New Jersey Resources (NJR) 10-Q 5 May 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2017	May 02, 2017
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 Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		86,438,897
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
OPERATING REVENUES
Utility	$ 295,546	$ 242,536	$ 481,102	$ 394,142
Nonutility	438,000	331,657	793,472	624,309
Total operating revenues	733,546	574,193	1,274,574	1,018,451
OPERATING EXPENSES
Gas Purchases - Utility	112,445	82,374	173,765	129,039
Gas Purchases - Nonutility	367,328	287,883	705,260	541,971
Gas Purchases - Related parties	2,072	2,077	4,183	4,151
Operation and maintenance	52,342	53,125	104,570	99,358
Regulatory rider expenses	19,893	21,215	32,494	30,843
Depreciation and amortization	20,328	17,744	39,588	34,226
Energy and other taxes	19,485	15,842	33,586	25,479
Total operating expenses	593,893	480,260	1,093,446	865,067
OPERATING INCOME	139,653	93,933	181,128	153,384
Other income, net	5,338	2,202	9,114	4,126
Interest expense, net of capitalized interest	11,436	7,369	22,051	14,146
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES	133,555	88,766	168,191	143,364
Income tax provision	23,932	17,815	25,950	24,537
Equity in earnings of affiliates	5,079	2,402	7,390	4,808
NET INCOME	$ 114,702	$ 73,353	$ 149,631	$ 123,635
EARNINGS PER COMMON SHARE
Basic (usd per share)	$ 1.33	$ 0.85	$ 1.74	$ 1.44
Diluted (usd per share)	1.32	0.84	1.72	1.42
DIVIDENDS DECLARED PER COMMON SHARE (usd per share)	$ 0.255	$ 0.24	$ 0.51	$ 0.48
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic (in shares)	86,275	85,834	86,182	85,754
Diluted (in shares)	87,101	86,858	86,993	86,778

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income		$ 114,702	$ 73,353	$ 149,631	$ 123,635
Other comprehensive income, net of tax
Unrealized gain on available for sale securities, net of tax of $(670), $(3,154), $(4,456), and $(5,768), respectively		1,408	4,500	6,923	8,201
Net unrealized gain on derivatives, net of tax of $0, $(21), $0 and $(2), respectively	[1]	0	38	0	5
Adjustment to postemployment benefit obligation, net of tax of $(217), $(175), $(434), and $(349) respectively		318	257	635	513
Other comprehensive income		1,726	4,795	7,558	8,719
Comprehensive income		$ 116,428	$ 78,148	$ 157,189	$ 132,354
[1]	Effective January 1, 2016, the Company elected not to designate its foreign currency derivatives as accounting hedges and, as a result, changes in fair value of the effective portion of the hedges are no longer recorded in OCI. See Note 4 Derivative Instruments for more information on these transactions.

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Tax on unrealized (loss) gain on available for sale securities	$ (670)	$ (3,154)	$ (4,456)	$ (5,768)
Tax on net unrealized (loss) gain on derivatives	0	(21)		(2)
Tax on adjustment for postemployment benefit obligation	$ (217)	$ (175)	$ (434)	$ (349)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 149,631	$ 123,635
Adjustments to reconcile net income to cash flows from operating activities
Unrealized (gain) loss on derivative instruments	(26,553)	2,035
Gain on sale of property and available for sale securities, net	7,287	0
Depreciation and amortization	39,588	34,226
Allowance for equity used during construction	(1,586)	(2,357)
Allowance for bad debt expense	519	873
Deferred income taxes	32,202	17,980
Manufactured gas plant remediation costs	(3,704)	(2,656)
Distributions received from equity investees, net of equity in earnings	(463)	2,261
Cost of removal - asset retirement obligations	(242)	(66)
Contributions to postemployment benefit plans	(1,884)	(32,167)
Tax benefit from stock-based compensation	1,231	1,660
Changes in:
Components of working capital	(31,231)	(13,788)
Other noncurrent assets	24,580	(15,794)
Other noncurrent liabilities	(2,997)	2,163
Cash flows from operating activities	171,804	118,005
CASH FLOWS (USED IN) INVESTING ACTIVITIES
Utility plant	(58,761)	(76,326)
Solar and wind equipment	(89,905)	(70,882)
Real estate properties and other	(516)	(1,069)
Cost of removal	(14,838)	(20,080)
Investments in equity investees	(10,538)	(5,948)
Distribution from equity investees in excess of equity in earnings	1,273	1,131
Withdrawal from restricted cash construction fund	1,337	1,007
Proceeds from sale of property, net of closing costs	9,443	748
Proceeds from sale of available for sale securities	6,639	0
Cash flows (used in) investing activities	(155,866)	(171,419)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from short-term debt	116,200	86,150
Payments of long-term debt	(41,660)	(5,807)
Proceeds from sale-leaseback transaction	9,587	7,107
Payments of common stock dividends	(43,898)	(41,115)
Proceeds from issuance of common stock	9,731	8,220
Purchases of treasury stock	(6,355)	(1,008)
Tax withholding payments related to net settled stock compensation	(4,354)	(3,181)
Cash flows from financing activities	39,251	50,366
Change in cash and cash equivalents	55,189	(3,048)
Cash and cash equivalents at beginning of period	37,546	4,928
Cash and cash equivalents at end of period	92,735	1,880
CHANGES IN COMPONENTS OF WORKING CAPITAL
Receivables	(137,408)	(16,750)
Inventories	62,321	43,479
Recovery of gas costs	(9,616)	(20,396)
Gas purchases payable	21,156	(31,324)
Gas purchases payable - related parties	3	(409)
Prepaid and accrued taxes	25,829	43,154
Accounts payable and other	(10,027)	(25,026)
Restricted broker margin accounts	28,432	(12,478)
Customers' credit balances and deposits	(12,765)	226
Other current assets	844	5,736
Components of working capital	(31,231)	(13,788)
Cash paid (received) for:
Interest (net of amounts capitalized)	21,578	15,647
Income taxes	(6,431)	688
Accrued capital expenditures	$ 23,284	$ 21,663

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
PROPERTY, PLANT AND EQUIPMENT
Utility plant, at cost	$ 2,167,728	$ 2,107,375
Construction work in progress	108,373	122,268
Solar and wind equipment, real estate properties and other, at cost	758,864	631,696
Construction work in progress	31,464	93,791
Total property, plant and equipment	3,066,429	2,955,130
Accumulated depreciation and amortization, utility plant	(475,075)	(467,702)
Accumulated depreciation and amortization, solar and wind equipment, real estate properties and other	(95,050)	(79,776)
Property, plant and equipment, net	2,496,304	2,407,652
CURRENT ASSETS
Cash and cash equivalents	92,735	37,546
Customer accounts receivable
Billed	242,698	142,658
Unbilled revenues	42,657	5,744
Allowance for doubtful accounts	(4,929)	(4,865)
Regulatory assets	43,344	54,286
Gas in storage, at average cost	143,514	206,251
Materials and supplies, at average cost	11,194	10,778
Prepaid and accrued taxes	15,528	34,179
Derivatives, at fair value	32,103	29,964
Restricted broker margin accounts	23,604	47,644
Asset held for sale	0	7,660
Other	35,509	35,419
Total current assets	677,957	607,264
NONCURRENT ASSETS
Investments in equity method investees	152,891	141,148
Regulatory assets	396,924	441,294
Derivatives, at fair value	6,347	5,227
Available for sale securities	65,884	55,789
Other	61,052	60,196
Total noncurrent assets	683,098	703,654
Total assets	3,857,359	3,718,570
CAPITALIZATION
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding March 31, 2017 — 86,363,986; September 30, 2016 — 86,086,355	222,235	221,654
Premium on common stock	219,074	215,580
Accumulated other comprehensive loss, net of tax	(7,597)	(15,155)
Treasury stock at cost and other; shares March 31, 2017 — 2,529,817; September 30, 2016 — 2,575,139	(78,616)	(81,044)
Retained earnings	931,184	825,556
Common stock equity	1,286,280	1,166,591
Long-term debt	1,023,968	1,055,038
Total capitalization	2,310,248	2,221,629
CURRENT LIABILITIES
Current maturities of long-term debt	60,723	61,452
Short-term debt	237,900	121,700
Gas purchases payable	160,605	139,452
Gas purchases payable to related parties	1,156	1,150
Accounts payable and other	70,981	107,184
Dividends payable	22,023	21,975
Accrued taxes	8,258	1,080
Regulatory liabilities	5,747	9,469
New Jersey clean energy program	6,239	14,232
Derivatives, at fair value	32,559	61,080
Customers' credit balances and deposits	20,069	32,834
Total current liabilities	626,260	571,608
NONCURRENT LIABILITIES
Deferred income taxes	507,111	473,847
Deferred investment tax credits	4,458	4,619
Deferred gain	28,121	28,519
Derivatives, at fair value	6,105	25,252
Manufactured gas plant remediation	165,849	172,000
Postemployment employee benefit liability	141,797	141,604
Regulatory liabilities	28,457	41,411
Asset retirement obligation	29,924	28,379
Other	9,029	9,702
Total noncurrent liabilities	920,851	925,333
Commitments and contingent liabilities (Note 12)
Total capitalization and liabilities	$ 3,857,359	$ 3,718,570

CONDENSED CONSOLIDATED BALANCE7

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2017	Sep. 30, 2016
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	86,363,986	86,086,355
Treasury stock at cost and other, shares	2,529,817	2,575,139

NATURE OF THE BUSINESS

NATURE OF THE BUSINESS	6 Months Ended
	Mar. 31, 2017
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 528,000 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 Clean Energy Ventures Corporation, the Company's clean energy subsidiary, comprises the Clean Energy Ventures segment and consists of the Company's capital investments in commercial and residential solar projects located throughout New Jersey and onshore wind investments in Montana, Iowa, Kansas, Wyoming and Pennsylvania; 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 physical wholesale energy and energy management services in the U.S. and Canada; 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, located in Pennsylvania, and NJR Pipeline Company, which holds the Company's 20 percent ownership interest in PennEast and NJNR Pipeline Company, which holds the Company's 1.84 million Common Units of Dominion Midstream Partners, L.P. The investments in Steckman Ridge, PennEast and DM comprise the Midstream segment; and NJR Retail Holdings Corporation has two principal subsidiaries, NJR Home Services Company, which provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey, and Commercial Realty & Resources Corporation, which owns commercial real estate. NJR Retail Holdings Corporation is included in Home Services and Other operations. NJR Energy Corporation, a subsidiary of CR&R, was dissolved on November 28, 2016, and all assets were moved to CR&R during the first quarter of fiscal 2017.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Mar. 31, 2017
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 SEC and GAAP. The September 30, 2016 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 2016 Annual Report on Form 10-K. The Unaudited Condensed Consolidated Financial Statements include the accounts of NJR and its subsidiaries. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary for a fair presentation of the results of the interim periods presented. These adjustments are of a normal and recurring nature. Because of the seasonal nature of NJR's utility and wholesale energy services operations, in addition to other factors, the financial results for the interim periods presented are not indicative of the results that are to be expected for the fiscal year ending September 30, 2017 . Intercompany transactions and accounts have been eliminated. Gas in Storage The following table summarizes gas in storage, at average cost by company as of: March 31, September 30, ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf NJRES $ 128,281 46.4 $ 130,493 62.0 NJNG 15,233 4.3 75,758 21.3 Total $ 143,514 50.7 $ 206,251 83.3 Sales Tax Accounting Sales tax that is collected from customers is presented in both operating revenues and operating expenses on the Unaudited Condensed Consolidated Statements of Operations was $16.9 million and $28.1 million during the three and six months ended March 31, 2017 , respectively, and $13.5 million and $20.7 million during the three and six months ended March 31, 2016 , respectively. Effective January 1, 2017, the New Jersey sales tax rate decreased from 7 percent to 6.875 percent . Sale of Asset On March 8, 2017 , CR&R sold an approximately 56,400 square foot office building on five acres of land located in Monmouth County for $9.4 million , net of closing costs, generating a pre-tax gain of $1.9 million , which was recognized in O&M on the Unaudited Condensed Consolidated Statements of Operations. Available for Sale Securities Included in available for sale securities on the Unaudited Condensed Consolidated Balance Sheets are investments in two publicly traded energy companies. The Company's available for sale securities had a fair value of $65.9 million and $55.8 million as of March 31, 2017 and September 30, 2016 , respectively. Total unrealized gains associated with these investments are included as a part of accumulated other comprehensive income, a component of common stock equity and were $18.5 million , $11.1 million after tax, and $7.2 million , $4.2 million after tax, as of March 31, 2017 and September 30, 2016 , respectively. During the three and six months ended March 31, 2017 , NJR received proceeds of approximately $3.4 million and $6.6 million , respectively, from the sale of available for sale securities and realized a pre-tax gain of $2.8 million and $5.4 million , respectively, which is included in other income, net in the Unaudited Condensed Consolidated Statements of Operations. Reclassifications of realized gains out of other comprehensive income into income are determined based on average cost. Customer Accounts Receivable Customer accounts receivable include outstanding billings from the following subsidiaries as of: (Thousands) March 31, September 30, NJRES $ 135,199 56 % $ 102,884 72 % NJNG (1) 100,449 41 30,951 22 NJRCEV 2,405 1 1,807 1 NJRHS and other 4,645 2 7,016 5 Total $ 242,698 100 % $ 142,658 100 % (1) Does not include unbilled revenues of $42.7 million and $5.7 million as of March 31, 2017 and September 30, 2016 , respectively. Loans Receivable NJNG provides loans, with terms ranging from two to 10 years, to customers that elect to purchase and install certain energy efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at net present value on the Unaudited Condensed Consolidated Balance Sheets. The Company recorded $8.2 million and $7.8 million in other current assets and $40.7 million and $39.5 million in other noncurrent assets as of March 31, 2017 and September 30, 2016 , respectively, on the Unaudited Condensed Consolidated Balance Sheets, related to the loans. NJNG's policy is to establish an allowance for doubtful accounts when loan balances are in arrears for more than 60 days . As of March 31, 2017 and September 30, 2016 , there was no allowance for doubtful accounts established for the SAVEGREEN loans. Stock Based Compensation Effective January 25, 2017, the shareholders of NJR approved the NJR 2017 Stock Award and Incentive Plan, which replaced the NJR 2007 Stock Award and Incentive Plan. The 2007 plan had 2,367,338 and 4,223 shares available for future issuance to employees and directors, respectively, which were transferred into the 2017 plan. In addition, the 2017 plan increases the total shares available for issuance to 3,135,000 . Recently Adopted Updates to the Accounting Standards Codification Stock Compensation In March 2016, the FASB issued ASU 2016-09, an amendment to ASC 718, Compensation - Stock Compensation , which simplifies several aspects of the accounting for employee share-based compensation, including the accounting for income taxes and forfeitures. The new guidance also increased the threshold for tax withholding to the maximum statutory rate, as applicable, to maintain equity classification and amended the classification of certain tax transactions within the statement of cash flows. The Company elected to early adopt the amended guidance during the third quarter of fiscal 2016 and applied the new provisions as of the beginning of the year of adoption on a retrospective or prospective basis depending on each amendment’s transition requirements. As such, effective October 1, 2015, NJR is recognizing forfeitures as they occur and is recognizing excess tax benefits (deficiencies) as a component of income tax (benefit) provision in its Unaudited Condensed Consolidated Statements of Operations on a prospective basis. All related information for prior periods has been adjusted throughout this report on a retrospective basis to reflect the effects of the adoption. See Note 11. Income Taxes for more information on these transactions. In addition, the following amounts on the Unaudited Condensed Consolidated Financial Statements have been adjusted retrospectively during the three and six months ended March 31, 2016 : (Thousands) As Previously Reported Effect of Change As Adjusted Three Months Ended Statements of Operations Income tax provision $ 17,840 $ (25 ) $ 17,815 Net income $ 73,328 $ 25 $ 73,353 Earnings per common share Basic $ 0.85 $ — $ 0.85 Diluted $ 0.84 $ — $ 0.84 Six Months Ended Statements of Operations Income tax provision $ 26,197 $ (1,660 ) $ 24,537 Net income $ 121,975 $ 1,660 $ 123,635 Earnings per common share Basic $ 1.42 $ 0.02 $ 1.44 Diluted $ 1.41 $ 0.01 $ 1.42 Cash flows from operating activities Net income $ 121,975 $ 1,660 $ 123,635 Tax benefit from stock based compensation $ — $ 1,660 $ 1,660 Other noncurrent liabilities $ 2,302 $ (139 ) $ 2,163 Net cash flows from operating activities $ 114,824 $ 3,181 $ 118,005 Cash flows from financing activities Tax withholding payments related to net settled stock compensation $ — $ (3,181 ) $ (3,181 ) Cash flows from financing activities $ 53,547 $ (3,181 ) $ 50,366 There was no impact to the Unaudited Condensed Consolidated Balance Sheets upon adoption of the new guidance. 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 Company adopted the new guidance in the first quarter of fiscal 2017 and applied the new provisions on a prospective basis, which did not impact its financial position, results of operations or 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 GAAP and reevaluates whether limited partnerships and similar entities must be consolidated. The Company adopted the new guidance in the first quarter of fiscal 2017 and applied the new provisions on a full retrospective basis, which did not impact its financial position, results of operations or 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 on the balance sheet as a deduction from the carrying amount of the liability. The amendment does not affect the recognition and measurement guidance for debt issuance costs. In August 2015, the FASB issued ASU No. 2015-15, which clarified that the amendment contained within ASU No. 2015-03 does not require companies to modify their accounting for costs incurred in obtaining revolving credit facilities. The Company adopted the new guidance in the first quarter of fiscal 2017 and applied the new provisions on a full retrospective basis. In addition, the following amounts on the Unaudited Condensed Consolidated Balance Sheets have been adjusted, retrospectively, as of September 30, 2016. (Thousands) As Previously Reported Effect of Change As Adjusted Assets Other noncurrent assets $ 68,708 $ (8,512 ) $ 60,196 Total noncurrent assets $ 712,166 $ (8,512 ) $ 703,654 Total assets $ 3,727,082 $ (8,512 ) $ 3,718,570 Capitalization and Liabilities Long-term debt $ 1,063,550 $ (8,512 ) $ 1,055,038 Total capitalization $ 2,230,141 $ (8,512 ) $ 2,221,629 Total capitalization and liabilities $ 3,727,082 $ (8,512 ) $ 3,718,570 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 amendment provides 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 Company adopted the new guidance in the first quarter of fiscal 2017 and applied the new provisions on a prospective basis, which did not impact its financial position, results of operations or cash flows upon adoption. Other Recent Updates to the Accounting Standards Codification 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. In August 2015, the FASB issued ASU No. 2015-14, which defers the implementation of the new guidance for one year. The new guidance will become effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year. The Company continues to evaluate the provisions of ASC 606, however, based on the review of customer contracts to date, it is not anticipating a material impact to its financial position, results of operations or cash flows upon adoption. The Company anticipates significant new disclosures as a result of the new standard and currently expects to transition to the new guidance using the modified retrospective approach. The Company is also monitoring industry specific developments that may have an impact, including our ability to recognize revenue for contracts where collectability is uncertain. Inventory In July 2015, the FASB issued ASU No. 2015-11, an amendment to ASC 330, Inventory , which requires entities to measure most inventory “at the lower of cost or net realizable value,” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The guidance is effective for the Company’s fiscal year ending September 30, 2018, and interim periods within that year. Upon adoption, the amendment will be applied on a prospective basis. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations and cash flows upon adoption. Financial Instruments In January 2016, the FASB issued ASU 2016-01, an amendment to ASC 825, Financial Instruments , to address certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The standard affects investments in equity securities that do not result in consolidation and are not accounted for under the equity method and the presentation of certain fair value changes for financial liabilities measured at fair value. It also simplifies the impairment assessment of equity investments without a readily determinable fair value by requiring a qualitative assessment. The guidance is effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year. Upon adoption, the amendment will be applied on a modified-retrospective basis. The Company evaluated the amendment and noted that, upon adoption, subsequent changes to the fair value of the Company’s available for sale securities will be recorded in the Consolidated Statement of Operations as opposed to other comprehensive income. The Company does not expect any other material impacts to its financial position, results of operations or cash flows upon adoption. In June 2016, the FASB issued ASU 2016-13, an amendment to ASC 326, Financial Instruments - Credit Losses, which changes the impairment model for certain financial assets that have a contractual right to receive cash, including trade and loan receivables. The new model requires recognition based upon an estimation of expected credit losses rather than recognition of losses when it is probable that they have been incurred. The guidance is effective for the Company’s fiscal year ending September 30, 2021, and interim periods within that year, with early adoption permitted. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations and cash flows upon adoption and will apply the new guidance to its trade and loan receivables on a modified retrospective basis. Leases In February 2016, the FASB issued ASU 2016-02, an amendment to ASC 842, Leases , which provides for a comprehensive overhaul of the lease accounting model and changes the definition of a lease within the accounting literature. Under the new standard, all leases with a term greater than one year will be recorded on the balance sheet. Amortization of the related asset will be accounted for using one of two approaches prescribed by the guidance. Additional disclosures will be required to allow the user to assess the amount, timing and uncertainty of cash flows arising from leasing activities. A modified retrospective transition approach is required for leases existing at the time of adoption. The guidance is effective for the Company’s fiscal year ending September 30, 2020, and interim periods within that year, with early adoption permitted. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations and cash flows upon adoption. Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, an amendment to ASC 230, Statement of Cash Flows, which addresses eight specific cash flow issues for which there has been diversity in practice. The guidance is effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year with early adoption permitted. Upon adoption, the amendment will be applied on a retrospective basis. The Company is currently evaluating the amendment to understand the impact on its consolidated statements of cash flows upon adoption. In November 2016, the FASB issued ASU No. 2016-18, an amendment to ASC 230, Statement of Cash Flows, which requires that any amounts that are deemed to be restricted cash or restricted cash-equivalents be included in cash and cash-equivalent balances on the cash flow statement and, therefore, transfers between cash and restricted cash accounts will no longer be recognized within the statement of cash flows. The guidance is effective for the Company’s fiscal year ending September 30, 2019, with early adoption permitted. Upon adoption, the amendment will be applied on a retrospective basis. Based on the Company's historical restricted cash balances, it does not expect any material impacts to its financial position, results of operations or cash flows upon adoption. Business Combinations In January 2017, the FASB issued ASU No. 2017-01, an amendment to ASC 805, Business Combinations , clarifying the definition of a business in the ASC, which is intended to reduce the complexity surrounding the assessment of a transaction as an asset acquisition or business combination. The amendment provides an initial fair value screen to reduce the number of transactions that would fit the definition of a business, and when the screen threshold is not met, provides an updated model that further clarifies the characteristics of a business. The guidance is effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year with early adoption permitted. Upon adoption, the amendment will be applied on a prospective basis. The amendment could potentially have material impacts on future transactions that the Company may enter into by altering the Company’s conclusion on what accounting to apply to acquisitions. Gains and Losses from the Derecognition of Nonfinancial Assets In February 2017, the FASB issued ASU No. 2017-05, an amendment to ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets , which clarifies the scope and accounting related to the derecognition of nonfinancial assets, including partial sales and contributions of nonfinancial assets to a joint venture or other non-controlled investee. The guidance is effective concurrently with ASC 606, which is effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year with early adoption permitted. ASU No. 2017-05 may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The Company is currently evaluating the amendment to understand the impact on its financial position, results from operations, and cash flows upon adoption. Compensation - Retirement Benefits In March 2017, the FASB issued ASU No. 2017-07, an amendment to ASC 715, Compensation - Retirement Benefits , which changes the presentation of net periodic benefit cost on the income statement by requiring companies to present all components of net periodic benefit cost, other than service cost, outside a subtotal of income from operations. The amendment also states that only the service cost component of net periodic benefits costs is eligible for capitalization, when applicable. The guidance is effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year with early adoption permitted. Upon adoption, the amendment will be applied on a retrospective basis for presentation and changes to capitalization of costs will be applied on a prospective basis. The Company is continuing to evaluate the amendment to fully understand the impact on its financial position, results of operations and cash flows upon adoption. The Company is also monitoring industry specific developments on the new guidance to determine the appropriate treatment of these changes in a rate regulated environment.

