New Jersey Resources (NJR) 10-Q 4 May 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2018	May 02, 2018
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		87,733,268
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
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, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
OPERATING REVENUES
Utility	$ 317,064	$ 295,546	$ 526,851	$ 481,102
Nonutility	701,979	438,000	1,197,497	793,472
Total operating revenues	1,019,043	733,546	1,724,348	1,274,574
OPERATING EXPENSES
Gas purchases - Utility	96,586	112,445	174,188	173,765
Gas purchases - Nonutility	621,223	367,328	1,066,307	705,260
Gas purchases - Related parties	2,087	2,072	4,236	4,183
Operation and maintenance	57,749	52,342	112,860	104,570
Regulatory rider expenses	19,604	19,893	31,373	32,494
Depreciation and amortization	22,460	20,328	44,314	39,588
Energy and other taxes	21,542	19,485	38,033	33,586
Total operating expenses	841,251	593,893	1,471,311	1,093,446
OPERATING INCOME	177,792	139,653	253,037	181,128
Other income, net	1,980	5,338	8,907	9,114
Interest expense, net of capitalized interest	11,798	11,436	23,703	22,051
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES	167,974	133,555	238,241	168,191
Income tax provision (benefit)	30,901	23,932	(19,267)	25,950
Equity in earnings of affiliates	3,193	5,079	6,457	7,390
NET INCOME	$ 140,266	$ 114,702	$ 263,965	$ 149,631
EARNINGS PER COMMON SHARE
Basic (usd per share)	$ 1.60	$ 1.33	$ 3.02	$ 1.74
Diluted (usd per share)	1.59	1.32	3.01	1.72
DIVIDENDS DECLARED PER COMMON SHARE (usd per share)	$ 0.2725000	$ 0.255	$ 0.545	$ 0.51
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic (in shares)	87,595	86,275	87,295	86,182
Diluted (in shares)	87,989	87,101	87,690	86,993

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 140,266	$ 114,702	$ 263,965	$ 149,631
Other comprehensive (loss) income, net of tax
Unrealized (loss) gain on available for sale securities, net of tax of $7,366, $(670), $8,217 and $(4,456), respectively	(20,401)	1,408	(22,691)	6,923
Reclassifications of losses to net income on available for sale securities, net of tax of $(3,036), $0, $(858) and $0, respectively	14,801	0	11,647	0
Adjustment to postemployment benefit obligation, net of tax of $(104), $(217), $(240) and $(434), respectively	272	318	512	635
Other comprehensive (loss) income	(5,328)	1,726	(10,532)	7,558
Comprehensive income	$ 134,938	$ 116,428	$ 253,433	$ 157,189

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Tax on unrealized (loss) gain on available for sale securities	$ 7,366	$ (670)	$ 8,217	$ (4,456)
Tax on reclassifications of available for sale securities	(3,036)	0	(858)	0
Tax on adjustment for postemployment benefit obligation	$ (104)	$ (217)	$ (240)	$ (434)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 263,965	$ 149,631
Adjustments to reconcile net income to cash flows from operating activities
Unrealized loss (gain) on derivative instruments	23,246	(26,553)
Gain on sale of available for sale securities, net	(5,332)	(7,287)
Gain on sale of business, net	(3,722)	0
Depreciation and amortization	44,314	39,588
Amortization of acquired wholesale energy contracts	17,911	0
Allowance for equity used during construction	(2,051)	(1,586)
Allowance for bad debt expense	994	519
Deferred income taxes	28,169	32,202
Deferred income tax benefit due to tax legislation	(58,532)	0
Manufactured gas plant remediation costs	(7,219)	(3,704)
Distributions received from equity investees, net of equity in earnings	(272)	(463)
Cost of removal - asset retirement obligations	(334)	(242)
Contributions to postemployment benefit plans	(1,648)	(1,884)
Tax benefit from stock-based compensation	2,841	1,231
Changes in:
Components of working capital	(27,122)	(31,231)
Other noncurrent assets	38,462	24,580
Other noncurrent liabilities	(1,199)	(2,997)
Cash flows from operating activities	312,471	171,804
Expenditures for:
Utility plant	(69,695)	(58,761)
Solar and wind equipment	(58,992)	(89,905)
Real estate properties and other	(3,159)	(516)
Cost of removal	(33,092)	(14,838)
Investments in equity investees	(11,177)	(10,538)
Distribution from equity investees in excess of equity in earnings	1,315	1,273
Cash paid related to acquisition	(10,000)	0
(Deposits to) withdrawal from restricted cash construction fund	(45)	1,337
Proceeds from sale of property, net of closing costs	0	9,443
Proceeds from sale of business, net of closing costs	9,399	0
Proceeds from sale of available for sale securities	6,616	6,639
Cash flows used in investing activities	(168,830)	(155,866)
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES
Payments of long-term debt	(5,346)	(41,660)
Net (payments of) proceeds from short-term debt	(115,100)	116,200
Proceeds from sale-leaseback transaction	7,820	9,587
Payments of common stock dividends	(47,459)	(43,898)
Proceeds from waiver discount issuance of common stock	22,690	0
Proceeds from issuance of common stock	9,876	9,731
Purchases of treasury stock	0	(6,355)
Tax withholding payments related to net settled stock compensation	(13,420)	(4,354)
Cash flows (used in) from financing activities	(140,939)	39,251
Change in cash and cash equivalents	2,702	55,189
Cash and cash equivalents at beginning of period	2,226	37,546
Cash and cash equivalents at end of period	4,928	92,735
CHANGES IN COMPONENTS OF WORKING CAPITAL
Receivables	(151,220)	(137,408)
Inventories	128,895	62,321
Recovery of gas costs	20,260	(9,616)
Gas purchases payable	18,928	21,159
Prepaid and accrued taxes	15,879	25,829
Accounts payable and other	(17,541)	(10,027)
Restricted broker margin accounts	(29,164)	28,432
Customers' credit balances and deposits	(8,696)	(12,765)
Other current assets	(4,463)	844
Components of working capital	(27,122)	(31,231)
Cash paid (received) for:
Interest (net of amounts capitalized)	23,765	21,578
Income taxes	2,985	(6,431)
Accrued capital expenditures	14,485	23,284
Inception gain on natural gas swap contract recognized as non-cash proceeds from sale of business	$ 14,579	$ 0

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
PROPERTY, PLANT AND EQUIPMENT
Utility plant, at cost	$ 2,295,000	$ 2,241,324
Construction work in progress	134,816	119,318
Solar and wind equipment, real estate properties and other, at cost	609,894	843,142
Construction work in progress	52,069	7,286
Total property, plant and equipment	3,091,779	3,211,070
Accumulated depreciation and amortization, utility plant	(507,536)	(489,122)
Accumulated depreciation and amortization, solar and wind equipment, real estate properties and other	(108,730)	(112,207)
Property, plant and equipment, net	2,475,513	2,609,741
CURRENT ASSETS
Cash and cash equivalents	4,928	2,226
Customer accounts receivable
Billed	298,824	196,467
Unbilled revenues	55,405	7,202
Allowance for doubtful accounts	(5,515)	(5,181)
Regulatory assets	15,051	50,791
Gas in storage, at average cost	71,169	202,063
Materials and supplies, at average cost	13,943	11,944
Prepaid and accrued taxes	14,395	24,764
Derivatives, at fair value	26,897	30,081
Restricted broker margin accounts	59,970	25,827
Assets held for sale	224,898	0
Other	34,660	33,260
Total current assets	814,625	579,444
NONCURRENT ASSETS
Investments in equity method investees	183,884	172,585
Regulatory assets	352,152	375,919
Derivatives, at fair value	13,616	9,164
Available for sale securities	28,228	65,752
Intangible assets, net	23,173	41,084
Other noncurrent assets	69,549	74,818
Total noncurrent assets	670,602	739,322
Total assets	3,960,740	3,928,507
CAPITALIZATION
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding March 31, 2017 — 87,656,004; September 30, 2017 — 86,555,507	225,173	222,258
Premium on common stock	256,158	219,696
Accumulated other comprehensive loss, net of tax	(13,788)	(3,256)
Treasury stock at cost and other; shares March 31, 2017 — 2,355,338; September 30, 2017 — 2,347,380	(84,401)	(70,039)
Retained earnings	1,084,232	867,984
Common stock equity	1,467,374	1,236,643
Long-term debt	997,925	997,080
Total capitalization	2,465,299	2,233,723
CURRENT LIABILITIES
Current maturities of long-term debt	165,905	165,375
Short-term debt	150,900	266,000
Gas purchases payable	179,044	160,115
Gas purchases payable to related parties	1,151	1,152
Accounts payable and other	63,867	96,878
Dividends payable	23,886	23,586
Accrued taxes	7,541	2,031
Regulatory liabilities	29,169	78
New Jersey clean energy program	5,690	14,202
Derivatives, at fair value	44,792	46,544
Disposal Group, Including Discontinued Operation, Liabilities, Current	4,262	0
Customers' credit balances and deposits	18,261	26,957
Total current liabilities	694,468	802,918
NONCURRENT LIABILITIES
Deferred income taxes	237,838	514,708
Deferred investment tax credits	4,136	4,297
Deferred gain	9,497	27,728
Derivatives, at fair value	23,603	11,330
Manufactured gas plant remediation	142,474	149,000
Postemployment employee benefit liability	129,546	128,888
Regulatory liabilities	217,510	14,507
Asset retirement obligation	27,902	31,420
Other	8,467	9,988
Total noncurrent liabilities	800,973	891,866
Commitments and contingent liabilities (Note 12)
Total capitalization and liabilities	$ 3,960,740	$ 3,928,507

CONDENSED CONSOLIDATED BALANCE7

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2018	Sep. 30, 2017
Statement of Financial Position [Abstract]
Common stock, par value (usd per share)	$ 2.50	$ 2.50
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares outstanding (in shares)	87,656,004	86,555,507
Treasury stock at cost and other, shares (in shares)	2,355,338	2,347,380

NATURE OF THE BUSINESS

NATURE OF THE BUSINESS	6 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF THE BUSINESS	1. NATURE OF THE BUSINESS New Jersey Resources Corporation provides regulated gas distribution services and operates certain unregulated businesses primarily through the following subsidiaries: New Jersey Natural Gas Company provides natural gas utility service to approximately 536,900 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. Energy Services 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. From July 2017 through February 2018, N JR Retail Services Company provided retail natural gas supply and transportation services to commercial and industrial customers in Delaware, Maryland, Pennsylvania and New Jersey, as part of the Energy Services segment. NJR Retail Services was sold to an unrelated third party on February 28, 2018 , see Note 16. Disposition for more details; NJR Midstream Holdings Corporation, which comprises the Midstream segment, invests in energy-related ventures through its subsidiaries, NJR Steckman Ridge Storage Company, which holds the Company's 50 percent combined ownership interest in Steckman Ridge, located in Pennsylvania, 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. See Note 6. Investments in Equity Investees for more information; 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 Home Services Company and Commercial Realty & Resources Corporation are included in Home Services and Other operations.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared by NJR in accordance with the rules and regulations of the SEC and GAAP. The September 30, 2017 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 2017 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, 2018 . Intercompany transactions and accounts have been eliminated. 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 totaled $18.7 million and $31.9 million during the three and six months ended March 31, 2018 , respectively, and $16.9 million and $28.1 million during the three and six months ended March 31, 2017 , respectively. Effective January 1, 2017, the New Jersey sales tax rate decreased from 7 percent to 6.875 percent . Effective January 1, 2018, the New Jersey sales tax rate decreased again to 6.625 percent . Gas in Storage The following table summarizes gas in storage, at average cost by segment as of: March 31, September 30, ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf Energy Services $ 51,915 18.6 $ 122,884 53.9 Natural Gas Distribution 19,254 4.7 79,179 21.8 Total $ 71,169 23.3 $ 202,063 75.7 Available for Sale Securities Available for sale securities are carried at fair value on the Unaudited Condensed Consolidated Balance Sheets. Total unrealized gains and losses associated are included as a part of accumulated other comprehensive income, a component of common stock equity. Reclassifications of realized gains or losses out of other comprehensive income into earnings are recorded in other income, net on the Unaudited Condensed Consolidated Statements of Operations based on average cost. Management evaluates its equity securities for other-than-temporary impairment on a quarterly basis, and more frequently when economic, market or other concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than cost; the financial condition and near term prospects of the issuer; whether the market decline was affected by macroeconomic conditions, changes in tax laws, regulations or other governmental policies; and whether the Company has the intent to sell the security or more likely than not will be required to sell the security before the recovery of its amortized cost basis. If the decline in value of our equity securities is determined to be other-than-temporary, an impairment is recognized through earnings within other income, net on the Unaudited Condensed Consolidated Statements of Operations. During the six months ended March 31, 2018 , NJR sold shares of its available for sale securities and received proceeds of approximately $6.6 million and recognized a pre-tax gain of $5.3 million . There were no sales of available for sale securities during the three months ended March 31, 2018 . During the three and six months ended March 31, 2017 , NJR received proceeds of approximately $3.4 million and $6.6 million , and realized a pre-tax gain of $2.8 million and $5.4 million , respectively. In September 2015 , the Company exchanged its ownership interest in Iroquois with DM for approximately 1.84 million DM Common Units. The investment in DM is included as part of the Company's equity investments in the Midstream segment. The exchange of ownership interests in Iroquois for DM was considered a contribution of real estate into another real estate venture. As a result, the Company recorded a deferred gain of $24.6 million on the Unaudited Condensed Consolidated Balance Sheets, based on the difference between the carrying amount of its investment in Iroquois and the fair value of the DM Common Units on the closing date of the transaction. The deferred gain will be recognized in other income, net on the Unaudited Condensed Consolidated Statements of Operations upon completion of the earnings process, typically through the sale of the related securities, or other earnings event. On March 15, 2018, the FERC issued a policy revision indicating that it no longer will allow interstate natural gas and oil pipelines held by a Master Limited Partnership to recover an income tax allowance in cost-of-service rates. The policy revision had a material negative impact on the value of NJR's investment in DM Common Units. As a result, the Company evaluated the decrease in fair value of its available-for-sale securities and determined that the decline was other-than-temporary. Accordingly, the Company recognized an other-than-temporary impairment of $17.8 million , $14.8 million , net of tax. Since the deferred gain was established based upon the difference in the fair value of the DM Common Units and the carrying value of the ownership of Iroquois, concurrent with the impairment charge to earnings, the Company reduced the amount of the deferred gain available upon the completion of the earnings process for the DM Common Units. This reduction of the deferred gain of $17.8 million was also recorded in other income, net on the Unaudited Condensed Consolidated Statements of Operations. As of March 31, 2018 , the Company's available for sale securities had a fair value of $28.2 million and the remaining deferred gain associated with the Company’s investment in DM Common Units totaled $6.8 million . As of September 30, 2017 , the Company's available for sale securities had a fair value of $65.8 million and total unrealized gains were $12.8 million , $7.7 million , net of deferred income tax expense. Customer Accounts Receivable Customer accounts receivable include outstanding billings from the following subsidiaries as of: (Thousands) March 31, September 30, Energy Services $ 179,218 60 % $ 150,322 77 % Natural Gas Distribution (1) 112,884 38 37,432 19 Clean Energy Ventures 2,834 1 2,655 1 NJRHS and other 3,888 1 6,058 3 Total $ 298,824 100 % $ 196,467 100 % (1) Does not include unbilled revenues of $55.4 million and $7.2 million as of March 31, 2018 and September 30, 2017 , respectively. Loans Receivable NJNG currently provides loans, with terms ranging from three 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 $9.9 million and $8.9 million in other current assets and $40.3 million and $40.4 million in other noncurrent assets as of March 31, 2018 and September 30, 2017 , 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, 2018 and September 30, 2017 , there was no allowance for doubtful accounts established for the SAVEGREEN loans. Assets Held for Sale On March 2, 2018 , Clean Energy Ventures entered into an agreement with NorthWestern Energy to sell its membership interest in its 9.7 MW wind farm in Two Dot, Montana for a total purchase price of $18.5 million and submitted a joint filing for authorization with FERC. The transaction is expected to close following FERC approval. The Company expects the transaction to generate a pre-tax gain of approximately $1 million , which will be recognized as a reduction to O&M on the Unaudited Condensed Consolidated Statements of Operations. In March 2018, Clean Energy Ventures committed to a plan to pursue the sale of its remaining wind assets and it is probable that these sales will be completed within the next 12 months. Accordingly, the Company classified its wind assets and related liabilities as held for sale, as of March 31, 2018 , on the Unaudited Condensed Consolidated Balance Sheets. The wind assets classified as held for sale are measured at the lower of their carrying value or fair value less cost to sell. The major classes of assets and liabilities included within the disposal group as held for sale are as follows: (Thousands) March 31, 2018 Assets held for sale: Property, plant and equipment - wind equipment, at cost $ 244,972 Property, plant and equipment - accumulated depreciation, wind equipment (21,561 ) Prepaid and accrued taxes 1,226 Other noncurrent assets 261 $ 224,898 Liabilities held for sale: Asset retirement obligation $ 4,262 Recently Adopted Updates to the Accounting Standards Codification 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 Company adopted the new guidance in the first quarter of fiscal 2018 and applied the new provisions on a prospective basis, which did not impact its financial position, results of operations or cash flows upon adoption. Tax In March 2018, the FASB issued ASU No. 2018-05, an amendment to ASC 840, Income Taxes , which provides relief to entities in their calculation of the effects of the Tax Act by allowing them to record provisional amounts for certain income tax effects to address circumstances in which an entity does not have the necessary information available, prepared or analyzed to complete the accounting. These provisional amounts are subject to change as information and assumptions are updated throughout the measurement period, which may not extend beyond one year from the enactment date. The new guidance was effective immediately upon issuance and thus, the Company adopted the new guidance in the second quarter of fiscal 2018 and applied the new provision on a prospective basis. 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 not be early adopted and will be effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year. The Company has concluded that its tariff based sales of natural gas will be within the scope of the new guidance. However, it does not anticipate any modification to the pattern of revenue recognition from such sales. The Company has also evaluated its renewable asset PPA arrangements and does not anticipate any modification to the pattern of revenue recognition of the related electricity, capacity and REC sales. Revenues from RECs sold as part of a bundled arrangement will be recognized in the same period as the related generation, consistent with current practice. Based on the review of customer contracts to date, the Company 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 implementation of ASC 606 and currently expects to transition to the new guidance using the modified retrospective approach. Financial Instruments In January 2016, the FASB issued ASU No. 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. Upon adoption, any amounts recorded in accumulated other comprehensive income related to available for sale securities will be reclassified to the opening balance of retained earnings in the year of adoption. 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 No. 2016-13, an amendment to ASC 326, Financial Instruments - Credit Losses, which changes the impairment model for certain financial assets that have a contractual right to receive cash, including trade and loan receivables. The new model requires recognition based upon an estimation of expected credit losses rather than recognition of losses when it is probable that they have been incurred. An entity will apply the amendment through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The guidance is effective for the Company’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 No. 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. In January 2018, the FASB issued ASU No. 2018-01, a further amendment to ASC 842, Leases, which was introduced by ASC No. 2016-02, as discussed above. This update provides an optional practical expedient that allows companies to not evaluate existing or expired land easements that were not previously accounted for under Topic 840 as leases. The Company expects to elect this practical expedient upon 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 continues to evaluate the provisions of ASC 842 and is actively monitoring the outcome of the exposure draft issued by the FASB that would provide an optional transition method to ASC 842. At this time, the Company does not plan to early adopt the new guidance and expects to elect the practical expedient package in the new guidance during transition. While the Company is currently evaluating the full impact of the standard, it expects to recognize additional assets and liabilities arising from current operating leases to its financial position 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 does not expect any material impacts to its 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 the accounting applied 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 has determined that to the extent a deferred gain exists related to nonfinancial assets on the balance sheet upon adoption, it would be recognized under the new accounting guidance as a cumulative effect adjustment to the opening balance of retained earnings for the first quarter of fiscal 2019. 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. Stock Compensation In May 2017, the FASB issued ASU No. 2017-09, an amendment to ASC 718, Compensation - Stock Compensation , which clarifies the accounting for changes to the terms or conditions of share-based payments. 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 amendments will be applied prospectively to awards modified on or after the adoption date. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations and cash flows upon adoption. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, an amendment to ASC 815, Derivatives and Hedging , which is intended to make targeted improvements to the accounting for hedging activities by better aligning an entity’s risk management activities and financial reporting for hedging relationships. These amendments modify the accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Additionally, the amendments are intended to simplify the application of the hedge accounting guidance and provide relief to companies by easing certain hedge documentation requirements. The guidance is effective for the Company’s fiscal year ending September 30, 2020, and interim periods within that year, with early adoption permitted. Upon adoption, the transition requirements and elections will be applied to hedging relationships existing on the date of adoption. The Company does not currently apply hedge accounting to any of its risk management activities and thus does not expect the amendments to have any impact on its financial position, results of operations and cash flows upon adoption. Reporting Comprehensive Income In February 2018, the FASB issued ASU No. 2018-02, an amendment to ASC 220, Income Statement - Reporting Comprehensive Income , which allows for the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects of the Tax Act. The guidance is effective for the Company’s fiscal year ending September 30, 2020, and interim periods within that year, with early adoption permitted. Upon adoption, the amendments will be applied either in the period of adoption, or retrospectively to each period in which the effects of the Tax Act are recognized. The Company is currently evaluating the amendments to understand the impact on its financial position and results of operations upon adoption.

