Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Nov. 19, 2019 | Mar. 29, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-08359 | ||
Entity Registrant Name | NEW JERSEY RESOURCES CORPORATION | ||
Entity Incorporation, State or Country Code | NJ | ||
Entity Tax Identification Number | 22-2376465 | ||
Entity Address, Address Line One | 1415 Wyckoff Road, | ||
Entity Address, City or Town | Wall, | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07719 | ||
City Area Code | (732) | ||
Local Phone Number | 938‑1000 | ||
Title of 12(b) Security | Common Stock ‑ $2.50 Par Value | ||
Trading Symbol | NJR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,363,911,091 | ||
Entity Common Stock, Shares Outstanding | 90,164,811 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000356309 | ||
Current Fiscal Year End Date | --09-30 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for the Annual Meeting of Shareowners (Proxy Statement) to be held on January 22, 2020 , are incorporated by reference into Part I and Part III of this report. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING REVENUES | |||
Utility | $ 710,793 | $ 731,865 | $ 695,637 |
Nonutility | 1,881,252 | 2,183,244 | 1,572,980 |
Total operating revenues | 2,592,045 | 2,915,109 | 2,268,617 |
Gas purchases: | |||
Related parties | 7,948 | 8,505 | 8,340 |
Operation and maintenance | 256,951 | 263,113 | 222,176 |
Regulatory rider expenses | 33,937 | 38,969 | 40,243 |
Depreciation and amortization | 91,730 | 85,701 | 81,841 |
Energy and other taxes | 11,190 | 52,102 | 49,366 |
Total operating expenses | 2,438,110 | 2,715,227 | 2,097,393 |
OPERATING INCOME | 153,935 | 199,882 | 171,224 |
Other income, net | 11,273 | 13,047 | 10,257 |
Interest expense, net of capitalized interest | 47,082 | 46,286 | 44,886 |
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES | 118,126 | 166,643 | 136,595 |
Income tax (benefit) provision | (37,751) | (53,785) | 18,343 |
Equity in earnings of affiliates | 13,628 | 13,008 | 13,813 |
NET INCOME | $ 169,505 | $ 233,436 | $ 132,065 |
EARNINGS PER COMMON SHARE | |||
Basic (in dollars per share) | $ 1.90 | $ 2.66 | $ 1.53 |
Diluted (in dollars per share) | $ 1.89 | $ 2.64 | $ 1.52 |
WEIGHTED AVERAGE SHARES OUTSTANDING | |||
Basic (in shares) | 89,242 | 87,689 | 86,321 |
Diluted (in shares) | 89,616 | 88,315 | 87,144 |
Utility | |||
Gas purchases: | |||
Gas purchases | $ 320,256 | $ 276,005 | $ 258,687 |
Nonutility | |||
Gas purchases: | |||
Gas purchases | $ 1,716,098 | $ 1,990,832 | $ 1,436,740 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 169,505 | $ 233,436 | $ 132,065 |
Other comprehensive (loss) income, net of tax: | |||
Unrealized (loss) gain on investments in equity securities, net of tax of $0, $6,973 and $(4,401), respectively | 0 | (19,245) | 6,846 |
Reclassifications of losses to net income on investments in equity securities, net of tax of $0, $(858) and $0, respectively | 0 | 11,647 | 0 |
Adjustment to postemployment benefit obligation, net of tax of $6,106, $(573) and $(3,487), respectively | (15,731) | 1,520 | 5,053 |
Other comprehensive (loss) income | (15,731) | (6,078) | 11,899 |
Comprehensive income | $ 153,774 | $ 227,358 | $ 143,964 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Tax on unrealized gain (loss) on available for sale securities | $ 0 | $ 6,973 | $ (4,401) |
Tax on reclassifications of available for sale securities | 0 | (858) | 0 |
Tax on adjustment to postemployment benefit obligation | $ 6,106 | $ (573) | $ (3,487) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 169,505 | $ 233,436 | $ 132,065 |
Adjustments to reconcile net income to cash flows from operating activities | |||
Unrealized loss (gain) on derivative instruments | 2,881 | 26,770 | (11,241) |
Gain on sale of available for sale securities | (1,567) | (5,332) | (7,287) |
Gain on sale of businesses | (645) | (4,663) | 0 |
Depreciation and amortization | 91,730 | 85,701 | 81,841 |
Amortization of acquired wholesale energy contracts | 8,424 | 18,222 | 762 |
Allowance for equity used during construction | (6,492) | (5,531) | (3,867) |
Allowance for doubtful accounts | 2,387 | 2,579 | 2,023 |
Deferred income taxes | (59,013) | 15,590 | 41,442 |
Deferred income tax benefit due to tax legislation | 0 | (75,736) | 0 |
Equivalent value of ITCs recognized on equipment financing | (6,482) | 0 | 0 |
Manufactured gas plant remediation costs | (13,878) | (16,171) | (10,934) |
Equity in earnings, net of distributions received from equity investees | (4,156) | (1,725) | (462) |
Cost of removal - asset retirement obligations | (258) | (298) | (484) |
Contributions to postemployment benefit plans | (8,157) | (6,359) | (6,077) |
Tax benefit of delivered shares from stock based compensation | 1,290 | 2,950 | 1,285 |
Changes in: | |||
Components of working capital | (27,759) | 97,004 | 17,081 |
Other noncurrent assets | 3,415 | 17,860 | 13,978 |
Other noncurrent liabilities | 38,125 | 13,989 | (2,079) |
Cash flows from operating activities | 189,350 | 398,286 | 248,046 |
Expenditures for: | |||
Utility plant | (300,031) | (206,880) | (144,106) |
Solar and wind equipment | (157,828) | (123,421) | (149,400) |
Midstream and other | (23,100) | (6,644) | (2,434) |
Cost of removal | (40,195) | (47,643) | (32,143) |
Acquisition of retail and wholesale energy contracts | 0 | 0 | (55,661) |
Investments in equity investees | (4,102) | (16,151) | (27,070) |
Distributions from equity investees in excess of equity in earnings | 2,428 | 3,117 | 2,749 |
Cash paid related to acquisition | 0 | (10,000) | 0 |
Proceeds from sale of property, net of closing costs | 0 | 0 | 9,443 |
Proceeds from sale of businesses, net of closing costs | 205,745 | 27,916 | 0 |
Proceeds from sale of available for sale securities, net | 34,484 | 6,616 | 6,639 |
Cash flows used in investing activities | (282,599) | (373,090) | (391,983) |
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | |||
Proceeds from long-term debt | 467,900 | 225,000 | 100,000 |
Payments of long-term debt | (218,638) | (165,486) | (97,854) |
(Payments of) proceeds from short-term debt, net | (126,500) | (114,050) | 144,300 |
Proceeds from sale-leaseback transaction - solar | 0 | 71,538 | 32,901 |
Proceeds from sale-leaseback transaction - gas meters | 9,895 | 7,820 | 9,587 |
Payments of common stock dividends | (104,059) | (95,835) | (87,988) |
Proceeds from waiver discount issuance of common stock | 57,391 | 41,677 | 0 |
Proceeds from issuance of common stock | 16,717 | 17,136 | 17,492 |
Purchases of treasury stock | 0 | 0 | (6,355) |
Tax withholding payments related to net settled stock compensation | (7,104) | (13,755) | (4,788) |
Cash flows from (used in) financing activities | 95,602 | (25,955) | 107,295 |
Change in cash, cash equivalents and restricted cash | 2,353 | (759) | (36,642) |
Cash, cash equivalents and restricted cash at beginning of period | 1,710 | 2,469 | 39,111 |
Cash, cash equivalents and restricted cash at end of period | 4,063 | 1,710 | 2,469 |
CHANGES IN COMPONENTS OF WORKING CAPITAL | |||
Receivables | 63,795 | (7,524) | (56,974) |
Inventories | 14,265 | 15,464 | 3,022 |
Recovery of gas costs | (15,733) | 30,439 | (90) |
Gas purchases payable | (74,031) | 51,187 | 20,663 |
Gas purchases payable - related parties | (360) | (1) | 2 |
Prepaid and accrued taxes | 2,271 | 1,254 | 10,366 |
Accounts payable and other | 2,256 | 40,422 | 13,086 |
Restricted broker margin accounts | (22,004) | (30,974) | 22,570 |
Customers’ credit balances and deposits | (209) | 368 | (5,877) |
Other current assets | 1,991 | (3,631) | 10,313 |
Total | (27,759) | 97,004 | 17,081 |
Cash paid (received) for: | |||
Interest (net of amounts capitalized) | 50,371 | 44,821 | 44,362 |
Income taxes | 12,647 | 5,577 | (6,877) |
Accrued capital expenditures | 30,725 | 30,559 | 21,769 |
Inception gain on natural gas swap contract recognized as non-cash proceeds from sale of business | $ 0 | $ 14,579 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
PROPERTY, PLANT AND EQUIPMENT | ||
Utility plant, at cost | $ 2,625,730 | $ 2,368,914 |
Construction work in progress | 232,233 | 192,481 |
Nonutility plant and equipment, at cost | 861,904 | 697,406 |
Construction work in progress | 62,492 | 45,690 |
Total property, plant and equipment | 3,782,359 | 3,304,491 |
Accumulated depreciation and amortization, utility plant | (585,160) | (530,753) |
Accumulated depreciation and amortization, nonutility plant and equipment | (156,033) | (122,689) |
Property, plant and equipment, net | 3,041,166 | 2,651,049 |
CURRENT ASSETS | ||
Cash and cash equivalents | 2,676 | 1,458 |
Customer accounts receivable: | ||
Billed | 139,263 | 205,490 |
Unbilled revenues | 6,510 | 7,199 |
Allowance for doubtful accounts | (6,148) | (5,704) |
Regulatory assets | 32,871 | 18,297 |
Gas in storage, at average cost | 169,803 | 184,633 |
Materials and supplies, at average cost | 14,475 | 13,910 |
Prepaid and accrued taxes | 22,602 | 23,047 |
Derivatives, at fair value | 25,103 | 27,396 |
Restricted broker margin accounts | 73,723 | 53,719 |
Asset held for sale | 0 | 206,905 |
Other current assets | 30,728 | 33,730 |
Total current assets | 511,606 | 770,080 |
NONCURRENT ASSETS | ||
Investments in equity investees | 200,268 | 190,866 |
Regulatory assets | 496,637 | 368,592 |
Derivatives, at fair value | 7,426 | 10,560 |
Available for sale securities | 0 | 32,917 |
Intangible assets | 14,611 | 23,375 |
Other noncurrent assets | 101,271 | 96,225 |
Total noncurrent assets | 820,213 | 722,535 |
Total assets | 4,372,985 | 4,143,664 |
CAPITALIZATION | ||
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding September 30, 2019 — 89,998,788; September 30, 2018 — 88,292,956 | 226,649 | 226,196 |
Premium on common stock | 291,331 | 274,748 |
Accumulated other comprehensive loss, net of tax | (31,787) | (12,610) |
Treasury stock at cost and other; shares September 30, 2019 — 660,734; September 30, 2018 — 2,185,013 | (10,436) | (76,473) |
Retained earnings | 1,075,960 | 1,007,117 |
Common stock equity | 1,551,717 | 1,418,978 |
Long-term debt | 1,537,177 | 1,180,619 |
Total capitalization | 3,088,894 | 2,599,597 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 21,419 | 123,545 |
Short-term debt | 25,450 | 151,950 |
Gas purchases payable | 137,271 | 211,303 |
Gas purchases payable to related parties | 790 | 1,150 |
Accounts payable and other | 129,724 | 135,240 |
Dividends payable | 28,122 | 25,824 |
Accrued taxes | 3,394 | 1,568 |
Regulatory liabilities | 0 | 8,185 |
New Jersey Clean Energy Program | 15,468 | 14,052 |
Derivatives, at fair value | 57,623 | 46,652 |
Liabilities held for sale | 0 | 4,182 |
Customers’ credit balances and deposits | 27,116 | 27,325 |
Total current liabilities | 446,377 | 750,976 |
NONCURRENT LIABILITIES | ||
Deferred income taxes | 190,663 | 242,436 |
Deferred investment tax credits | 3,653 | 3,976 |
Deferred gain | 1,554 | 9,104 |
Derivatives, at fair value | 18,821 | 22,982 |
Manufactured gas plant remediation | 131,080 | 130,800 |
Postemployment employee benefit liability | 246,517 | 137,007 |
Regulatory liabilities | 202,435 | 209,139 |
Asset retirement obligation | 31,046 | 28,688 |
Other noncurrent liabilities | 11,945 | 8,959 |
Total noncurrent liabilities | 837,714 | 793,091 |
Commitments and contingent liabilities | ||
Total capitalization and liabilities | $ 4,372,985 | $ 4,143,664 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2019 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 2.5 | $ 2.5 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares outstanding (in shares) | 89,998,788 | 88,292,956 |
Treasury stock at cost and other (in shares) | 660,734 | 2,185,013 |
CONSOLIDATED STATEMENTS OF COMM
CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY - USD ($) $ in Thousands | Total | Common Stock | Premium on Common Stock | Accumulated Other Comprehensive (Loss) Income | Treasury Stock And Other | Retained Earnings | |
Beginning Balance (in shares) at Sep. 30, 2016 | 86,086,000 | ||||||
Beginning Balance at Sep. 30, 2016 | $ 1,166,591 | $ 221,654 | $ 215,580 | $ (15,155) | $ (81,044) | $ 825,556 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 132,065 | 132,065 | |||||
Other comprehensive income (loss) | 11,899 | 11,899 | |||||
Common stock issued: | |||||||
Incentive compensation plan (in shares) | 241,000 | ||||||
Incentive compensation plan | 5,694 | $ 604 | 5,090 | ||||
Dividend reinvestment plan (in shares) | [1] | 472,000 | |||||
Dividend reinvestment plan | [1] | 17,622 | (946) | 18,568 | |||
Cash dividend declared ($1.19 per share in 2019, $1.11 per share in 2018, and $1.0375 per share in 2017) | (89,637) | (89,637) | |||||
Treasury stock and other (in shares) | (243,000) | ||||||
Treasury stock and other | (7,591) | (28) | (7,563) | ||||
Ending Balance (in shares) at Sep. 30, 2017 | 86,556,000 | ||||||
Ending Balance at Sep. 30, 2017 | 1,236,643 | $ 222,258 | 219,696 | (3,256) | (70,039) | 867,984 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 233,436 | 233,436 | |||||
Other comprehensive income (loss) | (6,078) | (6,078) | |||||
Common stock issued: | |||||||
Incentive compensation plan (in shares) | 561,000 | ||||||
Incentive compensation plan | 16,572 | $ 1,403 | 15,169 | ||||
Dividend reinvestment plan (in shares) | [1] | 413,000 | |||||
Dividend reinvestment plan | [1] | 17,094 | 755 | 16,339 | |||
Waiver discount (in shares) | 1,014,000 | ||||||
Waiver discount | 41,677 | $ 2,535 | 39,142 | ||||
Cash dividend declared ($1.19 per share in 2019, $1.11 per share in 2018, and $1.0375 per share in 2017) | (97,579) | (97,579) | |||||
Treasury stock and other (in shares) | (251,000) | ||||||
Treasury stock and other | $ (22,787) | (14) | (22,773) | ||||
Reclassifications of certain income tax effects to retained earnings | (3,276) | 3,276 | |||||
Ending Balance (in shares) at Sep. 30, 2018 | 88,292,956 | 88,293,000 | |||||
Ending Balance at Sep. 30, 2018 | $ 1,418,978 | $ 226,196 | 274,748 | (12,610) | (76,473) | 1,007,117 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 169,505 | 169,505 | |||||
Other comprehensive income (loss) | (15,731) | (15,731) | |||||
Common stock issued: | |||||||
Incentive compensation plan (in shares) | 182,000 | ||||||
Incentive compensation plan | 3,787 | $ 453 | 3,334 | ||||
Dividend reinvestment plan (in shares) | [1] | 351,000 | |||||
Dividend reinvestment plan | [1] | 16,663 | 2,718 | 13,945 | |||
Waiver discount (in shares) | 1,181,000 | ||||||
Waiver discount | 57,391 | 10,531 | 46,860 | ||||
Cash dividend declared ($1.19 per share in 2019, $1.11 per share in 2018, and $1.0375 per share in 2017) | (106,342) | (106,342) | |||||
Treasury stock and other (in shares) | (8,000) | ||||||
Treasury stock and other | $ 5,232 | 5,232 | |||||
Ending Balance (in shares) at Sep. 30, 2019 | 89,998,788 | 89,999,000 | |||||
Ending Balance at Sep. 30, 2019 | $ 1,551,717 | $ 226,649 | $ 291,331 | $ (31,787) | $ (10,436) | $ 1,075,960 | |
[1] | Shares sold through the DRP are issued from treasury stock at average cost, which may differ from the actual market price paid. |
CONSOLIDATED STATEMENTS OF CO_3
CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared per share (in usd per share) | $ 1.19 | $ 1.11 | $ 1.0375 |
NATURE OF THE BUSINESS
NATURE OF THE BUSINESS | 12 Months Ended |
Sep. 30, 2019 | |
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: New Jersey Natural Gas Company provides natural gas utility service to approximately 547,600 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. Clean Energy Ventures finalized the sale of its remaining wind assets on February 7, 2019 ; see Note 17. Acquisitions and 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, retail 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. NJRRS was sold to an unrelated third party on February 28, 2018 . See Note 17. Acquisitions and Dispositions for more details regarding the sale. 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; NJNR Pipeline; and NJR Pipeline Company, which includes Adelphia Gateway, LLC and the Company's 20 percent ownership interest in PennEast . See Note 7. 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 | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Other financial investments or contractual interests that lack the characteristics of a voting interest entity, which are commonly referred to as variable interest entities, are evaluated by the Company to determine if the entity has the power to direct business activities and, therefore, would be considered a controlling interest that the Company would have to consolidate. Based on those evaluations, NJR has determined that it does not have any investments in variable interest entities as of September 30, 2019 , 2018 and 2017 . Investments in entities over which the Company does not have a controlling financial interest are either accounted for under the equity method or cost method of accounting. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a quarterly basis or more frequently whenever events or changes in circumstances indicate a need, the Company evaluates its estimates, including those related to the calculation of the fair value of derivative instruments, debt, equity method investments, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, long-lived assets, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation. ARO are evaluated as often as needed. The Company’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The Company has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, the Company will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is the Company’s policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is the Company’s policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates. Acquisitions The Company follows the guidance in ASC 805, Business Combinations, for determining the appropriate accounting treatment for acquisitions. ASU No. 2017-01, Clarifying the Definition of a Business , provides an initial fair value screen to determine if substantially all of the fair value of the assets acquired is concentrated in a single asset or group of similar assets. If the initial screening test is not met, the set is considered a business based on whether there are inputs and substantive processes in place. Based on the results of this analysis and conclusion on an acquisition’s classification of a business combination or an asset acquisition, the accounting treatment is derived. If the acquisition is deemed to be a business, the acquisition method of accounting is applied. Identifiable assets acquired and liabilities assumed at the acquisition date are recorded at fair value. If the transaction is deemed to be an asset purchase, the cost accumulation and allocation model is used whereby the assets and liabilities are recorded based on the purchase price and allocated to the individual assets and liabilities based on relative fair values. The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed are based on various assumptions and valuation methodologies requiring considerable management judgment. The most significant variables in these valuations are discount rates and the number of years on which to base the cash flow projections, as well as other assumptions and estimates used to determine the cash inflows and outflows. Management determines discount rates based on the risk inherent in the acquired assets and related cash flows. The valuation of an acquired business is based on available information at the acquisition date and assumptions that are believed to be reasonable. However, a change in facts and circumstances as of the acquisition date can result in subsequent adjustments during the measurement period, but no later than one year from the acquisition date. Revenues Revenues from the sale of natural gas to NJNG customers are recognized in the period that gas is delivered and consumed by customers, including an estimate for unbilled revenue. NJNG records unbilled revenue for natural gas services. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for gas and the most current tariff rates. Clean Energy Ventures recognizes revenue when SRECs are transferred to counterparties. SRECs are physically delivered through the transfer of certificates as per contractual settlement schedules. Revenues for Energy Services are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur, as noted above. Energy Services also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues. Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. See Note 3. Revenue for further information. Gas Purchases NJNG’s tariff includes a component for BGSS, which is designed to allow it to recover the cost of natural gas through rates charged to its customers and is typically revised on an annual basis. As part of computing its BGSS rate, NJNG projects its cost of natural gas, net of supplier refunds, the impact of hedging activities and cost savings created by BGSS incentive programs. NJNG subsequently recovers or credits the difference, if any, of actual costs compared with those included in current rates. Any underrecoveries or overrecoveries are either credited to customers or deferred and, subject to BPU approval, reflected in the BGSS rates in subsequent years. Natural gas purchases at Energy Services are composed of gas costs to be paid upon completion of a variety of transactions, as well as realized gains and losses from settled derivative instruments and unrealized gains and losses on the change in fair value of derivative instruments that have not yet settled. Changes in the fair value of derivatives that economically hedge the forecasted purchases of natural gas are recognized in gas purchases as they occur. Demand Fees For the purpose of securing storage and pipeline capacity in support of their respective businesses, the Energy Services and Natural Gas Distribution segments enter into storage and pipeline capacity contracts, which require the payment of associated demand fees and charges that allow them access to a high priority of service in order to maintain the ability to access storage or pipeline capacity during a fixed time period, which generally ranges from one to 10 years. Many of these demand fees and charges are based on established tariff rates as established and regulated by FERC. These charges represent commitments to pay storage providers and pipeline companies for the priority right to transport and/or store natural gas utilizing their respective assets. The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30: (Millions) 2019 2018 2017 Energy Services $ 120.4 $ 153.0 $ 126.4 Natural Gas Distribution 119.1 92.5 80.2 Total $ 239.5 $ 245.5 $ 206.6 Energy Services expenses demand charges over the term of the service being provided. The Natural Gas Distribution segment’s costs associated with demand charges are included in its weighted average cost of gas. The demand charges are expensed based on NJNG’s BGSS sales and recovered as part of its gas commodity component of its BGSS tariff. Operations and Maintenance Expenses Operations and maintenance expenses include operations and maintenance salaries and benefits, materials and supplies, usage of vehicles, tools and equipment, payments to contractors, utility plant maintenance, customer service, professional fees and other outside services, insurance expense, accretion of cost of removal for future retirements of utility assets and other administrative expenses and are expensed as incurred. Stock-Based Compensation Stock-based compensation represents costs related to stock-based awards granted to employees and NJR Board of Directors members. NJR recognizes stock-based compensation based upon the estimated fair value of awards. The recognition period for these costs begins at either the applicable service inception date or grant date and continues throughout the requisite service period. The related compensation cost is recognized as O&M expense on the Consolidated Statements of Operations. See Note 10. Stock-Based Compensation for further information. Sales Tax Accounting As a result of the adoption of ASC 606, Revenue from Contracts with Customers , as of October 1, 2018, the Company excludes from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax on a net basis in operating revenues on the Consolidated Statements of Operations. Prior to October 1, 2018, sales tax was presented in both operating revenues and operating expenses on the Consolidated Statements of Operations. Income Taxes The Company computes income taxes using the asset and liability method, whereby deferred income taxes are generally determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. See Note 13. Income Taxes . In addition, the Company evaluates its tax positions to determine the appropriate accounting and recognition of future obligations associated with unrecognized tax benefits. The Company invests in property that qualifies for federal ITCs and utilizes the ITCs, as allowed, based on the cost and life of the assets. ITCs at NJNG are deferred and amortized as a reduction to the tax provision over the average lives of the related equipment in accordance with regulatory treatment. ITCs at the unregulated subsidiaries of NJR are recognized as a reduction to income tax expense when the property is placed in service. PTCs are recognized as reductions to current federal income tax expense as PTCs are generated through the production activities of the assets. Changes to the federal statutes related to ITCs and PTCs, which have the effect of reducing or eliminating the credits, could have a negative impact on earnings and cash flows. Investments in Equity Investees The Company accounts for its investments in Steckman Ridge and PennEast using the equity method of accounting where it is not the primary beneficiary, as defined under ASC 810, Consolidation, its respective ownership interests are 50 percent or less and/or it has significant influence over operating and management decisions. The Company’s share of earnings is recognized as equity in earnings of affiliates on the Consolidated Statements of Operations. Equity method investments are reviewed for impairment when changes in facts and circumstances indicate that the current fair value may be less than the asset’s carrying amount. If the Company determines the decline in the value of its equity method investment is other than temporary, an impairment charge is recorded in an amount equal to the excess of the carrying value of the asset over its fair value. Property Plant and Equipment Regulated property, plant and equipment is stated at original cost. Costs include direct labor, materials and third-party construction contractor costs, AFUDC and certain indirect costs related to equipment and employees engaged in construction. Nonregulated property, plant and equipment is stated at original cost. Costs include direct labor, materials and third-party construction contractor costs and certain indirect costs related to equipment and employees engaged in construction. Upon retirement, the cost of depreciable property, plus removal costs less salvage, is charged to accumulated depreciation with no gain or loss recorded. Depreciation is computed on a straight-line basis over the useful life of the assets for unregulated entities, and using rates based on the estimated average lives of the various classes of depreciable property for NJNG. The composite rate of depreciation used for NJNG was 2.25 percent of average depreciable property in fiscal 2019 , 2.29 percent in fiscal 2018 and 2.25 percent in fiscal 2017 . The Company recorded $91.7 million , $85.7 million and $81.8 million in depreciation expense during fiscal 2019 , 2018 and 2017 , respectively. The overall depreciation rate is 2.4 percent , as settled in the base rate case. Property, plant and equipment was comprised of the following as of September 30 : (Thousands) Property Classifications Estimated Useful Lives 2019 2018 Distribution facilities 38 to 74 years $ 2,414,603 $ 2,151,249 Transmission facilities 35 to 56 years 330,912 295,692 Storage facilities 34 to 47 years 79,916 79,470 Solar property 15 to 25 years 879,597 720,562 Midstream property 30 years 28,445 6,747 All other property 5 to 35 years 48,886 50,771 Total property, plant and equipment 3,782,359 3,304,491 Accumulated depreciation and amortization (741,193 ) (653,442 ) Property, plant and equipment, net $ 3,041,166 $ 2,651,049 Capitalized and Deferred Interest NJNG’s base rates include the ability to recover AFUDC on its construction work in progress. For all NJNG construction projects, an incremental cost of equity is recoverable during periods when NJNG’s short-term debt balances are lower than its construction work in progress. For more information on AFUDC treatment with respect to certain accelerated infrastructure projects, see Note 4. Regulation - Infrastructure Programs. Capitalized amounts associated with the debt and equity components of NJNG’s AFUDC are recorded in utility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component are recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations. Capitalized and deferred interest include the following for the fiscal years ended September 30: ($ in thousands) 2019 2018 2017 AFUDC: Debt $ 3,710 $ 1,979 $ 1,311 Equity 6,492 5,531 3,867 Total $ 10,202 $ 7,510 $ 5,178 Weighted average interest rate 6.35 % 5.94 % 6.90 % Pursuant to a BPU order, NJNG is permitted to recover carrying costs on uncollected balances related to SBC program costs, which include NJCEP, RAC and USF expenditures. See Note 4. Regulation . The SBC interest rate changes each September based on the August 31 seven -year constant maturity treasury rate plus 60 basis points . The rate was 3.30 percent , 3.41 percent and 2.55 percent for the fiscal years ended September 30, 2019 , 2018 and 2017 , respectively. Accordingly, other income included $760,000 , $411,000 and $78,000 in the fiscal years ended September 30, 2019 , 2018 and 2017 , respectively. Clean Energy Ventures capitalizes interest on the allocation of the costs of debt borrowed for the financing of solar investments. Capitalized amounts are included in nonutility plant and equipment on the Consolidated Balance Sheets. Cash and Cash Equivalents Cash and cash equivalents consist of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash of $1.4 million and $252,000 as of September 30, 2019 and 2018 , respectively, related to escrow balances for utility plant projects, which is recorded in other current and noncurrent assets on the Consolidated Balance Sheets. Loans Receivable NJNG currently provides loans, with terms ranging