REGULATION

REGULATION	6 Months Ended
	Mar. 31, 2017
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 capital investments based on the BPU's approval. The impact of the ratemaking process and decisions authorized by the BPU allows NJNG to capitalize or defer certain costs that are expected to be recovered from its customers as regulatory assets and to recognize certain obligations representing amounts that are probable future expenditures as regulatory liabilities in accordance with accounting guidance applicable to regulated operations. NJNG's recovery of costs is facilitated through its base rates, BGSS and other regulatory tariff riders. NJNG is required to make an annual filing to the BPU by June 1 of each year for review of its BGSS, CIP and various other programs and related rates. Annual rate changes are requested to be effective at the beginning of the following fiscal year. In addition, NJNG is also permitted to request approval of certain rate or program changes on an interim basis. All rate and program changes are subject to proper notification and BPU review and approval. In September 2016 , the BPU approved NJNG's base rate case, effective October 1, 2016, which included an increase in base rates in the amount of $45 million . The base rate increase includes a return on common equity of 9.75 percent , a common equity ratio of 52.5 percent and a depreciation rate of 2.4 percent . The approval also included the five -year extension of SAFE II, rate recovery of NJ RISE capital investment costs through June 30, 2016, recovery of NJNG’s SAFE I, NGV and LNG capital investments and recovery of other costs previously deferred in regulatory assets. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets are comprised of the following: (Thousands) March 31, September 30, Regulatory assets-current Conservation Incentive Program $ 23,834 $ 36,957 New Jersey Clean Energy Program 6,239 14,232 Underrecovered gas costs 13,271 — Derivatives at fair value, net — 3,097 Total current regulatory assets $ 43,344 $ 54,286 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 19,067 $ 19,595 Liability for future expenditures 165,849 172,000 Deferred income taxes 21,209 20,273 Derivatives at fair value, net 4,392 23,384 SAVEGREEN 15,604 25,208 Postemployment and other benefit costs 151,414 157,027 Deferred Superstorm Sandy costs 14,116 15,201 Other noncurrent regulatory assets 5,273 8,606 Total noncurrent regulatory assets $ 396,924 $ 441,294 Regulatory liability-current Derivatives at fair value, net $ 5,747 $ — Overrecovered gas costs — 9,469 Total current regulatory liabilities $ 5,747 $ 9,469 Regulatory liabilities-noncurrent Cost of removal obligation $ 17,224 $ 30,549 New Jersey Clean Energy Program 10,269 10,657 Other noncurrent regulatory liabilities 964 205 Total noncurrent regulatory liabilities $ 28,457 $ 41,411 Regulatory filings and/or actions that occurred during the current fiscal year include the following: • On March 31, 2017 , NJNG filed its annual petition with the BPU requesting a base rate change in the amount of $4.3 million for the recovery of NJ RISE and SAFE II capital investment costs related to the period ending June 30, 2017 , pursuant to the base rate case order dated September 23, 2016 . The filing will be updated to reflect actual results in July 2017, with changes to base rates effective October 1, 2017 .

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Mar. 31, 2017
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 to hedge Canadian dollar denominated gas purchases and/or sales. Therefore, the Company's primary underlying risks include commodity prices, interest rates and foreign currency. These contracts are accounted for as derivatives. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets. For a more detailed discussion of the Company's fair value measurement policies and level disclosures associated with NJR's derivative instruments, see Note 5. Fair Value . NJRES Since NJRES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS, the changes in the fair value of these derivatives are recorded as a component of gas purchases or operating revenues, as appropriate for 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 U.S. dollar. NJRES may utilize foreign currency derivatives to lock in the exchange rate associated with natural gas transactions denominated in Canadian currency. The derivatives may include currency forwards, futures, or swaps and are accounted for as derivatives. These derivatives are typically used to hedge demand fee payments on pipeline capacity, storage and gas purchase agreements. Accordingly, changes in the fair value of foreign exchange contracts are recognized in gas purchases on the Unaudited Condensed Consolidated Statements of Operations. For transactions occurring on or before December 31, 2015, NJRES' foreign exchange contracts were designated as cash flow hedges, and the effective portion of the hedges were recorded in OCI. As a result of NJRES entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets, with changes in value recognized in current period earnings. Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. The Company applies NPNS accounting to SREC forward and futures contracts entered into on or before December 31, 2015. Effective for contracts executed on or after January 1, 2016, NJRES no longer elects NPNS accounting treatment on all SREC forward sales contracts and recognizes changes in the fair value of these derivatives as a component of operating revenues. Upon settlement of the contract, the related revenue is recognized when the SREC is transferred to the counterparty. NPNS is a contract-by-contract election and, where it makes sense to do so, we can and may elect normal accounting for certain contracts. NJNG Changes in fair value of NJNG's financial commodity derivatives are recorded as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. Effective for contracts executed on or after January 1, 2016, NJNG no longer elects NPNS accounting treatment on all physical forward commodity contracts. However, since NPNS is a contract-by-contract election, where it makes sense to do so, we can and may elect certain contracts to be normal. Because NJNG recovers these amounts through future BGSS rates as increases or decreases to the cost of natural gas in NJNG’s tariff for gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. In 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 treasury rate of 3.26 percent associated with a 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 NJNG believes that the market value upon settlement will be recovered in future rates. Upon settlement, any gain or loss will be amortized into earnings over the life of the future underlying 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 March 31, 2017 September 30, 2016 (Thousands) Balance Sheet Location Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: NJNG: Physical commodity contracts Derivatives - current $ 64 $ 17 $ 235 $ 1,154 Financial commodity contracts Derivatives - current 2,240 928 805 2,979 Derivatives - noncurrent — — 75 386 Interest rate contracts Derivatives - noncurrent — 4,392 — 23,073 NJRES: Physical commodity contracts Derivatives - current 4,080 2,460 5,994 11,660 Derivatives - noncurrent 6,084 588 3,987 1,212 Financial commodity contracts Derivatives - current 25,717 29,127 22,929 45,255 Derivatives - noncurrent 263 1,125 1,165 581 Foreign currency contracts Derivatives - current 2 27 1 32 Fair value of derivatives not designated as hedging instruments $ 38,450 $ 38,664 $ 35,191 $ 86,332 Total fair value of derivatives $ 38,450 $ 38,664 $ 35,191 $ 86,332 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 at the contract level unit of account on the Unaudited Condensed Consolidated Balance Sheets. The following table summarizes the reported gross amounts, the amounts that NJR has the right to offset but elects not to, financial collateral, as well as the net amounts NJR could present on 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 March 31, 2017: Derivative assets: NJRES Physical commodity contracts $ 10,164 $ (540 ) $ (200 ) $ 9,424 Financial commodity contracts 25,980 (25,068 ) — 912 Foreign currency contracts 2 (2 ) — — Total NJRES $ 36,146 $ (25,610 ) $ (200 ) $ 10,336 NJNG Physical commodity contracts $ 64 $ (2 ) $ — $ 62 Financial commodity contracts 2,240 (928 ) (1,312 ) — Total NJNG $ 2,304 $ (930 ) $ (1,312 ) $ 62 Derivative liabilities: NJRES Physical commodity contracts $ 3,048 $ (540 ) $ — $ 2,508 Financial commodity contracts 30,252 (25,068 ) (5,184 ) — Foreign currency contracts 27 (2 ) — 25 Total NJRES $ 33,327 $ (25,610 ) $ (5,184 ) $ 2,533 NJNG Physical commodity contracts $ 17 $ (2 ) $ — $ 15 Financial commodity contracts 928 (928 ) — — Interest rate contracts 4,392 — — 4,392 Total NJNG $ 5,337 $ (930 ) $ — $ 4,407 As of September 30, 2016: Derivative assets: NJRES Physical commodity contracts $ 9,981 $ (2,837 ) $ (755 ) $ 6,389 Financial commodity contracts 24,094 (17,945 ) (6,149 ) — Foreign currency contracts 1 (1 ) — — Total NJRES $ 34,076 $ (20,783 ) $ (6,904 ) $ 6,389 NJNG Physical commodity contracts $ 235 $ (31 ) $ — $ 204 Financial commodity contracts 880 (880 ) — — Total NJNG $ 1,115 $ (911 ) $ — $ 204 Derivative liabilities: NJRES Physical commodity contracts $ 12,872 $ (2,837 ) $ 1,200 $ 11,235 Financial commodity contracts 45,836 (17,945 ) (27,891 ) — Foreign currency contracts 32 (1 ) — 31 Total NJRES $ 58,740 $ (20,783 ) $ (26,691 ) $ 11,266 NJNG Physical commodity contracts $ 1,154 $ (31 ) $ — $ 1,123 Financial commodity contracts 3,365 (880 ) (2,485 ) — Interest rate contracts 23,073 — — 23,073 Total NJNG $ 27,592 $ (911 ) $ (2,485 ) $ 24,196 (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) Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3) Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties. (4) Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20. NJRES utilizes financial derivatives to economically hedge the gross margin associated with the purchase of physical gas to be used for storage injection and its subsequent sale at a later date. The gains or (losses) on the financial transactions that are economic hedges of the cost of the purchased gas are recognized prior to the gains or (losses) on the physical transaction, which are recognized in earnings when the natural gas is delivered. Therefore, mismatches between the timing of the recognition of realized gains or (losses) on the financial derivative instruments and gains or (losses) associated with the actual sale of the natural gas that is being economically hedged along with fair value changes in derivative instruments creates volatility in the results of 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 Six Months Ended March 31, March 31, Derivatives not designated as hedging instruments: 2017 2016 2017 2016 NJRES: Physical commodity contracts Operating revenues $ 4,982 $ 9,128 $ 6,725 $ 21,002 Physical commodity contracts Gas purchases (3,982 ) (5,583 ) (12,781 ) (26,820 ) Financial commodity contracts Gas purchases 38,121 21,820 7,510 63,096 Foreign currency contracts Gas purchases 53 — (33 ) — Total unrealized and realized gains (losses) $ 39,174 $ 25,365 $ 1,421 $ 57,278 NJRES designated its foreign exchange contracts entered into prior to January 1, 2016, as cash flow hedges and, as a result, changes in fair value of the effective portion of the hedges were recorded in OCI and, upon settlement of the contracts, realized gains and (losses) were reclassified from AOCI to gas purchases on the Unaudited Condensed Consolidated Statements of Operations. The following table reflects the effect of derivative instruments that were designated as cash flow hedges on OCI during the three and six months ended March 31, 2016 : (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) March 31, 2016 Three Months Ended Six Months Ended Three Months Ended Six Months Ended Foreign currency contracts $ 29 $ (35 ) $ 30 $ 42 NJNG’s derivative contracts are part of the Company's risk management activities that relate to its natural gas purchases, BGSS incentive programs and debt financing. These transactions are entered into pursuant to regulatory approval. At settlement, the resulting gains and/or losses are payable to or recoverable from utility customers and are deferred in regulatory assets or liabilities resulting in no impact to earnings. The following table reflects the gains (losses) associated with NJNG's derivative instruments as of: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2017 2016 2017 2016 NJNG: Physical commodity contracts $ (3,780 ) $ (14,528 ) $ (2,730 ) $ (14,528 ) Financial commodity contracts (418 ) (5,151 ) 10,760 (10,786 ) Interest rate contracts (1,690 ) (11,071 ) 18,681 (8,705 ) Total unrealized and realized (losses) gains $ (5,888 ) $ (30,750 ) $ 26,711 $ (34,019 ) NJNG and NJRES had the following outstanding long (short) derivatives as of: Volume (Bcf) March 31, September 30, NJNG Futures 24.6 23.6 Physical 5.7 9.2 NJRES Futures (64.2 ) (79.1 ) Options — 1.2 Physical 64.0 94.6 Not included in the previous table are NJRES' gross notional amount of foreign currency transactions of approximately $2.2 million , NJNG’s treasury lock agreement as previously discussed and 314,500 SRECs at NJRES that are open as of March 31, 2017 . Broker Margin Futures exchanges have contract specific performance bond requirements, also known as margin requirements that require the posting of cash or cash equivalents relating to traded contracts. Margin requirements consist of initial margin that is posted upon the initiation of a position, maintenance margin that is usually expressed as a percent of initial margin, and variation margin that fluctuates based on the daily marked-to-market relative to maintenance margin requirements. The Company maintains separate broker margin accounts for NJNG and NJRES. The balances by company are as follows: (Thousands) Balance Sheet Location March 31, September 30, NJNG Broker margin - Current assets $ 3,354 $ 4,822 NJRES Broker margin - Current assets $ 20,250 $ 42,822 Due to CME rulebook changes that took effect in January 2017, variation margin is being treated as a settlement payment, rather than collateral. As a result, the Company is now required to present variation margin net with the related derivative assets and/or liabilities on the Unaudited Condensed Consolidated Balance Sheets for any derivatives the Company clears through the CME. This change is being applied on a prospective basis. In September 30, 2016, prior to the rule change, the Company reported the variation margin as a separate unit of account within restricted broker margin on the Unaudited Condensed Consolidated Balance Sheets. There was no impact to the Company’s derivative gains or losses in the Unaudited Condensed Consolidated Statements of Operations as a result of the CME rule amendment. Wholesale Credit Risk NJNG, NJRES and NJRCEV are exposed to credit risk as a result of their sales/wholesale marketing activities. As a result of the inherent volatility in the prices of natural gas commodities, derivatives, SRECs, electricity and RECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty fails to perform the obligations under its contract (e.g., failed to deliver or pay for natural gas, SRECs, electricity or RECs), then the Company could sustain a loss. NJR monitors and manages the credit risk of its wholesale operations through credit policies and procedures that management believes reduce overall credit risk. These policies include a review and evaluation of current and prospective counterparties' financial statements and/or credit ratings, daily monitoring of counterparties' credit limits and exposure, daily communication with traders regarding credit status and the use of credit mitigation measures, such as collateral requirements and netting agreements. Examples of collateral include letters of credit and cash received for either prepayment or margin deposit. Collateral may be requested due to NJR's election not to extend credit or because exposure exceeds defined thresholds. Most of NJR's wholesale marketing contracts contain standard netting provisions. These contracts include those governed by ISDA and the NAESB. The netting provisions refer to payment netting, whereby receivables and payables with the same counterparty are offset and the resulting net amount is paid to the party to which it is due. Internally-rated exposure applies to counterparties that are not rated by S&P or Moody's. In these cases, the counterparty's or guarantor's financial statements are reviewed, and similar methodologies and ratios used by S&P and/or Moody's are applied to arrive at a substitute rating. Gross credit exposure is defined as the unrealized fair value of physical and financial derivative commodity contracts, plus any outstanding wholesale receivable for the value of natural gas delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received. The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of March 31, 2017 . The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and NJRCEV residential solar installations. (Thousands) Gross Credit Exposure Investment grade $ 155,318 Noninvestment grade 35,381 Internally rated investment grade 8,974 Internally rated noninvestment grade 27,114 Total $ 226,787 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 March 31, 2017 and September 30, 2016 , was $4.5 million and $23.1 million , respectively, for which the Company had not posted collateral. If all thresholds related to the credit-risk-related contingent features underlying these agreements had been invoked on March 31, 2017 and September 30, 2016 , the Company would have been required to post an additional $4.5 million and $23.1 million , 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	6 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE Fair Value of Assets and Liabilities The fair value of cash and cash equivalents, accounts receivable, current loan receivables, accounts payable, commercial paper and borrowings under revolving credit facilities are estimated to equal their carrying amounts due to the short maturity of those instruments. Non-current loan receivables are recorded based on what the Company expects to receive, which approximates fair value. The Company regularly evaluates the credit quality and collection profile of its customers to approximate fair value. The estimated fair value of long-term debt at NJNG and NJR, including current maturities, excluding capital leases and debt issuance costs, is as follows: (Thousands) March 31, September 30, Carrying value (1) $ 1,047,045 $ 1,082,845 Fair market value $ 1,041,750 $ 1,131,077 (1) Excludes capital leases of $45.9 million and $42.2 million as of March 31, 2017 and September 30, 2016 , 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 March 31, 2017 , 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 natural gas futures and options contracts, listed equities and money market funds. Exchange traded futures and options contracts include all energy contracts traded on the NYMEX, CME and ICE that NJR refers internally to as basis swaps, fixed swaps, futures and financial options that are cleared through a FCM. Level 2 Other significant observable inputs such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services. NJR's Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC forward sales or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). NJNG's treasury lock is also considered Level 2 as valuation is based on quoted market interest and swap rates as inputs to the valuation model. Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as the data is: • widely accepted and public; • non-proprietary and sourced from an independent third party; and • observable and published. These additional adjustments are generally not considered to be significant to the ultimate recognized values. Level 3 Inputs derived from a significant amount of unobservable market data. These include NJR's best estimate of fair value and are derived primarily through the use of internal valuation methodologies. Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Thousands) (Level 1) (Level 2) (Level 3) Total As of March 31, 2017: Assets: Physical commodity contracts $ — $ 10,228 $ — $ 10,228 Financial commodity contracts 28,220 — — 28,220 Financial commodity contracts - foreign exchange — 2 — 2 Available for sale equity securities - energy industry 65,884 — — 65,884 Money market funds 65,115 — — 65,115 Other 1,249 — — 1,249 Total assets at fair value $ 160,468 $ 10,230 $ — $ 170,698 Liabilities: Physical commodity contracts $ — $ 3,065 $ — $ 3,065 Financial commodity contracts 31,180 — — 31,180 Financial commodity contracts - foreign exchange — 27 — 27 Interest rate contracts — 4,392 — 4,392 Total liabilities at fair value $ 31,180 $ 7,484 $ — $ 38,664 As of September 30, 2016: Assets: Physical commodity contracts $ — $ 10,216 $ — $ 10,216 Financial commodity contracts 24,974 — — 24,974 Financial commodity contracts - foreign exchange — 1 — 1 Available for sale equity securities - energy industry 55,789 — — 55,789 Money market funds 34,072 — — 34,072 Other 1,444 — — 1,444 Total assets at fair value $ 116,279 $ 10,217 $ — $ 126,496 Liabilities: Physical commodity contracts $ — $ 14,026 $ — $ 14,026 Financial commodity contracts 49,201 — — 49,201 Financial commodity contracts - foreign exchange — 32 — 32 Interest rate contracts — 23,073 — 23,073 Total liabilities at fair value $ 49,201 $ 37,131 $ — $ 86,332