REGULATION

REGULATION	6 Months Ended
	Mar. 31, 2018
Regulated Operations [Abstract]
REGULATION	3. REGULATION NJNG is subject to cost-based regulation, therefore, it is permitted to recover authorized operating expenses and earn a reasonable return on its utility capital investments based on the BPU's approval. The impact of the ratemaking process and decisions authorized by the BPU allows NJNG to capitalize or defer certain costs that are expected to be recovered from its customers as regulatory assets and to recognize certain obligations representing amounts that are probable future expenditures as regulatory liabilities in accordance with accounting guidance applicable to regulated operations. NJNG's recovery of costs is facilitated through its base rates, BGSS and other regulatory tariff riders. NJNG is required to make annual filings to the BPU for review of its BGSS, CIP and various other programs and related rates. Annual rate changes are typically requested to be effective at the beginning of the following fiscal year. All rate and program changes are subject to proper notification and BPU review and approval. In addition, NJNG is also permitted to implement certain BGSS rate changes on an interim basis with proper notification to the BPU. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets are comprised of the following: (Thousands) March 31, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 5,690 $ 14,202 Underrecovered gas costs 7,549 9,910 Derivatives at fair value, net 1,812 9,010 Conservation Incentive Program — 17,669 Total current regulatory assets $ 15,051 $ 50,791 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 28,868 $ 28,547 Liability for future expenditures 142,474 149,000 Deferred income taxes 16,773 21,795 SAVEGREEN 7,549 16,302 Postemployment and other benefit costs 135,930 141,433 Deferred storm damage costs 11,944 13,030 Other noncurrent regulatory assets 8,614 5,812 Total noncurrent regulatory assets $ 352,152 $ 375,919 Regulatory liability-current Conservation Incentive Program $ 229 $ — Customer refund payable (1) 28,878 — Derivatives at fair value, net 62 78 Total current regulatory liabilities $ 29,169 $ 78 Regulatory liabilities-noncurrent Deferred income taxes (2) $ 210,500 $ — Cost of removal obligation — 7,902 Derivatives at fair value, net — 146 New Jersey Clean Energy Program 5,914 5,795 Other noncurrent regulatory liabilities 1,096 664 Total noncurrent regulatory liabilities $ 217,510 $ 14,507 (1) Includes the current portion of an adjustment related to the re-measurement of NJNG's net deferred tax liabilities to reflect the change in federal tax rates enacted in the Tax Act, which is net of sales tax collected from customers . For a more detailed discussion of the Tax Act, s ee Note 11. Income Taxes . (2) Includes the long-term portion of an adjustment related to the Tax Act. Regulatory filings and/or actions that occurred during the current fiscal year include the following: • On October 20, 2017 , the BPU approved NJNG's filing to decrease its EE recovery rate, which will result in an annual decrease of $3.9 million , effective November 1, 2017 . • On November 17, 2017 , NJNG filed its annual SBC application requesting to recover remediation expenses incurred through June 30, 2017, a reduction in the RAC, which will result in an annual decrease of $2.4 million and to increase the NJCEP factor, which will result in an annual increase of $1.8 million , effective April 1, 2018 . • On December 22, 2017 , the Tax Act was signed into law, which resulted in a reduction in the federal corporate tax rate. As a result, NJNG recorded a regulatory liability of $228.4 million , which includes $164.3 million for the revaluation of its deferred income taxes and $64.1 million for the accounting of the income tax effects on the revaluation. The revaluation is based on certain assumptions and estimations NJNG made with respect to its deferred taxes, as well as the effects from the Tax Act, and as such are subject to change if and when assumptions are updated. See Note 11. Income Taxes for a more detailed discussion on the Tax Act. On January 31, 2018, the BPU issued an Order which directed New Jersey utilities to submit filings to the BPU by March 2, 2018, to propose the prospective change in rates as a result of the Tax Act to be effective April 1, 2018, the method to return to customers the rate difference from January 1, 2018, through March 31, 2018, and an outline of the method by which the excess deferred taxes would be returned to customers. The excess deferred taxes are primarily related to timing differences associated with utility plant depreciation and are subject to IRS normalization rules, which require amortization over the remaining life of the utility plant. On March 1, 2018 , NJNG submitted its required filing to the BPU proposing a $19.7 million base rate reduction and customer refunds of approximately $31 million , which is inclusive of the State of New Jersey sales tax. The one-time refunds have been proposed to include interest at the Company’s short-term debt rate as specified in the Company’s last base rate case and these refunds are anticipated to be applied to customer accounts by late May 2018 . On March 26, 2018 , the BPU approved, on an interim basis, the $19.7 million rate reduction, effective April 1, 2018 . A BPU decision on the refunds is anticipated during the third quarter of fiscal 2018. • On March 26, 2018 , the BPU approved NJNG's petition on a final basis to maintain NJNG's BGSS rate for residential and small commercial customers, increase to its balancing charge rate, which resulted in a $3.7 million increase to the annual revenues credited to BGSS and a decrease to its CIP rates, which resulted in a $16.2 million annual recovery decrease that was effective October 1, 2017 . • On March 28, 2018 , NJNG filed a petition with the BPU requesting continuation of existing SAVEGREEN programs and the addition of new programs through December 2024 , with investments of approximately $341 million . • On March 29, 2018 , NJNG filed its annual petition with the BPU requesting a base rate increase in the amount of $6.9 million for the recovery of NJ RISE and SAFE II capital investment costs related to the 12-months ending June 30, 2018 , based on estimates. The filing will be updated to reflect actual results in July 2018, with changes to base rates anticipated to be effective October 1, 2018 .

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS	4. DERIVATIVE INSTRUMENTS The Company is subject primarily to commodity price risk due to fluctuations in the market price of natural gas, SRECs and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs and electricity. In addition, the Company is exposed to foreign currency and interest rate risk, The Company may utilize foreign currency derivatives to hedge Canadian dollar denominated gas purchases and/or sales and interest rate derivatives to reduce exposure to fluctuations in interest rates. All of these types of contracts are accounted for as derivatives. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets. For a more detailed discussion of the Company's fair value measurement policies and level disclosures associated with NJR's derivative instruments, see Note 5. Fair Value . Energy Services Energy Services chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS. The changes in the fair value of these derivatives are recorded as a component of gas purchases or operating revenues, as appropriate for Energy Services, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For Energy Services at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of gas purchases and realized gains and losses on all physical derivatives follow the presentation of the related unrealized gains and losses as a component of either gas purchases or operating revenues. Energy Services also enters into natural gas transactions in Canada and, consequently, is exposed to fluctuations in the value of Canadian currency relative to the U.S. dollar. Energy Services may utilize foreign currency derivatives to lock in the exchange 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. As a result of Energy Services entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets, with changes in value recognized in current period earnings. Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. 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, Energy Services 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 appropriate, the Company can and may elect normal accounting for certain contracts. Natural Gas Distribution Changes in fair value of NJNG's financial commodity derivatives are recorded as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. Effective for contracts executed on or after January 1, 2016, NJNG no longer elects NPNS accounting treatment on all physical forward commodity contracts. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect certain contracts to be normal. Because NJNG recovers these amounts through future BGSS rates as increases or decreases to the cost of natural gas in NJNG’s tariff for gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. In June 2015, NJNG entered into a BPU-approved treasury lock transaction to fix a benchmark treasury rate of 3.26 percent associated with a $125 million debt issuance expected in May 2018. This debt issuance coincides with the maturity of NJNG's existing $125 million , 5.6 percent notes due May 15, 2018 . This treasury lock was settled on March 13, 2018, resulting in a $2.6 million loss, which is recorded as a component of regulatory assets on the Unaudited Condensed Consolidated Balance Sheets and will be amortized in earnings over the life of the May 2018 debt issuance. Home Services and Other On January 26, 2018 , NJR entered into a variable-for-fixed interest rate swap on NJR's existing $100 million variable rate term loan, which fixed the variable rate at 2.84 percent . The swap will terminate on August 16, 2019 , which coincides with the maturity of the debt. The change in the fair value of the interest rate swap is recorded as interest expense on the Unaudited Condensed Consolidated Statements of Operations. 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, 2018 September 30, 2017 (Thousands) Balance Sheet Location Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Natural Gas Distribution: Physical commodity contracts Derivatives - current $ 88 $ 26 $ 151 $ 72 Financial commodity contracts Derivatives - current 375 134 — 1,149 Interest rate contracts Derivatives - current — — — 8,467 Energy Services: Physical commodity contracts Derivatives - current 6,036 16,274 14,588 16,589 Derivatives - noncurrent 1,249 14,963 7,127 8,710 Financial commodity contracts Derivatives - current 20,398 28,247 15,302 20,267 Derivatives - noncurrent 12,232 8,537 2,033 2,620 Foreign currency contracts Derivatives - current — 97 40 — Derivatives - noncurrent — 103 4 — Home Services and Other: Interest rate contracts Derivatives - current — 14 — — Derivatives - noncurrent 135 — — — Total fair value of derivatives $ 40,513 $ 68,395 $ 39,245 $ 57,874 Offsetting of Derivatives The Company transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty. However, the Company’s policy is to present its derivative assets and liabilities on a gross basis at the contract level unit of account on the Unaudited Condensed Consolidated Balance Sheets. The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral, as well as the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented on Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of March 31, 2018: Derivative assets: Energy Services Physical commodity contracts $ 7,285 $ (1,903 ) $ (200 ) $ 5,182 Financial commodity contracts 32,630 (20,031 ) (608 ) 11,991 Total Energy Services $ 39,915 $ (21,934 ) $ (808 ) $ 17,173 Natural Gas Distribution Physical commodity contracts $ 88 $ (5 ) $ — $ 83 Financial commodity contracts 375 (134 ) — 241 Total Natural Gas Distribution $ 463 $ (139 ) $ — $ 324 Home Services and Other Interest rate contracts $ 135 $ (14 ) $ — $ 121 Total Home Services and Other $ 135 $ (14 ) $ — $ 121 Derivative liabilities: Energy Services Physical commodity contracts $ 31,237 $ (1,903 ) $ — $ 29,334 Financial commodity contracts 36,784 (19,492 ) (16,757 ) 535 Foreign currency contracts 200 — — 200 Total Energy Services $ 68,221 $ (21,395 ) $ (16,757 ) $ 30,069 Natural Gas Distribution Physical commodity contracts $ 26 $ (5 ) $ — $ 21 Financial commodity contracts 134 (134 ) — — Total Natural Gas Distribution $ 160 $ (139 ) $ — $ 21 Home Services and Other Interest rate contracts $ 14 $ (14 ) $ — $ — Total Home Services and Other $ 14 $ (14 ) $ — $ — As of September 30, 2017: Derivative assets: Energy Services Physical commodity contracts $ 21,715 $ (2,173 ) $ (200 ) $ 19,342 Financial commodity contracts 17,335 (14,121 ) — 3,214 Foreign currency contracts 44 — — 44 Total Energy Services $ 39,094 $ (16,294 ) $ (200 ) $ 22,600 Natural Gas Distribution Physical commodity contracts $ 151 $ (20 ) $ — $ 131 Total Natural Gas Distribution $ 151 $ (20 ) $ — $ 131 Derivative liabilities: Energy Services Physical commodity contracts $ 25,299 $ (2,173 ) $ — $ 23,126 Financial commodity contracts 22,887 (14,121 ) (8,766 ) — Total Energy Services $ 48,186 $ (16,294 ) $ (8,766 ) $ 23,126 Natural Gas Distribution Physical commodity contracts $ 72 $ (20 ) $ — $ 52 Financial commodity contracts 1,149 — (1,149 ) — Interest rate contracts 8,467 — — 8,467 Total Natural Gas Distribution $ 9,688 $ (20 ) $ (1,149 ) $ 8,519 (1) Derivative assets and liabilities are presented on a gross basis on the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3) Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties. (4) Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20. Energy Services utilizes financial derivatives to economically hedge the gross margin associated with the purchase of physical gas to be used for storage injection and its subsequent sale at a later date. The gains or (losses) on the financial transactions that are economic hedges of the cost of the purchased gas are recognized prior to the gains or (losses) on the physical transaction, which are recognized in earnings when the natural gas is delivered. Therefore, mismatches between the timing of the recognition of realized gains or (losses) on the financial derivative instruments and gains or (losses) associated with the actual sale of the natural gas that is being economically hedged along with fair value changes in derivative instruments creates volatility in the results of Energy Services, although the Company's intended economic results relating to the entire transaction are unaffected. The following table 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: 2018 2017 2018 2017 Energy Services: Physical commodity contracts Operating revenues $ (11,952 ) $ 4,982 $ (10,742 ) $ 6,725 Physical commodity contracts Gas purchases (44,646 ) (3,982 ) (67,343 ) (12,781 ) Financial commodity contracts Gas purchases 13,767 38,121 (12,230 ) 7,510 Foreign currency contracts Gas purchases (215 ) 53 (263 ) (33 ) Home Services and Other: Interest rate contracts Interest expense 121 — 121 — Total unrealized and realized gains (losses) $ (42,925 ) $ 39,174 $ (90,457 ) $ 1,421 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 (losses) gains associated with NJNG's derivative instruments as of: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2018 2017 2018 2017 Natural Gas Distribution: Physical commodity contracts $ (12,879 ) $ (3,780 ) $ (15,855 ) $ (2,730 ) Financial commodity contracts 7,232 (418 ) (1,576 ) 10,760 Interest rate contracts 12,534 (1,690 ) 8,467 18,681 Total unrealized and realized (losses) gains $ 6,887 $ (5,888 ) $ (8,964 ) $ 26,711 NJNG and Energy Services had the following outstanding long (short) derivatives as of: Volume (Bcf) March 31, September 30, Natural Gas Distribution Futures 24.9 18.2 Physical 33.2 32.1 Energy Services Futures (13.0 ) (16.4 ) Physical 36.5 (13.1 ) Not included in the previous table are Energy Services' gross notional amount of foreign currency transactions of approximately $8.8 million , NJNG’s treasury lock agreement and NJR's interest rate swap as previously discussed and 567,000 SRECs at Energy Services that are open as of March 31, 2018 . Broker Margin Futures exchanges have contract specific margin requirements that require the posting of cash or cash equivalents relating to traded contracts. Margin requirements consist of initial margin that is posted upon the initiation of a position, maintenance margin that is usually expressed as a percent of initial margin, and variation margin that fluctuates based on the daily marked-to-market relative to maintenance margin requirements. The Company maintains separate broker margin accounts for the Natural Gas Distribution and Energy Services segments. The balances are as follows: (Thousands) Balance Sheet Location March 31, September 30, Natural Gas Distribution Broker margin - Current assets $ 3,612 $ 2,661 Energy Services Broker margin - Current assets $ 56,358 $ 23,166 Wholesale Credit Risk NJNG, Energy Services and Clean Energy Ventures 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, 2018 . The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and Clean Energy Ventures residential solar installations. (Thousands) Gross Credit Exposure Investment grade $ 175,076 Noninvestment grade 21,228 Internally rated investment grade 20,818 Internally rated noninvestment grade 47,079 Total $ 264,201 Conversely, certain of NJNG's and Energy Services' derivative instruments are linked to agreements containing provisions that would require cash collateral payments from the Company if certain events occur. These provisions vary based upon the terms in individual counterparty agreements and can result in cash payments if NJNG's credit rating were to fall below its current level. 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, 2018 and September 30, 2017 , was $1 million and $8.7 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, 2018 and September 30, 2017 , the Company would have been required to post an additional $1 million and $8.6 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, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE	5. 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, debt issuance costs and solar asset financing obligations, is as follows: (Thousands) March 31, September 30, Carrying value (1) (2) (3) $ 1,097,045 $ 1,097,045 Fair market value $ 1,084,268 $ 1,107,676 (1) Excludes capital leases of $41.8 million and $39.7 million as of March 31, 2018 and September 30, 2017 , respectively. (2) Excludes NJNG's debt issuance costs of $6.1 million and $6.3 million as of March 31, 2018 and September 30, 2017 , respectively. (3) Excludes NJR's debt issuance costs of $768,000 and $770,000 as of March 31, 2018 and September 30, 2017 , 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, 2018 , 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, 2018: Assets: Physical commodity contracts $ — $ 7,373 $ — $ 7,373 Financial commodity contracts 20,443 12,562 — 33,005 Interest rate contracts — 135 — 135 Available for sale equity securities - energy industry 28,228 — — 28,228 Other (1) 1,214 — — 1,214 Total assets at fair value $ 49,885 $ 20,070 $ — $ 69,955 Liabilities: Physical commodity contracts $ — $ 31,263 $ — $ 31,263 Financial commodity contracts 36,353 565 — 36,918 Financial commodity contracts - foreign exchange — 200 — 200 Interest rate contracts — 14 — 14 Total liabilities at fair value $ 36,353 $ 32,042 $ — $ 68,395 As of September 30, 2017: Assets: Physical commodity contracts $ — $ 21,866 $ — $ 21,866 Financial commodity contracts 17,335 17,335 Financial commodity contracts - foreign exchange — 44 — 44 Available for sale equity securities - energy industry 65,752 — — 65,752 Other (1) 1,202 — — 1,202 Total assets at fair value $ 84,289 $ 21,910 $ — $ 106,199 Liabilities: Physical commodity contracts $ — $ 25,371 $ — $ 25,371 Financial commodity contracts 24,036 — — 24,036 Interest rate contracts — 8,467 — 8,467 Total liabilities at fair value $ 24,036 $ 33,838 $ — $ 57,874 (1) Includes money market funds of $11,000 and $112,000 as of March 31, 2018 and September 30, 2017 , respectively. Assets measured at fair value on a non-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, 2018: Assets Impairment of available for sale securities (1) $ 17,838 $ — $ — $ 17,838 Total assets at fair value $ 17,838 $ — $ — $ 17,838 (1) See Note 2. Summary of Significant Accounting Policies for more information regarding the impairment.

