Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2018 | Aug. 03, 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 | 88,276,811 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING REVENUES | ||||
Utility | $ 104,538 | $ 121,362 | $ 631,389 | $ 602,464 |
Nonutility | 438,897 | 336,161 | 1,636,394 | 1,129,633 |
Total operating revenues | 543,435 | 457,523 | 2,267,783 | 1,732,097 |
OPERATING EXPENSES | ||||
Gas purchases - Utility | 53,080 | 47,124 | 227,268 | 220,889 |
Gas purchases - Nonutility | 422,734 | 299,971 | 1,489,041 | 1,005,231 |
Gas purchases - Related parties | 2,156 | 2,076 | 6,392 | 6,259 |
Operation and maintenance | 69,447 | 55,613 | 182,307 | 160,183 |
Regulatory rider expenses | 5,542 | 5,216 | 36,915 | 37,710 |
Depreciation and amortization | 20,320 | 20,760 | 64,634 | 60,348 |
Energy and other taxes | 7,822 | 8,796 | 45,855 | 42,382 |
Total operating expenses | 581,101 | 439,556 | 2,052,412 | 1,533,002 |
OPERATING (LOSS) INCOME | (37,666) | 17,967 | 215,371 | 199,095 |
Other income, net | 2,682 | 3,273 | 11,589 | 12,387 |
Interest expense, net of capitalized interest | 11,037 | 11,164 | 34,740 | 33,215 |
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES | (46,021) | 10,076 | 192,220 | 178,267 |
Income tax (benefit) provision | (28,534) | (5,816) | (47,801) | 20,134 |
Equity in earnings of affiliates | 3,213 | 3,065 | 9,670 | 10,455 |
NET (LOSS) INCOME | $ (14,274) | $ 18,957 | $ 249,691 | $ 168,588 |
(LOSS) EARNINGS PER COMMON SHARE | ||||
Basic (usd per share) | $ (0.16) | $ 0.22 | $ 2.85 | $ 1.95 |
Diluted (usd per share) | (0.16) | 0.22 | 2.84 | 1.94 |
DIVIDENDS DECLARED PER COMMON SHARE (usd per share) | $ 0.2725 | $ 0.255 | $ 0.8175 | $ 0.765 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||
Basic (in shares) | 87,888 | 86,408 | 87,493 | 86,257 |
Diluted (in shares) | 87,888 | 87,267 | 87,884 | 87,088 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (14,274) | $ 18,957 | $ 249,691 | $ 168,588 |
Other comprehensive (loss) income, net of tax | ||||
Unrealized (loss) gain on available for sale securities, net of tax of $854, $2,375, $9,071 and $(2,801), respectively | (2,364) | (3,622) | (25,055) | 3,301 |
Reclassifications of losses to net income on available for sale securities, net of tax of $0, $0, $(858) and $0, respectively | 0 | 0 | 11,647 | 0 |
Adjustment to postemployment benefit obligation, net of tax of $(104), $(217), $(344) and $(651), respectively | 272 | 318 | 784 | 953 |
Other comprehensive (loss) income | (2,092) | (3,304) | (12,624) | 4,254 |
Comprehensive (loss) income | $ (16,366) | $ 15,653 | $ 237,067 | $ 172,842 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax on unrealized (loss) gain on available for sale securities | $ 854 | $ 2,375 | $ 9,071 | $ (2,081) |
Tax on reclassifications of available for sale securities | 0 | 0 | (858) | 0 |
Tax on adjustment for postemployment benefit obligation | $ (104) | $ (217) | $ (344) | $ (651) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (loss) income | $ 249,691 | $ 168,588 |
Adjustments to reconcile net income to cash flows from operating activities | ||
Unrealized loss (gain) on derivative instruments | 25,904 | (42,534) |
Gain on sale of available for sale securities | (5,332) | (7,287) |
Gain on sale of businesses | (4,687) | 0 |
Depreciation and amortization | 64,634 | 60,348 |
Amortization of acquired wholesale energy contracts | 17,813 | 0 |
Allowance for equity used during construction | (3,730) | (2,738) |
Allowance for doubtful accounts | 1,672 | 916 |
Deferred income taxes | 17,351 | 48,024 |
Deferred income tax benefit due to tax legislation | (73,784) | 0 |
Manufactured gas plant remediation costs | (13,624) | (6,923) |
Equity in earnings, net of distributions received from equity investees | (935) | (334) |
Cost of removal - asset retirement obligations | (93) | (363) |
Contributions to postemployment benefit plans | (4,708) | (4,640) |
Tax benefit from stock-based compensation | 2,841 | 1,284 |
Changes in: | ||
Components of working capital | 64,527 | (26,843) |
Other noncurrent assets | 41,793 | 27,930 |
Other noncurrent liabilities | 13,224 | 7,668 |
Cash flows from operating activities | 392,557 | 223,096 |
Expenditures for: | ||
Utility plant | (130,727) | (92,833) |
Solar and wind equipment | (88,416) | (121,958) |
Midstream and other | (4,879) | (933) |
Cost of removal | (42,683) | (23,001) |
Investments in equity investees | (14,496) | (24,097) |
Distribution from equity investees in excess of equity in earnings | 2,515 | 2,179 |
Cash paid related to acquisition | (10,000) | 0 |
(Deposits to) withdrawal from restricted cash construction fund | (52) | 1,302 |
Proceeds from sale of property, net of closing costs | 0 | 9,443 |
Proceeds from sale of businesses, net of closing costs | 27,916 | 0 |
Proceeds from sale of available for sale securities, net | 6,616 | 6,639 |
Cash flows used in investing activities | (254,206) | (243,259) |
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 225,000 | 0 |
Payments of long-term debt | (133,717) | (43,454) |
(Payments of) proceeds from short-term debt, net | (208,900) | 141,700 |
Proceeds from sale-leaseback transaction | 7,820 | 9,587 |
Payments of common stock dividends | (71,334) | (65,909) |
Proceeds from waiver discount issuance of common stock | 41,677 | 0 |
Proceeds from issuance of common stock | 13,572 | 13,802 |
Purchases of treasury stock | 0 | (6,355) |
Tax withholding payments related to net settled stock compensation | (13,625) | (4,595) |
Cash flows (used in) from financing activities | (139,507) | 44,776 |
Change in cash and cash equivalents | (1,156) | 24,613 |
Cash and cash equivalents at beginning of period | 2,226 | 37,546 |
Cash and cash equivalents at end of period | 1,070 | 62,159 |
CHANGES IN COMPONENTS OF WORKING CAPITAL | ||
Receivables | (5,757) | (26,487) |
Inventories | 63,838 | 4,003 |
Recovery of gas costs | 28,524 | (4,610) |
Gas purchases payable | 28,041 | 11,929 |
Prepaid and accrued taxes | (22,993) | (22,820) |
Accounts payable and other | 5,213 | (3,973) |
Restricted broker margin accounts | (29,497) | 27,314 |
Customers' credit balances and deposits | (745) | (12,873) |
Other current assets | (2,097) | 674 |
Components of working capital | 64,527 | (26,843) |
Cash paid (received) for: | ||
Interest (net of amounts capitalized) | 35,295 | 30,128 |
Income taxes | 4,195 | (4,178) |
Accrued capital expenditures | 30,019 | 32,826 |
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 | Jun. 30, 2018 | Sep. 30, 2017 |
PROPERTY, PLANT AND EQUIPMENT | ||
Utility plant, at cost | $ 2,318,091 | $ 2,241,324 |
Construction work in progress | 175,882 | 119,318 |
Solar and wind equipment, real estate properties and other, at cost | 665,194 | 843,142 |
Construction work in progress | 39,890 | 7,286 |
Total property, plant and equipment | 3,199,057 | 3,211,070 |
Accumulated depreciation and amortization, utility plant | (510,242) | (489,122) |
Accumulated depreciation and amortization, solar and wind equipment, real estate properties and other | (115,412) | (112,207) |
Property, plant and equipment, net | 2,573,403 | 2,609,741 |
CURRENT ASSETS | ||
Cash and cash equivalents | 1,070 | 2,226 |
Customer accounts receivable | ||
Billed | 201,104 | 196,467 |
Unbilled revenues | 7,099 | 7,202 |
Allowance for doubtful accounts | (5,630) | (5,181) |
Regulatory assets | 21,456 | 50,791 |
Gas in storage, at average cost | 136,284 | 202,063 |
Materials and supplies, at average cost | 13,885 | 11,944 |
Prepaid and accrued taxes | 47,017 | 24,764 |
Derivatives, at fair value | 23,192 | 30,081 |
Restricted broker margin accounts | 53,141 | 25,827 |
Assets held for sale | 206,898 | 0 |
Other | 31,377 | 33,260 |
Total current assets | 736,893 | 579,444 |
NONCURRENT ASSETS | ||
Investments in equity method investees | 187,808 | 172,585 |
Regulatory assets | 348,079 | 375,919 |
Derivatives, at fair value | 11,886 | 9,164 |
Available for sale securities | 25,009 | 65,752 |
Intangible assets, net | 23,610 | 41,084 |
Other noncurrent assets | 70,700 | 74,818 |
Total noncurrent assets | 667,092 | 739,322 |
Total assets | 3,977,388 | 3,928,507 |
CAPITALIZATION | ||
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding June 30, 2018 — 88,211,744; September 30, 2017 — 86,555,507 | 226,189 | 222,258 |
Premium on common stock | 274,138 | 219,696 |
Accumulated other comprehensive loss, net of tax | (15,880) | (3,256) |
Treasury stock at cost and other; shares June 30, 2018 — 2,263,550; September 30, 2017 — 2,347,380 | (80,405) | (70,039) |
Retained earnings | 1,045,920 | 867,984 |
Common stock equity | 1,449,962 | 1,236,643 |
Long-term debt | 1,220,166 | 997,080 |
Total capitalization | 2,670,128 | 2,233,723 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 40,527 | 165,375 |
Short-term debt | 57,100 | 266,000 |
Gas purchases payable | 188,158 | 160,115 |
Gas purchases payable to related parties | 1,150 | 1,152 |
Accounts payable and other | 97,874 | 96,878 |
Dividends payable | 24,037 | 23,586 |
Accrued taxes | 1,291 | 2,031 |
Regulatory liabilities | 7,482 | 78 |
New Jersey Clean Energy Program | 15,533 | 14,202 |
Derivatives, at fair value | 43,398 | 46,544 |
Liabilities held for sale | 4,182 | 0 |
Customers' credit balances and deposits | 26,212 | 26,957 |
Total current liabilities | 506,944 | 802,918 |
NONCURRENT LIABILITIES | ||
Deferred income taxes | 244,161 | 514,708 |
Deferred investment tax credits | 4,055 | 4,297 |
Deferred gain | 9,300 | 27,728 |
Derivatives, at fair value | 21,604 | 11,330 |
Manufactured gas plant remediation | 140,821 | 149,000 |
Postemployment employee benefit liability | 130,968 | 128,888 |
Regulatory liabilities | 211,431 | 14,507 |
Asset retirement obligation | 28,574 | 31,420 |
Other | 9,402 | 9,988 |
Total noncurrent liabilities | 800,316 | 891,866 |
Commitments and contingent liabilities (Note 12) | ||
Total capitalization and liabilities | $ 3,977,388 | $ 3,928,507 |
CONDENSED CONSOLIDATED BALANCE7
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 2.5 | $ 2.5 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares outstanding (in shares) | 88,211,744 | 86,555,507 |
Treasury stock at cost and other, shares (in shares) | 2,263,550 | 2,347,380 |
NATURE OF THE BUSINESS
NATURE OF THE BUSINESS | 9 Months Ended |
Jun. 30, 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 537,700 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 Iowa, Kansas, Wyoming and Pennsylvania. On June 1, 2018 , Clean Energy Ventures completed the sale of its membership interest in a 9.7 MW wind farm in Two Dot, Montana, see Note 16. Dispositions for more details. 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. Dispositions 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 and NJR Pipeline Company, which holds the Company's 20 percent ownership interest in PennEast . See Note 6. Investments in Equity Investees for more information. 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 | 9 Months Ended |
Jun. 30, 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 $5.9 million and $37.8 million during the three and nine months ended June 30, 2018 , respectively, and $6.6 million and $34.7 million during the three and nine months ended June 30, 2017 , respectively. Effective January 1, 2017, the New Jersey sales tax rate decreased from 7 percent to 6.875 percent . Effective January 1, 2018, the New Jersey sales tax rate decreased again to 6.625 percent . Gas in Storage The following table summarizes gas in storage, at average cost by segment as of: June 30, September 30, ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf Energy Services $ 86,889 34.7 $ 122,884 53.9 Natural Gas Distribution 49,395 13.8 79,179 21.8 Total $ 136,284 48.5 $ 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 nine months ended June 30, 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 June 30, 2018 . During the three and nine months ended June 30, 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 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 MLP 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, as of March 31, 2018 . Since the deferred gain was established based upon the difference in the fair value of the DM Common Units acquired 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 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 June 30, 2018 , the Company's available for sale securities had a fair value of $25 million and total unrealized losses were $3.2 million , $2.4 million , net of deferred income tax benefit. 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. On July 18, 2018, the FERC finalized its March 15, 2018 policy regarding the tax treatment of MLP pipelines. Natural gas pipelines within an MLP structure, where the parent is a taxable entity and consolidates the financial results of the MLP on its federal income tax return, will be allowed to include an income tax allowance in its cost-of-service rates. Customer Accounts Receivable Customer accounts receivable include outstanding billings from the following subsidiaries as of: (Thousands) June 30, September 30, Energy Services $ 145,373 72 % $ 150,322 77 % Natural Gas Distribution (1) 48,495 24 37,432 19 Clean Energy Ventures 3,163 2 2,655 1 Home Services and Other Operations 4,073 2 6,058 3 Total $ 201,104 100 % $ 196,467 100 % (1) Does not include unbilled revenues of $7.1 million and $7.2 million as of June 30, 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 million and $40.4 million in other noncurrent assets as of June 30, 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 June 30, 2018 and September 30, 2017 , there was no allowance for doubtful accounts established for the SAVEGREEN loans. Assets Held for Sale In March 2018, Clean Energy Ventures committed to a plan to sell its wind assets and expects that the sale will be completed within the next 12 months. Accordingly, the Company classified its wind assets and related liabilities as held for sale on the Unaudited Condensed Consolidated Balance Sheets, which resulted in depreciation expense on wind assets no longer being recorded. The wind assets classified as held for sale are measured at the lower of their carrying value or fair value less cost to sell. On June 1, 2018 , Clean Energy Ventures completed the sale of its membership interest in a 9.7 MW wind farm in Two Dot, Montana, see Note 16. Dispositions for more details. The major classes of assets and liabilities included within the disposal group as held for sale are as follows: (Thousands) March 31, 2018 Assets Sold Other Adjustments June 30, 2018 Assets held for sale: Property, plant and equipment - wind equipment, at cost $ 244,972 $ (20,688 ) $ — $ 224,284 Property, plant and equipment - accumulated depreciation, wind equipment (21,561 ) 3,060 — (18,501 ) Prepaid and accrued taxes 1,226 (77 ) (295 ) 854 Other noncurrent assets 261 — — 261 $ 224,898 $ (17,705 ) $ (295 ) $ 206,898 Liabilities held for sale: Accounts payable and other $ — $ 186 $ — $ 186 Asset retirement obligation 4,262 (266 ) — 3,996 $ 4,262 $ (80 ) $ — $ 4,182 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 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 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 does not anticipate a material impact to its financial position, results of operations or cash flows upon adoption. Additionally, the Company does not expect significant changes to its business processes, systems or internal controls over financial reporting upon adoption. The Company anticipates new disclosures as a result of the implementation of ASC 606, including the disclosure of performance obligations, disaggregated revenues and contract balances, 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. 