INVESTMENTS IN EQUITY METHOD IN

INVESTMENTS IN EQUITY METHOD INVESTEES	6 Months Ended
	Mar. 31, 2017
Investments, All Other Investments [Abstract]
INVESTMENTS IN EQUITY METHOD INVESTEES	INVESTMENTS IN EQUITY METHOD INVESTEES NJR's investments in equity method investees include the following as of: (Thousands) March 31, September 30, Steckman Ridge (1) $ 121,809 $ 123,155 PennEast 31,082 17,993 Total $ 152,891 $ 141,148 (1) Includes loans with a total outstanding principal balance of $70.4 million for both March 31, 2017 and September 30, 2016 . 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 120 -mile pipeline that will extend from northeast Pennsylvania to western New Jersey, which is estimated to be in service by the first quarter of fiscal 2019 . NJRES and NJNG have entered into storage and park and loan agreements with Steckman Ridge. In addition, NJNG has entered into a precedent capacity agreement with PennEast. See Note 14. Related Party Transactions for more information on these intercompany transactions.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Mar. 31, 2017
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 Six Months Ended March 31, March 31, (Thousands, except per share amounts) 2017 2016 2017 2016 Net income, as reported $ 114,702 $ 73,353 $ 149,631 $ 123,635 Basic earnings per share Weighted average shares of common stock outstanding-basic 86,275 85,834 86,182 85,754 Basic earnings per common share $1.33 $0.85 $1.74 $1.44 Diluted earnings per share Weighted average shares of common stock outstanding-basic 86,275 85,834 86,182 85,754 Incremental shares (1) 826 1,024 811 1,024 Weighted average shares of common stock outstanding-diluted 87,101 86,858 86,993 86,778 Diluted earnings per common share (2) $1.32 $0.84 $1.72 $1.42 (1) Incremental shares consist primarily of unvested stock awards and performance shares. (2) There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for the three and six months ended March 31, 2017 and 2016 .

COMMON STOCK EQUITY

COMMON STOCK EQUITY	6 Months Ended
	Mar. 31, 2017
Equity [Abstract]
COMMON STOCK EQUITY	COMMON STOCK EQUITY Changes in common stock equity during the six months ended March 31, 2017 , were 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 at September 30, 2016 86,086 $ 221,654 $ 215,580 $ (15,155 ) $ (81,044 ) $ 825,556 $ 1,166,591 Net income 149,631 149,631 Other comprehensive income 7,558 7,558 Common stock issued: Incentive plan 232 581 4,788 5,369 Dividend reinvestment plan (1) 279 (1,266 ) 10,994 9,728 Cash dividend declared ($.51 per share) (44,003 ) (44,003 ) Treasury stock and other (233 ) (28 ) (8,566 ) (8,594 ) Balance at March 31, 2017 86,364 $ 222,235 $ 219,074 $ (7,597 ) $ (78,616 ) $ 931,184 $ 1,286,280 (1) Shares sold through the DRP are issued from treasury stock at average cost, which may differ from the actual market price paid. 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. In December 2015, NJR registered 5 million shares of NJR common stock for issuance under the DRP. NJR raised $9.7 million and $8.2 million of equity through the DRP, by issuing approximately 279,000 and 260,000 shares of treasury stock, during the six months ended March 31, 2017 and 2016 , respectively. Accumulated Other Comprehensive Income (Loss) The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the three months ended March 31, 2017 and 2016 : (Thousands) Available for Sale Securities Cash Flow Hedges Postemployment Benefit Obligation Total Balance at December 31, 2016 $ 9,713 $ — $ (19,036 ) $ (9,323 ) Other comprehensive income (loss), net of tax Other comprehensive income, before reclassifications, net of tax of $(1,808), $0, $0, $(1,808) 3,054 — — 3,054 Amounts reclassified from accumulated other comprehensive income, net of tax of $1,138, $0, $(217), $921 (1,646 ) — 318 (2) (1,328 ) Net current-period other comprehensive income, net of tax of $(670), $0, $(217), $(887) 1,408 — 318 1,726 Balance at March 31, 2017 $ 11,121 $ — $ (18,718 ) $ (7,597 ) Balance as of December 31, 2015 $ 10,086 $ (33 ) $ (15,523 ) $ (5,470 ) Other comprehensive income, net of tax Other comprehensive income (loss), before reclassifications, net of tax of $(3,154), $(10), $0, $(3,164) 4,500 19 — 4,519 Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(11), $(175), $(186) — 19 257 276 Net current-period other comprehensive income, net of tax of ($3,154), $(21), $(175), $(3,350) 4,500 38 257 4,795 Balance as of March 31, 2016 $ 14,586 $ 5 $ (15,266 ) $ (675 ) The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the six months ended March 31, 2017 and 2016 : (Thousands) Available for Sale Securities Cash Flow Hedges Postemployment Benefit Obligation Total Balance at September 30, 2016 $ 4,198 $ — $ (19,353 ) $ (15,155 ) Other comprehensive income (loss), net of tax Other comprehensive income, before reclassifications, net of tax of $(6,648), $0, $0, $(6,648) 10,096 — — 10,096 Amounts reclassified from accumulated other comprehensive income, net of tax of $2,192, $0, $(434), $1,758 (3,173 ) — 635 (2) (2,538 ) Net current-period other comprehensive income, net of tax of $(4,456), $0, $(434), $(4,890) 6,923 — 635 7,558 Balance at March 31, 2017 $ 11,121 $ — $ (18,718 ) $ (7,597 ) Balance as of September 30, 2015 $ 6,385 $ — $ (15,779 ) $ (9,394 ) Other comprehensive income (loss), net of tax Other comprehensive income (loss), before reclassifications, net of tax of $(5,768), $13, $0, $(5,755) 8,201 (22 ) — 8,179 Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(15), $(349), $(364) — 27 (1) 513 (2) 540 Net current-period other comprehensive income, net of tax of ($5,768), $(2), $(349), $(6,119) 8,201 5 513 8,719 Balance as of March 31, 2016 $ 14,586 $ 5 $ (15,266 ) $ (675 ) (1) Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases on the Unaudited Condensed Consolidated Statements of Operations. Effective January 1, 2016, the Company elected not to designate its foreign currency derivatives as accounting hedges and, as a result, changes in fair value of the effective portion of the hedges are no longer recorded in OCI. (2) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations.

DEBT

DEBT	6 Months Ended
	Mar. 31, 2017
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) March 31, September 30, Expiration Dates NJR Bank revolving credit facilities (1) $ 425,000 $ 425,000 September 2020 Notes outstanding at end of period $ 237,900 $ 121,700 Weighted average interest rate at end of period 1.75 % 1.43 % Amount available at end of period (2) $ 173,686 $ 288,910 NJNG Bank revolving credit facilities (3) $ 250,000 $ 250,000 May 2019 Commercial paper outstanding at end of period $ — $ — Weighted average interest rate at end of period — % — % Amount available at end of period (4) $ 249,269 $ 249,269 (1) Committed credit facilities, which require commitment fees on the unused amounts. (2) Letters of credit outstanding total $13.4 million and $14.4 million for March 31, 2017 and September 30, 2016 , 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 for both March 31, 2017 and September 30, 2016 , which reduces the amount available by the same amount. Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities. Long-term Debt NJNG On January 17, 2017, the Company completed the purchase of three FMBs in lieu of redemption with an aggregate principal amount totaling $35.8 million . The FMBs bore interest at rates ranging from 4.5 percent to 4.9 percent . The bonds purchased in lieu of redemption are being held by the Company to provide an opportunity to evaluate remarketing alternatives. NJNG received $9.6 million and $7.1 million in December 2016 and 2015 , respectively, in connection with the sale-leaseback of its natural gas meters. NJNG records a capital lease obligation that is paid over the term of the lease and has the option to purchase the meters back at fair value upon expiration of the lease. NJNG exercised early purchase options with respect to meter leases by making final principal payments of $1 million during the six months ended March 31, 2017 . NJNG did not exercise early purchase options during the six months ended March 31, 2016 .

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	6 Months Ended
	Mar. 31, 2017
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 Six Months Ended Three Months Ended Six Months Ended March 31, March 31, March 31, March 31, (Thousands) 2017 2016 2017 2016 2017 2016 2017 2016 Service cost $ 2,087 $ 1,898 $ 4,174 $ 3,796 $ 1,095 $ 1,131 $ 2,190 $ 2,261 Interest cost 2,442 2,835 4,885 5,671 1,387 1,564 2,773 3,128 Expected return on plan assets (4,828 ) (5,030 ) (9,656 ) (10,059 ) (1,191 ) (1,211 ) (2,383 ) (2,422 ) Recognized actuarial loss 2,206 1,821 4,413 3,641 1,092 818 2,185 1,637 Prior service cost amortization 28 27 55 55 (91 ) (91 ) (182 ) (182 ) Net periodic benefit cost $ 1,935 $ 1,551 $ 3,871 $ 3,104 $ 2,292 $ 2,211 $ 4,583 $ 4,422 The Company made a discretionary contribution of $30 million during the first quarter of fiscal 2016, to improve the funded status of the pension plans based on then current actuarial assumptions, which included the adoption of the most recent mortality table. The Company does not expect to be required to make additional contributions to fund the pension plans during fiscal 2017 or 2018 based on current actuarial assumptions; however, funding requirements are uncertain and can depend significantly on changes in actuarial assumptions, returns on plan assets and changes in the demographics of eligible employees and covered dependents. In addition, as in the past, the Company may elect to make contributions in excess of the minimum required amount to the plans. There were no discretionary contributions made during the six months ended March 31, 2017 .

INCOME TAXES

INCOME TAXES	6 Months Ended
	Mar. 31, 2017
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 six months ended March 31, 2017 and 2016 , based on its analysis, the Company determined there was no need to recognize any liabilities associated with uncertain tax positions. To calculate the estimated annual effective tax rate, NJR considers forecasted pre-tax book income and estimated permanent book versus tax differences, as well as tax credits associated with solar and wind projects. For investment tax credits the estimate is based on solar projects that are probable of being completed and placed in service during the current fiscal year based on the best information available at each reporting period. For production tax credits, the estimate is based on the forecast of electricity produced during the current fiscal year based on the best information available at each reporting period. Adjustments to the effective tax rate and management's estimates will occur as information and assumptions change. The forecasted effective tax rates for the six months ended March 31, 2017 and 2016 , were 15.6 percent and 17.7 percent , respectively. The decreased effective tax rate is due primarily to an increase in forecasted tax credits for the fiscal year ending September 30, 2017 , compared with the prior fiscal year. Forecasted tax credits, net of deferred taxes, were $34.6 million and $27.1 million for fiscal 2017 and 2016, respectively. To the extent there are discrete tax items that are not included in the forecasted effective tax rate, the actual effective tax rate will differ from the estimated annual effective tax rate. The Company recognized $1.5 million and $1.7 million during the six months ended March 31, 2017 and 2016 , respectively, in additional tax benefits associated with the vesting of share-based awards and the release of a valuation allowance associated with state tax net operating losses, as a component of income tax provision in its Unaudited Condensed Consolidated Statements of Operations. Since the tax effects of the awards and the valuation allowance are treated as discrete items, NJR’s actual effective tax rate was 14.8 percent and 16.6 percent as of March 31, 2017 and 2016 , respectively. As of March 31, 2017 , the Company has federal and state income tax net operating losses of approximately $78.7 million and $344.7 million , respectively, which generally have a life of 20 years. The Company has recorded federal and state income tax receivables and deferred tax assets of approximately $27.5 million and $20.2 million , respectively, on the Unaudited Condensed Consolidated Balance Sheets, reflecting the tax benefits associated with these net operating losses. As of September 30, 2016 , the Company had federal and state income tax net operating losses of approximately $78.7 million and $310.6 million , respectively, deferred federal and state tax assets of approximately $27.5 million and $18.2 million , respectively. As of September 30, 2016 , the Company recorded a valuation allowance in the amount of $262,000 associated with state net operating loss carryforwards at CR&R. As a result of taxable income generated from the sale of property and available for sale securities during the six months ended March 31, 2017 , the Company determined the benefits resulting from the state net operating loss carryforwards at CR&R are more likely than not to be realized prior to their expiration. Accordingly, the Company released the related valuation allowance against these state net operating loss carryforwards. There were no other valuation allowances needed for the Company as of March 31, 2017 . In addition, as of March 31, 2017 and September 30, 2016 , the Company had an ITC/PTC carryforward of approximately $111 million and $74 million , respectively, which has a life of 20 years. The Company expects to utilize this entire carryforward, which would begin to expire in fiscal 2034. In December 2015, the Consolidated Appropriations Act extended the 30 percent ITC for solar property that is under construction on or before December 31, 2019. The credit will decline to 26 percent for property under construction during 2020 and to 22 percent for property under construction during 2021. For any property that is under construction before 2022, but not placed in service before 2024, the ITC will be reduced to 10 percent. In addition, the PTC was extended for five years through December 31, 2019, with a gradual three year phase out for any project for which construction of the facility begins after December 31, 2016.