INVESTMENTS IN EQUITY METHOD IN

INVESTMENTS IN EQUITY METHOD INVESTEES	6 Months Ended
	Mar. 31, 2018
Investments, All Other Investments [Abstract]
INVESTMENTS IN EQUITY METHOD INVESTEES	6. INVESTMENTS IN EQUITY INVESTEES NJR's investments in equity method investees include the following as of: (Thousands) March 31, September 30, Steckman Ridge (1) $ 118,875 $ 120,262 PennEast 65,009 52,323 Total $ 183,884 $ 172,585 (1) Includes loans with a total outstanding principal balance of $70.4 million for both March 31, 2018 and September 30, 2017 . The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2023. The Company, through its subsidiary NJR Pipeline Company, is an investor in PennEast, which is expected to construct and operate a 120 -mile natural gas pipeline that will extend from northeast Pennsylvania to western New Jersey. PennEast has advised that it currently expects the pipeline to be completed and operational in 2019 , however the project could be delayed beyond 2019 due to factors that are beyond PennEast’s ability to control or estimate precisely, including potential delays in obtaining (or the inability to obtain) governmental and regulatory approvals and land-use rights, and unforeseen construction delays. NJNG and Energy Services 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, 2018
Earnings Per Share [Abstract]
EARNINGS PER SHARE	7. 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) 2018 2017 2018 2017 Net income, as reported $ 140,266 $ 114,702 $ 263,965 $ 149,631 Basic earnings per share Weighted average shares of common stock outstanding-basic 87,595 86,275 87,295 86,182 Basic earnings per common share $1.60 $1.33 $3.02 $1.74 Diluted earnings per share Weighted average shares of common stock outstanding-basic 87,595 86,275 87,295 86,182 Incremental shares (1) 394 826 395 811 Weighted average shares of common stock outstanding-diluted 87,989 87,101 87,690 86,993 Diluted earnings per common share (2) $1.59 $1.32 $3.01 $1.72 (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, 2018 and 2017 .

COMMON STOCK EQUITY

COMMON STOCK EQUITY	6 Months Ended
	Mar. 31, 2018
Equity [Abstract]
COMMON STOCK EQUITY	8. COMMON STOCK EQUITY Changes in common stock equity during the six months ended March 31, 2018 , 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, 2017 86,556 $ 222,258 $ 219,696 $ (3,256 ) $ (70,039 ) $ 867,984 $ 1,236,643 Net income 263,965 263,965 Other comprehensive loss (10,532 ) (10,532 ) Common stock issued: Incentive plan 555 1,531 14,998 16,529 Dividend reinvestment plan (1) 242 172 9,583 9,755 Waiver discount 554 1,384 21,306 22,690 Cash dividend declared ($.545 per share) (47,717 ) (47,717 ) Treasury stock and other (251 ) (14 ) (23,945 ) (23,959 ) Balance at March 31, 2018 87,656 $ 225,173 $ 256,158 $ (13,788 ) $ (84,401 ) $ 1,084,232 $ 1,467,374 (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. NJR raised $9.9 million and $9.7 million of equity through the DRP, by issuing approximately 242,000 and 279,000 shares of treasury stock, during the six months ended March 31, 2018 and 2017 , respectively. During the six months ended March 31, 2018 , NJR raised approximately $22.7 million of equity by issuing approximately 554,000 new shares through the waiver discount feature of the DRP. NJR issued no new shares during the three months ended March 31, 2017 . 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, 2018 and 2017 : (Thousands) Available for Sale Securities Postemployment Benefit Obligation Total Balance at December 31, 2017 $ 5,600 $ (14,060 ) $ (8,460 ) Other comprehensive (loss) income, net of tax Other comprehensive (loss),before reclassifications, net of tax of $7,366, $0, $7,366 (20,401 ) — (20,401 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $(3,036), $(104), $(3,140) 14,801 272 (1) 15,073 Net current-period other comprehensive (loss) income, net of tax of $4,330, $(104), $4,226 (5,600 ) 272 (5,328 ) Balance at March 31, 2018 $ — $ (13,788 ) $ (13,788 ) Balance at December 31, 2016 $ 9,713 $ (19,036 ) $ (9,323 ) Other comprehensive income, net of tax Other comprehensive income, before reclassifications, net of tax of $(1,808), $0, $(1,808) 3,054 — 3,054 Amounts reclassified from accumulated other comprehensive (loss) income, net of tax of $1,138, $(217), $921 (1,646 ) 318 (1) (1,328 ) Net current-period other comprehensive income, net of tax of $(670), $(217), $(887) 1,408 318 1,726 Balance as of March 31, 2017 $ 11,121 $ (18,718 ) $ (7,597 ) 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, 2018 and 2017 : (Thousands) Available for Sale Securities Postemployment Benefit Obligation Total Balance at September 30, 2017 $ 11,044 $ (14,300 ) $ (3,256 ) Other comprehensive (loss) income, net of tax Other comprehensive (loss), before reclassifications, net of tax of $8,217, $0, $8,217 (22,691 ) — (22,691 ) Amounts reclassified from accumulated other comprehensive (loss) income, net of tax of $(858), $(240), $(1,098) 11,647 512 (1) 12,159 Net current-period other comprehensive (loss) income, net of tax of $7,359, $(240), $7,119 (11,044 ) 512 (10,532 ) Balance at March 31, 2018 $ — $ (13,788 ) $ (13,788 ) Balance as of 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, $(6,648) 10,096 — 10,096 Amounts reclassified from accumulated other comprehensive (loss) income, net of tax of $2,192, $(434), $1,758 (3,173 ) 635 (1) (2,538 ) Net current-period other comprehensive income, net of tax of $(4,456), $(434), $(4,890) 6,923 635 7,558 Balance as of March 31, 2017 $ 11,121 $ (18,718 ) $ (7,597 ) (1) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations.

DEBT

DEBT	6 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
DEBT	9. DEBT NJR and NJNG finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program, 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 $ 150,900 $ 255,000 Weighted average interest rate at end of period 2.60 % 2.14 % Amount available at end of period (2) $ 263,326 $ 156,601 Bank revolving credit facilities (1) $ 100,000 $ — April 2018 Amount available at end of period $ 100,000 $ — NJNG Bank revolving credit facilities (1) $ 250,000 $ 250,000 May 2019 Commercial paper outstanding at end of period $ — $ 11,000 Weighted average interest rate at end of period — % 1.13 % Amount available at end of period (3) $ 249,269 $ 238,269 (1) Committed credit facilities, which require commitment fees on the unused amounts. (2) Letters of credit outstanding total $10.8 million and $13.4 million for March 31, 2018 and September 30, 2017 , respectively, which reduces amount available by the same amount. (3) Letters of credit outstanding total $731,000 for both March 31, 2018 and September 30, 2017 , which reduces the amount available by the same amount. On December 14, 2017 , NJR entered into a four-month, $75 million revolving line of credit facility. On January 19, 2018 , NJR amended the agreement to increase the available amount to $100 million . As of March 31, 2018 , there were no borrowings against the facility. This facility expired on April 14, 2018 . 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 NJNG received $7.8 million and $9.6 million in December 2017 and 2016 , respectively, in connection with the sale-leaseback of its natural gas meters. NJNG records a capital lease obligation that is paid over the term of the lease and has the option to purchase the meters back at fair value upon expiration of the lease. NJNG exercised early purchase options with respect to certain outstanding meter leases by making final principal payments of $1.1 million and $1 million during the six months ended March 31, 2018 and 2017 , respectively. In June 2015, NJNG entered into a treasury lock transaction to fix a benchmark treasury rate of 3.26 percent associated with the $125 million debt issuance expected in May 2018. This debt issuance coincides with the maturity of NJNG's existing $125 million , 5.6 percent notes due May 15, 2018 . This treasury lock was settled on March 13, 2018. The resulting $2.6 million loss is recorded as a component of regulatory assets on the Unaudited Condensed Consolidated Balance Sheets and will be amortized in earnings over the life of the May 2018 debt issuance. NJR On January 26, 2018 , NJR entered into a variable-for-fixed interest rate swap on NJR's existing $100 million variable rate term loan due August 16, 2019 , which fixed the variable rate at 2.84 percent .

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	6 Months Ended
	Mar. 31, 2018
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	10. EMPLOYEE BENEFIT PLANS Pension and Other Postemployment Benefit Plans The components of the net periodic cost for pension benefits, including the Company's Pension Equalization Plan, and OPEB costs (principally health care and life insurance) for employees and covered dependents were as follows: Pension OPEB Three Months Ended Six Months Ended Three Months Ended Six Months Ended March 31, March 31, March 31, March 31, (Thousands) 2018 2017 2018 2017 2018 2017 2018 2017 Service cost $ 2,034 $ 2,087 $ 4,069 $ 4,174 $ 1,151 $ 1,095 $ 2,303 $ 2,190 Interest cost 2,624 2,442 5,247 4,885 1,591 1,387 3,182 2,773 Expected return on plan assets (4,909 ) (4,828 ) (9,819 ) (9,656 ) (1,338 ) (1,191 ) (2,676 ) (2,383 ) Recognized actuarial loss 1,885 2,206 3,769 4,413 1,165 1,092 2,330 2,185 Prior service cost amortization 26 28 53 55 (91 ) (91 ) (182 ) (182 ) Net periodic benefit cost $ 1,660 $ 1,935 $ 3,319 $ 3,871 $ 2,478 $ 2,292 $ 4,957 $ 4,583 The Company does not expect to be required to make additional contributions to fund the pension plans during fiscal 2018 or 2019 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, 2018 .

INCOME TAXES

INCOME TAXES	6 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	11. INCOME TAXES ASC Topic 740, Income Taxes requires the use of an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating its estimated annual effective tax rate, NJR considers forecasted annual pre-tax income and estimated permanent book versus tax differences, as well as 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. Changes in tax laws or tax rates are recognized in the financial reporting period that includes the enactment date, the date in which the act is signed into law. 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, 2018 and 2017 , the Company determined there was no need to recognize any liabilities associated with uncertain tax positions. The Tax Act On December 22, 2017, the President signed into law the Tax Act. The law made several changes to the Internal Revenue Code of 1986, as amended, the most impactful to the Company of which was a reduction in the federal corporate income tax rate from 35 percent to 21 percent that became effective January 1, 2018. Since the Company's fiscal year end is September 30, it is required by the Internal Revenue Code to calculate a statutory rate based upon the federal tax rates in effect before and after the effective date of the change in the taxable year that includes the effective date. Accordingly, the Company will use a federal statutory tax rate of 24.5 percent during fiscal 2018 and will use the enacted rate of 21 percent beginning in fiscal 2019. The SEC issued guidance in Staff Accounting Bulletin 118 to address the changes as of March 31, 2018 , associated with the Tax Act, which allows companies to record provisional amounts during a one-year measurement period. The Company calculated an estimate for the measurement and accounting for certain effects of the Tax Act, including the remeasurement of deferred tax assets and liabilities to reflect the rates that will be in effect when the deferred tax assets and liabilities are expected to be realized or settled. The adjustments to deferred income taxes are based on assumptions the Company made with respect to its book versus tax differences and the timing of when those differences will reverse, including estimations associated with depreciation and the settlement of derivative unrealized amounts. Therefore, the revaluation of net deferred tax liabilities is subject to change as information and assumptions are updated each quarter for actual results. Any additional guidance from the U.S. Department of the Treasury and the Internal Revenue Service or future actions of our regulators could also potentially affect the final determination of the accounting effects of the Tax Act. The decrease of the net deferred tax liability at NJNG of $228.4 million , which includes $164.3 million for the revaluation of its deferred income taxes and $64.1 million for the accounting of the income tax effects on the revaluation, was recorded as a noncurrent regulatory liability on the Unaudited Condensed Consolidated Balance Sheets since it will be refunded to NJNG's ratepayers. The decrease of the net deferred tax liability for the remaining entities resulted in an income tax benefit of $967,000 and $58.5 million that was recognized on the Unaudited Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2018 , respectively. The changes from the original estimates are currently based on actual results through the second quarter and forecasted amounts through the fiscal year end. The decrease of our net deferred tax liability, that was recognized on the Unaudited Condensed Consolidated Statements of Operations, for the remaining entities was as follows: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2018 2018 Income tax (benefit) provision Clean Energy Ventures $ (445 ) $ (63,102 ) Energy Services (1,456 ) 7,651 Midstream 185 (13,804 ) Home Services and Other 749 10,723 Total $ (967 ) $ (58,532 ) Effective Tax Rate The forecasted effective tax rates were 17.2 percent and 15.6 percent , for the six months ended March 31, 2018 and 2017 , respectively. The increase in the effective tax rate, when compared with the prior fiscal year, is due primarily to an increase in forecasted pre-tax income combined with a decrease in forecasted tax credits for the fiscal year ending September 30, 2018 , which more than offset the lower federal statutory rate that became effective during fiscal 2018 as a result of the Tax Act. Forecasted tax credits, net of deferred income taxes, were $23.2 million and $36.4 million for fiscal 2018 and 2017 , 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. As discussed further above, the Company recognized a tax benefit of $967,000 and $58.5 million during the three and six months ended March 31, 2018 . In addition, the Company recognized $2.8 million and $1.5 million during the six months ended March 31, 2018 and 2017 , respectively, in excess tax benefits associated with the vesting of share-based awards, as a component of income tax (benefit) provision in its Unaudited Condensed Consolidated Statements of Operations. As a result of these discrete items, NJR’s actual effective tax rate was (7.9) percent and 14.8 percent during the six months ended March 31, 2018 and 2017 , respectively. Other Tax Items As of March 31, 2018 , the Company has federal and state income tax net operating losses of approximately $125.3 million and $537.2 million , respectively, which generally have a life of 20 years. As of March 31, 2018 , the Company has recorded deferred federal and state tax assets of approximately $28.5 million and $28.2 million , respectively, on the Unaudited Condensed Consolidated Balance Sheets, reflecting the tax benefits associated with these net operating losses. As of September 30, 2017 , the Company had federal and state income tax net operating losses of approximately $125.3 million and $471.7 million , respectively, and deferred federal and state tax assets of approximately $28.5 million and $23.6 million , respectively. In March 2018, Clean Energy Ventures committed to a plan to pursue the sale of its remaining wind assets and it is probable that these sales will be completed within the next 12 months. As a result of the planned sale, it is more likely than not that certain state net operating loss carryforwards will not be realizable prior to their expiration. As of March 31, 2018, the Company recorded a valuation allowance of $2.5 million related to state net operating loss carryforwards in Montana, Iowa, Kansas, and Wyoming. As of September 30, 2017, the Company had a valuation allowance of $1 million related to state net operating loss carryforwards in Montana. In addition, as of March 31, 2018 and September 30, 2017 , the Company had an ITC/PTC carryforward of approximately $127.8 million and $109.3 million , respectively, which each have a life of 20 years. The Company expects to utilize this entire carryforward, which would begin to expire in fiscal 2035. On March 7, 2018 , the State of New Jersey notified the Company that it will conduct a general tax examination for fiscal year 2014 through 2017 related to NJRHS. All periods subsequent to those ended September 30, 2013, are statutorily open to examination. 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, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	12. COMMITMENTS AND CONTINGENT LIABILITIES Cash Commitments NJNG has entered into long-term contracts, expiring at various dates through September 2024 , for the supply, storage and transportation of natural gas. These contracts include fixed charges of approximately $54.5 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, Energy Services enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by Energy Services to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one 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, 2018 , for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2018 2019 2020 2021 2022 Thereafter Energy Services: Natural gas purchases $ 256,179 $ 134,005 $ 20,506 $ 11,112 $ — $ — Storage demand fees 19,299 30,207 17,581 11,137 6,053 3,521 Pipeline demand fees 36,071 55,988 42,807 25,143 21,039 22,563 Sub-total Energy Services $ 311,549 $ 220,200 $ 80,894 $ 47,392 $ 27,092 $ 26,084 NJNG: Natural gas purchases $ 40,088 $ 41,715 $ 39,370 $ 37,655 $ 38,684 $ 80,788 Storage demand fees 15,479 31,362 24,245 14,243 12,922 15,070 Pipeline demand fees 39,002 79,503 105,514 92,880 91,508 671,743 Sub-total NJNG $ 94,569 $ 152,580 $ 169,129 $ 144,778 $ 143,114 $ 767,601 Total $ 406,118 $ 372,780 $ 250,023 $ 192,170 $ 170,206 $ 793,685 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 recovers its remediation expenditures, including carrying costs, over rolling seven -year periods pursuant to a RAC approved by the BPU. NJNG currently recovers approximately $9.4 million annually through its SBC RAC. On November 17, 2017 , NJNG filed its annual SBC application requesting a reduction in the RAC, which decreased the annual recovery to $7 million , effective April 1, 2018 . As of March 31, 2018 , $28.9 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. In the first quarter of fiscal 2018, the NJDEP contacted NJNG regarding its association with a parcel of land, located within NJNG's service territory, which may have been a MGP site for a period of time. NJNG is investigating to determine the nature and extent of its relationship to the parcel, its previous owner and the operations conducted on the site. NJNG will continue to gather information to determine whether a potential obligation exists to undertake remedial action, if any, and whether there are other potentially responsible parties. 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 $117.6 million to $205.2 million . NJNG's estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG's policy to accrue the lower end of the range. Accordingly, NJNG recorded an MGP remediation liability and a corresponding regulatory asset on the Unaudited Condensed Consolidated Balance Sheets of $149 million as of September 30, 2017 , based on the most likely amount at year end and $142.5 million as of March 31, 2018 , which includes adjustments for actual expenditures during fiscal 2018 . The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and any insurance recoveries. NJNG will continue to seek recovery of MGP-related costs through the RAC. If any future regulatory position indicates that the recovery of such costs is not probable, the related non-recoverable costs would be charged to earnings in the period of such determination. General The Company is involved, and from time to time in the future may be involved, in a number of pending and threatened judicial, regulatory and arbitration proceedings relating to matters that arise in the ordinary course of business. In view of the inherent difficulty of predicting the outcome of litigation matters, particularly when such matters are in their early stages or where the claimants seek indeterminate damages, the Company cannot state with confidence what the eventual outcome of the pending litigation will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each pending matter will be, if any. In accordance with applicable accounting guidance, NJR establishes reserves for litigation for those matters that present loss contingencies as to which it is both probable that a loss will be incurred and the amount of such loss can be reasonably estimated. Based upon currently available information, NJR believes that the results of litigation that is currently pending, taken together, will not have a materially adverse effect on the Company’s financial condition, results of operations or cash flows. The actual results of resolving the pending litigation matters may be substantially higher than the amounts reserved. The foregoing statements about NJR’s litigation are based upon the Company’s judgments, assumptions and estimates and are necessarily subjective and uncertain. The Company has a number of threatened and pending litigation matters at various stages. Certain of the Company’s significant litigation is described below. 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, 2018 , 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.