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. In July 2018, the FASB issued ASU No. 2018-11, which provides an optional transition method to ASC 842 that allows the Company to recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. At this time, the Company does not plan to early adopt the new guidance and expects to transition on a modified retrospective basis. While the Company is currently evaluating the full impact of the standard and its related updates, 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 a deferred gain of $6.8 million related to nonfinancial assets on the balance sheet and 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 amendment establishes a practical expedient that permits entities to use their previously disclosed service and other costs in their pension and other postretirement benefit plan footnotes in the prior comparative periods as the estimation basis when applying the retrospective presentation of these costs in the income statement. 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 income statement 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 the Company's financial position, results of operations and cash flows upon adoption. The Company is also monitoring industry specific developments on this 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 the Company's financial position, results of operations and cash flows upon adoption. In June 2018, the FASB issued ASU No. 2018-07, an amendment to ASC 718, Compensation - Stock Compensation , which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The guidance is effective for the Company’s fiscal year ending September 30, 2020, and interim periods within that year, with early adoption permitted. The Company is currently evaluating the impact of the amendment on the Company’s 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 an 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 can 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 | 9 Months Ended |
Jun. 30, 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) June 30, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 15,533 $ 14,202 Underrecovered gas costs 5,693 9,910 Derivatives at fair value, net 230 9,010 Conservation Incentive Program — 17,669 Total current regulatory assets $ 21,456 $ 50,791 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 29,647 $ 28,547 Liability for future expenditures 140,821 149,000 Deferred income taxes 16,796 21,795 SAVEGREEN 7,410 16,302 Postemployment and other benefit costs 133,179 141,433 Deferred storm damage costs 11,401 13,030 Other noncurrent regulatory assets 8,825 5,812 Total noncurrent regulatory assets $ 348,079 $ 375,919 Regulatory liabilities-current Conservation Incentive Program $ 6,637 $ — Derivatives at fair value, net 845 78 Total current regulatory liabilities $ 7,482 $ 78 Regulatory liabilities-noncurrent Tax Act impact (1) $ 206,832 $ — Cost of removal obligation — 7,902 Derivatives at fair value, net 466 146 New Jersey Clean Energy Program 2,484 5,795 Other noncurrent regulatory liabilities 1,649 664 Total noncurrent regulatory liabilities $ 211,431 $ 14,507 (1) Includes 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 , s ee Note 11. Income Taxes . Regulatory filings and/or actions that occurred during the current fiscal year include the following: The Tax Act • 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, which included the revaluation of its deferred income taxes and the accounting of the income tax effects on the revaluation. The revaluation was 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 base rates as a result of the Tax Act to be effective April 1, 2018, the method to return to customers the overcollection of taxes in base rates 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 state sales tax. On March 26, 2018 , the BPU approved, on an interim basis, the $19.7 million rate reduction, effective April 1, 2018 . On May 22, 2018 , the BPU also approved the refund of the $31 million , which included interest at the Company’s short-term debt rate as specified in the Company’s last base rate case. These credits were returned to customer accounts in June 2018 . BGSS and CIP • 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 May 29, 2018 , NJNG filed its annual petition with the BPU to maintain its BGSS rate for residential and small commercial customers and increase its balancing charge rate, resulting in a $10.8 million increase to the annual revenues credited to BGSS, as well as a decrease in CIP rate, which will result in a $30.9 million annual recovery decrease, effective October 1, 2018 . Energy Efficiency Programs • 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 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 May 25, 2018 , NJNG filed a petition with the BPU to decrease its EE recovery rate, which will result in an annual decrease of $7 million , anticipated to be effective January 1, 2019 . Societal Benefits Clause • On June 22, 2018 , NJNG filed its annual USF compliance filing to increase rates, which will result in a $7.3 million annual increase, anticipated to be effective October 1, 2018 . • On July 25, 2018 , the BPU approved NJNG's annual SBC filing 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 September 1, 2018 . Infrastructure Programs • On July 24, 2018 , NJNG updated its annual petition with the BPU that was filed on March 29, 2018 , which requested a base rate increase for the recovery of SAFE II and NJ RISE capital investment costs related to the 12-months ending June 30, 2018 , and was based on estimates. The filing was updated to reflect actual results, with changes to base rates in the amount of $6.8 million annually, anticipated to be effective October 1, 2018 . |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Jun. 30, 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 treasury lock transaction to fix a benchmark treasury rate of 3.26 percent associated with a $125 million debt issuance that was finalized in May 2018. This debt issuance coincided with the maturity of NJNG's $125 million , 5.6 percent notes that came due May 15, 2018 . This treasury lock was settled on March 13, 2018 , which coincided with the pricing of the new debt being issued. Settlement of the treasury lock resulted 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 term of the $125 million , 4.01 percent notes that were issued on May 11, 2018 . Home Services and Other On January 26, 2018 , NJR entered into a variable-for-fixed interest rate swap on its 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 June 30, 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 $ 57 $ 286 $ 151 $ 72 Financial commodity contracts Derivatives - current 323 117 — 1,149 Interest rate contracts Derivatives - current — — — 8,467 Energy Services: Physical commodity contracts Derivatives - current 6,847 17,660 14,588 16,589 Derivatives - noncurrent 2,474 13,267 7,127 8,710 Financial commodity contracts Derivatives - current 15,728 25,151 15,302 20,267 Derivatives - noncurrent 9,324 8,163 2,033 2,620 Foreign currency contracts Derivatives - current — 184 40 — Derivatives - noncurrent — 174 4 — Home Services and Other: Interest rate contracts Derivatives - current 237 — — — Derivatives - noncurrent 88 — — — Total fair value of derivatives $ 35,078 $ 65,002 $ 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 June 30, 2018: Derivative assets: Energy Services Physical commodity contracts $ 9,321 $ (3,461 ) $ (200 ) $ 5,660 Financial commodity contracts 25,052 (16,800 ) 360 8,612 Total Energy Services $ 34,373 $ (20,261 ) $ 160 $ 14,272 Natural Gas Distribution Physical commodity contracts $ 57 $ (6 ) $ — $ 51 Financial commodity contracts 323 (117 ) — 206 Total Natural Gas Distribution $ 380 $ (123 ) $ — $ 257 Home Services and Other Interest rate contracts $ 325 $ — $ — $ 325 Total Home Services and Other $ 325 $ — $ — $ 325 Derivative liabilities: Energy Services Physical commodity contracts $ 30,927 $ (3,461 ) $ — $ 27,466 Financial commodity contracts 33,314 (16,800 ) (16,154 ) 360 Foreign currency contracts 358 — — 358 Total Energy Services $ 64,599 $ (20,261 ) $ (16,154 ) $ 28,184 Natural Gas Distribution Physical commodity contracts $ 286 $ (6 ) $ — $ 280 Financial commodity contracts 117 (117 ) 206 206 Total Natural Gas Distribution $ 403 $ (123 ) $ 206 $ 486 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 Nine Months Ended June 30, June 30, Derivatives not designated as hedging instruments: 2018 2017 2018 2017 Energy Services: Physical commodity contracts Operating revenues $ 3,046 $ 1,364 $ (7,696 ) $ 8,089 Physical commodity contracts Gas purchases 1,008 (1,131 ) (66,335 ) (13,912 ) Financial commodity contracts Gas purchases (6,777 ) 22,004 (19,007 ) 29,514 Foreign currency contracts Gas purchases (194 ) 9 (457 ) (24 ) Home Services and Other: Interest rate contracts Interest expense 165 — 286 — Total unrealized and realized gains (losses) $ (2,752 ) $ 22,246 $ (93,209 ) $ 23,667 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 Nine Months Ended June 30, June 30, (Thousands) 2018 2017 2018 2017 Natural Gas Distribution: Physical commodity contracts $ (178 ) $ (301 ) $ (16,033 ) $ (3,031 ) Financial commodity contracts 3,306 (4,232 ) 1,730 6,528 Interest rate contracts — (4,203 ) 8,467 14,478 Total unrealized and realized (losses) gains $ 3,128 $ (8,736 ) $ (5,836 ) $ 17,975 NJNG and Energy Services had the following outstanding long (short) derivatives as of: Volume (Bcf) June 30, September 30, Natural Gas Distribution Futures 25.8 18.2 Physical 31.6 32.1 Energy Services Futures (30.2 ) (16.4 ) Physical 19.9 (13.1 ) Not included in the previous table are Energy Services' gross notional amount of foreign currency transactions of approximately $7.9 million , NJNG’s treasury lock agreement and NJR's interest rate swap as previously discussed and 702,000 SRECs at Energy Services that are open as of June 30, 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 June 30, September 30, Natural Gas Distribution Broker margin - Current assets $ 1,845 $ 2,661 Energy Services Broker margin - Current assets $ 51,296 $ 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 June 30, 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 $ 150,226 Noninvestment grade 31,860 Internally rated investment grade 26,536 Internally rated noninvestment grade 13,965 Total $ 222,587 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 June 30, 2018 and September 30, 2017 , was $687,000 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 June 30, 2018 and September 30, 2017 , the Company would have been required to post an additional $171,000 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 | 9 Months Ended |
Jun. 30, 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) June 30, September 30, Carrying value (1) (2) (3) $ 1,197,045 $ 1,097,045 Fair market value $ 1,193,741 $ 1,107,676 (1) Excludes capital leases of $40.1 million and $39.7 million as of June 30, 2018 and September 30, 2017 , respectively. (2) Excludes NJNG's debt issuance costs of $6.6 million and $6.3 million as of June 30, 2018 and September 30, 2017 , respectively. (3) Excludes NJR's debt issuance costs of $1.3 million and $770,000 as of June 30, 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 June 30, 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 June 30, 2018: Assets: Physical commodity contracts $ — $ 9,378 $ — $ 9,378 Financial commodity contracts 17,123 8,252 — 25,375 Interest rate contracts — 325 — 325 Available for sale securities 25,009 — — 25,009 Other (1) 1,222 — — 1,222 Total assets at fair value $ 43,354 $ 17,955 $ — $ 61,309 Liabilities: Physical commodity contracts $ — $ 31,213 $ — $ 31,213 Financial commodity contracts 33,431 — — 33,431 Financial commodity contracts - foreign exchange — 358 — 358 Interest rate contracts — — — — Total liabilities at fair value $ 33,431 $ 31,571 $ — $ 65,002 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 securities 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. 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 June 30, 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 | 9 Months Ended |
Jun. 30, 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) June 30, September 30, Steckman Ridge (1) $ 117,639 $ 120,262 PennEast 70,169 52,323 Total $ 187,808 $ 172,585 (1) Includes loans with a total outstanding principal balance of $70.4 million for both June 30, 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 | 9 Months Ended |
Jun. 30, 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 Nine Months Ended June 30, June 30, (Thousands, except per share amounts) 2018 2017 2018 2017 Net (loss) income, as reported $ (14,274 ) $ 18,957 $ 249,691 $ 168,588 Basic (loss)earnings per share Weighted average shares of common stock outstanding-basic 87,888 86,408 87,493 86,257 Basic (loss) earnings per common share $(0.16) $0.22 $2.85 $1.95 Diluted (loss) earnings per share Weighted average shares of common stock outstanding-basic 87,888 86,408 87,493 86,257 Incremental shares (1) — 859 391 831 Weighted average shares of common stock outstanding-diluted 87,888 87,267 87,884 87,088 Diluted (loss) earnings per common share (2) $(0.16) $0.22 $2.84 $1.94 (1) Incremental shares consist primarily of unvested stock awards and performance shares. (2) Since there was a net loss for the three months ended June 30, 2018 , incremental shares of 402,000 were not included in the computation of diluted loss per common share, as their effect would have been anti-dilutive. There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for the three months ended June 30, 2017 and the nine months ended June 30, 2018 and 2017 . |
COMMON STOCK EQUITY
COMMON STOCK EQUITY | 9 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
