.17) $2.08 $1.98 Diluted earnings per share Weighted average shares of common stock outstanding-basic 85,449 84,234 85,110 84,144 Incremental shares (1) — — 1,018 768 Weighted average shares of common stock outstanding-diluted 85,449 84,234 86,128 84,912 Diluted (loss) earnings per common share (2) $(0.09) $(0.17) $2.05 $1.96 (1) Incremental shares consist primarily of stock awards and performance shares. (2) Since there was a net loss for the three months ended June 30, 2015 , and 2014 , incremental shares of 1,018 and 768 , respectively, were not included in the computation of diluted loss per common share, as their effect would have been anti-dilutive. There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for the nine months ended June 30, 2015 , and 2014 . |
COMMON STOCK EQUITY (Tables)
COMMON STOCK EQUITY (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Changes in Common Stock Equity | Changes in common stock equity during the nine months ended June 30, 2015 , are as follows: (Thousands) Number of Shares Common Stock Premium on Common Stock Accumulated Other Comprehensive (Loss) Income Treasury Stock And Other Retained Earnings Total Balance as of September 30, 2014 84,356 $ 218,223 $ 199,739 $ (5,594 ) $ (121,031 ) $ 674,829 $ 966,166 Net income 176,763 176,763 Other comprehensive income 364 364 Common stock issued under stock plans 1,378 2,607 12,972 13,784 29,363 Tax benefits from stock plans (1,386 ) (1,386 ) Cash dividend declared ($.68 per share) (57,517 ) (57,517 ) Treasury stock and other (333 ) 9,559 9,559 Balance as of June 30, 2015 85,401 $ 220,830 $ 211,325 $ (5,230 ) $ (97,688 ) $ 794,075 $ 1,123,312 |
Components of Accumulated Other Comprehensive Income, Net of Tax | The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects: (Thousands) Available for Sale Securities Cash Flow Hedges Postemployment Benefit Obligation Total Balance as of September 30, 2014 $ 4,782 $ (93 ) $ (10,283 ) $ (5,594 ) Other comprehensive income, net of tax Other comprehensive (loss), before reclassifications, net of tax of $319, $146, $0, $465 (461 ) (256 ) — (717 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(202), $(506), $(708) — 349 (1) 732 (2) 1,081 Net current-period other comprehensive (loss) income, net of tax of $319, $(56), $(506), $(243) (461 ) 93 732 364 Balance as of June 30, 2015 $ 4,321 $ — $ (9,551 ) $ (5,230 ) Balance as of September 30, 2013 $ 5,400 $ 12 $ (7,033 ) $ (1,621 ) Other comprehensive income, net of tax Other comprehensive income (loss), before reclassifications, net of tax of $(150), $91, $0, $(59) 216 (156 ) — 60 Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(77), $(334), $(411) — 132 (1) 483 (2) 615 Net current-period other comprehensive income (loss), net of tax of $(150), $14, $(334), $(470) 216 (24 ) 483 675 Balance as of June 30, 2014 $ 5,616 $ (12 ) $ (6,550 ) $ (946 ) (1) Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases in the Unaudited Condensed Consolidated Statements of Operations. (2) Included in the computation of net periodic pension cost, a component of operations and maintenance expense in the Unaudited Condensed Consolidated Statements of Operations. |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | A summary of NJR's credit facility and NJNG's commercial paper program and credit facility are as follows: (Thousands) June 30, September 30, Expiration Dates NJR Bank revolving credit facilities (1) $ 425,000 $ 425,000 August 2017 Notes outstanding at end of period $ — $ 148,000 Weighted average interest rate at end of period — % 1.08 % Amount available at end of period (2) $ 412,345 $ 256,484 Bank revolving credit facilities (3) $ 100,000 $ — October 2015 Amount available at end of period $ 100,000 $ — NJNG Bank revolving credit facilities (1) $ 250,000 $ 250,000 May 2019 Commercial paper outstanding at end of period $ — $ 153,000 Weighted average interest rate at end of period — % 0.12 % Amount available at end of period (4) $ 249,269 $ 96,269 (1) Committed credit facilities, which require commitment fees on the unused amounts. (2) Letters of credit outstanding total $12.7 million and $20.5 million as of June 30, 2015 and September 30, 2014 , respectively, which reduces amount available by the same amount. (3) Uncommitted credit facilities, which require no commitment fees. (4) Letters of credit outstanding total $731,000 and $731,000 as of June 30, 2015 and September 30, 2014 , respectively, which reduces the amount available by the same amount. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | The components of the net periodic cost for pension benefits, including the Company's Pension Equalization Plan, and OPEB costs (principally health care and life insurance) for employees and covered dependents were as follows: Pension OPEB Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended June 30, June 30, June 30, June 30, (Thousands) 2015 2014 2015 2014 2015 2014 2015 2014 Service cost $ 1,872 $ 1,536 $ 5,614 $ 4,608 $ 1,063 $ 980 $ 3,190 $ 2,942 Interest cost 2,549 2,517 7,649 7,550 1,434 1,434 4,304 4,300 Expected return on plan assets (4,272 ) (3,869 ) (12,817 ) (11,607 ) (1,245 ) (1,043 ) (3,733 ) (3,130 ) Recognized actuarial loss 1,747 1,399 5,239 4,197 737 625 2,208 1,875 Prior service cost amortization 28 27 83 83 (91 ) (89 ) (273 ) (267 ) Recognized net initial obligation — — — — — 3 — 8 Net periodic benefit cost $ 1,924 $ 1,610 $ 5,768 $ 4,831 $ 1,898 $ 1,910 $ 5,696 $ 5,728 |
COMMITMENTS AND CONTINGENT LI32
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | Commitments as of June 30, 2015 , 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 $ 114,201 $ 147,187 $ 4,811 $ — $ — $ — Storage demand fees 8,761 25,415 10,945 6,942 4,202 7,179 Pipeline demand fees 23,176 59,397 32,485 15,393 7,523 8,157 Sub-total NJRES $ 146,138 $ 231,999 $ 48,241 $ 22,335 $ 11,725 $ 15,336 NJNG: Natural gas purchases $ 12,662 $ 72,705 $ 79,911 $ 49,492 $ 50,008 $ 165,917 Storage demand fees 7,205 29,032 25,336 15,872 11,079 5,345 Pipeline demand fees 12,806 79,877 54,358 88,956 90,235 872,460 Sub-total NJNG $ 32,673 $ 181,614 $ 159,605 $ 154,320 $ 151,322 $ 1,043,722 Total (1) $ 178,811 $ 413,613 $ 207,846 $ 176,655 $ 163,047 $ 1,059,058 (1) Does not include amounts related to intercompany asset management agreements between NJRES and NJNG. |
BUSINESS SEGMENT AND OTHER OP33
BUSINESS SEGMENT AND OTHER OPERATIONS DATA (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