REPORTING SEGMENT AND OTHER OPE

REPORTING SEGMENT AND OTHER OPERATIONS DATA	6 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
REPORTING SEGMENT AND OTHER OPERATIONS DATA	13. REPORTING SEGMENT AND OTHER OPERATIONS DATA The Company organizes its businesses based on a combination of factors, including its products and its regulatory environment. As a result, the Company manages its businesses through the following reporting segments and other operations: the Natural Gas Distribution segment consists of regulated energy and off-system, capacity and storage management operations; the Clean Energy Ventures segment consists of capital investments in clean energy projects; the Energy Services segment consists of unregulated wholesale energy operations; the Midstream segment consists of the Company's investments in natural gas transportation and storage facilities; the Home Services and Other operations consist of heating, cooling and water appliance sales, installations and services, other investments and general corporate activities. Information related to the Company's various reporting segments and other operations is detailed below: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2018 2017 2018 2017 Operating revenues Natural Gas Distribution External customers $ 317,064 $ 295,546 $ 526,851 $ 481,102 Clean Energy Ventures External customers 12,866 12,943 26,862 20,510 Energy Services External customers (1) 681,475 417,608 1,153,646 756,538 Intercompany 43,838 2,679 49,648 930 Subtotal 1,055,243 728,776 1,757,007 1,259,080 Home Services and Other External customers 7,638 7,449 16,989 16,424 Intercompany 623 1,055 1,229 2,086 Eliminations (44,461 ) (3,734 ) (50,877 ) (3,016 ) Total $ 1,019,043 $ 733,546 $ 1,724,348 $ 1,274,574 Depreciation and amortization Natural Gas Distribution $ 13,353 $ 12,263 $ 26,136 $ 24,293 Clean Energy Ventures 8,928 7,923 17,863 14,964 Energy Services (2) 15 17 29 33 Midstream 2 2 3 3 Subtotal 22,298 20,205 44,031 39,293 Home Services and Other 189 199 377 420 Eliminations (27 ) (76 ) (94 ) (125 ) Total $ 22,460 $ 20,328 $ 44,314 $ 39,588 Interest income (3) Natural Gas Distribution $ 131 $ 97 $ 250 $ 172 Energy Services 106 — 106 — Midstream 771 512 1,435 974 Subtotal 1,008 609 1,791 1,146 Home Services and Other 354 132 558 253 Eliminations (1,168 ) (633 ) (2,099 ) (1,216 ) Total $ 194 $ 108 $ 250 $ 183 (1) Includes sales to Canada, which accounted for .01 and 1.5 percent of total operating revenues during the six months ended March 31, 2018 and 2017 , respectively. (2) The amortization of acquired wholesale energy contracts is included in gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations. (3) Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2018 2017 2018 2017 Interest expense, net of capitalized interest Natural Gas Distribution $ 6,523 $ 6,392 $ 13,059 $ 13,216 Clean Energy Ventures 4,344 4,055 8,552 7,379 Energy Services 1,203 716 2,460 1,287 Midstream 385 414 694 470 Subtotal 12,455 11,577 24,765 22,352 Home Services and Other 21 123 111 197 Eliminations (678 ) (264 ) (1,173 ) (498 ) Total $ 11,798 $ 11,436 $ 23,703 $ 22,051 Income tax provision (benefit) Natural Gas Distribution $ 17,991 $ 30,499 $ 29,695 $ 45,386 Clean Energy Ventures (12,722 ) (24,756 ) (86,710 ) (36,643 ) Energy Services 23,965 16,277 37,708 13,101 Midstream 3,131 1,502 (9,712 ) 3,151 Subtotal 32,365 23,522 (29,019 ) 24,995 Home Services and Other (1,281 ) 1,066 10,417 821 Eliminations (183 ) (656 ) (665 ) 134 Total $ 30,901 $ 23,932 $ (19,267 ) $ 25,950 Equity in earnings of affiliates Midstream $ 4,068 $ 6,119 $ 8,197 $ 9,450 Eliminations (875 ) (1,040 ) (1,740 ) (2,060 ) Total $ 3,193 $ 5,079 $ 6,457 $ 7,390 Net financial earnings (loss) Natural Gas Distribution $ 60,442 $ 60,233 $ 94,551 $ 90,581 Clean Energy Ventures 10,051 22,743 81,301 25,585 Energy Services 72,832 15,746 93,106 19,233 Midstream 1,315 4,948 18,826 7,335 Subtotal 144,640 103,670 287,784 142,734 Home Services and Other (2,488 ) 708 (10,204 ) 2,250 Eliminations (90 ) (272 ) (185 ) (495 ) Total $ 142,062 $ 104,106 $ 277,395 $ 144,489 Capital expenditures Natural Gas Distribution $ 55,397 $ 34,744 $ 102,787 $ 73,599 Clean Energy Ventures 40,605 43,120 58,992 89,905 Subtotal 96,002 77,864 161,779 163,504 Home Services and Other 1,846 345 3,159 516 Total $ 97,848 $ 78,209 $ 164,938 $ 164,020 Investments in equity investees Midstream $ 3,975 $ 5,902 $ 11,177 $ 10,538 Total $ 3,975 $ 5,902 $ 11,177 $ 10,538 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) 2018 2017 2018 2017 Net financial earnings (1) $ 142,062 $ 104,106 $ 277,395 $ 144,489 Less: Unrealized (gain) loss on derivative instruments and related transactions (11,608 ) (54,855 ) 23,246 (26,553 ) Tax effect 4,716 19,679 (3,343 ) 9,922 Effects of economic hedging related to natural gas inventory 6,125 34,328 (19,262 ) 16,389 Tax effect (1,715 ) (12,334 ) 6,529 (6,130 ) Net income to NFE tax adjustment 4,278 2,586 6,260 1,230 Net income (1) $ 140,266 $ 114,702 $ 263,965 $ 149,631 (1) Includes income tax benefit related to the Tax Act of $967,000 and $58.5 million , for the three and six months ended March 31, 2018 , respectively. The Company uses derivative instruments as economic hedges of purchases and sales of physical gas inventory. For GAAP purposes, these derivatives are recorded at fair value and related changes in fair value are included in reported earnings. Revenues and cost of gas related to physical gas flow is recognized when the gas is delivered to customers. Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical gas flows. Timing differences occur in two ways: • unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical gas inventory flows; and • unrealized gains and losses of prior periods are reclassified as realized gains and losses when derivatives are settled in the same period as physical gas inventory movements occur. NFE is a measure of the earnings based on eliminating these timing differences, to effectively match the earnings effects of the economic hedges with the physical sale of gas, SRECs and foreign currency contracts. Consequently, to reconcile between net income and NFE, current period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Additionally, realized derivative gains and losses are also included in current period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical gas flows. Included in the tax effects are current and deferred income tax expense corresponding with the non-GAAP measure. Also included in the tax effects during the three and six months ended March 31, 2018 , are the impacts of the Tax Act and resulting revaluation of the deferred income taxes that arose from derivative and hedging activity as measured under NFE. The revaluation caused the effective tax rate on reconciling items to differ from the statutory rate in effect for the quarter. 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 $ 2,567,347 $ 2,519,578 Clean Energy Ventures (1) 812,789 771,340 Energy Services 366,322 398,277 Midstream 227,101 232,806 Subtotal 3,973,559 3,922,001 Home Services and Other 107,415 114,801 Intercompany assets (2) (120,234 ) (108,295 ) Total $ 3,960,740 $ 3,928,507 (1) Includes assets held for sale of $224.9 million . (2) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	14. RELATED PARTY TRANSACTIONS Effective April 1, 2010 , NJNG entered into a 10 -year agreement 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. Energy Services may periodically enter into storage or park and loan agreements with its affiliated FERC-jurisdictional natural gas storage facility, Steckman Ridge. As of March 31, 2018 , Energy Services has entered into transactions with Steckman Ridge for varying terms, all of which expire by October 31, 2020 . Demand fees, net of eliminations, associated with Steckman Ridge were as follows: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2018 2017 2018 2017 Natural Gas Distribution $ 1,407 $ 1,383 $ 2,855 $ 2,793 Energy Services 680 689 1,381 1,390 Total $ 2,087 $ 2,072 $ 4,236 $ 4,183 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) March 31, September 30, Natural Gas Distribution $ 775 $ 775 Energy Services 376 377 Total $ 1,151 $ 1,152 NJNG and Energy Services have entered into various asset management agreements, the effects of which are eliminated in consolidation. Under the terms of these agreements, NJNG releases certain transportation and storage contracts to Energy Services. As of March 31, 2018 , NJNG and Energy Services had four asset management agreements with expiration dates ranging from February 28, 2018 through October 31, 2020 . NJNG has entered into a 15 -year transportation precedent agreement for committed capacity of 180,000 Dths per day with PennEast, to commence when PennEast is in service.

ACQUISITION

ACQUISITION	6 Months Ended
	Mar. 31, 2018
Business Combinations [Abstract]
ACQUISITION	15. ACQUISITION On October 27, 2017 , Adelphia, an indirect wholly owned subsidiary of NJR, entered into a Purchase and Sale Agreement with Talen pursuant to which Adelphia will acquire all of Talen’s membership interests in IEC for a base purchase price of $166 million . As additional consideration, Adelphia will pay Talen specified amounts of up to $23 million contingent upon the achievement of certain regulatory approvals and binding natural gas capacity commitments. On November 7, 2017, the Company made an initial payment of $10 million towards the base purchase price, which is included in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. IEC owns an existing 84 -mile pipeline in southeastern Pennsylvania. The transaction is expected to close following receipt of necessary permits and regulatory actions including those from the FERC and the Pennsylvania Public Utility Commission. Upon the closing, Adelphia will acquire IEC and, with it, IEC’s existing pipeline, related assets and rights of way. Adelphia has also agreed to provide firm natural gas transportation service for ten years following the closing to two power generators owned by affiliates of Talen that are currently served by IEC.

DISPOSITION

DISPOSITION	6 Months Ended
	Mar. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]
DISPOSITION	16. DISPOSITION On February 28, 2018 , NJR sold all of the issued and outstanding shares of capital stock of NJR Retail Services, which was a component of our Energy Services segment. The Company received $9.5 million in cash and a natural gas swap contract with a fair value of $14.6 million , which was recorded in Derivatives, at fair value on the Unaudited Condensed Consolidated Balance Sheets. The sale generated a pre-tax gain of $3.7 million , which was recognized as a reduction to O&M on the Unaudited Condensed Consolidated Statements of Operations.

SUMMARY OF SIGNIFICANT ACCOUN24

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Available for Sale Securities	Available for Sale Securities Available for sale securities are carried at fair value on the Unaudited Condensed Consolidated Balance Sheets. Total unrealized gains and losses associated are included as a part of accumulated other comprehensive income, a component of common stock equity. Reclassifications of realized gains or losses out of other comprehensive income into earnings are recorded in other income, net on the Unaudited Condensed Consolidated Statements of Operations based on average cost. Management evaluates its equity securities for other-than-temporary impairment on a quarterly basis, and more frequently when economic, market or other concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than cost; the financial condition and near term prospects of the issuer; whether the market decline was affected by macroeconomic conditions, changes in tax laws, regulations or other governmental policies; and whether the Company has the intent to sell the security or more likely than not will be required to sell the security before the recovery of its amortized cost basis. If the decline in value of our equity securities is determined to be other-than-temporary, an impairment is recognized through earnings within other income, net on the Unaudited Condensed Consolidated Statements of Operations.
Loans Receivable	Loans Receivable NJNG currently provides loans, with terms ranging from three 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 $9.9 million and $8.9 million in other current assets and $40.3 million and $40.4 million in other noncurrent assets as of March 31, 2018 and September 30, 2017 , 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 .
Recently Adopted Updates to the Accounting Standards Codification	Recently Adopted Updates to the Accounting Standards Codification 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 Company adopted the new guidance in the first quarter of fiscal 2018 and applied the new provisions on a prospective basis, which did not impact its financial position, results of operations or cash flows upon adoption. Tax In March 2018, the FASB issued ASU No. 2018-05, an amendment to ASC 840, Income Taxes , which provides relief to entities in their calculation of the effects of the Tax Act by allowing them to record provisional amounts for certain income tax effects to address circumstances in which an entity does not have the necessary information available, prepared or analyzed to complete the accounting. These provisional amounts are subject to change as information and assumptions are updated throughout the measurement period, which may not extend beyond one year from the enactment date. The new guidance was effective immediately upon issuance and thus, the Company adopted the new guidance in the second quarter of fiscal 2018 and applied the new provision on a prospective basis. 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 not be early adopted and will be effective for the Company’s fiscal year ending September 30, 2019, and interim periods within that year. The Company has concluded that its tariff based sales of natural gas will be within the scope of the new guidance. However, it does not anticipate any modification to the pattern of revenue recognition from such sales. The Company has also evaluated its renewable asset PPA arrangements and does not anticipate any modification to the pattern of revenue recognition of the related electricity, capacity and REC sales. Revenues from RECs sold as part of a bundled arrangement will be recognized in the same period as the related generation, consistent with current practice. Based on the review of customer contracts to date, the Company 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 implementation of ASC 606 and currently expects to transition to the new guidance using the modified retrospective approach. Financial Instruments In January 2016, the FASB issued ASU No. 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. Upon adoption, any amounts recorded in accumulated other comprehensive income related to available for sale securities will be reclassified to the opening balance of retained earnings in the year of adoption. 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 No. 2016-13, an amendment to ASC 326, Financial Instruments - Credit Losses, which changes the impairment model for certain financial assets that have a contractual right to receive cash, including trade and loan receivables. The new model requires recognition based upon an estimation of expected credit losses rather than recognition of losses when it is probable that they have been incurred. An entity will apply the amendment through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The guidance is effective for the Company’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 No. 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. In January 2018, the FASB issued ASU No. 2018-01, a further amendment to ASC 842, Leases, which was introduced by ASC No. 2016-02, as discussed above. This update provides an optional practical expedient that allows companies to not evaluate existing or expired land easements that were not previously accounted for under Topic 840 as leases. The Company expects to elect this practical expedient upon 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 continues to evaluate the provisions of ASC 842 and is actively monitoring the outcome of the exposure draft issued by the FASB that would provide an optional transition method to ASC 842. At this time, the Company does not plan to early adopt the new guidance and expects to elect the practical expedient package in the new guidance during transition. While the Company is currently evaluating the full impact of the standard, it expects to recognize additional assets and liabilities arising from current operating leases to its financial position 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 does not expect any material impacts to its 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 the accounting applied 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 has determined that to the extent a deferred gain exists related to nonfinancial assets on the balance sheet upon adoption, it would be recognized under the new accounting guidance as a cumulative effect adjustment to the opening balance of retained earnings for the first quarter of fiscal 2019. 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. Stock Compensation In May 2017, the FASB issued ASU No. 2017-09, an amendment to ASC 718, Compensation - Stock Compensation , which clarifies the accounting for changes to the terms or conditions of share-based payments. 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 amendments will be applied prospectively to awards modified on or after the adoption date. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations and cash flows upon adoption. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, an amendment to ASC 815, Derivatives and Hedging , which is intended to make targeted improvements to the accounting for hedging activities by better aligning an entity’s risk management activities and financial reporting for hedging relationships. These amendments modify the accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Additionally, the amendments are intended to simplify the application of the hedge accounting guidance and provide relief to companies by easing certain hedge documentation requirements. The guidance is effective for the Company’s fiscal year ending September 30, 2020, and interim periods within that year, with early adoption permitted. Upon adoption, the transition requirements and elections will be applied to hedging relationships existing on the date of adoption. The Company does not currently apply hedge accounting to any of its risk management activities and thus does not expect the amendments to have any impact on its financial position, results of operations and cash flows upon adoption. Reporting Comprehensive Income In February 2018, the FASB issued ASU No. 2018-02, an amendment to ASC 220, Income Statement - Reporting Comprehensive Income , which allows for the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects of the Tax Act. The guidance is effective for the Company’s fiscal year ending September 30, 2020, and interim periods within that year, with early adoption permitted. Upon adoption, the amendments will be applied either in the period of adoption, or retrospectively to each period in which the effects of the Tax Act are recognized. The Company is currently evaluating the amendments to understand the impact on its financial position and results of operations upon adoption.
Derivative Instruments	The Company is subject primarily to commodity price risk due to fluctuations in the market price of natural gas, SRECs and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs and electricity. In addition, the Company is exposed to foreign currency and interest rate risk, The Company may utilize foreign currency derivatives to hedge Canadian dollar denominated gas purchases and/or sales and interest rate derivatives to reduce exposure to fluctuations in interest rates. All of these types of contracts are accounted for as derivatives. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets. For a more detailed discussion of the Company's fair value measurement policies and level disclosures associated with NJR's derivative instruments, see Note 5. Fair Value . Energy Services Energy Services chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS. The changes in the fair value of these derivatives are recorded as a component of gas purchases or operating revenues, as appropriate for Energy Services, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For Energy Services at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of gas purchases and realized gains and losses on all physical derivatives follow the presentation of the related unrealized gains and losses as a component of either gas purchases or operating revenues. Energy Services also enters into natural gas transactions in Canada and, consequently, is exposed to fluctuations in the value of Canadian currency relative to the U.S. dollar. Energy Services may utilize foreign currency derivatives to lock in the exchange 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. As a result of Energy Services entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets, with changes in value recognized in current period earnings. Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. 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, Energy Services 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 appropriate, the Company can and may elect normal accounting for certain contracts. Natural Gas Distribution Changes in fair value of NJNG's financial commodity derivatives are recorded as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. Effective for contracts executed on or after January 1, 2016, NJNG no longer elects NPNS accounting treatment on all physical forward commodity contracts. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect certain contracts to be normal. Because NJNG recovers these amounts through future BGSS rates as increases or decreases to the cost of natural gas in NJNG’s tariff for gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets.
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 ACCOUN25