COMMON STOCK EQUITY | 8. COMMON STOCK EQUITY Changes in common stock equity during the nine months ended June 30, 2018 , were as follows: (Thousands) Number of Shares Common Stock Premium on Common Stock Accumulated Other Comprehensive Loss 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 249,691 249,691 Other comprehensive loss (12,624 ) (12,624 ) Common stock issued: Incentive plan 558 1,396 15,141 16,537 Dividend reinvestment plan (1) 334 173 13,224 13,397 Waiver discount 1,014 2,535 39,142 41,677 Cash dividend ($.8175 per share) (71,755 ) (71,755 ) Treasury stock and other (250 ) (14 ) (23,590 ) (23,604 ) Balance at June 30, 2018 88,212 $ 226,189 $ 274,138 $ (15,880 ) $ (80,405 ) $ 1,045,920 $ 1,449,962 (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 approximately $19 million and $41.7 million of equity by issuing approximately 460,000 and 1,014,000 shares of common stock through the waiver discount feature of the DRP during the three and nine months ended June 30, 2018 , respectively. NJR issued no new shares through the waiver discount feature of the DRP during the three and nine months ended June 30, 2017 . NJR also raised $3.7 million and $13.6 million of equity through the DRP, by issuing approximately 92,000 and 334,000 shares of treasury stock, during the three and nine months ended June 30, 2018 , respectively. NJR raised $4.1 million and $13.8 million of equity through the DRP, by issuing approximately 102,000 and 381,000 shares of treasury stock, during the three and nine months ended June 30, 2017 , respectively. Accumulated Other Comprehensive (Loss) Income The following table presents the changes in the components of accumulated other comprehensive (loss) income, net of related tax effects during the three months ended June 30, 2018 and 2017 : (Thousands) Available for Sale Securities Postemployment Benefit Obligation Total Balance at March 31, 2018 $ — $ (13,788 ) $ (13,788 ) Other comprehensive (loss) income, net of tax Other comprehensive (loss),before reclassifications, net of tax of $854, $0, $854 (2,364 ) — (2,364 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(104), $(104) — 272 (1) 272 Net current-period other comprehensive (loss) income, net of tax of $854, $(104), $750 (2,364 ) 272 (2,092 ) Balance at June 30, 2018 $ (2,364 ) $ (13,516 ) $ (15,880 ) Balance at March 31, 2017 $ 11,121 $ (18,718 ) $ (7,597 ) Other comprehensive income, net of tax Other comprehensive (loss),before reclassifications, net of tax of $2,375, $0, $2,375 (3,622 ) — (3,622 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(217), $(217) — 318 (1) 318 Net current-period other comprehensive (loss) income, net of tax of $2,375, $(217), $2,158 (3,622 ) 318 (3,304 ) Balance as of June 30, 2017 $ 7,499 $ (18,400 ) $ (10,901 ) The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the nine months ended June 30, 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 $9,071, $0, $9,071 (25,055 ) — (25,055 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $(858), $(344), $(1,202) 11,647 784 (1) 12,431 Net current-period other comprehensive (loss) income, net of tax of $8,213, $(344), $7,869 (13,408 ) 784 (12,624 ) Balance at June 30, 2018 $ (2,364 ) $ (13,516 ) $ (15,880 ) 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 $(4,273), $0, $(4,273) 6,474 — 6,474 Amounts reclassified from accumulated other comprehensive (loss) income, net of tax of $2,192, $(651), $1,541 (3,173 ) 953 (1) (2,220 ) Net current-period other comprehensive income, net of tax of $(2,081), $(651), $(2,732) 3,301 953 4,254 Balance as of June 30, 2017 $ 7,499 $ (18,400 ) $ (10,901 ) (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 | 9 Months Ended |
Jun. 30, 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 and committed unsecured credit facilities. Credit Facilities A summary of NJR's credit facility and NJNG's commercial paper program and credit facility are as follows: (Thousands) June 30, September 30, Expiration Dates NJR Bank revolving credit facilities (1) $ 425,000 $ 425,000 September 2020 Notes outstanding at end of period $ 42,100 $ 255,000 Weighted average interest rate at end of period 2.90 % 2.14 % Amount available at end of period (2) $ 373,519 $ 156,601 NJNG Bank revolving credit facilities (1) $ 250,000 $ 250,000 May 2019 Commercial paper outstanding at end of period $ 15,000 $ 11,000 Weighted average interest rate at end of period 1.97 % 1.13 % Amount available at end of period (3) $ 234,269 $ 238,269 (1) Committed credit facilities, which require commitment fees on the unused amounts. (2) Letters of credit outstanding total $9.4 million and $13.4 million for June 30, 2018 and September 30, 2017 , respectively, which reduces amount available by the same amount. (3) Letters of credit outstanding total $731,000 for both June 30, 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 . This facility expired on April 14, 2018 . No amounts were outstanding on the facility at the time of expiration. On June 25, 2018 , the $425 million NJR Credit Facility was amended to permit liens and the disposition of assets relating to sale leaseback or other similar tax equity financing arrangements of meter assets or of solar or wind facilities. These transactions are permissible so long as NJR is in compliance with certain covenants both before and after such incurrence and that no event of default may be caused by such sale leaseback or similar arrangement. Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities. Long-term Debt NJNG On May 11, 2018 , NJNG entered into a Note Purchase Agreement, under which NJNG issued $125 million , 4.01 percent senior notes due May 11, 2048 . The interest rate includes the quoted March 9, 2018, 30-year treasury rate, plus a market based credit spread. The notes are secured by an equal principal amount of NJNG's FMB (series VV) issued under NJNG's Mortgage Indenture. In June 2015, NJNG entered into a treasury lock transaction to fix a benchmark treasury rate of 3.26 percent associated with a $125 million debt issuance that was finalized in May 2018. This debt issuance coincided with the maturity of the $125 million , 5.6 percent notes that came due May 15, 2018 . This treasury lock was settled on March 13, 2018 , which coincided with the pricing of the new debt being issued. Settlement of the treasury lock resulted 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 term of the May 11, 2018 debt issuance, discussed above. 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 nine months ended June 30, 2018 and 2017 , respectively. NJR On June 8, 2018 , NJR entered into a Note Purchase Agreement, under which the Company issued $100 million , 3.96 percent senior notes due June 8, 2028 . The notes are not secured by assets, but are instead guaranteed by certain unregulated subsidiaries of NJR. On January 26, 2018 , NJR entered into a variable-for-fixed interest rate swap on its existing $100 million variable rate term loan due August 16, 2019 , which fixed the variable rate at 2.84 percent . On July 17, 2018 , the $100 million variable rate term loan was amended to permit the disposition of assets relating to sale leaseback or other similar tax equity financing arrangements of meter assets or of solar or wind facilities. These transactions are permissible so long as NJR is in compliance with certain covenants both before and after such incurrence and no event of default may be caused by such sale leaseback or similar arrangement. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Jun. 30, 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 Nine Months Ended Three Months Ended Nine Months Ended June 30, June 30, June 30, June 30, (Thousands) 2018 2017 2018 2017 2018 2017 2018 2017 Service cost $ 2,035 $ 2,086 $ 6,104 $ 6,260 $ 1,152 $ 1,095 $ 3,455 $ 3,285 Interest cost 2,623 2,443 7,870 7,328 1,591 1,386 4,773 4,159 Expected return on plan assets (4,910 ) (4,829 ) (14,729 ) (14,485 ) (1,338 ) (1,192 ) (4,014 ) (3,575 ) Recognized actuarial loss 1,884 2,207 5,653 6,620 1,165 1,093 3,495 3,278 Prior service cost amortization 27 28 80 83 (91 ) (91 ) (273 ) (273 ) Net periodic benefit cost $ 1,659 $ 1,935 $ 4,978 $ 5,806 $ 2,479 $ 2,291 $ 7,436 $ 6,874 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 nine months ended June 30, 2018 . In April 2018, the Company implemented a voluntary early retirement program open to certain eligible employees. The Company expects to recognize an expense of approximately $6.4 million for related postemployment benefit costs and other termination benefits, of which $4.6 million was recognized during the nine months ended June 30, 2018 , as a component of O&M in the Unaudited Condensed Consolidated Statements of Operations. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 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 nine months ended June 30, 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 in estimates associated with impacts resulting from 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. As a result of the changes associated with the Tax Act, NJNG recorded a decrease in its net deferred tax liability of $228.4 million , which included $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. These amounts were recorded as a regulatory liability on the Unaudited Condensed Consolidated Balance Sheets. On May 22, 2018 , the BPU approved a refund of $31 million , which included approximately $20.1 million of the initial revaluation of excess deferred income taxes, $9 million for the overcollection of taxes from customers from January 1, 2018 through March 31, 2018, and interest on the overcollected taxes at the Company's short term debt rate. The $20.1 million is comprised of approximately $14.3 million attributable to the remeasurement of deferred income taxes and $5.8 million for the accounting of the income tax effects of revaluation. These credits were returned to customer accounts in June 2018 . Since the enactment of the Tax Act and through the nine months ended June 30, 2018 , the Company recorded a change in estimate of the excess deferred income taxes of approximately $988,000 as a regulatory liability on the Unaudited Condensed Consolidated Balance Sheets. Changes from the original estimate are based on actual results through the third quarter and forecasted amounts through the fiscal year end. During the nine months ended June 30, 2018 , the Company credited approximately $16.1 million to income tax (benefit) provision on the Unaudited Condensed Consolidated Statements of Operations, which includes $14.3 million , as previously discussed, $890,000 for the amortization of excess deferred income taxes primarily related to timing differences associated with utility plant depreciation and $880,000 related to the revaluation of deferred income taxes not included in base rates. As of June 30, 2018 , the regulatory liability included excess deferred income taxes of $206.8 million , which requires amortization over the remaining life of the utility plant consistent with IRS normalization principles. The increase (decrease) of the net deferred tax liability due to the impact of the Tax Act that was recognized on the Unaudited Condensed Consolidated Statements of Operations, for the remaining entities was as follows: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2018 2018 Income tax (benefit) provision Clean Energy Ventures $ (671 ) $ (63,773 ) Energy Services 1,598 9,249 Midstream (142 ) (13,946 ) Home Services and Other 59 10,782 Total $ 844 $ (57,688 ) The changes from the original estimates are based on actual results through the third quarter and forecasted amounts through the fiscal year end. Effective Tax Rate The forecasted effective tax rates were 14.3 percent and 13.1 percent , for the nine months ended June 30, 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 $22 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 provision (benefit) of $844,000 and $(57.7) million during the three and nine months ended June 30, 2018 . In addition, the Company recognized $2.9 million and $4.6 million during the nine months ended June 30, 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 (23.7) percent and 10.7 percent during the nine months ended June 30, 2018 and 2017 , respectively. Other Tax Items As of June 30, 2018 , the Company has federal and state income tax net operating losses of approximately $125.3 million and $494.1 million , respectively, which generally have a life of 20 years. As of June 30, 2018 , the Company has recorded deferred federal and state tax assets of approximately $28.5 million and $33.8 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 sell its wind assets and expects that the sale 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 June 30, 2018 , the Company had 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 June 30, 2018 and September 30, 2017 , the Company had an ITC/PTC carryforward of approximately $130.3 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 | 9 Months Ended |
Jun. 30, 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 $27.1 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 June 30, 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 $ 170,111 $ 187,185 $ 20,893 $ 10,681 $ — $ — Storage demand fees 9,445 31,234 19,636 13,192 8,551 4,991 Pipeline demand fees 23,255 50,674 48,182 28,059 24,147 24,138 Sub-total Energy Services $ 202,811 $ 269,093 $ 88,711 $ 51,932 $ 32,698 $ 29,129 NJNG: Natural gas purchases $ 27,630 $ 56,627 $ 38,479 $ 34,411 $ 34,740 $ 72,995 Storage demand fees 7,741 31,362 24,245 14,243 12,922 13,920 Pipeline demand fees 19,375 80,602 107,919 92,910 91,538 671,981 Sub-total NJNG $ 54,746 $ 168,591 $ 170,643 $ 141,564 $ 139,200 $ 758,896 Total $ 257,557 $ 437,684 $ 259,354 $ 193,496 $ 171,898 $ 788,025 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 July 25, 2018 , the BPU approved NJNG's annual SBC filing requesting a reduction in the RAC, which decreased the annual recovery to $7 million , effective September 1, 2018 . As of June 30, 2018 , $29.6 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 $140.8 million as of June 30, 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 June 30, 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 | 9 Months Ended |