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: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2015 2014 2015 2014 Operating revenues Natural Gas Distribution External customers $ 116,307 $ 111,383 $ 699,737 $ 739,380 Energy Services External customers (1) 320,221 560,115 1,546,890 2,367,641 Intercompany 1,554 518 60,777 72,285 Clean Energy Ventures External customers 7,861 3,155 18,164 8,007 Subtotal 445,943 675,171 2,325,568 3,187,313 Home Services and Other External customers 14,078 13,604 30,890 31,203 Intercompany 514 194 1,300 693 Eliminations (2,068 ) (712 ) (62,077 ) (72,978 ) Total $ 458,467 $ 688,257 $ 2,295,681 $ 3,146,231 Depreciation and amortization Natural Gas Distribution $ 10,810 $ 10,567 $ 32,002 $ 30,374 Energy Services 23 15 68 40 Clean Energy Ventures 4,504 2,823 12,392 7,969 Midstream 1 1 4 4 Subtotal 15,338 13,406 44,466 38,387 Home Services and Other 238 212 714 627 Eliminations (2 ) 2 (16 ) — Total $ 15,574 $ 13,620 $ 45,164 $ 39,014 Interest income (2) Natural Gas Distribution $ (25 ) $ 137 $ 75 $ 579 Energy Services 250 210 263 210 Clean Energy Ventures — — 22 — Midstream 246 171 727 709 Subtotal 471 518 1,087 1,498 Home Services and Other 13 1 214 1 Eliminations (509 ) (241 ) (990 ) (709 ) Total $ (25 ) $ 278 $ 311 $ 790 (1) Includes sales to Canada, which accounted for 3.6 percent of total operating revenues during the nine months ended June 30, 2015 and 2014 . (2) Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2015 2014 2015 2014 Interest expense, net of capitalized interest Natural Gas Distribution $ 5,005 $ 4,540 $ 14,002 $ 12,412 Energy Services 209 166 1,010 1,443 Clean Energy Ventures 2,078 1,382 5,556 3,817 Midstream 163 333 623 1,108 Subtotal 7,455 6,421 21,191 18,780 Home Services and Other 134 86 76 328 Eliminations $ (262 ) $ — $ (262 ) $ — Total $ 7,327 $ 6,507 $ 21,005 $ 19,108 Income tax (benefit) provision Natural Gas Distribution $ 3,754 $ 4,348 $ 41,698 $ 42,256 Energy Services (9,958 ) (16,256 ) 39,842 36,816 Clean Energy Ventures (423 ) 1,286 (29,186 ) (18,146 ) Midstream 1,737 1,321 5,048 3,890 Subtotal (4,890 ) (9,301 ) 57,402 64,816 Home Services and Other 720 1,680 (704 ) 360 Eliminations (148 ) (187 ) (5 ) 201 Total $ (4,318 ) $ (7,808 ) $ 56,693 $ 65,377 Equity in earnings of affiliates Midstream $ 4,266 $ 3,511 $ 12,622 $ 10,594 Eliminations (899 ) (830 ) (2,873 ) (2,538 ) Total $ 3,367 $ 2,681 $ 9,749 $ 8,056 Net financial earnings (loss) Natural Gas Distribution $ 7,172 $ 4,882 $ 83,952 $ 79,564 Energy Services (5,270 ) (8,628 ) 47,482 90,153 Clean Energy Ventures (3,792 ) 3,865 18,226 20,286 Midstream 2,487 1,896 7,211 5,584 Subtotal 597 2,015 156,871 195,587 Home Services and Other 1,909 2,485 (42 ) 708 Eliminations (29 ) 14 (100 ) — Total $ 2,477 $ 4,514 $ 156,729 $ 196,295 Capital expenditures Natural Gas Distribution $ 45,749 $ 38,186 $ 115,740 $ 109,071 Clean Energy Ventures 23,218 46,166 111,588 91,569 Subtotal 68,967 84,352 227,328 200,640 Home Services and Other 29 159 90 636 Total $ 68,996 $ 84,511 $ 227,418 $ 201,276 Investments in equity investees Midstream $ 1,049 $ — $ 2,313 $ — Total $ 1,049 $ — $ 2,313 $ — |
Reconciliation of Consolidated Net Financial Earnings to Consolidated Net Income | A reconciliation of consolidated NFE to consolidated net income is as follows: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2015 2014 2015 2014 Consolidated net financial earnings $ 2,477 $ 4,514 $ 156,729 $ 196,295 Less: Unrealized loss (gain) from derivative instruments and related transactions 1,188 (6,585 ) (19,010 ) 45,811 Effects of economic hedging related to natural gas inventory 16,464 38,139 (15,751 ) (3,409 ) Tax adjustments (7,715 ) (12,766 ) 14,727 (12,497 ) Consolidated net (loss) income $ (7,460 ) $ (14,274 ) $ 176,763 $ 166,390 |
Reconciliation of Assets from Segment to Consolidated | The Company's assets for the various business segments and business operations are detailed below: (Thousands) June 30, September 30, Assets at end of period: Natural Gas Distribution $ 2,239,870 $ 2,143,684 Energy Services 261,485 457,080 Clean Energy Ventures 490,090 380,707 Midstream 152,593 153,891 Subtotal 3,144,038 3,135,362 Home Services and Other 115,005 82,413 Intercompany assets (1) (50,119 ) (58,971 ) Total $ 3,208,924 $ 3,158,804 (1) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
NATURE OF THE BUSINESS (Details
NATURE OF THE BUSINESS (Details) - Jun. 30, 2015 customer in Thousands | subsidiarycustomer |
Steckman Ridge [Member] | |
Nature of Business [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
Iroquois [Member] | |
Nature of Business [Line Items] | |
Equity method investment, ownership percentage | 5.53% |
PennEast [Member] | |
Nature of Business [Line Items] | |
Equity method investment, ownership percentage | 20.00% |
NJNG [Member] | |
Nature of Business [Line Items] | |
Total retail customers | customer | 512 |
NJR Retail Holdings Corporation [Member] | |
Nature of Business [Line Items] | |
Number of principal subsidiaries | 2 |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - GAS IN STORAGE (Details) $ in Thousands | Jun. 30, 2015USD ($)Bcf | Sep. 30, 2014USD ($)Bcf |
Inventory [Line Items] | ||
Gas in Storage | $ 117,115 | $ 277,516 |
Gas in Storage (Bcf) | Bcf | 48.7 | 77.8 |
NJRES [Member] | ||
Inventory [Line Items] | ||
Gas in Storage | $ 81,829 | $ 191,250 |
Gas in Storage (Bcf) | Bcf | 36.6 | 56.5 |
NJNG [Member] | ||
Inventory [Line Items] | ||
Gas in Storage | $ 35,286 | $ 86,266 |
Gas in Storage (Bcf) | Bcf | 12.1 | 21.3 |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - AVAILABLE FOR SALE SECURITIES (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Sep. 30, 2014 | |
Accounting Policies [Abstract] | |||
Available-for-sale securities, fair value disclosure | $ 9.9 | [1] | $ 10.7 |
Available-for-sale securities, gross unrealized gain (loss) | 7.3 | 8.1 | |
Accumulated other comprehensive income, available-for-sale securities adjustment, net of tax | $ 4.3 | $ 4.8 | |
[1] | Included in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SALE OF ASSET (Details) $ in Thousands | Oct. 22, 2013USD ($)a | Dec. 31, 2013USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
Long Lived Assets Held-for-sale [Line Items] | ||||
Proceeds from sale of assets | $ 0 | $ 6,010 | ||
CR&R [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Number of acres of undeveloped land | a | 25.4 | |||
Proceeds from sale of assets | $ 6,000 | |||
Pre-tax gain after closing costs | $ 313 |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - COMMON STOCK SPLIT (Details) | Jan. 20, 2015 | Jun. 30, 2015shares | Mar. 03, 2015shares | Mar. 02, 2015shares | Sep. 30, 2014shares |
Accounting Policies [Abstract] | |||||
Stock split ratio | 2 | ||||
Shares outstanding | 85,401,117 | 85,400,000 | 42,700,000 | 84,356,310 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CUSTOMER ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 | |
accounts receivable by subsidiary [Line Items] | |||
Billed | $ 197,086 | $ 189,970 | |
Receivable by Subsidiary, percentage | 100.00% | 100.00% | |
Unbilled revenues | $ 6,707 | $ 7,231 | |
NJRES [Member] | |||
accounts receivable by subsidiary [Line Items] | |||
Billed | $ 114,531 | $ 142,566 | |
Receivable by Subsidiary, percentage | 58.00% | 75.00% | |
NJNG [Member] | |||
accounts receivable by subsidiary [Line Items] | |||
Billed | [1] | $ 76,716 | $ 41,281 |
Receivable by Subsidiary, percentage | 39.00% | 22.00% | |
NJRCEV [Member] | |||
accounts receivable by subsidiary [Line Items] | |||
Billed | $ 898 | $ 594 | |
Receivable by Subsidiary, percentage | 0.00% | 0.00% | |
NJRHS and Other [Member] | |||
accounts receivable by subsidiary [Line Items] | |||
Billed | $ 4,941 | $ 5,529 | |
Receivable by Subsidiary, percentage | 3.00% | 3.00% | |
[1] | Does not include unbilled revenues of $6.7 million and $7.2 million as of June 30, 2015 and September 30, 2014, respectively. |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - LOAN RECEIVABLE (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable in other current assets | $ 5,200,000 | $ 3,900,000 |
Loans receivable in other noncurrent assets | $ 33,700,000 | 27,300,000 |
Threshold period in establishing allowance for doubtful accounts | 60 days | |
Allowance for doubtful accounts | $ 0 | $ 0 |
Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan term | 2 years | |
Maximum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan term | 10 years |
REGULATION - REGULATORY ASSETS
REGULATION - REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | $ 29,623 | $ 26,862 |
Regulatory assets-noncurrent | 351,763 | 377,575 |