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Summary of Gas in Storage	The following table summarizes gas in storage, at average cost by segment as of: March 31, September 30, ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf Energy Services $ 51,915 18.6 $ 122,884 53.9 Natural Gas Distribution 19,254 4.7 79,179 21.8 Total $ 71,169 23.3 $ 202,063 75.7
Accounts Receivable by Subsidiary	Customer accounts receivable include outstanding billings from the following subsidiaries as of: (Thousands) March 31, September 30, Energy Services $ 179,218 60 % $ 150,322 77 % Natural Gas Distribution (1) 112,884 38 37,432 19 Clean Energy Ventures 2,834 1 2,655 1 NJRHS and other 3,888 1 6,058 3 Total $ 298,824 100 % $ 196,467 100 % (1) Does not include unbilled revenues of $55.4 million and $7.2 million as of March 31, 2018 and September 30, 2017 , respectively.
Disposal Groups, Including Discontinued Operations	The major classes of assets and liabilities included within the disposal group as held for sale are as follows: (Thousands) March 31, 2018 Assets held for sale: Property, plant and equipment - wind equipment, at cost $ 244,972 Property, plant and equipment - accumulated depreciation, wind equipment (21,561 ) Prepaid and accrued taxes 1,226 Other noncurrent assets 261 $ 224,898 Liabilities held for sale: Asset retirement obligation $ 4,262

REGULATION (Tables)

REGULATION (Tables)	6 Months Ended
	Mar. 31, 2018
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 New Jersey Clean Energy Program $ 5,690 $ 14,202 Underrecovered gas costs 7,549 9,910 Derivatives at fair value, net 1,812 9,010 Conservation Incentive Program — 17,669 Total current regulatory assets $ 15,051 $ 50,791 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 28,868 $ 28,547 Liability for future expenditures 142,474 149,000 Deferred income taxes 16,773 21,795 SAVEGREEN 7,549 16,302 Postemployment and other benefit costs 135,930 141,433 Deferred storm damage costs 11,944 13,030 Other noncurrent regulatory assets 8,614 5,812 Total noncurrent regulatory assets $ 352,152 $ 375,919 Regulatory liability-current Conservation Incentive Program $ 229 $ — Customer refund payable (1) 28,878 — Derivatives at fair value, net 62 78 Total current regulatory liabilities $ 29,169 $ 78 Regulatory liabilities-noncurrent Deferred income taxes (2) $ 210,500 $ — Cost of removal obligation — 7,902 Derivatives at fair value, net — 146 New Jersey Clean Energy Program 5,914 5,795 Other noncurrent regulatory liabilities 1,096 664 Total noncurrent regulatory liabilities $ 217,510 $ 14,507 (1) Includes the current portion of an adjustment related to the re-measurement of NJNG's net deferred tax liabilities to reflect the change in federal tax rates enacted in the Tax Act, which is net of sales tax collected from customers . For a more detailed discussion of the Tax Act, s ee Note 11. Income Taxes . (2) Includes the long-term portion of an adjustment related to the Tax Act

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Mar. 31, 2018
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, 2018 September 30, 2017 (Thousands) Balance Sheet Location Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments: Natural Gas Distribution: Physical commodity contracts Derivatives - current $ 88 $ 26 $ 151 $ 72 Financial commodity contracts Derivatives - current 375 134 — 1,149 Interest rate contracts Derivatives - current — — — 8,467 Energy Services: Physical commodity contracts Derivatives - current 6,036 16,274 14,588 16,589 Derivatives - noncurrent 1,249 14,963 7,127 8,710 Financial commodity contracts Derivatives - current 20,398 28,247 15,302 20,267 Derivatives - noncurrent 12,232 8,537 2,033 2,620 Foreign currency contracts Derivatives - current — 97 40 — Derivatives - noncurrent — 103 4 — Home Services and Other: Interest rate contracts Derivatives - current — 14 — — Derivatives - noncurrent 135 — — — Total fair value of derivatives $ 40,513 $ 68,395 $ 39,245 $ 57,874
Offsetting Assets	The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral, as well as the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented on Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of March 31, 2018: Derivative assets: Energy Services Physical commodity contracts $ 7,285 $ (1,903 ) $ (200 ) $ 5,182 Financial commodity contracts 32,630 (20,031 ) (608 ) 11,991 Total Energy Services $ 39,915 $ (21,934 ) $ (808 ) $ 17,173 Natural Gas Distribution Physical commodity contracts $ 88 $ (5 ) $ — $ 83 Financial commodity contracts 375 (134 ) — 241 Total Natural Gas Distribution $ 463 $ (139 ) $ — $ 324 Home Services and Other Interest rate contracts $ 135 $ (14 ) $ — $ 121 Total Home Services and Other $ 135 $ (14 ) $ — $ 121 Derivative liabilities: Energy Services Physical commodity contracts $ 31,237 $ (1,903 ) $ — $ 29,334 Financial commodity contracts 36,784 (19,492 ) (16,757 ) 535 Foreign currency contracts 200 — — 200 Total Energy Services $ 68,221 $ (21,395 ) $ (16,757 ) $ 30,069 Natural Gas Distribution Physical commodity contracts $ 26 $ (5 ) $ — $ 21 Financial commodity contracts 134 (134 ) — — Total Natural Gas Distribution $ 160 $ (139 ) $ — $ 21 Home Services and Other Interest rate contracts $ 14 $ (14 ) $ — $ — Total Home Services and Other $ 14 $ (14 ) $ — $ — As of September 30, 2017: Derivative assets: Energy Services Physical commodity contracts $ 21,715 $ (2,173 ) $ (200 ) $ 19,342 Financial commodity contracts 17,335 (14,121 ) — 3,214 Foreign currency contracts 44 — — 44 Total Energy Services $ 39,094 $ (16,294 ) $ (200 ) $ 22,600 Natural Gas Distribution Physical commodity contracts $ 151 $ (20 ) $ — $ 131 Total Natural Gas Distribution $ 151 $ (20 ) $ — $ 131 Derivative liabilities: Energy Services Physical commodity contracts $ 25,299 $ (2,173 ) $ — $ 23,126 Financial commodity contracts 22,887 (14,121 ) (8,766 ) — Total Energy Services $ 48,186 $ (16,294 ) $ (8,766 ) $ 23,126 Natural Gas Distribution Physical commodity contracts $ 72 $ (20 ) $ — $ 52 Financial commodity contracts 1,149 — (1,149 ) — Interest rate contracts 8,467 — — 8,467 Total Natural Gas Distribution $ 9,688 $ (20 ) $ (1,149 ) $ 8,519 (1) Derivative assets and liabilities are presented on a gross basis on the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3) Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties. (4) Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.
Offsetting Liabilities	The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral, as well as the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented on Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of March 31, 2018: Derivative assets: Energy Services Physical commodity contracts $ 7,285 $ (1,903 ) $ (200 ) $ 5,182 Financial commodity contracts 32,630 (20,031 ) (608 ) 11,991 Total Energy Services $ 39,915 $ (21,934 ) $ (808 ) $ 17,173 Natural Gas Distribution Physical commodity contracts $ 88 $ (5 ) $ — $ 83 Financial commodity contracts 375 (134 ) — 241 Total Natural Gas Distribution $ 463 $ (139 ) $ — $ 324 Home Services and Other Interest rate contracts $ 135 $ (14 ) $ — $ 121 Total Home Services and Other $ 135 $ (14 ) $ — $ 121 Derivative liabilities: Energy Services Physical commodity contracts $ 31,237 $ (1,903 ) $ — $ 29,334 Financial commodity contracts 36,784 (19,492 ) (16,757 ) 535 Foreign currency contracts 200 — — 200 Total Energy Services $ 68,221 $ (21,395 ) $ (16,757 ) $ 30,069 Natural Gas Distribution Physical commodity contracts $ 26 $ (5 ) $ — $ 21 Financial commodity contracts 134 (134 ) — — Total Natural Gas Distribution $ 160 $ (139 ) $ — $ 21 Home Services and Other Interest rate contracts $ 14 $ (14 ) $ — $ — Total Home Services and Other $ 14 $ (14 ) $ — $ — As of September 30, 2017: Derivative assets: Energy Services Physical commodity contracts $ 21,715 $ (2,173 ) $ (200 ) $ 19,342 Financial commodity contracts 17,335 (14,121 ) — 3,214 Foreign currency contracts 44 — — 44 Total Energy Services $ 39,094 $ (16,294 ) $ (200 ) $ 22,600 Natural Gas Distribution Physical commodity contracts $ 151 $ (20 ) $ — $ 131 Total Natural Gas Distribution $ 151 $ (20 ) $ — $ 131 Derivative liabilities: Energy Services Physical commodity contracts $ 25,299 $ (2,173 ) $ — $ 23,126 Financial commodity contracts 22,887 (14,121 ) (8,766 ) — Total Energy Services $ 48,186 $ (16,294 ) $ (8,766 ) $ 23,126 Natural Gas Distribution Physical commodity contracts $ 72 $ (20 ) $ — $ 52 Financial commodity contracts 1,149 — (1,149 ) — Interest rate contracts 8,467 — — 8,467 Total Natural Gas Distribution $ 9,688 $ (20 ) $ (1,149 ) $ 8,519 (1) Derivative assets and liabilities are presented on a gross basis on the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3) Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties. (4) Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.
Effect of Derivative Instruments on Consolidated Statements of Operations	The following table 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: 2018 2017 2018 2017 Energy Services: Physical commodity contracts Operating revenues $ (11,952 ) $ 4,982 $ (10,742 ) $ 6,725 Physical commodity contracts Gas purchases (44,646 ) (3,982 ) (67,343 ) (12,781 ) Financial commodity contracts Gas purchases 13,767 38,121 (12,230 ) 7,510 Foreign currency contracts Gas purchases (215 ) 53 (263 ) (33 ) Home Services and Other: Interest rate contracts Interest expense 121 — 121 — Total unrealized and realized gains (losses) $ (42,925 ) $ 39,174 $ (90,457 ) $ 1,421
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI	The following table reflects the (losses) gains associated with NJNG's derivative instruments as of: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2018 2017 2018 2017 Natural Gas Distribution: Physical commodity contracts $ (12,879 ) $ (3,780 ) $ (15,855 ) $ (2,730 ) Financial commodity contracts 7,232 (418 ) (1,576 ) 10,760 Interest rate contracts 12,534 (1,690 ) 8,467 18,681 Total unrealized and realized (losses) gains $ 6,887 $ (5,888 ) $ (8,964 ) $ 26,711
Schedule of Outstanding Long (Short) Derivatives	NJNG and Energy Services had the following outstanding long (short) derivatives as of: Volume (Bcf) March 31, September 30, Natural Gas Distribution Futures 24.9 18.2 Physical 33.2 32.1 Energy Services Futures (13.0 ) (16.4 ) Physical 36.5 (13.1 )
Schedule of Broker Margin Accounts by Company	The balances are as follows: (Thousands) Balance Sheet Location March 31, September 30, Natural Gas Distribution Broker margin - Current assets $ 3,612 $ 2,661 Energy Services Broker margin - Current assets $ 56,358 $ 23,166
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, 2018 . The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and Clean Energy Ventures residential solar installations. (Thousands) Gross Credit Exposure Investment grade $ 175,076 Noninvestment grade 21,228 Internally rated investment grade 20,818 Internally rated noninvestment grade 47,079 Total $ 264,201

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Mar. 31, 2018
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, debt issuance costs and solar asset financing obligations, is as follows: (Thousands) March 31, September 30, Carrying value (1) (2) (3) $ 1,097,045 $ 1,097,045 Fair market value $ 1,084,268 $ 1,107,676 (1) Excludes capital leases of $41.8 million and $39.7 million as of March 31, 2018 and September 30, 2017 , respectively. (2) Excludes NJNG's debt issuance costs of $6.1 million and $6.3 million as of March 31, 2018 and September 30, 2017 , respectively. (3) Excludes NJR's debt issuance costs of $768,000 and $770,000 as of March 31, 2018 and September 30, 2017 , 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, 2018: Assets: Physical commodity contracts $ — $ 7,373 $ — $ 7,373 Financial commodity contracts 20,443 12,562 — 33,005 Interest rate contracts — 135 — 135 Available for sale equity securities - energy industry 28,228 — — 28,228 Other (1) 1,214 — — 1,214 Total assets at fair value $ 49,885 $ 20,070 $ — $ 69,955 Liabilities: Physical commodity contracts $ — $ 31,263 $ — $ 31,263 Financial commodity contracts 36,353 565 — 36,918 Financial commodity contracts - foreign exchange — 200 — 200 Interest rate contracts — 14 — 14 Total liabilities at fair value $ 36,353 $ 32,042 $ — $ 68,395 As of September 30, 2017: Assets: Physical commodity contracts $ — $ 21,866 $ — $ 21,866 Financial commodity contracts 17,335 17,335 Financial commodity contracts - foreign exchange — 44 — 44 Available for sale equity securities - energy industry 65,752 — — 65,752 Other (1) 1,202 — — 1,202 Total assets at fair value $ 84,289 $ 21,910 $ — $ 106,199 Liabilities: Physical commodity contracts $ — $ 25,371 $ — $ 25,371 Financial commodity contracts 24,036 — — 24,036 Interest rate contracts — 8,467 — 8,467 Total liabilities at fair value $ 24,036 $ 33,838 $ — $ 57,874 (1) Includes money market funds of $11,000 and $112,000 as of March 31, 2018 and September 30, 2017 , respectively. Assets measured at fair value on a non-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, 2018: Assets Impairment of available for sale securities (1) $ 17,838 $ — $ — $ 17,838 Total assets at fair value $ 17,838 $ — $ — $ 17,838 (1) See Note 2. Summary of Significant Accounting Policies for more information regarding the impairment.

INVESTMENTS IN EQUITY METHOD 29

INVESTMENTS IN EQUITY METHOD INVESTEES (Tables)	6 Months Ended
	Mar. 31, 2018
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) $ 118,875 $ 120,262 PennEast 65,009 52,323 Total $ 183,884 $ 172,585 (1) Includes loans with a total outstanding principal balance of $70.4 million for both March 31, 2018 and September 30, 2017 . 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, 2018
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) 2018 2017 2018 2017 Net income, as reported $ 140,266 $ 114,702 $ 263,965 $ 149,631 Basic earnings per share Weighted average shares of common stock outstanding-basic 87,595 86,275 87,295 86,182 Basic earnings per common share $1.60 $1.33 $3.02 $1.74 Diluted earnings per share Weighted average shares of common stock outstanding-basic 87,595 86,275 87,295 86,182 Incremental shares (1) 394 826 395 811 Weighted average shares of common stock outstanding-diluted 87,989 87,101 87,690 86,993 Diluted earnings per common share (2) $1.59 $1.32 $3.01 $1.72 (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, 2018 and 2017 .