Jun. 30, 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 Nine Months Ended June 30, June 30, (Thousands) 2018 2017 2018 2017 Operating revenues Natural Gas Distribution External customers $ 104,538 $ 121,362 $ 631,389 $ 602,464 Clean Energy Ventures External customers 15,348 14,915 42,210 35,425 Energy Services External customers (1) 409,417 307,448 1,563,063 1,063,986 Intercompany (12 ) (309 ) 49,636 621 Subtotal 529,291 443,416 2,286,298 1,702,496 Home Services and Other External customers 14,132 13,798 31,121 30,222 Intercompany 627 610 1,856 2,696 Eliminations (615 ) (301 ) (51,492 ) (3,317 ) Total $ 543,435 $ 457,523 $ 2,267,783 $ 1,732,097 Depreciation and amortization Natural Gas Distribution $ 13,473 $ 12,425 $ 39,609 $ 36,718 Clean Energy Ventures 6,702 8,154 24,565 23,118 Energy Services (2) 21 16 50 49 Midstream 1 1 4 4 Subtotal 20,197 20,596 64,228 59,889 Home Services and Other 193 186 570 606 Eliminations (70 ) (22 ) (164 ) (147 ) Total $ 20,320 $ 20,760 $ 64,634 $ 60,348 Interest income (3) Natural Gas Distribution $ 202 $ 202 $ 452 $ 374 Energy Services 134 6 240 6 Midstream 945 581 2,380 1,555 Subtotal 1,281 789 3,072 1,935 Home Services and Other 340 155 898 408 Eliminations (1,419 ) (785 ) (3,518 ) (2,001 ) Total $ 202 $ 159 $ 452 $ 342 (1) Includes sales to Canada, which are immaterial. (2) The amortization of acquired wholesale energy contracts is excluded above and 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 Nine Months Ended June 30, June 30, (Thousands) 2018 2017 2018 2017 Interest expense, net of capitalized interest Natural Gas Distribution $ 6,226 $ 6,294 $ 19,285 $ 19,510 Clean Energy Ventures 4,708 4,345 13,260 11,724 Energy Services 581 586 3,041 1,873 Midstream 471 211 1,165 681 Subtotal 11,986 11,436 36,751 33,788 Home Services and Other (129 ) 116 (18 ) 313 Eliminations (820 ) (388 ) (1,993 ) (886 ) Total $ 11,037 $ 11,164 $ 34,740 $ 33,215 Income tax (benefit) provision Natural Gas Distribution $ (25,314 ) $ 1,496 $ 4,381 $ 46,882 Clean Energy Ventures (565 ) (8,122 ) (87,275 ) (44,765 ) Energy Services (4,786 ) (1,767 ) 32,922 11,334 Midstream 989 1,609 (8,723 ) 4,760 Subtotal (29,676 ) (6,784 ) (58,695 ) 18,211 Home Services and Other 1,122 853 11,539 1,674 Eliminations 20 115 (645 ) 249 Total $ (28,534 ) $ (5,816 ) $ (47,801 ) $ 20,134 Equity in earnings of affiliates Midstream $ 3,907 $ 4,049 $ 12,104 $ 13,499 Eliminations (694 ) (984 ) (2,434 ) (3,044 ) Total $ 3,213 $ 3,065 $ 9,670 $ 10,455 Net financial earnings (loss) Natural Gas Distribution $ 2,440 $ 5,951 $ 96,991 $ 96,532 Clean Energy Ventures (829 ) 6,276 80,472 31,861 Energy Services (15,079 ) 933 78,027 20,166 Midstream 3,489 2,959 22,315 10,294 Subtotal (9,979 ) 16,119 277,805 158,853 Home Services and Other 1,993 1,295 (8,211 ) 3,545 Eliminations (17 ) (19 ) (202 ) (514 ) Total $ (8,003 ) $ 17,395 $ 269,392 $ 161,884 Capital expenditures Natural Gas Distribution $ 70,623 $ 42,235 $ 173,410 $ 115,834 Clean Energy Ventures 29,424 32,053 88,416 121,958 Midstream 975 — 3,579 — Subtotal 101,022 74,288 265,405 237,792 Home Services and Other 745 417 1,300 933 Total $ 101,767 $ 74,705 $ 266,705 $ 238,725 Investments in equity investees Midstream $ 3,319 $ 13,559 $ 14,496 $ 24,097 Total $ 3,319 $ 13,559 $ 14,496 $ 24,097 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 Nine Months Ended June 30, June 30, (Thousands) 2018 2017 2018 2017 Net financial (loss) earnings (1) $ (8,003 ) $ 17,395 $ 269,392 $ 161,884 Less: Unrealized loss (gain) on derivative instruments and related transactions 2,657 (15,981 ) 25,904 (42,534 ) Tax effect (577 ) 5,985 (3,920 ) 15,907 Effects of economic hedging related to natural gas inventory 4,474 13,203 (14,788 ) 29,592 Tax effect (1,011 ) (4,947 ) 5,518 (11,077 ) Net income to NFE tax adjustment 728 178 6,987 1,408 Net (loss) income (1) $ (14,274 ) $ 18,957 $ 249,691 $ 168,588 (1) Includes income tax benefit related to the Tax Act of $844,000 and $57.7 million , for the three and nine months ended June 30, 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 nine months ended June 30, 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) June 30, September 30, Assets at end of period: Natural Gas Distribution $ 2,558,895 $ 2,519,578 Clean Energy Ventures (1) 796,380 771,340 Energy Services 375,548 398,277 Midstream 255,777 232,806 Subtotal 3,986,600 3,922,001 Home Services and Other 143,469 114,801 Intercompany assets (2) (152,681 ) (108,295 ) Total $ 3,977,388 $ 3,928,507 (1) Includes assets held for sale of $206.9 million for June 30, 2018 . (2) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 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 June 30, 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 Nine Months Ended June 30, June 30, (Thousands) 2018 2017 2018 2017 Natural Gas Distribution $ 1,451 $ 1,395 $ 4,306 $ 4,188 Energy Services 705 681 2,086 2,071 Total $ 2,156 $ 2,076 $ 6,392 $ 6,259 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) June 30, September 30, Natural Gas Distribution $ 775 $ 775 Energy Services 375 377 Total $ 1,150 $ 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 June 30, 2018 , NJNG and Energy Services had three asset management agreements with expiration dates ranging from March 31, 2019 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 | 9 Months Ended |
Jun. 30, 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. |
DISPOSITIONS
DISPOSITIONS | 9 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSITIONS | 16. DISPOSITIONS Energy Services 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 the 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. Clean Energy Ventures On June 1, 2018 , Clean Energy Ventures completed the sale of its membership interest in its 9.7 MW wind farm in Two Dot, Montana to NorthWestern Energy for a total purchase price of $18.5 million . The transaction generated a pre-tax gain of approximately $965,000 , which is 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) | 9 Months Ended |
Jun. 30, 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 million and $40.4 million in other noncurrent assets as of June 30, 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 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 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 does not anticipate a material impact to its financial position, results of operations or cash flows upon adoption. Additionally, the Company does not expect significant changes to its business processes, systems or internal controls over financial reporting upon adoption. The Company anticipates new disclosures as a result of the implementation of ASC 606, including the disclosure of performance obligations, disaggregated revenues and contract balances, 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. 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. In July 2018, the FASB issued ASU No. 2018-11, which provides an optional transition method to ASC 842 that allows the Company to recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. At this time, the Company does not plan to early adopt the new guidance and expects to transition on a modified retrospective basis. While the Company is currently evaluating the full impact of the standard and its related updates, 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 a deferred gain of $6.8 million related to nonfinancial assets on the balance sheet and 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 amendment establishes a practical expedient that permits entities to use their previously disclosed service and other costs in their pension and other postretirement benefit plan footnotes in the prior comparative periods as the estimation basis when applying the retrospective presentation of these costs in the income statement. 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 income statement 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 the Company's financial position, results of operations and cash flows upon adoption. The Company is also monitoring industry specific developments on this 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 the Company's financial position, results of operations and cash flows upon adoption. In June 2018, the FASB issued ASU No. 2018-07, an amendment to ASC 718, Compensation - Stock Compensation , which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The guidance is effective for the Company’s fiscal year ending September 30, 2020, and interim periods within that year, with early adoption permitted. The Company is currently evaluating the impact of the amendment on the Company’s 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 an 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 can 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) | 9 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Gas in Storage | The following table summarizes gas in storage, at average cost by segment as of: June 30, September 30, ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf Energy Services $ 86,889 34.7 $ 122,884 53.9 Natural Gas Distribution 49,395 13.8 79,179 21.8 Total $ 136,284 48.5 $ 202,063 75.7 |
Accounts Receivable by Subsidiary | Customer accounts receivable include outstanding billings from the following subsidiaries as of: (Thousands) June 30, September 30, Energy Services $ 145,373 72 % $ 150,322 77 % Natural Gas Distribution (1) 48,495 24 37,432 19 Clean Energy Ventures 3,163 2 2,655 1 Home Services and Other Operations 4,073 2 6,058 3 Total $ 201,104 100 % $ 196,467 100 % (1) Does not include unbilled revenues of $7.1 million and $7.2 million as of June 30, 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 Sold Other Adjustments June 30, 2018 Assets held for sale: Property, plant and equipment - wind equipment, at cost $ 244,972 $ (20,688 ) $ — $ 224,284 Property, plant and equipment - accumulated depreciation, wind equipment (21,561 ) 3,060 — (18,501 ) Prepaid and accrued taxes 1,226 (77 ) (295 ) 854 Other noncurrent assets 261 — — 261 $ 224,898 $ (17,705 ) $ (295 ) $ 206,898 Liabilities held for sale: Accounts payable and other $ — $ 186 $ — $ 186 Asset retirement obligation 4,262 (266 ) — 3,996 $ 4,262 $ (80 ) $ — $ 4,182 |
REGULATION (Tables)
REGULATION (Tables) | 9 Months Ended |
Jun. 30, 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) June 30, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 15,533 $ 14,202 Underrecovered gas costs 5,693 9,910 Derivatives at fair value, net 230 9,010 Conservation Incentive Program — 17,669 Total current regulatory assets $ 21,456 $ 50,791 Regulatory assets-noncurrent Environmental remediation costs Expended, net of recoveries $ 29,647 $ 28,547 Liability for future expenditures 140,821 149,000 Deferred income taxes 16,796 21,795 SAVEGREEN 7,410 16,302 Postemployment and other benefit costs 133,179 141,433 Deferred storm damage costs 11,401 13,030 Other noncurrent regulatory assets 8,825 5,812 Total noncurrent regulatory assets $ 348,079 $ 375,919 Regulatory liabilities-current Conservation Incentive Program $ 6,637 $ — Derivatives at fair value, net 845 78 Total current regulatory liabilities $ 7,482 $ 78 Regulatory liabilities-noncurrent Tax Act impact (1) $ 206,832 $ — Cost of removal obligation — 7,902 Derivatives at fair value, net 466 146 New Jersey Clean Energy Program 2,484 5,795 Other noncurrent regulatory liabilities 1,649 664 Total noncurrent regulatory liabilities $ 211,431 $ 14,507 (1) Includes 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 , s ee Note 11. Income Taxes . |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Jun. 30, 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 June 30, 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 $ 57 $ 286 $ 151 $ 72 Financial commodity contracts Derivatives - current 323 117 — 1,149 Interest rate contracts Derivatives - current — — — 8,467 Energy Services: Physical commodity contracts Derivatives - current 6,847 17,660 14,588 16,589 Derivatives - noncurrent 2,474 13,267 7,127 8,710 Financial commodity contracts Derivatives - current 15,728 25,151 15,302 20,267 Derivatives - noncurrent 9,324 8,163 2,033 2,620 Foreign currency contracts Derivatives - current — 184 40 — Derivatives - noncurrent — 174 4 — Home Services and Other: Interest rate contracts Derivatives - current 237 — — — Derivatives - noncurrent 88 — — — Total fair value of derivatives $ 35,078 $ 65,002 $ 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 June 30, 2018: Derivative assets: Energy Services Physical commodity contracts $ 9,321 $ (3,461 ) $ (200 ) $ 5,660 Financial commodity contracts 25,052 (16,800 ) 360 8,612 Total Energy Services $ 34,373 $ (20,261 ) $ 160 $ 14,272 Natural Gas Distribution Physical commodity contracts $ 57 $ (6 ) $ — $ 51 Financial commodity contracts 323 (117 ) — 206 Total Natural Gas Distribution $ 380 $ (123 ) $ — $ 257 Home Services and Other Interest rate contracts $ 325 $ — $ — $ 325 Total Home Services and Other $ 325 $ — $ — $ 325 Derivative liabilities: Energy Services Physical commodity contracts $ 30,927 $ (3,461 ) $ — $ 27,466 Financial commodity contracts 33,314 (16,800 ) (16,154 ) 360 Foreign currency contracts 358 — — 358 Total Energy Services $ 64,599 $ (20,261 ) $ (16,154 ) $ 28,184 Natural Gas Distribution Physical commodity contracts $ 286 $ (6 ) $ — $ 280 Financial commodity contracts 117 (117 ) 206 206 Total Natural Gas Distribution $ 403 $ (123 ) $ 206 $ 486 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 June 30, 2018: Derivative assets: Energy Services Physical commodity contracts $ 9,321 $ (3,461 ) $ (200 ) $ 5,660 Financial commodity contracts 25,052 (16,800 ) 360 8,612 Total Energy Services $ 34,373 $ (20,261 ) $ 160 $ 14,272 Natural Gas Distribution Physical commodity contracts $ 57 $ (6 ) $ — $ 51 Financial commodity contracts 323 (117 ) — 206 Total Natural Gas Distribution $ 380 $ (123 ) $ — $ 257 Home Services and Other Interest rate contracts $ 325 $ — $ — $ 325 Total Home Services and Other $ 325 $ — $ — $ 325 Derivative liabilities: Energy Services Physical commodity contracts $ 30,927 $ (3,461 ) $ — $ 27,466 Financial commodity contracts 33,314 (16,800 ) (16,154 ) 360 Foreign currency contracts 358 — — 358 Total Energy Services $ 64,599 $ (20,261 ) $ (16,154 ) $ 28,184 Natural Gas Distribution Physical commodity contracts $ 286 $ (6 ) $ — $ 280 Financial commodity contracts 117 (117 ) 206 206 Total Natural Gas Distribution $ 403 $ (123 ) $ 206 $ 486 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 Nine Months Ended June 30, June 30, Derivatives not designated as hedging instruments: 2018 2017 2018 2017 Energy Services: Physical commodity contracts Operating revenues $ 3,046 $ 1,364 $ (7,696 ) $ 8,089 Physical commodity contracts Gas purchases 1,008 (1,131 ) (66,335 ) (13,912 ) Financial commodity contracts Gas purchases (6,777 ) 22,004 (19,007 ) 29,514 Foreign currency contracts Gas purchases (194 ) 9 (457 ) (24 ) Home Services and Other: Interest rate contracts Interest expense 165 — 286 — Total unrealized and realized gains (losses) $ (2,752 ) $ 22,246 $ (93,209 ) $ 23,667 |
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 Nine Months Ended June 30, June 30, (Thousands) 2018 2017 2018 2017 Natural Gas Distribution: Physical commodity contracts $ (178 ) $ (301 ) $ (16,033 ) $ (3,031 ) Financial commodity contracts 3,306 (4,232 ) 1,730 6,528 Interest rate contracts — (4,203 ) 8,467 14,478 Total unrealized and realized (losses) gains $ 3,128 $ (8,736 ) $ (5,836 ) $ 17,975 |
Schedule of Outstanding Long (Short) Derivatives | NJNG and Energy Services had the following outstanding long (short) derivatives as of: Volume (Bcf) June 30, September 30, Natural Gas Distribution Futures 25.8 18.2 Physical 31.6 32.1 Energy Services Futures (30.2 ) (16.4 ) Physical 19.9 (13.1 ) |