Regulatory liability-current | 11,284 | 6,072 |
Regulatory liabilities-noncurrent | 66,233 | 61,326 |
Overrecovered Gas Costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liability-current | 3,820 | 0 |
Conservation Incentive Program [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liability-current | 7,464 | 5,752 |
Regulatory liabilities-noncurrent | 11,911 | 0 |
Derivatives at Fair Value, Net [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liability-current | 0 | 320 |
Cost of Removal Obligation [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 49,904 | 61,163 |
Derivatives at Fair Value, Net [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 3,450 | 57 |
Other [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 968 | 106 |
New Jersey Clean Energy Program [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 15,685 | 14,285 |
Derivatives at Fair Value, Net [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 13,938 | 0 |
Underrecovered Gas Costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 0 | 12,577 |
Environmental Remediation Costs Expended, Net of Recoveries [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 18,095 | 30,916 |
Environmental Remediation Costs Liability for Future Expenditures [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 177,000 | 177,000 |
Deferred Income Taxes [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 9,968 | 9,968 |
SAVEGREEN [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 23,738 | 29,180 |
Postemployment and Other Benefit Costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 102,497 | 108,507 |
Deferred Superstorm Sandy Costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 15,207 | 15,207 |
Other [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | $ 5,258 | $ 6,797 |
REGULATION - REGULATORY FILINGS
REGULATION - REGULATORY FILINGS (Details) - USD ($) $ in Millions | Oct. 01, 2014 | Jun. 30, 2015 | Dec. 31, 2015 | Jun. 30, 2015 | May. 31, 2015 |
BGSS [Member] | |||||
Schedule of Regulatory [Line Items] | |||||
Public Utilities, interim rate increase (decrease), percentage | (5.00%) | ||||
BGSS [Member] | Subsequent Event [Member] | |||||
Schedule of Regulatory [Line Items] | |||||
Increase (decrease) in requested rate, percentage | (14.30%) | ||||
Customer refunds and bill credits | $ 63.7 | ||||
CIP [Member] | |||||
Schedule of Regulatory [Line Items] | |||||
Public Utilities, interim rate increase (decrease), percentage | (4.30%) | ||||
Increase (decrease) in requested rate, percentage | 0.08% | ||||
SAVEGREEN [Member] | June 2014 SAVEGREEN Filing [Member] | |||||
Schedule of Regulatory [Line Items] | |||||
Recovery amount approved by the Board of Public Utilities | $ 75.2 | ||||
Public Utilities, weighted average cost of capital | 6.69% | ||||
SBC [Member] | September 2014 SBC Filing [Member] | |||||
Schedule of Regulatory [Line Items] | |||||
Increase (decrease) in approved rate, percentage | (3.30%) | ||||
RA [Member] | July 2013 SBC Filing [Member] | |||||
Schedule of Regulatory [Line Items] | |||||
Reduction in the RA factor | $ 18.7 | ||||
RA [Member] | September 2014 SBC Filing [Member] | |||||
Schedule of Regulatory [Line Items] | |||||
Reduction in the RA factor | $ 8.5 | ||||
NJCEP [Member] | July 2013 SBC Filing [Member] | |||||
Schedule of Regulatory [Line Items] | |||||
Reduction in the RA factor | $ 26.8 | ||||
NJCEP [Member] | September 2014 SBC Filing [Member] | |||||
Schedule of Regulatory [Line Items] | |||||
Reduction in the RA factor | $ 16.3 | ||||
NJ RISE Program [Member] | |||||
Schedule of Regulatory [Line Items] | |||||
Increase (decrease) in requested rate, percentage | 0.03% | ||||
USF [Member] | |||||
Schedule of Regulatory [Line Items] | |||||
Increase (decrease) in requested rate, percentage | (0.60%) |
DERIVATIVE INSTRUMENTS - BALANC
DERIVATIVE INSTRUMENTS - BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 01, 2015 | Sep. 30, 2014 |
Derivatives, Fair Value [Line Items] | |||
Benchmark interest rate | 3.26% | ||
Notional amount of foreign currency derivatives | $ 125,000 | $ 125,000 | |
Derivative assets, current | 38,291 | $ 64,223 | |
Derivative liabilities, current | 52,989 | 79,863 | |
Derivative assets, noncurrent | 7,977 | 5,654 | |
Derivative liabilities, noncurrent | 2,415 | 6,690 | |
Derivative assets | 46,268 | 69,877 | |
Derivative liabilities | 55,404 | 86,553 | |
Designated as Hedging Instrument [Member] | NJRES [Member] | Foreign Currency Contract [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, current | 0 | 0 | |
Derivative liabilities, current | 0 | 155 | |
Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 46,268 | 69,877 | |
Derivative liabilities | 55,404 | 86,398 | |
Not Designated as Hedging Instrument [Member] | NJRES [Member] | Financial Commodity Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, current | 26,509 | 46,307 | |
Derivative liabilities, current | 21,388 | 46,725 | |
Derivative assets, noncurrent | 3,569 | 5,537 | |
Derivative liabilities, noncurrent | 2,415 | 6,533 | |
Not Designated as Hedging Instrument [Member] | NJRES [Member] | Physical Forward Commodity Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, current | 11,007 | 15,391 | |
Derivative liabilities, current | 16,900 | 30,778 | |
Derivative assets, noncurrent | 958 | 35 | |
Derivative liabilities, noncurrent | 0 | 132 | |
Not Designated as Hedging Instrument [Member] | NJNG [Member] | Financial Commodity Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, current | 775 | 2,525 | |
Derivative liabilities, current | 14,701 | 2,205 | |
Derivative assets, noncurrent | 545 | 82 | |
Derivative liabilities, noncurrent | 0 | 25 | |
Not Designated as Hedging Instrument [Member] | NJNG [Member] | Interest Rate Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets, noncurrent | 2,905 | 0 | |
Derivative liabilities, noncurrent | $ 0 | $ 0 | |
First Mortgage [Member] | Series Ll [Member] | NJNG [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Debt issued | $ 125,000 | ||
Interest rate, stated percentage | 5.60% |
DERIVATIVE INSTRUMENTS - OFFSET
DERIVATIVE INSTRUMENTS - OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 | |
NJRES [Member] | |||
Offsetting Assets and Liabilities [Line Items] | |||
Amounts Presented in Balance Sheets, Derivative assets | [1] | $ 42,043 | $ 67,270 |
Offsetting Derivative Instruments, Derivative assets | [2] | (29,774) | (63,375) |
Financial Collateral Received/Pledged, Derivative assets | [3] | 0 | 0 |
Net Amounts, Derivative assets | [4] | 12,269 | 3,895 |
Amounts Presented in Balance Sheets, Derivative liabilities | [1] | 40,703 | 84,323 |
Offsetting Derivative Instruments, Derivative liabilities | [2] | (29,775) | (63,902) |
Financial Collateral Received/Pledged, Derivative liabilities | [3] | (1,200) | (2,614) |
Net Amounts, Derivative liabilities | [4] | 9,728 | 17,807 |
NJRES [Member] | Physical Forward Commodity Contracts [Member] | |||
Offsetting Assets and Liabilities [Line Items] | |||
Amounts Presented in Balance Sheets, Derivative assets | [1] | 11,965 | 15,426 |
Offsetting Derivative Instruments, Derivative assets | [2] | (5,972) | (11,531) |
Financial Collateral Received/Pledged, Derivative assets | [3] | 0 | 0 |
Net Amounts, Derivative assets | [4] | 5,993 | 3,895 |
Amounts Presented in Balance Sheets, Derivative liabilities | [1] | 16,900 | 30,910 |
Offsetting Derivative Instruments, Derivative liabilities | [2] | (5,972) | (12,058) |
Financial Collateral Received/Pledged, Derivative liabilities | [3] | (1,200) | (1,200) |