from 2 to 10 years, to customers that elect to purchase and install certain energy-efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at net present value on the Consolidated Balance Sheets. The Company recorded $12.4 million and $10.4 million in other current assets and $38.8 million and $39.5 million in other noncurrent assets as of September 30, 2019 and 2018 , respectively, on the Consolidated Balance Sheets, related to the loans. If NJNG determines a loan is impaired, the basis of the loan would be subject to regulatory review for recovery. As of September 30, 2019 and 2018 , an allowance for doubtful accounts for SAVEGREEN loans was not considered necessary. Regulatory Assets & Liabilities Under cost-based regulation, regulated utility enterprises generally are permitted to recover their operating expenses and earn a reasonable rate of return on their utility investment. Our Natural Gas Distribution segment maintains its accounts in accordance with the FERC Uniform System of Accounts as prescribed by the BPU and in accordance with the ASC 980, Regulated Operations . As a result of the impact of the ratemaking process and regulatory actions of the BPU, NJNG is required to recognize the economic effects of rate regulation. Accordingly, NJNG capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 4. Regulation for a more detailed description of NJNG’s regulatory assets and liabilities. Gas in Storage Gas in storage is reflected at average cost on the Consolidated Balance Sheets and represents natural gas and LNG that will be utilized in the ordinary course of business. The following table summarizes gas in storage, at average cost by company, as of September 30 : 2019 2018 ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf Energy Services $ 52,390 25.6 $ 90,166 34.1 Natural Gas Distribution 117,413 27.0 94,467 24.9 Total $ 169,803 52.6 $ 184,633 59.0 Derivative Instruments The Company accounts for its financial instruments, such as futures, options, foreign exchange contracts and interest rate contracts, as well as its physical commodity contracts related to the purchase and sale of natural gas at Energy Services, as derivatives, and therefore recognizes them at fair value on the Consolidated Balance Sheets. The Company’s unregulated subsidiaries record changes in the fair value of their financial commodity derivatives in gas purchases and changes in the fair value of their physical forward contracts in gas purchases or operating revenues, as appropriate, on the Consolidated Statements of Operations. Ineffective portions of the cash flow hedges are recognized immediately in earnings. The ASC 815, Derivatives and Hedging also provides for a NPNS scope exception for qualifying physical commodity contracts that are intended for purchases and sales during the normal course of business and for which physical delivery is probable. Effective January 1, 2016, the Company prospectively applies this normal scope exception on a case-by-case basis to physical commodity contracts at NJNG and forward SREC contracts at Clean Energy Ventures. When applied, it does not record changes in the fair value of these contracts until the contract settles and the related underlying natural gas or SREC is delivered. Gains and/or losses on NJNG’s derivatives used to economically hedge its regulated natural gas supply obligations, as well as its exposure to interest rate variability, are recoverable through its BGSS, a component of its tariff. Accordingly, the offset to the change in fair value of these derivatives is recorded as a regulatory asset or liability on the Consolidated Balance Sheets. See Note 5. Derivative Instruments for additional details regarding natural gas trading and hedging activities. Fair values of exchange-traded instruments, including futures and swaps, are based on unadjusted, quoted prices in active markets. The Company’s non-exchange-traded financial instruments, foreign currency derivatives, over-the-counter physical commodity contracts at Energy Services and interest rate contracts are valued using observable, quoted prices for similar or identical assets when available. In establishing the fair value of contracts for which a quoted basis price is not available at the measurement date, management utilizes available market data and pricing models to estimate fair values. Fair values are subject to change in the near term and reflect management’s best estimate based on a variety of factors. Estimating fair values of instruments that do not have quoted market prices requires management’s judgment in determining amounts that could reasonably be expected to be received from, or paid to, a third party in settlement of the instruments. These amounts could be materially different from amounts that might be realized in an actual sale transaction. Assets Held for Sale The Company classifies an asset as held for sale if there is a commitment to sell the asset, the asset is available for immediate sale, the sale is probable and the sale will be completed within one year. Assets classified as held for sale are measured at the lower of their carrying value or fair value less cost to sell. In March 2018, Clean Energy Ventures committed to a plan to sell its wind assets and expected that the sale would be completed within the next 12 months. Accordingly, the Company classified its wind assets and related liabilities as held for sale on the Consolidated Balance Sheets, which resulted in depreciation expense on wind assets no longer being recorded. 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, and on February 7, 2019 , Clean Energy Ventures finalized the sale of its remaining wind assets. See Note 17. Acquisitions and Dispositions for more details. The major classes of assets and liabilities included within the disposal group as held for sale are as follows: (Thousands) September 30, 2018 Assets reclassified as held for sale Assets Sold Other adjustments (1) September 30, 2019 Assets held for sale: Property, plant and equipment - wind equipment, at cost $ 224,356 $ — $ (224,356 ) $ — $ — Property, plant and equipment - accumulated depreciation, wind equipment (18,501 ) — 18,501 $ — — Prepaid and accrued taxes 789 1,747 (1,541 ) $ (995 ) — Other noncurrent assets 261 — (261 ) $ — — $ 206,905 $ 1,747 $ (207,657 ) $ (995 ) $ — Liabilities held for sale: Accounts payable and other (1) $ 186 $ — $ (186 ) $ — $ — Asset retirement obligation 3,996 — (3,996 ) — — $ 4,182 $ — $ (4,182 ) $ — $ — (1) Activity relates to amortization of prepaid and other current assets prior to the sale of the Company’s remaining wind assets in February 2019. Software Costs The Company capitalizes certain costs, such as software design and configuration, coding, testing and installation, that are incurred to purchase or create and implement computer software for internal use. Capitalized costs include external costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Maintenance costs are expensed as incurred. Upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Amortization is recorded on the straight-line basis over the estimated useful lives. The Company capitalized $6.5 million in other noncurrent assets on the Consolidated Balance Sheets and recorded $9.1 million in O&M on the Consolidated Statements of Operations for the fiscal year ended September 30, 2019 , related to information technology replacement and enhancement projects. Investments in Equity Securities Investments in equity securities were carried at fair value on the Consolidated Balance Sheets. For the fiscal year ended September 30, 2018, total unrealized gains and losses associated with equity securities were included as a part of accumulated other comprehensive income, a component of common stock equity, and reclassifications of realized gains or losses out of other comprehensive income into earnings were recorded in other income, net on the Consolidated Statements of Operations, based on average cost. On October 1, 2018, the Company adopted ASU No. 2016-01, an amendment to ASC 825, Financial Instruments . As a result, both realized and unrealized gains and losses were recorded in other income, net on the Consolidated Statements of Operations, based on average cost. As of September 30, 2018 , the Company's investments in equity securities were comprised of an investment in DM Common Units, which had a fair value of $32.9 million . On January 28, 2019 , Dominion and DM finalized an agreement and plan of merger and outstanding DM Common Units held immediately before the closing of the merger were converted into 0.2492 shares of Dominion common stock. This resulted in the conversion of the Company's 1.84 million DM Common Units into approximately 458,000 Dominion shares. On March 6, 2019 , the Company sold its investment in Dominion and received proceeds of approximately $34.5 million related to the sale and recorded total realized gains of $1.6 million in other income, net on the Consolidated Statements of Operations. Intangible Assets Finite-lived intangible assets are stated at cost less accumulated amortization. The Company amortizes intangible assets based upon the pattern in which the economic benefits are consumed over the life of the asset unless a pattern cannot be reliably determined, in which case the Company uses a straight-line amortization method. As of September 30, 2019 , intangible assets consist of acquired wholesale natural gas energy contracts and certain internal-use software costs totaling $14.6 million . The wholesale natural gas contracts are being amortized based upon expected cash flows over the respective terms of the agreements. The estimated future amortization expense for the next five years as of September 30, is as follows: (Thousands) 2020 $ 5,011 2021 $ 4,691 2022 $ 2,561 2023 $ 2,271 2024 and thereafter $ 77 Long-lived Assets The Company reviews the recoverability of long-lived assets and finite-lived intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable, such as significant adverse changes in regulation, business climate or market conditions, including prolonged periods of adverse commodity and capacity prices. If there are changes indicating that the carrying value of such assets may not be recoverable, an undiscounted cash flows test is performed. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recognized by reducing the recorded value of the asset to its fair value. Factors that the Company analyzes in determining whether an impairment in its long-lived assets exists include: a significant decrease in the market price of a long-lived asset; a significant adverse change in the extent in which a long-lived asset is being used in its physical condition; legal proceedings or factors; significant business climate changes; accumulations of costs in significant excess of the amounts expected; a current-period operating or cash flow loss combined with a history of such events; and current expectations that more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its estimated useful life. During fiscal years 2019 and 2018 , there were no events or circumstances that indicated that the carrying value of long-lived assets or finite-lived intangibles were not recoverable. Debt Issuance Costs Debt issuance costs are capitalized and amortized as interest expense on a basis which approximates the effective interest method over the term of the related debt. Debt issuance costs are presented as a direct deduction from the carrying amount of the related debt. See Note 9. Debt for the total unamortized debt issuance costs that are recorded as a reduction to long-term debt on the Consolidated Balance Sheets. Sale-Leasebacks NJNG utilizes sale-leaseback arrangements as a financing mechanism to fund certain of its capital expenditures related to natural gas meters, whereby the physical asset is sold concurrent with an agreement to lease the asset back. These agreements include options to renew the lease at the end of the term or repurchase the asset. Proceeds from sale-leaseback transactions are accounted for as financings and are included in long-term debt on the Consolidated Balance Sheets. During fiscal 2019 and 2018 , NJNG received $9.9 million and $7.8 million , respectively, in connection with the sale-leaseback of its natural gas meters with terms ranging from seven to 11 years. In addition, for certain of its commercial solar energy projects, the Company enters into lease agreements that provide for the sale of commercial solar energy assets to third parties and the concurrent leaseback of the assets. For sale-leaseback transactions where the Company has concluded that the terms of the arrangement create a continuing involvement in the asset and the asset is considered integral equipment, the Company uses the financing method to account for the transaction. Under the financing method, the Company recognizes the proceeds received from the lessor that constitute a payment to acquire the solar energy asset as a financing arrangement, which is recorded as a component of debt on the Consolidated Balance Sheets. Clean Energy Ventures received $71.5 million and $32.9 million in proceeds related to the sale of commercial solar assets during fiscal 2018 and 2017 . Clean Energy Ventures simultaneously entered into agreements to lease the assets back over six - to 15 -year terms. The Company continues to operate the solar assets and is responsible for related expenses and entitled to retain the revenue generated from SRECs and energy sales. The ITCs and other tax benefits associated with these solar projects have been transferred to the buyer; however, the lease payments are structured so that Clean Energy Ventures is compensated for the transfer of the related tax incentives. Accordingly, Clean Energy Ventures recognizes the equivalent value of the ITC in other income on the Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease. Clean Energy Ventures did not enter into sale-leaseback arrangements during fiscal 2019 and therefore recognized the full ITC in income tax (benefit) provision on the Consolidated Statements of Operations when the assets were placed in service. Environmental Contingencies Loss contingencies are recorded as liabilities when it is probable a liability has been incurred and the amount of the loss is reasonably estimable in accordance with accounting standards for contingencies. Estimating probable losses requires an analysis of uncertainties that often depend upon judgments about potential actions by third parties. Accruals for loss contingencies are recorded based on an analysis of potential results. With respect to environmental liabilities and related costs, NJNG periodically, and at least annually, performs an environmental review of the MGP site |
REVENUE
REVENUE | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 3. REVENUE Revenue is recognized when a performance obligation is satisfied by transferring control of a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer using the output method of progress. The Company elected to apply the invoice practical expedient for recognizing revenue, whereby the amounts invoiced to customers represent the value to the customer and the Company’s performance completion as of the invoice date. Therefore we do not disclose related unsatisfied performance obligations. The Company also elected the practical expedient to exclude from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax net in operating revenues on the Consolidated Statements of Operations. Below is a listing of performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms and the nature of the goods and services being transferred, by reporting segment and other business operations: Revenue Recognized Over Time: Segment Performance Obligation Description Natural Gas Distribution Natural gas utility sales NJNG's performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU. Revenues from the sale of natural gas are recognized in the period that gas is delivered and consumed by customers, including an estimate for quantities consumed but not billed during the period. Payment is due each month for the previous month's deliveries. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the billing period. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects and the most current tariff rates. NJNG is entitled to be compensated for performance completed until service is terminated. Customers may elect to purchase the natural gas commodity from NJNG or may contract separately to purchase natural gas directly from third-party suppliers. As NJNG is acting as an agent on behalf of the third-party supplier, revenue is recorded for the delivery of natural gas to the customer. Clean Energy Ventures Commercial solar and wind electricity Clean Energy Ventures operates wholly-owned solar projects that recognize revenue as electricity is generated and transferred to the customer. The performance obligation is to provide electricity to the customer in accordance with contract terms or the interconnection agreement and is satisfied upon transfer of electricity generated. All wind assets were sold as of February 7, 2019. Revenue is recognized as invoiced and the payment is due each month for the previous month's services. Clean Energy Ventures Residential solar electricity Clean Energy Ventures provides access to residential rooftop and ground-mount solar equipment to customers who then pay the Company a monthly fee. The performance obligation is to provide electricity to the customer based on generation from the underlying residential solar asset and is satisfied upon transfer of electricity generated. Revenue is derived from the contract terms and is recognized as invoiced, with the payment due each month for the previous month's services. Energy Services Wholesale natural gas services The performance obligation of Energy Services is to provide the customer transportation, storage and asset management services on an as-needed basis. Energy Services generates revenue through management fees, demand charges, reservation fees and transportation charges centered around the buying and selling of the natural gas commodity, representing one series of distinct performance obligations. Revenue is recognized based upon the underlying natural gas quantities physically delivered and the customer obtaining control. Energy Services invoices customers on a monthly basis in line with the terms of the contract and based on the services provided. Payment is due each month for the previous month's invoiced services. Home Services and Other Service contracts Home Services enters into service contracts with homeowners to provide maintenance and replacement services of applicable heating, cooling or ventilation equipment. All services provided relate to a distinct performance obligation which is to provide services for the specific equipment over the term of the contract. Revenue is recognized on a straight-line basis over the term of the contract and payment is due upon receipt of the invoice. Revenue Recognized at a Point in Time: Home Services and Other Installations Home Services installs appliances, including but not limited to, furnaces, air conditioning units, boilers and generators, for customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. The transaction price for each installation differs accordingly. Revenue is recognition at a point in time upon completion of the installation, which is when the customer is billed. Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the fiscal year ended September 30, 2019 is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Natural gas utility sales $ 680,151 — — — $ 680,151 Wholesale natural gas services — — 31,459 — 31,459 Service contracts — — — 31,499 31,499 Installations and maintenance — — — 19,403 19,403 Electricity sales — 22,121 — — 22,121 Eliminations (1) — — — (2,302 ) (2,302 ) Revenues from contracts with customers 680,151 22,121 31,459 48,600 782,331 Alternative revenue programs 10,364 — — — 10,364 Derivative Instruments 20,278 75,978 1,711,332 — 1,807,588 Eliminations (1) — — (8,238 ) — (8,238 ) Revenues out of scope 30,642 75,978 1,703,094 — 1,809,714 Total operating revenues $ 710,793 98,099 1,734,553 48,600 $ 2,592,045 (1) Consists of transactions between subsidiaries that are eliminated in consolidation. Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the fiscal year ended September 30, 2019 is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Residential $ 440,787 9,003 — 47,655 $ 497,445 Commercial and industrial 171,357 13,118 31,459 945 216,879 Firm transportation 61,370 — — — 61,370 Interruptible and off-tariff 6,637 — — — 6,637 Revenues out of scope 30,642 75,978 1,703,094 — 1,809,714 Total operating revenues $ 710,793 98,099 1,734,553 48,600 $ 2,592,045 Customer Accounts Receivable/Credit Balances and Deposits The timing of revenue recognition, customer billings and cash collections resulting in accounts receivables, billed and unbilled, and customers’ credit balances and deposits on the Consolidated Balance Sheets during the fiscal year ended September 30, 2019 are as follows: Customer Accounts Receivable Customers' Credit (Thousands) Billed Unbilled Balances and Deposits Balance as of October 1, 2018 $ 205,490 $ 7,199 $ 27,325 Decrease (66,227 ) (689 ) (209 ) Balance as of September 30, 2019 $ 139,263 $ 6,510 $ 27,116 The following table provides information about receivables and revenue earned on contracts in progress in excess of billings, which are included within accounts receivable, billed and unbilled, and customers’ credit balances and deposits, respectively, on the Consolidated Balance Sheets as of September 30, 2019 : (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Customer accounts receivable Billed $ 36,302 3,233 97,301 2,427 $ 139,263 Unbilled 6,510 — — — 6,510 Customers' credit balances and deposits (27,114 ) — — (2 ) (27,116 ) Total $ 15,698 3,233 97,301 2,425 $ 118,657 |
REGULATION
REGULATION | 12 Months Ended |
Sep. 30, 2019 | |
Regulated Operations [Abstract] | |
REGULATION | 4. REGULATION The EDECA is the legal framework for New Jersey’s public utility and wholesale energy landscape. NJNG is required, pursuant to a written order by the BPU under EDECA, to open its residential markets to competition from third-party natural gas suppliers. Customers can choose the supplier of their natural gas commodity in NJNG’s service territory. As required by EDECA, NJNG’s rates are segregated into two primary components: the commodity portion, which represents the wholesale cost of natural gas, including the cost for interstate pipeline capacity to transport the gas to NJNG’s service territory; and the delivery portion, which represents the transportation of the commodity portion through NJNG’s gas distribution system to the end-use customer. NJNG does not earn utility gross margin on the commodity portion of its natural gas sales. NJNG earns utility gross margin through the delivery of natural gas to its customers, regardless of whether it or a third-party supplier provides the wholesale natural gas commodity. Under EDECA, the BPU is required to audit the state’s energy utilities every two years. The primary purpose of the audit is to ensure that utilities and their affiliates offering unregulated retail services do not have an unfair competitive advantage over nonaffiliated providers of similar retail services. A combined competitive services and management audit of NJNG commenced in August 2013 . A draft management audit report was accepted by the BPU on July 23, 2014, for public comment. To date, NJNG has implemented all audit recommendations with the approval of BPU staff and is waiting for final BPU approval. NJNG is subject to cost-based regulation; therefore, it is permitted to recover authorized operating expenses and earn a reasonable return on its utility capital investments based on the BPU’s approval. The impact of the ratemaking process and decisions authorized by the BPU allows NJNG to capitalize or defer certain costs that are expected to be recovered from its customers as regulatory assets, and to recognize certain obligations representing amounts that are probable future expenditures as regulatory liabilities in accordance with accounting guidance applicable to regulated operations. NJNG’s recovery of costs is facilitated through its base rates, BGSS and other regulatory tariff riders. NJNG is required to make an annual filing to the BPU by June 1 of each year for review of its BGSS, CIP and other programs and related rates. Annual rate changes are requested to be effective at the beginning of the following fiscal year. The current base rates include a weighted average cost of capital of 6.9 percent and a return on common equity of 9.75 percent . In addition, NJNG is permitted to request approval of certain rate or program changes. All rate and program changes are subject to proper notification and BPU review and approval. Regulatory assets and liabilities included on the Consolidated Balance Sheets as of September 30, are composed of the following: (Thousands) 2019 2018 Regulatory assets-current New Jersey Clean Energy Program $ 15,468 $ 14,052 Underrecovered gas costs 9,506 4,137 Derivatives at fair value, net 4,526 108 Conservation Incentive Program 3,371 — Total current regulatory assets $ 32,871 $ 18,297 Regulatory assets-noncurrent Environmental remediation costs: Expended, net of recoveries $ 38,351 $ 33,017 Liability for future expenditures 131,080 130,800 Deferred income taxes 19,631 17,225 Derivatives at fair value, net 486 — SAVEGREEN 10,201 8,636 Postemployment and other benefit costs 212,461 136,716 Deferred storm damage costs 8,687 10,858 Cost of removal 65,660 22,339 Other noncurrent regulatory assets 10,080 9,001 Total noncurrent regulatory assets $ 496,637 $ 368,592 Regulatory liability-current Conservation Incentive Program $ — $ 6,994 Derivatives at fair value, net — 1,191 Total current regulatory liabilities $ — $ 8,185 Regulatory liabilities-noncurrent Tax Act impact (1) $ 200,417 $ 205,410 New Jersey Clean Energy Program 197 1,902 Derivatives at fair value, net — 123 Other noncurrent regulatory liabilities 1,821 1,704 Total noncurrent regulatory liabilities $ 202,435 $ 209,139 (1) Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. Recovery of regulatory assets is subject to BPU approval, and therefore, if there are any changes in regulatory positions that indicate recovery is not probable, the related cost would be charged to income in the period of such determination. On March 29, 2019 , NJNG filed a base rate case with the BPU requesting a natural gas revenue increase of $128.2 million , including a change in the Company’s overall rate of return on rate base to 7.87 percent . NJNG is also seeking permission to request recovery for SRL in a future filing, upon completion of the project. On July 2, 2019, the Company filed an update with actual information through May 31, 2019, which reflected a revenue increase of $129.8 million . On September 30, 2019 , the Company filed a second update with actual information through August 31, 2019 which reflected a revenue increase of $134.3 million . On November 13, 2019 , the BPU issued an order adopting a stipulation of settlement approving a $62.2 million increase to base rates. This increase is predicated on a overall rate of return on rate base of 6.95 percent . These rates will be effective on November 15, 2019 . New Jersey Clean Energy Program The NJCEP is a statewide program that encourages energy efficiency and renewable energy. Funding amounts are determined by the BPU’s Office of Clean Energy and all New Jersey utilities are required to share in the annual funding obligation. The current NJCEP program is for the State of New Jersey’s fiscal year ending June 2020 . NJNG recovers the costs associated with its portion of the NJCEP obligation through its NJCEP rider, with interest. Over and Underrecovered Gas Costs NJNG recovers its cost of gas through the BGSS rate component of its customers’ bills. NJNG’s cost of gas includes the purchased cost of the natural gas commodity, fees paid to pipelines and storage facilities, adjustments as a result of BGSS incentive programs and hedging transactions. Overrecovered gas costs represent a regulatory liability that generally occurs when NJNG’s BGSS rates are higher than actual costs and requests approval to be returned to customers including interest, when applicable, in accordance with NJNG’s approved BGSS tariff. Conversely, underrecovered gas costs generally occur during periods when NJNG’s BGSS rates are lower than actual costs, in which case NJNG records a regulatory asset and requests amounts to be recovered from customers in the future. Derivatives Derivatives are utilized by NJNG to manage the price risk associated with its natural gas purchasing activities and to participate in certain BGSS incentive programs. The gains and losses associated with NJNG’s derivatives are recoverable through its BGSS, as noted above, without interest. See Note 5. Derivative Instruments . Conservation Incentive Program The CIP permits NJNG to recover utility gross margin variations related to customer usage resulting from customer conservation efforts and mitigates the impact of weather on its margin. Such utility gross margin variations are recovered in the year following the end of the CIP usage year, without interest, and are subject to additional conditions, including an earnings test, a revenue test and an evaluation of BGSS-related savings. This program has no expiration date. Environmental Remediation Costs NJNG is responsible for the cleanup of certain former gas manufacturing facilities. Actual expenditures are recovered from customers, with interest, over seven -year rolling periods, through a RAC rate rider. Recovery for NJNG’s estimated future liability will be requested and/or recovered when actual expenditures are incurred. See Note 14. Commitments and Contingent Liabilities . Deferred Income Taxes Upon adoption of a 1993 provision of ASC 740, Income Taxes , NJNG recognized a transition adjustment and corresponding regulatory asset representing the difference between NJNG’s existing deferred tax amounts compared with the deferred tax amounts calculated in accordance with the change in method prescribed by ASC 740. NJNG recovers the regulatory asset associated with these tax impacts through future base rates, without interest. SAVEGREEN NJNG administers certain programs that supplement the state’s NJCEP and that allow NJNG to promote clean energy to its residential and commercial customers, as