Schedule of Broker Margin Accounts by Company | The balances are as follows: (Thousands) Balance Sheet Location June 30, September 30, Natural Gas Distribution Broker margin - Current assets $ 1,845 $ 2,661 Energy Services Broker margin - Current assets $ 51,296 $ 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 June 30, 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 $ 150,226 Noninvestment grade 31,860 Internally rated investment grade 26,536 Internally rated noninvestment grade 13,965 Total $ 222,587 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Jun. 30, 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) June 30, September 30, Carrying value (1) (2) (3) $ 1,197,045 $ 1,097,045 Fair market value $ 1,193,741 $ 1,107,676 (1) Excludes capital leases of $40.1 million and $39.7 million as of June 30, 2018 and September 30, 2017 , respectively. (2) Excludes NJNG's debt issuance costs of $6.6 million and $6.3 million as of June 30, 2018 and September 30, 2017 , respectively. (3) Excludes NJR's debt issuance costs of $1.3 million and $770,000 as of June 30, 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 June 30, 2018: Assets: Physical commodity contracts $ — $ 9,378 $ — $ 9,378 Financial commodity contracts 17,123 8,252 — 25,375 Interest rate contracts — 325 — 325 Available for sale securities 25,009 — — 25,009 Other (1) 1,222 — — 1,222 Total assets at fair value $ 43,354 $ 17,955 $ — $ 61,309 Liabilities: Physical commodity contracts $ — $ 31,213 $ — $ 31,213 Financial commodity contracts 33,431 — — 33,431 Financial commodity contracts - foreign exchange — 358 — 358 Interest rate contracts — — — — Total liabilities at fair value $ 33,431 $ 31,571 $ — $ 65,002 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 securities 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. 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 June 30, 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) | 9 Months Ended |
Jun. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
Schedule of Equity Method Investments | NJR's investments in equity method investees include the following as of: (Thousands) June 30, September 30, Steckman Ridge (1) $ 117,639 $ 120,262 PennEast 70,169 52,323 Total $ 187,808 $ 172,585 (1) Includes loans with a total outstanding principal balance of $70.4 million for both June 30, 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) | 9 Months Ended |
Jun. 30, 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 Nine Months Ended June 30, June 30, (Thousands, except per share amounts) 2018 2017 2018 2017 Net (loss) income, as reported $ (14,274 ) $ 18,957 $ 249,691 $ 168,588 Basic (loss)earnings per share Weighted average shares of common stock outstanding-basic 87,888 86,408 87,493 86,257 Basic (loss) earnings per common share $(0.16) $0.22 $2.85 $1.95 Diluted (loss) earnings per share Weighted average shares of common stock outstanding-basic 87,888 86,408 87,493 86,257 Incremental shares (1) — 859 391 831 Weighted average shares of common stock outstanding-diluted 87,888 87,267 87,884 87,088 Diluted (loss) earnings per common share (2) $(0.16) $0.22 $2.84 $1.94 (1) Incremental shares consist primarily of unvested stock awards and performance shares. (2) Since there was a net loss for the three months ended June 30, 2018 , incremental shares of 402,000 were not included in the computation of diluted loss per common share, as their effect would have been anti-dilutive. There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for the three months ended June 30, 2017 and the nine months ended June 30, 2018 and 2017 . |
COMMON STOCK EQUITY (Tables)
COMMON STOCK EQUITY (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Changes in Common Stock Equity | Changes in common stock equity during the nine months ended June 30, 2018 , were as follows: (Thousands) Number of Shares Common Stock Premium on Common Stock Accumulated Other Comprehensive Loss 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 249,691 249,691 Other comprehensive loss (12,624 ) (12,624 ) Common stock issued: Incentive plan 558 1,396 15,141 16,537 Dividend reinvestment plan (1) 334 173 13,224 13,397 Waiver discount 1,014 2,535 39,142 41,677 Cash dividend ($.8175 per share) (71,755 ) (71,755 ) Treasury stock and other (250 ) (14 ) (23,590 ) (23,604 ) Balance at June 30, 2018 88,212 $ 226,189 $ 274,138 $ (15,880 ) $ (80,405 ) $ 1,045,920 $ 1,449,962 (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 (loss) income, net of related tax effects during the three months ended June 30, 2018 and 2017 : (Thousands) Available for Sale Securities Postemployment Benefit Obligation Total Balance at March 31, 2018 $ — $ (13,788 ) $ (13,788 ) Other comprehensive (loss) income, net of tax Other comprehensive (loss),before reclassifications, net of tax of $854, $0, $854 (2,364 ) — (2,364 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(104), $(104) — 272 (1) 272 Net current-period other comprehensive (loss) income, net of tax of $854, $(104), $750 (2,364 ) 272 (2,092 ) Balance at June 30, 2018 $ (2,364 ) $ (13,516 ) $ (15,880 ) Balance at March 31, 2017 $ 11,121 $ (18,718 ) $ (7,597 ) Other comprehensive income, net of tax Other comprehensive (loss),before reclassifications, net of tax of $2,375, $0, $2,375 (3,622 ) — (3,622 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(217), $(217) — 318 (1) 318 Net current-period other comprehensive (loss) income, net of tax of $2,375, $(217), $2,158 (3,622 ) 318 (3,304 ) Balance as of June 30, 2017 $ 7,499 $ (18,400 ) $ (10,901 ) The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the nine months ended June 30, 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 $9,071, $0, $9,071 (25,055 ) — (25,055 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $(858), $(344), $(1,202) 11,647 784 (1) 12,431 Net current-period other comprehensive (loss) income, net of tax of $8,213, $(344), $7,869 (13,408 ) 784 (12,624 ) Balance at June 30, 2018 $ (2,364 ) $ (13,516 ) $ (15,880 ) 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 $(4,273), $0, $(4,273) 6,474 — 6,474 Amounts reclassified from accumulated other comprehensive (loss) income, net of tax of $2,192, $(651), $1,541 (3,173 ) 953 (1) (2,220 ) Net current-period other comprehensive income, net of tax of $(2,081), $(651), $(2,732) 3,301 953 4,254 Balance as of June 30, 2017 $ 7,499 $ (18,400 ) $ (10,901 ) (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) | 9 Months Ended |
Jun. 30, 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) June 30, September 30, Expiration Dates NJR Bank revolving credit facilities (1) $ 425,000 $ 425,000 September 2020 Notes outstanding at end of period $ 42,100 $ 255,000 Weighted average interest rate at end of period 2.90 % 2.14 % Amount available at end of period (2) $ 373,519 $ 156,601 NJNG Bank revolving credit facilities (1) $ 250,000 $ 250,000 May 2019 Commercial paper outstanding at end of period $ 15,000 $ 11,000 Weighted average interest rate at end of period 1.97 % 1.13 % Amount available at end of period (3) $ 234,269 $ 238,269 (1) Committed credit facilities, which require commitment fees on the unused amounts. (2) Letters of credit outstanding total $9.4 million and $13.4 million for June 30, 2018 and September 30, 2017 , respectively, which reduces amount available by the same amount. (3) Letters of credit outstanding total $731,000 for both June 30, 2018 and September 30, 2017 , which reduces the amount available by the same amount. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Jun. 30, 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 Nine Months Ended Three Months Ended Nine Months Ended June 30, June 30, June 30, June 30, (Thousands) 2018 2017 2018 2017 2018 2017 2018 2017 Service cost $ 2,035 $ 2,086 $ 6,104 $ 6,260 $ 1,152 $ 1,095 $ 3,455 $ 3,285 Interest cost 2,623 2,443 7,870 7,328 1,591 1,386 4,773 4,159 Expected return on plan assets (4,910 ) (4,829 ) (14,729 ) (14,485 ) (1,338 ) (1,192 ) (4,014 ) (3,575 ) Recognized actuarial loss 1,884 2,207 5,653 6,620 1,165 1,093 3,495 3,278 Prior service cost amortization 27 28 80 83 (91 ) (91 ) (273 ) (273 ) Net periodic benefit cost $ 1,659 $ 1,935 $ 4,978 $ 5,806 $ 2,479 $ 2,291 $ 7,436 $ 6,874 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Increase (Decrease) Of Net Deferred Tax Liability | The increase (decrease) of the net deferred tax liability due to the impact of the Tax Act that was recognized on the Unaudited Condensed Consolidated Statements of Operations, for the remaining entities was as follows: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2018 2018 Income tax (benefit) provision Clean Energy Ventures $ (671 ) $ (63,773 ) Energy Services 1,598 9,249 Midstream (142 ) (13,946 ) Home Services and Other 59 10,782 Total $ 844 $ (57,688 ) |
COMMITMENTS AND CONTINGENT LI35
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | Commitments as of June 30, 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 $ 170,111 $ 187,185 $ 20,893 $ 10,681 $ — $ — Storage demand fees 9,445 31,234 19,636 13,192 8,551 4,991 Pipeline demand fees 23,255 50,674 48,182 28,059 24,147 24,138 Sub-total Energy Services $ 202,811 $ 269,093 $ 88,711 $ 51,932 $ 32,698 $ 29,129 NJNG: Natural gas purchases $ 27,630 $ 56,627 $ 38,479 $ 34,411 $ 34,740 $ 72,995 Storage demand fees 7,741 31,362 24,245 14,243 12,922 13,920 Pipeline demand fees 19,375 80,602 107,919 92,910 91,538 671,981 Sub-total NJNG $ 54,746 $ 168,591 $ 170,643 $ 141,564 $ 139,200 $ 758,896 Total $ 257,557 $ 437,684 $ 259,354 $ 193,496 $ 171,898 $ 788,025 |
REPORTING SEGMENT AND OTHER O36
REPORTING SEGMENT AND OTHER OPERATIONS DATA (Tables) | 9 Months Ended |
Jun. 30, 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 Nine Months Ended June 30, June 30, (Thousands) 2018 2017 2018 2017 Operating revenues Natural Gas Distribution External customers $ 104,538 $ 121,362 $ 631,389 $ 602,464 Clean Energy Ventures External customers 15,348 14,915 42,210 35,425 Energy Services External customers (1) 409,417 307,448 1,563,063 1,063,986 Intercompany (12 ) (309 ) 49,636 621 Subtotal 529,291 443,416 2,286,298 1,702,496 Home Services and Other External customers 14,132 13,798 31,121 30,222 Intercompany 627 610 1,856 2,696 Eliminations (615 ) (301 ) (51,492 ) (3,317 ) Total $ 543,435 $ 457,523 $ 2,267,783 $ 1,732,097 Depreciation and amortization Natural Gas Distribution $ 13,473 $ 12,425 $ 39,609 $ 36,718 Clean Energy Ventures 6,702 8,154 24,565 23,118 Energy Services (2) 21 16 50 49 Midstream 1 1 4 4 Subtotal 20,197 20,596 64,228 59,889 Home Services and Other 193 186 570 606 Eliminations (70 ) (22 ) (164 ) (147 ) Total $ 20,320 $ 20,760 $ 64,634 $ 60,348 Interest income (3) Natural Gas Distribution $ 202 $ 202 $ 452 $ 374 Energy Services 134 6 240 6 Midstream 945 581 2,380 1,555 Subtotal 1,281 789 3,072 1,935 Home Services and Other 340 155 898 408 Eliminations (1,419 ) (785 ) (3,518 ) (2,001 ) Total $ 202 $ 159 $ 452 $ 342 (1) Includes sales to Canada, which are immaterial. (2) The amortization of acquired wholesale energy contracts is excluded above and 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 Nine Months Ended June 30, June 30, (Thousands) 2018 2017 2018 2017 Interest expense, net of capitalized interest Natural Gas Distribution $ 6,226 $ 6,294 $ 19,285 $ 19,510 Clean Energy Ventures 4,708 4,345 13,260 11,724 Energy Services 581 586 3,041 1,873 Midstream 471 211 1,165 681 Subtotal 11,986 11,436 36,751 33,788 Home Services and Other (129 ) 116 (18 ) 313 Eliminations (820 ) (388 ) (1,993 ) (886 ) Total $ 11,037 $ 11,164 $ 34,740 $ 33,215 Income tax (benefit) provision Natural Gas Distribution $ (25,314 ) $ 1,496 $ 4,381 $ 46,882 Clean Energy Ventures (565 ) (8,122 ) (87,275 ) (44,765 ) Energy Services (4,786 ) (1,767 ) 32,922 11,334 Midstream 989 1,609 (8,723 ) 4,760 Subtotal (29,676 ) (6,784 ) (58,695 ) 18,211 Home Services and Other 1,122 853 11,539 1,674 Eliminations 20 115 (645 ) 249 Total $ (28,534 ) $ (5,816 ) $ (47,801 ) $ 20,134 Equity in earnings of affiliates Midstream $ 3,907 $ 4,049 $ 12,104 $ 13,499 Eliminations (694 ) (984 ) (2,434 ) (3,044 ) Total $ 3,213 $ 3,065 $ 9,670 $ 10,455 Net financial earnings (loss) Natural Gas Distribution $ 2,440 $ 5,951 $ 96,991 $ 96,532 Clean Energy Ventures (829 ) 6,276 80,472 31,861 Energy Services (15,079 ) 933 78,027 20,166 Midstream 3,489 2,959 22,315 10,294 Subtotal (9,979 ) 16,119 277,805 158,853 Home Services and Other 1,993 1,295 (8,211 ) 3,545 Eliminations (17 ) (19 ) (202 ) (514 ) Total $ (8,003 ) $ 17,395 $ 269,392 $ 161,884 Capital expenditures Natural Gas Distribution $ 70,623 $ 42,235 $ 173,410 $ 115,834 Clean Energy Ventures 29,424 32,053 88,416 121,958 Midstream 975 — 3,579 — Subtotal 101,022 74,288 265,405 237,792 Home Services and Other 745 417 1,300 933 Total $ 101,767 $ 74,705 $ 266,705 $ 238,725 Investments in equity investees Midstream $ 3,319 $ 13,559 $ 14,496 $ 24,097 Total $ 3,319 $ 13,559 $ 14,496 $ 24,097 |
Reconciliation of Consolidated NFE to Consolidated Net Income | A reconciliation of consolidated NFE to consolidated net income is as follows: Three Months Ended Nine Months Ended June 30, June 30, (Thousands) 2018 2017 2018 2017 Net financial (loss) earnings (1) $ (8,003 ) $ 17,395 $ 269,392 $ 161,884 Less: Unrealized loss (gain) on derivative instruments and related transactions 2,657 (15,981 ) 25,904 (42,534 ) Tax effect (577 ) 5,985 (3,920 ) 15,907 Effects of economic hedging related to natural gas inventory 4,474 13,203 (14,788 ) 29,592 Tax effect (1,011 ) (4,947 ) 5,518 (11,077 ) Net income to NFE tax adjustment 728 178 6,987 1,408 Net (loss) income (1) $ (14,274 ) $ 18,957 $ 249,691 $ 168,588 (1) Includes income tax benefit related to the Tax Act of $844,000 and $57.7 million , for the three and nine months ended June 30, 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) June 30, September 30, Assets at end of period: Natural Gas Distribution $ 2,558,895 $ 2,519,578 Clean Energy Ventures (1) 796,380 771,340 Energy Services 375,548 398,277 Midstream 255,777 232,806 Subtotal 3,986,600 3,922,001 Home Services and Other 143,469 114,801 Intercompany assets (2) (152,681 ) (108,295 ) Total $ 3,977,388 $ 3,928,507 (1) Includes assets held for sale of $206.9 million for June 30, 2018 . (2) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Jun. 30, 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 Nine Months Ended June 30, June 30, (Thousands) 2018 2017 2018 2017 Natural Gas Distribution $ 1,451 $ 1,395 $ 4,306 $ 4,188 Energy Services 705 681 2,086 2,071 Total $ 2,156 $ 2,076 $ 6,392 $ 6,259 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) June 30, September 30, Natural Gas Distribution $ 775 $ 775 Energy Services 375 377 Total $ 1,150 $ 1,152 |
NATURE OF THE BUSINESS (Details
NATURE OF THE BUSINESS (Details) | Jun. 01, 2018MW | Jun. 30, 2018subsidiarycustomer |
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 | 537,700 | |
NJR Retail Holdings Corporation | ||
Nature of Business [Line Items] | ||
Number of principal subsidiaries | subsidiary | 2 | |
Clean Energy Ventures | ||
Nature of Business [Line Items] | ||
Wind farm total capacity | MW | 9.7 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - GAS IN STORAGE (Details) $ in Thousands | Jun. 30, 2018USD ($)Bcf | Sep. 30, 2017USD ($)Bcf |
Inventory [Line Items] | ||
Gas in Storage, value | $ | $ 136,284 | $ 202,063 |
Gas in Storage, Bcf | Bcf | 48.5 | 75.7 |
Energy Services | ||
Inventory [Line Items] | ||
Gas in Storage, value | $ | $ 86,889 | $ 122,884 |
Gas in Storage, Bcf | Bcf | 34.7 | 53.9 |
Natural Gas Distribution | ||
Inventory [Line Items] | ||
Gas in Storage, value | $ | $ 49,395 | $ 79,179 |
Gas in Storage, Bcf | Bcf | 13.8 | 21.8 |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SALES TAX ACCOUNTING (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Jan. 01, 2017 | |