Net Amounts, Derivative liabilities | [4] | 9,728 | 17,652 |
NJRES [Member] | Financial Commodity Contracts [Member] | |||
Offsetting Assets and Liabilities [Line Items] | |||
Amounts Presented in Balance Sheets, Derivative assets | [1] | 30,078 | 51,844 |
Offsetting Derivative Instruments, Derivative assets | [2] | (23,802) | (51,844) |
Financial Collateral Received/Pledged, Derivative assets | [3] | 0 | 0 |
Net Amounts, Derivative assets | [4] | 6,276 | 0 |
Amounts Presented in Balance Sheets, Derivative liabilities | [1] | 23,803 | 53,258 |
Offsetting Derivative Instruments, Derivative liabilities | [2] | (23,803) | (51,844) |
Financial Collateral Received/Pledged, Derivative liabilities | [3] | 0 | (1,414) |
Net Amounts, Derivative liabilities | [4] | 0 | 0 |
NJRES [Member] | Foreign Currency Contract [Member] | |||
Offsetting Assets and Liabilities [Line Items] | |||
Amounts Presented in Balance Sheets, Derivative liabilities | [1] | 155 | |
Offsetting Derivative Instruments, Derivative liabilities | [2] | 0 | |
Financial Collateral Received/Pledged, Derivative liabilities | [3] | 0 | |
Net Amounts, Derivative liabilities | [4] | 155 | |
NJNG [Member] | |||
Offsetting Assets and Liabilities [Line Items] | |||
Amounts Presented in Balance Sheets, Derivative assets | [1] | 4,225 | |
Offsetting Derivative Instruments, Derivative assets | [2] | (1,320) | |
Financial Collateral Received/Pledged, Derivative assets | [3] | 0 | |
Net Amounts, Derivative assets | [4] | 2,905 | |
NJNG [Member] | Financial Commodity Contracts [Member] | |||
Offsetting Assets and Liabilities [Line Items] | |||
Amounts Presented in Balance Sheets, Derivative assets | [1] | 1,320 | 2,607 |
Offsetting Derivative Instruments, Derivative assets | [2] | (1,320) | (2,230) |
Financial Collateral Received/Pledged, Derivative assets | [3] | 0 | (377) |
Net Amounts, Derivative assets | [4] | 0 | 0 |
Amounts Presented in Balance Sheets, Derivative liabilities | [1] | 14,701 | 2,230 |
Offsetting Derivative Instruments, Derivative liabilities | [2] | (1,320) | (2,230) |
Financial Collateral Received/Pledged, Derivative liabilities | [3] | (13,381) | 0 |
Net Amounts, Derivative liabilities | [4] | 0 | $ 0 |
NJNG [Member] | Interest Rate Contracts [Member] | |||
Offsetting Assets and Liabilities [Line Items] | |||
Amounts Presented in Balance Sheets, Derivative assets | [1] | 2,905 | |
Offsetting Derivative Instruments, Derivative assets | [2] | 0 | |
Financial Collateral Received/Pledged, Derivative assets | [3] | 0 | |
Net Amounts, Derivative assets | [4] | $ 2,905 | |
[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 ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
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) | $ 3 | $ 213 | $ (402) | $ (247) |
Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) | 15 | 44 | 557 | 209 |
Amount of Gain or (Loss) Recognized on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 |
NJRES [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | (3,541) | 61 | 92,130 | (279,110) |
NJRES [Member] | Not Designated as Hedging Instrument [Member] | Physical Commodity Contracts [Member] | Operating Revenues [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | 6,183 | 5,496 | 21,130 | (52,502) |
NJRES [Member] | Not Designated as Hedging Instrument [Member] | Physical Commodity Contracts [Member] | Gas Purchases [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | (11,988) | (7,728) | (21,781) | (87,202) |
NJRES [Member] | Not Designated as Hedging Instrument [Member] | Financial Commodity Contracts [Member] | Gas Purchases [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | 2,264 | 2,293 | 92,781 | (139,406) |
NJNG [Member] | Financial Commodity Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, gain (loss) recognized in regulatory assets and liabilities net | (199) | $ 1,500 | (24,700) | $ 14,300 |
NJNG [Member] | Treasury Lock [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, gain (loss) recognized in regulatory assets and liabilities net | $ 2,900 | $ 2,900 |
DERIVATIVE INSTRUMENTS - VOLUME
DERIVATIVE INSTRUMENTS - VOLUME (Details) $ in Millions | Jun. 30, 2015USD ($)Bcf | Jun. 01, 2015USD ($) | Sep. 30, 2014Bcf | |
Derivative [Line Items] | ||||
Notional amount related to treasury lock agreement | $ | $ 125 | $ 125 | ||
NJNG [Member] | Futures [Member] | Long [Member] | ||||
Derivative [Line Items] | ||||
Derivative, nonmonetary notional amount (in bcf) | 26.2 | [1] | 17.3 | |
NJRES [Member] | Futures [Member] | Short [Member] | ||||
Derivative [Line Items] | ||||
Derivative, nonmonetary notional amount (in bcf) | (57.4) | (62.1) | ||
NJRES [Member] | Options [Member] | Long [Member] | ||||
Derivative [Line Items] | ||||
Derivative, nonmonetary notional amount (in bcf) | 1.2 | 1.2 | ||
NJRES [Member] | Physical [Member] | Long [Member] | ||||
Derivative [Line Items] | ||||
Derivative, nonmonetary notional amount (in bcf) | 58.4 | 28.6 | ||
[1] | Not included is the notional amount of $125 million related to NJNG’s treasury lock agreement. |
DERIVATIVE INSTRUMENTS - BROKER
DERIVATIVE INSTRUMENTS - BROKER MARGIN DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Derivative [Line Items] | ||
Broker margin - Current assets | $ 23,873 | $ 27,339 |
NJNG [Member] | ||
Derivative [Line Items] | ||
Broker margin - Current assets | 17,297 | 1,057 |
NJRES [Member] | ||
Derivative [Line Items] | ||
Broker margin - Current assets | $ 6,576 | $ 26,282 |
DERIVATIVE INSTRUMENTS - CREDIT
DERIVATIVE INSTRUMENTS - CREDIT RISK EXPOSURE (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | |
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | $ 134,256 | |
Derivative, net liability position, aggregate fair value | 40 | $ 39 |
Additional collateral, aggregate fair value | 37 | $ 7 |
Investment Grade [Member] | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 101,707 | |
Noninvestment Grade [Member] | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 11,977 | |
Internally Rated Investment Grade [Member] | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 11,598 | |
Internally Rated Noninvestment Grade [Member] | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | $ 8,974 |
FAIR VALUE - DEBT (Details)
FAIR VALUE - DEBT (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital leases | $ 50,700 | $ 49,900 | |
Level 2 [Member] | Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | [1] | 832,845 | 557,845 |
Level 2 [Member] | Fair Market Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | $ 839,710 | $ 586,909 | |
[1] | Excludes capital leases of $50.7 million and $49.9 million as of June 30, 2015 and September 30, 2014, respectively. |
FAIR VALUE - HIERARCHY (Details
FAIR VALUE - HIERARCHY (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | $ 46,268 | $ 69,877 | ||
Available for sale equity securities - energy industry | 9,900 | [1] | 10,700 | |
Liabilities | 55,404 | 86,553 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale equity securities - energy industry | [1] | 9,892 | 10,672 | |
Other | [2] | 47,513 | 1,299 | |
Total assets at fair value | 103,673 | 81,848 | ||
Total liabilities at fair value | 55,404 | 86,553 | ||
Fair Value, Measurements, Recurring [Member] | Physical Forward Commodity Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 11,965 | 15,426 | ||
Liabilities | 16,900 | 30,910 | ||
Fair Value, Measurements, Recurring [Member] | Financial Derivative Contracts - Natural Gas [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 31,398 | 54,451 | ||
Liabilities | 38,504 | 55,488 | ||