COMMON STOCK EQUITY (Tables)

COMMON STOCK EQUITY (Tables)	6 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Changes in Common Stock Equity	Changes in common stock equity during the six months ended March 31, 2018 , 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, 2017 86,556 $ 222,258 $ 219,696 $ (3,256 ) $ (70,039 ) $ 867,984 $ 1,236,643 Net income 263,965 263,965 Other comprehensive loss (10,532 ) (10,532 ) Common stock issued: Incentive plan 555 1,531 14,998 16,529 Dividend reinvestment plan (1) 242 172 9,583 9,755 Waiver discount 554 1,384 21,306 22,690 Cash dividend declared ($.545 per share) (47,717 ) (47,717 ) Treasury stock and other (251 ) (14 ) (23,945 ) (23,959 ) Balance at March 31, 2018 87,656 $ 225,173 $ 256,158 $ (13,788 ) $ (84,401 ) $ 1,084,232 $ 1,467,374 (1) Shares sold through the DRP are issued from treasury stock at average cost, which may differ from the actual market price paid.
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the three months ended March 31, 2018 and 2017 : (Thousands) Available for Sale Securities Postemployment Benefit Obligation Total Balance at December 31, 2017 $ 5,600 $ (14,060 ) $ (8,460 ) Other comprehensive (loss) income, net of tax Other comprehensive (loss),before reclassifications, net of tax of $7,366, $0, $7,366 (20,401 ) — (20,401 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $(3,036), $(104), $(3,140) 14,801 272 (1) 15,073 Net current-period other comprehensive (loss) income, net of tax of $4,330, $(104), $4,226 (5,600 ) 272 (5,328 ) Balance at March 31, 2018 $ — $ (13,788 ) $ (13,788 ) Balance at December 31, 2016 $ 9,713 $ (19,036 ) $ (9,323 ) Other comprehensive income, net of tax Other comprehensive income, before reclassifications, net of tax of $(1,808), $0, $(1,808) 3,054 — 3,054 Amounts reclassified from accumulated other comprehensive (loss) income, net of tax of $1,138, $(217), $921 (1,646 ) 318 (1) (1,328 ) Net current-period other comprehensive income, net of tax of $(670), $(217), $(887) 1,408 318 1,726 Balance as of March 31, 2017 $ 11,121 $ (18,718 ) $ (7,597 ) 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, 2018 and 2017 : (Thousands) Available for Sale Securities Postemployment Benefit Obligation Total Balance at September 30, 2017 $ 11,044 $ (14,300 ) $ (3,256 ) Other comprehensive (loss) income, net of tax Other comprehensive (loss), before reclassifications, net of tax of $8,217, $0, $8,217 (22,691 ) — (22,691 ) Amounts reclassified from accumulated other comprehensive (loss) income, net of tax of $(858), $(240), $(1,098) 11,647 512 (1) 12,159 Net current-period other comprehensive (loss) income, net of tax of $7,359, $(240), $7,119 (11,044 ) 512 (10,532 ) Balance at March 31, 2018 $ — $ (13,788 ) $ (13,788 ) Balance as of 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, $(6,648) 10,096 — 10,096 Amounts reclassified from accumulated other comprehensive (loss) income, net of tax of $2,192, $(434), $1,758 (3,173 ) 635 (1) (2,538 ) Net current-period other comprehensive income, net of tax of $(4,456), $(434), $(4,890) 6,923 635 7,558 Balance as of March 31, 2017 $ 11,121 $ (18,718 ) $ (7,597 ) (1) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations.

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Mar. 31, 2018
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 $ 150,900 $ 255,000 Weighted average interest rate at end of period 2.60 % 2.14 % Amount available at end of period (2) $ 263,326 $ 156,601 Bank revolving credit facilities (1) $ 100,000 $ — April 2018 Amount available at end of period $ 100,000 $ — NJNG Bank revolving credit facilities (1) $ 250,000 $ 250,000 May 2019 Commercial paper outstanding at end of period $ — $ 11,000 Weighted average interest rate at end of period — % 1.13 % Amount available at end of period (3) $ 249,269 $ 238,269 (1) Committed credit facilities, which require commitment fees on the unused amounts. (2) Letters of credit outstanding total $10.8 million and $13.4 million for March 31, 2018 and September 30, 2017 , respectively, which reduces amount available by the same amount. (3) Letters of credit outstanding total $731,000 for both March 31, 2018 and September 30, 2017 , which reduces the amount available by the same amount.

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	6 Months Ended
	Mar. 31, 2018
Retirement Benefits [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) 2018 2017 2018 2017 2018 2017 2018 2017 Service cost $ 2,034 $ 2,087 $ 4,069 $ 4,174 $ 1,151 $ 1,095 $ 2,303 $ 2,190 Interest cost 2,624 2,442 5,247 4,885 1,591 1,387 3,182 2,773 Expected return on plan assets (4,909 ) (4,828 ) (9,819 ) (9,656 ) (1,338 ) (1,191 ) (2,676 ) (2,383 ) Recognized actuarial loss 1,885 2,206 3,769 4,413 1,165 1,092 2,330 2,185 Prior service cost amortization 26 28 53 55 (91 ) (91 ) (182 ) (182 ) Net periodic benefit cost $ 1,660 $ 1,935 $ 3,319 $ 3,871 $ 2,478 $ 2,292 $ 4,957 $ 4,583

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The decrease of our net deferred tax liability, that was recognized on the Unaudited Condensed Consolidated Statements of Operations, for the remaining entities was as follows: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2018 2018 Income tax (benefit) provision Clean Energy Ventures $ (445 ) $ (63,102 ) Energy Services (1,456 ) 7,651 Midstream 185 (13,804 ) Home Services and Other 749 10,723 Total $ (967 ) $ (58,532 )

COMMITMENTS AND CONTINGENT LI35

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	6 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Long-term Purchase Commitment	Commitments as of March 31, 2018 , for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2018 2019 2020 2021 2022 Thereafter Energy Services: Natural gas purchases $ 256,179 $ 134,005 $ 20,506 $ 11,112 $ — $ — Storage demand fees 19,299 30,207 17,581 11,137 6,053 3,521 Pipeline demand fees 36,071 55,988 42,807 25,143 21,039 22,563 Sub-total Energy Services $ 311,549 $ 220,200 $ 80,894 $ 47,392 $ 27,092 $ 26,084 NJNG: Natural gas purchases $ 40,088 $ 41,715 $ 39,370 $ 37,655 $ 38,684 $ 80,788 Storage demand fees 15,479 31,362 24,245 14,243 12,922 15,070 Pipeline demand fees 39,002 79,503 105,514 92,880 91,508 671,743 Sub-total NJNG $ 94,569 $ 152,580 $ 169,129 $ 144,778 $ 143,114 $ 767,601 Total $ 406,118 $ 372,780 $ 250,023 $ 192,170 $ 170,206 $ 793,685

REPORTING SEGMENT AND OTHER O36

REPORTING SEGMENT AND OTHER OPERATIONS DATA (Tables)	6 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Information related to the Company's various reporting segments and other operations is detailed below: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2018 2017 2018 2017 Operating revenues Natural Gas Distribution External customers $ 317,064 $ 295,546 $ 526,851 $ 481,102 Clean Energy Ventures External customers 12,866 12,943 26,862 20,510 Energy Services External customers (1) 681,475 417,608 1,153,646 756,538 Intercompany 43,838 2,679 49,648 930 Subtotal 1,055,243 728,776 1,757,007 1,259,080 Home Services and Other External customers 7,638 7,449 16,989 16,424 Intercompany 623 1,055 1,229 2,086 Eliminations (44,461 ) (3,734 ) (50,877 ) (3,016 ) Total $ 1,019,043 $ 733,546 $ 1,724,348 $ 1,274,574 Depreciation and amortization Natural Gas Distribution $ 13,353 $ 12,263 $ 26,136 $ 24,293 Clean Energy Ventures 8,928 7,923 17,863 14,964 Energy Services (2) 15 17 29 33 Midstream 2 2 3 3 Subtotal 22,298 20,205 44,031 39,293 Home Services and Other 189 199 377 420 Eliminations (27 ) (76 ) (94 ) (125 ) Total $ 22,460 $ 20,328 $ 44,314 $ 39,588 Interest income (3) Natural Gas Distribution $ 131 $ 97 $ 250 $ 172 Energy Services 106 — 106 — Midstream 771 512 1,435 974 Subtotal 1,008 609 1,791 1,146 Home Services and Other 354 132 558 253 Eliminations (1,168 ) (633 ) (2,099 ) (1,216 ) Total $ 194 $ 108 $ 250 $ 183 (1) Includes sales to Canada, which accounted for .01 and 1.5 percent of total operating revenues during the six months ended March 31, 2018 and 2017 , respectively. (2) The amortization of acquired wholesale energy contracts is included in gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations. (3) Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2018 2017 2018 2017 Interest expense, net of capitalized interest Natural Gas Distribution $ 6,523 $ 6,392 $ 13,059 $ 13,216 Clean Energy Ventures 4,344 4,055 8,552 7,379 Energy Services 1,203 716 2,460 1,287 Midstream 385 414 694 470 Subtotal 12,455 11,577 24,765 22,352 Home Services and Other 21 123 111 197 Eliminations (678 ) (264 ) (1,173 ) (498 ) Total $ 11,798 $ 11,436 $ 23,703 $ 22,051 Income tax provision (benefit) Natural Gas Distribution $ 17,991 $ 30,499 $ 29,695 $ 45,386 Clean Energy Ventures (12,722 ) (24,756 ) (86,710 ) (36,643 ) Energy Services 23,965 16,277 37,708 13,101 Midstream 3,131 1,502 (9,712 ) 3,151 Subtotal 32,365 23,522 (29,019 ) 24,995 Home Services and Other (1,281 ) 1,066 10,417 821 Eliminations (183 ) (656 ) (665 ) 134 Total $ 30,901 $ 23,932 $ (19,267 ) $ 25,950 Equity in earnings of affiliates Midstream $ 4,068 $ 6,119 $ 8,197 $ 9,450 Eliminations (875 ) (1,040 ) (1,740 ) (2,060 ) Total $ 3,193 $ 5,079 $ 6,457 $ 7,390 Net financial earnings (loss) Natural Gas Distribution $ 60,442 $ 60,233 $ 94,551 $ 90,581 Clean Energy Ventures 10,051 22,743 81,301 25,585 Energy Services 72,832 15,746 93,106 19,233 Midstream 1,315 4,948 18,826 7,335 Subtotal 144,640 103,670 287,784 142,734 Home Services and Other (2,488 ) 708 (10,204 ) 2,250 Eliminations (90 ) (272 ) (185 ) (495 ) Total $ 142,062 $ 104,106 $ 277,395 $ 144,489 Capital expenditures Natural Gas Distribution $ 55,397 $ 34,744 $ 102,787 $ 73,599 Clean Energy Ventures 40,605 43,120 58,992 89,905 Subtotal 96,002 77,864 161,779 163,504 Home Services and Other 1,846 345 3,159 516 Total $ 97,848 $ 78,209 $ 164,938 $ 164,020 Investments in equity investees Midstream $ 3,975 $ 5,902 $ 11,177 $ 10,538 Total $ 3,975 $ 5,902 $ 11,177 $ 10,538
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) 2018 2017 2018 2017 Net financial earnings (1) $ 142,062 $ 104,106 $ 277,395 $ 144,489 Less: Unrealized (gain) loss on derivative instruments and related transactions (11,608 ) (54,855 ) 23,246 (26,553 ) Tax effect 4,716 19,679 (3,343 ) 9,922 Effects of economic hedging related to natural gas inventory 6,125 34,328 (19,262 ) 16,389 Tax effect (1,715 ) (12,334 ) 6,529 (6,130 ) Net income to NFE tax adjustment 4,278 2,586 6,260 1,230 Net income (1) $ 140,266 $ 114,702 $ 263,965 $ 149,631 (1) Includes income tax benefit related to the Tax Act of $967,000 and $58.5 million , for the three and six months ended March 31, 2018 , respectively.
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 $ 2,567,347 $ 2,519,578 Clean Energy Ventures (1) 812,789 771,340 Energy Services 366,322 398,277 Midstream 227,101 232,806 Subtotal 3,973,559 3,922,001 Home Services and Other 107,415 114,801 Intercompany assets (2) (120,234 ) (108,295 ) Total $ 3,960,740 $ 3,928,507 (1) Includes assets held for sale of $224.9 million . (2) 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, 2018
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) 2018 2017 2018 2017 Natural Gas Distribution $ 1,407 $ 1,383 $ 2,855 $ 2,793 Energy Services 680 689 1,381 1,390 Total $ 2,087 $ 2,072 $ 4,236 $ 4,183 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) March 31, September 30, Natural Gas Distribution $ 775 $ 775 Energy Services 376 377 Total $ 1,151 $ 1,152

NATURE OF THE BUSINESS (Details

NATURE OF THE BUSINESS (Details) shares in Thousands	6 Months Ended
	Mar. 31, 2018subsidiarycustomershares	Sep. 30, 2015shares
Common Units
Nature of Business [Line Items]
Ownership interest exchanged (in shares) | shares	1,840	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%
Natural Gas Distribution
Nature of Business [Line Items]
Total retail customers | customer	536,900
NJR Retail Holdings Corporation
Nature of Business [Line Items]
Number of principal subsidiaries | subsidiary	2

SUMMARY OF SIGNIFICANT ACCOUN39

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - GAS IN STORAGE (Details) $ in Thousands	Mar. 31, 2018USD ($)Bcf	Sep. 30, 2017USD ($)Bcf
Inventory [Line Items]
Gas in Storage, value | $	$ 71,169	$ 202,063
Gas in Storage, Bcf | Bcf	23.3	75.7
Energy Services
Inventory [Line Items]
Gas in Storage, value | $	$ 51,915	$ 122,884
Gas in Storage, Bcf | Bcf	18.6	53.9
Natural Gas Distribution
Inventory [Line Items]
Gas in Storage, value | $	$ 19,254	$ 79,179
Gas in Storage, Bcf | Bcf	4.7	21.8

SUMMARY OF SIGNIFICANT ACCOUN40

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SALES TAX ACCOUNTING (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018	Jan. 01, 2017
Principal Transaction Revenue [Line Items]
Sales tax	$ 18.7	$ 16.9	$ 31.9	$ 28.1
NEW JERSEY
Principal Transaction Revenue [Line Items]
State sales tax, percent		7.00%		7.00%	6.625%	6.875%

SUMMARY OF SIGNIFICANT ACCOUN41

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - AVAILABLE FOR SALE SECURITIES (Details) - USD ($) shares in Thousands, $ in Thousands	Mar. 15, 2018	Sep. 30, 2015	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sale of available for sale securities			$ 3,400	$ 6,616	$ 6,639
Pre-tax gain on sale of available-for-sale securities			$ 2,800	5,300	$ 5,400
Impairment of available for sale securities				17,800
Other than temporary impairment, net of tax	$ 14,800
Available for sale securities				28,228		$ 65,752
Deferred gain, unamortized balance				(6,800)
Unrealized gain						12,800
Unrealized gain, net of tax						$ 7,700
Fair Value, Measurements, Nonrecurring
Schedule of Available-for-sale Securities [Line Items]
Impairment of available for sale securities				17,838
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Nonrecurring
Schedule of Available-for-sale Securities [Line Items]
Impairment of available for sale securities				$ 17,838
Common Units
Schedule of Available-for-sale Securities [Line Items]
Ownership interest exchanged (in shares)		1,840		1,840
Deferred gain		$ 24,600

SUMMARY OF SIGNIFICANT ACCOUN42

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CUSTOMER ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Billed	$ 298,824	$ 196,467
Receivable by subsidiary, percentage	100.00%	100.00%
Unbilled revenues	$ 55,405	$ 7,202
Energy Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Billed	$ 179,218	$ 150,322
Receivable by subsidiary, percentage	60.00%	77.00%
Natural Gas Distribution
Accounts, Notes, Loans and Financing Receivable [Line Items]
Billed	$ 112,884	$ 37,432
Receivable by subsidiary, percentage	38.00%	19.00%
Clean Energy Ventures
Accounts, Notes, Loans and Financing Receivable [Line Items]
Billed	$ 2,834	$ 2,655
Receivable by subsidiary, percentage	1.00%	1.00%
NJRHS and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Billed	$ 3,888	$ 6,058
Receivable by subsidiary, percentage	1.00%	3.00%

SUMMARY OF SIGNIFICANT ACCOUN43

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - LOAN RECEIVABLE (Details) - USD ($)	6 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable in other current assets	$ 9,900,000	$ 8,900,000
Loans receivable in other noncurrent assets	$ 40,300,000	40,400,000
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	3 years
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan term	10 years

SUMMARY OF SIGNIFICANT ACCOUN44

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands	Mar. 02, 2018	Mar. 31, 2018	Sep. 30, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Property, plant and equipment - wind equipment, at cost		$ 3,091,779	$ 3,211,070
Prepaid and accrued taxes		14,395	24,764
Other noncurrent assets		69,549	74,818
Assets held for sale		224,898	$ 0
Clean Energy Ventures | 9.7 MW Wind Farm
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal group consideration	$ 18,500
Gain on disposal, expected	$ 1,000
Clean Energy Ventures | Wind Assets And Related Liabilities
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Property, plant and equipment - wind equipment, at cost		244,972
Property, plant and equipment - accumulated depreciation, wind equipment		(21,561)
Prepaid and accrued taxes		1,226
Other noncurrent assets		261
Assets held for sale		224,900
Asset retirement obligation		$ 4,262

REGULATION - REGULATORY ASSETS

REGULATION - REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	$ 15,051	$ 50,791
Regulatory assets-noncurrent	352,152	375,919
Regulatory liability-current	29,169	78
Regulatory liabilities-noncurrent	217,510	14,507
Conservation Incentive Program
Regulatory Assets And Liabilities [Line Items]
Regulatory liability-current	229	0
Deferred income taxes
Regulatory Assets And Liabilities [Line Items]
Regulatory liabilities-noncurrent	210,500	0
Derivatives at fair value, net
Regulatory Assets And Liabilities [Line Items]
Regulatory liability-current	62	78
Regulatory liabilities-noncurrent	0	146
Customer refund payable
Regulatory Assets And Liabilities [Line Items]
Regulatory liability-current	28,878	0
Cost of removal obligation
Regulatory Assets And Liabilities [Line Items]
Regulatory liabilities-noncurrent	0	7,902
New Jersey Clean Energy Program
Regulatory Assets And Liabilities [Line Items]
Regulatory liabilities-noncurrent	5,914	5,795
Other noncurrent regulatory liabilities
Regulatory Assets And Liabilities [Line Items]
Regulatory liabilities-noncurrent	1,096	664
New Jersey Clean Energy Program
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	5,690	14,202
Underrecovered gas costs
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	7,549	9,910
Derivatives at fair value, net
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	1,812	9,010
Conservation Incentive Program
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-current	0	17,669
Expended, net of recoveries
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	28,868	28,547
Liability for future expenditures
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	142,474	149,000
Deferred income taxes
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	16,773	21,795
SAVEGREEN
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	7,549	16,302
Postemployment and other benefit costs
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	135,930	141,433
Deferred storm damage costs
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	11,944	13,030
Other noncurrent regulatory assets
Regulatory Assets And Liabilities [Line Items]
Regulatory assets-noncurrent	$ 8,614	$ 5,812