Principal Transaction Revenue [Line Items] | ||||||
Sales tax | $ 5.9 | $ 6.6 | $ 37.8 | $ 34.7 | ||
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 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||||||
Proceeds from sale of available for sale securities, net | $ 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 | 25,009 | $ 65,752 | ||||
Unrealized gain | (3,200) | 12,800 | ||||
Unrealized gain, net of tax | (2,400) | $ 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 | |||||
Minimum | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Loans Receivable Term | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CUSTOMER ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed | $ 201,104 | $ 196,467 |
Receivable by subsidiary, percentage | 100.00% | 100.00% |
Unbilled revenues | $ 7,099 | $ 7,202 |
Energy Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed | $ 145,373 | $ 150,322 |
Receivable by subsidiary, percentage | 72.00% | 77.00% |
Natural Gas Distribution | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed | $ 48,495 | $ 37,432 |
Receivable by subsidiary, percentage | 24.00% | 19.00% |
Clean Energy Ventures | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed | $ 3,163 | $ 2,655 |
Receivable by subsidiary, percentage | 2.00% | 1.00% |
NJRHS and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed | $ 4,073 | $ 6,058 |
Receivable by subsidiary, percentage | 2.00% | 3.00% |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - LOAN RECEIVABLE (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 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 | $ 40,000,000 | 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] | ||
Loans Receivable Term | 3 years | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Term | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASSETS HELD FOR SALE (Details) $ in Thousands | Jun. 01, 2018MW | Jun. 30, 2018USD ($) |
Assets Held For Sale Activity [Roll Forward] | ||
Property, plant and equipment - wind equipment, at cost, ending balance | $ 3,199,057 | |
Prepaid and accrued taxes, ending balance | 47,017 | |
Other noncurrent assets, ending balance | 70,700 | |
Assets held for sale, ending balance | 206,898 | |
Clean Energy Ventures | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Wind farm total capacity | MW | 9.7 | |
Clean Energy Ventures | Wind Assets And Related Liabilities | ||
Assets Held For Sale Activity [Roll Forward] | ||
Property, plant and equipment - wind equipment, at cost, beginning balance | 244,972 | |
Property, plant and equipment - accumulated depreciation, wind equipment, beginning balance | (21,561) | |
Prepaid and accrued taxes, beginning balance | 1,226 | |
Other noncurrent assets, beginning balance | 261 | |
Assets held for sale, beginning balance | 224,898 | |
Property, plant and equipment - wind equipment, at cost, assets sold | (20,688) | |
Property, plant and equipment - accumulated depreciation, wind equipment, assets sold | 3,060 | |
Prepaid and accrued taxes, assets sold | (77) | |
Other noncurrent assets, assets sold | 0 | |
Assets held for sale, assets sold | (17,705) | |
Prepaid and accrued taxes, other adjustments | (295) | |
Assets held for sale, other adjustments | (295) | |
Property, plant and equipment - wind equipment, at cost, ending balance | 224,284 | |
Property, plant and equipment - accumulated depreciation, wind equipment, ending balance | (18,501) | |
Prepaid and accrued taxes, ending balance | 854 | |
Other noncurrent assets, ending balance | 261 | |
Assets held for sale, ending balance | 206,898 | |
Accounts payable and other, beginning balance | 0 | |
Asset retirement obligation, beginning balance | 4,262 | |
Liabilities held for sale, beginning balance | 4,262 | |
Accounts payable and other, liabilities sold | 186 | |
Asset retirement obligation, liabilities sold | (266) | |
Liabilities held for sale, liabilities sold | 80 | |
Accounts payable and other, ending balance | 186 | |
Asset retirement obligation, ending balance | 3,996 | |
Liabilities held for sale, ending balance | $ 4,182 |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCOUNTING STANDARDS UPDATE (Details) $ in Millions | Jun. 30, 2018USD ($) |
Accounting Standards Update 2017-05 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred gain, unamortized balance | $ (6.8) |
REGULATION - REGULATORY ASSETS
REGULATION - REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | $ 21,456 | $ 50,791 |
Regulatory assets-noncurrent | 348,079 | 375,919 |
Regulatory liabilities-current | 7,482 | 78 |
Regulatory liabilities-noncurrent | 211,431 | 14,507 |
Conservation Incentive Program | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-current | 6,637 | 0 |
Deferred income taxes | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 206,832 | 0 |
Derivatives at fair value, net | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-current | 845 | 78 |
Regulatory liabilities-noncurrent | 466 | 146 |
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 | 2,484 | 5,795 |
Other noncurrent regulatory liabilities | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 1,649 | 664 |
New Jersey Clean Energy Program | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 15,533 | 14,202 |
Underrecovered gas costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 5,693 | 9,910 |
Derivatives at fair value, net | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 230 | 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 | 29,647 | 28,547 |
Liability for future expenditures | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 140,821 | 149,000 |
Deferred income taxes | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 16,796 | 21,795 |
SAVEGREEN | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 7,410 | 16,302 |
Postemployment and other benefit costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 133,179 | 141,433 |
Deferred storm damage costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 11,401 | 13,030 |
Other noncurrent regulatory assets | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | $ 8,825 | $ 5,812 |
REGULATION - REGULATORY FILINGS
REGULATION - REGULATORY FILINGS (Details) - USD ($) $ in Millions | Jul. 24, 2018 | Jun. 22, 2018 | May 25, 2018 | Mar. 28, 2018 | Mar. 26, 2018 | Mar. 01, 2018 | Nov. 01, 2017 | Jun. 30, 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 | |||||||
May 2018 Annual Petition BPU Filing BGSS Rate | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Increase (decrease) in annual revenues | $ 10.8 | |||||||
May 2018 Annual Petition BPU Filing CIP Rate | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Increase (decrease) in annual revenues | (30.9) | |||||||
May 2018 Annual Petition BPU Filing EE Rate | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Increase (decrease) in annual revenues | $ (7) | |||||||
June 2018 Annual USF Compliance Filing | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Increase (decrease) in annual revenues | $ 7.3 | |||||||
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 | |||||||
Subsequent Event | March 2018 Annual Petition BPU Filing | ||||||||
Schedule of Regulatory Filings [Line Items] | ||||||||
Requested rate increase (decrease), amount | $ 6.8 |
DERIVATIVE INSTRUMENTS - BALANC
DERIVATIVE INSTRUMENTS - BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($) $ in Thousands | Mar. 13, 2018 | Jun. 30, 2018 | May 11, 2018 | Jan. 26, 2018 | Sep. 30, 2017 | Aug. 18, 2017 | Jun. 01, 2015 |
Fair Value | |||||||
Derivative assets, current | $ 23,192 | $ 30,081 | |||||
Derivative liabilities, current | 43,398 | 46,544 | |||||
Derivative assets, noncurrent | 11,886 | 9,164 | |||||
Derivative liabilities, noncurrent | 21,604 | 11,330 | |||||
Derivative assets | 35,078 | 39,245 | |||||
Derivative liabilities | 65,002 | 57,874 | |||||
Foreign currency contracts | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount of foreign currency derivatives | 7,900 | ||||||
Treasury Lock | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Benchmark interest rate | 3.26% | ||||||
Notional amount of foreign currency derivatives | $ 125,000 | ||||||
Treasury lock settlement, loss | $ 2,600 | ||||||
Natural Gas Distribution | Not Designated as Hedging Instrument | Physical commodity contracts | |||||||
Fair Value | |||||||
Derivative assets, current | 57 | 151 | |||||
Derivative liabilities, current | 286 | 72 | |||||
Natural Gas Distribution | Not Designated as Hedging Instrument | Financial commodity contracts | |||||||
Fair Value | |||||||
Derivative assets, current | 323 | 0 | |||||
Derivative liabilities, current | 117 | 1,149 | |||||
Natural Gas Distribution | Not Designated as Hedging Instrument | Interest rate contracts | |||||||
Fair Value | |||||||
Derivative assets, current | 0 | 0 | |||||
Derivative liabilities, current | 0 | 8,467 | |||||
Natural Gas Distribution | Series Ll | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Debt issued | $ 125,000 | ||||||
Interest rate, stated percentage | 5.60% | ||||||
Energy Services | Not Designated as Hedging Instrument | Physical commodity contracts | |||||||
Fair Value | |||||||
Derivative assets, current | $ 6,847 | 14,588 | |||||
Derivative liabilities, current | 17,660 | 16,589 | |||||
Derivative assets, noncurrent | 2,474 | 7,127 | |||||
Derivative liabilities, noncurrent | 13,267 | 8,710 | |||||
Energy Services | Not Designated as Hedging Instrument | Financial commodity contracts | |||||||
Fair Value | |||||||
Derivative assets, current | 15,728 | 15,302 | |||||
Derivative liabilities, current | 25,151 | 20,267 | |||||
Derivative assets, noncurrent | 9,324 | 2,033 | |||||
Derivative liabilities, noncurrent | 8,163 | 2,620 | |||||
Energy Services | Not Designated as Hedging Instrument | Foreign currency contracts | |||||||
Fair Value | |||||||
Derivative assets, current | 0 | 40 | |||||
Derivative liabilities, current | 184 | 0 | |||||
Derivative assets, noncurrent | 0 | 4 | |||||
Derivative liabilities, noncurrent | 174 | 0 | |||||
Home Services and Other | Not Designated as Hedging Instrument | Physical commodity contracts | |||||||
Fair Value | |||||||
Derivative assets, noncurrent | 88 | 0 | |||||
Derivative liabilities, noncurrent | 0 | 0 | |||||
Home Services and Other | Not Designated as Hedging Instrument | Interest rate contracts | |||||||
Fair Value | |||||||
Derivative assets, current | 237 | 0 | |||||
Derivative liabilities, current | $ 0 | $ 0 | |||||
Term Loan | Credit Agreement Due August 16, 2019 | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Debt issued | $ 100,000 | ||||||
Weighted average interest rate at end of period | 2.84% | ||||||
Natural Gas Distribution | Senior Notes | 4.01% Senior Notes Due May 11, 2048 | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Interest rate, stated percentage | 4.01% |
DERIVATIVE INSTRUMENTS - OFFSET
DERIVATIVE INSTRUMENTS - OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Financial commodity contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | $ 323 | |
Offsetting Derivative Instruments | (117) | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | 206 | |
Energy Services | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 34,373 | $ 39,094 |
Offsetting Derivative Instruments | (20,261) | (16,294) |
Financial Collateral Received/Pledged | 160 | (200) |
Net Amounts | 14,272 | 22,600 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 64,599 | 48,186 |
Offsetting Derivative Instruments | (20,261) | (16,294) |
Financial Collateral Received/Pledged | (16,154) | (8,766) |
Net Amounts | 28,184 | 23,126 |
Energy Services | Physical commodity contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 9,321 | 21,715 |
Offsetting Derivative Instruments | (3,461) | (2,173) |
Financial Collateral Received/Pledged | (200) | (200) |
Net Amounts | 5,660 | 19,342 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 30,927 | 25,299 |
Offsetting Derivative Instruments | (3,461) | (2,173) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 27,466 | 23,126 |
Energy Services | Financial commodity contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 25,052 | 17,335 |
Offsetting Derivative Instruments | (16,800) | (14,121) |
Financial Collateral Received/Pledged | 360 | 0 |
Net Amounts | 8,612 | 3,214 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 33,314 | 22,887 |
Offsetting Derivative Instruments | (16,800) | (14,121) |
Financial Collateral Received/Pledged | (16,154) | (8,766) |
Net Amounts | 360 | 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 | 358 | |
Offsetting Derivative Instruments | 0 | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | 358 | |
Natural Gas Distribution | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 380 | 151 |
Offsetting Derivative Instruments | (123) | (20) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 257 | 131 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 403 | 9,688 |
Offsetting Derivative Instruments | (123) | (20) |
Financial Collateral Received/Pledged | 206 | (1,149) |
Net Amounts | 486 | 8,519 |
Natural Gas Distribution | Physical commodity contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 57 | 151 |
Offsetting Derivative Instruments | (6) | (20) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 51 | 131 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 286 | 72 |
Offsetting Derivative Instruments | (6) | (20) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 280 | 52 |
Natural Gas Distribution | Financial commodity contracts | ||
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 117 | 1,149 |
Offsetting Derivative Instruments | (117) | 0 |
Financial Collateral Received/Pledged | 206 | (1,149) |
Net Amounts | 206 | 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 | 325 | |
Offsetting Derivative Instruments | 0 | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | 325 | |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 0 | |
Offsetting Derivative Instruments | 0 | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | 0 | |
Home Services and Other | Physical commodity contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 325 | |
Offsetting Derivative Instruments | 0 | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | 325 | |
Home Services and Other | Interest rate contracts | ||
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 0 | |
Offsetting Derivative Instruments | 0 | |
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 | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Energy Services | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | $ (2,752) | $ 22,246 | $ (93,209) | $ 23,667 |
Energy Services | Physical commodity contracts | Operating revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | 3,046 | 1,364 | (7,696) | 8,089 |
Energy Services | Physical commodity contracts | Gas purchases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | 1,008 | (1,131) | (66,335) | (13,912) |
Energy Services | Financial commodity contracts | Gas purchases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | (6,777) | 22,004 | (19,007) | 29,514 |