Fair Value, Measurements, Recurring [Member] | Interest Rate Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 2,905 | |||
Fair Value, Measurements, Recurring [Member] | Financial Derivative Contracts - Foreign Exchange [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities | 155 | |||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets, (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale equity securities - energy industry | [1] | 9,892 | 10,672 | |
Other | [2] | 47,513 | 1,299 | |
Total assets at fair value | 88,803 | 66,422 | ||
Total liabilities at fair value | 38,504 | 55,488 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets, (Level 1) [Member] | Physical Forward Commodity Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 0 | 0 | ||
Liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets, (Level 1) [Member] | Financial Derivative Contracts - Natural Gas [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 31,398 | 54,451 | ||
Liabilities | 38,504 | 55,488 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets, (Level 1) [Member] | Interest Rate Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 0 | |||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets, (Level 1) [Member] | Financial Derivative Contracts - Foreign Exchange [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities | 0 | |||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale equity securities - energy industry | [1] | 0 | 0 | |
Other | [2] | 0 | 0 | |
Total assets at fair value | 14,870 | 15,426 | ||
Total liabilities at fair value | 16,900 | 31,065 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Physical Forward Commodity Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 11,965 | 15,426 | ||
Liabilities | 16,900 | 30,910 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Financial Derivative Contracts - Natural Gas [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 0 | 0 | ||
Liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 2,905 | |||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Financial Derivative Contracts - Foreign Exchange [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities | 155 | |||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale equity securities - energy industry | [1] | 0 | 0 | |
Other | [2] | 0 | 0 | |
Total assets at fair value | 0 | 0 | ||
Total liabilities at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Physical Forward Commodity Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 0 | 0 | ||
Liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Financial Derivative Contracts - Natural Gas [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | 0 | 0 | ||
Liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets | $ 0 | |||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Financial Derivative Contracts - Foreign Exchange [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities | $ 0 | |||
[1] | Included in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets | |||
[2] | Includes various money market funds in Level 1. |
INVESTMENTS IN EQUITY INVESTE51
INVESTMENTS IN EQUITY INVESTEES - SCHEDULE OF EQUITY METHOD INVESTMENTS (Details) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2015USD ($)mi | Sep. 30, 2014USD ($) | ||
Schedule of Equity Method Investments [Line Items] | |||
Investments in equity investees | $ 151,923 | $ 153,010 | |
Steckman Ridge [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in equity investees | [1] | 126,037 | 128,413 |
Steckman Ridge [Member] | Equity Method Investee [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Outstanding principal balance | 70,400 | 70,400 | |
Iroquois [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in equity investees | 23,006 | 24,042 | |
PennEast [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in equity investees | $ 2,880 | $ 555 | |
Construction plan, project area (in miles) | mi | 115 | ||
[1] | Includes loans with a total outstanding principal balance of $70.4 million for both June 30, 2015 and September 30, 2014. The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2023. |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Earnings Per Share [Abstract] | |||||
Net (loss) income, as reported | $ (7,460) | $ (14,274) | $ 176,763 | $ 166,390 | |
Basic earnings per share | |||||
Weighted average shares of common stock outstanding-basic (shares) | 85,449,000 | 84,234,000 | 85,110,000 | 84,144,000 | |
Basic (loss) earnings per common share (usd per share) | $ (0.09) | $ (0.17) | $ 2.08 | $ 1.98 | |
Incremental shares (1) | [1] | 0 | 0 | 1,018,000 | 768,000 |
Diluted earnings per share | |||||
Weighted average shares of common stock outstanding-diluted (shares) | 85,449,000 | 84,234,000 | 86,128,000 | 84,912,000 | |
Diluted (loss) earnings per common share (usd per share) | [2] | $ (0.09) | $ (0.17) | $ 2.05 | $ 1.96 |
Anti-dilutive shares excluded from the calculation of diluted earnings per share | 1,018,000 | 768,000 | 0 | 0 | |
[1] | Incremental shares consist primarily of stock awards and performance shares. | ||||
[2] | Since there was a net loss for the three months ended June 30, 2015, and 2014, incremental shares of 1,018 and 768, respectively, were not included in the computation of diluted loss per common share, as their effect would have been anti-dilutive. There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for the nine months ended June 30, 2015, and 2014. |
COMMON STOCK EQUITY (Details)
COMMON STOCK EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period (shares) | 84,356,310 | |||
Balance as of beginning of period | $ 966,166 | |||
Net income | $ (7,460) | $ (14,274) | 176,763 | $ 166,390 |
Other comprehensive income | $ (318) | $ 834 | 364 | $ 675 |
Common stock issued under stock plans | 29,363 | |||
Tax benefits from stock plans | (1,386) | |||
Cash dividend declared ($.68 per share) | (57,517) | |||
Treasury stock and other | $ 9,559 | |||
Balance as of end of period (shares) | 85,401,117 | 85,401,117 | ||
Balance as of end of period | $ 1,123,312 | $ 1,123,312 | ||
Cash dividend declared per share (usd per share) | $ 0.23 | $ 0.21 | $ 0.68 | $ 0.63 |
Common Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period (shares) | 84,356,000 | |||
Balance as of beginning of period | $ 218,223 | |||
Common stock issued under stock plans (shares) | 1,378,000 | |||
Common stock issued under stock plans | $ 2,607 | |||
Treasury stock and other (shares) | (333,000) | |||
Balance as of end of period (shares) | 85,401,000 | 85,401,000 | ||
Balance as of end of period | $ 220,830 | $ 220,830 | ||
Premium on Common Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period | 199,739 | |||
Common stock issued under stock plans | 12,972 | |||
Tax benefits from stock plans | (1,386) | |||
Balance as of end of period | 211,325 | 211,325 | ||
Accumulated Other Comprehensive (Loss) Income [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period | (5,594) | |||
Other comprehensive income | 364 | |||
Balance as of end of period | (5,230) | (5,230) | ||
Treasury Stock And Other [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period | (121,031) | |||
Common stock issued under stock plans | 13,784 | |||
Treasury stock and other | 9,559 | |||
Balance as of end of period | (97,688) | (97,688) | ||
Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period | 674,829 | |||
Net income | 176,763 | |||
Cash dividend declared ($.68 per share) | (57,517) | |||
Balance as of end of period | $ 794,075 | $ 794,075 |
COMMON STOCK EQUITY - DIVIDEND