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	6 Months Ended
	Mar. 31, 2017
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 2033 , for the supply, storage and transportation of natural gas. These contracts include fixed charges of approximately $40 million at current contract rates and volumes for the remainder of the fiscal year, which are recoverable through BGSS. For the purpose of securing storage and pipeline capacity, 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 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 March 31, 2017 , for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2017 2018 2019 2020 2021 Thereafter NJRES: Natural gas purchases $ 179,517 $ 121,391 $ 55,395 $ — $ — $ — Storage demand fees 19,525 28,869 16,195 12,913 8,822 8,580 Pipeline demand fees 38,347 48,509 19,057 8,137 7,605 10,403 Sub-total NJRES $ 237,389 $ 198,769 $ 90,647 $ 21,050 $ 16,427 $ 18,983 NJNG: Natural gas purchases $ 45,266 $ 11,250 $ — $ — $ — $ — Storage demand fees 14,568 29,187 25,772 14,476 7,802 11,705 Pipeline demand fees 25,400 81,229 116,976 112,555 90,106 732,538 Sub-total NJNG (1) $ 85,234 $ 121,666 $ 142,748 $ 127,031 $ 97,908 $ 744,243 Total $ 322,623 $ 320,435 $ 233,395 $ 148,081 $ 114,335 $ 763,226 (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, which contain contaminated residues from former gas manufacturing operations. NJNG is currently involved in administrative proceedings with the NJDEP, and participating in various studies and investigations by outside consultants, to determine the nature and extent of any such contaminated residues and to develop appropriate programs of remedial action, where warranted, under 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 June 2016 , the BPU approved NJNG’s December 2015 filing, which requested approval of its MGP expenditures incurred through June 30, 2015 , with recovery of $9.4 million annually related to the SBC RA factor with rates effective July 9, 2016 . As of March 31, 2017 , $19.1 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 $143.9 million to $231.6 million . NJNG's estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG's policy to accrue the lower end of the range. Accordingly, NJNG recorded an MGP remediation liability and a corresponding regulatory asset on the Unaudited Condensed Consolidated Balance Sheets of $172 million as of September 30, 2016 , based on the most likely amount at year end and $165.8 million as of March 31, 2017 , which includes adjustments for actual expenditures during fiscal 2017 . 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 In February 2015, a natural gas fire and explosion occurred in Stafford Township, New Jersey as a result of a natural gas leak emanating from an underground pipe. There were no fatalities, although several employees of NJNG were injured and several homes were damaged. NJNG notified its insurance carrier and believes that any costs associated with the incident, including attorneys’ fees, property damage and other losses, will be substantially covered by insurance. The Company believes the resolution of any potential claims associated with the incident will not have a material effect on its financial condition, results of operations or cash flows. As of March 31, 2017 , NJNG estimates that liabilities associated with claims will range between $600,000 and $3.2 million and has accrued the lower end of the range, as we do not believe there is an amount within the range that is more probable than any other. 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	6 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
BUSINESS SEGMENT AND OTHER OPERATIONS DATA	BUSINESS SEGMENT AND OTHER OPERATIONS DATA NJR organizes its businesses based on a combination of factors, including its products and its regulatory environment. As a result, the Company manages its businesses through the following reportable segments and other operations: the Natural Gas Distribution segment consists of regulated energy and off-system, capacity and storage management operations; the Clean Energy Ventures segment consists of capital investments in clean energy projects; the Energy Services segment consists of unregulated wholesale energy operations; 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 Six Months Ended March 31, March 31, (Thousands) 2017 2016 2017 2016 Operating revenues Natural Gas Distribution External customers $ 295,546 $ 242,536 $ 481,102 $ 394,142 Clean Energy Ventures External customers 12,943 7,662 20,510 15,456 Energy Services External customers (1) 417,608 316,703 756,538 592,885 Intercompany 2,679 3,255 930 5,766 Subtotal 728,776 570,156 1,259,080 1,008,249 Home Services and Other External customers 7,449 7,292 16,424 15,968 Intercompany 1,055 639 2,086 1,536 Eliminations (3,734 ) (3,894 ) (3,016 ) (7,302 ) Total $ 733,546 $ 574,193 $ 1,274,574 $ 1,018,451 Depreciation and amortization Natural Gas Distribution $ 12,263 $ 11,598 $ 24,293 $ 22,836 Clean Energy Ventures 7,923 5,876 14,964 10,986 Energy Services 17 23 33 46 Midstream 2 2 3 3 Subtotal 20,205 17,499 39,293 33,871 Home Services and Other 199 237 420 464 Eliminations (76 ) 8 (125 ) (109 ) Total $ 20,328 $ 17,744 $ 39,588 $ 34,226 Interest income (2) Natural Gas Distribution $ 97 $ 60 $ 172 $ 128 Energy Services — — — 72 Midstream 512 450 974 714 Subtotal 609 510 1,146 914 Home Services and Other 132 123 253 160 Eliminations (633 ) (580 ) (1,216 ) (951 ) Total $ 108 $ 53 $ 183 $ 123 (1) Includes sales to Canada, which accounted for 1.5 and 2.9 percent of total operating revenues during the six months ended March 31, 2017 and 2016 . (2) Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2017 2016 2017 2016 Interest expense, net of capitalized interest Natural Gas Distribution $ 6,392 $ 4,690 $ 13,216 $ 9,278 Clean Energy Ventures 4,055 2,552 7,379 4,605 Energy Services 716 168 1,287 376 Midstream 414 130 470 172 Subtotal 11,577 7,540 22,352 14,431 Home Services and Other 123 105 197 105 Eliminations (264 ) (276 ) (498 ) (390 ) Total $ 11,436 $ 7,369 $ 22,051 $ 14,146 Income tax provision (benefit) Natural Gas Distribution $ 30,499 $ 22,704 $ 45,386 $ 36,211 Clean Energy Ventures (24,756 ) (13,916 ) (36,643 ) (25,650 ) Energy Services 16,277 7,805 13,101 12,710 Midstream 1,502 1,530 3,151 3,170 Subtotal 23,522 18,123 24,995 26,441 Home Services and Other 1,066 (1,474 ) 821 (2,604 ) Eliminations (656 ) 1,166 134 700 Total $ 23,932 $ 17,815 $ 25,950 $ 24,537 Equity in earnings of affiliates Midstream $ 6,119 $ 3,508 $ 9,450 $ 7,053 Eliminations (1,040 ) (1,106 ) (2,060 ) (2,245 ) Total $ 5,079 $ 2,402 $ 7,390 $ 4,808 Net financial earnings Natural Gas Distribution $ 60,233 $ 48,967 $ 90,581 $ 79,893 Clean Energy Ventures 22,743 11,807 25,585 19,459 Energy Services 15,746 17,005 19,233 27,309 Midstream 4,948 2,228 7,335 4,572 Subtotal 103,670 80,007 142,734 131,233 Home Services and Other 708 (2,022 ) 2,250 (1,763 ) Eliminations (272 ) (80 ) (495 ) (298 ) Total $ 104,106 $ 77,905 $ 144,489 $ 129,172 Capital expenditures Natural Gas Distribution $ 34,744 $ 47,366 $ 73,599 $ 96,406 Clean Energy Ventures 43,120 25,876 89,905 70,882 Subtotal 77,864 73,242 163,504 167,288 Home Services and Other 345 272 516 1,069 Total $ 78,209 $ 73,514 $ 164,020 $ 168,357 Investments in equity investees Midstream $ 5,902 $ 3,102 $ 10,538 $ 5,948 Total $ 5,902 $ 3,102 $ 10,538 $ 5,948 The Chief Executive Officer, who uses NFE as a measure of profit or loss in measuring the results of the Company's segments and operations, is the chief operating decision maker of the Company. A reconciliation of consolidated NFE to consolidated net income is as follows: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2017 2016 2017 2016 Net financial earnings $ 104,106 $ 77,905 $ 144,489 $ 129,172 Less: Unrealized (gain) loss on derivative instruments and related transactions (54,855 ) 3,170 (26,553 ) 2,035 Tax effect 19,679 (1,152 ) 9,922 (739 ) Effects of economic hedging related to natural gas inventory 34,328 (1,054 ) 16,389 2,759 Tax effect (12,334 ) 384 (6,130 ) (1,001 ) Net income to NFE tax adjustment 2,586 3,204 1,230 2,483 Net income $ 114,702 $ 73,353 $ 149,631 $ 123,635 The Company uses derivative instruments as economic hedges of purchases and sales of physical gas inventory. For GAAP purposes, these derivatives are recorded at fair value and related changes in fair value are included in reported earnings. Revenues and cost of gas related to physical gas flow is recognized when the gas is delivered to customers. Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical gas flows. Timing differences occur in two ways: • Unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical gas inventory flows; and • Unrealized gains and losses of prior periods are reclassified as realized gains and losses when derivatives are settled in the same period as physical gas inventory movements occur. NFE is a measure of the earnings based on eliminating these timing differences, to effectively match the earnings effects of the economic hedges with the physical sale of gas, SRECs and foreign currency contracts. Consequently, to reconcile between net income and NFE, current period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Additionally, realized derivative gains and losses are also included in current period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical gas flows. 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) March 31, September 30, Assets at end of period: Natural Gas Distribution $ 2,572,576 $ 2,517,401 Clean Energy Ventures 709,289 665,696 Energy Services 328,372 327,626 Midstream 212,439 186,259 Subtotal 3,822,676 3,696,982 Home Services and Other 126,255 109,487 Intercompany assets (1) (91,572 ) (87,899 ) Total $ 3,857,359 $ 3,718,570 (1) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS 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 as a component of regulatory assets. NJRES may periodically enter into storage or park and loan agreements with its affiliated FERC-jurisdictional natural gas storage facility, Steckman Ridge. As of March 31, 2017 , NJRES has entered into transactions with Steckman Ridge for varying terms, all of which expire by October 2020 . Demand fees, net of eliminations, associated with Steckman Ridge were as follows: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2017 2016 2017 2016 NJNG $ 1,383 $ 1,385 $ 2,793 $ 2,774 NJRES 689 692 1,390 1,377 Total $ 2,072 $ 2,077 $ 4,183 $ 4,151 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) March 31, September 30, NJNG $ 780 $ 775 NJRES 376 375 Total $ 1,156 $ 1,150 NJNG and NJRES have entered into various asset management agreements, the effects of which are eliminated in consolidation. Under the terms of these agreements, NJNG releases certain transportation and storage contracts to NJRES. As of March 31, 2017 , NJNG and NJRES had three asset management agreements with expiration dates ranging from October 2017 through March 2018 . NJNG has entered into a 15 -year transportation precedent agreement for committed capacity of 180,000 Dths per day with PennEast, which is estimated to be in service by the first quarter of fiscal 2019 .

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Available for Sale Securities	Available for Sale Securities Included in available for sale securities on the Unaudited Condensed Consolidated Balance Sheets are investments in two publicly traded energy companies.
Loans Receivable	Loans Receivable NJNG provides loans, with terms ranging from two to 10 years, to customers that elect to purchase and install certain energy efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at net present value on the Unaudited Condensed Consolidated Balance Sheets. The Company recorded $8.2 million and $7.8 million in other current assets and $40.7 million and $39.5 million in other noncurrent assets as of March 31, 2017 and September 30, 2016 , respectively, on the Unaudited Condensed Consolidated Balance Sheets, related to the loans. NJNG's policy is to establish an allowance for doubtful accounts when loan balances are in arrears for more than 60 days . As of March 31, 2017 and September 30, 2016 , there was no allowance for doubtful accounts established for the SAVEGREEN loans.
Recently Adopted Updates to the Accounting Standards Codification	Recently Adopted Updates to the Accounting Standards Codification Stock Compensation In March 2016, the FASB issued ASU 2016-09, an amendment to ASC 718, Compensation - Stock Compensation , which simplifies several aspects of the accounting for employee share-based compensation, including the accounting for income taxes and forfeitures. The new guidance also increased the threshold for tax withholding to the maximum statutory rate, as applicable, to maintain equity classification and amended the classification of certain tax transactions within the statement of cash flows. The Company elected to early adopt the amended guidance during the third quarter of fiscal 2016 and applied the new provisions as of the beginning of the year of adoption on a retrospective or prospective basis depending on each amendment’s transition requirements. As such, effective October 1, 2015, NJR is recognizing forfeitures as they occur and is recognizing excess tax benefits (deficiencies) as a component of income tax (benefit) provision in its Unaudited Condensed Consolidated Statements of Operations on a prospective basis. All related information for prior periods has been adjusted throughout this report on a retrospective basis to reflect the effects of the adoption. See Note 11. Income Taxes for more information on these transactions. In addition, the following amounts on the Unaudited Condensed Consolidated Financial Statements have been adjusted retrospectively during the three and six months ended March 31, 2016 : (Thousands) As Previously Reported Effect of Change As Adjusted Three Months Ended Statements of Operations Income tax provision $ 17,840 $ (25 ) $ 17,815 Net income $ 73,328 $ 25 $ 73,353 Earnings per common share Basic $ 0.85 $ — $ 0.85 Diluted $ 0.84 $ — $ 0.84 Six Months Ended Statements of Operations Income tax provision $ 26,197 $ (1,660 ) $ 24,537 Net income $ 121,975 $ 1,660 $ 123,635 Earnings per common share Basic $ 1.42 $ 0.02 $ 1.44 Diluted $ 1.41 $ 0.01 $ 1.42 Cash flows from operating activities Net income $ 121,975 $ 1,660 $ 123,635 Tax benefit from stock based compensation $ — $ 1,660 $ 1,660 Other noncurrent liabilities $ 2,302 $ (139 ) $ 2,163 Net cash flows from operating activities $ 114,824 $ 3,181 $ 118,005 Cash flows from financing activities Tax withholding payments related to net settled stock compensation $ — $ (3,181 ) $ (3,181 ) Cash flows from financing activities $ 53,547 $ (3,181 ) $ 50,366 There was no impact to the Unaudited Condensed Consolidated Balance Sheets upon adoption of the new guidance. 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 Company adopted the new guidance in the first quarter of fiscal 2017 and applied the new provisions on a prospective basis, which did not impact its financial position, results of operations or 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 GAAP and reevaluates whether limited partnerships and similar entities must be consolidated. The Company adopted the new guidance in the first quarter of fiscal 2017 and applied the new provisions on a full retrospective basis, which did not impact its financial position, results of operations or 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 on the balance sheet as a deduction from the carrying amount of the liability. The amendment does not affect the recognition and measurement guidance for debt issuance costs. In August 2015, the FASB issued ASU No. 2015-15, which clarified that the amendment contained within ASU No. 2015-03 does not require companies to modify their accounting for costs incurred in obtaining revolving credit facilities. The Company adopted the new guidance in the first quarter of fiscal 2017 and applied the new provisions on a full retrospective basis. In addition, the following amounts on the Unaudited Condensed Consolidated Balance Sheets have been adjusted, retrospectively, as of September 30, 2016. (Thousands) As Previously Reported Effect of Change As Adjusted Assets Other noncurrent assets $ 68,708 $ (8,512 ) $ 60,196 Total noncurrent assets $ 712,166 $ (8,512 ) $ 703,654 Total assets $ 3,727,082 $ (8,512 ) $ 3,718,570 Capitalization and Liabilities Long-term debt $ 1,063,550 $ (8,512 ) $ 1,055,038 Total capitalization $ 2,230,141 $ (8,512 ) $ 2,221,629 Total capitalization and liabilities $ 3,727,082 $ (8,512 ) $ 3,718,570 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 amendment provides 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 Company adopted the new guidance in the first quarter of fiscal 2017 and applied the new provisions on a prospective basis, which did not impact its financial position, results of operations or cash flows upon adoption. Other Recent Updates to the Accounting Standards Codification 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. In August 2015, the FASB issued ASU No. 2015-14, which defers the implementation of the new guidance for one year. The new guidance will become effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year. The Company continues to evaluate the provisions of ASC 606, however, based on the review of customer contracts to date, it is not anticipating a material impact to its financial position, results of operations or cash flows upon adoption. The Company anticipates significant new disclosures as a result of the new standard and currently expects to transition to the new guidance using the modified retrospective approach. The Company is also monitoring industry specific developments that may have an impact, including our ability to recognize revenue for contracts where collectability is uncertain. Inventory In July 2015, the FASB issued ASU No. 2015-11, an amendment to ASC 330, Inventory , which requires entities to measure most inventory “at the lower of cost or net realizable value,” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The guidance is effective for the Company’s fiscal year ending September 30, 2018, and interim periods within that year. Upon adoption, the amendment will be applied on a prospective basis. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations and cash flows upon adoption. Financial Instruments In January 2016, the FASB issued ASU 2016-01, an amendment to ASC 825, Financial Instruments , to address certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The standard affects investments in equity securities that do not result in consolidation and are not accounted for under the equity method and the presentation of certain fair value changes for financial liabilities measured at fair value. It also simplifies the impairment assessment of equity investments without a readily determinable fair value by requiring a qualitative assessment. The guidance is effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year. Upon adoption, the amendment will be applied on a modified-retrospective basis. The Company evaluated the amendment and noted that, upon adoption, subsequent changes to the fair value of the Company’s available for sale securities will be recorded in the Consolidated Statement of Operations as opposed to other comprehensive income. The Company does not expect any other material impacts to its financial position, results of operations or cash flows upon adoption. In June 2016, the FASB issued ASU 2016-13, an amendment to ASC 326, Financial Instruments - Credit Losses, which changes the impairment model for certain financial assets that have a contractual right to receive cash, including trade and loan receivables. The new model requires recognition based upon an estimation of expected credit losses rather than recognition of losses when it is probable that they have been incurred. The guidance is effective for the Company’s fiscal year ending September 30, 2021, and interim periods within that year, with early adoption permitted. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations and cash flows upon adoption and will apply the new guidance to its trade and loan receivables on a modified retrospective basis. Leases In February 2016, the FASB issued ASU 2016-02, an amendment to ASC 842, Leases , which provides for a comprehensive overhaul of the lease accounting model and changes the definition of a lease within the accounting literature. Under the new standard, all leases with a term greater than one year will be recorded on the balance sheet. Amortization of the related asset will be accounted for using one of two approaches prescribed by the guidance. Additional disclosures will be required to allow the user to assess the amount, timing and uncertainty of cash flows arising from leasing activities. A modified retrospective transition approach is required for leases existing at the time of adoption. The guidance is effective for the Company’s fiscal year ending September 30, 2020, and interim periods within that year, with early adoption permitted. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations and cash flows upon adoption. Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15, an amendment to ASC 230, Statement of Cash Flows, which addresses eight specific cash flow issues for which there has been diversity in practice. The guidance is effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year with early adoption permitted. Upon adoption, the amendment will be applied on a retrospective basis. The Company is currently evaluating the amendment to understand the impact on its consolidated statements of cash flows upon adoption. In November 2016, the FASB issued ASU No. 2016-18, an amendment to ASC 230, Statement of Cash Flows, which requires that any amounts that are deemed to be restricted cash or restricted cash-equivalents be included in cash and cash-equivalent balances on the cash flow statement and, therefore, transfers between cash and restricted cash accounts will no longer be recognized within the statement of cash flows. The guidance is effective for the Company’s fiscal year ending September 30, 2019, with early adoption permitted. Upon adoption, the amendment will be applied on a retrospective basis. Based on the Company's historical restricted cash balances, it does not expect any material impacts to its financial position, results of operations or cash flows upon adoption. Business Combinations In January 2017, the FASB issued ASU No. 2017-01, an amendment to ASC 805, Business Combinations , clarifying the definition of a business in the ASC, which is intended to reduce the complexity surrounding the assessment of a transaction as an asset acquisition or business combination. The amendment provides an initial fair value screen to reduce the number of transactions that would fit the definition of a business, and when the screen threshold is not met, provides an updated model that further clarifies the characteristics of a business. The guidance is effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year with early adoption permitted. Upon adoption, the amendment will be applied on a prospective basis. The amendment could potentially have material impacts on future transactions that the Company may enter into by altering the Company’s conclusion on what accounting to apply to acquisitions. Gains and Losses from the Derecognition of Nonfinancial Assets In February 2017, the FASB issued ASU No. 2017-05, an amendment to ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets , which clarifies the scope and accounting related to the derecognition of nonfinancial assets, including partial sales and contributions of nonfinancial assets to a joint venture or other non-controlled investee. The guidance is effective concurrently with ASC 606, which is effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year with early adoption permitted. ASU No. 2017-05 may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The Company is currently evaluating the amendment to understand the impact on its financial position, results from operations, and cash flows upon adoption. Compensation - Retirement Benefits In March 2017, the FASB issued ASU No. 2017-07, an amendment to ASC 715, Compensation - Retirement Benefits , which changes the presentation of net periodic benefit cost on the income statement by requiring companies to present all components of net periodic benefit cost, other than service cost, outside a subtotal of income from operations. The amendment also states that only the service cost component of net periodic benefits costs is eligible for capitalization, when applicable. The guidance is effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year with early adoption permitted. Upon adoption, the amendment will be applied on a retrospective basis for presentation and changes to capitalization of costs will be applied on a prospective basis. The Company is continuing to evaluate the amendment to fully understand the impact on its financial position, results of operations and cash flows upon adoption. The Company is also monitoring industry specific developments on the new guidance to determine the appropriate treatment of these changes in a rate regulated environment.
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 to hedge Canadian dollar denominated gas purchases and/or sales. Therefore, the Company's primary underlying risks include commodity prices, interest rates and foreign currency. These contracts are accounted for as derivatives. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets. For a more detailed discussion of the Company's fair value measurement policies and level disclosures associated with NJR's derivative instruments, see Note 5. Fair Value . NJRES Since NJRES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS, the changes in the fair value of these derivatives are recorded as a component of gas purchases or operating revenues, as appropriate for 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 U.S. dollar. NJRES may utilize foreign currency derivatives to lock in the exchange rate associated with natural gas transactions denominated in Canadian currency. The derivatives may include currency forwards, futures, or swaps and are accounted for as derivatives. These derivatives are typically used to hedge demand fee payments on pipeline capacity, storage and gas purchase agreements. Accordingly, changes in the fair value of foreign exchange contracts are recognized in gas purchases on the Unaudited Condensed Consolidated Statements of Operations. For transactions occurring on or before December 31, 2015, NJRES' foreign exchange contracts were designated as cash flow hedges, and the effective portion of the hedges were recorded in OCI. As a result of NJRES entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets, with changes in value recognized in current period earnings. Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. The Company applies NPNS accounting to SREC forward and futures contracts entered into on or before December 31, 2015. Effective for contracts executed on or after January 1, 2016, NJRES no longer elects NPNS accounting treatment on all SREC forward sales contracts and recognizes changes in the fair value of these derivatives as a component of operating revenues. Upon settlement of the contract, the related revenue is recognized when the SREC is transferred to the counterparty. NPNS is a contract-by-contract election and, where it makes sense to do so, we can and may elect normal accounting for certain contracts. NJNG Changes in fair value of NJNG's financial commodity derivatives are recorded as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. Effective for contracts executed on or after January 1, 2016, NJNG no longer elects NPNS accounting treatment on all physical forward commodity contracts. However, since NPNS is a contract-by-contract election, where it makes sense to do so, we can and may elect certain contracts to be normal. Because NJNG recovers these amounts through future BGSS rates as increases or decreases to the cost of natural gas in NJNG’s tariff for gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. In 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 treasury rate of 3.26 percent associated with a 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 NJNG believes that the market value upon settlement will be recovered in future rates. Upon settlement, any gain or loss will be amortized into earnings over the life of the future underlying debt issuance.
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 natural gas futures and options contracts, listed equities and money market funds. Exchange traded futures and options contracts include all energy contracts traded on the NYMEX, CME and ICE that NJR refers internally to as basis swaps, fixed swaps, futures and financial options that are cleared through a FCM. Level 2 Other significant observable inputs such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services. NJR's Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC forward sales or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). NJNG's treasury lock is also considered Level 2 as valuation is based on quoted market interest and swap rates as inputs to the valuation model. Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as the data is: • widely accepted and public; • non-proprietary and sourced from an independent third party; and • observable and published. These additional adjustments are generally not considered to be significant to the ultimate recognized values. Level 3 Inputs derived from a significant amount of unobservable market data. These include NJR's best estimate of fair value and are derived primarily through the use of internal valuation methodologies.