Energy Services | Foreign currency contracts | Gas purchases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | (194) | 9 | (457) | (24) |
Natural Gas Distribution | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | 3,128 | (8,736) | (5,836) | 17,975 |
Natural Gas Distribution | Physical commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | (178) | (301) | (16,033) | (3,031) |
Natural Gas Distribution | Financial commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | 3,306 | (4,232) | 1,730 | 6,528 |
Natural Gas Distribution | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | 0 | (4,203) | 8,467 | 14,478 |
NJRHS and other | Interest rate contracts | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income on derivatives | $ 165 | $ 0 | $ 286 | $ 0 |
DERIVATIVE INSTRUMENTS - VOLUME
DERIVATIVE INSTRUMENTS - VOLUME (Details) certificate in Thousands, $ in Millions | Jun. 30, 2018USD ($)Bcfcertificate | Sep. 30, 2017Bcf |
Foreign currency contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ | $ 7.9 | |
Natural Gas Distribution | Long | Futures | ||
Derivative [Line Items] | ||
Outsanding long (short) derivatives, Volume | 25.8 | 18.2 |
Natural Gas Distribution | Long | Physical | ||
Derivative [Line Items] | ||
Outsanding long (short) derivatives, Volume | 31.6 | 32.1 |
Energy Services | Physical commodity contracts | ||
Derivative [Line Items] | ||
Number of SRECs | certificate | 702 | |
Energy Services | Short | Futures | ||
Derivative [Line Items] | ||
Outsanding long (short) derivatives, Volume | (30.2) | (16.4) |
Energy Services | Short | Physical | ||
Derivative [Line Items] | ||
Outsanding long (short) derivatives, Volume | 19.9 | (13.1) |
DERIVATIVE INSTRUMENTS - BROKER
DERIVATIVE INSTRUMENTS - BROKER MARGIN DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Natural Gas Distribution | ||
Derivative [Line Items] | ||
Broker margin - Current assets | $ 1,845 | $ 2,661 |
Energy Services | ||
Derivative [Line Items] | ||
Broker margin - Current assets | $ 51,296 | $ 23,166 |
DERIVATIVE INSTRUMENTS - CREDIT
DERIVATIVE INSTRUMENTS - CREDIT RISK EXPOSURE (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018 | Sep. 30, 2017 | |
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | $ 222,587 | |
Derivative, net liability position, aggregate fair value | 687 | $ 8,700 |
Additional collateral, aggregate fair value | 171 | $ 8,600 |
Investment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 150,226 | |
Noninvestment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 31,860 | |
Internally rated investment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 26,536 | |
Internally rated noninvestment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | $ 13,965 |
FAIR VALUE - DEBT (Details)
FAIR VALUE - DEBT (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital leases | $ 40,100 | $ 39,700 |
Level 2 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 1,197,045 | 1,097,045 |
Level 2 | Fair market value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 1,193,741 | 1,107,676 |
Natural Gas Distribution | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt issuance costs, gross | 6,600 | 6,300 |
NJR | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt issuance costs, gross | $ 1,300 | $ 770 |
FAIR VALUE - HIERARCHY (Details
FAIR VALUE - HIERARCHY (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018 | Sep. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 35,078 | $ 39,245 |
Liabilities | 65,002 | 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 securities | 25,009 | 65,752 |
Other | 1,222 | 1,202 |
Total assets at fair value | 61,309 | 106,199 |
Total liabilities at fair value | 65,002 | 57,874 |
Fair Value, Measurements, Recurring | Physical commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 9,378 | 21,866 |
Liabilities | 31,213 | 25,371 |
Fair Value, Measurements, Recurring | Financial commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 25,375 | 17,335 |
Liabilities | 33,431 | 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 | 358 | |
Fair Value, Measurements, Recurring | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 325 | |
Liabilities | 0 | 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 securities | 25,009 | 65,752 |
Other | 1,222 | 1,202 |
Total assets at fair value | 43,354 | 84,289 |
Total liabilities at fair value | 33,431 | 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 | 17,123 | 17,335 |
Liabilities | 33,431 | 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 securities | 0 | 0 |
Other | 0 | 0 |
Total assets at fair value | 17,955 | 21,910 |
Total liabilities at fair value | 31,571 | 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 | 9,378 | 21,866 |
Liabilities | 31,213 | 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 | 8,252 | |
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign currency contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 44 | |
Liabilities | 358 | |
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 | 325 | |
Liabilities | 0 | 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 securities | 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 |
INVESTMENTS IN EQUITY METHOD 56
INVESTMENTS IN EQUITY METHOD INVESTEES (Details) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018USD ($)mi | Sep. 30, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Investments in equity investees | $ 187,808 | $ 172,585 |
Steckman Ridge | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in equity investees | 117,639 | 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 | $ 70,169 | $ 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 | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income (loss), as reported | $ (14,274) | $ 18,957 | $ 249,691 | $ 168,588 |
Basic earnings per share | ||||
Weighted average shares of common stock outstanding-basic (shares) | 87,888,000 | 86,408,000 | 87,493,000 | 86,257,000 |
Basic (loss) earnings per common share (usd per share) | $ (0.16) | $ 0.22 | $ 2.85 | $ 1.95 |
Diluted earnings per share | ||||
Weighted average shares of common stock outstanding-basic (shares) | 87,888,000 | 86,408,000 | 87,493,000 | 86,257,000 |
Incremental shares | 0 | 859,000 | 391,000 | 831,000 |
Weighted average shares of common stock outstanding-diluted (shares) | 87,888,000 | 87,267,000 | 87,884,000 | 87,088,000 |
Diluted (loss) earnings per common share (usd per share) | $ (0.16) | $ 0.22 | $ 2.84 | $ 1.94 |
Anti-dilutive shares excluded from the calculation of diluted earnings per share | 402,000 | 0 | 0 | 0 |
COMMON STOCK EQUITY - NARRATIVE
COMMON STOCK EQUITY - NARRATIVE (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity [Abstract] | ||||
Equity raised through the DRP waiver discount feature | $ 19 | $ 41.7 | ||
Shares issued through the DRP waiver discount feature (in shares) | 460 | 1,014 | ||
Equity raised through the DRP | $ 3.7 | $ 4.1 | $ 13.6 | $ 13.8 |
Number of treasury shares issued from raising of equity through the DRP | 92 | 102 | 334 | 381 |
COMMON STOCK EQUITY - CHANGE IN
COMMON STOCK EQUITY - CHANGE IN COMMON STOCK EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 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 | $ (14,274) | $ 18,957 | 249,691 | $ 168,588 |
Other comprehensive income | $ (2,092) | $ (3,304) | (12,624) | $ 4,254 |
Common stock issued: | ||||
Incentive plan | $ 16,537 | |||
Dividend reinvestment plan (in shares) | 92,000 | 102,000 | 334,000 | 381,000 |
Dividend reinvestment plan | $ 13,397 | |||
Waiver discount (in shares) | 460,000 | 1,014,000 | ||
Waiver discount | $ 41,677 | |||
Cash dividend ($.8175 per share) | (71,755) | |||
Treasury stock and other | $ (23,604) | |||
Balance as of end of period (shares) | 88,211,744 | 88,211,744 | ||
Balance as of end of period | $ 1,449,962 | $ 1,449,962 | ||
Cash dividend declared per share (usd per share) | $ 0.2725 | $ 0.255 | $ 0.8175 | $ 0.765 |
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) | 558,000 | |||
Incentive plan | $ 1,396 | |||
Dividend reinvestment plan (in shares) | 334,000 | |||
Waiver discount (in shares) | 1,014,000 | |||
Waiver discount | $ 2,535 | |||
Treasury stock and other (shares) | (250,000) | |||
Balance as of end of period (shares) | 88,212,000 | 88,212,000 | ||
Balance as of end of period | $ 226,189 | $ 226,189 | ||
Premium on Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period | 219,696 | |||
Common stock issued: | ||||
Incentive plan | 15,141 | |||
Dividend reinvestment plan | 173 | |||
Waiver discount | 39,142 | |||
Treasury stock and other | (14) | |||
Balance as of end of period | 274,138 | 274,138 | ||
Accumulated Other Comprehensive (Loss) Income | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period | (13,788) | $ (7,597) | (3,256) | $ (15,155) |
Other comprehensive income | (12,624) | |||
Common stock issued: | ||||
Balance as of end of period | (15,880) | $ (10,901) | (15,880) | $ (10,901) |
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 | 13,224 | |||
Treasury stock and other | (23,590) | |||
Balance as of end of period | (80,405) | (80,405) | ||
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of beginning of period | 867,984 | |||
Net income | 249,691 | |||
Common stock issued: | ||||
Cash dividend ($.8175 per share) | (71,755) | |||
Balance as of end of period | $ 1,045,920 | $ 1,045,920 |
COMMON STOCK EQUITY - ACCUMULAT
COMMON STOCK EQUITY - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 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 | $ (2,364) | $ (3,622) | (25,055) | $ 6,474 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 272 | 318 | 12,431 | (2,220) |
Other comprehensive (loss) income | (2,092) | (3,304) | (12,624) | 4,254 |
Balance as of end of period | 1,449,962 | 1,449,962 | ||
Available for Sale Securities | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance as of beginning of period | 0 | 11,121 | 11,044 | 4,198 |
Other comprehensive income (loss), before reclassifications, net of tax | (2,364) | (3,622) | (25,055) | 6,474 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | 11,647 | (3,173) |
Other comprehensive (loss) income | (2,364) | (3,622) | (13,408) | 3,301 |
Balance as of end of period | (2,364) | 7,499 | (2,364) | 7,499 |
Tax on other comprehensive income (loss) before reclassifications | (854) | (2,375) | (9,071) | 4,273 |
Tax on amounts reclassified from accumulated other comprehensive income | 0 | 0 | 858 | (2,192) |
Tax on net current-period other comprehensive income (loss) | (854) | (2,375) | (8,213) | 2,081 |
Postemployment Benefit Obligation | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance as of beginning of period | (13,788) | (18,718) | (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 | 784 | 953 |
Other comprehensive (loss) income | 272 | 318 | 784 | 953 |
Balance as of end of period | (13,516) | (18,400) | (13,516) | (18,400) |
Tax on other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Tax on amounts reclassified from accumulated other comprehensive income | 104 | 217 | 344 | 651 |
Tax on net current-period other comprehensive income (loss) | 104 | 217 | 344 | 651 |
Total | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance as of beginning of period | (13,788) | (7,597) | (3,256) | (15,155) |
Balance as of end of period | (15,880) | (10,901) | (15,880) | (10,901) |
Tax on other comprehensive income (loss) before reclassifications | (854) | (2,375) | (9,071) | 4,273 |
Tax on amounts reclassified from accumulated other comprehensive income | 104 | 217 | 1,202 | (1,541) |
Tax on net current-period other comprehensive income (loss) | $ (750) | $ (2,158) | $ (7,869) | $ 2,732 |
DEBT - CREDIT FACILITIES (Detai
DEBT - CREDIT FACILITIES (Details) - USD ($) | 9 Months Ended | |||
Jun. 30, 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 | $ 9,400,000 | |||
NJR | Notes | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding at end of period | $ 42,100,000 | $ 255,000,000 | ||
Weighted average interest rate at end of period | 2.90% | 2.14% | ||
Amount available at end of period | $ 373,519,000 | $ 156,601,000 | ||
NJR | Revolving Credit Facility | Committed Credit Facilities Due September 2020 | ||||
Line of Credit Facility [Line Items] | ||||
Bank revolving credit facilities | 425,000,000 | 425,000,000 | ||
NJR | Revolving Credit Facility | Committed Credit Facilities Due April 2018 | ||||
Line of Credit Facility [Line Items] | ||||
Bank revolving credit facilities | $ 100,000,000 | $ 75,000,000 | ||
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 | $ 15,000,000 | $ 11,000,000 | ||
Weighted average interest rate at end of period | 1.97% | 1.13% | ||
Amount available at end of period | $ 234,269,000 | $ 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 ($) $ in Thousands | Mar. 13, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 08, 2018 | May 11, 2018 | Jan. 26, 2018 | Aug. 18, 2017 | Jun. 01, 2015 |
Debt Instrument [Line Items] | ||||||||||
Proceeds from sale-leaseback transaction | $ 7,820 | $ 9,587 | ||||||||
Natural Gas Distribution | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from sale-leaseback transaction | $ 7,800 | $ 9,600 | ||||||||
Sale leaseback transaction, other payments required | $ 1,100 | $ 1,000 | ||||||||
Treasury Lock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Derivative, notional amount | $ 125,000 | |||||||||
Benchmark interest rate | 3.26% | |||||||||
Treasury lock settlement, loss | $ 2,600 | |||||||||
4.01% Senior Notes Due May 11, 2048 | Natural Gas Distribution | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, stated percentage | 4.01% | |||||||||
3.96% Senior Notes Due June 8, 2028 | NJR | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, stated percentage | 3.96% | |||||||||
Face amount | $ 100,000 | |||||||||
Credit Agreement Due August 16, 2019 | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes | $ 100,000 | |||||||||
Weighted average interest rate at end of period | 2.84% | |||||||||
Natural Gas Distribution | Series Ll | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, stated percentage | 5.60% | |||||||||
Senior notes | $ 125,000 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Apr. 30, 2018 | |
Components of net periodic cost | |||||
Discretionary contribution | $ 0 | ||||
Postemployment benefits, expected future benefit payment | $ 6,400,000 | ||||
Postemployment benefits, period expense | 4,600,000 | ||||
Pension | |||||
Components of net periodic cost | |||||
Service cost | $ 2,035,000 | $ 2,086,000 | 6,104,000 | $ 6,260,000 | |
Interest cost | 2,623,000 | 2,443,000 | 7,870,000 | 7,328,000 | |
Expected return on plan assets | (4,910,000) | (4,829,000) | (14,729,000) | (14,485,000) | |
Recognized actuarial loss | 1,884,000 | 2,207,000 | 5,653,000 | 6,620,000 | |
Prior service cost amortization | 27,000 | 28,000 | 80,000 | 83,000 | |
Net periodic benefit cost | 1,659,000 | 1,935,000 | 4,978,000 | 5,806,000 | |
OPEB | |||||
Components of net periodic cost | |||||
Service cost | 1,152,000 | 1,095,000 | 3,455,000 | 3,285,000 | |
Interest cost | 1,591,000 | 1,386,000 | 4,773,000 | 4,159,000 | |