COMMON STOCK EQUITY - DIVIDEND REINVESTMENT PLAN (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Equity [Abstract] | ||
Equity raised through the DRP | $ 13.1 | $ 10.9 |
Number of treasury shares issued from raising of equity through the DRP | 330,000 | 235,000 |
Additional equity raised | $ 19.8 | |
Additional shares issued through the waiver discount feature of the DRP | 344,000 | 0 |
COMMON STOCK EQUITY - ACCUMULAT
COMMON STOCK EQUITY - ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance as of beginning of period | $ (5,594) | $ (1,621) | |||
Other comprehensive income (loss), before reclassifications, net of tax | (717) | 60 | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | 1,081 | 615 | |||
Other comprehensive (loss) income | $ (318) | $ 834 | 364 | 675 | |
Balance as of end of period | (5,230) | (946) | (5,230) | (946) | |
Tax on other comprehensive income before reclassifications | (465) | 59 | |||
Tax on amounts reclassified from accumulated other comprehensive income | 708 | 411 | |||
Tax on net current-period other comprehensive income | 243 | 470 | |||
Available for Sale Securities [Member] | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance as of beginning of period | 4,782 | 5,400 | |||
Other comprehensive income (loss), before reclassifications, net of tax | (461) | 216 | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | |||
Other comprehensive (loss) income | (461) | 216 | |||
Balance as of end of period | 4,321 | 5,616 | 4,321 | 5,616 | |
Tax on other comprehensive income before reclassifications | (319) | 150 | |||
Tax on amounts reclassified from accumulated other comprehensive income | 0 | 0 | |||
Tax on net current-period other comprehensive income | (319) | 150 | |||
Cash Flow Hedges [Member] | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance as of beginning of period | (93) | 12 | |||
Other comprehensive income (loss), before reclassifications, net of tax | (256) | (156) | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | [1] | 349 | 132 | ||
Other comprehensive (loss) income | 93 | (24) | |||
Balance as of end of period | 0 | (12) | 0 | (12) | |
Tax on other comprehensive income before reclassifications | (146) | (91) | |||
Tax on amounts reclassified from accumulated other comprehensive income | 202 | 77 | |||
Tax on net current-period other comprehensive income | 56 | (14) | |||
Postemployment Benefit Obligation [Member] | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance as of beginning of period | (10,283) | (7,033) | |||
Other comprehensive income (loss), before reclassifications, net of tax | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | [2] | 732 | 483 | ||
Other comprehensive (loss) income | 732 | 483 | |||
Balance as of end of period | $ (9,551) | $ (6,550) | (9,551) | (6,550) | |
Tax on other comprehensive income before reclassifications | 0 | 0 | |||
Tax on amounts reclassified from accumulated other comprehensive income | 506 | 334 | |||
Tax on net current-period other comprehensive income | $ 506 | $ 334 | |||
[1] | Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases in the Unaudited Condensed Consolidated Statements of Operations. | ||||
[2] | Included in the computation of net periodic pension cost, a component of operations and maintenance expense in the Unaudited Condensed Consolidated Statements of Operations. |
DEBT - CREDIT FACILITIES (Detai
DEBT - CREDIT FACILITIES (Details) - USD ($) | Jun. 30, 2015 | Oct. 24, 2014 | Sep. 30, 2014 | |||
NJR [Member] | Letter of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Letters of credit outstanding, amount | $ 12,700,000 | $ 20,500,000 | ||||
NJR [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Bank credit facilities | [1] | 425,000,000 | 425,000,000 | |||
Amount available at end of period | [2] | 412,345,000 | 256,484,000 | |||
NJR [Member] | Revolving Credit Facility [Member] | Notes Payable to Banks [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount outstanding at end of period | $ 0 | $ 148,000,000 | ||||
Weighted average interest rate at end of period | 0.00% | 1.08% | ||||
NJR [Member] | Bank Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Bank credit facilities | $ 100,000,000 | [3] | $ 100,000,000 | $ 0 | [3] | |
Amount available at end of period | 100,000,000 | 0 | ||||
NJNG [Member] | Letter of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Letters of credit outstanding, amount | 731,000 | 731,000 | ||||
NJNG [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Bank credit facilities | [1] | 250,000,000 | 250,000,000 | |||
Amount available at end of period | [4] | 249,269,000 | 96,269,000 | |||
NJNG [Member] | Revolving Credit Facility [Member] | Commercial Paper [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount outstanding at end of period | $ 0 | $ 153,000,000 | ||||
Weighted average interest rate at end of period | 0.00% | 0.12% | ||||
[1] | Committed credit facilities, which require commitment fees on the unused amounts. | |||||
[2] | Letters of credit outstanding total $12.7 million and $20.5 million as of June 30, 2015 and September 30, 2014, respectively, which reduces amount available by the same amount. | |||||
[3] | Uncommitted credit facilities, which require no commitment fees. | |||||
[4] | Letters of credit outstanding total $731,000 and $731,000 as of June 30, 2015 and September 30, 2014, respectively, which reduces the amount available by the same amount. |
DEBT - SCHEDULE OF LONG TERM DE
DEBT - SCHEDULE OF LONG TERM DEBT (Details) | Sep. 26, 2013USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 30, 2015USD ($)note | Jun. 30, 2014USD ($) | Apr. 15, 2015USD ($) | Nov. 07, 2014USD ($) | Mar. 13, 2014USD ($) |
Debt Instrument [Line Items] | ||||||||
Proceeds from sale-leaseback transaction | $ 7,216,000 | $ 7,576,000 | ||||||
NJR [Member] | Debt Shelf Facility Prudential [Member] | Unsecured Senior Note 3.25% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount issued and outstanding | $ 50,000,000 | |||||||
Interest rate, stated percentage | 3.25% | |||||||
NJR [Member] | Debt Shelf Facility Prudential [Member] | Unsecured Senior Note 3.48% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 3.48% | |||||||
Debt issued | $ 100,000,000 | |||||||
NJR [Member] | Debt Shelf Facility Metlife 2 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | |||||||
Line of credit facility, issuance period | 3 years | |||||||
Line of credit facility, remaining borrowing capacity | $ 100,000,000 | |||||||
NJR [Member] | Debt Shelf Facility Metlife [Member] | Unsecured Senior Note 1.94% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount issued and outstanding | $ 25,000,000 | |||||||
Interest rate, stated percentage | 1.94% | |||||||
Number of debt instruments outstanding | note | 2 | |||||||
NJR [Member] | Debt Shelf Facility Metlife [Member] | Unsecured Senior Note 2.51% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount issued and outstanding | $ 25,000,000 | |||||||
Interest rate, stated percentage | 2.51% | |||||||
NJNG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from sale-leaseback transaction | $ 7,200,000 | $ 7,600,000 | ||||||
NJNG [Member] | First Mortgage [Member] | 2.82% Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 2.82% | |||||||
Debt issued | $ 50,000,000 | |||||||
NJNG [Member] | First Mortgage [Member] | 3.66% Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 3.66% | |||||||
Debt issued | $ 100,000,000 | |||||||
NJNG [Member] | First Mortgage [Member] | 3.58% Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 3.58% | |||||||