REGULATION - REGULATORY FILINGS

REGULATION - REGULATORY FILINGS (Details) - USD ($) $ in Millions	Mar. 29, 2018	Mar. 28, 2018	Mar. 26, 2018	Mar. 01, 2018	Nov. 01, 2017	Mar. 31, 2018
SAVEGREEN
Schedule of Regulatory Filings [Line Items]
Approved rate increase (decrease), amount					$ (3.9)
Requested capital investments		$ 341
RAC
Schedule of Regulatory Filings [Line Items]
Requested rate increase (decrease), amount						$ (2.4)
NJCEP
Schedule of Regulatory Filings [Line Items]
Requested rate increase (decrease), amount						1.8
March 2018 Required BPU Filing
Schedule of Regulatory Filings [Line Items]
Requested rate increase (decrease), amount				$ (19.7)
Requested customer refunds, amount				$ 31
March 2018 Annual Petition BPU Filing
Schedule of Regulatory Filings [Line Items]
Requested rate increase (decrease), amount	$ 6.9
Natural Gas Distribution
Schedule of Regulatory Filings [Line Items]
Tax Cuts and Jobs Act of 2017, regulatory liability						228.4
Tax Cuts and Jobs Act of 2017, revaluation of deferred income taxes, provisional liability						164.3
Tax Cuts and Jobs Act of 2017, income tax effects on revaluation, provisional liability						$ 64.1
Conservation Incentive Program | March 2018 BGSS/CIP Filing
Schedule of Regulatory Filings [Line Items]
Approved rate increase (decrease), amount			$ (16.2)
Increase (decrease) in annual revenues			$ 3.7

DERIVATIVE INSTRUMENTS - BALANC

DERIVATIVE INSTRUMENTS - BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($)	Mar. 13, 2018	Mar. 31, 2018	Jan. 26, 2018	Sep. 30, 2017	Aug. 18, 2017	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		$ 26,897,000		$ 30,081,000
Derivative liabilities, current		44,792,000		46,544,000
Derivative assets, noncurrent		13,616,000		9,164,000
Derivative liabilities, noncurrent		23,603,000		11,330,000
Derivative assets		40,513,000		39,245,000
Derivative liabilities		68,395,000		57,874,000
Foreign currency contracts
Derivatives, Fair Value [Line Items]
Notional amount of foreign currency derivatives		8,800,000
Treasury Lock
Derivatives, Fair Value [Line Items]
Benchmark interest rate						3.26%
Notional amount of foreign currency derivatives						$ 125,000,000
Treasury lock settlement, loss	$ 2,600,000
Natural Gas Distribution | Not Designated as Hedging Instrument | Physical commodity contracts
Fair Value
Derivative assets, current		88,000		151,000
Derivative liabilities, current		26,000		72,000
Natural Gas Distribution | Not Designated as Hedging Instrument | Financial commodity contracts
Fair Value
Derivative assets, current		375,000		0
Derivative liabilities, current		134,000		1,149,000
Natural Gas Distribution | Not Designated as Hedging Instrument | Interest rate contracts
Fair Value
Derivative assets, current		0		0
Derivative liabilities, current		0		8,467,000
Natural Gas Distribution | Series Ll
Derivatives, Fair Value [Line Items]
Debt issued		$ 125,000,000
Interest rate, stated percentage		5.60%
Energy Services | Not Designated as Hedging Instrument | Physical commodity contracts
Fair Value
Derivative assets, current		$ 6,036,000		14,588,000
Derivative liabilities, current		16,274,000		16,589,000
Derivative assets, noncurrent		1,249,000		7,127,000
Derivative liabilities, noncurrent		14,963,000		8,710,000
Energy Services | Not Designated as Hedging Instrument | Financial commodity contracts
Fair Value
Derivative assets, current		20,398,000		15,302,000
Derivative liabilities, current		28,247,000		20,267,000
Derivative assets, noncurrent		12,232,000		2,033,000
Derivative liabilities, noncurrent		8,537,000		2,620,000
Energy Services | Not Designated as Hedging Instrument | Foreign currency contracts
Fair Value
Derivative assets, current		0		40,000
Derivative liabilities, current		97,000		0
Derivative assets, noncurrent		0		4,000
Derivative liabilities, noncurrent		103,000		0
Home Services and Other | Not Designated as Hedging Instrument | Physical commodity contracts
Fair Value
Derivative assets, noncurrent		135,000		0
Derivative liabilities, noncurrent		0		0
Home Services and Other | Not Designated as Hedging Instrument | Interest rate contracts
Fair Value
Derivative assets, current		0		0
Derivative liabilities, current		$ 14,000		$ 0
Term Loan | Credit Agreement Due August 16, 2019
Derivatives, Fair Value [Line Items]
Debt issued					$ 100,000,000
Weighted average interest rate at end of period			2.84%

DERIVATIVE INSTRUMENTS - OFFSET

DERIVATIVE INSTRUMENTS - OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Financial commodity contracts
Derivative assets:
Amounts Presented in Balance Sheets	$ 375
Offsetting Derivative Instruments	(134)
Financial Collateral Received/Pledged	0
Net Amounts	241
Energy Services
Derivative assets:
Amounts Presented in Balance Sheets	39,915	$ 39,094
Offsetting Derivative Instruments	(21,934)	(16,294)
Financial Collateral Received/Pledged	(808)	(200)
Net Amounts	17,173	22,600
Derivative liabilities:
Amounts Presented in Balance Sheets	68,221	48,186
Offsetting Derivative Instruments	(21,395)	(16,294)
Financial Collateral Received/Pledged	(16,757)	(8,766)
Net Amounts	30,069	23,126
Energy Services | Physical commodity contracts
Derivative assets:
Amounts Presented in Balance Sheets	7,285	21,715
Offsetting Derivative Instruments	(1,903)	(2,173)
Financial Collateral Received/Pledged	(200)	(200)
Net Amounts	5,182	19,342
Derivative liabilities:
Amounts Presented in Balance Sheets	31,237	25,299
Offsetting Derivative Instruments	(1,903)	(2,173)
Financial Collateral Received/Pledged	0	0
Net Amounts	29,334	23,126
Energy Services | Financial commodity contracts
Derivative assets:
Amounts Presented in Balance Sheets	32,630	17,335
Offsetting Derivative Instruments	(20,031)	(14,121)
Financial Collateral Received/Pledged	(608)	0
Net Amounts	11,991	3,214
Derivative liabilities:
Amounts Presented in Balance Sheets	36,784	22,887
Offsetting Derivative Instruments	(19,492)	(14,121)
Financial Collateral Received/Pledged	(16,757)	(8,766)
Net Amounts	535	0
Energy Services | Foreign currency contracts
Derivative assets:
Amounts Presented in Balance Sheets		44
Offsetting Derivative Instruments		0
Financial Collateral Received/Pledged		0
Net Amounts		44
Derivative liabilities:
Amounts Presented in Balance Sheets	200
Offsetting Derivative Instruments	0
Financial Collateral Received/Pledged	0
Net Amounts	200
Natural Gas Distribution
Derivative assets:
Amounts Presented in Balance Sheets	463	151
Offsetting Derivative Instruments	(139)	(20)
Financial Collateral Received/Pledged	0	0
Net Amounts	324	131
Derivative liabilities:
Amounts Presented in Balance Sheets	160	9,688
Offsetting Derivative Instruments	(139)	(20)
Financial Collateral Received/Pledged	0	(1,149)
Net Amounts	21	8,519
Natural Gas Distribution | Physical commodity contracts
Derivative assets:
Amounts Presented in Balance Sheets	88	151
Offsetting Derivative Instruments	(5)	(20)
Financial Collateral Received/Pledged	0	0
Net Amounts	83	131
Derivative liabilities:
Amounts Presented in Balance Sheets	26	72
Offsetting Derivative Instruments	(5)	(20)
Financial Collateral Received/Pledged	0	0
Net Amounts	21	52
Natural Gas Distribution | Financial commodity contracts
Derivative liabilities:
Amounts Presented in Balance Sheets	134	1,149
Offsetting Derivative Instruments	(134)	0
Financial Collateral Received/Pledged	0	(1,149)
Net Amounts	0	0
Natural Gas Distribution | Interest rate contracts
Derivative liabilities:
Amounts Presented in Balance Sheets		8,467
Offsetting Derivative Instruments		0
Financial Collateral Received/Pledged		0
Net Amounts		$ 8,467
Home Services and Other
Derivative assets:
Amounts Presented in Balance Sheets	135
Offsetting Derivative Instruments	(14)
Financial Collateral Received/Pledged	0
Net Amounts	121
Derivative liabilities:
Amounts Presented in Balance Sheets	14
Offsetting Derivative Instruments	(14)
Financial Collateral Received/Pledged	0
Net Amounts	0
Home Services and Other | Physical commodity contracts
Derivative assets:
Amounts Presented in Balance Sheets	135
Offsetting Derivative Instruments	(14)
Financial Collateral Received/Pledged	0
Net Amounts	121
Home Services and Other | Interest rate contracts
Derivative liabilities:
Amounts Presented in Balance Sheets	14
Offsetting Derivative Instruments	(14)
Financial Collateral Received/Pledged	0
Net Amounts	$ 0

DERIVATIVE INSTRUMENTS - INCOME

DERIVATIVE INSTRUMENTS - INCOME STATEMENT RELATED DISCLOSURES (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Energy Services
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	$ (42,925)	$ 39,174	$ (90,457)	$ 1,421
Energy Services | Physical commodity contracts | Operating revenues
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	(11,952)	4,982	(10,742)	6,725
Energy Services | Physical commodity contracts | Gas purchases
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	(44,646)	(3,982)	(67,343)	(12,781)
Energy Services | Financial commodity contracts | Gas purchases
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	13,767	38,121	(12,230)	7,510
Energy Services | Foreign currency contracts | Gas purchases
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	(215)	53	(263)	(33)
Natural Gas Distribution
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	6,887	(5,888)	(8,964)	26,711
Natural Gas Distribution | Physical commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	(12,879)	(3,780)	(15,855)	(2,730)
Natural Gas Distribution | Financial commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	7,232	(418)	(1,576)	10,760
Natural Gas Distribution | Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	12,534	(1,690)	8,467	18,681
NJRHS and other | Interest rate contracts | Interest Expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	$ 121	$ 0	$ 121	$ 0

DERIVATIVE INSTRUMENTS - VOLUME

DERIVATIVE INSTRUMENTS - VOLUME (Details) certificate in Thousands	Mar. 31, 2018USD ($)Bcfcertificate	Sep. 30, 2017Bcf	Jun. 01, 2015USD ($)
Derivative [Line Items]
Derivative, notional amount | $			$ 125,000,000
Foreign currency contracts
Derivative [Line Items]
Derivative, notional amount | $	$ 8,800,000
Natural Gas Distribution | Long | Futures
Derivative [Line Items]
Outsanding long (short) derivatives, Volume	24.9	18.2
Natural Gas Distribution | Long | Physical
Derivative [Line Items]
Outsanding long (short) derivatives, Volume	33.2	32.1
Energy Services | Physical commodity contracts
Derivative [Line Items]
Number of SRECs | certificate	567
Energy Services | Short | Futures
Derivative [Line Items]
Outsanding long (short) derivatives, Volume	(13)	(16.4)
Energy Services | Short | Physical
Derivative [Line Items]
Outsanding long (short) derivatives, Volume	36.5	(13.1)

DERIVATIVE INSTRUMENTS - BROKER

DERIVATIVE INSTRUMENTS - BROKER MARGIN DEPOSITS (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Natural Gas Distribution
Derivative [Line Items]
Broker margin - Current assets	$ 3,612	$ 2,661
Energy Services
Derivative [Line Items]
Broker margin - Current assets	$ 56,358	$ 23,166

DERIVATIVE INSTRUMENTS - CREDIT

DERIVATIVE INSTRUMENTS - CREDIT RISK EXPOSURE (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Credit Risk Exposure [Line Items]
Gross Credit Exposure	$ 264,201
Derivative, net liability position, aggregate fair value	1,000	$ 8,700
Additional collateral, aggregate fair value	1,000	$ 8,600
Investment grade
Credit Risk Exposure [Line Items]
Gross Credit Exposure	175,076
Noninvestment grade
Credit Risk Exposure [Line Items]
Gross Credit Exposure	21,228
Internally rated investment grade
Credit Risk Exposure [Line Items]
Gross Credit Exposure	20,818
Internally rated noninvestment grade
Credit Risk Exposure [Line Items]
Gross Credit Exposure	$ 47,079

- DEBT (Details)

- DEBT (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Capital leases	$ 41,800	$ 39,700
Level 2 | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,097,045	1,097,045
Level 2 | Fair market value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,084,268	1,107,676
Natural Gas Distribution
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Issuance Costs, Gross	6,100	6,300
NJR
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Issuance Costs, Gross	$ 768	$ 770

FAIR VALUE - HIERARCHY (Details

FAIR VALUE - HIERARCHY (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 40,513	$ 39,245
Liabilities	68,395	57,874
Impairment of available for sale securities	17,800
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale equity securities - energy industry	28,228	65,752
Other	1,214	1,202
Total assets at fair value	69,955	106,199
Total liabilities at fair value	68,395	57,874
Fair Value, Measurements, Recurring | Physical commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	7,373	21,866
Liabilities	31,263	25,371
Fair Value, Measurements, Recurring | Financial commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	33,005	17,335
Liabilities	36,918	24,036
Fair Value, Measurements, Recurring | Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		44
Liabilities	200
Fair Value, Measurements, Recurring | Interest rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	135
Liabilities	14	8,467
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	28,228	65,752
Other	1,214	1,202
Total assets at fair value	49,885	84,289
Total liabilities at fair value	36,353	24,036
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	20,443	17,335
Liabilities	36,353	24,036
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
Liabilities	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]
Assets	0
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	20,070	21,910
Total liabilities at fair value	32,042	33,838
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	7,373	21,866
Liabilities	31,263	25,371
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	12,562
Liabilities	565	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		44
Liabilities	200
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]
Assets	135
Liabilities	14	8,467
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
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
Liabilities	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]
Assets	0
Liabilities	0	0
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of available for sale securities	17,838
Total liabilities at fair value	17,838
Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets for Identical Assets, (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of available for sale securities	17,838
Total liabilities at fair value	17,838
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of available for sale securities	0
Total liabilities at fair value	0
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of available for sale securities	0
Total liabilities at fair value	0
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	$ 11	$ 112

(Details)

(Details) $ in Thousands	6 Months Ended
	Mar. 31, 2018USD ($)mi	Sep. 30, 2017USD ($)
Schedule of Equity Method Investments [Line Items]
Investments in equity investees	$ 183,884	$ 172,585
Steckman Ridge
Schedule of Equity Method Investments [Line Items]
Investments in equity investees	118,875	120,262
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	$ 65,009	$ 52,323
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, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income (loss), as reported	$ 140,266	$ 114,702	$ 263,965	$ 149,631
Basic earnings per share
Weighted average shares of common stock outstanding-basic (shares)	87,595,000	86,275,000	87,295,000	86,182,000
Basic earnings per common share (usd per share)	$ 1.60	$ 1.33	$ 3.02	$ 1.74
Diluted earnings per share
Weighted average shares of common stock outstanding-basic (shares)	87,595,000	86,275,000	87,295,000	86,182,000
Incremental shares	394,000	826,000	395,000	811,000
Weighted average shares of common stock outstanding-diluted (shares)	87,989,000	87,101,000	87,690,000	86,993,000
Diluted (loss) earnings per common share (usd per share)	$ 1.59	$ 1.32	$ 3.01	$ 1.72
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	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Equity [Abstract]
Equity raised through the DRP	$ 9.9	$ 9.7
Number of treasury shares issued from raising of equity through the DRP	242	279
Equity raised through the DRP waiver discount feature	$ 22.7
Shares issued through the DRP waiver discount feature (in shares)	554

COMMON STOCK EQUITY - CHANGE IN

COMMON STOCK EQUITY - CHANGE IN COMMON STOCK EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance as of beginning of period (shares)			86,555,507
Balance as of beginning of period			$ 1,236,643
Net income	$ 140,266	$ 114,702	263,965	$ 149,631
Other comprehensive income	$ (5,328)	$ 1,726	(10,532)	$ 7,558
Common stock issued:
Incentive plan			$ 16,529
Dividend reinvestment plan (in shares)			242,000	279,000
Dividend reinvestment plan			$ 9,755
Waiver discount (in shares)			554,000
Waiver discount			$ 22,690
Cash dividend declared ($.545 per share)			(47,717)
Treasury stock and other			$ (23,959)
Balance as of end of period (shares)	87,656,004		87,656,004
Balance as of end of period	$ 1,467,374		$ 1,467,374
Cash dividend declared per share (usd per share)	$ 0.2725000	$ 0.255	$ 0.545	$ 0.51
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance as of beginning of period (shares)			86,556,000
Balance as of beginning of period			$ 222,258
Common stock issued:
Incentive plan (in shares)			555,000
Incentive plan			$ 1,531
Dividend reinvestment plan (in shares)			242,000
Waiver discount (in shares)			554,000
Waiver discount			$ 1,384
Treasury stock and other (shares)			(251,000)
Balance as of end of period (shares)	87,656,000		87,656,000
Balance as of end of period	$ 225,173		$ 225,173
Premium on Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance as of beginning of period			219,696
Common stock issued:
Incentive plan			14,998
Dividend reinvestment plan			172
Waiver discount			21,306
Treasury stock and other			(14)
Balance as of end of period	256,158		256,158
Accumulated Other Comprehensive (Loss) Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance as of beginning of period	(8,460)	$ (9,323)	(3,256)	$ (15,155)
Other comprehensive income			(10,532)
Common stock issued:
Balance as of end of period	(13,788)	$ (7,597)	(13,788)	$ (7,597)
Treasury Stock And Other
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance as of beginning of period			(70,039)
Common stock issued:
Dividend reinvestment plan			9,583
Treasury stock and other			(23,945)
Balance as of end of period	(84,401)		(84,401)
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance as of beginning of period			867,984
Net income			263,965
Common stock issued:
Cash dividend declared ($.545 per share)			(47,717)
Balance as of end of period	$ 1,084,232		$ 1,084,232