described further below. NJNG will recover related expenditures and a weighted average cost of capital on the unamortized balance through a tariff rider, without interest, as approved by the BPU, over a two - to 10 -year period depending upon the specific program incentive. Postemployment and Other Benefit Costs Postemployment and Other Benefit Costs represents NJNG’s underfunded postemployment benefit obligations, as well as a fiscal 2010 tax charge resulting from a change in the deductibility of federal subsidies associated with Medicare Part D, both of which are deferred as regulatory assets and are recoverable, without interest, in base rates. The BPU approved the recovery of the tax charge through NJNG’s base rates effective October 2016 over a seven -year amortization period. See Note 11. Employee Benefit Plans . Deferred Storm Damage Costs Portions of NJNG’s distribution system incurred significant damage as a result of Superstorm Sandy in October 2012. NJNG deferred the uninsured incremental O&M costs associated with its restoration efforts, which were approved for recovery by the BPU through NJNG’s base rates, without interest, effective October 2016 over a seven -year amortization period. Cost of Removal NJNG accrues and collects for cost of removal in base rates on its utility property, without interest. These costs are recorded in accumulated depreciation for regulatory reporting purposes, and actual costs of removal, without interest, will be recovered in subsequent rates, pursuant to the BPU order. Consistent with GAAP, amounts recorded within accumulated depreciation for regulatory accounting purposes are reclassified out of accumulated depreciation to either a regulatory asset or a regulatory liability depending on whether actual cost of removal is still subject to collection or amounts overcollected will be refunded back to customers. NJNG’s prior regulatory liability represented customer collections in excess of actual expenditures, which the Company returned to customers as a reduction to depreciation expense. Other Regulatory Assets Other regulatory assets consist primarily of deferred costs associated with certain components of NJNG’s SBC, as discussed further in the regulatory proceedings section, and NJNG’s compliance with federal- and state-mandated PIM provisions. NJNG’s related costs to maintain the operational integrity of its distribution and transmission main are recoverable, without interest, subject to BPU review and approval. As of September 30, 2019 , NJNG recorded $2.5 million of PIM in other regulatory assets, which is being recovered through base rates over a seven -year amortization period effective October 2016 . The following is a description of certain regulatory proceedings during fiscal 2018 and 2019 : BGSS and CIP BGSS rates are normally revised on an annual basis. In addition, to manage the fluctuations in wholesale natural gas costs, NJNG has the ability to make two interim filings during each fiscal year to increase residential and small commercial customer BGSS rates on a self-implementing and provisional basis. NJNG is also permitted to refund or credit back a portion of the commodity costs to customers at any time given five days ’ notice when the natural gas commodity costs decrease in comparison to amounts projected or to amounts previously collected from customers. Concurrent with the annual BGSS filing, NJNG files for an annual review of its CIP. NJNG’s annual BGSS and CIP filings are summarized as follows: • 2018 BGSS/CIP filing — In April 2019 , the BPU approved NJNG’s annual petition on a final basis to maintain its BGSS rate for residential and small commercial customers and increase its balancing charge rate, resulting in a $10.3 million increase to the annual revenues credited to BGSS, as well as changes to the CIP rates, which will result in a $30.9 million annual recovery decrease effective October 2018 . • On December 28, 2018 , NJNG notified the BPU that it will increase the BGSS rate, effective February 1, 2019 , resulting in an estimated $10.9 million increase to the revenues credited to BGSS from February through September 30, 2019 . • 2019 BGSS/CIP filing — On September 11, 2019 , the BPU provisionally approved NJNG’s annual petition to modify its BGSS, balancing charge and CIP rates. The rate changes will result in a $17.6 million decrease to the annual revenues credited to BGSS and a $15.6 million annual increase related to its balancing charge, as well as changes to CIP rates, which will result in a $10.6 million annual recovery increase, effective October 1, 2019 . BGSS Incentive Programs NJNG is eligible to receive financial incentives for reducing BGSS costs through a series of utility gross margin-sharing programs that include off-system sales, capacity release and storage incentive programs. The Company is permitted to annually propose a process to evaluate and discuss alternative incentive programs, should performance of the existing incentives or market conditions warrant re-evaluation. Energy Efficiency Programs SAVEGREEN conducts home energy audits and provides various grants, incentives and financing alternatives, which are designed to encourage the installation of high efficiency heating and cooling equipment and other upgrades to promote energy efficiency to its residential and commercial customers while stimulating state and local economies through the creation of jobs. Depending on the specific initiative or approval, NJNG recovers costs associated with the programs over a three - to 10 -year period through a tariff rider mechanism. As of September 30, 2019 , the BPU approved total SAVEGREEN investments of approximately $354.3 million , including $135 million that was approved in September 2018 , for a continuation of existing EE programs and the implementation of new programs through December 2021 . Since inception, $169.1 million in grants, rebates and loans have been provided to customers. SAVEGREEN investments and costs are filed with the BPU on an annual basis. NJNG’s annual EE filings are summarized as follows: • 2018 EE filing — On December 18, 2018 , the BPU approved a decrease in NJNG's EE recovery rate reflecting actual costs incurred through September 30, 2018 , which resulted in an annual recovery of approximately $8.8 million , effective January 1, 2019 . • 2019 EE filing — On October 25, 2019 , the BPU approved an increase in NJNG's EE recovery rate, which will result in an annual recovery of approximately $11.3 million , effective November 1, 2019 . Societal Benefits Charge The SBC is comprised of three primary riders that allow NJNG to recover costs associated with USF, which is a permanent statewide program for all natural gas and electric utilities for the benefit of income-eligible customers, MGP remediation and the NJCEP. NJNG has submitted the following filings to the BPU, which include a report of program expenditures incurred each program year: • 2018 SBC filing — In September 2018 , the BPU approved NJNG’s annual USF compliance filing to increase the statewide USF rate, which resulted in a $1 million annual increase, effective October 1, 2018 . In March 2019 , the BPU approved NJNG’s annual SBC application requesting recovery of remediation expenses incurred through June 30, 2018 , an increase in the RAC of approximately $1.4 million annually, and an increase to the NJCEP factor, which resulted in an annual increase of approximately $1.9 million , effective April 1, 2019 . • 2019 SBC filing — On June 24, 2019 , NJNG filed its annual USF compliance filing proposing an increase to the statewide USF rate, which will result in the annual recovery increasing by $1.2 million , effective October 1, 2019 . On September 27, 2019 , NJNG filed its annual SBC application requesting to recover remediation expenses including an increase in the RAC, of approximately $1.4 million annually and an increase to the NJCEP factor, which will result in an annual increase of approximately $3.3 million , to be effective April 1, 2020 . Infrastructure Programs NJNG has significant annual capital expenditures associated with the management of its natural gas distribution and transmission system, including new utility plant for customer growth and its associated PIM and infrastructure programs. NJNG continues to implement BPU-approved infrastructure projects that are designed to enhance the reliability of NJNG’s gas distribution system, including SAFE and NJ RISE. SAFE/NJ RISE The SAFE program replaces portions of NJNG’s gas distribution unprotected steel, cast iron infrastructure and associated services to improve the safety and reliability of the gas distribution system. SAFE I was approved to invest up to $130 million , exclusive of AFUDC, over a four -year period. SAFE II was approved to invest up to $200 million , excluding AFUDC, over a five -year period. NJNG will recover approximately $157.5 million through annual rate filings, with the remainder recovered through subsequent rate cases. As a condition of approval of the program, NJNG was required to file a base rate case no later than November 2019 and satisfied this requirement with its March 29, 2019 base rate case filing. NJ RISE consists of six capital investment projects estimated to cost $102.5 million over a five -year period, excluding AFUDC, for gas distribution storm-hardening and mitigation projects, along with incremental depreciation expense. NJ RISE includes a weighted average cost of capital that ranges from 6.74 percent to 6.9 percent and a return on equity of 9.75 percent . Requests for recovery of future NJ RISE capital costs will occur in conjunction with SAFE II. On September 17, 2018 , the BPU approved NJNG’s petition requesting a base rate increase of $6.8 million annually for the recovery of SAFE II and NJ RISE capital investment costs related to the 12 months ending June 30, 2018 , effective October 1, 2018 . On September 27, 2019 , the BPU approved NJNG’s annual petition requesting a base rate increase of $7.8 million , effective October 1, 2019 . Southern Reliability Link The SRL is an approximately 30-mile, 30-inch transmission main designed to support improved system reliability and integrity in the southern portion of NJNG’s service territory. All approvals required for the completion of the project have been received and construction began in December 2018. Infrastructure Investment Program On February 28, 2019 , NJNG filed a petition with the BPU seeking authority to implement a five-year IIP. The IIP consists of two components, transmission and distribution investments and information technology replacement and enhancements. The total investment for the IIP is approximately $507 million . Upon approval from the BPU, investments will be recovered through annual filings to adjust base rates. 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. 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. 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 of those deferred income taxes. These amounts were recorded as a regulatory liability on the Consolidated Balance Sheets. 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 and interest at the Company’s short-term debt rate as specified in the Company’s last base rate case. 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 approved final rates and customer refunds of the $31 million . These credits were returned to customer accounts in June 2018 . As of September 30, 2019 , the regulatory liability included excess deferred income taxes of $200.4 million , which requires amortization over the remaining life of the utility plant consistent with IRS normalization principles. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | 5. 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 and 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 Consolidated Balance Sheets. For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the Company’s derivative instruments, see Note 6. 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 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 rates 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 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. Energy Services 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. 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 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 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 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 . Clean Energy Ventures The Company elects NPNS accounting treatment on PPA contracts that Clean Energy Ventures enters into that meet the definition of a derivative and accounts for the contract on an accrual basis. Accordingly, electricity sales are recognized in revenues throughout the term of the PPA as electricity is delivered. NPNS is a contract-by-contract election and where it makes sense to do so, the Company can and may elect certain contracts to be normal. Home Services and Other On January 26, 2018 , NJR entered into a variable-for-fixed interest rate swap on its $100 million variable rate term loan, which fixed the variable rate at 2.84 percent . The swap terminated on August 16, 2019 , which coincided with the maturity of the debt. The change in the fair value and the settlement of the interest rate swap was recorded as a component of interest expense on the Consolidated Statements of Operations. Fair Value of Derivatives The following table reflects the fair value of the Company’s derivative assets and liabilities recognized on the Consolidated Balance Sheets as of September 30 : Fair Value 2019 2018 (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 $ 67 $ 245 $ 85 $ 192 Financial commodity contracts Derivatives - current 382 570 94 — Energy Services: Physical commodity contracts Derivatives - current 6,847 27,540 7,667 18,158 Derivatives - noncurrent 1,710 12,641 3,930 11,316 Financial commodity contracts Derivatives - current 17,806 29,057 19,169 28,176 Derivatives - noncurrent 5,716 6,105 6,630 11,548 Foreign currency contracts Derivatives - current 1 211 — 126 Derivatives - noncurrent — 75 — 118 Home Services and Other: Interest rate contracts Derivatives - current — — 381 — Total fair value of derivatives $ 32,529 $ 76,444 $ 37,956 $ 69,634 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 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 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 September 30, 2019: Derivative assets: Energy Services Physical commodity contracts $ 8,557 $ (2,906 ) $ (200 ) $ 5,451 Financial commodity contracts 23,522 (19,646 ) — 3,876 Foreign currency contracts 1 (1 ) — — Total Energy Services $ 32,080 $ (22,553 ) $ (200 ) $ 9,327 Natural Gas Distribution Physical commodity contracts $ 67 $ (9 ) $ — $ 58 Financial commodity contracts 382 (382 ) — — Total Natural Gas Distribution $ 449 $ (391 ) $ — $ 58 Derivative liabilities: Energy Services Physical commodity contracts $ 40,181 $ (2,906 ) $ — $ 37,275 Financial commodity contracts 35,162 (19,646 ) (15,516 ) — Foreign currency contracts 286 (1 ) — 285 Total Energy Services $ 75,629 $ (22,553 ) $ (15,516 ) $ 37,560 Natural Gas Distribution Physical commodity contracts $ 245 $ (9 ) $ — $ 236 Financial commodity contracts 570 (382 ) (188 ) — Total Natural Gas Distribution $ 815 $ (391 ) $ (188 ) $ 236 As of September 30, 2018: Derivative assets: Energy Services Physical commodity contracts $ 11,597 $ (3,944 ) $ (200 ) $ 7,453 Financial commodity contracts 25,799 (18,775 ) — 7,024 Total Energy Services $ 37,396 $ (22,719 ) $ (200 ) $ 14,477 Natural Gas Distribution Physical commodity contracts $ 85 $ (3 ) $ — $ 82 Financial commodity contracts 94 — (94 ) — Total Natural Gas Distribution $ 179 $ (3 ) $ (94 ) $ 82 Home Services and Other Interest rate contracts $ 381 $ — $ — $ 381 Total Home Services and Other $ 381 $ — $ — $ 381 Derivative liabilities: Energy Services Physical commodity contracts $ 29,474 $ (3,944 ) $ — $ 25,530 Financial commodity contracts 39,724 (18,775 ) (20,949 ) — Foreign currency contracts 244 — — 244 Total Energy Services $ 69,442 $ (22,719 ) $ (20,949 ) $ 25,774 Natural Gas Distribution Physical commodity contracts $ 192 $ (3 ) $ — $ 189 Total Natural Gas Distribution $ 192 $ (3 ) $ — $ 189 (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 (losses) on the financial transactions that are economic hedges of the cost of the purchased gas are recognized prior to the gains (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 (losses) on the financial derivative instruments and gains (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 Consolidated Statements of Operations as of September 30 : (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized in income on derivatives Derivatives not designated as hedging instruments: 2019 2018 2017 Energy Services: Physical commodity contracts Operating revenues $ (5,732 ) $ (9,311 ) $ 8,912 Physical commodity contracts Gas purchases (521 ) (197 ) (27,461 ) Financial commodity contracts Gas purchases (643 ) (24,622 ) 26,563 Foreign currency contracts Gas purchases (283 ) (379 ) 41 Home Services and Other: Interest rate contracts Interest expense (233 ) 334 — Total unrealized and realized (losses) gains $ (7,412 ) $ (34,175 ) $ 8,055 NJNG’s derivative contracts are part of the Company’s risk management activities that relate to its natural gas purchases, BGSS incentive programs and debt financing. These transactions are entered into pursuant to regulatory approval. At settlement, the resulting gains and/or losses are payable to or recoverable from utility customers and are deferred in regulatory assets or liabilities resulting in no impact to earnings. The following table reflects the gains (losses) associated with NJNG’s derivative instruments as of September 30 : (Thousands) 2019 2018 2017 Natural Gas Distribution: Physical commodity contracts $ 5,926 $ 1,232 $ (12,303 ) Financial commodity contracts (7,700 ) 1,844 5,595 Interest rate contracts — 8,467 14,606 Total unrealized and realized (losses) gains $ (1,774 ) $ 11,543 $ 7,898 NJNG and Energy Services had the following outstanding long (short) derivatives as of September 30 : Volume (Bcf) 2019 2018 Natural Gas Distribution Futures 27.6 27.9 Physical 11.6 23.1 Energy Services Futures (29.6 ) (7.0 ) Physical 44.5 51.2 Not included in the previous table are Energy Services’ net notional amount of foreign currency transactions of approximately $6.2 million , the Company’s interest rate swap, as previously discussed, and 796,000 SRECs at Energy Services that were open as of September 30, 2019 . 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 as of September 30 , by segment, are as follows: (Thousands) Balance Sheet Location 2019 2018 Natural Gas Distribution Restricted broker margin accounts $ 1,982 $ 2,038 Energy Services Restricted broker margin accounts $ 71,741 $ 51,681 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., fails to deliver or pay for natural gas, SRECs, electricity or RECs), then the Company could sustain a loss. The Company 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 the Company’s election not to extend credit or because exposure exceeds defined thresholds. Most of the Company’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 Fitch or Moody’s. In these cases, the counterparty’s or guarantor’s financial statements are reviewed, and similar methodologies and ratios used by Fitch 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 September 30, 2019 . 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 $ 141,930 Noninvestment grade 17,997 Internally-rated investment grade 27,948 Internally-rated noninvestment grade 29,324 Total $ 217,199 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. Specifically, most, but not all, of these additional payments will be triggered if NJNG’s debt is downgraded by the major credit agencies, regardless of investment grade status. In addition, some of these agreements include threshold amounts that would result in additional collateral payments if the values of derivative liabilities were to exceed the maximum values provided for in relevant counterparty agreements. Other provisions include payment features that are not specifically linked to ratings, but are based on certain financial metrics. Collateral amounts associated with any of these conditions are determined based on a sliding scale and are contingent upon the degree to which the Company’s credit rating and/or financial metrics deteriorate, and the extent to which liability amounts exceed applicable threshold limits. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position on September 30, 2019 and 2018 , is approximately $186,000 and $124,000 , respectively, for which the Company had not posted collateral. If all thresholds related to the credit-risk-related contingent features underlying these agreements had been invoked on September 30, 2019 , the Company would be required to post no additional amounts. If all thresholds related to the credit-risk-related contingent features underlying these agreements had been invoked on September 30, 2018 , the Company would have been required to post an additional $33,000 to its counterparties. These amounts differ from the respective net derivative liabilities reflected on the Consolidated Balance Sheets because the agreements also include clauses, commonly known as “Rights of Offset,” that would permit the Company to offset its derivative assets against its derivative liabilities for determining additional collateral to be posted, as previously discussed. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | 6. 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. As of September 30, 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 (1) : (Thousands) 2019 2018 NJNG Carrying value $ 892,845 $ 672,045 Fair market value $ 984,129 $ 669,162 NJR Carrying value $ 550,000 $ 500,000 Fair market value $ 584,735 $ 488,889 (1) See Note 9. Debt f or a reconciliation to long-term and short-term debt . The Company utilizes a discounted cash flow method to determine the fair value of its debt. Inputs include observable municipal and corporate yields, as appropriate, for the maturity of the specific issue and the Company’s credit rating. As of September 30, 2019 and 2018 , the Company disclosed its debt within Level 2 of the fair value hierarchy. Fair Value Hierarchy The Company 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 includes the following: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets. The Company’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 the Company refers to internally 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. The Company’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). 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 the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies. Financial derivative portfolios of NJNG and Energy Services consist mainly of futures, options and swaps. The Company primarily uses the market approach and its policy is to use actively quoted market prices when available. The principal market for its derivative transactions is the natural gas wholesale market; therefore, the primary sources for its price inputs are CME, NYMEX and ICE. Energy Services uses Platts and Natural Gas Exchange for Canadian delivery points. However, Energy Services also engages in transactions that result in transporting natural gas to delivery points for which there is no actively quoted market price. In most instances, the transportation cost to the final delivery location is not significant to the overall valuation. If required, Energy Services’ policy is to use the best information available to determine fair value based on internal pricing models, which would include estimates extrapolated from broker quotes or other pricing services. The Company also has other financial assets that include listed equities, mutual funds and money market funds for which there are active exchange quotes available. When the Company determines fair values, measurements are adjusted, as needed, for credit risk associated with its counterparties, as well as its own credit risk. The Company determines these adjustments by using historical default probabilities that correspond to the applicable S&P issuer ratings, while also taking into consideration collateral and netting arrangements that serve to mitigate risk. Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Thousands) (Level 1) (Level 2) (Level 3) Total As of September 30, 2019: Assets Physical commodity contracts $ — $ 8,624 $ — $ 8,624 Financial commodity contracts 20,028 3,876 — 23,904 Financial commodity contracts - foreign exchange — 1 — 1 Other (1) 1,706 — — 1,706 Total assets at fair value $ 21,734 $ 12,501 $ — $ 34,235 Liabilities Physical commodity contracts $ — $ 40,426 $ — $ 40,426 Financial commodity contracts 35,732 — — 35,732 Financial commodity contracts - foreign exchange — 286 — 286 Total liabilities at fair value $ 35,732 $ 40,712 $ — $ 76,444 As of September 30, 2018: Assets Physical commodity contracts $ — $ 11,682 $ — $ 11,682 Financial commodity contracts 18,868 7,025 — 25,893 Interest rate contract — 381 — 381 Available for sale equity securities 32,917 — — 32,917 Other (1) 1,217 — — 1,217 Total assets at fair value $ 53,002 $ 19,088 $ — $ 72,090 Liabilities Physical commodity contracts $ — $ 29,666 $ — $ 29,666 Financial commodity contracts 39,724 — — 39,724 Financial commodity contracts - foreign exchange — 244 — 244 Total liabilities at fair value $ 39,724 $ 29,910 $ — $ 69,634 (1) Includes money market funds. See Note 5. Derivative Instruments for additional details. |
INVESTMENTS IN EQUITY INVESTEES
INVESTMENTS IN EQUITY INVESTEES | 12 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN EQUITY INVESTEES | 7. INVESTMENTS IN EQUITY INVESTEES As of September 30 , the Company’s investments in equity method investees includes the following: (Thousands) 2019 2018 Steckman Ridge (1) $ 114,428 $ 117,001 PennEast 85,840 73,865 Total $ 200,268 $ 190,866 (1) Includes loans with a total outstanding principal balance of $70.4 million for both fiscal 2019 and 2018 , which accrue interest at a variable rate that resets quarterly and are due October 1, 2023 . NJNG and Energy Services have entered into storage and park and loan agreements with Steckman Ridge. In addition, NJNG and Energy Services are each parties to a precedent capacity agreement with PennEast. See Note 16. Related Party Transactions for more information on these intercompany transactions. The Company, through its subsidiary NJR Pipeline Company, is a 20 percent investor in PennEast, a partnership whose purpose is to construct and operate a 120 -mile natural gas pipeline that will extend from northeast Pennsylvania to western New Jersey. PennEast received a Certificate of Public Convenience and Necessity for the project from FERC on January 19, 2018. On September 10, 2019, the United States Court of Appeals for the Third Circuit issued an order overturning the United States District Court for the District of New Jersey’s order granting PennEast condemnation and immediate access in accordance with the Natural Gas Act to certain properties in which New Jersey holds an interest. The Petition for Panel Rehearing or Rehearing En Banc filed with the United States Court of Appeals for the Third Circuit was denied on November 5, 2019. On October 8, 2019, the NJDEP issued a letter indicating that it deemed PennEast’s freshwater wetlands permit application to be administratively incomplete and closed the matter without prejudice. On October 11, 2019, PennEast submitted a letter to the NJDEP objecting to its position that the freshwater wetlands permit application is administratively incomplete. On November 14, 2019, PennEast announced that it will ask the Supreme Court of the United States to review the September 2019 decision by the United States Court of Appeals for the Third Circuit. PennEast management remains committed to the pipeline project and is currently pursuing its appellate rights and development options to proceed with construction of the pipeline, the nature, timing and extent of which, including impacts to the timing, costs of construction and impacts to the in-service date, are in the process of being determined. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 8. EARNINGS PER SHARE The following table presents the calculation of the Company’s basic and diluted earnings per share for the fiscal years ended September 30 : (Thousands, except per share amounts) 2019 2018 2017 Net income, as reported $ 169,505 $ 233,436 $ 132,065 Basic earnings per share Weighted average shares of common stock outstanding-basic 89,242 87,689 86,321 Basic earnings per common share $1.90 $2.66 $1.53 Diluted earnings per share Weighted average shares of common stock outstanding-basic 89,242 87,689 86,321 Incremental shares (1) 374 626 823 Weighted average shares of common stock outstanding-diluted 89,616 88,315 87,144 Diluted earnings per common share (2) $1.89 $2.64 $1.52 (1) Incremental shares consist primarily of unvested stock awards and performance units. (2) There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2019 , 2018 and 2017 . |
DEBT