Debt issued | $ 70,000,000 | |||||||
NJNG [Member] | First Mortgage [Member] | 4.61% Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 4.61% | |||||||
Debt issued | $ 55,000,000 |
EMPLOYEE BENEFIT PLANS - DEFINE
EMPLOYEE BENEFIT PLANS - DEFINED BENEFIT PLANS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Components of net periodic cost | ||||
Defined benefit plan, contributions by employer | $ 0 | $ 0 | ||
Pension [Member] | ||||
Components of net periodic cost | ||||
Service cost | $ 1,872,000 | $ 1,536,000 | 5,614,000 | 4,608,000 |
Interest cost | 2,549,000 | 2,517,000 | 7,649,000 | 7,550,000 |
Expected return on plan assets | (4,272,000) | (3,869,000) | (12,817,000) | (11,607,000) |
Recognized actuarial loss | 1,747,000 | 1,399,000 | 5,239,000 | 4,197,000 |
Prior service cost amortization | 28,000 | 27,000 | 83,000 | 83,000 |
Recognized net initial obligation | 0 | 0 | 0 | 0 |
Net periodic benefit cost | 1,924,000 | 1,610,000 | 5,768,000 | 4,831,000 |
OPEB [Member] | ||||
Components of net periodic cost | ||||
Service cost | 1,063,000 | 980,000 | 3,190,000 | 2,942,000 |
Interest cost | 1,434,000 | 1,434,000 | 4,304,000 | 4,300,000 |
Expected return on plan assets | (1,245,000) | (1,043,000) | (3,733,000) | (3,130,000) |
Recognized actuarial loss | 737,000 | 625,000 | 2,208,000 | 1,875,000 |
Prior service cost amortization | (91,000) | (89,000) | (273,000) | (267,000) |
Recognized net initial obligation | 0 | 3,000 | 0 | 8,000 |
Net periodic benefit cost | $ 1,898,000 | $ 1,910,000 | $ 5,696,000 | $ 5,728,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 24.30% | 28.20% | ||
Operating Loss Carryforwards [Line Items] | ||||
Forecasted annual ITC for effective tax rate calculation | $ 17,900 | |||
Forecasted annual PTC for effective tax rate calculation | $ 187 | |||
ITC carryforward, expiration period | 20 years | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 191,000 | $ 153,200 | ||
Net operating loss carryforwards, expiration term | 20 years | |||
Deferred tax assets, operating loss carryforwards | $ 11,200 | 9,000 | ||
Valuation allowance | $ 200 | 212 | ||
Internal Revenue Service (IRS) [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
ITC carryforward | $ 7,500 | |||
Forecast [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Forecasted annual ITC for effective tax rate calculation | $ 22,800 | |||
Forecasted annual PTC for effective tax rate calculation | $ 2,100 |
COMMITMENTS AND CONTINGENT LI60
COMMITMENTS AND CONTINGENT LIABILITIES - SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | |
Long-term Purchase Commitment [Line Items] | ||
Current charges recoverable through BGSS | $ 20,000 | |
Natural Gas Purchases and Future Demand Fees [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
2,015 | [1] | 178,811 |
2,016 | [1] | 413,613 |
2,017 | [1] | 207,846 |
2,018 | [1] | 176,655 |
2,019 | [1] | 163,047 |
Thereafter | [1] | 1,059,058 |
NJRES [Member] | Natural Gas Purchases [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
2,015 | 114,201 | |
2,016 | 147,187 | |
2,017 | 4,811 | |
2,018 | 0 | |
2,019 | 0 | |
Thereafter | 0 | |
NJRES [Member] | Storage Demand Fees [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
2,015 | 8,761 | |
2,016 | 25,415 | |
2,017 | 10,945 | |
2,018 | 6,942 | |
2,019 | 4,202 | |
Thereafter | 7,179 | |
NJRES [Member] | Pipeline Demand Fees [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
2,015 | 23,176 | |
2,016 | 59,397 | |
2,017 | 32,485 | |
2,018 | 15,393 | |
2,019 | 7,523 | |
Thereafter | 8,157 | |
NJRES [Member] | Natural Gas Purchases and Future Demand Fees [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
2,015 | 146,138 | |
2,016 | 231,999 | |
2,017 | 48,241 | |
2,018 | 22,335 | |
2,019 | 11,725 | |
Thereafter | $ 15,336 | |
NJRES [Member] | Minimum [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Storage and pipeline capacity, contract term | 1 year | |
NJRES [Member] | Maximum [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Storage and pipeline capacity, contract term | 10 years | |
NJNG [Member] | Natural Gas Purchases [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
2,015 | $ 12,662 | |
2,016 | 72,705 | |
2,017 | 79,911 | |
2,018 | 49,492 | |
2,019 | 50,008 | |
Thereafter | 165,917 | |
NJNG [Member] | Storage Demand Fees [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
2,015 | 7,205 | |
2,016 | 29,032 | |
2,017 | 25,336 | |
2,018 | 15,872 | |
2,019 | 11,079 | |
Thereafter | 5,345 | |
NJNG [Member] | Pipeline Demand Fees [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
2,015 | 12,806 | |
2,016 | 79,877 | |
2,017 | 54,358 | |
2,018 | 88,956 | |
2,019 | 90,235 | |
Thereafter | 872,460 | |
NJNG [Member] | Natural Gas Purchases and Future Demand Fees [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
2,015 | 32,673 | |
2,016 | 181,614 | |
2,017 | 159,605 | |
2,018 | 154,320 | |
2,019 | 151,322 | |
Thereafter | $ 1,043,722 | |
[1] | Does not include amounts related to intercompany asset management agreements between NJRES and NJNG. |
COMMITMENTS AND CONTINGENT LI61
COMMITMENTS AND CONTINGENT LIABILITIES - LEGAL PROCEEDINGS (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | 18 Months Ended | |
Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($)site | May. 31, 2015USD ($) | Sep. 30, 2014USD ($) | |
Site Contingency [Line Items] | ||||
Recovery of expenditures, including carrying costs, rolling period approved by the BPU | 7 years | |||
Regulatory assets | $ 351,763 | $ 351,763 | $ 377,575 | |
Number of MGP sites | site | 5 | |||
Minimum [Member] | ||||
Site Contingency [Line Items] | ||||
Litigation settlement, gross | $ 151,300 | |||
Maximum [Member] | ||||
Site Contingency [Line Items] | ||||
Litigation settlement, gross | 249,800 | |||
Environmental Remediation Costs Expended, Net of Recoveries [Member] | ||||
Site Contingency [Line Items] | ||||
Regulatory assets | 18,095 | 18,095 | 30,916 | |
Environmental Remediation Costs Liability for Future Expenditures [Member] | ||||
Site Contingency [Line Items] | ||||
Regulatory assets | 177,000 | $ 177,000 | $ 177,000 | |
RA [Member] | July 2013 SBC Filing [Member] | ||||
Site Contingency [Line Items] | ||||
Reduction in the RA factor | $ 18,700 | |||
RA [Member] | September 2014 SBC Filing [Member] | ||||
Site Contingency [Line Items] | ||||
Reduction in the RA factor | $ 8,500 |
BUSINESS SEGMENT AND OTHER OP62
BUSINESS SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT INCOME TO CONSOLIDATED (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Utility | $ 116,307 | $ 111,383 | $ 699,737 | $ 739,380 | |
Nonutility | 342,160 | 576,874 | 1,595,944 | 2,406,851 | |
Total operating revenues | 458,467 | 688,257 | 2,295,681 | 3,146,231 | |
Depreciation and amortization | 15,574 | 13,620 | 45,164 | 39,014 | |
Interest income | [1] | (25) | 278 | 311 | 790 |
Interest expense, net of capitalized interest | 7,327 | 6,507 | 21,005 | 19,108 | |
Income tax (benefit) provision | (4,318) | (7,808) | 56,693 | 65,377 | |
Equity in earnings of affiliates | 3,367 | 2,681 | 9,749 | 8,056 | |
Net financial earnings (loss) | 2,477 | 4,514 | 156,729 | 196,295 | |
Capital expenditures | 68,996 | 84,511 | 227,418 | 201,276 | |
Investments in equity investees | 1,049 | 0 | $ 2,313 | $ 0 | |
Canada [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Percentage to total operating revenues | 3.60% | 3.60% | |||