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Gas in Storage	The following table summarizes gas in storage, at average cost by company as of: March 31, September 30, ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf NJRES $ 128,281 46.4 $ 130,493 62.0 NJNG 15,233 4.3 75,758 21.3 Total $ 143,514 50.7 $ 206,251 83.3
Accounts Receivable by Subsidiary	Customer accounts receivable include outstanding billings from the following subsidiaries as of: (Thousands) March 31, September 30, NJRES $ 135,199 56 % $ 102,884 72 % NJNG (1) 100,449 41 30,951 22 NJRCEV 2,405 1 1,807 1 NJRHS and other 4,645 2 7,016 5 Total $ 242,698 100 % $ 142,658 100 % (1) Does not include unbilled revenues of $42.7 million and $5.7 million as of March 31, 2017 and September 30, 2016 , respectively.
Schedule of Retrospective Application of New Accounting Standard	In addition, the following amounts on the Unaudited Condensed Consolidated Financial Statements have been adjusted retrospectively during the three and six months ended March 31, 2016 : (Thousands) As Previously Reported Effect of Change As Adjusted Three Months Ended Statements of Operations Income tax provision $ 17,840 $ (25 ) $ 17,815 Net income $ 73,328 $ 25 $ 73,353 Earnings per common share Basic $ 0.85 $ — $ 0.85 Diluted $ 0.84 $ — $ 0.84 Six Months Ended Statements of Operations Income tax provision $ 26,197 $ (1,660 ) $ 24,537 Net income $ 121,975 $ 1,660 $ 123,635 Earnings per common share Basic $ 1.42 $ 0.02 $ 1.44 Diluted $ 1.41 $ 0.01 $ 1.42 Cash flows from operating activities Net income $ 121,975 $ 1,660 $ 123,635 Tax benefit from stock based compensation $ — $ 1,660 $ 1,660 Other noncurrent liabilities $ 2,302 $ (139 ) $ 2,163 Net cash flows from operating activities $ 114,824 $ 3,181 $ 118,005 Cash flows from financing activities Tax withholding payments related to net settled stock compensation $ — $ (3,181 ) $ (3,181 ) Cash flows from financing activities $ 53,547 $ (3,181 ) $ 50,366 In addition, the following amounts on the Unaudited Condensed Consolidated Balance Sheets have been adjusted, retrospectively, as of September 30, 2016. (Thousands) As Previously Reported Effect of Change As Adjusted Assets Other noncurrent assets $ 68,708 $ (8,512 ) $ 60,196 Total noncurrent assets $ 712,166 $ (8,512 ) $ 703,654 Total assets $ 3,727,082 $ (8,512 ) $ 3,718,570 Capitalization and Liabilities Long-term debt $ 1,063,550 $ (8,512 ) $ 1,055,038 Total capitalization $ 2,230,141 $ (8,512 ) $ 2,221,629 Total capitalization and liabilities $ 3,727,082 $ (8,512 ) $ 3,718,570

REGULATION (Tables)

REGULATION (Tables)	6 Months Ended
	Mar. 31, 2017
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) March 31, September 30, Regulatory assets-current Conservation Incentive Program $ 23,834 $ 36,957 New Jersey Clean Energy Program 6,239 14,232 Underrecovered gas costs 13,271 — Derivatives at fair value, net — 3,097 Total current regulatory assets $ 43,344 $ 54,286 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 19,067 $ 19,595 Liability for future expenditures 165,849 172,000 Deferred income taxes 21,209 20,273 Derivatives at fair value, net 4,392 23,384 SAVEGREEN 15,604 25,208 Postemployment and other benefit costs 151,414 157,027 Deferred Superstorm Sandy costs 14,116 15,201 Other noncurrent regulatory assets 5,273 8,606 Total noncurrent regulatory assets $ 396,924 $ 441,294 Regulatory liability-current Derivatives at fair value, net $ 5,747 $ — Overrecovered gas costs — 9,469 Total current regulatory liabilities $ 5,747 $ 9,469 Regulatory liabilities-noncurrent Cost of removal obligation $ 17,224 $ 30,549 New Jersey Clean Energy Program 10,269 10,657 Other noncurrent regulatory liabilities 964 205 Total noncurrent regulatory liabilities $ 28,457 $ 41,411

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value of Derivative Assets and Liabilities	The following table reflects the fair value of NJR's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of: Fair Value March 31, 2017 September 30, 2016 (Thousands) Balance Sheet Location Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: NJNG: Physical commodity contracts Derivatives - current $ 64 $ 17 $ 235 $ 1,154 Financial commodity contracts Derivatives - current 2,240 928 805 2,979 Derivatives - noncurrent — — 75 386 Interest rate contracts Derivatives - noncurrent — 4,392 — 23,073 NJRES: Physical commodity contracts Derivatives - current 4,080 2,460 5,994 11,660 Derivatives - noncurrent 6,084 588 3,987 1,212 Financial commodity contracts Derivatives - current 25,717 29,127 22,929 45,255 Derivatives - noncurrent 263 1,125 1,165 581 Foreign currency contracts Derivatives - current 2 27 1 32 Fair value of derivatives not designated as hedging instruments $ 38,450 $ 38,664 $ 35,191 $ 86,332 Total fair value of derivatives $ 38,450 $ 38,664 $ 35,191 $ 86,332
Offsetting Assets	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 on 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 March 31, 2017: Derivative assets: NJRES Physical commodity contracts $ 10,164 $ (540 ) $ (200 ) $ 9,424 Financial commodity contracts 25,980 (25,068 ) — 912 Foreign currency contracts 2 (2 ) — — Total NJRES $ 36,146 $ (25,610 ) $ (200 ) $ 10,336 NJNG Physical commodity contracts $ 64 $ (2 ) $ — $ 62 Financial commodity contracts 2,240 (928 ) (1,312 ) — Total NJNG $ 2,304 $ (930 ) $ (1,312 ) $ 62 Derivative liabilities: NJRES Physical commodity contracts $ 3,048 $ (540 ) $ — $ 2,508 Financial commodity contracts 30,252 (25,068 ) (5,184 ) — Foreign currency contracts 27 (2 ) — 25 Total NJRES $ 33,327 $ (25,610 ) $ (5,184 ) $ 2,533 NJNG Physical commodity contracts $ 17 $ (2 ) $ — $ 15 Financial commodity contracts 928 (928 ) — — Interest rate contracts 4,392 — — 4,392 Total NJNG $ 5,337 $ (930 ) $ — $ 4,407 As of September 30, 2016: Derivative assets: NJRES Physical commodity contracts $ 9,981 $ (2,837 ) $ (755 ) $ 6,389 Financial commodity contracts 24,094 (17,945 ) (6,149 ) — Foreign currency contracts 1 (1 ) — — Total NJRES $ 34,076 $ (20,783 ) $ (6,904 ) $ 6,389 NJNG Physical commodity contracts $ 235 $ (31 ) $ — $ 204 Financial commodity contracts 880 (880 ) — — Total NJNG $ 1,115 $ (911 ) $ — $ 204 Derivative liabilities: NJRES Physical commodity contracts $ 12,872 $ (2,837 ) $ 1,200 $ 11,235 Financial commodity contracts 45,836 (17,945 ) (27,891 ) — Foreign currency contracts 32 (1 ) — 31 Total NJRES $ 58,740 $ (20,783 ) $ (26,691 ) $ 11,266 NJNG Physical commodity contracts $ 1,154 $ (31 ) $ — $ 1,123 Financial commodity contracts 3,365 (880 ) (2,485 ) — Interest rate contracts 23,073 — — 23,073 Total NJNG $ 27,592 $ (911 ) $ (2,485 ) $ 24,196 (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) Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3) Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties. (4) Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.
Offsetting Liabilities	The following table summarizes the reported gross amounts, the amounts that NJR has the right to offset but elects not to, financial collateral, as well as the net amounts NJR could present on 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 March 31, 2017: Derivative assets: NJRES Physical commodity contracts $ 10,164 $ (540 ) $ (200 ) $ 9,424 Financial commodity contracts 25,980 (25,068 ) — 912 Foreign currency contracts 2 (2 ) — — Total NJRES $ 36,146 $ (25,610 ) $ (200 ) $ 10,336 NJNG Physical commodity contracts $ 64 $ (2 ) $ — $ 62 Financial commodity contracts 2,240 (928 ) (1,312 ) — Total NJNG $ 2,304 $ (930 ) $ (1,312 ) $ 62 Derivative liabilities: NJRES Physical commodity contracts $ 3,048 $ (540 ) $ — $ 2,508 Financial commodity contracts 30,252 (25,068 ) (5,184 ) — Foreign currency contracts 27 (2 ) — 25 Total NJRES $ 33,327 $ (25,610 ) $ (5,184 ) $ 2,533 NJNG Physical commodity contracts $ 17 $ (2 ) $ — $ 15 Financial commodity contracts 928 (928 ) — — Interest rate contracts 4,392 — — 4,392 Total NJNG $ 5,337 $ (930 ) $ — $ 4,407 As of September 30, 2016: Derivative assets: NJRES Physical commodity contracts $ 9,981 $ (2,837 ) $ (755 ) $ 6,389 Financial commodity contracts 24,094 (17,945 ) (6,149 ) — Foreign currency contracts 1 (1 ) — — Total NJRES $ 34,076 $ (20,783 ) $ (6,904 ) $ 6,389 NJNG Physical commodity contracts $ 235 $ (31 ) $ — $ 204 Financial commodity contracts 880 (880 ) — — Total NJNG $ 1,115 $ (911 ) $ — $ 204 Derivative liabilities: NJRES Physical commodity contracts $ 12,872 $ (2,837 ) $ 1,200 $ 11,235 Financial commodity contracts 45,836 (17,945 ) (27,891 ) — Foreign currency contracts 32 (1 ) — 31 Total NJRES $ 58,740 $ (20,783 ) $ (26,691 ) $ 11,266 NJNG Physical commodity contracts $ 1,154 $ (31 ) $ — $ 1,123 Financial commodity contracts 3,365 (880 ) (2,485 ) — Interest rate contracts 23,073 — — 23,073 Total NJNG $ 27,592 $ (911 ) $ (2,485 ) $ 24,196 (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) Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3) Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties. (4) Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.
Effect of Derivative Instruments on Consolidated Statements of Operations	The following table reflects the effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations as of: (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized in income on derivatives Three Months Ended Six Months Ended March 31, March 31, Derivatives not designated as hedging instruments: 2017 2016 2017 2016 NJRES: Physical commodity contracts Operating revenues $ 4,982 $ 9,128 $ 6,725 $ 21,002 Physical commodity contracts Gas purchases (3,982 ) (5,583 ) (12,781 ) (26,820 ) Financial commodity contracts Gas purchases 38,121 21,820 7,510 63,096 Foreign currency contracts Gas purchases 53 — (33 ) — Total unrealized and realized gains (losses) $ 39,174 $ 25,365 $ 1,421 $ 57,278 The following table reflects the gains (losses) associated with NJNG's derivative instruments as of: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2017 2016 2017 2016 NJNG: Physical commodity contracts $ (3,780 ) $ (14,528 ) $ (2,730 ) $ (14,528 ) Financial commodity contracts (418 ) (5,151 ) 10,760 (10,786 ) Interest rate contracts (1,690 ) (11,071 ) 18,681 (8,705 ) Total unrealized and realized (losses) gains $ (5,888 ) $ (30,750 ) $ 26,711 $ (34,019 )
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI	The following table reflects the effect of derivative instruments that were designated as cash flow hedges on OCI during the three and six months ended March 31, 2016 : (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) March 31, 2016 Three Months Ended Six Months Ended Three Months Ended Six Months Ended Foreign currency contracts $ 29 $ (35 ) $ 30 $ 42
Schedule of Outstanding Long (Short) Derivatives	NJNG and NJRES had the following outstanding long (short) derivatives as of: Volume (Bcf) March 31, September 30, NJNG Futures 24.6 23.6 Physical 5.7 9.2 NJRES Futures (64.2 ) (79.1 ) Options — 1.2 Physical 64.0 94.6 Not included in the previous table are NJRES' gross notional amount of foreign currency transactions of approximately $2.2 million , NJNG’s treasury lock agreement as previously discussed and 314,500 SRECs at NJRES that are open as of March 31, 2017 .
Schedule of Broker Margin Accounts by Company	The balances by company are as follows: (Thousands) Balance Sheet Location March 31, September 30, NJNG Broker margin - Current assets $ 3,354 $ 4,822 NJRES Broker margin - Current assets $ 20,250 $ 42,822
Summary of Gross Credit Exposures	The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of March 31, 2017 . The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and NJRCEV residential solar installations. (Thousands) Gross Credit Exposure Investment grade $ 155,318 Noninvestment grade 35,381 Internally rated investment grade 8,974 Internally rated noninvestment grade 27,114 Total $ 226,787

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value, by Balance Sheet Grouping	The estimated fair value of long-term debt at NJNG and NJR, including current maturities, excluding capital leases and debt issuance costs, is as follows: (Thousands) March 31, September 30, Carrying value (1) $ 1,047,045 $ 1,082,845 Fair market value $ 1,041,750 $ 1,131,077 (1) Excludes capital leases of $45.9 million and $42.2 million as of March 31, 2017 and September 30, 2016 , 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 March 31, 2017: Assets: Physical commodity contracts $ — $ 10,228 $ — $ 10,228 Financial commodity contracts 28,220 — — 28,220 Financial commodity contracts - foreign exchange — 2 — 2 Available for sale equity securities - energy industry 65,884 — — 65,884 Money market funds 65,115 — — 65,115 Other 1,249 — — 1,249 Total assets at fair value $ 160,468 $ 10,230 $ — $ 170,698 Liabilities: Physical commodity contracts $ — $ 3,065 $ — $ 3,065 Financial commodity contracts 31,180 — — 31,180 Financial commodity contracts - foreign exchange — 27 — 27 Interest rate contracts — 4,392 — 4,392 Total liabilities at fair value $ 31,180 $ 7,484 $ — $ 38,664 As of September 30, 2016: Assets: Physical commodity contracts $ — $ 10,216 $ — $ 10,216 Financial commodity contracts 24,974 — — 24,974 Financial commodity contracts - foreign exchange — 1 — 1 Available for sale equity securities - energy industry 55,789 — — 55,789 Money market funds 34,072 — — 34,072 Other 1,444 — — 1,444 Total assets at fair value $ 116,279 $ 10,217 $ — $ 126,496 Liabilities: Physical commodity contracts $ — $ 14,026 $ — $ 14,026 Financial commodity contracts 49,201 — — 49,201 Financial commodity contracts - foreign exchange — 32 — 32 Interest rate contracts — 23,073 — 23,073 Total liabilities at fair value $ 49,201 $ 37,131 $ — $ 86,332

INVESTMENTS IN EQUITY METHOD 27

INVESTMENTS IN EQUITY METHOD INVESTEES (Tables)	6 Months Ended
	Mar. 31, 2017
Investments, All Other Investments [Abstract]
Schedule of Equity Method Investments	NJR's investments in equity method investees include the following as of: (Thousands) March 31, September 30, Steckman Ridge (1) $ 121,809 $ 123,155 PennEast 31,082 17,993 Total $ 152,891 $ 141,148 (1) Includes loans with a total outstanding principal balance of $70.4 million for both March 31, 2017 and September 30, 2016 . 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)	6 Months Ended
	Mar. 31, 2017
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 Six Months Ended March 31, March 31, (Thousands, except per share amounts) 2017 2016 2017 2016 Net income, as reported $ 114,702 $ 73,353 $ 149,631 $ 123,635 Basic earnings per share Weighted average shares of common stock outstanding-basic 86,275 85,834 86,182 85,754 Basic earnings per common share $1.33 $0.85 $1.74 $1.44 Diluted earnings per share Weighted average shares of common stock outstanding-basic 86,275 85,834 86,182 85,754 Incremental shares (1) 826 1,024 811 1,024 Weighted average shares of common stock outstanding-diluted 87,101 86,858 86,993 86,778 Diluted earnings per common share (2) $1.32 $0.84 $1.72 $1.42 (1) Incremental shares consist primarily of unvested stock awards and performance shares. (2) There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for the three and six months ended March 31, 2017 and 2016 .