DEBT | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | 9. DEBT NJNG and NJR finance working capital requirements and capital expenditures through the issuance of various long-term debt and other financing arrangements, including unsecured credit and private placement debt shelf facilities. Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. Long-term Debt The following table presents the long-term debt of the Company as of September 30 : (Thousands) 2019 2018 NJNG First mortgage bonds: Maturity date: 3.00% Series OO August 1, 2041 46,500 46,500 3.15% Series PP April 15, 2028 50,000 50,000 3.58% Series QQ March 13, 2024 70,000 70,000 4.61% Series RR March 13, 2044 55,000 55,000 2.82% Series SS April 15, 2025 50,000 50,000 3.66% Series TT April 15, 2045 100,000 100,000 3.63% Series UU June 21, 2046 125,000 125,000 4.01% Series VV May 11, 2048 125,000 125,000 3.50% Series WW April 1, 2042 10,300 — 3.38% Series XX April 1, 2038 10,500 — 2.45% Series YY April 1, 2059 15,000 — 3.76% Series ZZ July 17, 2049 100,000 — 3.86% Series AAA July 17, 2059 85,000 — 2.75% Series BBB (formally MM) August 1, 2039 9,545 9,545 3.00% Series CCC (formally NN) August 1, 2043 41,000 41,000 Capital lease obligation-buildings June 1, 2021 5,637 8,749 Capital lease obligation-meters Various dates 29,744 27,188 Less: Debt issuance costs (9,027 ) (6,515 ) Less: Current maturities of long-term debt (10,420 ) (9,502 ) Total NJNG long-term debt 908,779 691,965 NJR 3.25% Unsecured senior notes September 17, 2022 50,000 50,000 3.48% Unsecured senior notes November 7, 2024 100,000 100,000 3.20% Unsecured senior notes August 18, 2023 50,000 50,000 3.54% Unsecured senior notes August 18, 2026 100,000 100,000 3.96% Unsecured senior notes June 8, 2028 100,000 100,000 3.29% Unsecured senior notes July 17, 2029 150,000 — Variable Term loan August 16, 2019 — 100,000 Less: Debt issuance costs (2,004 ) (1,136 ) Less: Current maturities of long-term debt — (100,000 ) Total NJR long-term debt 547,996 398,864 Clean Energy Ventures Solar asset financing obligation Various dates 91,401 103,923 Less: Current maturities of long-term debt (10,999 ) (14,133 ) Total Clean Energy Ventures long-term debt 80,402 89,790 Total long-term debt $ 1,537,177 $ 1,180,619 Annual long-term debt redemption requirements, excluding capital leases, debt issuance costs and solar asset financing obligations, as of September 30 , are as follows: (Thousands) NJNG NJR 2020 $ — $ — 2021 $ — $ — 2022 $ — $ 50,000 2023 $ — $ 50,000 2024 $ 70,000 $ 100,000 Thereafter $ 822,845 $ 350,000 NJNG First Mortgage Bonds NJNG and Trustee entered into the Mortgage Indenture, dated September 1, 2014, which secures all of the outstanding First Mortgage Bonds issued by NJNG. The Mortgage Indenture provides a direct first mortgage lien upon substantially all of the operating properties and franchises of NJNG (other than excepted property, such as cash on hand, choses-in-action, securities, rent, natural gas meters and certain materials, supplies, appliances and vehicles), subject only to certain permitted encumbrances. The Mortgage Indenture contains provisions subjecting after-acquired property (other than excepted property and subject to pre-existing liens, if any, at the time of acquisition) to the lien thereof. NJNG’s Mortgage Indenture no longer contains a restriction on NJNG’s ability to pay dividends. New Jersey Administrative Code 14:4-4.7 states that a public utility cannot issue dividends, without regulatory approval, if its equity to total capitalization ratio falls below 30 percent . As of September 30, 2019 , NJNG’s equity to total capitalization ratio is 56.3 percent and has the ability to issue up to $1 billion of FMB under the terms of the Mortgage Indenture. On April 18, 2019 , NJNG completed the remarketing of three FMBs, in the amount of $35.8 million , with a weighted average interest rate of 3.02 percent . The bonds have maturity dates ranging from April 2038 to April 2059 . The bonds were previously purchased in lieu of redemption and were being held by the Company. On July 17, 2019 , NJNG entered into a Note Purchase Agreement, under which NJNG issued $100 million of 3.76 percent senior notes due July 17, 2049 and $85 million of 3.86 percent senior notes due July 17, 2059 . The senior notes are secured by an equal principal amount of NJNG's FMBs issued under NJNG's Mortgage Indenture. On August 1, 2019 , NJNG completed a remarketing of three existing variable rate FMBs, with a total principal amount of $97 million , which fixed the interest rates of the bonds. NJNG remarketed $46.5 million at 3.00 percent due August 1, 2041 , $41 million at 3.00 percent due August 2043 and $9.5 million at 2.75 percent due August 1, 2039 . EDA Bonds are special, limited obligations of the EDA payable solely from payments made by NJNG pursuant to a Loan Agreement and are secured by the pledge of $97 million principal amount of the FMB issued by the Company. Sale-Leasebacks NJNG has entered into a sale-leaseback for its headquarters building, which has a 25.5 -year term that expires in June 2021 , subject to an option by NJNG to renew the lease for additional five -year terms a maximum of four times. The present value of the agreement’s minimum lease payments is reflected as both a capital lease asset and a capital lease obligation, which are included in utility plant and long-term debt, respectively, on the Consolidated Balance Sheets. NJNG received $9.9 million , $7.8 million and $9.6 million for fiscal 2019 , 2018 and 2017 , respectively, in connection with the sale-leaseback of its natural gas meters. NJNG records a capital lease obligation that is paid over the term of the lease and has the option to purchase the meters back at fair value upon expiration of the lease. During fiscal 2019 , 2018 and 2017 , NJNG exercised early purchase options with respect to meter leases by making final principal payments of $1.1 million , $2.2 million and $2.4 million , respectively. NJNG continues to evaluate this sale-leaseback program based on current market conditions. Contractual commitments for capital lease payments, as of the fiscal years ended September 30, are as follows: (Thousands) Lease Payments 2020 $ 11,707 2021 6,603 2022 7,494 2023 3,995 2024 4,652 Thereafter 4,173 Subtotal 38,624 Less: Interest component (3,243 ) Total $ 35,381 NJR On July 17, 2019 , NJR entered into a Note Purchase Agreement for $150 million of 3.29 percent senior notes due on July 17, 2029 . NJR issued $50 million of these senior notes on July 17, 2019 and issued the remaining $100 million of these senior notes on August 15, 2019. On January 26, 2018 , NJR entered into a variable-for-fixed interest rate swap on its $100 million variable rate term loan, which fixed the variable rate at 2.84 percent . The swap terminated on August 16, 2019 , which coincided with the maturity of the debt. NJR had no long-term variable-rate debt outstanding as of September 30, 2019 . Clean Energy Ventures Clean Energy Ventures received proceeds of $71.5 million and $32.9 million in fiscal 2018 and 2017, respectively, in connection with the sale-leaseback of commercial solar assets. Clean Energy Ventures did not receive proceeds related to the sale-leaseback of commercial solar assets during fiscal 2019 . Clean Energy Ventures enters into transactions to sell the commercial solar assets concurrent with agreements to lease the assets back over a period of six to 15 years. These sale-leasebacks are treated as financing obligations, which are typically secured by the renewable energy facility asset and its future cash flows from SREC and energy sales. ITCs and other tax benefits associated with these solar projects are transferred to the buyer. Clean Energy Ventures continues to operate the solar assets, including related expenses, and retain the revenue generated from SRECs and energy sales, and has the option to renew the lease or repurchase the assets sold at the end of the lease term. Contractual commitments for solar sale-leaseback lease payments, as of the fiscal years ended September 30, are as follows: (Thousands) Lease Payments 2020 $ 7,830 2021 7,803 2022 7,802 2023 7,878 2024 7,359 Thereafter 30,945 Subtotal 69,617 Less: Interest component (22,971 ) Total $ 46,646 Short-term Debt A summary of NJR’s and NJNG’s short-term bank facilities as of September 30, are as follows: (Thousands) 2019 2018 NJR Bank revolving credit facilities: (1) $ 425,000 $ 425,000 Notes outstanding at end of period $ 25,450 $ 87,950 Weighted average interest rate at end of period 3.04 % 3.07 % Amount available at end of period (2) $ 394,800 $ 322,144 NJNG Bank revolving credit facilities: (3) $ 250,000 $ 250,000 Commercial paper outstanding at end of period $ — $ 64,000 Weighted average interest rate at end of period — % 2.18 % Amount available at end of period (4) $ 249,269 $ 185,269 (1) Committed credit facilities, which require commitment fees of .075 percent on the unused amounts. (2) Letters of credit outstanding total $4.8 million and $14.9 million as of September 30, 2019 and 2018 , respectively, which reduces amount available by the same amount. (3) Committed credit facilities, which require commitment fees of .075 percent on the unused amounts. (4) Letters of credit outstanding total $731,000 as of September 30, 2019 and 2018 , which reduces amount available by the same amount. NJR On December 5, 2018 , NJR entered into an Amended and Restated Credit Agreement governing a $425 million NJR Credit Facility. The NJR Credit Facility expires on December 5, 2023 , subject to two mutual options for a one -year extension beyond that date. The NJR Credit Facility permits the borrowing of revolving loans and swingline loans, as well as the issuance of letters of credit. The NJR Credit Facility also includes an accordion feature, which would allow NJR, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJR Credit Facility in minimum increments of $50 million increments up to a maximum of $250 million . Certain of NJR’s unregulated subsidiaries have guaranteed all of NJR’s obligations under the NJR Credit Facility. The credit facility is used primarily to finance its share repurchases, to satisfy Energy Services’ short-term liquidity needs and to finance, on an initial basis, unregulated investments. 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 facilities. These transactions are permissible so long as NJR is in compliance with certain covenants both before and after such incurrence, and if no event of default may be caused by such sale-leaseback or similar arrangement. In December 2018 , NJR entered into a four -month, $100 million revolving line of credit facility. This facility expired on April 18, 2019 and was not renewed. There were no amounts outstanding under this credit facility at expiration. As of September 30, 2019 , NJR had two letters of credit outstanding totaling $4.8 million on behalf of Energy Services. These letters of credit reduce the amount available under NJR’s committed credit facility by the same amount. NJR does not anticipate that these letters of credit will be drawn upon by the counterparties, and they will be renewed as necessary. Energy Services’ letters of credit are used for margin requirements for natural gas transactions, collateral and security deposit for retail gas sales and expire on dates ranging from December 2019 to September 2020 . Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities. NJNG On December 5, 2018 , NJNG entered into an Amended and Restated Credit Agreement governing a $250 million , NJNG Credit Facility. The NJNG Credit Facility expires on December 5, 2023 , subject to two mutual options for a one -year extension beyond that date. The NJNG Credit Facility permits the borrowing of revolving loans and swingline loans, as well as the issuance of letters of credit. The NJNG Credit Facility also includes an accordion feature, which would allow NJNG, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJNG Credit Facility in minimum increments of $50 million up to a maximum of $100 million . As of September 30, 2019 , NJNG has two letters of credit outstanding for $731,000 . NJNG’s letters of credit are used as collateral for remediation projects and expire in August 2020 . These letters of credit reduce the amount available under NJNG’s committed credit facility by the same amount. NJNG does not anticipate that these letters of credit will be drawn upon by the counterparty and they will be renewed as necessary. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | 10. STOCK-BASED COMPENSATION In January 2017, the NJR 2017 Stock Award and Incentive Plan replaced the NJR 2007 Stock Award and Incentive Plan. Shares have been issued in the form of performance shares, restricted stock, deferred retention stock and unrestricted common stock to non-employee directors. As of September 30, 2019 , 3,291,481 shares remain available for future issuance. The following table summarizes all stock-based compensation expense recognized during the following fiscal years: (Thousands) 2019 2018 2017 Stock-based compensation expense: Performance share awards $ 5,804 $ 3,526 $ 2,614 Restricted and non-restricted stock 2,492 2,191 1,732 Deferred retention stock 1,500 7,128 1,461 Compensation expense included in operation and maintenance expense 9,796 12,845 5,807 Income tax benefit (1) (2,848 ) (3,734 ) (2,372 ) Total, net of tax $ 6,948 $ 9,111 $ 3,435 (1) Excludes additional tax benefit related to delivered shares of $1.3 million , $3 million and $1.3 million as of September 30, 2019 , 2018 and 2017 , respectively. Performance Shares In fiscal 2019 , the Company granted to certain officers 36,392 performance shares, which are market condition awards that vest on September 30, 2021 , subject to the Company meeting certain performance conditions. In fiscal 2019 , the Company also granted to certain officers 63,870 performance shares, of which 33,844 vest on September 30, 2021 and 30,026 vest annually over a three -year period beginning on September 30, 2019 , both of which are subject to the Company meeting certain performance conditions. In fiscal 2018 , the Company granted to certain officers 31,836 performance shares, which are market condition awards that vest on September 30, 2020 , subject to the Company meeting certain performance conditions. In fiscal 2018 , the Company also granted to certain officers 59,341 performance shares, of which 29,608 vest on September 30, 2020 and 29,733 vest annually over a three -year period beginning in September 30, 2018 , both of which are subject to the Company meeting certain performance conditions. In fiscal 2017 , the Company granted to certain officers 44,576 performance shares, which are market condition awards that vested on September 30, 2019 , subject to the Company meeting certain performance conditions. In fiscal 2017 , the Company also granted to certain officers 51,931 performance shares, of which 25,806 vested in September 30, 2019 and 26,125 vest annually over a three -year period beginning in September 2017 , both of which were subject to the Company meeting certain performance conditions. The vesting of these awards are shown in the table below. There is approximately $2.4 million of deferred compensation related to unvested performance shares that is expected to be recognized over the weighted average period of 1.7 years. The following table summarizes the performance share activity under the stock award and incentive plans for the past three fiscal years: Shares (1) Weighted Average Grant Date Fair Value Total Fair Value of Vested Shares (in Thousands) Non-vested and outstanding at September 30, 2016 179,916 $27.47 — Granted 96,507 $33.57 — Vested (2) (95,407 ) $28.88 $ 4,179 Cancelled/forfeited (24,429 ) $29.14 — Non-vested and outstanding at September 30, 2017 156,587 $30.12 — Granted 91,177 $44.67 — Vested (3) (100,146 ) $29.49 $ 4,714 Cancelled/forfeited (2,442 ) $31.45 — Non-vested and outstanding at September 30, 2018 145,176 $39.67 — Granted 100,262 $47.98 — Vested (4) (103,009 ) $38.52 $ 4,622 Cancelled/forfeited (11,920 ) $44.34 — Non-vested and outstanding at September 30, 2019 130,509 $46.53 — (1) The number of common shares issued related to certain performance shares may range from zero to 150 percent of the number of shares shown in the table above based on the Company’s achievement of performance goals . (2) As certified by the Company’s Leadership and Compensation Committee on November 14, 2017 , the number of common shares related to performance shares earned was 108.44 percent , or 39,595 shares, the number of common shares earned related to NFE performance was 119 percent or 36,498 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100 percent or 28,223 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100 percent . (3) As certified by the Company’s Leadership and Compensation Committee on November 13, 2018 , the number of common shares earned related to TSR performance was 99 percent or 38,660 shares, the number of common shares earned related to NFE performance was 121 percent or 39,694 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100 percent or 36,998 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100 percent . (4) As certified by the Company’s Leadership and Compensation Committee on November 12, 2019 , the number of common shares earned related to TSR performance was 119 percent or 43,641 shares, the number of common shares earned related to NFE performance was 117 percent or 26,413 shares and the number of common shares earned related to Performance Based Restricted Stock was 100 percent or 24,468 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100 percent . The Company measures compensation expense related to performance shares based on the fair value of these awards at their date of grant. In accordance with ASC 718, Compensation - Stock Compensation , compensation expense for market condition grants are recognized for awards granted, and are not adjusted based on actual achievement of the performance goals. The Company estimated the fair value of these grants on the date of grant using a lattice model. Performance condition grants are initially fair valued at the Company’s stock price on grant date, and are subsequently adjusted for actual achievement of the performance goals. Restricted Stock In fiscal 2019 , the Company granted 29,222 shares of restricted stock that vest annually over a three -year period beginning October 15, 2019 . In fiscal 2019 , the Company also granted 6,062 shares of restricted stock that vest annually over a three -year period beginning April 2020 . In fiscal 2018 , the Company granted 27,949 shares of restricted stock that vest annually over a three -year period beginning in October 2018 . In fiscal 2017 , the Company granted 22,591 shares of restricted stock that vest annually over a three -year period beginning in October 2017 . In fiscal 2017 , the Company also granted 6,143 shares of restricted stock that vest annually over a three -year period beginning May 2018 . There is approximately $943,000 of deferred compensation related to unvested restricted stock shares that is expected to be recognized over the weighted average period of 1.9 years. The following table summarizes the restricted stock activity under the stock award and incentive plans for the past three fiscal years: Shares Weighted Average Grant Date Fair Value Total Fair Value of Vested Shares (in Thousands) Non-vested and outstanding at September 30, 2016 73,071 $29.09 — Granted 28,734 $35.79 — Vested (38,752 ) $28.92 $ 1,344 Cancelled/forfeited (11,899 ) $31.56 — Non-vested and outstanding at September 30, 2017 51,154 $32.40 — Granted 27,949 $45.00 — Vested (33,815 ) $31.23 $ 1,438 Cancelled/forfeited (1,120 ) $33.54 — Non-vested and outstanding at September 30, 2018 44,168 $41.24 — Granted 35,284 $48.24 — Vested (20,748 ) $39.26 $ 935 Cancelled/forfeited (548 ) $42.96 — Non-vested and outstanding at September 30, 2019 58,156 $46.18 — Deferred Retention Stock Deferred retention stock awards are granted upon approval by the Board of Directors, which generally occurs subsequent to the fiscal year end. Deferred retention stock awards vest immediately when granted, with shares delivered at a future date in accordance with the terms of the underlying agreements. The expense for these awards is recognized in the fiscal year in which services are rendered. The following table summarizes the deferred retention stock award under the stock award and incentive plans for the past three fiscal years: Shares Weighted Average Grant Date Fair Value Total Fair Value of Vested Shares (in Thousands) Outstanding at September 30, 2016 662,479 $29.06 — Granted/Vested 63,977 $35.64 — Delivered (53,878 ) $23.11 $ 1,774 Outstanding at September 30, 2017 672,578 $29.54 — Granted/Vested 24,167 $45.00 — Delivered (452,694 ) $29.42 $ 19,581 Forfeited (1,969 ) $35.56 Outstanding at September 30, 2018 242,082 $32.99 — Granted/Vested 167,407 $47.95 — Delivered (158,733 ) $30.32 $ 7,145 Forfeited (7,195 ) $44.41 — Outstanding at September 30, 2019 243,561 $44.67 — Non-Employee Director Stock Non-employee director compensation includes an annual January retainer that is awarded in stock. The shares vest immediately and are subsequently amortized to expense over a 12-month period. The following summarizes non-employee director share awards for the past three fiscal years: 2019 2018 2017 Shares granted 26,165 (1) 26,524 27,972 Weighted average grant date fair value $44.80 $39.85 $35.59 (1) $311,000 of expense remains as of September 30, 2019 , to be recognized through December 31, 2019 . |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | 11. EMPLOYEE BENEFIT PLANS Pension and Other Postemployment Benefit Plans The Company has two trusteed, noncontributory defined benefit retirement plans covering eligible regular represented and non-represented employees with more than one year of service. Defined benefit plan benefits are based on years of service and average compensation during the highest 60 consecutive months of employment. The Company also provides postemployment medical and life insurance benefits to employees who meet certain eligibility requirements. All represented employees of NJRHS hired on or after October 1, 2000, non-represented employees hired on or after October 1, 2009 and NJNG represented employees hired on or after January 1, 2012, are covered by an enhanced defined contribution plan instead of the defined benefit plan. Participation in the postemployment medical and life insurance plan was also frozen to new employees as of the same dates, with the exception of new NJRHS represented employees, for which benefits were frozen beginning April 3, 2012. The Company maintains an unfunded nonqualified PEP that was established to provide employees with the full level of benefits as stated in the qualified plan without reductions due to various limitations imposed by the provisions of federal income tax laws and regulations. There were no plan assets in the nonqualified plan due to the nature of the plan. In April 2018, the Company implemented a voluntary early retirement program open to certain eligible employees. As of September 30, 2018, pension and postemployment benefit costs related to the special termination benefits were $4.2 million and other severance benefits were $2.2 million . For the amounts incurred, NJNG recognized an expense of approximately $5.1 million and Home Services and other recognized an expense of approximately $1.3 million , as a component of O&M in the Consolidated Statements of Operations. The Company’s funding policy for its pension plans is to contribute at least the minimum amount required by the Employee Retirement Income Security Act of 1974, as amended. In fiscal 2019 and 2018 , the Company had no minimum funding requirements. The Company made no discretionary contributions to the pension plans in fiscal 2019 or 2018 . The Company does not expect to be required to make additional contributions to fund the pension plans over the following two fiscal years based on current actuarial assumptions; however, funding requirements are uncertain and can depend significantly on changes in actuarial assumptions, returns on plan assets and changes in the demographics of eligible employees and covered dependents. There are no federal requirements to pre-fund OPEB benefits. However, the Company is required to fund certain amounts due to regulatory agreements with the BPU. The Company contributed $7.9 million and $6.2 million , in fiscal 2019 and 2018 , respectively, and estimates that it will contribute between $5 million and $10 million over each of the next five years . Additional contributions may be required based on market conditions and changes to assumptions. The following summarizes the changes in the funded status of the plans and the related liabilities recognized on the Consolidated Balance Sheets as of September 30 : Pension (1) OPEB (Thousands) 2019 2018 2019 2018 Change in Benefit Obligation Benefit obligation at beginning of year $ 298,575 $ 297,835 $ 196,785 $ 175,090 Service cost 7,381 8,139 4,404 4,607 Interest cost 12,173 10,493 8,324 6,365 Plan participants’ contributions (2) 43 45 210 161 Special termination benefits (3) — 3,730 — 490 Actuarial loss (gain) 52,549 (12,846 ) 54,700 15,145 Benefits paid, net of retiree subsidies received (10,244 ) (8,821 ) (4,420 ) (5,073 ) Benefit obligation at end of year $ 360,477 $ 298,575 $ 260,003 $ 196,785 Change in plan assets Fair value of plan assets at beginning of year $ 279,410 $ 271,743 $ 77,980 $ 71,534 Actual return on plan assets 19,194 16,306 2,499 5,284 Employer contributions 231 137 7,926 6,222 Benefits paid, net of plan participants’ contributions (2) (10,201 ) (8,776 ) (4,479 ) (5,060 ) Fair value of plan assets at end of year $ 288,634 $ 279,410 $ 83,926 $ 77,980 Funded status $ (71,843 ) $ (19,165 ) $ (176,077 ) $ (118,805 ) Amounts recognized on Consolidated Balance Sheets Postemployment employee (liability) Current $ (603 ) $ (294 ) $ (800 ) $ (669 ) Noncurrent (71,240 ) (18,871 ) (175,277 ) (118,136 ) Total $ (71,843 ) $ (19,165 ) $ (176,077 ) $ (118,805 ) (1) Includes the Company’s PEP. (2) Prior to July 1, 1998, employees were eligible to elect an additional participant contribution to enhance their benefits and contributions made during the periods were insignificant. (3) Related to the voluntary early retirement program offered during fiscal 2018, as previously discussed. The actuarial loss on the Company’s pension is primarily due to a decrease in the discount rate used to measure the obligation. The actuarial loss related to the OPEB plans is primarily due to a decrease in the discount rate used to measure the obligation and an increase in expected retiree healthcare claims. The Company recognizes a liability for its underfunded benefit plans as required by ASC 715, Compensation - Retirement Benefits . The Company records the offset to regulatory assets for the portion of liability relating to NJNG and to accumulated other comprehensive income for the portion of the liability related to its unregulated operations. The following table summarizes the amounts recognized in regulatory assets and accumulated other comprehensive income as of September 30 : Regulatory Assets Accumulated Other Comprehensive Income (Loss) Pension OPEB Pension OPEB Balance at September 30, 2017 $ 78,605 $ 60,460 $ 19,415 $ 4,967 Amounts arising during the period: Net actuarial (gain) loss (6,090 ) 12,378 (3,422 ) 2,834 Amounts amortized to net periodic costs: Net actuarial (loss) (6,177 ) (4,464 ) (1,359 ) (196 ) Prior service (cost) credit (105 ) 311 (1 ) 54 Balance at September 30, 2018 $ 66,233 $ 68,685 $ 14,633 $ 7,659 Amounts arising during the period: Net actuarial loss 38,137 48,452 14,271 9,264 Amounts amortized to net periodic costs: Net actuarial (loss) (4,662 ) (5,820 ) (1,103 ) (648 ) Prior service (cost) credit (102 ) 312 — 53 Balance at September 30, 2019 $ 99,606 $ 111,629 $ 27,801 $ 16,328 The amounts in regulatory assets and accumulated other comprehensive income not yet recognized as components of net periodic benefit cost as of September 30 are: Regulatory Assets Accumulated Other Comprehensive Income (Loss) Pension OPEB Pension OPEB (Thousands) 2019 2018 2019 2018 2019 2018 2019 2018 Net actuarial loss $ 99,139 $ 65,664 $ 112,109 $ 69,477 $ 27,801 $ 14,633 $ 16,367 $ 7,750 Prior service cost (credit) 467 569 (480 ) (792 ) — — (39 ) (91 ) Total $ 99,606 $ 66,233 $ 111,629 $ 68,685 $ 27,801 $ 14,633 $ 16,328 $ 7,659 To the extent the unrecognized amounts in accumulated other comprehensive income or regulatory assets exceed 10 percent of the greater of the benefit obligation or the fair value of plan assets, an amortized amount over the average expected future working lifetime of the active plan participants is recognized. Amounts included in regulatory assets and accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost in fiscal 2020 are as follows: Regulatory Assets Accumulated Other Comprehensive Income (Loss) (Thousands) Pension OPEB Pension OPEB Net actuarial loss $ 8,470 $ 10,055 $ 2,514 $ 1,407 Prior service cost (credit) 102 (182 ) — (15 ) Total $ 8,572 $ 9,873 $ 2,514 $ 1,392 The accumulated benefit obligation for the pension plans, including the PEP, exceeded the fair value of plan assets. The projected benefit and accumulated benefit obligations and the fair value of plan assets as of September 30, are as follows: Pension (Thousands) 2019 2018 Projected benefit obligation $ 360,477 $ 298,575 Accumulated benefit obligation $ 319,527 $ 263,279 Fair value of plan assets $ 288,634 $ 279,410 The components of the net periodic cost for pension benefits, including the Company’s PEP, and OPEB costs (principally health care and life insurance) for employees and covered dependents for fiscal years ended September 30, are as follows: Pension OPEB (Thousands) 2019 2018 2017 2019 2018 2017 Service cost $ 7,381 $ 8,139 $ 8,347 $ 4,404 $ 4,607 $ 4,380 Interest cost 12,173 10,493 9,771 8,324 6,365 5,545 Expected return on plan assets (19,054 ) (19,639 ) (19,313 ) (5,515 ) (5,352 ) (4,767 ) Recognized actuarial loss 5,765 7,537 8,827 6,466 4,660 4,370 Prior service cost (credit) amortization 102 106 111 (365 ) (365 ) (365 ) Net periodic benefit cost $ 6,367 $ 6,636 $ 7,743 $ 13,314 $ 9,915 $ 9,163 Special termination benefit — 3,730 — — 490 — Net periodic benefit cost recognized as expense $ 6,367 $ 10,366 $ 7,743 $ 13,314 $ 10,405 $ 9,163 Assumptions The weighted average assumptions used to determine the Company’s benefit costs during the fiscal years below and obligations as of September 30, are as follows: Pension OPEB 2019 2018 2017 2019 2018 2017 Benefit costs: Discount rate 4.36/4.35% (1) 4.04/4.03% (1) 3.96/3.94% (1) 4.38/4.37% (1) 4.12/4.08% (1) 4.08/4.01% (1) Expected asset return 7.00 % 7.50 % 7.75 % 7.00 % 7.50 % 7.75 % Compensation increase 3.25/3.50% (1) 3.25/3.50% (1) 3.25/3.50% (1) 3.25/3.50 (1) 3.25/3.50% (1) 3.25/3.50% (1) Obligations: Discount rate 3.37/3.35% (1) 4.36/4.35% (1) 4.03 % 3.48/3.44% (1) 4.38/4.37% (1) 4.12/4.08% (1) Compensation increase 3.00/3.50% (1) 3.25/3.50% (1) 3.25/3.50% (1) 3.00/3.50% (1) 3.25/3.50% (1) 3.25/3.50% (1) (1) Percentages for represented and nonrepresented plans, respectively. When measuring its projected benefit obligations, the Company uses an aggregate discount rate at which its obligation could be effectively settled. The Company determines a single weighted average discount rate based on a yield curve comprised of rates of return on a population of high quality debt issuances (AA- or better) whose cash flows (via coupons or maturities) match the timing and amount of its expected future benefit payments. The Company measures its service and interest costs using a disaggregated, or spot rate, approach. The Company applies the duration-specific spot rates from the full yield curve, as of the measurement date, to each year’s future benefit payments, which aligns the timing of the plans’ separate future cash flows to the corresponding spot rates on the yield curve. Information relating to the assumed HCCTR used to determine expected OPEB benefits as of September 30, and the effect of a 1 percent change in the rate, are as follows: ($ in thousands) 2019 2018 2017 HCCTR 7.6% 7.9% 8.3% Ultimate HCCTR 4.5% 4.5% 4.5% Year ultimate HCCTR reached 2026 2024 2025 Effect of a 1 percentage point increase in the HCCTR on: Year-end benefit obligation $ 49,061 $ 36,260 $ 32,019 Total service and interest cost $ 2,923 $ 2,482 $ 2,468 Effect of a 1 percentage point decrease in the HCCTR on: Year-end benefit obligation $ (38,747 ) $ (28,743 ) $ (25,466 ) Total service and interest costs $ (2,250 ) $ (1,937 ) $ (1,909 ) The Company’s investment objective is a long-term real rate of return on assets before permissible expenses that is approximately 5 percent greater than the assumed rate of inflation, as measured by the consumer price index. The expected long-term rate of return is based on the asset categories in which the Company invests and the current expectations and historical performance for these categories. The mix and targeted allocation of the pension and OPEB plans’ assets are as follows: 2020 Assets at Target September 30, Asset Allocation Allocation 2019 2018 U.S. equity securities 34 % 37 % 41 % International equity securities 17 17 19 Fixed income 38 42 37 Other assets 11 4 3 Total 100 % 100 % 100 % The Company adopted the revised mortality assumptions published by the Society of Actuaries for its pension and other postemployment benefit obligations, which reflected increased life expectancies in the United States. The adoption of the new mortality projection scale, MP-2018, did not materially impact the projected benefit obligation for the plans. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following fiscal years: (Thousands) Pension OPEB 2020 $ 12,234 $ 6,267 2021 $ 12,758 $ 6,804 2022 $ 13,585 $ 7,589 2023 $ 14,405 $ 8,249 2024 $ 15,210 $ 8,910 2025 - 2029 $ 90,726 $ 55,025 The Company’s OPEB plans provide prescription drug benefits that are actuarially equivalent to those provided by Medicare Part D. Therefore, under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, the Company qualifies for federal subsidies. The following estimated subsidy payments are expected to be paid during the following fiscal years: Estimated Subsidy (Thousands) Payment 2020 $ 261 2021 $ 286 2022 $ 314 2023 $ 350 2024 $ 387 2025 - 2029 $ 2,605 Pension and OPEB assets held in the master trust, measured at fair value, as of September 30, are summarized as follows: (Thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Total As of September 30, 2019: Pension OPEB Assets Money market funds $ — $ — $ 21 $ 21 Registered Investment Companies: Equity Funds: Large Cap Index 89,374 89,374 25,474 25,474 Extended Market Index 16,548 16,548 5,036 5,036 International Stock 49,929 49,929 14,564 14,564 Fixed Income Funds: Emerging Markets 15,794 15,794 4,764 4,764 Core Fixed Income — — 10,570 10,570 Opportunistic Income — — 6,365 6,365 Ultra Short Duration — — 6,340 6,340 High Yield Bond Fund 24,328 24,328 7,350 7,350 Long Duration Fund 80,041 80,041 — — Total assets at in the fair value hierarchy $ 276,014 276,014 $ 80,484 80,484 Investments measured at net asset value Common collective trusts 12,620 3,442 Total assets at fair value $ 288,634 $ 83,926 (Thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Total As of September 30, 2018: Pension OPEB Assets Money market funds $ 8,207 $ 8,207 $ 2,273 $ 2,273 Registered Investment Companies: Equity Funds: Large Cap Index 97,016 97,016 27,340 27,340 Extended Market Index 17,741 17,741 5,014 5,014 International Stock 53,516 53,516 14,874 14,874 Fixed Income Funds: Emerging Markets 11,754 11,754 3,264 3,264 Core Fixed Income — — 7,970 7,970 Opportunistic Income — — 4,798 4,798 Ultra Short Duration — — 4,830 4,830 High Yield Bond Fund 25,720 25,720 7,236 7,236 Long Duration Fund 64,039 64,039 — — Total assets at in the fair value hierarchy $ 277,993 277,993 $ 77,599 77,599 Investments measured at net asset value Common collective trusts 1,417 381 Total assets at fair value $ 279,410 $ 77,980 The Plan had no Level 2 or Level 3 fair value measurements during fiscal 2019 and 2018 , and there have been no changes in valuation methodologies as of September 30, 2019 . The Plan held assets that are valued using net asset value as a practical expedient, which are excluded from the fair value hierarchy. The following is a description of the valuation methodologies used for assets measured at fair value: Money Market funds — Represents bank balances and money market funds that are valued based on the net asset value of shares held at year end. Registered Investment Companies — Equity and fixed income funds valued at the net asset value of shares held by the plan at year end as reported on the active market on which the individual securities are traded. Common collective trusts — The NAV for common collective trusts is provided by the trustee, and is used as a practical expedient to estimate fair value. The NAV is based on the value of the underlying assets owned by the fund less liabilities. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Defined Contribution Plan The Company offers a Savings Plan to eligible employees. The Company matches 75 percent of participants’ contributions up to 6 percent of base compensation. Represented NJRHS employees, non-represented employees hired on or after October 1, 2009 , and NJNG represented employees hired on or after January 1, 2012 , are eligible for an employer special contribution of between 4 and 5 percent of base compensation, depending on years of service, into the Savings Plan on their behalf. The amount expensed and contributed for the matching provision of the Savings Plan was $3.9 million in fiscal 2019 , $3.9 million in fiscal 2018 and $2.9 million in fiscal 2017 . The amount contributed for the employer special contribution of the Savings Plan was $1.3 million in fiscal 2019 , $959,000 in fiscal 2018 and $781,000 in fiscal 2017 . |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | 12. ASSET RETIREMENT OBLIGATIONS The Company recognizes ARO when the legal obligation to retire an asset has been incurred and a reasonable estimate of fair value can be made. Accordingly, the Company recognizes ARO related to the costs associated with cutting and capping its main and service gas distribution pipelines of NJNG, which is required by New Jersey law when taking such gas distribution pipeline out of service. The Company also recognizes ARO related to Clean Energy Ventures’ solar assets when there are decommissioning provisions in Clean Energy Ventures’ lease agreements that require removal of the asset. Accretion amounts associated with NJNG’s ARO are recognized as part of its depreciation expense and the corresponding regulatory asset and liability will be shown gross on the Consolidated Balance Sheets. Accretion amounts associated with Clean Energy Ventures’ ARO are recognized as a component of operations and maintenance expense on the Consolidated Statements of Operations. The following is an analysis of the change in the Company’s ARO for the fiscal years ended September 30 : (Thousands) 2019 2018 NJNG NJRCEV NJNG NJRCEV Balance at October 1 $ 25,640 $ 3,048 $ 24,825 $ 6,595 Accretion 1,427 150 1,366 198 Additions 135 904 1,880 517 Revisions in estimated cash flows — — (2,133 ) — Retirements (258 ) — (298 ) — Reclassification to held for sale or sold — — — (4,262 ) Balance at period end $ 26,944 $ 4,102 $ 25,640 $ 3,048 Accretion for the next five years, for the fiscal years ended September 30 , is estimated to be as follows: Estimated (Thousands) Accretion 2020 $ 1,669 2021 1,745 2022 1,823 2023 1,908 2024 1,994 Total $ 9,139 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 13. INCOME TAXES The income tax (benefit) provision from operations for the fiscal years ended September 30, consists of the following: (Thousands) 2019 2018 2017 Current: Federal $ 10,933 $ (2,848 ) $ (16,023 ) State 3,530 4,563 2,470 Deferred: Federal 7,988 (40,785 ) 54,965 State 5,833 6,731 11,457 Investment/production tax credits, net (66,035 ) (21,446 ) (34,526 ) Income tax (benefit) provision $ (37,751 ) $ (53,785 ) $ 18,343 As of September 30, the temporary differences, which give rise to deferred tax assets (liabilities), consist of the following: (Thousands) 2019 2018 Deferred tax assets Investment tax credits (1) $ 156,153 $ 123,258 Federal net operating losses (2) 24,173 24,500 State net operating losses 25,302 34,754 Fair value of derivatives 9,673 8,411 Postemployment benefits 9,192 — Incentive compensation 7,231 4,646 Amortization of intangibles 4,991 3,737 Conservation incentive plan — 1,955 Other 3,105 8,213 Total deferred tax assets $ 239,820 $ 209,474 Deferred tax liabilities Property related items $ (379,673 ) $ (392,886 ) Remediation costs (10,720 ) (9,229 ) Equity investments (21,730 ) (31,956 ) Underrecovered gas costs (2,657 ) (1,156 ) Conservation incentive plan (942 ) — Postemployment benefits — (353 ) Other (4,776 ) (7,826 ) Total deferred tax liabilities $ (420,498 ) $ (443,406 ) Total net deferred tax liabilities $ (180,678 ) $ (233,932 ) (1) Includes $2 million and $2.2 million for NJNG for fiscal 2019 and 2018 , respectively , which is being amortized over the life of the related assets, and $154.2 million and $121.1 million for Clean Energy Ventures for fiscal 2019 and 2018 , respectively , which is ITC carryforward. (2) See discussion of federal net operating loss utilization in the Other Tax Items section of this note. A reconciliation of the U.S. federal statutory rate to the effective rate from operations for the fiscal years ended September 30, is as follows: (Thousands) 2019 2018 2017 Statutory income tax expense $ 27,668 $ 44,014 $ 52,643 Change resulting from: Investment/production tax credits (66,035 ) (21,446 ) (34,526 ) Cost of removal of assets placed in service prior to 1981 (6,349 ) (5,829 ) (6,886 ) AFUDC equity (2,313 ) (2,117 ) (2,624 ) State income taxes, net of federal benefit 7,707 7,092 8,222 Basis adjustment of solar assets due to ITC 6,500 1,080 4,256 Tax Act - utility excess deferred income taxes amortized (1) (3,573 ) (1,786 ) — Tax Act - nonutility excess deferred income taxes (1) — (59,627 ) — Tax Act - utility excess deferred income taxes refunded to customers (1) — (14,323 ) — Other (1,356 ) (843 ) (2,742 ) Income tax (benefit) provision $ (37,751 ) $ (53,785 ) $ 18,343 Effective income tax rate (2) (3) (28.7 )% (29.9 )% 12.2 % (1) For a more detailed description, see The Tax Act section of this note. (2) The U.S. federal statutory rate was 21 percent , 24.5 percent and 35 percent for fiscal 2019, 2018 and 2017, respectively. (3) The effective tax rate without the impact of the Tax Act would have been 12.4 percent for fiscal 2018. The Company and one or more of its subsidiaries files or expects to file income and/or franchise tax returns in the U.S. Federal jurisdiction and in the states of Colorado, Connecticut, Delaware, Iowa, Kansas, Louisiana, Maryland, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Texas, Utah, Virginia and the City of New York. The Company neither files in, nor believes it has a filing requirement in, any foreign jurisdictions other than Canada. Due to certain available tax treaty benefits, the Company incurs no tax liability in Canada. The Company’s federal income tax returns through fiscal 2014 have either been reviewed by the IRS, or the related statute of limitations has expired and all matters have been settled. Federal income tax returns for periods subsequent to fiscal 2014 are open to examination or are currently under examination by the IRS. For all periods subsequent to those ended September 30, 2015, the Company’s state income tax returns are statutorily open to examination in all applicable states with the exception of Colorado, New Jersey and Texas. In Colorado, New Jersey and Texas, all periods subsequent to September 30, 2014 are statutorily open to examination. In May 2019, the Company received a favorable ruling from the IRS regarding a change to its tax method of accounting for the capitalization of certain costs associated with self-constructed property placed in service during fiscal years prior to September 30, 2015. The self-constructed property to which these costs relate is considered qualified energy property as defined under the Internal Revenue Code. As such, the Company is eligible to claim a 30 percent ITC on the increase in the depreciable cost basis of the property through the filing of an amended tax return in the year of change. As a result of the favorable IRS ruling, the Company recorded a benefit from income taxes of approximately $10 million from the additional ITC recognized, net of deferred taxes. NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with unrecognized tax benefits. A tax benefit claimed, or expected to be claimed, on a tax return may be recognized if it is more likely than not that the position will be upheld upon examination by the applicable taxing authority. Interest and penalties related to unrecognized tax benefits, if any, are recognized within income tax expense and accrued interest, and penalties are recognized within other noncurrent liabilities on the Consolidated Balance Sheets. As of September 30, 2019 , the Company evaluated certain tax benefits that have been recorded in the financial statements and concluded that a portion of the tax benefits are uncertain at this time. As a result, the Company recorded a reserve that is included in accrued taxes on the Consolidated Balance Sheets. The tax benefits relate to fiscal tax years open to examination by the IRS and may be subject to subsequent adjustment. The reserve for uncertain tax benefits for the fiscal year ended September 30, is as follows: (Thousands) 2019 Balance at October 1, $ — Additions based on tax positions related to the current fiscal period 4,930 Balance at period end $ 4,930 During fiscal 2018, there were no reserves associated with uncertain tax positions. Other Tax Items As of September 30, 2019 and 2018 , the Company has federal income tax net operating losses of approximately $134 million and $136.8 million , respectively. Federal net operating losses can generally can be carried back two years and forward 20 years and will begin to expire in fiscal 2036, with the remainder expiring by 2038. The Company expects to exercise its ability to carryback federal net operating losses to offset taxable income in prior periods. For the net operating losses it expects to carryback, the Company estimated the portion considered refundable and recorded receivables of approximately $22.8 million and $23 million as of September 30, 2019 and 2018 , respectively, as a component of other noncurrent assets on the Consolidated Balance Sheets. Upon filing amended federal income tax returns to carryback its remaining federal net operating losses totaling $24.2 million , the Company will reduce its taxable income in those periods and recapture federal investment tax credits of the same amount that were previously utilized to offset taxable income. In addition, as of September 30, 2019 and 2018 , the Company has an ITC/PTC carryforward of approximately $154.2 million and $121.1 million , respectively, which each have a life of 20 years. When the Company carries back the federal net operating losses noted above, it expects to recapture investment tax credits totaling $24.1 million . These recaptured tax credits are in addition to the $154.2 million and will be carried forward to offset future taxable income. The Company expects to utilize this entire carryforward, which would begin to expire in fiscal 2034. As of September 30, 2019 and 2018 , the Company has state income tax net operating losses of approximately $340.2 million and $578.8 million , respectively. These state net operating losses have varying carry-forward periods dictated by the state in which they were incurred; these state carry-forward periods range from seven to 20 years and would begin to expire in fiscal 2021, with the majority expiring after 2035. The Company expects to utilize this entire carryforward, other than as described below. On February 7, 2019 , Clean Energy Ventures finalized the sale of its remaining wind assets. As a result of the sale, it is more likely than not that certain state net operating loss carryforwards will not be realizable prior to their expiration. As of September 30, 2019 , the Company had a valuation allowance of $4 million related to state net operating loss carryforwards in Montana, Iowa, Kansas and Pennsylvania as of September 30, 2019 and 2018 . This is included as a component of other within the composition of deferred tax assets. The Consolidated Appropriations Act extended the 30 percent ITC for solar property that is under construction on or before December 31, 2019. Projects placed in service after December 31, 2019, may also qualify for a 30 percent federal ITC if five percent or more of the total costs of a solar property are incurred before the end of the applicable year and there are continuous efforts to advance towards completion of the project, based on the IRS guidance around ITC safe harbor determination. 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 . 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 applied a federal statutory tax rate of 24.5 percent during fiscal 2018 and as of October 1, 2018, used the enacted rate of 21 percent . As a result of the changes associated with the Tax Act during fiscal 2018 , the Company recognized a tax benefit of $59.6 million . 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 of those deferred income taxes. These amounts were recorded as a regulatory liability on the 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. These credits were returned to customer accounts in June 2018 . During fiscal 2018 , NJNG credited approximately $17 million to income tax (benefit) provision on the Consolidated Statements of Operations, which includes $14.3 million attributable to the remeasurement of deferred income taxes, $1.8 million 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 September 30, 2019 , the regulatory liability included excess deferred income taxes of $200.4 million , which requires amortization over the remaining life of the utility plant consistent with IRS normalization principles. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | 14. COMMITMENTS AND CONTINGENT LIABILITIES Cash Commitments NJNG has entered into long-term contracts, expiring at various dates through September 2035 , for the supply, storage and transportation of natural gas. These contracts include annual fixed charges of approximately $129.3 million at current contract rates and volumes, which are recoverable through BGSS. For the purpose of securing storage and pipeline capacity, our Energy Services segment 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 September 30, 2019 , for natural gas purchases and future demand fees for the next five fiscal year periods, are as follows: (Thousands) 2020 2021 2022 2023 2024 Thereafter Energy Services: Natural gas purchases $ 266,931 $ 18,809 $ — $ — $ — $ — Storage demand fees 26,043 15,247 11,378 6,804 1,650 935 Pipeline demand fees 78,194 65,875 52,492 28,933 12,963 8,853 Sub-total Energy Services $ 371,168 $ 99,931 $ 63,870 $ 35,737 $ 14,613 $ 9,788 NJNG: Natural gas purchases $ 20,616 $ 30,884 $ 31,775 $ 33,060 $ 34,652 $ 35,748 Storage demand fees 33,938 24,443 16,101 9,442 2,876 5,559 Pipeline demand fees 95,318 107,811 93,925 88,145 64,561 552,407 Sub-total NJNG $ 149,872 $ 163,138 $ 141,801 $ 130,647 $ 102,089 $ 593,714 Total $ 521,040 $ 263,069 $ 205,671 $ 166,384 $ 116,702 $ 603,502 As of September 30, 2019 , the Company’s future minimum lease payments under various operating leases will not be more than $4.7 million annually for the next five years and $54.4 million in the aggregate for all years thereafter. Guarantees As of September 30, 2019 , there were NJR guarantees covering approximately $339 million of Energy Services’ natural gas purchases and demand fee commitments not yet reflected in accounts payable on the Consolidated Balance Sheets. Legal Proceedings Manufactured Gas Plant Remediation NJNG is responsible for the remedial cleanup of certain former 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 NJDEP regulations. NJNG periodically, and at least annually, performs an environmental review of former MGP sites located in Atlantic Highlands, Berkeley, Long Branch, Manchester, Toms River, and Freehold, New Jersey, 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 at the former 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. At the MGP site in Freehold, New Jersey, as we have not yet completed the remedial investigation of the site, the total amount of potential costs of all remedial actions cannot be reasonably estimated at this time. As of September 30, 2019, the estimated total future expenditures will range from approximately $115.9 million to $186.2 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 of $131.1 million on the Consolidated Balance Sheets, based on the most likely amount. On September 27, 2019 , NJNG filed its annual SBC application requesting to recover remediation expenses including an increase in the RAC of approximately $1.4 million annually, to be effective April 1, 2020 . 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 insurance recoveries, if any. In June 2019, NJNG initiated a preliminary assessment of a site in Aberdeen, New Jersey to determine prior ownership and if there were former MGP operations active at the location. The costs associated with preliminary assessment activities are considered immaterial for fiscal 2019 and are included as a component of NJNG’s annual SBC application to recover remediation expenses. NJNG will continue to gather information to further refine and enhance its estimate of potential costs for this site as it becomes available. NJNG recovers its remediation expenditures, including carrying costs, over rolling seven -year periods pursuant to a RAC approved by the BPU. On March 29, 2019 , the BPU approved NJNG's annual SBC filing requesting an increase in the RAC, which increased the annual recovery from $7.1 million to $8.5 million , effective April 1, 2019 . As of September 30, 2019 , $38.4 million of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Consolidated Balance Sheets. NJNG 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 income 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 accruals 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. NJR also discloses contingent matters for which there is a reasonable possibility of a loss. 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 accrued. 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. Stafford Township 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. As of September 30, 2019 , all non-subrogated property damage claims and all of the personal injury claims asserted against the Company and co-defendants as well as all cross-claims have been settled and did not have a material impact on the Company's financial position or results from operations. |
REPORTING SEGMENT AND OTHER OPE
REPORTING SEGMENT AND OTHER OPERATIONS DATA | 12 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
REPORTING SEGMENT AND OTHER OPERATIONS DATA | 15. 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 and retail 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: (Thousands) Fiscal Years Ended September 30, 2019 2018 2017 Operating revenues Natural Gas Distribution External customers $ 710,793 $ 731,865 $ 695,637 Clean Energy Ventures External customers 98,099 71,375 64,394 Energy Services External customers (1) 1,734,553 2,064,477 1,462,365 Intercompany 8,238 48,327 316 Subtotal 2,551,683 2,916,044 2,222,712 Home Services and Other External customers 48,600 47,392 46,221 Intercompany 2,302 2,665 3,370 Eliminations (10,540 ) (50,992 ) (3,686 ) Total $ 2,592,045 $ 2,915,109 $ 2,268,617 Depreciation and amortization Natural Gas Distribution $ 57,980 $ 53,208 $ 49,347 Clean Energy Ventures 32,997 31,877 31,834 Energy Services (2) 118 76 63 Midstream 6 6 6 Subtotal 91,101 85,167 81,250 Home Services and Other 914 780 798 Eliminations (285 ) (246 ) (207 ) Total $ 91,730 $ 85,701 $ 81,841 Interest income (3) Natural Gas Distribution $ 994 $ 614 $ 555 Energy Services 78 240 6 Midstream 4,000 3,374 2,195 Subtotal 5,072 4,228 2,756 Home Services and Other 1,942 1,476 590 Eliminations (5,391 ) (5,090 ) (1,312 ) Total $ 1,623 $ 614 $ 2,034 (1) Includes sales to Canada for the Energy Services segment, which are immaterial. (2) The amortization of acquired wholesale energy contracts is excluded above and is included in gas purchases - nonutility on the Consolidated Statements of Operations. (3) Included in other income, net on the Consolidated Statements of Operations. (Thousands) Fiscal Years Ended September 30, 2019 2018 2017 Interest expense, net of capitalized interest Natural Gas Distribution $ 26,134 $ 25,299 $ 25,818 Clean Energy Ventures 14,846 18,320 16,263 Energy Services 5,205 3,945 2,747 Midstream 2,185 1,667 960 Subtotal 48,370 49,231 45,788 Home Services and Other 1,535 7 410 Eliminations (2,823 ) (2,952 ) (1,312 ) Total $ 47,082 $ 46,286 $ 44,886 Income tax provision (benefit) Natural Gas Distribution $ 9,434 $ (1,910 ) $ 43,485 Clean Energy Ventures (48,921 ) (79,932 ) (31,161 ) Energy Services (1,573 ) 24,996 (4,015 ) Midstream 2,254 (8,548 ) 5,820 Subtotal (38,806 ) (65,394 ) 14,129 Home Services and Other 1,428 11,944 3,857 Eliminations (373 ) (335 ) 357 Total $ (37,751 ) $ (53,785 ) $ 18,343 Equity in earnings of affiliates Midstream $ 15,832 $ 16,165 $ 17,797 Eliminations (2,204 ) (3,157 ) (3,984 ) Total $ 13,628 $ 13,008 $ 13,813 Net financial earnings (loss) Natural Gas Distribution $ 78,062 $ 84,048 $ 86,930 Clean Energy Ventures 77,473 75,849 24,873 Energy Services 2,918 60,378 18,554 Midstream 14,689 24,367 12,857 Subtotal 173,142 244,642 143,214 Home Services and Other 1,911 (3,829 ) 6,811 Eliminations (93 ) (327 ) (633 ) Total $ 174,960 $ 240,486 $ 149,392 Capital expenditures Natural Gas Distribution $ 340,226 $ 254,523 $ 176,249 Clean Energy Ventures 157,828 123,421 149,400 Midstream 20,616 5,431 — Subtotal 518,670 383,375 325,649 Home Services and Other 2,484 1,213 2,434 Total $ 521,154 $ 384,588 $ 328,083 Investments in equity investees Midstream $ 4,102 $ 16,151 $ 27,070 Total $ 4,102 $ 16,151 $ 27,070 The Chief Executive Officer, who uses NFE as a measure of profit or loss in measuring the results of the Company’s reporting segments and operations, is the chief operating decision maker of the Company. A reconciliation of consolidated NFE to consolidated net income is as follows: (Thousands) 2019 2018 2017 Consolidated net financial earnings $ 174,960 $ 240,486 $ 149,392 Less: Unrealized loss (gain) on derivative instruments and related transactions 2,881 26,770 (11,241 ) Tax effect (711 ) (4,512 ) 4,062 Effects of economic hedging related to natural gas inventory 4,309 (22,570 ) 38,470 Tax effect (1,024 ) 7,362 (13,964 ) Consolidated net income $ 169,505 $ 233,436 $ 132,065 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 are 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 fiscal 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 year. The Company also calculates a quarterly tax adjustment based on an estimated annual effective tax rate for NFE purposes. The Company’s assets for the various reporting segments and business operations are detailed below: (Thousands) 2019 2018 2017 Assets at end of period: Natural Gas Distribution $ 3,064,309 $ 2,663,054 $ 2,519,578 Clean Energy Ventures (1) 864,323 865,018 771,340 Energy Services 290,847 396,852 398,277 Midstream 240,955 242,069 232,806 Subtotal 4,460,434 4,166,993 3,922,001 Home Services and Other 104,411 114,732 114,801 Intercompany assets (2) (191,860 ) (138,061 ) (108,295 ) Total $ 4,372,985 $ 4,143,664 $ 3,928,507 (1) Includes assets held for sale of $206.9 million for September 30, 2018. (2) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 16. 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 in 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 September 30, 2019 , Energy Services has entered into transactions with Steckman Ridge for varying terms, all of which expire by October 31, 2020 . NJNG has entered into a 15 -year transportation precedent agreement for committed capacity of 180,000 Dths per day and NJRES entered into a 5 -year, 50,000 Dths per day transportation precedent agreement with PennEast, both to commence when PennEast is placed in service. Demand fees, net of eliminations, associated with Steckman Ridge during the fiscal years ended September 30 , are as follows: (Thousands) 2019 2018 2017 Natural Gas Distribution $ 5,814 $ 5,730 $ 5,590 Energy Services 2,134 2,775 2,750 Total $ 7,948 $ 8,505 $ 8,340 The following table summarizes demand fees payable to Steckman Ridge as of September 30 : (Thousands) 2019 2018 Natural Gas Distribution $ 775 $ 775 Energy Services 15 375 Total $ 790 $ 1,150 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. NJNG retains the right to purchase market-priced gas or fixed-price storage gas from Energy Services. As of September 30, 2019 , NJNG and Energy Services had four asset management agreements with expiration dates ranging from March 31, 2020 through October 31, 2021 . |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | 17. ACQUISITIONS AND DISPOSITIONS Acquisitions Adelphia In October 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. In November 2017, the Company made an initial payment of $10 million towards the base purchase price, which is included in other noncurrent assets on the 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 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 $951,000 which is recognized as a reduction to O&M on the Consolidated Statements of Operations. On February 7, 2019 , Clean Energy Ventures finalized the sale of its remaining wind assets to a subsidiary of Skyline Renewables LLC for a total purchase price of $208.6 million . The transaction generated a pre-tax gain of $645,000 , which was recognized as a reduction to O&M expense on the Consolidated Statements of Operations. Energy Services On February 28, 2018 , NJR sold all of the issued and outstanding shares of capital stock of NJRRS, 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 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 Consolidated Statements of Operations. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS Leaf River On October 11, 2019 , NJR Pipeline Company, an indirect wholly owned subsidiary of NJR, acquired 100 percent of the issued and outstanding limited liability company interests of Leaf River Energy Center LLC for $367.5 million . The purchase price is subject to certain contractual conditions, including customary purchase price adjustments related to the amount of net working capital and transaction expenses. Leaf River Energy Center LLC owns and operates a 32.2 million Dth salt dome natural gas facility, located in southeastern Mississippi. The Company evaluated the acquisition under the guidance of ASU 2017-01, Clarifying the Definition of a Business and concluded that the acquisition did not meet the definition of a business. Accordingly, the purchase will be accounted for as an asset acquisition as almost all of the relative fair value relates to the storage assets acquired. Bridge Facility On October 9, 2019 , NJR entered into a $350 million Bridge Facility, which was used primarily to finance the Leaf River acquisition. The Bridge Facility accrues interest at the LIBOR rate for a 1-month interest period plus 0.875 percent during the first 180 days, and 1.075 percent , after 180 days, which is dependent on the credit rating of NJNG from Fitch and Moody’s. The occurrence of an event of default under the Bridge Facility could result in all loans and other obligations of NJR becoming immediately due and payable and the Bridge Facility being terminated. Loans under the Bridge Facility are required to be prepaid to the extent of new cash proceeds received upon the issuance of equity of NJR, the incurrence of indebtedness by NJR or its subsidiaries, the disposition of assets by NJR or its subsidiaries or other specified events, in each case subject to certain exceptions set forth in the Bridge Facility. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Sep. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 19. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) A summary of financial data for each quarter of fiscal 2019 and 2018 follows. Due to the seasonal nature of the Company’s businesses, quarterly amounts vary significantly during the fiscal year. In the opinion of management, the information furnished reflects all adjustments necessary for a fair presentation of the results of the interim periods. First Second Third Fourth (Thousands, except per share data) Quarter Quarter Quarter Quarter 2019 Operating revenues $ 811,767 $ 866,255 $ 434,942 $ 479,081 Operating income (loss) $ 88,743 $ 77,001 $ (4,019 ) $ (7,790 ) Net income (loss) $ 86,248 $ 73,573 $ (8,402 ) $ 18,086 Earnings (loss) per share (1) Basic $0.97 $0.83 $(0.09) $0.20 Diluted $0.97 $0.82 $(0.09) $0.20 2018 Operating revenues $ 705,305 $ 1,019,043 $ 543,435 $ 647,326 Operating income (loss) (2) $ 76,196 $ 178,744 $ (36,715 ) $ (18,343 ) Net income (loss) $ 123,699 $ 140,266 $ (14,274 ) $ (16,255 ) Earnings (loss) per share (1) Basic $1.42 $1.60 $(0.16) $(0.18) Diluted $1.42 $1.59 $(0.16) $(0.18) (1) The sum of quarterly amounts may not equal the annual amounts due to rounding. (2) Quarterly amounts have been reclassified to conform to the current period presentation due to the adoption of ASU No. 2017-07, an amendment to ASC 715, Compensation - Retirement Benefits. See Note 2. Summary of Significant Accounting Policies . |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Sep. 30, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED SEPTEMBER 30, 2019 , 2018 and 2017 (Thousands) ADDITIONS CLASSIFICATION BEGINNING BALANCE CHARGED TO EXPENSE OTHER (1) ENDING BALANCE 2019 Allowance for doubtful accounts $ 5,704 2,387 (1,943 ) $ 6,148 2018 Allowance for doubtful accounts $ 5,181 2,579 (2,056 ) $ 5,704 2017 Allowance for doubtful accounts $ 4,865 2,023 (1,707 ) $ 5,181 (1) Uncollectible accounts written off, less recoveries and adjustments. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Other financial investments or contractual interests that lack the characteristics of a voting interest entity, which are commonly referred to as variable interest entities, are evaluated by the Company to determine if the entity has the power to direct business activities and, therefore, would be considered a controlling interest that the Company would have to consolidate. Based on those evaluations, NJR has determined that it does not have any investments in variable interest entities as of September 30, 2019 , 2018 and 2017 . Investments in entities over which the Company does not have a controlling financial interest are either accounted for under the equity method or cost method of accounting. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a quarterly basis or more frequently whenever events or changes in circumstances indicate a need, the Company evaluates its estimates, including those related to the calculation of the fair value of derivative instruments, debt, equity method investments, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, long-lived assets, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation. ARO are evaluated as often as needed. The Company’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The Company has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, the Company will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is the Company’s policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is the Company’s policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates. |
Acquisitions | Acquisitions The Company follows the guidance in ASC 805, Business Combinations, for determining the appropriate accounting treatment for acquisitions. ASU No. 2017-01, Clarifying the Definition of a Business , provides an initial fair value screen to determine if substantially all of the fair value of the assets acquired is concentrated in a single asset or group of similar assets. If the initial screening test is not met, the set is considered a business based on whether there are inputs and substantive processes in place. Based on the results of this analysis and conclusion on an acquisition’s classification of a business combination or an asset acquisition, the accounting treatment is derived. If the acquisition is deemed to be a business, the acquisition method of accounting is applied. Identifiable assets acquired and liabilities assumed at the acquisition date are recorded at fair value. If the transaction is deemed to be an asset purchase, the cost accumulation and allocation model is used whereby the assets and liabilities are recorded based on the purchase price and allocated to the individual assets and liabilities based on relative fair values. The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed are based on various assumptions and valuation methodologies requiring considerable management judgment. The most significant variables in these valuations are discount rates and the number of years on which to base the cash flow projections, as well as other assumptions and estimates used to determine the cash inflows and outflows. Management determines discount rates based on the risk inherent in the acquired assets and related cash flows. The valuation of an acquired business is based on available information at the acquisition date and assumptions that are believed to be reasonable. However, a change in facts and circumstances as of the acquisition date can result in subsequent adjustments during the measurement period, but no later than one year from the acquisition date. |
Revenues | Revenues Revenues from the sale of natural gas to NJNG customers are recognized in the period that gas is delivered and consumed by customers, including an estimate for unbilled revenue. NJNG records unbilled revenue for natural gas services. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for gas and the most current tariff rates. Clean Energy Ventures recognizes revenue when SRECs are transferred to counterparties. SRECs are physically delivered through the transfer of certificates as per contractual settlement schedules. Revenues for Energy Services are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur, as noted above. Energy Services also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues. Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. |
Gas Purchases | Gas Purchases NJNG’s tariff includes a component for BGSS, which is designed to allow it to recover the cost of natural gas through rates charged to its customers and is typically revised on an annual basis. As part of computing its BGSS rate, NJNG projects its cost of natural gas, net of supplier refunds, the impact of hedging activities and cost savings created by BGSS incentive programs. NJNG subsequently recovers or credits the difference, if any, of actual costs compared with those included in current rates. Any underrecoveries or overrecoveries are either credited to customers or deferred and, subject to BPU approval, reflected in the BGSS rates in subsequent years. Natural gas purchases at Energy Services are composed of gas costs to be paid upon completion of a variety of transactions, as well as realized gains and losses from settled derivative instruments and unrealized gains and losses on the change in fair value of derivative instruments that have not yet settled. Changes in the fair value of derivatives that economically hedge the forecasted purchases of natural gas are recognized in gas purchases as they occur. |
Demand Fees | Demand Fees For the purpose of securing storage and pipeline capacity in support of their respective businesses, the Energy Services and Natural Gas Distribution segments enter into storage and pipeline capacity contracts, which require the payment of associated demand fees and charges that allow them access to a high priority of service in order to maintain the ability to access storage or pipeline capacity during a fixed time period, which generally ranges from one to 10 years. Many of these demand fees and charges are based on established tariff rates as established and regulated by FERC. These charges represent commitments to pay storage providers and pipeline companies for the priority right to transport and/or store natural gas utilizing their respective assets. The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30: (Millions) 2019 2018 2017 Energy Services $ 120.4 $ 153.0 $ 126.4 Natural Gas Distribution 119.1 92.5 80.2 Total $ 239.5 $ 245.5 $ 206.6 Energy Services expenses demand charges over the term of the service being provided. The Natural Gas Distribution segment’s costs associated with demand charges are included in its weighted average cost of gas. The demand charges are expensed based on NJNG’s BGSS sales and recovered as part of its gas commodity component of its BGSS tariff. |
Operations and Maintenance Expenses | Operations and Maintenance Expenses Operations and maintenance expenses include operations and maintenance salaries and benefits, materials and supplies, usage of vehicles, tools and equipment, payments to contractors, utility plant maintenance, customer service, professional fees and other outside services, insurance expense, accretion of cost of removal for future retirements of utility assets and other administrative expenses and are expensed as incurred. |
Stock Based Compensation | Stock-Based Compensation Stock-based compensation represents costs related to stock-based awards granted to employees and NJR Board of Directors members. NJR recognizes stock-based compensation based upon the estimated fair value of awards. The recognition period for these costs begins at either the applicable service inception date or grant date and continues throughout the requisite service period. The related compensation cost is recognized as O&M expense on the Consolidated Statements of Operations. See Note 10. Stock-Based Compensation for further information. |
Sales Tax Accounting | Sales Tax Accounting As a result of the adoption of ASC 606, Revenue from Contracts with Customers , as of October 1, 2018, the Company excludes from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax on a net basis in operating revenues on the Consolidated Statements of Operations. Prior to October 1, 2018, sales tax was presented in both operating revenues and operating expenses on the Consolidated Statements of Operations. |
Income Taxes | Income Taxes The Company computes income taxes using the asset and liability method, whereby deferred income taxes are generally determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. See Note 13. Income Taxes . In addition, the Company evaluates its tax positions to determine the appropriate accounting and recognition of future obligations associated with unrecognized tax benefits. The Company invests in property that qualifies for federal ITCs and utilizes the ITCs, as allowed, based on the cost and life of the assets. ITCs at NJNG are deferred and amortized as a reduction to the tax provision over the average lives of the related equipment in accordance with regulatory treatment. ITCs at the unregulated subsidiaries of NJR are recognized as a reduction to income tax expense when the property is placed in service. PTCs are recognized as reductions to current federal income tax expense as PTCs are generated through the production activities of the assets. Changes to the federal statutes related to ITCs and PTCs, which have the effect of reducing or eliminating the credits, could have a negative impact on earnings and cash flows. |
Investments in Equity Investees | Investments in Equity Investees The Company accounts for its investments in Steckman Ridge and PennEast using the equity method of accounting where it is not the primary beneficiary, as defined under ASC 810, Consolidation, its respective ownership interests are 50 percent or less and/or it has significant influence over operating and management decisions. The Company’s share of earnings is recognized as equity in earnings of affiliates on the Consolidated Statements of Operations. Equity method investments are reviewed for impairment when changes in facts and circumstances indicate that the current fair value may be less than the asset’s carrying amount. If the Company determines the decline in the value of its equity method investment is other than temporary, an impairment charge is recorded in an amount equal to the excess of the carrying value of the asset over its fair value. |
Property Plant and Equipment | Property Plant and Equipment Regulated property, plant and equipment is stated at original cost. Costs include direct labor, materials and third-party construction contractor costs, AFUDC and certain indirect costs related to equipment and employees engaged in construction. Nonregulated property, plant and equipment is stated at original cost. Costs include direct labor, materials and third-party construction contractor costs and certain indirect costs related to equipment and employees engaged in construction. Upon retirement, the cost of depreciable property, plus removal costs less salvage, is charged to accumulated depreciation with no gain or loss recorded. |
Capitalized and Deferred Interest | Clean Energy Ventures capitalizes interest on the allocation of the costs of debt borrowed for the financing of solar investments. Capitalized amounts are included in nonutility plant and equipment on the Consolidated Balance Sheets. Capitalized and Deferred Interest NJNG’s base rates include the ability to recover AFUDC on its construction work in progress. For all NJNG construction projects, an incremental cost of equity is recoverable during periods when NJNG’s short-term debt balances are lower than its construction work in progress. For more information on AFUDC treatment with respect to certain accelerated infrastructure projects, see Note 4. Regulation - Infrastructure Programs. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash of $1.4 million and $252,000 as of September 30, 2019 and 2018 , respectively, related to escrow balances for utility plant projects, which is recorded in other current and noncurrent assets on the Consolidated Balance Sheets. |
Loans Receivable | Loans Receivable NJNG currently provides loans, with terms ranging from 2 to 10 years, to customers that elect to purchase and install certain energy-efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at net present value on the Consolidated Balance Sheets. The Company recorded $12.4 million and $10.4 million in other current assets and $38.8 million and $39.5 million in other noncurrent assets as of September 30, 2019 and 2018 , respectively, on the Consolidated Balance Sheets, related to the loans. If NJNG determines a loan is impaired, the basis of the loan would be subject to regulatory review for recovery. As of September 30, 2019 and 2018 , an allowance for doubtful accounts for SAVEGREEN loans was not considered necessary. |
Regulatory Assets & Liabilities | Regulatory Assets & Liabilities Under cost-based regulation, regulated utility enterprises generally are permitted to recover their operating expenses and earn a reasonable rate of return on their utility investment. Our Natural Gas Distribution segment maintains its accounts in accordance with the FERC Uniform System of Accounts as prescribed by the BPU and in accordance with the ASC 980, Regulated Operations . As a result of the impact of the ratemaking process and regulatory actions of the BPU, NJNG is required to recognize the economic effects of rate regulation. Accordingly, NJNG capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 4. Regulation for a more detailed description of NJNG’s regulatory assets and liabilities. |
Gas in Storage | Gas in Storage Gas in storage is reflected at average cost on the Consolidated Balance Sheets and represents natural gas and LNG that will be utilized in the ordinary course of business. |
Derivative Instruments | Derivative Instruments The Company accounts for its financial instruments, such as futures, options, foreign exchange contracts and interest rate contracts, as well as its physical commodity contracts related to the purchase and sale of natural gas at Energy Services, as derivatives, and therefore recognizes them at fair value on the Consolidated Balance Sheets. The Company’s unregulated subsidiaries record changes in the fair value of their financial commodity derivatives in gas purchases and changes in the fair value of their physical forward contracts in gas purchases or operating revenues, as appropriate, on the Consolidated Statements of Operations. Ineffective portions of the cash flow hedges are recognized immediately in earnings. The ASC 815, Derivatives and Hedging also provides for a NPNS scope exception for qualifying physical commodity contracts that are intended for purchases and sales during the normal course of business and for which physical delivery is probable. Effective January 1, 2016, the Company prospectively applies this normal scope exception on a case-by-case basis to physical commodity contracts at NJNG and forward SREC contracts at Clean Energy Ventures. When applied, it does not record changes in the fair value of these contracts until the contract settles and the related underlying natural gas or SREC is delivered. Gains and/or losses on NJNG’s derivatives used to economically hedge its regulated natural gas supply obligations, as well as its exposure to interest rate variability, are recoverable through its BGSS, a component of its tariff. Accordingly, the offset to the change in fair value of these derivatives is recorded as a regulatory asset or liability on the Consolidated Balance Sheets. See Note 5. Derivative Instruments for additional details regarding natural gas trading and hedging activities. Fair values of exchange-traded instruments, including futures and swaps, are based on unadjusted, quoted prices in active markets. The Company’s non-exchange-traded financial instruments, foreign currency derivatives, over-the-counter physical commodity contracts at Energy Services and interest rate contracts are valued using observable, quoted prices for similar or identical assets when available. In establishing the fair value of contracts for which a quoted basis price is not available at the measurement date, management utilizes available market data and pricing models to estimate fair values. Fair values are subject to change in the near term and reflect management’s best estimate based on a variety of factors. Estimating fair values of instruments that do not have quoted market prices requires management’s judgment in determining amounts that could reasonably be expected to be received from, or paid to, a third party in settlement of the instruments. These amounts could be materially different from amounts that might be realized in an actual sale transaction. The Company is subject 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 and 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 Consolidated Balance Sheets. For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the Company’s derivative instruments, see Note 6. 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 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 rates 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 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. Energy Services 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. 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 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 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 Consolidated Balance Sheets. |
Assets Held for Sale | Assets Held for Sale The Company classifies an asset as held for sale if there is a commitment to sell the asset, the asset is available for immediate sale, the sale is probable and the sale will be completed within one year. Assets classified as held for sale are measured at the lower of their carrying value or fair value less cost to sell. In March 2018, Clean Energy Ventures committed to a plan to sell its wind assets and expected that the sale would be completed within the next 12 months. Accordingly, the Company classified its wind assets and related liabilities as held for sale on the Consolidated Balance Sheets, which resulted in depreciation expense on wind assets no longer being recorded. |
Software Costs | Software Costs |
Available for Sale Securities | Investments in Equity Securities Investments in equity securities were carried at fair value on the Consolidated Balance Sheets. For the fiscal year ended September 30, 2018, total unrealized gains and losses associated with equity securities were included as a part of accumulated other comprehensive income, a component of common stock equity, and reclassifications of realized gains or losses out of other comprehensive income into earnings were recorded in other income, net on the Consolidated Statements of Operations, based on average cost. On October 1, 2018, the Company adopted ASU No. 2016-01, an amendment to ASC 825, Financial Instruments . As a result, both realized and unrealized gains and losses were recorded in other income, net on the Consolidated Statements of Operations, based on average cost. |
Intangible Assets and Long-Lived Assets | Intangible Assets Finite-lived intangible assets are stated at cost less accumulated amortization. The Company amortizes intangible assets based upon the pattern in which the economic benefits are consumed over the life of the asset unless a pattern cannot be reliably determined, in which case the Company uses a straight-line amortization method. As of September 30, 2019 , intangible assets consist of acquired wholesale natural gas energy contracts and certain internal-use software costs totaling $14.6 million . The wholesale natural gas contracts are being amortized based upon expected cash flows over the respective terms of the agreements. The estimated future amortization expense for the next five years as of September 30, is as follows: (Thousands) 2020 $ 5,011 2021 $ 4,691 2022 $ 2,561 2023 $ 2,271 2024 and thereafter $ 77 Long-lived Assets The Company reviews the recoverability of long-lived assets and finite-lived intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable, such as significant adverse changes in regulation, business climate or market conditions, including prolonged periods of adverse commodity and capacity prices. If there are changes indicating that the carrying value of such assets may not be recoverable, an undiscounted cash flows test is performed. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recognized by reducing the recorded value of the asset to its fair value. Factors that the Company analyzes in determining whether an impairment in its long-lived assets exists include: a significant decrease in the market price of a long-lived asset; a significant adverse change in the extent in which a long-lived asset is being used in its physical condition; legal proceedings or factors; significant business climate changes; accumulations of costs in significant excess of the amounts expected; a current-period operating or cash flow loss combined with a history of such events; and current expectations that more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its estimated useful life. During fiscal years 2019 and 2018 , there were no events or circumstances that indicated that the carrying value of long-lived assets or finite-lived intangibles were not recoverable. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs are capitalized and amortized as interest expense on a basis which approximates the effective interest method over the term of the related debt. Debt issuance costs are presented as a direct deduction from the carrying amount of the related debt. See Note 9. Debt for the total unamortized debt issuance costs that are recorded as a reduction to long-term debt on the Consolidated Balance Sheets. |
Sale-Leasebacks | Sale-Leasebacks NJNG utilizes sale-leaseback arrangements as a financing mechanism to fund certain of its capital expenditures related to natural gas meters, whereby the physical asset is sold concurrent with an agreement to lease the asset back. These agreements include options to renew the lease at the end of the term or repurchase the asset. Proceeds from sale-leaseback transactions are accounted for as financings and are included in long-term debt on the Consolidated Balance Sheets. During fiscal 2019 and 2018 , NJNG received $9.9 million and $7.8 million , respectively, in connection with the sale-leaseback of its natural gas meters with terms ranging from seven to 11 years. In addition, for certain of its commercial solar energy projects, the Company enters into lease agreements that provide for the sale of commercial solar energy assets to third parties and the concurrent leaseback of the assets. For sale-leaseback transactions where the Company has concluded that the terms of the arrangement create a continuing involvement in the asset and the asset is considered integral equipment, the Company uses the financing method to account for the transaction. Under the financing method, the Company recognizes the proceeds received from the lessor that constitute a payment to acquire the solar energy asset as a financing arrangement, which is recorded as a component of debt on the Consolidated Balance Sheets. Clean Energy Ventures received $71.5 million and $32.9 million in proceeds related to the sale of commercial solar assets during fiscal 2018 and 2017 . Clean Energy Ventures simultaneously entered into agreements to lease the assets back over six - to 15 -year terms. The Company continues to operate the solar assets and is responsible for related expenses and entitled to retain the revenue generated from SRECs and energy sales. The ITCs and other tax benefits associated with these solar projects have been transferred to the buyer; however, the lease payments are structured so that Clean Energy Ventures is compensated for the transfer of the related tax incentives. Accordingly, Clean Energy Ventures recognizes the equivalent value of the ITC in other income on the Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease. Clean Energy Ventures did not enter into sale-leaseback arrangements during fiscal 2019 and therefore recognized the full ITC in income tax (benefit) provision on the Consolidated Statements of Operations when the assets were placed in service. |
Environmental Contingencies | Environmental Contingencies Loss contingencies are recorded as liabilities when it is probable a liability has been incurred and the amount of the loss is reasonably estimable in accordance with accounting standards for contingencies. Estimating probable losses requires an analysis of uncertainties that often depend upon judgments about potential actions by third parties. Accruals for loss contingencies are recorded based on an analysis of potential results. With respect to environmental liabilities and related costs, 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’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. 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 income in the period of such determination. See Note 14. Commitments and Contingent Liabilities for more details. |
Pension and Postemployment Plans | Pension and Postemployment Plans The Company has two noncontributory defined pension plans covering eligible employees, including officers. Benefits are based on each employee’s years of service and compensation. The Company’s funding policy is to contribute annually to these plans at least the minimum amount required under the Employee Retirement Income Security Act, as amended, and not more than can be deducted for federal income tax purposes. Plan assets consist of equity securities, fixed-income securities and short-term investments. The Company made no discretionary contributions to the pension plans in fiscal 2019 , 2018 and 2017 . The Company also provides two |