Midstream Investments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investments in equity investees | 1,049 | 0 | $ 2,313 | $ 0 | |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total operating revenues | 445,943 | 675,171 | 2,325,568 | 3,187,313 | |
Depreciation and amortization | 15,338 | 13,406 | 44,466 | 38,387 | |
Interest income | [1] | 471 | 518 | 1,087 | 1,498 |
Interest expense, net of capitalized interest | 7,455 | 6,421 | 21,191 | 18,780 | |
Income tax (benefit) provision | (4,890) | (9,301) | 57,402 | 64,816 | |
Net financial earnings (loss) | 597 | 2,015 | 156,871 | 195,587 | |
Capital expenditures | 68,967 | 84,352 | 227,328 | 200,640 | |
Operating Segments [Member] | Natural Gas Distribution [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 10,810 | 10,567 | 32,002 | 30,374 | |
Interest income | [1] | (25) | 137 | 75 | 579 |
Interest expense, net of capitalized interest | 5,005 | 4,540 | 14,002 | 12,412 | |
Income tax (benefit) provision | 3,754 | 4,348 | 41,698 | 42,256 | |
Net financial earnings (loss) | 7,172 | 4,882 | 83,952 | 79,564 | |
Capital expenditures | 45,749 | 38,186 | 115,740 | 109,071 | |
Operating Segments [Member] | Natural Gas Distribution [Member] | External Customers [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Utility | 116,307 | 111,383 | 699,737 | 739,380 | |
Operating Segments [Member] | Energy Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 23 | 15 | 68 | 40 | |
Interest income | [1] | 250 | 210 | 263 | 210 |
Interest expense, net of capitalized interest | 209 | 166 | 1,010 | 1,443 | |
Income tax (benefit) provision | (9,958) | (16,256) | 39,842 | 36,816 | |
Net financial earnings (loss) | (5,270) | (8,628) | 47,482 | 90,153 | |
Operating Segments [Member] | Energy Services [Member] | External Customers [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Nonutility | [2] | 320,221 | 560,115 | 1,546,890 | 2,367,641 |
Operating Segments [Member] | Energy Services [Member] | Intercompany [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Nonutility | 1,554 | 518 | 60,777 | 72,285 | |
Operating Segments [Member] | Clean Energy Ventures [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 4,504 | 2,823 | 12,392 | 7,969 | |
Interest income | [1] | 0 | 0 | 22 | 0 |
Interest expense, net of capitalized interest | 2,078 | 1,382 | 5,556 | 3,817 | |
Income tax (benefit) provision | (423) | 1,286 | (29,186) | (18,146) | |
Net financial earnings (loss) | (3,792) | 3,865 | 18,226 | 20,286 | |
Capital expenditures | 23,218 | 46,166 | 111,588 | 91,569 | |
Operating Segments [Member] | Clean Energy Ventures [Member] | External Customers [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Nonutility | 7,861 | 3,155 | 18,164 | 8,007 | |
Operating Segments [Member] | Midstream Investments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 1 | 1 | 4 | 4 | |
Interest income | [1] | 246 | 171 | 727 | 709 |
Interest expense, net of capitalized interest | 163 | 333 | 623 | 1,108 | |
Income tax (benefit) provision | 1,737 | 1,321 | 5,048 | 3,890 | |
Equity in earnings of affiliates | 4,266 | 3,511 | 12,622 | 10,594 | |
Net financial earnings (loss) | 2,487 | 1,896 | 7,211 | 5,584 | |
Home Services and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 238 | 212 | 714 | 627 | |
Interest income | [1] | 13 | 1 | 214 | 1 |
Interest expense, net of capitalized interest | 134 | 86 | 76 | 328 | |
Income tax (benefit) provision | 720 | 1,680 | (704) | 360 | |
Net financial earnings (loss) | 1,909 | 2,485 | (42) | 708 | |
Capital expenditures | 29 | 159 | 90 | 636 | |
Home Services and Other [Member] | External Customers [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Nonutility | 14,078 | 13,604 | 30,890 | 31,203 | |
Home Services and Other [Member] | Intercompany [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Nonutility | 514 | 194 | 1,300 | 693 | |
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Nonutility | (2,068) | (712) | (62,077) | (72,978) | |
Depreciation and amortization | (2) | 2 | (16) | 0 | |
Interest income | [1] | (509) | (241) | (990) | (709) |
Interest expense, net of capitalized interest | (262) | 0 | (262) | 0 | |
Income tax (benefit) provision | (148) | (187) | (5) | 201 | |
Equity in earnings of affiliates | (899) | (830) | (2,873) | (2,538) | |
Net financial earnings (loss) | $ (29) | $ 14 | $ (100) | $ 0 | |
[1] | Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. | ||||
[2] | Includes sales to Canada, which accounted for 3.6 percent of total operating revenues during the nine months ended June 30, 2015 and 2014. |
BUSINESS SEGMENT AND OTHER OP63
BUSINESS SEGMENT AND OTHER OPERATIONS DATA - NET FINANCIAL EARNINGS LOSS RECONCILIATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting [Abstract] | ||||
Consolidated net financial earnings | $ 2,477 | $ 4,514 | $ 156,729 | $ 196,295 |
Unrealized loss (gain) from derivative instruments and related transactions | 1,188 | (6,585) | (19,010) | 45,811 |
Effects of economic hedging related to natural gas inventory | 16,464 | 38,139 | (15,751) | (3,409) |
Tax adjustments | (7,715) | (12,766) | 14,727 | (12,497) |
NET (LOSS) INCOME | $ (7,460) | $ (14,274) | $ 176,763 | $ 166,390 |
BUSINESS SEGMENT AND OTHER OP64
BUSINESS SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $ 3,208,924 | $ 3,158,804 | |
Operating Segments [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 3,144,038 | 3,135,362 | |
Operating Segments [Member] | Natural Gas Distribution [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 2,239,870 | 2,143,684 | |
Operating Segments [Member] | Energy Services [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 261,485 | 457,080 | |
Operating Segments [Member] | Clean Energy Ventures [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 490,090 | 380,707 | |
Operating Segments [Member] | Midstream [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 152,593 | 153,891 | |
Home Services and Other [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 115,005 | 82,413 | |
Eliminations [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | [1] | $ (50,119) | $ (58,971) |
[1] | Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | Apr. 01, 2010USD ($)Bcf | Sep. 30, 2014USD ($)Bcf / d | Jun. 30, 2015USD ($)contract | Jun. 30, 2014USD ($) |
Related Party Transaction [Line Items] | ||||
Number of asset management agreements | contract | 3 | |||
NJRES to Steckman RIdge and Iroquios Affliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Demand fees expense recognized pertaining to related party agreement | $ 4,700 | $ 2,200 | ||
NJRES to Steckman Ridge Affiliate | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | $ 187 | 162 | ||
NJRES to Iroquois Affiliate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related parties | 389 | 406 | ||
NJNG to Steckman RIdge Affiliate | ||||
Related Party Transaction [Line Items] | ||||
Related party agreement term | 10 years | |||
Agreement for natural gas storage capacity between NJNG and affiliate (in bcf) | Bcf | 3 | |||
Approximate annual demand fees under agreement from April 1 2010 to March 31 2020 | $ 9,300 | |||
NJNG to Steckman RIdge and Iroquios Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Demand fees expense recognized pertaining to related party agreement | 4,700 | $ 7,300 | ||
Due to related parties | $ 823 | $ 848 | ||
NJNG to PennEast Affiliate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Natural Gas Transportation Capacity under Precedent Agreement from NJNG with PennEast, period | 15 years | |||
Natural Gas Transportation Capacity under Precedent Agreement from NJNG with PennEast (in bcf) | Bcf / d | 0.18 |