COMMON STOCK EQUITY (Tables)

COMMON STOCK EQUITY (Tables)	6 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Changes in Common Stock Equity	Changes in common stock equity during the six months ended March 31, 2017 , were 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 at September 30, 2016 86,086 $ 221,654 $ 215,580 $ (15,155 ) $ (81,044 ) $ 825,556 $ 1,166,591 Net income 149,631 149,631 Other comprehensive income 7,558 7,558 Common stock issued: Incentive plan 232 581 4,788 5,369 Dividend reinvestment plan (1) 279 (1,266 ) 10,994 9,728 Cash dividend declared ($.51 per share) (44,003 ) (44,003 ) Treasury stock and other (233 ) (28 ) (8,566 ) (8,594 ) Balance at March 31, 2017 86,364 $ 222,235 $ 219,074 $ (7,597 ) $ (78,616 ) $ 931,184 $ 1,286,280 (1) Shares sold through the DRP are issued from treasury stock at average cost, which may differ from the actual market price paid.
Components of Accumulated Other Comprehensive Income (Loss), Net of Tax	The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the three months ended March 31, 2017 and 2016 : (Thousands) Available for Sale Securities Cash Flow Hedges Postemployment Benefit Obligation Total Balance at December 31, 2016 $ 9,713 $ — $ (19,036 ) $ (9,323 ) Other comprehensive income (loss), net of tax Other comprehensive income, before reclassifications, net of tax of $(1,808), $0, $0, $(1,808) 3,054 — — 3,054 Amounts reclassified from accumulated other comprehensive income, net of tax of $1,138, $0, $(217), $921 (1,646 ) — 318 (2) (1,328 ) Net current-period other comprehensive income, net of tax of $(670), $0, $(217), $(887) 1,408 — 318 1,726 Balance at March 31, 2017 $ 11,121 $ — $ (18,718 ) $ (7,597 ) Balance as of December 31, 2015 $ 10,086 $ (33 ) $ (15,523 ) $ (5,470 ) Other comprehensive income, net of tax Other comprehensive income (loss), before reclassifications, net of tax of $(3,154), $(10), $0, $(3,164) 4,500 19 — 4,519 Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(11), $(175), $(186) — 19 257 276 Net current-period other comprehensive income, net of tax of ($3,154), $(21), $(175), $(3,350) 4,500 38 257 4,795 Balance as of March 31, 2016 $ 14,586 $ 5 $ (15,266 ) $ (675 ) The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the six months ended March 31, 2017 and 2016 : (Thousands) Available for Sale Securities Cash Flow Hedges Postemployment Benefit Obligation Total Balance at September 30, 2016 $ 4,198 $ — $ (19,353 ) $ (15,155 ) Other comprehensive income (loss), net of tax Other comprehensive income, before reclassifications, net of tax of $(6,648), $0, $0, $(6,648) 10,096 — — 10,096 Amounts reclassified from accumulated other comprehensive income, net of tax of $2,192, $0, $(434), $1,758 (3,173 ) — 635 (2) (2,538 ) Net current-period other comprehensive income, net of tax of $(4,456), $0, $(434), $(4,890) 6,923 — 635 7,558 Balance at March 31, 2017 $ 11,121 $ — $ (18,718 ) $ (7,597 ) Balance as of September 30, 2015 $ 6,385 $ — $ (15,779 ) $ (9,394 ) Other comprehensive income (loss), net of tax Other comprehensive income (loss), before reclassifications, net of tax of $(5,768), $13, $0, $(5,755) 8,201 (22 ) — 8,179 Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(15), $(349), $(364) — 27 (1) 513 (2) 540 Net current-period other comprehensive income, net of tax of ($5,768), $(2), $(349), $(6,119) 8,201 5 513 8,719 Balance as of March 31, 2016 $ 14,586 $ 5 $ (15,266 ) $ (675 ) (1) Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases on the Unaudited Condensed Consolidated Statements of Operations. Effective January 1, 2016, the Company elected not to designate its foreign currency derivatives as accounting hedges and, as a result, changes in fair value of the effective portion of the hedges are no longer recorded in OCI. (2) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations.

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Mar. 31, 2017
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) March 31, September 30, Expiration Dates NJR Bank revolving credit facilities (1) $ 425,000 $ 425,000 September 2020 Notes outstanding at end of period $ 237,900 $ 121,700 Weighted average interest rate at end of period 1.75 % 1.43 % Amount available at end of period (2) $ 173,686 $ 288,910 NJNG Bank revolving credit facilities (3) $ 250,000 $ 250,000 May 2019 Commercial paper outstanding at end of period $ — $ — Weighted average interest rate at end of period — % — % Amount available at end of period (4) $ 249,269 $ 249,269 (1) Committed credit facilities, which require commitment fees on the unused amounts. (2) Letters of credit outstanding total $13.4 million and $14.4 million for March 31, 2017 and September 30, 2016 , 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 for both March 31, 2017 and September 30, 2016 , which reduces the amount available by the same amount.

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	6 Months Ended
	Mar. 31, 2017
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 Six Months Ended Three Months Ended Six Months Ended March 31, March 31, March 31, March 31, (Thousands) 2017 2016 2017 2016 2017 2016 2017 2016 Service cost $ 2,087 $ 1,898 $ 4,174 $ 3,796 $ 1,095 $ 1,131 $ 2,190 $ 2,261 Interest cost 2,442 2,835 4,885 5,671 1,387 1,564 2,773 3,128 Expected return on plan assets (4,828 ) (5,030 ) (9,656 ) (10,059 ) (1,191 ) (1,211 ) (2,383 ) (2,422 ) Recognized actuarial loss 2,206 1,821 4,413 3,641 1,092 818 2,185 1,637 Prior service cost amortization 28 27 55 55 (91 ) (91 ) (182 ) (182 ) Net periodic benefit cost $ 1,935 $ 1,551 $ 3,871 $ 3,104 $ 2,292 $ 2,211 $ 4,583 $ 4,422

COMMITMENTS AND CONTINGENT LI32

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	6 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Long-term Purchase Commitment	Commitments as of March 31, 2017 , for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2017 2018 2019 2020 2021 Thereafter NJRES: Natural gas purchases $ 179,517 $ 121,391 $ 55,395 $ — $ — $ — Storage demand fees 19,525 28,869 16,195 12,913 8,822 8,580 Pipeline demand fees 38,347 48,509 19,057 8,137 7,605 10,403 Sub-total NJRES $ 237,389 $ 198,769 $ 90,647 $ 21,050 $ 16,427 $ 18,983 NJNG: Natural gas purchases $ 45,266 $ 11,250 $ — $ — $ — $ — Storage demand fees 14,568 29,187 25,772 14,476 7,802 11,705 Pipeline demand fees 25,400 81,229 116,976 112,555 90,106 732,538 Sub-total NJNG (1) $ 85,234 $ 121,666 $ 142,748 $ 127,031 $ 97,908 $ 744,243 Total $ 322,623 $ 320,435 $ 233,395 $ 148,081 $ 114,335 $ 763,226 (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)	6 Months Ended
	Mar. 31, 2017
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 Six Months Ended March 31, March 31, (Thousands) 2017 2016 2017 2016 Operating revenues Natural Gas Distribution External customers $ 295,546 $ 242,536 $ 481,102 $ 394,142 Clean Energy Ventures External customers 12,943 7,662 20,510 15,456 Energy Services External customers (1) 417,608 316,703 756,538 592,885 Intercompany 2,679 3,255 930 5,766 Subtotal 728,776 570,156 1,259,080 1,008,249 Home Services and Other External customers 7,449 7,292 16,424 15,968 Intercompany 1,055 639 2,086 1,536 Eliminations (3,734 ) (3,894 ) (3,016 ) (7,302 ) Total $ 733,546 $ 574,193 $ 1,274,574 $ 1,018,451 Depreciation and amortization Natural Gas Distribution $ 12,263 $ 11,598 $ 24,293 $ 22,836 Clean Energy Ventures 7,923 5,876 14,964 10,986 Energy Services 17 23 33 46 Midstream 2 2 3 3 Subtotal 20,205 17,499 39,293 33,871 Home Services and Other 199 237 420 464 Eliminations (76 ) 8 (125 ) (109 ) Total $ 20,328 $ 17,744 $ 39,588 $ 34,226 Interest income (2) Natural Gas Distribution $ 97 $ 60 $ 172 $ 128 Energy Services — — — 72 Midstream 512 450 974 714 Subtotal 609 510 1,146 914 Home Services and Other 132 123 253 160 Eliminations (633 ) (580 ) (1,216 ) (951 ) Total $ 108 $ 53 $ 183 $ 123 (1) Includes sales to Canada, which accounted for 1.5 and 2.9 percent of total operating revenues during the six months ended March 31, 2017 and 2016 . (2) Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2017 2016 2017 2016 Interest expense, net of capitalized interest Natural Gas Distribution $ 6,392 $ 4,690 $ 13,216 $ 9,278 Clean Energy Ventures 4,055 2,552 7,379 4,605 Energy Services 716 168 1,287 376 Midstream 414 130 470 172 Subtotal 11,577 7,540 22,352 14,431 Home Services and Other 123 105 197 105 Eliminations (264 ) (276 ) (498 ) (390 ) Total $ 11,436 $ 7,369 $ 22,051 $ 14,146 Income tax provision (benefit) Natural Gas Distribution $ 30,499 $ 22,704 $ 45,386 $ 36,211 Clean Energy Ventures (24,756 ) (13,916 ) (36,643 ) (25,650 ) Energy Services 16,277 7,805 13,101 12,710 Midstream 1,502 1,530 3,151 3,170 Subtotal 23,522 18,123 24,995 26,441 Home Services and Other 1,066 (1,474 ) 821 (2,604 ) Eliminations (656 ) 1,166 134 700 Total $ 23,932 $ 17,815 $ 25,950 $ 24,537 Equity in earnings of affiliates Midstream $ 6,119 $ 3,508 $ 9,450 $ 7,053 Eliminations (1,040 ) (1,106 ) (2,060 ) (2,245 ) Total $ 5,079 $ 2,402 $ 7,390 $ 4,808 Net financial earnings Natural Gas Distribution $ 60,233 $ 48,967 $ 90,581 $ 79,893 Clean Energy Ventures 22,743 11,807 25,585 19,459 Energy Services 15,746 17,005 19,233 27,309 Midstream 4,948 2,228 7,335 4,572 Subtotal 103,670 80,007 142,734 131,233 Home Services and Other 708 (2,022 ) 2,250 (1,763 ) Eliminations (272 ) (80 ) (495 ) (298 ) Total $ 104,106 $ 77,905 $ 144,489 $ 129,172 Capital expenditures Natural Gas Distribution $ 34,744 $ 47,366 $ 73,599 $ 96,406 Clean Energy Ventures 43,120 25,876 89,905 70,882 Subtotal 77,864 73,242 163,504 167,288 Home Services and Other 345 272 516 1,069 Total $ 78,209 $ 73,514 $ 164,020 $ 168,357 Investments in equity investees Midstream $ 5,902 $ 3,102 $ 10,538 $ 5,948 Total $ 5,902 $ 3,102 $ 10,538 $ 5,948
Reconciliation of Consolidated NFE to Consolidated Net Income	A reconciliation of consolidated NFE to consolidated net income is as follows: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2017 2016 2017 2016 Net financial earnings $ 104,106 $ 77,905 $ 144,489 $ 129,172 Less: Unrealized (gain) loss on derivative instruments and related transactions (54,855 ) 3,170 (26,553 ) 2,035 Tax effect 19,679 (1,152 ) 9,922 (739 ) Effects of economic hedging related to natural gas inventory 34,328 (1,054 ) 16,389 2,759 Tax effect (12,334 ) 384 (6,130 ) (1,001 ) Net income to NFE tax adjustment 2,586 3,204 1,230 2,483 Net income $ 114,702 $ 73,353 $ 149,631 $ 123,635
Reconciliation of Assets from Segment to Consolidated	The Company's assets for the various business segments and business operations are detailed below: (Thousands) March 31, September 30, Assets at end of period: Natural Gas Distribution $ 2,572,576 $ 2,517,401 Clean Energy Ventures 709,289 665,696 Energy Services 328,372 327,626 Midstream 212,439 186,259 Subtotal 3,822,676 3,696,982 Home Services and Other 126,255 109,487 Intercompany assets (1) (91,572 ) (87,899 ) Total $ 3,857,359 $ 3,718,570 (1) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation.

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Schedule Of Demand Fees And Demand Fees Payable	Demand fees, net of eliminations, associated with Steckman Ridge were as follows: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2017 2016 2017 2016 NJNG $ 1,383 $ 1,385 $ 2,793 $ 2,774 NJRES 689 692 1,390 1,377 Total $ 2,072 $ 2,077 $ 4,183 $ 4,151 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) March 31, September 30, NJNG $ 780 $ 775 NJRES 376 375 Total $ 1,156 $ 1,150

NATURE OF THE BUSINESS (Details

NATURE OF THE BUSINESS (Details) shares in Thousands, customer in Thousands	6 Months Ended
	Mar. 31, 2017subsidiarycustomershares
Common Units
Nature of Business [Line Items]
Ownership interest exchanged (in shares) | shares	1,840
Steckman Ridge
Nature of Business [Line Items]
Equity method investment, ownership percentage	50.00%
PennEast
Nature of Business [Line Items]
Equity method investment, ownership percentage	20.00%
NJNG
Nature of Business [Line Items]
Total retail customers | customer	528
NJR Retail Holdings Corporation
Nature of Business [Line Items]
Number of principal subsidiaries | subsidiary	2

SUMMARY OF SIGNIFICANT ACCOUN36

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - GAS IN STORAGE (Details) $ in Thousands	Mar. 31, 2017USD ($)Bcf	Sep. 30, 2016USD ($)Bcf
Inventory [Line Items]
Gas in Storage, value | $	$ 143,514	$ 206,251
Gas in Storage, Bcf | Bcf	50.7	83.3
NJRES
Inventory [Line Items]
Gas in Storage, value | $	$ 128,281	$ 130,493
Gas in Storage, Bcf | Bcf	46.4	62
NJNG
Inventory [Line Items]
Gas in Storage, value | $	$ 15,233	$ 75,758
Gas in Storage, Bcf | Bcf	4.3	21.3

SUMMARY OF SIGNIFICANT ACCOUN37

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SALES TAX ACCOUNTING (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jan. 01, 2017	Dec. 31, 2016
Subsequent Event [Line Items]
Sales tax	$ 16.9	$ 13.5	$ 28.1	$ 20.7
NEW JERSEY
Subsequent Event [Line Items]
State sales tax, percent					6.875%	7.00%

SUMMARY OF SIGNIFICANT ACCOUN38

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SALE OF ASSET (Details) - Mar. 08, 2017 $ in Millions	USD ($)a	ft²
Accounting Policies [Abstract]
Area of real estate property	5	56,400
Proceeds from sale of real estate	$ 9.4
Gain on sale of real estate	$ 1.9

SUMMARY OF SIGNIFICANT ACCOUN39

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - AVAILABLE FOR SALE SECURITIES (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2016
Accounting Policies [Abstract]
Available for sale securities	$ 65,884	$ 65,884		$ 55,789
Unrealized gain		18,500		7,200
Unrealized gain, net of tax		11,100		$ 4,200
Proceeds from sale of available for sale securities	3,400	6,639	$ 0
Pre-tax gain on sale of available-for-sale securities	$ 2,800	$ 5,400

SUMMARY OF SIGNIFICANT ACCOUN40

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CUSTOMER ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Billed	$ 242,698	$ 142,658
Receivable by subsidiary, percentage	100.00%	100.00%
Unbilled revenues	$ 42,657	$ 5,744
NJRES
Accounts, Notes, Loans and Financing Receivable [Line Items]
Billed	$ 135,199	$ 102,884
Receivable by subsidiary, percentage	56.00%	72.00%
NJNG
Accounts, Notes, Loans and Financing Receivable [Line Items]
Billed	$ 100,449	$ 30,951
Receivable by subsidiary, percentage	41.00%	22.00%
NJRCEV
Accounts, Notes, Loans and Financing Receivable [Line Items]
Billed	$ 2,405	$ 1,807
Receivable by subsidiary, percentage	1.00%	1.00%
NJRHS and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Billed	$ 4,645	$ 7,016
Receivable by subsidiary, percentage	2.00%	5.00%

SUMMARY OF SIGNIFICANT ACCOUN41

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - LOAN RECEIVABLE (Details) - USD ($)	6 Months Ended
	Mar. 31, 2017	Sep. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable in other current assets	$ 8,200,000	$ 7,800,000
Loans receivable in other noncurrent assets	$ 40,700,000	39,500,000
Threshold period in establishing allowance for doubtful accounts	60 days
Allowance for doubtful accounts	$ 0	$ 0
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan term	2 years
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan term	10 years

SUMMARY OF SIGNIFICANT ACCOUN42

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - STOCK BASED COMPENSATION (Details) - shares	Jan. 25, 2017	Jan. 24, 2017
NJR 2017 Stock Award And Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance	3,135,000
Employees | NJR 2007 Stock Award And Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance		2,367,338
Directors | NJR 2007 Stock Award And Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance		4,223