Asset Retirement Obligations | Asset Retirement Obligations The Company recognizes ARO related to the costs associated with cutting and capping NJNG’s main and service gas distribution mains, which is required by New Jersey law when taking such gas distribution mains out of service. The Company also recognizes ARO associated with Clean Energy Ventures’ solar assets when there are decommissioning provisions in lease agreements that require removal of the asset at the end of the lease term. ARO are initially recognized when the legal obligation to retire an asset has been incurred and a reasonable estimate of fair value can be made. The discounted fair value is recognized as an ARO liability with a corresponding amount capitalized as part of the carrying cost of the underlying asset. The obligation is subsequently accreted to the future value of the expected retirement cost and the corresponding asset retirement cost is depreciated over the life of the related asset. Accretion expense associated with Clean Energy Ventures’ ARO is recognized as a component of operations and maintenance expense on the Consolidated Statements of Operations. Accretion amounts associated with NJNG’s ARO are recognized as part of its depreciation expense and the corresponding regulatory asset and liability will be shown gross on the Consolidated Balance Sheets. Estimating future removal costs requires management to make significant judgments because most of the removal obligations span long time frames and removal may be conditioned upon future events. Asset removal technologies are also constantly changing, which makes it difficult to estimate removal costs. Accordingly, inherent in the estimate of ARO are various assumptions including the ultimate settlement date, expected cash outflows, inflation rates, credit-adjusted risk-free rates and consideration of potential outcomes where settlement of the ARO can be conditioned upon events. In the latter case, the Company develops possible retirement scenarios and assigns probabilities based on management’s reasonable judgment and knowledge of industry practice. Accordingly, ARO are subject to change. |
Foreign Currency Transactions | Foreign Currency Transactions The market area of Energy Services includes Canadian delivery points and as a result, Energy Services incurs certain natural gas commodity costs and demand fees denominated in Canadian dollars. Gains or losses that occur as a result of these foreign currency transactions are reported as a component of gas purchases on the Consolidated Statements of Operations. Gains and losses recognized for the fiscal years ended September 30, 2019 , 2018 and 2017 , are considered immaterial. |
Reclassification | Reclassification Certain prior period amounts related to restricted cash on the Consolidated Statements of Cash Flows and compensation costs on the Consolidated Statements of Operations have been reclassified to conform to the current period presentation due to the ASU adoptions listed below. |
Recent Updates to the Accounting Standards Codification | Recently Adopted Updates to the Accounting Standards Codification Revenue In May 2014, the FASB issued ASU No. 2014-09, and added ASC 606, Revenue from Contracts with Customers , to the ASC. ASC 606 supersedes ASC 605, Revenue Recognition , as well as most industry-specific guidance, and prescribes a single, comprehensive revenue recognition model designed to improve financial reporting comparability across entities, industries, jurisdictions and capital markets. The Company adopted the new guidance in the first quarter of fiscal 2019 and applied the new provisions on a modified retrospective basis. The Company recorded a cumulative-effect adjustment of $3.8 million , $2.7 million net of deferred income taxes, to retained earnings at Home Services and Other during the first quarter of fiscal 2019. As of October 1, 2018, NJRHS recognizes contract revenue on a straight-line basis over the term of the contract. Previously, contract revenue was recognized over the term of the service contract based on expected demand for services. The Company elected the practical expedient to exclude from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax on a net basis in operating revenues on the Consolidated Statements of Operations. Prior to adoption, operating revenue and energy taxes and other would have been $45.3 million higher for fiscal 2019 , due to the Company's sales tax presentation. There was no additional impact on the Company’s financial position, results of operations or cash flows. The Company concluded that its tariff-based sales of natural gas are within the scope of the new guidance and the adoption did not result in any modification to the pattern of revenue recognition from such sales. Revenues from derivative instruments, such as those related to the Company’s SREC sales and natural gas purchases and sales will continue to be accounted for under ASC 815 and thus are outside the scope of ASC 606. Additionally, NJNG revenues generated by the CIP have been determined to be alternative revenue programs under ASC 980 and are also outside the scope of ASC 606, as they are deemed to be a contract with the BPU. The Company also evaluated its renewable asset PPA arrangements and determined that no modification to the pattern of revenue recognition of the related electricity, capacity and REC sales was necessary. Revenues from RECs sold as part of a bundled arrangement continue to be recognized in the same period as the related generation. Based on the completion of the Company’s evaluation and assessment of its revenue streams, the Company concluded that the new guidance did not have a material impact on its financial position, results of operations or cash flows. ASC 606 requires expanded disclosures, including the disclosure of performance obligations, disaggregated revenues and contract balances, which is included in Note 3. Revenue . 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 Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a retrospective basis, which did not impact its statement of cash flows. 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 Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a retrospective basis, which did not materially impact its statement of cash flows. Accordingly, the following table provides a reconciliation of cash and cash equivalents and restricted cash reported on the Consolidated Balance Sheets to the total amounts in the Consolidated Statements of Cash Flows as follows: (Thousands) September 30, September 30, September 30, September 30, Balance Sheet Cash and cash equivalents $ 2,676 $ 1,458 $ 2,226 $ 37,546 Restricted cash in other noncurrent assets 1,387 252 243 1,565 Statements of Cash Flow Cash, cash equivalents and restricted cash in the statement of cash flows $ 4,063 $ 1,710 $ 2,469 $ 39,111 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 Company adopted this guidance in the first quarter of fiscal 2019 and applied the new provisions on a modified retrospective basis which resulted in the reclassification of $4.7 million , $3.4 million net of deferred income tax expense, to the opening balance of retained earnings from accumulated other comprehensive income related to investments in equity securities. Subsequent changes to the fair value of the Company’s investments in equity securities are recorded in other income, net in the Consolidated Statement of Operations. 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 Company adopted this guidance in the first quarter of fiscal 2019 and the new provisions 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 framework that is 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 Company adopted this guidance in the first quarter of fiscal 2019, concurrently with ASC 606, and applied the new provisions on a modified retrospective basis through a cumulative effect adjustment of $6.8 million , $5 million net of deferred income tax expense, to the opening balance of retained earnings related to a transfer of a nonfinancial asset that was previously recorded as a deferred gain on the Consolidated Balance Sheets. 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 Company adopted this guidance in the first quarter of fiscal 2019, and applied the new provisions on a retrospective basis for income statement presentation, and is applying the new provisions on a prospective basis for changes to capitalization of costs. Accordingly, the following amounts on the Consolidated Statement of Operations for fiscal 2018 and 2017 have been adjusted: (Thousands) As Previously Reported Effect of Change As Adjusted Fiscal 2018 Statements of Operations Operation and maintenance $ 266,919 $ (3,806 ) $ 263,113 Total operating expenses $ 2,719,033 $ (3,806 ) $ 2,715,227 Operating income $ 196,076 $ 3,806 $ 199,882 Other income (expense), net $ 16,853 $ (3,806 ) $ 13,047 Fiscal 2017 Statements of Operations Operation and maintenance $ 226,356 $ (4,180 ) $ 222,176 Total operating expenses $ 2,101,573 $ (4,180 ) $ 2,097,393 Operating income $ 167,044 $ 4,180 $ 171,224 Other income (expense), net $ 14,437 $ (4,180 ) $ 10,257 The changes related to the costs that will be eligible for capitalization will not have a material impact on the Company's financial position, results of operations or cash flows upon adoption. There was no additional impact to the Company's financial position, results of operations or cash flows. 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 Company adopted this guidance in the first quarter of fiscal 2019, and will apply the new provisions prospectively to awards modified on or after October 1, 2018. There was no impact to the Company's financial position, results of operations or cash flows upon adoption. Intangibles In August 2018, the FASB issued ASU No. 2018-15, an amendment to ASC 350, Intangibles - Goodwill and Other , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company elected to early adopt this guidance in the second quarter of fiscal 2019, as the Company has begun work on key technology replacement and enhancement initiatives and will apply the new provisions on a prospective basis. There was no material impact to the Company's financial position, results of operations or cash flows upon adoption; however as work progresses on the Company's key technology initiatives there may be a material impact in the future. Other Recent Updates to the Accounting Standards Codification Leases In February 2016, the FASB issued ASU No. 2016-02, an amendment to ASC 842, Leases , which, along with other ASU's containing minor amendments and technical corrections, 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 ASU 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 adopted the new guidance on October 1, 2019 and elected this practical expedient. 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. The Company transitioned to the new guidance on a modified retrospective basis and elected this transition method. The Company’s other practical expedient elections include the package of practical expedients whereby the Company was not required to reassess all of its leases identified, lease classifications and initial direct costs associated with leases. The Company also elected to not separate non-lease components from lease components and elected to exclude short-term leases from the recognition requirements of ASC 842. The Company did not elect the portfolio approach for the application of the discount rate and therefore applies a discount rate individually to each lease in its population. The Company completed the review of its contracts which involved identifying and evaluating its lease population. The Company’s operating leases primarily consist of office space, general office equipment and land leases related to solar assets. The Company expects to recognize right-of-use assets and liabilities totaling approximately $60 million to $70 million arising from current operating leases on its statement of financial position beginning October 1, 2019. This estimate does not include the expected right-of-use assets and lease liabilities that will be recorded in connection with the acquisition of Leaf River or Adelphia. The Company has no material arrangements as a lessor at this time. The Company does not expect the amendments to the standard to have an impact on its results of operations or cash flows. Financial Instruments 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 beginning October 1, 2020, with early adoption permitted. The Company is currently evaluating the amendment and all subsequent amendments related to this topic, 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. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, an amendment to ASC 815 , Derivatives and Hedging , which, along with other ASU's containing minor amendments and technical corrections, 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 beginning October 1, 2019, with early adoption permitted. Upon adoption, the transition requirements and elections will be applied to hedging relationships existing on the date of adoption. The Company does not currently apply hedge accounting to any of its risk management activities and thus does not expect the amendments to have any impact on its financial position, results of operations and cash flows upon adoption. In October 2018, the FASB issued ASU No. 2018-16, an amendment to ASC 815, Derivatives and Hedging , which permits the use of the Overnight Index Swap rate based on the Secured Overnight Financing Rate as an additional acceptable U.S. benchmark interest rate for hedge accounting purposes. The guidance is effective for the Company beginning October 1, 2019, with early adoption permitted. The Company does not currently apply hedge accounting to any of its risk management activities and thus does not expect the amendments to have any impact on its financial position, results of operations and cash flows upon adoption. Stock Compensation 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 beginning October 1, 2019, with early adoption permitted. There was no impact to the Company's financial position, results of operations or cash flows upon adoption. Fair Value In August 2018, the FASB issued ASU No. 2018-13, an amendment to ASC 820, Fair Value Measurement , which removes, modifies and adds to certain disclosure requirements of fair value measurements. Disclosure requirements removed include the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. Modifications include considerations around the requirement to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse. The additions include the requirement to disclose changes in unrealized gains and losses for the period in other comprehensive income for recurring Level 3 fair value measurements held and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance is effective for the Company beginning October 1, 2020, with early adoption permitted. Upon adoption, the amendments will be applied on a prospective or retrospective basis depending on the specific amendments’ transition requirements. The Company is currently evaluating the amendments to understand the impact on its financial position, results of operations, cash flows and disclosures upon adoption and will apply the new guidance. Compensation - Retirement Benefits In August 2018, the FASB issued ASU No. 2018-14, an amendment to ASC 715, Compensation - Retirement Benefits , which removes disclosures that no longer are considered cost-beneficial, clarifies the specific requirements of certain disclosures and adds new disclosure requirements identified as relevant. The guidance is effective for the Company beginning October 1, 2021, with early adoption permitted. Upon adoption, the amendments will be applied on a retrospective basis. The Company is continuing to evaluate the amendment to fully understand the impact on the Company's disclosures upon adoption. |
Fair Value Hierarchy | Fair Value Hierarchy The Company 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 includes the following: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets. The Company’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 the Company refers to internally 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. The Company’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). 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 the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies. Financial derivative portfolios of NJNG and Energy Services consist mainly of futures, options and swaps. The Company primarily uses the market approach and its policy is to use actively quoted market prices when available. The principal market for its derivative transactions is the natural gas wholesale market; therefore, the primary sources for its price inputs are CME, NYMEX and ICE. Energy Services uses Platts and Natural Gas Exchange for Canadian delivery points. However, Energy Services also engages in transactions that result in transporting natural gas to delivery points for which there is no actively quoted market price. In most instances, the transportation cost to the final delivery location is not significant to the overall valuation. If required, Energy Services’ policy is to use the best information available to determine fair value based on internal pricing models, which would include estimates extrapolated from broker quotes or other pricing services. The Company also has other financial assets that include listed equities, mutual funds and money market funds for which there are active exchange quotes available. When the Company determines fair values, measurements are adjusted, as needed, for credit risk associated with its counterparties, as well as its own credit risk. The Company determines these adjustments by using historical default probabilities that correspond to the applicable S&P issuer ratings, while also taking into consideration collateral and netting arrangements that serve to mitigate risk. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Demand Charges | The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30: (Millions) 2019 2018 2017 Energy Services $ 120.4 $ 153.0 $ 126.4 Natural Gas Distribution 119.1 92.5 80.2 Total $ 239.5 $ 245.5 $ 206.6 |
Schedule of Property, Plant and Equipment | Property, plant and equipment was comprised of the following as of September 30 : (Thousands) Property Classifications Estimated Useful Lives 2019 2018 Distribution facilities 38 to 74 years $ 2,414,603 $ 2,151,249 Transmission facilities 35 to 56 years 330,912 295,692 Storage facilities 34 to 47 years 79,916 79,470 Solar property 15 to 25 years 879,597 720,562 Midstream property 30 years 28,445 6,747 All other property 5 to 35 years 48,886 50,771 Total property, plant and equipment 3,782,359 3,304,491 Accumulated depreciation and amortization (741,193 ) (653,442 ) Property, plant and equipment, net $ 3,041,166 $ 2,651,049 |
Schedule of Capitalized Amounts Associated with Debt and Equity Component of AFUDC | Capitalized and deferred interest include the following for the fiscal years ended September 30: ($ in thousands) 2019 2018 2017 AFUDC: Debt $ 3,710 $ 1,979 $ 1,311 Equity 6,492 5,531 3,867 Total $ 10,202 $ 7,510 $ 5,178 Weighted average interest rate 6.35 % 5.94 % 6.90 % |
Summary of Gas in Storage | The following table summarizes gas in storage, at average cost by company, as of September 30 : 2019 2018 ($ in thousands) Gas in Storage Bcf Gas in Storage Bcf Energy Services $ 52,390 25.6 $ 90,166 34.1 Natural Gas Distribution 117,413 27.0 94,467 24.9 Total $ 169,803 52.6 $ 184,633 59.0 |
Schedule of 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) September 30, 2018 Assets reclassified as held for sale Assets Sold Other adjustments (1) September 30, 2019 Assets held for sale: Property, plant and equipment - wind equipment, at cost $ 224,356 $ — $ (224,356 ) $ — $ — Property, plant and equipment - accumulated depreciation, wind equipment (18,501 ) — 18,501 $ — — Prepaid and accrued taxes 789 1,747 (1,541 ) $ (995 ) — Other noncurrent assets 261 — (261 ) $ — — $ 206,905 $ 1,747 $ (207,657 ) $ (995 ) $ — Liabilities held for sale: Accounts payable and other (1) $ 186 $ — $ (186 ) $ — $ — Asset retirement obligation 3,996 — (3,996 ) — — $ 4,182 $ — $ (4,182 ) $ — $ — (1) Activity relates to amortization of prepaid and other current assets prior to the sale of the Company’s remaining wind assets in February 2019. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense for the next five years as of September 30, is as follows: (Thousands) 2020 $ 5,011 2021 $ 4,691 2022 $ 2,561 2023 $ 2,271 2024 and thereafter $ 77 |
Changes in Components of Accumulated Other Comprehensive Income, Net | The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects, as of September 30 : (Thousands) Investments in Equity Securities Adjustment to postemployment benefit obligation Total Balance at September 30, 2017 $ 11,044 $ (14,300 ) $ (3,256 ) Other comprehensive income, net of tax Other comprehensive (loss) income, before reclassifications, net of tax of $6,973, $(125), $6,848 (19,245 ) 464 (18,781 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $(858), $(448), $(1,306) 11,647 1,056 (1) 12,703 Net current-period other comprehensive (loss) income, net of tax of $6,115, $(573), $5,542 (7,598 ) 1,520 (6,078 ) Reclassifications of certain income tax effects to retained earnings (2) — (3,276 ) (3,276 ) Balance at September 30, 2018 $ 3,446 $ (16,056 ) $ (12,610 ) Other comprehensive income, net of tax Other comprehensive (loss) income, before reclassifications, net of tax of $0, $6,557, $6,557 — (16,978 ) (16,978 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $0, $(451), $(451) — 1,247 (1) 1,247 Net current-period other comprehensive income, net of tax of $0, $6,106, $6,106 — (15,731 ) (15,731 ) Reclassifications of certain income tax effects to retained earnings (3) (3,446 ) — (3,446 ) Balance at September 30, 2019 $ — $ (31,787 ) $ (31,787 ) (1) Included in the computation of net periodic pension cost, a component of O&M expense on the Consolidated Statements of Operations. For more details, see Note 11. Employee Benefit Plans . (2) Due to the adoption of ASU No. 2018-02, an amendment to ASC 740, Income Taxes . See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. (3) Due to the adoption of ASU No. 2016-01, an amendment to ASC 825, Financial Instruments . See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Accordingly, the following table provides a reconciliation of cash and cash equivalents and restricted cash reported on the Consolidated Balance Sheets to the total amounts in the Consolidated Statements of Cash Flows as follows: (Thousands) September 30, September 30, September 30, September 30, Balance Sheet Cash and cash equivalents $ 2,676 $ 1,458 $ 2,226 $ 37,546 Restricted cash in other noncurrent assets 1,387 252 243 1,565 Statements of Cash Flow Cash, cash equivalents and restricted cash in the statement of cash flows $ 4,063 $ 1,710 $ 2,469 $ 39,111 fiscal 2018 and 2017 have been adjusted: (Thousands) As Previously Reported Effect of Change As Adjusted Fiscal 2018 Statements of Operations Operation and maintenance $ 266,919 $ (3,806 ) $ 263,113 Total operating expenses $ 2,719,033 $ (3,806 ) $ 2,715,227 Operating income $ 196,076 $ 3,806 $ 199,882 Other income (expense), net $ 16,853 $ (3,806 ) $ 13,047 Fiscal 2017 Statements of Operations Operation and maintenance $ 226,356 $ (4,180 ) $ 222,176 Total operating expenses $ 2,101,573 $ (4,180 ) $ 2,097,393 Operating income $ 167,044 $ 4,180 $ 171,224 Other income (expense), net $ 14,437 $ (4,180 ) $ 10,257 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Performance Obligation, Recognition Period | Below is a listing of performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms and the nature of the goods and services being transferred, by reporting segment and other business operations: Revenue Recognized Over Time: Segment Performance Obligation Description Natural Gas Distribution Natural gas utility sales NJNG's performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU. Revenues from the sale of natural gas are recognized in the period that gas is delivered and consumed by customers, including an estimate for quantities consumed but not billed during the period. Payment is due each month for the previous month's deliveries. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the billing period. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects and the most current tariff rates. NJNG is entitled to be compensated for performance completed until service is terminated. Customers may elect to purchase the natural gas commodity from NJNG or may contract separately to purchase natural gas directly from third-party suppliers. As NJNG is acting as an agent on behalf of the third-party supplier, revenue is recorded for the delivery of natural gas to the customer. Clean Energy Ventures Commercial solar and wind electricity Clean Energy Ventures operates wholly-owned solar projects that recognize revenue as electricity is generated and transferred to the customer. The performance obligation is to provide electricity to the customer in accordance with contract terms or the interconnection agreement and is satisfied upon transfer of electricity generated. All wind assets were sold as of February 7, 2019. Revenue is recognized as invoiced and the payment is due each month for the previous month's services. Clean Energy Ventures Residential solar electricity Clean Energy Ventures provides access to residential rooftop and ground-mount solar equipment to customers who then pay the Company a monthly fee. The performance obligation is to provide electricity to the customer based on generation from the underlying residential solar asset and is satisfied upon transfer of electricity generated. Revenue is derived from the contract terms and is recognized as invoiced, with the payment due each month for the previous month's services. Energy Services Wholesale natural gas services The performance obligation of Energy Services is to provide the customer transportation, storage and asset management services on an as-needed basis. Energy Services generates revenue through management fees, demand charges, reservation fees and transportation charges centered around the buying and selling of the natural gas commodity, representing one series of distinct performance obligations. Revenue is recognized based upon the underlying natural gas quantities physically delivered and the customer obtaining control. Energy Services invoices customers on a monthly basis in line with the terms of the contract and based on the services provided. Payment is due each month for the previous month's invoiced services. Home Services and Other Service contracts Home Services enters into service contracts with homeowners to provide maintenance and replacement services of applicable heating, cooling or ventilation equipment. All services provided relate to a distinct performance obligation which is to provide services for the specific equipment over the term of the contract. Revenue is recognized on a straight-line basis over the term of the contract and payment is due upon receipt of the invoice. Revenue Recognized at a Point in Time: Home Services and Other Installations Home Services installs appliances, including but not limited to, furnaces, air conditioning units, boilers and generators, for customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. The transaction price for each installation differs accordingly. Revenue is recognition at a point in time upon completion of the installation, which is when the customer is billed. |
Disaggregation of Revenue | Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the fiscal year ended September 30, 2019 is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Natural gas utility sales $ 680,151 — — — $ 680,151 Wholesale natural gas services — — 31,459 — 31,459 Service contracts — — — 31,499 31,499 Installations and maintenance — — — 19,403 19,403 Electricity sales — 22,121 — — 22,121 Eliminations (1) — — — (2,302 ) (2,302 ) Revenues from contracts with customers 680,151 22,121 31,459 48,600 782,331 Alternative revenue programs 10,364 — — — 10,364 Derivative Instruments 20,278 75,978 1,711,332 — 1,807,588 Eliminations (1) — — (8,238 ) — (8,238 ) Revenues out of scope 30,642 75,978 1,703,094 — 1,809,714 Total operating revenues $ 710,793 98,099 1,734,553 48,600 $ 2,592,045 (1) Consists of transactions between subsidiaries that are eliminated in consolidation. Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the fiscal year ended September 30, 2019 is as follows: Regulated Unregulated (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Residential $ 440,787 9,003 — 47,655 $ 497,445 Commercial and industrial 171,357 13,118 31,459 945 216,879 Firm transportation 61,370 — — — 61,370 Interruptible and off-tariff 6,637 — — — 6,637 Revenues out of scope 30,642 75,978 1,703,094 — 1,809,714 Total operating revenues $ 710,793 98,099 1,734,553 48,600 $ 2,592,045 |
Expected Timing of Performance | The timing of revenue recognition, customer billings and cash collections resulting in accounts receivables, billed and unbilled, and customers’ credit balances and deposits on the Consolidated Balance Sheets during the fiscal year ended September 30, 2019 are as follows: Customer Accounts Receivable Customers' Credit (Thousands) Billed Unbilled Balances and Deposits Balance as of October 1, 2018 $ 205,490 $ 7,199 $ 27,325 Decrease (66,227 ) (689 ) (209 ) Balance as of September 30, 2019 $ 139,263 $ 6,510 $ 27,116 |
Performance Obligation, in Excess of Billings | The following table provides information about receivables and revenue earned on contracts in progress in excess of billings, which are included within accounts receivable, billed and unbilled, and customers’ credit balances and deposits, respectively, on the Consolidated Balance Sheets as of September 30, 2019 : (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Home Services and Other Total Customer accounts receivable Billed $ 36,302 3,233 97,301 2,427 $ 139,263 Unbilled 6,510 — — — 6,510 Customers' credit balances and deposits (27,114 ) — — (2 ) (27,116 ) Total $ 15,698 3,233 97,301 2,425 $ 118,657 |
REGULATION (Tables)
REGULATION (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | Regulatory assets and liabilities included on the Consolidated Balance Sheets as of September 30, are composed of the following: (Thousands) 2019 2018 Regulatory assets-current New Jersey Clean Energy Program $ 15,468 $ 14,052 Underrecovered gas costs 9,506 4,137 Derivatives at fair value, net 4,526 108 Conservation Incentive Program 3,371 — Total current regulatory assets $ 32,871 $ 18,297 Regulatory assets-noncurrent Environmental remediation costs: Expended, net of recoveries $ 38,351 $ 33,017 Liability for future expenditures 131,080 130,800 Deferred income taxes 19,631 17,225 Derivatives at fair value, net 486 — SAVEGREEN 10,201 8,636 Postemployment and other benefit costs 212,461 136,716 Deferred storm damage costs 8,687 10,858 Cost of removal 65,660 22,339 Other noncurrent regulatory assets 10,080 9,001 Total noncurrent regulatory assets $ 496,637 $ 368,592 Regulatory liability-current Conservation Incentive Program $ — $ 6,994 Derivatives at fair value, net — 1,191 Total current regulatory liabilities $ — $ 8,185 Regulatory liabilities-noncurrent Tax Act impact (1) $ 200,417 $ 205,410 New Jersey Clean Energy Program 197 1,902 Derivatives at fair value, net — 123 Other noncurrent regulatory liabilities 1,821 1,704 Total noncurrent regulatory liabilities $ 202,435 $ 209,139 (1) Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. |