Expected return on plan assets | (1,338,000) | (1,192,000) | (4,014,000) | (3,575,000) | |
Recognized actuarial loss | 1,165,000 | 1,093,000 | 3,495,000 | 3,278,000 | |
Prior service cost amortization | (91,000) | (91,000) | (273,000) | (273,000) | |
Net periodic benefit cost | $ 2,479,000 | $ 2,291,000 | $ 7,436,000 | $ 6,874,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Mar. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | May 22, 2018 |
Operating Loss Carryforwards [Line Items] | ||||||||
Federal statutory income tax rate, percent | 24.50% | |||||||
Public utilities, revaluation of deferred income taxes, liability | $ 20,100 | |||||||
Public utilities, overcollection of taxes and interest, liability | 9,000 | |||||||
Public utilities, remeasurement of deferred income tax, liability | 14,300 | |||||||
Public utilities, income tax effects on revaluation | 5,800 | |||||||
Tax Cuts And Jobs Act Of 2017, incomplete accounting, change in tax rate, deferred tax liability | $ 988 | $ 988 | ||||||
Income tax (benefit) provision | (28,534) | $ (5,816) | (47,801) | $ 20,134 | ||||
Regulatory liabilities-noncurrent | 211,431 | 211,431 | $ 14,507 | |||||
Tax Cuts And Jobs Act Of 2017, income tax benefit | $ 844 | (57,688) | ||||||
Forecasted effective tax rate | 14.30% | 13.10% | ||||||
Forecasted tax credits, net of deferred tax | 36,400 | |||||||
Excess tax benefits associated with vesting of share-based awards | $ 2,900 | $ 4,600 | ||||||
Actual effective tax rate since tax effects of awards are treated as discrete item | (23.70%) | 10.70% | ||||||
Deferred tax assets, federal | $ 28,500 | $ 28,500 | 28,500 | |||||
Deferred tax asset, state | 33,800 | 33,800 | 23,600 | |||||
ITC carryforward | 130,300 | $ 130,300 | 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 | 494,100 | 494,100 | 471,700 | |||||
Scenario, Forecast | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Forecasted tax credits, net of deferred tax | $ 22,000 | |||||||
MONTANA | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Valuation allowance | 2,500 | 2,500 | 1,000 | |||||
Corporate, Non-Segment | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Income tax (benefit) provision | 1,122 | $ 853 | 11,539 | $ 1,674 | ||||
Tax Cuts And Jobs Act Of 2017, income tax benefit | 59 | 10,782 | ||||||
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 | (142) | (13,946) | ||||||
Energy Services | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Tax Cuts And Jobs Act Of 2017, income tax benefit | 1,598 | 9,249 | ||||||
Clean Energy Ventures | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Tax Cuts And Jobs Act Of 2017, income tax benefit | (671) | (63,773) | ||||||
March 2018 Required BPU Filing | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Requested customer refunds, amount | $ 31,000 | |||||||
Deferred income taxes | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Income tax (benefit) provision | (16,100) | |||||||
Public utilities, amortization of excess deferred income taxes, liability | 890 | |||||||
Public utilities, revaluation of deferred income taxes not included in base rates, liability | $ 880 | |||||||
Regulatory liabilities-noncurrent | $ 206,832 | $ 206,832 | $ 0 |
COMMITMENTS AND CONTINGENT LI65
COMMITMENTS AND CONTINGENT LIABILITIES - SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018 | Sep. 30, 2017 | |
Long-term Purchase Commitment [Line Items] | ||
Regulatory assets | $ 348,079 | $ 375,919 |
Current charges recoverable through BGSS | 27,100 | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | ||
2,018 | 257,557 | |
2,019 | 437,684 | |
2,020 | 259,354 | |
2,021 | 193,496 | |
2,022 | 171,898 | |
Thereafter | 788,025 | |
Energy Services | ||
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | ||
2,018 | 202,811 | |
2,019 | 269,093 | |
2,020 | 88,711 | |
2,021 | 51,932 | |
2,022 | 32,698 | |
Thereafter | 29,129 | |
Energy Services | Natural gas purchases | ||
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | ||
2,018 | 170,111 | |
2,019 | 187,185 | |
2,020 | 20,893 | |
2,021 | 10,681 | |
2,022 | 0 | |
Thereafter | 0 | |
Energy Services | Storage demand fees | ||
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | ||
2,018 | 9,445 | |
2,019 | 31,234 | |
2,020 | 19,636 | |
2,021 | 13,192 | |
2,022 | 8,551 | |
Thereafter | 4,991 | |
Energy Services | Pipeline demand fees | ||
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | ||
2,018 | 23,255 | |
2,019 | 50,674 | |
2,020 | 48,182 | |
2,021 | 28,059 | |
2,022 | 24,147 | |
Thereafter | $ 24,138 | |
Energy Services | Minimum | ||
Long-term Purchase Commitment [Line Items] | ||
Storage and pipeline capacity, contract term | 1 year | |
Energy Services | Maximum | ||
Long-term Purchase Commitment [Line Items] | ||
Storage and pipeline capacity, contract term | 10 years | |
Natural Gas Distribution | ||
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | ||
2,018 | $ 54,746 | |
2,019 | 168,591 | |
2,020 | 170,643 | |
2,021 | 141,564 | |
2,022 | 139,200 | |
Thereafter | 758,896 | |
Natural Gas Distribution | Natural gas purchases | ||
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | ||
2,018 | 27,630 | |
2,019 | 56,627 | |
2,020 | 38,479 | |
2,021 | 34,411 | |
2,022 | 34,740 | |
Thereafter | 72,995 | |
Natural Gas Distribution | Storage demand fees | ||
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | ||
2,018 | 7,741 | |
2,019 | 31,362 | |
2,020 | 24,245 | |
2,021 | 14,243 | |
2,022 | 12,922 | |
Thereafter | 13,920 | |
Natural Gas Distribution | Pipeline demand fees | ||
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | ||
2,018 | 19,375 | |
2,019 | 80,602 | |
2,020 | 107,919 | |
2,021 | 92,910 | |
2,022 | 91,538 | |
Thereafter | 671,981 | |
Expended, net of recoveries | ||
Long-term Purchase Commitment [Line Items] | ||
Regulatory assets | $ 29,647 | $ 28,547 |
COMMITMENTS AND CONTINGENT LI66
COMMITMENTS AND CONTINGENT LIABILITIES - LEGAL PROCEEDINGS (Details) | 9 Months Ended | |
Jun. 30, 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 | $ 348,079,000 | $ 375,919,000 |
Manufactured gas plant remediation | 140,821,000 | 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 | 29,647,000 | 28,547,000 |
Liability for future expenditures | ||
Site Contingency [Line Items] | ||
Regulatory assets | 140,821,000 | $ 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 O67
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT INCOME TO CONSOLIDATED (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Utility | $ 104,538 | $ 121,362 | $ 631,389 | $ 602,464 |
Nonutility | 438,897 | 336,161 | 1,636,394 | 1,129,633 |
Total operating revenues | 543,435 | 457,523 | 2,267,783 | 1,732,097 |
Depreciation and amortization | 20,320 | 20,760 | 64,634 | 60,348 |
Interest income | 202 | 159 | 452 | 342 |
Interest expense, net of capitalized interest | 11,037 | 11,164 | 34,740 | 33,215 |
Income tax (benefit) provision | (28,534) | (5,816) | (47,801) | 20,134 |
Equity in earnings of affiliates | 3,213 | 3,065 | 9,670 | 10,455 |
Net financial earnings | (8,003) | 17,395 | 269,392 | 161,884 |
Capital expenditures | 101,767 | 74,705 | 266,705 | 238,725 |
Investments in equity investees | 3,319 | 13,559 | 14,496 | 24,097 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating revenues | 529,291 | 443,416 | 2,286,298 | 1,702,496 |
Depreciation and amortization | 20,197 | 20,596 | 64,228 | 59,889 |
Interest income | 1,281 | 789 | 3,072 | 1,935 |
Interest expense, net of capitalized interest | 11,986 | 11,436 | 36,751 | 33,788 |
Income tax (benefit) provision | (29,676) | (6,784) | (58,695) | 18,211 |
Net financial earnings | (9,979) | 16,119 | 277,805 | 158,853 |
Capital expenditures | 101,022 | 74,288 | 265,405 | 237,792 |
Operating Segments | Natural Gas Distribution | ||||
Segment Reporting Information [Line Items] | ||||
Utility | 104,538 | 121,362 | 631,389 | 602,464 |
Depreciation and amortization | 13,473 | 12,425 | 39,609 | 36,718 |
Interest income | 202 | 202 | 452 | 374 |
Interest expense, net of capitalized interest | 6,226 | 6,294 | 19,285 | 19,510 |
Income tax (benefit) provision | (25,314) | 1,496 | 4,381 | 46,882 |
Net financial earnings | 2,440 | 5,951 | 96,991 | 96,532 |
Capital expenditures | 70,623 | 42,235 | 173,410 | 115,834 |
Operating Segments | Clean Energy Ventures | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 15,348 | 14,915 | 42,210 | 35,425 |
Depreciation and amortization | 6,702 | 8,154 | 24,565 | 23,118 |
Interest expense, net of capitalized interest | 4,708 | 4,345 | 13,260 | 11,724 |
Income tax (benefit) provision | (565) | (8,122) | (87,275) | (44,765) |
Net financial earnings | (829) | 6,276 | 80,472 | 31,861 |
Capital expenditures | 29,424 | 32,053 | 88,416 | 121,958 |
Operating Segments | Energy Services | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 409,417 | 307,448 | 1,563,063 | 1,063,986 |
Depreciation and amortization | 21 | 16 | 50 | 49 |
Interest income | 134 | 6 | 240 | 6 |
Interest expense, net of capitalized interest | 581 | 586 | 3,041 | 1,873 |
Income tax (benefit) provision | (4,786) | (1,767) | 32,922 | 11,334 |
Net financial earnings | (15,079) | 933 | 78,027 | 20,166 |
Operating Segments | Midstream | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 1 | 1 | 4 | 4 |
Interest income | 945 | 581 | 2,380 | 1,555 |
Interest expense, net of capitalized interest | 471 | 211 | 1,165 | 681 |
Income tax (benefit) provision | 989 | 1,609 | (8,723) | 4,760 |
Equity in earnings of affiliates | 3,907 | 4,049 | 12,104 | 13,499 |
Net financial earnings | 3,489 | 2,959 | 22,315 | 10,294 |
Capital expenditures | 975 | 0 | 3,579 | 0 |
Investments in equity investees | 3,319 | 13,559 | 14,496 | 24,097 |
Intercompany | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 627 | 610 | 1,856 | 2,696 |
Intercompany | Energy Services | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | (12) | (309) | 49,636 | 621 |
Home Services and Other | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 14,132 | 13,798 | 31,121 | 30,222 |
Depreciation and amortization | 193 | 186 | 570 | 606 |
Interest income | 340 | 155 | 898 | 408 |
Interest expense, net of capitalized interest | (129) | 116 | (18) | 313 |
Income tax (benefit) provision | 1,122 | 853 | 11,539 | 1,674 |
Net financial earnings | 1,993 | 1,295 | (8,211) | 3,545 |
Capital expenditures | 745 | 417 | 1,300 | 933 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | (615) | (301) | (51,492) | (3,317) |
Depreciation and amortization | (70) | (22) | (164) | (147) |
Interest income | (1,419) | (785) | (3,518) | (2,001) |
Interest expense, net of capitalized interest | (820) | (388) | (1,993) | (886) |
Income tax (benefit) provision | 20 | 115 | (645) | 249 |
Equity in earnings of affiliates | (694) | (984) | (2,434) | (3,044) |
Net financial earnings | $ (17) | $ (19) | $ (202) | $ (514) |
REPORTING SEGMENT AND OTHER O68
REPORTING SEGMENT AND OTHER OPERATIONS DATA - NET FINANCIAL EARNINGS (LOSS) RECONCILIATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting [Abstract] | ||||
Net financial earnings | $ (8,003) | $ 17,395 | $ 269,392 | $ 161,884 |
Less: | ||||
Unrealized (gain) loss on derivative instruments and related transactions | 2,657 | (15,981) | 25,904 | (42,534) |
Tax effect | (577) | 5,985 | (3,920) | 15,907 |
Effects of economic hedging related to natural gas inventory | 4,474 | 13,203 | (14,788) | 29,592 |
Tax effect | (1,011) | (4,947) | 5,518 | (11,077) |
Net income to NFE tax adjustment | 728 | 178 | 6,987 | 1,408 |
NET (LOSS) INCOME | (14,274) | $ 18,957 | 249,691 | $ 168,588 |
Tax Cuts And Jobs Act Of 2017, income tax benefit | $ 844 | $ (57,688) |
REPORTING SEGMENT AND OTHER O69
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | $ 844 | $ (57,688) | ||
Total assets | 3,977,388 | 3,977,388 | $ 3,928,507 | |
Assets held for sale | 206,898 | 206,898 | 0 | |
Clean Energy Ventures | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | (671) | (63,773) | ||
Energy Services | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | 1,598 | 9,249 | ||
Midstream | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | (142) | (13,946) | ||
Operating Segments | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 3,986,600 | 3,986,600 | 3,922,001 | |
Operating Segments | Natural Gas Distribution | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 2,558,895 | 2,558,895 | 2,519,578 | |
Operating Segments | Clean Energy Ventures | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 796,380 | 796,380 | 771,340 | |
Operating Segments | Energy Services | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 375,548 | 375,548 | 398,277 | |
Operating Segments | Midstream | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 255,777 | 255,777 | 232,806 | |
Home Services and Other | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | 59 | 10,782 | ||
Total assets | 143,469 | 143,469 | 114,801 | |
Intercompany Assets | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | (152,681) | (152,681) | $ (108,295) | |
Wind Assets And Related Liabilities [Member] | Clean Energy Ventures | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets held for sale | $ 206,898 | $ 206,898 | $ 224,898 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | Apr. 01, 2010USD ($)Bcf | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Bcf / dcontract | Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) |
Related Party Transaction [Line Items] | ||||||
Demand fees expense recognized pertaining to related party agreement | $ 2,156 | $ 2,076 | $ 6,392 | $ 6,259 | ||
Demand fees payable | 1,150 | $ 1,150 | $ 1,152 | |||
Number of asset management agreements | contract | 3 | |||||
NJNG to NJRES Affilate | ||||||
Related Party Transaction [Line Items] | ||||||
Asset management agreement, period | 10 years | |||||
NJNG to Steckman RIdge Affiliate | ||||||
Related Party Transaction [Line Items] | ||||||
Natural gas sold at cost under asset management agreement (in Bcf) | Bcf | 3 | |||||
Approximate annual demand fees under agreement | $ 9,300 | |||||
Demand fees expense recognized pertaining to related party agreement | 1,451 | 1,395 | $ 4,306 | 4,188 | ||
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 | 705 | $ 681 | 2,086 | $ 2,071 | ||
Demand fees payable | $ 375 | $ 375 | $ 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 | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
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 | |||
Natural gas transportation capacity agreement, period | 10 years | |||
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 |
DISPOSITIONS (Details)
DISPOSITIONS (Details) $ in Thousands | Jun. 01, 2018USD ($)MW | Feb. 28, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of business | $ 27,916 | $ 0 | ||
Gain on sale of business, net | 4,687 | $ 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 | $ 3,700 | |||
Clean Energy Ventures | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Wind farm total capacity | MW | 9.7 | |||
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 | |||
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 | $ (965) |