SUMMARY OF SIGNIFICANT ACCOUN43

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NEW ACCOUNTING STANDARD (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2016
Income Statement [Abstract]
Income tax provision	$ 23,932	$ 17,815	$ 25,950	$ 24,537
Net income	$ 114,702	$ 73,353	$ 149,631	$ 123,635
EARNINGS PER COMMON SHARE
Basic (usd per share)	$ 1.33	$ 0.85	$ 1.74	$ 1.44
Diluted (usd per share)	$ 1.32	$ 0.84	$ 1.72	$ 1.42
Cash flows (used in) operating activities
Net income, as reported	$ 114,702	$ 73,353	$ 149,631	$ 123,635
Tax benefit from stock-based compensation			1,231	1,660
Other noncurrent liabilities			(2,997)	2,163
Net cash flows (used in) operating activities			171,804	118,005
Cash flows from financing activities
Tax withholding payments related to net settled stock compensation			(4,354)	(3,181)
Cash flows from financing activities			39,251	50,366
Assets
Other noncurrent assets	61,052		61,052		$ 60,196
Total noncurrent assets	683,098		683,098		703,654
Total assets	3,857,359		3,857,359		3,718,570
Capitalization and Liabilities
Long-term debt	1,023,968		1,023,968		1,055,038
Total capitalization	2,310,248		2,310,248		2,221,629
Total capitalization and liabilities	$ 3,857,359		$ 3,857,359		3,718,570
As Previously Reported
Income Statement [Abstract]
Income tax provision		17,840		26,197
Net income		$ 73,328		$ 121,975
EARNINGS PER COMMON SHARE
Basic (usd per share)		$ 0.85		$ 1.42
Diluted (usd per share)		$ 0.84		$ 1.41
Cash flows (used in) operating activities
Net income, as reported		$ 73,328		$ 121,975
Tax benefit from stock-based compensation				0
Other noncurrent liabilities				2,302
Net cash flows (used in) operating activities				114,824
Cash flows from financing activities
Tax withholding payments related to net settled stock compensation				0
Cash flows from financing activities				53,547
Assets
Other noncurrent assets					68,708
Total noncurrent assets					712,166
Total assets					3,727,082
Capitalization and Liabilities
Long-term debt					1,063,550
Total capitalization					2,230,141
Total capitalization and liabilities					3,727,082
Effect of Change
Income Statement [Abstract]
Income tax provision		(25)		(1,660)
Net income		$ 25		$ 1,660
EARNINGS PER COMMON SHARE
Basic (usd per share)		$ 0		$ 0.02
Diluted (usd per share)		$ 0		$ 0.01
Cash flows (used in) operating activities
Net income, as reported		$ 25		$ 1,660
Tax benefit from stock-based compensation				1,660
Other noncurrent liabilities				(139)
Net cash flows (used in) operating activities				3,181
Cash flows from financing activities
Tax withholding payments related to net settled stock compensation				(3,181)
Cash flows from financing activities				$ (3,181)
Assets
Other noncurrent assets					(8,512)
Total noncurrent assets					(8,512)
Total assets					(8,512)
Capitalization and Liabilities
Long-term debt					(8,512)
Total capitalization					(8,512)
Total capitalization and liabilities					$ (8,512)

REGULATION - REGULATORY FILINGS

REGULATION - REGULATORY FILINGS (Details) - USD ($) $ in Millions	Mar. 31, 2017	Oct. 01, 2016
Schedule of Regulatory Filings [Line Items]
Increase in base tariff rates		$ 45
Return on equity		9.75%
Public utilities, approved equity capital structure, percentage		52.50%
Composite rate of depreciation		2.40%
Recovery of expenditures, approved rolling period		5 years
NJNG
Schedule of Regulatory Filings [Line Items]
Increase in base tariff rates	$ 4.3

REGULATION - REGULATORY ASSETS

REGULATION - REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	$ 43,344	$ 54,286
Regulatory assets-noncurrent	396,924	441,294
Regulatory liability-current	5,747	9,469
Regulatory liabilities-noncurrent	28,457	41,411
Overrecovered gas costs
Regulatory Assets And Liabilities [Line Items]
Regulatory liability-current	0	9,469
Derivatives at fair value, net
Regulatory Assets And Liabilities [Line Items]
Regulatory liability-current	5,747	0
Cost of removal obligation
Regulatory Assets And Liabilities [Line Items]
Regulatory liabilities-noncurrent	17,224	30,549
New Jersey Clean Energy Program
Regulatory Assets And Liabilities [Line Items]
Regulatory liabilities-noncurrent	10,269	10,657
Other noncurrent regulatory liabilities
Regulatory Assets And Liabilities [Line Items]
Regulatory liabilities-noncurrent	964	205
Conservation Incentive Program
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	23,834	36,957
New Jersey Clean Energy Program
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	6,239	14,232
Underrecovered gas costs
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	13,271	0
Derivatives at fair value, net
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	0	3,097
Regulatory assets-noncurrent	4,392	23,384
Expended, net of recoveries
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	19,067	19,595
Liability for future expenditures
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	165,849	172,000
Deferred income taxes
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	21,209	20,273
SAVEGREEN
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	15,604	25,208
Postemployment and other benefit costs
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	151,414	157,027
Deferred Superstorm Sandy costs
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	14,116	15,201
Other noncurrent regulatory assets
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	$ 5,273	$ 8,606

DERIVATIVE INSTRUMENTS - BALANC

DERIVATIVE INSTRUMENTS - BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($)	Mar. 31, 2017	Sep. 30, 2016	Jun. 01, 2015
Derivatives, Fair Value [Line Items]
Benchmark interest rate			3.26%
Notional amount of foreign currency derivatives			$ 125,000,000
Fair Value
Derivative assets, current	$ 32,103,000	$ 29,964,000
Derivative liabilities, current	32,559,000	61,080,000
Derivative assets, noncurrent	6,347,000	5,227,000
Derivative liabilities, noncurrent	6,105,000	25,252,000
Derivative assets	38,450,000	35,191,000
Derivative liabilities	38,664,000	86,332,000
Foreign currency contracts
Derivatives, Fair Value [Line Items]
Notional amount of foreign currency derivatives	2,200,000
Not Designated as Hedging Instrument
Fair Value
Derivative assets	38,450,000	35,191,000
Derivative liabilities	38,664,000	86,332,000
NJNG | Not Designated as Hedging Instrument | Physical commodity contracts
Fair Value
Derivative assets, current	64,000	235,000
Derivative liabilities, current	17,000	1,154,000
NJNG | Not Designated as Hedging Instrument | Financial commodity contracts
Fair Value
Derivative assets, current	2,240,000	805,000
Derivative liabilities, current	928,000	2,979,000
Derivative assets, noncurrent	0	75,000
Derivative liabilities, noncurrent	0	386,000
NJNG | Not Designated as Hedging Instrument | Interest rate contracts
Fair Value
Derivative assets, noncurrent	0	0
Derivative liabilities, noncurrent	4,392,000	23,073,000
NJRES | Not Designated as Hedging Instrument | Physical commodity contracts
Fair Value
Derivative assets, current	4,080,000	5,994,000
Derivative liabilities, current	2,460,000	11,660,000
Derivative assets, noncurrent	6,084,000	3,987,000
Derivative liabilities, noncurrent	588,000	1,212,000
NJRES | Not Designated as Hedging Instrument | Financial commodity contracts
Fair Value
Derivative assets, current	25,717,000	22,929,000
Derivative liabilities, current	29,127,000	45,255,000
Derivative assets, noncurrent	263,000	1,165,000
Derivative liabilities, noncurrent	1,125,000	581,000
NJRES | Not Designated as Hedging Instrument | Foreign currency contracts
Fair Value
Derivative assets, current	2,000	1,000
Derivative liabilities, current	27,000	$ 32,000
Series Ll | NJNG
Derivatives, Fair Value [Line Items]
Debt issued	$ 125,000,000
Interest rate, stated percentage	5.60%

DERIVATIVE INSTRUMENTS - OFFSET

DERIVATIVE INSTRUMENTS - OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
NJRES
Derivative assets:
Amounts Presented in Balance Sheets	$ 36,146	$ 34,076
Offsetting Derivative Instruments	(25,610)	(20,783)
Financial Collateral Received/Pledged	(200)	(6,904)
Net Amounts	10,336	6,389
Derivative liabilities:
Amounts Presented in Balance Sheets	33,327	58,740
Offsetting Derivative Instruments	(25,610)	(20,783)
Financial Collateral Received/Pledged	(5,184)	(26,691)
Net Amounts	2,533	11,266
NJRES | Physical commodity contracts
Derivative assets:
Amounts Presented in Balance Sheets	10,164	9,981
Offsetting Derivative Instruments	(540)	(2,837)
Financial Collateral Received/Pledged	(200)	(755)
Net Amounts	9,424	6,389
Derivative liabilities:
Amounts Presented in Balance Sheets	3,048	12,872
Offsetting Derivative Instruments	(540)	(2,837)
Financial Collateral Received/Pledged	0	1,200
Net Amounts	2,508	11,235
NJRES | Financial commodity contracts
Derivative assets:
Amounts Presented in Balance Sheets	25,980	24,094
Offsetting Derivative Instruments	(25,068)	(17,945)
Financial Collateral Received/Pledged	0	(6,149)
Net Amounts	912	0
Derivative liabilities:
Amounts Presented in Balance Sheets	30,252	45,836
Offsetting Derivative Instruments	(25,068)	(17,945)
Financial Collateral Received/Pledged	(5,184)	(27,891)
Net Amounts	0	0
NJRES | Foreign currency contracts
Derivative assets:
Amounts Presented in Balance Sheets	2	1
Offsetting Derivative Instruments	(2)	(1)
Financial Collateral Received/Pledged	0	0
Net Amounts	0	0
Derivative liabilities:
Amounts Presented in Balance Sheets	27	32
Offsetting Derivative Instruments	(2)	(1)
Financial Collateral Received/Pledged	0	0
Net Amounts	25	31
NJNG
Derivative assets:
Amounts Presented in Balance Sheets	2,304	1,115
Offsetting Derivative Instruments	(930)	(911)
Financial Collateral Received/Pledged	(1,312)	0
Net Amounts	62	204
Derivative liabilities:
Amounts Presented in Balance Sheets	5,337	27,592
Offsetting Derivative Instruments	(930)	(911)
Financial Collateral Received/Pledged	0	(2,485)
Net Amounts	4,407	24,196
NJNG | Physical commodity contracts
Derivative assets:
Amounts Presented in Balance Sheets	64	235
Offsetting Derivative Instruments	(2)	(31)
Financial Collateral Received/Pledged	0	0
Net Amounts	62	204
Derivative liabilities:
Amounts Presented in Balance Sheets	17	1,154
Offsetting Derivative Instruments	(2)	(31)
Financial Collateral Received/Pledged	0	0
Net Amounts	15	1,123
NJNG | Financial commodity contracts
Derivative assets:
Amounts Presented in Balance Sheets	2,240	880
Offsetting Derivative Instruments	(928)	(880)
Financial Collateral Received/Pledged	(1,312)	0
Net Amounts	0	0
Derivative liabilities:
Amounts Presented in Balance Sheets	928	3,365
Offsetting Derivative Instruments	(928)	(880)
Financial Collateral Received/Pledged	0	(2,485)
Net Amounts	0	0
NJNG | Interest rate contracts
Derivative liabilities:
Amounts Presented in Balance Sheets	4,392	23,073
Offsetting Derivative Instruments	0	0
Financial Collateral Received/Pledged	0	0
Net Amounts	$ 4,392	$ 23,073

DERIVATIVE INSTRUMENTS - INCOME

DERIVATIVE INSTRUMENTS - INCOME STATEMENT RELATED DISCLOSURES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Foreign currency contracts | Gas purchases | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)		$ 29		$ (35)
Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion)		30		42
Not Designated as Hedging Instrument | NJRES
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	$ 39,174	25,365	$ 1,421	57,278
Not Designated as Hedging Instrument | NJRES | Physical commodity contracts | Operating revenues
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	4,982	9,128	6,725	21,002
Not Designated as Hedging Instrument | NJRES | Physical commodity contracts | Gas purchases
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	(3,982)	(5,583)	(12,781)	(26,820)
Not Designated as Hedging Instrument | NJRES | Financial commodity contracts | Gas purchases
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	38,121	21,820	7,510	63,096
Not Designated as Hedging Instrument | NJRES | Foreign currency contracts | Gas purchases
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	53	0	(33)	0
Not Designated as Hedging Instrument | NJNG
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	(5,888)	(30,750)	26,711	(34,019)
Not Designated as Hedging Instrument | NJNG | Physical commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	(3,780)	(14,528)	(2,730)	(14,528)
Not Designated as Hedging Instrument | NJNG | Financial commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	(418)	(5,151)	10,760	(10,786)
Not Designated as Hedging Instrument | NJNG | Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	$ (1,690)	$ (11,071)	$ 18,681	$ (8,705)

DERIVATIVE INSTRUMENTS - VOLUME

DERIVATIVE INSTRUMENTS - VOLUME (Details)	Mar. 31, 2017USD ($)Bcfcertificate	Sep. 30, 2016Bcf	Jun. 01, 2015USD ($)
Derivative [Line Items]
Derivative, notional amount | $			$ 125,000,000
Foreign currency contracts
Derivative [Line Items]
Derivative, notional amount | $	$ 2,200,000
NJNG | Long | Futures
Derivative [Line Items]
Volume	24.6	23.6
NJNG | Long | Physical
Derivative [Line Items]
Volume	5.7	9.2
NJRES | Physical commodity contracts
Derivative [Line Items]
Number of SRECs | certificate	314,500
NJRES | Long | Physical
Derivative [Line Items]
Volume	64	94.6
NJRES | Long | Options
Derivative [Line Items]
Volume	0	1.2
NJRES | Short | Futures
Derivative [Line Items]
Volume	64.2	79.1

DERIVATIVE INSTRUMENTS - BROKER

DERIVATIVE INSTRUMENTS - BROKER MARGIN DEPOSITS (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
NJNG
Derivative [Line Items]
Broker margin - Current assets	$ 3,354	$ 4,822
NJRES
Derivative [Line Items]
Broker margin - Current assets	$ 20,250	$ 42,822

DERIVATIVE INSTRUMENTS - CREDIT

DERIVATIVE INSTRUMENTS - CREDIT RISK EXPOSURE (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2017	Sep. 30, 2016
Credit Risk Exposure [Line Items]
Gross Credit Exposure	$ 226,787
Derivative, net liability position, aggregate fair value	4,500	$ 23,100
Additional collateral, aggregate fair value	4,500	$ 23,100
Investment grade
Credit Risk Exposure [Line Items]
Gross Credit Exposure	155,318
Noninvestment grade
Credit Risk Exposure [Line Items]
Gross Credit Exposure	35,381
Internally rated investment grade
Credit Risk Exposure [Line Items]
Gross Credit Exposure	8,974
Internally rated noninvestment grade
Credit Risk Exposure [Line Items]
Gross Credit Exposure	$ 27,114

FAIR VALUE - DEBT (Details)

FAIR VALUE - DEBT (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Capital leases	$ 45,900	$ 42,200
Level 2 | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,047,045	1,082,845
Level 2 | Fair market value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	$ 1,041,750	$ 1,131,077

FAIR VALUE - HIERARCHY (Details

FAIR VALUE - HIERARCHY (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 38,450	$ 35,191
Liabilities	38,664	86,332
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale equity securities - energy industry	65,884	55,789
Other	1,249	1,444
Total assets at fair value	170,698	126,496
Total liabilities at fair value	38,664	86,332
Fair Value, Measurements, Recurring | Physical commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	10,228	10,216
Liabilities	3,065	14,026
Fair Value, Measurements, Recurring | Financial commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	28,220	24,974
Liabilities	31,180	49,201
Fair Value, Measurements, Recurring | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	2	1
Liabilities	27	32
Fair Value, Measurements, Recurring | Interest rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	4,392	23,073
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale equity securities - energy industry	65,884	55,789
Other	1,249	1,444
Total assets at fair value	160,468	116,279
Total liabilities at fair value	31,180	49,201
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Physical commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Liabilities	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Financial commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	28,220	24,974
Liabilities	31,180	49,201
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Liabilities	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Interest rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	0	0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale equity securities - energy industry	0	0
Other	0	0
Total assets at fair value	10,230	10,217
Total liabilities at fair value	7,484	37,131
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Physical commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	10,228	10,216
Liabilities	3,065	14,026
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Financial commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Liabilities	0	0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	2	1
Liabilities	27	32
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	4,392	23,073
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale equity securities - energy industry	0	0
Other	0	0
Total assets at fair value	0	0
Total liabilities at fair value	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Physical commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Liabilities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Financial commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Liabilities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Liabilities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	0	0
Money market funds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	65,115	34,072
Money market funds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	65,115	34,072
Money market funds | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Money market funds | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 0	$ 0

INVESTMENTS IN EQUITY METHOD 54

INVESTMENTS IN EQUITY METHOD INVESTEES (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2017USD ($)Investormi	Sep. 30, 2016USD ($)
Schedule of Equity Method Investments [Line Items]
Investments in equity investees	$ 152,891	$ 141,148
Steckman Ridge
Schedule of Equity Method Investments [Line Items]
Investments in equity investees	121,809	123,155
Steckman Ridge | Equity Method Investee
Schedule of Equity Method Investments [Line Items]
Total outstanding principal balance of loans	70,400	70,400
PennEast
Schedule of Equity Method Investments [Line Items]
Investments in equity investees	$ 31,082	$ 17,993
Number of investors in pipeline construction and operation | Investor	5
Construction plan, project area (in miles) | mi	120

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net income, as reported	$ 114,702	$ 73,353	$ 149,631	$ 123,635
Basic earnings per share
Weighted average shares of common stock outstanding-basic (shares)	86,275,000	85,834,000	86,182,000	85,754,000
Basic earnings per common share (usd per share)	$ 1.33	$ 0.85	$ 1.74	$ 1.44
Diluted earnings per share
Weighted average shares of common stock outstanding-basic (shares)	86,275,000	85,834,000	86,182,000	85,754,000
Incremental shares	826,000	1,024,000	811,000	1,024,000
Weighted average shares of common stock outstanding-diluted (shares)	87,101,000	86,858,000	86,993,000	86,778,000
Diluted (loss) earnings per common share (usd per share)	$ 1.32	$ 0.84	$ 1.72	$ 1.42
Anti-dilutive shares excluded from the calculation of diluted earnings per share	0	0	0	0

COMMON STOCK EQUITY - NARRATIVE

COMMON STOCK EQUITY - NARRATIVE (Details) - USD ($) shares in Thousands, $ in Millions	1 Months Ended	6 Months Ended
	Dec. 31, 2015	Mar. 31, 2017	Mar. 31, 2016
Equity [Abstract]
Number of treasury shares issued from raising of equity through the DRP	5,000	279	260
Equity raised through the DRP		$ 9.7	$ 8.2