COMMON STOCK EQUITY - ACCUMULAT

COMMON STOCK EQUITY - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance as of beginning of period			$ 1,236,643
Other comprehensive income (loss), before reclassifications, net of tax	$ (20,401)	$ (3,054)	(22,691)	$ 10,096
Amounts reclassified from accumulated other comprehensive income, net of tax	15,073	1,328	12,159	(2,538)
Other comprehensive (loss) income	(5,328)	(1,726)	(10,532)	7,558
Balance as of end of period	1,467,374		1,467,374
Available for Sale Securities
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance as of beginning of period	5,600	9,713	11,044	4,198
Other comprehensive income (loss), before reclassifications, net of tax	(20,401)	(3,054)	(22,691)	10,096
Amounts reclassified from accumulated other comprehensive income, net of tax	14,801	1,646	11,647	(3,173)
Other comprehensive (loss) income	(5,600)	(1,408)	(11,044)	6,923
Balance as of end of period	0	11,121	0	11,121
Tax on other comprehensive income (loss) before reclassifications	(7,366)	1,808	(8,217)	6,648
Tax on amounts reclassified from accumulated other comprehensive income	3,036	(1,138)	858	(2,192)
Tax on net current-period other comprehensive income (loss)	(4,330)	670	(7,359)	4,456
Postemployment Benefit Obligation
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance as of beginning of period	(14,060)	(19,036)	(14,300)	(19,353)
Other comprehensive income (loss), before reclassifications, net of tax	0	0	0	0
Amounts reclassified from accumulated other comprehensive income, net of tax	272	(318)	512	635
Other comprehensive (loss) income	272	(318)	512	635
Balance as of end of period	(13,788)	(18,718)	(13,788)	(18,718)
Tax on other comprehensive income (loss) before reclassifications	0	0	0	0
Tax on amounts reclassified from accumulated other comprehensive income	104	217	240	434
Tax on net current-period other comprehensive income (loss)	104	217	240	434
Total
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
Balance as of beginning of period	(8,460)	(9,323)	(3,256)	(15,155)
Balance as of end of period	(13,788)	(7,597)	(13,788)	(7,597)
Tax on other comprehensive income (loss) before reclassifications	(7,366)	1,808	(8,217)	6,648
Tax on amounts reclassified from accumulated other comprehensive income	3,140	(921)	1,098	(1,758)
Tax on net current-period other comprehensive income (loss)	$ (4,226)	$ 887	$ (7,119)	$ 4,890

DEBT - CREDIT FACILITIES (Detai

DEBT - CREDIT FACILITIES (Details) - USD ($)	6 Months Ended
	Mar. 31, 2018	Jan. 19, 2018	Dec. 14, 2017	Sep. 30, 2017
Letter of Credit
Line of Credit Facility [Line Items]
Letters of credit outstanding, amount				$ 13,400,000
Revolving Credit Facility | Line Of Credit Facility Due April 14, 2018
Line of Credit Facility [Line Items]
Term of line of credit facility	4 months
NJR | Letter of Credit
Line of Credit Facility [Line Items]
Letters of credit outstanding, amount	$ 10,800,000
NJR | Notes
Line of Credit Facility [Line Items]
Amount outstanding at end of period	$ 150,900,000			$ 255,000,000
Weighted average interest rate at end of period	2.60%			2.14%
Amount available at end of period	$ 263,326,000			$ 156,601,000
NJR | Committed Credit Facilities Due April 2018 | Notes
Line of Credit Facility [Line Items]
Amount available at end of period	100,000,000			0
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
NJR | Revolving Credit Facility | Committed Credit Facilities Due April 2018
Line of Credit Facility [Line Items]
Bank revolving credit facilities	100,000,000	$ 100,000,000	$ 75,000,000	0
NJR | Revolving Credit Facility | Line Of Credit Facility Due April 14, 2018
Line of Credit Facility [Line Items]
Line of credit facility, amount outstanding	0
Natural Gas Distribution | Commercial Paper
Line of Credit Facility [Line Items]
Amount outstanding at end of period	$ 0			$ 11,000,000
Weighted average interest rate at end of period	0.00%			1.13%
Amount available at end of period	$ 249,269,000			$ 238,269,000
Natural Gas Distribution | Letter of Credit
Line of Credit Facility [Line Items]
Letters of credit outstanding, amount	731,000			731,000
Natural Gas Distribution | 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 - LONG TERM DEBT (Details)

DEBT - LONG TERM DEBT (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017	Jan. 26, 2018	Aug. 18, 2017	Jun. 01, 2015
Debt Instrument [Line Items]
Proceeds from sale-leaseback transaction			$ 7,820,000	$ 9,587,000
Benchmark interest rate							3.26%
Derivative, notional amount							$ 125,000,000
Natural Gas Distribution
Debt Instrument [Line Items]
Proceeds from sale-leaseback transaction	$ 7,800,000	$ 9,600,000
Sale leaseback transaction, other payments required			1,100,000	$ 1,000,000
Credit Agreement Due August 16, 2019 | Term Loan
Debt Instrument [Line Items]
Senior notes						$ 100,000,000
Weighted average interest rate at end of period					2.84%
Natural Gas Distribution | Series Ll
Debt Instrument [Line Items]
Senior notes			$ 125,000,000
Interest rate, stated percentage			5.60%

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Components of net periodic cost
Discretionary contribution			$ 0
Pension
Components of net periodic cost
Service cost	$ 2,034,000	$ 2,087,000	4,069,000	$ 4,174,000
Interest cost	2,624,000	2,442,000	5,247,000	4,885,000
Expected return on plan assets	(4,909,000)	(4,828,000)	(9,819,000)	(9,656,000)
Recognized actuarial loss	1,885,000	2,206,000	3,769,000	4,413,000
Prior service cost amortization	26,000	28,000	53,000	55,000
Net periodic benefit cost	1,660,000	1,935,000	3,319,000	3,871,000
OPEB
Components of net periodic cost
Service cost	1,151,000	1,095,000	2,303,000	2,190,000
Interest cost	1,591,000	1,387,000	3,182,000	2,773,000
Expected return on plan assets	(1,338,000)	(1,191,000)	(2,676,000)	(2,383,000)
Recognized actuarial loss	1,165,000	1,092,000	2,330,000	2,185,000
Prior service cost amortization	(91,000)	(91,000)	(182,000)	(182,000)
Net periodic benefit cost	$ 2,478,000	$ 2,292,000	$ 4,957,000	$ 4,583,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2018	Sep. 30, 2017
Operating Loss Carryforwards [Line Items]
Federal statutory income tax rate, percent		24.50%
Tax Cuts And Jobs Act Of 2017, income tax benefit	$ (967)	$ (58,532)
Forecasted effective tax rate		17.20%	15.60%
Forecasted tax credits, net of deferred tax					$ 36,400
Excess tax benefits associated with vesting of share-based awards		$ 2,800	$ 1,500
Actual effective tax rate since tax effects of awards are treated as discrete item		(7.90%)	14.80%
Deferred tax assets, federal	28,500	$ 28,500			28,500
Deferred tax asset, state	28,200	28,200			23,600
ITC carryforward	127,800	$ 127,800			109,300
ITC carryforward, expiration period		20 years
Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	125,300	$ 125,300			125,300
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	537,200	537,200			471,700
Scenario, Forecast
Operating Loss Carryforwards [Line Items]
Forecasted tax credits, net of deferred tax				$ 23,200
Montana, Iowa, Kansas And Wyoming
Operating Loss Carryforwards [Line Items]
Valuation allowance	2,500	2,500
MONTANA
Operating Loss Carryforwards [Line Items]
Valuation allowance					$ 1,000
Corporate, Non-Segment
Operating Loss Carryforwards [Line Items]
Tax Cuts And Jobs Act Of 2017, income tax benefit	749	10,723
Natural Gas Distribution
Operating Loss Carryforwards [Line Items]
Tax Cuts and Jobs Act of 2017, regulatory liability	228,400	228,400
Tax Cuts and Jobs Act of 2017, revaluation of deferred income taxes, provisional liability	164,300	164,300
Tax Cuts and Jobs Act of 2017, income tax effects on revaluation, provisional liability	64,100	64,100
Midstream Investments
Operating Loss Carryforwards [Line Items]
Tax Cuts And Jobs Act Of 2017, income tax benefit	185	(13,804)
Energy Services
Operating Loss Carryforwards [Line Items]
Tax Cuts And Jobs Act Of 2017, income tax benefit	(1,456)	7,651
Clean Energy Ventures
Operating Loss Carryforwards [Line Items]
Tax Cuts And Jobs Act Of 2017, income tax benefit	$ (445)	$ (63,102)

COMMITMENTS AND CONTINGENT LI64

COMMITMENTS AND CONTINGENT LIABILITIES - SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2018USD ($)
Long-term Purchase Commitment [Line Items]
Current charges recoverable through BGSS	$ 54,500
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,018	406,118
2,019	372,780
2,020	250,023
2,021	192,170
2,022	170,206
Thereafter	$ 793,685
Maximum
Long-term Purchase Commitment [Line Items]
Storage and pipeline capacity, contract term	10 years
Energy Services
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,018	$ 311,549
2,019	220,200
2,020	80,894
2,021	47,392
2,022	27,092
Thereafter	26,084
Energy Services | Natural gas purchases
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,018	256,179
2,019	134,005
2,020	20,506
2,021	11,112
2,022	0
Thereafter	0
Energy Services | Storage demand fees
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,018	19,299
2,019	30,207
2,020	17,581
2,021	11,137
2,022	6,053
Thereafter	3,521
Energy Services | Pipeline demand fees
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,018	36,071
2,019	55,988
2,020	42,807
2,021	25,143
2,022	21,039
Thereafter	$ 22,563
Energy Services | Minimum
Long-term Purchase Commitment [Line Items]
Storage and pipeline capacity, contract term	1 year
Natural Gas Distribution
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,018	$ 94,569
2,019	152,580
2,020	169,129
2,021	144,778
2,022	143,114
Thereafter	767,601
Natural Gas Distribution | Natural gas purchases
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,018	40,088
2,019	41,715
2,020	39,370
2,021	37,655
2,022	38,684
Thereafter	80,788
Natural Gas Distribution | Storage demand fees
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,018	15,479
2,019	31,362
2,020	24,245
2,021	14,243
2,022	12,922
Thereafter	15,070
Natural Gas Distribution | Pipeline demand fees
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years
2,018	39,002
2,019	79,503
2,020	105,514
2,021	92,880
2,022	91,508
Thereafter	$ 671,743

COMMITMENTS AND CONTINGENT LI65

COMMITMENTS AND CONTINGENT LIABILITIES - LEGAL PROCEEDINGS (Details)	6 Months Ended
	Mar. 31, 2018USD ($)site	Sep. 30, 2017USD ($)
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	$ 352,152,000	$ 375,919,000
Manufactured gas plant remediation	142,474,000	149,000,000
Minimum
Site Contingency [Line Items]
Product liability contingency, loss exposure in excess of accrual, best estimate	117,600,000
Loss contingency, estimate of possible loss	600,000
Maximum
Site Contingency [Line Items]
Product liability contingency, loss exposure in excess of accrual, best estimate	205,200,000
Loss contingency, estimate of possible loss	3,200,000
Expended, net of recoveries
Site Contingency [Line Items]
Regulatory assets	28,868,000	28,547,000
Liability for future expenditures
Site Contingency [Line Items]
Regulatory assets	142,474,000	$ 149,000,000
RAC
Site Contingency [Line Items]
Public utilities, approved rate, amount	9,400,000
Public utilities, requested rate, amount	$ 7,000,000

REPORTING SEGMENT AND OTHER O66

REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT INCOME TO CONSOLIDATED (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Utility	$ 317,064	$ 295,546	$ 526,851	$ 481,102
Nonutility	701,979	438,000	1,197,497	793,472
Total operating revenues	1,019,043	733,546	1,724,348	1,274,574
Depreciation and amortization	22,460	20,328	44,314	39,588
Interest income	194	108	250	183
Interest expense, net of capitalized interest	11,798	11,436	23,703	22,051
Income tax (benefit) provision	30,901	23,932	(19,267)	25,950
Equity in earnings of affiliates	3,193	5,079	6,457	7,390
Net financial earnings	142,062	104,106	277,395	144,489
Capital expenditures	97,848	78,209	164,938	164,020
Investments in equity investees	3,975	5,902	$ 11,177	$ 10,538
Canada
Segment Reporting Information [Line Items]
Percentage to total operating revenues			0.01%	1.50%
Operating Segments
Segment Reporting Information [Line Items]
Total operating revenues	1,055,243	728,776	$ 1,757,007	$ 1,259,080
Depreciation and amortization	22,298	20,205	44,031	39,293
Interest income	1,008	609	1,791	1,146
Interest expense, net of capitalized interest	12,455	11,577	24,765	22,352
Income tax (benefit) provision	32,365	23,522	(29,019)	24,995
Net financial earnings	144,640	103,670	287,784	142,734
Capital expenditures	96,002	77,864	161,779	163,504
Operating Segments | Natural Gas Distribution
Segment Reporting Information [Line Items]
Utility	317,064	295,546	526,851	481,102
Depreciation and amortization	13,353	12,263	26,136	24,293
Interest income	131	97	250	172
Interest expense, net of capitalized interest	6,523	6,392	13,059	13,216
Income tax (benefit) provision	17,991	30,499	29,695	45,386
Net financial earnings	60,442	60,233	94,551	90,581
Capital expenditures	55,397	34,744	102,787	73,599
Operating Segments | Clean Energy Ventures
Segment Reporting Information [Line Items]
Nonutility	12,866	12,943	26,862	20,510
Depreciation and amortization	8,928	7,923	17,863	14,964
Interest expense, net of capitalized interest	4,344	4,055	8,552	7,379
Income tax (benefit) provision	(12,722)	(24,756)	(86,710)	(36,643)
Net financial earnings	10,051	22,743	81,301	25,585
Capital expenditures	40,605	43,120	58,992	89,905
Operating Segments | Energy Services
Segment Reporting Information [Line Items]
Nonutility	681,475	417,608	1,153,646	756,538
Depreciation and amortization	15	17	29	33
Interest income	106	0	106	0
Interest expense, net of capitalized interest	1,203	716	2,460	1,287
Income tax (benefit) provision	23,965	16,277	37,708	13,101
Net financial earnings	72,832	15,746	93,106	19,233
Operating Segments | Midstream
Segment Reporting Information [Line Items]
Depreciation and amortization	2	2	3	3
Interest income	771	512	1,435	974
Interest expense, net of capitalized interest	385	414	694	470
Income tax (benefit) provision	3,131	1,502	(9,712)	3,151
Equity in earnings of affiliates	4,068	6,119	8,197	9,450
Net financial earnings	1,315	4,948	18,826	7,335
Investments in equity investees	3,975	5,902	11,177	10,538
Intercompany
Segment Reporting Information [Line Items]
Nonutility	623	1,055	1,229	2,086
Intercompany | Energy Services
Segment Reporting Information [Line Items]
Nonutility	43,838	2,679	49,648	930
Home Services and Other
Segment Reporting Information [Line Items]
Nonutility	7,638	7,449	16,989	16,424
Depreciation and amortization	189	199	377	420
Interest income	354	132	558	253
Interest expense, net of capitalized interest	21	123	111	197
Income tax (benefit) provision	(1,281)	1,066	10,417	821
Net financial earnings	(2,488)	708	(10,204)	2,250
Capital expenditures	1,846	345	3,159	516
Eliminations
Segment Reporting Information [Line Items]
Nonutility	(44,461)	(3,734)	(50,877)	(3,016)
Depreciation and amortization	(27)	(76)	(94)	(125)
Interest income	(1,168)	(633)	(2,099)	(1,216)
Interest expense, net of capitalized interest	(678)	(264)	(1,173)	(498)
Income tax (benefit) provision	(183)	(656)	(665)	134
Equity in earnings of affiliates	(875)	(1,040)	(1,740)	(2,060)
Net financial earnings	$ (90)	$ (272)	$ (185)	$ (495)

REPORTING SEGMENT AND OTHER O67

REPORTING SEGMENT AND OTHER OPERATIONS DATA - NET FINANCIAL EARNINGS (LOSS) RECONCILIATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting [Abstract]
Net financial earnings	$ 142,062	$ 104,106	$ 277,395	$ 144,489
Less:
Unrealized (gain) loss on derivative instruments and related transactions	(11,608)	(54,855)	(23,246)	(26,553)
Tax effect	4,716	19,679	(3,343)	9,922
Effects of economic hedging related to natural gas inventory	6,125	34,328	(19,262)	16,389
Tax effect	(1,715)	(12,334)	(6,529)	(6,130)
Net income to NFE tax adjustment	4,278	2,586	6,260	1,230
NET INCOME	140,266	$ 114,702	263,965	$ 149,631
Tax Cuts And Jobs Act Of 2017, income tax benefit	$ (967)		$ (58,532)

REPORTING SEGMENT AND OTHER O68

REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 3,960,740	$ 3,928,507
Assets held for sale	224,898	0
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	3,973,559	3,922,001
Operating Segments | Natural Gas Distribution
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	2,567,347	2,519,578
Operating Segments | Clean Energy Ventures
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	812,789	771,340
Operating Segments | Energy Services
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	366,322	398,277
Operating Segments | Midstream
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	227,101	232,806
Home Services and Other
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	107,415	114,801
Intercompany Assets
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ (120,234)	$ (108,295)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	Apr. 01, 2010USD ($)Bcf	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)Bcf / dcontract	Mar. 31, 2017USD ($)	Sep. 30, 2017USD ($)
Related Party Transaction [Line Items]
Demand fees expense recognized pertaining to related party agreement		$ 2,087	$ 2,072	$ 4,236	$ 4,183
Demand fees payable		1,151		$ 1,151		$ 1,152
Number of asset management agreements | contract				4
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		1,407	1,383	$ 2,855	2,793
Demand fees payable		775		775		775
NJRES to Steckman Ridge Affiliate
Related Party Transaction [Line Items]
Demand fees expense recognized pertaining to related party agreement		680	$ 689	1,381	$ 1,390
Demand fees payable		$ 376		$ 376		$ 377
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

ACQUISITION (Details)

ACQUISITION (Details) $ in Thousands	Nov. 07, 2017USD ($)	Oct. 27, 2017USD ($)mi	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)
Business Acquisition [Line Items]
Payment made at closing			$ 10,000	$ 0
Talen Generation, LLC | Talen's Membership Interests In IEC
Business Acquisition [Line Items]
Pipeline length owned | mi		84
Adelphia | Talen Generation, LLC | Talen's Membership Interests In IEC
Business Acquisition [Line Items]
Consideration to be transferred		$ 166,000
Contingent consideration arrangements, additional consideration		$ 23,000
Payment made at closing	$ 10,000

DISPOSITION (Details)

DISPOSITION (Details) - USD ($) $ in Thousands	Feb. 28, 2018	Mar. 31, 2018	Mar. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of business		$ 9,399	$ 0
Gain on sale of business, net		(3,722)	$ 0
Issued and Outstanding Shares of NRJ Retail Services
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of business	$ 9,500
Gain on sale of business, net		$ (3,722)
Natural Gas [Member] | Commodity Contract | Issued and Outstanding Shares of NRJ Retail Services
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Derivative gain	$ 14,600