COMMON STOCK EQUITY - CHANGE IN

COMMON STOCK EQUITY - CHANGE IN COMMON STOCK EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance as of beginning of period (shares)				86,086,355
Balance as of beginning of period				$ 1,166,591
Net income		$ 114,702	$ 73,353	149,631	$ 123,635
Other comprehensive income		$ 1,726	$ 4,795	7,558	$ 8,719
Common stock issued:
Incentive plan				$ 5,369
Dividend reinvestment plan (in shares)	5,000,000			279,000	260,000
Dividend reinvestment plan				$ 9,728
Cash dividend declared ($.51 per share)				(44,003)
Treasury stock and other				$ (8,594)
Balance as of end of period (shares)		86,363,986		86,363,986
Balance as of end of period		$ 1,286,280		$ 1,286,280
Cash dividend declared per share (usd per share)		$ 0.255	$ 0.24	$ 0.51	$ 0.48
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance as of beginning of period (shares)				86,086,000
Balance as of beginning of period				$ 221,654
Common stock issued:
Incentive plan (in shares)				232,000
Incentive plan				$ 581
Dividend reinvestment plan (in shares)				279,000
Treasury stock and other (shares)				(233,000)
Balance as of end of period (shares)		86,364,000		86,364,000
Balance as of end of period		$ 222,235		$ 222,235
Premium on Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance as of beginning of period				215,580
Common stock issued:
Incentive plan				4,788
Dividend reinvestment plan				(1,266)
Treasury stock and other				(28)
Balance as of end of period		219,074		219,074
Accumulated Other Comprehensive (Loss) Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance as of beginning of period		(9,323)	$ (5,470)	(15,155)	$ (9,394)
Other comprehensive income				7,558
Common stock issued:
Balance as of end of period	$ (5,470)	(7,597)	$ (675)	(7,597)	$ (675)
Treasury Stock And Other
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance as of beginning of period				(81,044)
Common stock issued:
Dividend reinvestment plan				10,994
Treasury stock and other				(8,566)
Balance as of end of period		(78,616)		(78,616)
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance as of beginning of period				825,556
Net income				149,631
Common stock issued:
Cash dividend declared ($.51 per share)				(44,003)
Balance as of end of period		$ 931,184		$ 931,184

COMMON STOCK EQUITY - ACCUMULAT

COMMON STOCK EQUITY - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance as of beginning of period			$ 1,166,591
Other comprehensive income (loss), before reclassifications, net of tax	$ 3,054	$ 4,519	10,096	$ 8,179
Amounts reclassified from accumulated other comprehensive income, net of tax	(1,328)	276	(2,538)	540
Other comprehensive income	1,726	4,795	7,558	8,719
Balance as of end of period	1,286,280		1,286,280
Available for Sale Securities
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance as of beginning of period	9,713	10,086	4,198	6,385
Other comprehensive income (loss), before reclassifications, net of tax	3,054	4,500	10,096	8,201
Amounts reclassified from accumulated other comprehensive income, net of tax	(1,646)	0	(3,173)	0
Other comprehensive income	1,408	4,500	6,923	8,201
Balance as of end of period	11,121	14,586	11,121	14,586
Tax on other comprehensive income (loss) before reclassifications	1,808	3,154	6,648	5,768
Tax on amounts reclassified from accumulated other comprehensive income	(1,138)	0	(2,192)	0
Tax on net current-period other comprehensive income (loss)	670	3,154	4,456	5,768
Cash Flow Hedges
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance as of beginning of period	0	(33)	0	0
Other comprehensive income (loss), before reclassifications, net of tax	0	19	0	(22)
Amounts reclassified from accumulated other comprehensive income, net of tax	0	19	0	27
Other comprehensive income	0	38	0	5
Balance as of end of period	0	5	0	5
Tax on other comprehensive income (loss) before reclassifications	0	10	0	(13)
Tax on amounts reclassified from accumulated other comprehensive income	0	11	0	15
Tax on net current-period other comprehensive income (loss)	0	21	0	2
Postemployment Benefit Obligation
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance as of beginning of period	(19,036)	(15,523)	(19,353)	(15,779)
Other comprehensive income (loss), before reclassifications, net of tax	0	0	0	0
Amounts reclassified from accumulated other comprehensive income, net of tax	318	257	635	513
Other comprehensive income	318	257	635	513
Balance as of end of period	(18,718)	(15,266)	(18,718)	(15,266)
Tax on other comprehensive income (loss) before reclassifications	0	0	0	0
Tax on amounts reclassified from accumulated other comprehensive income	217	175	434	349
Tax on net current-period other comprehensive income (loss)	217	175	434	349
Total
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance as of beginning of period	(9,323)	(5,470)	(15,155)	(9,394)
Other comprehensive income			7,558
Balance as of end of period	(7,597)	(675)	(7,597)	(675)
Tax on other comprehensive income (loss) before reclassifications	1,808	3,164	6,648	5,755
Tax on amounts reclassified from accumulated other comprehensive income	(921)	186	(1,758)	364
Tax on net current-period other comprehensive income (loss)	$ 887	$ 3,350	$ 4,890	$ 6,119

DEBT - CREDIT FACILITIES (Detai

DEBT - CREDIT FACILITIES (Details) - USD ($)	Mar. 31, 2017	Sep. 30, 2016
NJR | Letter of Credit
Line of Credit Facility [Line Items]
Letters of credit outstanding, amount	$ 13,400,000	$ 14,400,000
NJR | Notes
Line of Credit Facility [Line Items]
Amount outstanding at end of period	$ 237,900,000	$ 121,700,000
Weighted average interest rate at end of period	1.75%	1.43%
Amount available at end of period	$ 173,686,000	$ 288,910,000
NJR | Revolving Credit Facility | Committed Credit Facilities Due September 2020
Line of Credit Facility [Line Items]
Bank revolving credit facilities	425,000,000	425,000,000
NJNG | Commercial Paper
Line of Credit Facility [Line Items]
Amount outstanding at end of period	$ 0	$ 0
Weighted average interest rate at end of period	0.00%	0.00%
Amount available at end of period	$ 249,269,000	$ 249,269,000
NJNG | Letter of Credit
Line of Credit Facility [Line Items]
Letters of credit outstanding, amount	731,000	731,000
NJNG | Revolving Credit Facility | Committed Credit Facilities Due May 2019
Line of Credit Facility [Line Items]
Bank revolving credit facilities	$ 250,000,000	$ 250,000,000

DEBT - SCHEDULE OF LONG TERM DE

DEBT - SCHEDULE OF LONG TERM DEBT (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2017	Mar. 31, 2016
Debt Instrument [Line Items]
Payments of long-term debt		$ 41,660	$ 5,807
Proceeds from sale-leaseback transaction		9,587	7,107
NJNG
Debt Instrument [Line Items]
Proceeds from sale-leaseback transaction		9,600	$ 7,100
Sale leaseback transaction, other payments required		$ 1,000
NJNG | First Mortgage
Debt Instrument [Line Items]
Payments of long-term debt	$ 35,800
Series II | NJNG | First Mortgage
Debt Instrument [Line Items]
Interest rate, stated percentage	4.50%	4.50%
Series KK | NJNG | First Mortgage
Debt Instrument [Line Items]
Interest rate, stated percentage	4.90%	4.90%

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($)	3 Months Ended			6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2017	Mar. 31, 2016
Components of net periodic cost
Discretionary contribution			$ 30,000,000	$ 0
Pension
Components of net periodic cost
Service cost	$ 2,087,000	$ 1,898,000		4,174,000	$ 3,796,000
Interest cost	2,442,000	2,835,000		4,885,000	5,671,000
Expected return on plan assets	(4,828,000)	(5,030,000)		(9,656,000)	(10,059,000)
Recognized actuarial loss	2,206,000	1,821,000		4,413,000	3,641,000
Prior service cost amortization	28,000	27,000		55,000	55,000
Net periodic benefit cost	1,935,000	1,551,000		3,871,000	3,104,000
OPEB
Components of net periodic cost
Service cost	1,095,000	1,131,000		2,190,000	2,261,000
Interest cost	1,387,000	1,564,000		2,773,000	3,128,000
Expected return on plan assets	(1,191,000)	(1,211,000)		(2,383,000)	(2,422,000)
Recognized actuarial loss	1,092,000	818,000		2,185,000	1,637,000
Prior service cost amortization	(91,000)	(91,000)		(182,000)	(182,000)
Net periodic benefit cost	$ 2,292,000	$ 2,211,000		$ 4,583,000	$ 4,422,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016
Operating Loss Carryforwards [Line Items]
Forecasted effective tax rate			15.60%	17.70%
Forecasted tax credits, net of deferred tax						$ 27,100
Excess tax benefits associated with vesting of share-based awards	$ 1,500	$ 1,700
Actual effective tax rate since tax effects of awards are treated as discrete item			14.80%	16.60%
Deferred tax assets, federal	27,500		$ 27,500			27,500
Deferred tax asset, state	20,200		20,200			18,200
ITC carryforward	111,000		$ 111,000			74,000
ITC carryforward, expiration period			20 years
Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	78,700		$ 78,700			78,700
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 344,700		$ 344,700			310,600
Valuation allowance						$ 262
Scenario, Forecast
Operating Loss Carryforwards [Line Items]
Forecasted tax credits, net of deferred tax					$ 34,600

COMMITMENTS AND CONTINGENT LI63

COMMITMENTS AND CONTINGENT LIABILITIES - SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2017USD ($)
Long-term Purchase Commitment [Line Items]
Current charges recoverable through BGSS	$ 40,000
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,017	322,623
2,018	320,435
2,019	233,395
2,020	148,081
2,021	114,335
Thereafter	763,226
NJRES
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,017	237,389
2,018	198,769
2,019	90,647
2,020	21,050
2,021	16,427
Thereafter	18,983
NJRES | Natural gas purchases
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,017	179,517
2,018	121,391
2,019	55,395
2,020	0
2,021	0
Thereafter	0
NJRES | Storage demand fees
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,017	19,525
2,018	28,869
2,019	16,195
2,020	12,913
2,021	8,822
Thereafter	8,580
NJRES | Pipeline demand fees
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,017	38,347
2,018	48,509
2,019	19,057
2,020	8,137
2,021	7,605
Thereafter	$ 10,403
NJRES | Minimum
Long-term Purchase Commitment [Line Items]
Storage and pipeline capacity, contract term	1 year
NJRES | Maximum
Long-term Purchase Commitment [Line Items]
Storage and pipeline capacity, contract term	10 years
NJNG
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,017	$ 85,234
2,018	121,666
2,019	142,748
2,020	127,031
2,021	97,908
Thereafter	744,243
NJNG | Natural gas purchases
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,017	45,266
2,018	11,250
2,019	0
2,020	0
2,021	0
Thereafter	0
NJNG | Storage demand fees
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,017	14,568
2,018	29,187
2,019	25,772
2,020	14,476
2,021	7,802
Thereafter	11,705
NJNG | Pipeline demand fees
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,017	25,400
2,018	81,229
2,019	116,976
2,020	112,555
2,021	90,106
Thereafter	$ 732,538

COMMITMENTS AND CONTINGENT LI64

COMMITMENTS AND CONTINGENT LIABILITIES - LEGAL PROCEEDINGS (Details)	Jun. 29, 2016USD ($)	Mar. 31, 2017USD ($)site	Sep. 30, 2016USD ($)
Site Contingency [Line Items]
Number of MGP sites | site		5
Recovery of expenditures, including carrying costs, rolling period approved by the BPU		7 years
Regulatory assets		$ 396,924,000	$ 441,294,000
Manufactured gas plant remediation		165,849,000	172,000,000
Minimum
Site Contingency [Line Items]
Litigation settlement, gross		143,900,000
Loss contingency, estimate of possible loss		600,000
Maximum
Site Contingency [Line Items]
Litigation settlement, gross		231,600,000
Loss contingency, estimate of possible loss		3,200,000
Expended, net of recoveries
Site Contingency [Line Items]
Regulatory assets		19,067,000	19,595,000
Liability for future expenditures
Site Contingency [Line Items]
Regulatory assets		$ 165,849,000	$ 172,000,000
SBC | December 2015 SBC Filing
Site Contingency [Line Items]
Public utilities, approved rate, amount	$ 9,400,000

BUSINESS SEGMENT AND OTHER OP65

BUSINESS SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT INCOME TO CONSOLIDATED (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Utility	$ 295,546	$ 242,536	$ 481,102	$ 394,142
Nonutility	438,000	331,657	793,472	624,309
Total operating revenues	733,546	574,193	1,274,574	1,018,451
Depreciation and amortization	20,328	17,744	39,588	34,226
Interest income	108	53	183	123
Interest expense, net of capitalized interest	11,436	7,369	22,051	14,146
Income tax provision (benefit)	23,932	17,815	25,950	24,537
Equity in earnings of affiliates	5,079	2,402	7,390	4,808
Net financial earnings	104,106	77,905	144,489	129,172
Capital expenditures	78,209	73,514	164,020	168,357
Investments in equity investees	5,902	3,102	$ 10,538	$ 5,948
Canada
Segment Reporting Information [Line Items]
Percentage to total operating revenues			1.50%	2.90%
Operating Segments
Segment Reporting Information [Line Items]
Total operating revenues	728,776	570,156	$ 1,259,080	$ 1,008,249
Depreciation and amortization	20,205	17,499	39,293	33,871
Interest income	609	510	1,146	914
Interest expense, net of capitalized interest	11,577	7,540	22,352	14,431
Income tax provision (benefit)	23,522	18,123	24,995	26,441
Net financial earnings	103,670	80,007	142,734	131,233
Capital expenditures	77,864	73,242	163,504	167,288
Operating Segments | Natural Gas Distribution
Segment Reporting Information [Line Items]
Utility	295,546	242,536	481,102	394,142
Depreciation and amortization	12,263	11,598	24,293	22,836
Interest income	97	60	172	128
Interest expense, net of capitalized interest	6,392	4,690	13,216	9,278
Income tax provision (benefit)	30,499	22,704	45,386	36,211
Net financial earnings	60,233	48,967	90,581	79,893
Capital expenditures	34,744	47,366	73,599	96,406
Operating Segments | Clean Energy Ventures
Segment Reporting Information [Line Items]
Nonutility	12,943	7,662	20,510	15,456
Depreciation and amortization	7,923	5,876	14,964	10,986
Interest expense, net of capitalized interest	4,055	2,552	7,379	4,605
Income tax provision (benefit)	(24,756)	(13,916)	(36,643)	(25,650)
Net financial earnings	22,743	11,807	25,585	19,459
Capital expenditures	43,120	25,876	89,905	70,882
Operating Segments | Energy Services
Segment Reporting Information [Line Items]
Nonutility	417,608	316,703	756,538	592,885
Depreciation and amortization	17	23	33	46
Interest income	0	0	0	72
Interest expense, net of capitalized interest	716	168	1,287	376
Income tax provision (benefit)	16,277	7,805	13,101	12,710
Net financial earnings	15,746	17,005	19,233	27,309
Operating Segments | Midstream
Segment Reporting Information [Line Items]
Depreciation and amortization	2	2	3	3
Interest income	512	450	974	714
Interest expense, net of capitalized interest	414	130	470	172
Income tax provision (benefit)	1,502	1,530	3,151	3,170
Equity in earnings of affiliates	6,119	3,508	9,450	7,053
Net financial earnings	4,948	2,228	7,335	4,572
Investments in equity investees	5,902	3,102	10,538	5,948
Intercompany
Segment Reporting Information [Line Items]
Nonutility	1,055	639	2,086	1,536
Intercompany | Energy Services
Segment Reporting Information [Line Items]
Nonutility	2,679	3,255	930	5,766
Home Services and Other
Segment Reporting Information [Line Items]
Nonutility	7,449	7,292	16,424	15,968
Depreciation and amortization	199	237	420	464
Interest income	132	123	253	160
Interest expense, net of capitalized interest	123	105	197	105
Income tax provision (benefit)	1,066	(1,474)	821	(2,604)
Net financial earnings	708	(2,022)	2,250	(1,763)
Capital expenditures	345	272	516	1,069
Eliminations
Segment Reporting Information [Line Items]
Nonutility	(3,734)	(3,894)	(3,016)	(7,302)
Depreciation and amortization	(76)	8	(125)	(109)
Interest income	(633)	(580)	(1,216)	(951)
Interest expense, net of capitalized interest	(264)	(276)	(498)	(390)
Income tax provision (benefit)	(656)	1,166	134	700
Equity in earnings of affiliates	(1,040)	(1,106)	(2,060)	(2,245)
Net financial earnings	$ (272)	$ (80)	$ (495)	$ (298)

BUSINESS SEGMENT AND OTHER OP66

BUSINESS SEGMENT AND OTHER OPERATIONS DATA - NET FINANCIAL EARNINGS (LOSS) RECONCILIATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting [Abstract]
Net financial earnings	$ 104,106	$ 77,905	$ 144,489	$ 129,172
Less:
Unrealized (gain) loss on derivative instruments and related transactions	(54,855)	3,170	(26,553)	2,035
Tax effect	19,679	(1,152)	9,922	(739)
Effects of economic hedging related to natural gas inventory	34,328	(1,054)	16,389	2,759
Tax effect	(12,334)	384	(6,130)	(1,001)
Net income to NFE tax adjustment	2,586	3,204	1,230	2,483
NET INCOME	$ 114,702	$ 73,353	$ 149,631	$ 123,635

BUSINESS SEGMENT AND OTHER OP67

BUSINESS SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 3,857,359	$ 3,718,570
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	3,822,676	3,696,982
Operating Segments | Natural Gas Distribution
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	2,572,576	2,517,401
Operating Segments | Energy Services
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	328,372	327,626
Operating Segments | Clean Energy Ventures
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	709,289	665,696
Operating Segments | Midstream
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	212,439	186,259
Home Services and Other
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	126,255	109,487
Intercompany Assets
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ (91,572)	$ (87,899)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	Apr. 01, 2010USD ($)Bcf	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2017USD ($)Bcf / dcontract	Mar. 31, 2016USD ($)	Sep. 30, 2016USD ($)
Related Party Transaction [Line Items]
Demand fees expense recognized pertaining to related party agreement		$ 2,072	$ 2,077	$ 4,183	$ 4,151
Demand fees payable		1,156		$ 1,156		$ 1,150
Number of asset management agreements | contract				3
NJNG to NJRES Affilate
Related Party Transaction [Line Items]
Asset management agreement, period	10 years
NJNG to Steckman RIdge Affiliate
Related Party Transaction [Line Items]
Natural gas sold at cost under asset management agreement (in Bcf) | Bcf	3
Approximate annual demand fees under agreement	$ 9,300
Demand fees expense recognized pertaining to related party agreement		1,383	1,385	$ 2,793	2,774
Demand fees payable		780		780		775
NJRES to Steckman Ridge Affiliate
Related Party Transaction [Line Items]
Demand fees expense recognized pertaining to related party agreement		689	$ 692	1,390	$ 1,377
Demand fees payable		$ 376		$ 376		$ 375
NJNG to PennEast Affiliate
Related Party Transaction [Line Items]
Transportation precedent agreement, period				15 years
Transportation capacity under precedent agreement from NJNG with PennEast (in bcf per day) | Bcf / d				0.18