Schedule of Regulatory Liabilities | Regulatory assets and liabilities included on the Consolidated Balance Sheets as of September 30, are composed of the following: (Thousands) 2019 2018 Regulatory assets-current New Jersey Clean Energy Program $ 15,468 $ 14,052 Underrecovered gas costs 9,506 4,137 Derivatives at fair value, net 4,526 108 Conservation Incentive Program 3,371 — Total current regulatory assets $ 32,871 $ 18,297 Regulatory assets-noncurrent Environmental remediation costs: Expended, net of recoveries $ 38,351 $ 33,017 Liability for future expenditures 131,080 130,800 Deferred income taxes 19,631 17,225 Derivatives at fair value, net 486 — SAVEGREEN 10,201 8,636 Postemployment and other benefit costs 212,461 136,716 Deferred storm damage costs 8,687 10,858 Cost of removal 65,660 22,339 Other noncurrent regulatory assets 10,080 9,001 Total noncurrent regulatory assets $ 496,637 $ 368,592 Regulatory liability-current Conservation Incentive Program $ — $ 6,994 Derivatives at fair value, net — 1,191 Total current regulatory liabilities $ — $ 8,185 Regulatory liabilities-noncurrent Tax Act impact (1) $ 200,417 $ 205,410 New Jersey Clean Energy Program 197 1,902 Derivatives at fair value, net — 123 Other noncurrent regulatory liabilities 1,821 1,704 Total noncurrent regulatory liabilities $ 202,435 $ 209,139 (1) Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Assets and Liabilities | The following table reflects the fair value of the Company’s derivative assets and liabilities recognized on the Consolidated Balance Sheets as of September 30 : Fair Value 2019 2018 (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 $ 67 $ 245 $ 85 $ 192 Financial commodity contracts Derivatives - current 382 570 94 — Energy Services: Physical commodity contracts Derivatives - current 6,847 27,540 7,667 18,158 Derivatives - noncurrent 1,710 12,641 3,930 11,316 Financial commodity contracts Derivatives - current 17,806 29,057 19,169 28,176 Derivatives - noncurrent 5,716 6,105 6,630 11,548 Foreign currency contracts Derivatives - current 1 211 — 126 Derivatives - noncurrent — 75 — 118 Home Services and Other: Interest rate contracts Derivatives - current — — 381 — Total fair value of derivatives $ 32,529 $ 76,444 $ 37,956 $ 69,634 |
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 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 September 30, 2019: Derivative assets: Energy Services Physical commodity contracts $ 8,557 $ (2,906 ) $ (200 ) $ 5,451 Financial commodity contracts 23,522 (19,646 ) — 3,876 Foreign currency contracts 1 (1 ) — — Total Energy Services $ 32,080 $ (22,553 ) $ (200 ) $ 9,327 Natural Gas Distribution Physical commodity contracts $ 67 $ (9 ) $ — $ 58 Financial commodity contracts 382 (382 ) — — Total Natural Gas Distribution $ 449 $ (391 ) $ — $ 58 Derivative liabilities: Energy Services Physical commodity contracts $ 40,181 $ (2,906 ) $ — $ 37,275 Financial commodity contracts 35,162 (19,646 ) (15,516 ) — Foreign currency contracts 286 (1 ) — 285 Total Energy Services $ 75,629 $ (22,553 ) $ (15,516 ) $ 37,560 Natural Gas Distribution Physical commodity contracts $ 245 $ (9 ) $ — $ 236 Financial commodity contracts 570 (382 ) (188 ) — Total Natural Gas Distribution $ 815 $ (391 ) $ (188 ) $ 236 As of September 30, 2018: Derivative assets: Energy Services Physical commodity contracts $ 11,597 $ (3,944 ) $ (200 ) $ 7,453 Financial commodity contracts 25,799 (18,775 ) — 7,024 Total Energy Services $ 37,396 $ (22,719 ) $ (200 ) $ 14,477 Natural Gas Distribution Physical commodity contracts $ 85 $ (3 ) $ — $ 82 Financial commodity contracts 94 — (94 ) — Total Natural Gas Distribution $ 179 $ (3 ) $ (94 ) $ 82 Home Services and Other Interest rate contracts $ 381 $ — $ — $ 381 Total Home Services and Other $ 381 $ — $ — $ 381 Derivative liabilities: Energy Services Physical commodity contracts $ 29,474 $ (3,944 ) $ — $ 25,530 Financial commodity contracts 39,724 (18,775 ) (20,949 ) — Foreign currency contracts 244 — — 244 Total Energy Services $ 69,442 $ (22,719 ) $ (20,949 ) $ 25,774 Natural Gas Distribution Physical commodity contracts $ 192 $ (3 ) $ — $ 189 Total Natural Gas Distribution $ 192 $ (3 ) $ — $ 189 (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 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 September 30, 2019: Derivative assets: Energy Services Physical commodity contracts $ 8,557 $ (2,906 ) $ (200 ) $ 5,451 Financial commodity contracts 23,522 (19,646 ) — 3,876 Foreign currency contracts 1 (1 ) — — Total Energy Services $ 32,080 $ (22,553 ) $ (200 ) $ 9,327 Natural Gas Distribution Physical commodity contracts $ 67 $ (9 ) $ — $ 58 Financial commodity contracts 382 (382 ) — — Total Natural Gas Distribution $ 449 $ (391 ) $ — $ 58 Derivative liabilities: Energy Services Physical commodity contracts $ 40,181 $ (2,906 ) $ — $ 37,275 Financial commodity contracts 35,162 (19,646 ) (15,516 ) — Foreign currency contracts 286 (1 ) — 285 Total Energy Services $ 75,629 $ (22,553 ) $ (15,516 ) $ 37,560 Natural Gas Distribution Physical commodity contracts $ 245 $ (9 ) $ — $ 236 Financial commodity contracts 570 (382 ) (188 ) — Total Natural Gas Distribution $ 815 $ (391 ) $ (188 ) $ 236 As of September 30, 2018: Derivative assets: Energy Services Physical commodity contracts $ 11,597 $ (3,944 ) $ (200 ) $ 7,453 Financial commodity contracts 25,799 (18,775 ) — 7,024 Total Energy Services $ 37,396 $ (22,719 ) $ (200 ) $ 14,477 Natural Gas Distribution Physical commodity contracts $ 85 $ (3 ) $ — $ 82 Financial commodity contracts 94 — (94 ) — Total Natural Gas Distribution $ 179 $ (3 ) $ (94 ) $ 82 Home Services and Other Interest rate contracts $ 381 $ — $ — $ 381 Total Home Services and Other $ 381 $ — $ — $ 381 Derivative liabilities: Energy Services Physical commodity contracts $ 29,474 $ (3,944 ) $ — $ 25,530 Financial commodity contracts 39,724 (18,775 ) (20,949 ) — Foreign currency contracts 244 — — 244 Total Energy Services $ 69,442 $ (22,719 ) $ (20,949 ) $ 25,774 Natural Gas Distribution Physical commodity contracts $ 192 $ (3 ) $ — $ 189 Total Natural Gas Distribution $ 192 $ (3 ) $ — $ 189 (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 the Consolidated Statements of Operations | The following table reflects the effect of derivative instruments on the Consolidated Statements of Operations as of September 30 : (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized in income on derivatives Derivatives not designated as hedging instruments: 2019 2018 2017 Energy Services: Physical commodity contracts Operating revenues $ (5,732 ) $ (9,311 ) $ 8,912 Physical commodity contracts Gas purchases (521 ) (197 ) (27,461 ) Financial commodity contracts Gas purchases (643 ) (24,622 ) 26,563 Foreign currency contracts Gas purchases (283 ) (379 ) 41 Home Services and Other: Interest rate contracts Interest expense (233 ) 334 — Total unrealized and realized (losses) gains $ (7,412 ) $ (34,175 ) $ 8,055 |
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI | The following table reflects the gains (losses) associated with NJNG’s derivative instruments as of September 30 : (Thousands) 2019 2018 2017 Natural Gas Distribution: Physical commodity contracts $ 5,926 $ 1,232 $ (12,303 ) Financial commodity contracts (7,700 ) 1,844 5,595 Interest rate contracts — 8,467 14,606 Total unrealized and realized (losses) gains $ (1,774 ) $ 11,543 $ 7,898 |
Schedule of Outstanding Long (Short) Derivatives | NJNG and Energy Services had the following outstanding long (short) derivatives as of September 30 : Volume (Bcf) 2019 2018 Natural Gas Distribution Futures 27.6 27.9 Physical 11.6 23.1 Energy Services Futures (29.6 ) (7.0 ) Physical 44.5 51.2 |
Schedule of Broker Margin Accounts by Company | The balances as of September 30 , by segment, are as follows: (Thousands) Balance Sheet Location 2019 2018 Natural Gas Distribution Restricted broker margin accounts $ 1,982 $ 2,038 Energy Services Restricted broker margin accounts $ 71,741 $ 51,681 |
Summary of Gross Credit Exposures | The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of September 30, 2019 . 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 $ 141,930 Noninvestment grade 17,997 Internally-rated investment grade 27,948 Internally-rated noninvestment grade 29,324 Total $ 217,199 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value of Long-term Debt | As of September 30, 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 (1) : (Thousands) 2019 2018 NJNG Carrying value $ 892,845 $ 672,045 Fair market value $ 984,129 $ 669,162 NJR Carrying value $ 550,000 $ 500,000 Fair market value $ 584,735 $ 488,889 (1) See Note 9. Debt f or a reconciliation to long-term and short-term debt . |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Thousands) (Level 1) (Level 2) (Level 3) Total As of September 30, 2019: Assets Physical commodity contracts $ — $ 8,624 $ — $ 8,624 Financial commodity contracts 20,028 3,876 — 23,904 Financial commodity contracts - foreign exchange — 1 — 1 Other (1) 1,706 — — 1,706 Total assets at fair value $ 21,734 $ 12,501 $ — $ 34,235 Liabilities Physical commodity contracts $ — $ 40,426 $ — $ 40,426 Financial commodity contracts 35,732 — — 35,732 Financial commodity contracts - foreign exchange — 286 — 286 Total liabilities at fair value $ 35,732 $ 40,712 $ — $ 76,444 As of September 30, 2018: Assets Physical commodity contracts $ — $ 11,682 $ — $ 11,682 Financial commodity contracts 18,868 7,025 — 25,893 Interest rate contract — 381 — 381 Available for sale equity securities 32,917 — — 32,917 Other (1) 1,217 — — 1,217 Total assets at fair value $ 53,002 $ 19,088 $ — $ 72,090 Liabilities Physical commodity contracts $ — $ 29,666 $ — $ 29,666 Financial commodity contracts 39,724 — — 39,724 Financial commodity contracts - foreign exchange — 244 — 244 Total liabilities at fair value $ 39,724 $ 29,910 $ — $ 69,634 (1) Includes money market funds. |
INVESTMENTS IN EQUITY INVESTE_2
INVESTMENTS IN EQUITY INVESTEES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | As of September 30 , the Company’s investments in equity method investees includes the following: (Thousands) 2019 2018 Steckman Ridge (1) $ 114,428 $ 117,001 PennEast 85,840 73,865 Total $ 200,268 $ 190,866 (1) Includes loans with a total outstanding principal balance of $70.4 million for both fiscal 2019 and 2018 , which accrue interest at a variable rate that resets quarterly and are due October 1, 2023 . |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table presents the calculation of the Company’s basic and diluted earnings per share for the fiscal years ended September 30 : (Thousands, except per share amounts) 2019 2018 2017 Net income, as reported $ 169,505 $ 233,436 $ 132,065 Basic earnings per share Weighted average shares of common stock outstanding-basic 89,242 87,689 86,321 Basic earnings per common share $1.90 $2.66 $1.53 Diluted earnings per share Weighted average shares of common stock outstanding-basic 89,242 87,689 86,321 Incremental shares (1) 374 626 823 Weighted average shares of common stock outstanding-diluted 89,616 88,315 87,144 Diluted earnings per common share (2) $1.89 $2.64 $1.52 (1) Incremental shares consist primarily of unvested stock awards and performance units. (2) There were no anti-dilutive shares excluded from the calculation of diluted earnings per share for fiscal 2019 , 2018 and 2017 . |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The following table presents the long-term debt of the Company as of September 30 : (Thousands) 2019 2018 NJNG First mortgage bonds: Maturity date: 3.00% Series OO August 1, 2041 46,500 46,500 3.15% Series PP April 15, 2028 50,000 50,000 3.58% Series QQ March 13, 2024 70,000 70,000 4.61% Series RR March 13, 2044 55,000 55,000 2.82% Series SS April 15, 2025 50,000 50,000 3.66% Series TT April 15, 2045 100,000 100,000 3.63% Series UU June 21, 2046 125,000 125,000 4.01% Series VV May 11, 2048 125,000 125,000 3.50% Series WW April 1, 2042 10,300 — 3.38% Series XX April 1, 2038 10,500 — 2.45% Series YY April 1, 2059 15,000 — 3.76% Series ZZ July 17, 2049 100,000 — 3.86% Series AAA July 17, 2059 85,000 — 2.75% Series BBB (formally MM) August 1, 2039 9,545 9,545 3.00% Series CCC (formally NN) August 1, 2043 41,000 41,000 Capital lease obligation-buildings June 1, 2021 5,637 8,749 Capital lease obligation-meters Various dates 29,744 27,188 Less: Debt issuance costs (9,027 ) (6,515 ) Less: Current maturities of long-term debt (10,420 ) (9,502 ) Total NJNG long-term debt 908,779 691,965 NJR 3.25% Unsecured senior notes September 17, 2022 50,000 50,000 3.48% Unsecured senior notes November 7, 2024 100,000 100,000 3.20% Unsecured senior notes August 18, 2023 50,000 50,000 3.54% Unsecured senior notes August 18, 2026 100,000 100,000 3.96% Unsecured senior notes June 8, 2028 100,000 100,000 3.29% Unsecured senior notes July 17, 2029 150,000 — Variable Term loan August 16, 2019 — 100,000 Less: Debt issuance costs (2,004 ) (1,136 ) Less: Current maturities of long-term debt — (100,000 ) Total NJR long-term debt 547,996 398,864 Clean Energy Ventures Solar asset financing obligation Various dates 91,401 103,923 Less: Current maturities of long-term debt (10,999 ) (14,133 ) Total Clean Energy Ventures long-term debt 80,402 89,790 Total long-term debt $ 1,537,177 $ 1,180,619 |
Schedule of Long-term Debt Redemption Requirements | Annual long-term debt redemption requirements, excluding capital leases, debt issuance costs and solar asset financing obligations, as of September 30 , are as follows: (Thousands) NJNG NJR 2020 $ — $ — 2021 $ — $ — 2022 $ — $ 50,000 2023 $ — $ 50,000 2024 $ 70,000 $ 100,000 Thereafter $ 822,845 $ 350,000 |
Schedule of Contractual Commitments for Capital Lease Payments | Contractual commitments for capital lease payments, as of the fiscal years ended September 30, are as follows: (Thousands) Lease Payments 2020 $ 11,707 2021 6,603 2022 7,494 2023 3,995 2024 4,652 Thereafter 4,173 Subtotal 38,624 Less: Interest component (3,243 ) Total $ 35,381 Contractual commitments for solar sale-leaseback lease payments, as of the fiscal years ended September 30, are as follows: (Thousands) Lease Payments 2020 $ 7,830 2021 7,803 2022 7,802 2023 7,878 2024 7,359 Thereafter 30,945 Subtotal 69,617 Less: Interest component (22,971 ) Total $ 46,646 |
Summary of Short-Term Bank Facilities | A summary of NJR’s and NJNG’s short-term bank facilities as of September 30, are as follows: (Thousands) 2019 2018 NJR Bank revolving credit facilities: (1) $ 425,000 $ 425,000 Notes outstanding at end of period $ 25,450 $ 87,950 Weighted average interest rate at end of period 3.04 % 3.07 % Amount available at end of period (2) $ 394,800 $ 322,144 NJNG Bank revolving credit facilities: (3) $ 250,000 $ 250,000 Commercial paper outstanding at end of period $ — $ 64,000 Weighted average interest rate at end of period — % 2.18 % Amount available at end of period (4) $ 249,269 $ 185,269 (1) Committed credit facilities, which require commitment fees of .075 percent on the unused amounts. (2) Letters of credit outstanding total $4.8 million and $14.9 million as of September 30, 2019 and 2018 , respectively, which reduces amount available by the same amount. (3) Committed credit facilities, which require commitment fees of .075 percent on the unused amounts. (4) Letters of credit outstanding total $731,000 as of September 30, 2019 and 2018 , which reduces amount available by the same amount. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-based Compensation Expense Recognized | The following table summarizes all stock-based compensation expense recognized during the following fiscal years: (Thousands) 2019 2018 2017 Stock-based compensation expense: Performance share awards $ 5,804 $ 3,526 $ 2,614 Restricted and non-restricted stock 2,492 2,191 1,732 Deferred retention stock 1,500 7,128 1,461 Compensation expense included in operation and maintenance expense 9,796 12,845 5,807 Income tax benefit (1) (2,848 ) (3,734 ) (2,372 ) Total, net of tax $ 6,948 $ 9,111 $ 3,435 (1) Excludes additional tax benefit related to delivered shares of $1.3 million , $3 million and $1.3 million as of September 30, 2019 , 2018 and 2017 , respectively. |
Summary of Performance Share Activity | The following table summarizes the performance share activity under the stock award and incentive plans for the past three fiscal years: Shares (1) Weighted Average Grant Date Fair Value Total Fair Value of Vested Shares (in Thousands) Non-vested and outstanding at September 30, 2016 179,916 $27.47 — Granted 96,507 $33.57 — Vested (2) (95,407 ) $28.88 $ 4,179 Cancelled/forfeited (24,429 ) $29.14 — Non-vested and outstanding at September 30, 2017 156,587 $30.12 — Granted 91,177 $44.67 — Vested (3) (100,146 ) $29.49 $ 4,714 Cancelled/forfeited (2,442 ) $31.45 — Non-vested and outstanding at September 30, 2018 145,176 $39.67 — Granted 100,262 $47.98 — Vested (4) (103,009 ) $38.52 $ 4,622 Cancelled/forfeited (11,920 ) $44.34 — Non-vested and outstanding at September 30, 2019 130,509 $46.53 — (1) The number of common shares issued related to certain performance shares may range from zero to 150 percent of the number of shares shown in the table above based on the Company’s achievement of performance goals . (2) As certified by the Company’s Leadership and Compensation Committee on November 14, 2017 , the number of common shares related to performance shares earned was 108.44 percent , or 39,595 shares, the number of common shares earned related to NFE performance was 119 percent or 36,498 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100 percent or 28,223 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100 percent . (3) As certified by the Company’s Leadership and Compensation Committee on November 13, 2018 , the number of common shares earned related to TSR performance was 99 percent or 38,660 shares, the number of common shares earned related to NFE performance was 121 percent or 39,694 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100 percent or 36,998 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100 percent . (4) As certified by the Company’s Leadership and Compensation Committee on November 12, 2019 , the number of common shares earned related to TSR performance was 119 percent or 43,641 shares, the number of common shares earned related to NFE performance was 117 percent or 26,413 shares and the number of common shares earned related to Performance Based Restricted Stock was 100 percent or 24,468 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100 percent . |
Summary of Restricted Stock Activity | The following table summarizes the restricted stock activity under the stock award and incentive plans for the past three fiscal years: Shares Weighted Average Grant Date Fair Value Total Fair Value of Vested Shares (in Thousands) Non-vested and outstanding at September 30, 2016 73,071 $29.09 — Granted 28,734 $35.79 — Vested (38,752 ) $28.92 $ 1,344 Cancelled/forfeited (11,899 ) $31.56 — Non-vested and outstanding at September 30, 2017 51,154 $32.40 — Granted 27,949 $45.00 — Vested (33,815 ) $31.23 $ 1,438 Cancelled/forfeited (1,120 ) $33.54 — Non-vested and outstanding at September 30, 2018 44,168 $41.24 — Granted 35,284 $48.24 — Vested (20,748 ) $39.26 $ 935 Cancelled/forfeited (548 ) $42.96 — Non-vested and outstanding at September 30, 2019 58,156 $46.18 — |
Summary of Deferred Retention Stock Award | The following table summarizes the deferred retention stock award under the stock award and incentive plans for the past three fiscal years: Shares Weighted Average Grant Date Fair Value Total Fair Value of Vested Shares (in Thousands) Outstanding at September 30, 2016 662,479 $29.06 — Granted/Vested 63,977 $35.64 — Delivered (53,878 ) $23.11 $ 1,774 Outstanding at September 30, 2017 672,578 $29.54 — Granted/Vested 24,167 $45.00 — Delivered (452,694 ) $29.42 $ 19,581 Forfeited (1,969 ) $35.56 Outstanding at September 30, 2018 242,082 $32.99 — Granted/Vested 167,407 $47.95 — Delivered (158,733 ) $30.32 $ 7,145 Forfeited (7,195 ) $44.41 — Outstanding at September 30, 2019 243,561 $44.67 — |
Schedule of Nonemployee Director Stock Award Plan Activity | The following summarizes non-employee director share awards for the past three fiscal years: 2019 2018 2017 Shares granted 26,165 (1) 26,524 27,972 Weighted average grant date fair value $44.80 $39.85 $35.59 (1) $311,000 of expense remains as of September 30, 2019 , to be recognized through December 31, 2019 . |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Summary of Changes in Funded Status of Plans and Liabilities Recognized | The following summarizes the changes in the funded status of the plans and the related liabilities recognized on the Consolidated Balance Sheets as of September 30 : Pension (1) OPEB (Thousands) 2019 2018 2019 2018 Change in Benefit Obligation Benefit obligation at beginning of year $ 298,575 $ 297,835 $ 196,785 $ 175,090 Service cost 7,381 8,139 4,404 4,607 Interest cost 12,173 10,493 8,324 6,365 Plan participants’ contributions (2) 43 45 210 161 Special termination benefits (3) — 3,730 — 490 Actuarial loss (gain) 52,549 (12,846 ) 54,700 15,145 Benefits paid, net of retiree subsidies received (10,244 ) (8,821 ) (4,420 ) (5,073 ) Benefit obligation at end of year $ 360,477 $ 298,575 $ 260,003 $ 196,785 Change in plan assets Fair value of plan assets at beginning of year $ 279,410 $ 271,743 $ 77,980 $ 71,534 Actual return on plan assets 19,194 16,306 2,499 5,284 Employer contributions 231 137 7,926 6,222 Benefits paid, net of plan participants’ contributions (2) (10,201 ) (8,776 ) (4,479 ) (5,060 ) Fair value of plan assets at end of year $ 288,634 $ 279,410 $ 83,926 $ 77,980 Funded status $ (71,843 ) $ (19,165 ) $ (176,077 ) $ (118,805 ) Amounts recognized on Consolidated Balance Sheets Postemployment employee (liability) Current $ (603 ) $ (294 ) $ (800 ) $ (669 ) Noncurrent (71,240 ) (18,871 ) (175,277 ) (118,136 ) Total $ (71,843 ) $ (19,165 ) $ (176,077 ) $ (118,805 ) (1) Includes the Company’s PEP. (2) Prior to July 1, 1998, employees were eligible to elect an additional participant contribution to enhance their benefits and contributions made during the periods were insignificant. (3) Related to the voluntary early retirement program offered during fiscal 2018, as previously discussed. |
Summary of Regulatory Assets and Accumulated Other Comprehensive Income | The following table summarizes the amounts recognized in regulatory assets and accumulated other comprehensive income as of September 30 : Regulatory Assets Accumulated Other Comprehensive Income (Loss) Pension OPEB Pension OPEB Balance at September 30, 2017 $ 78,605 $ 60,460 $ 19,415 $ 4,967 Amounts arising during the period: Net actuarial (gain) loss (6,090 ) 12,378 (3,422 ) 2,834 Amounts amortized to net periodic costs: Net actuarial (loss) (6,177 ) (4,464 ) (1,359 ) (196 ) Prior service (cost) credit (105 ) 311 (1 ) 54 Balance at September 30, 2018 $ 66,233 $ 68,685 $ 14,633 $ 7,659 Amounts arising during the period: Net actuarial loss 38,137 48,452 14,271 9,264 Amounts amortized to net periodic costs: Net actuarial (loss) (4,662 ) (5,820 ) (1,103 ) (648 ) Prior service (cost) credit (102 ) 312 — 53 Balance at September 30, 2019 $ 99,606 $ 111,629 $ 27,801 $ 16,328 The amounts in regulatory assets and accumulated other comprehensive income not yet recognized as components of net periodic benefit cost as of September 30 are: Regulatory Assets Accumulated Other Comprehensive Income (Loss) Pension OPEB Pension OPEB (Thousands) 2019 2018 2019 2018 2019 2018 2019 2018 Net actuarial loss $ 99,139 $ 65,664 $ 112,109 $ 69,477 $ 27,801 $ 14,633 $ 16,367 $ 7,750 Prior service cost (credit) 467 569 (480 ) (792 ) — — (39 ) (91 ) Total $ 99,606 $ 66,233 $ 111,629 $ 68,685 $ 27,801 $ 14,633 $ 16,328 $ 7,659 |
Schedule of Amounts Expected to be Recognized as Components of Net Periodic Benefit Cost | Amounts included in regulatory assets and accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost in fiscal 2020 are as follows: Regulatory Assets Accumulated Other Comprehensive Income (Loss) (Thousands) Pension OPEB Pension OPEB Net actuarial loss $ 8,470 $ 10,055 $ 2,514 $ 1,407 Prior service cost (credit) 102 (182 ) — (15 ) Total $ 8,572 $ 9,873 $ 2,514 $ 1,392 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The accumulated benefit obligation for the pension plans, including the PEP, exceeded the fair value of plan assets. The projected benefit and accumulated benefit obligations and the fair value of plan assets as of September 30, are as follows: Pension (Thousands) 2019 2018 Projected benefit obligation $ 360,477 $ 298,575 Accumulated benefit obligation $ 319,527 $ 263,279 Fair value of plan assets $ 288,634 $ 279,410 |
Components of Net Periodic Cost | The components of the net periodic cost for pension benefits, including the Company’s PEP, and OPEB costs (principally health care and life insurance) for employees and covered dependents for fiscal years ended September 30, are as follows: Pension OPEB (Thousands) 2019 2018 2017 2019 2018 2017 Service cost $ 7,381 $ 8,139 $ 8,347 $ 4,404 $ 4,607 $ 4,380 Interest cost 12,173 10,493 9,771 8,324 6,365 5,545 Expected return on plan assets (19,054 ) (19,639 ) (19,313 ) (5,515 ) (5,352 ) (4,767 ) Recognized actuarial loss 5,765 7,537 8,827 6,466 4,660 4,370 Prior service cost (credit) amortization 102 106 111 (365 ) (365 ) (365 ) Net periodic benefit cost $ 6,367 $ 6,636 $ 7,743 $ 13,314 $ 9,915 $ 9,163 Special termination benefit — 3,730 — — 490 — Net periodic benefit cost recognized as expense $ 6,367 $ 10,366 $ 7,743 $ 13,314 $ 10,405 $ 9,163 |
Schedule of Weighted Average Assumptions Used | The weighted average assumptions used to determine the Company’s benefit costs during the fiscal years below and obligations as of September 30, are as follows: Pension OPEB 2019 2018 2017 2019 2018 2017 Benefit costs: Discount rate 4.36/4.35% (1) 4.04/4.03% (1) 3.96/3.94% (1) 4.38/4.37% (1) 4.12/4.08% (1) 4.08/4.01% (1) Expected asset return 7.00 % 7.50 % 7.75 % 7.00 % 7.50 % 7.75 % Compensation increase 3.25/3.50% (1) 3.25/3.50% (1) 3.25/3.50% (1) 3.25/3.50 (1) 3.25/3.50% (1) 3.25/3.50% (1) Obligations: Discount rate 3.37/3.35% (1) 4.36/4.35% (1) 4.03 % 3.48/3.44% (1) 4.38/4.37% (1) 4.12/4.08% (1) Compensation increase 3.00/3.50% (1) 3.25/3.50% (1) 3.25/3.50% (1) 3.00/3.50% (1) 3.25/3.50% (1) 3.25/3.50% (1) (1) Percentages for represented and nonrepresented plans, respectively. |
Information on Assumed HCCTR Used to Determine Expected OPEB Benefits | Information relating to the assumed HCCTR used to determine expected OPEB benefits as of September 30, and the effect of a 1 percent change in the rate, are as follows: ($ in thousands) 2019 2018 2017 HCCTR 7.6% 7.9% 8.3% Ultimate HCCTR 4.5% 4.5% 4.5% Year ultimate HCCTR reached 2026 2024 2025 Effect of a 1 percentage point increase in the HCCTR on: Year-end benefit obligation $ 49,061 $ 36,260 $ 32,019 Total service and interest cost $ 2,923 $ 2,482 $ 2,468 Effect of a 1 percentage point decrease in the HCCTR on: Year-end benefit obligation $ (38,747 ) $ (28,743 ) $ (25,466 ) Total service and interest costs $ (2,250 ) $ (1,937 ) $ (1,909 ) |
Schedule of Mix and Targeted Allocation of Plan Assets | The mix and targeted allocation of the pension and OPEB plans’ assets are as follows: 2020 Assets at Target September 30, Asset Allocation Allocation 2019 2018 U.S. equity securities 34 % 37 % 41 % International equity securities 17 17 19 Fixed income 38 42 37 Other assets 11 4 3 Total 100 % 100 % 100 % |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following fiscal years: (Thousands) Pension OPEB 2020 $ 12,234 $ 6,267 2021 $ 12,758 $ 6,804 2022 $ 13,585 $ 7,589 2023 $ 14,405 $ 8,249 2024 $ 15,210 $ 8,910 2025 - 2029 $ 90,726 $ 55,025 |
Schedule of Estimated Subsidy Payments | The following estimated subsidy payments are expected to be paid during the following fiscal years: Estimated Subsidy (Thousands) Payment 2020 $ 261 2021 $ 286 2022 $ 314 2023 $ 350 2024 $ 387 2025 - 2029 $ 2,605 |
Summary of Pension and OPEB Assets Held in the Master Trust | Pension and OPEB assets held in the master trust, measured at fair value, as of September 30, are summarized as follows: (Thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Total As of September 30, 2019: Pension OPEB Assets Money market funds $ — $ — $ 21 $ 21 Registered Investment Companies: Equity Funds: Large Cap Index 89,374 89,374 25,474 25,474 Extended Market Index 16,548 16,548 5,036 5,036 International Stock 49,929 49,929 14,564 14,564 Fixed Income Funds: Emerging Markets 15,794 15,794 4,764 4,764 Core Fixed Income — — 10,570 10,570 Opportunistic Income — — 6,365 6,365 Ultra Short Duration — — 6,340 6,340 High Yield Bond Fund 24,328 24,328 7,350 7,350 Long Duration Fund 80,041 80,041 — — Total assets at in the fair value hierarchy $ 276,014 276,014 $ 80,484 80,484 Investments measured at net asset value Common collective trusts 12,620 3,442 Total assets at fair value $ 288,634 $ 83,926 (Thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Total As of September 30, 2018: Pension OPEB Assets Money market funds $ 8,207 $ 8,207 $ 2,273 $ 2,273 Registered Investment Companies: Equity Funds: Large Cap Index 97,016 97,016 27,340 27,340 Extended Market Index 17,741 17,741 5,014 5,014 International Stock 53,516 53,516 14,874 14,874 Fixed Income Funds: Emerging Markets 11,754 11,754 3,264 3,264 Core Fixed Income — — 7,970 7,970 Opportunistic Income — — 4,798 4,798 Ultra Short Duration — — 4,830 4,830 High Yield Bond Fund 25,720 25,720 7,236 7,236 Long Duration Fund 64,039 64,039 — — Total assets at in the fair value hierarchy $ 277,993 277,993 $ 77,599 77,599 Investments measured at net asset value Common collective trusts 1,417 381 Total assets at fair value $ 279,410 $ 77,980 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Analysis of Change in ARO Liability | The following is an analysis of the change in the Company’s ARO for the fiscal years ended September 30 : (Thousands) 2019 2018 NJNG NJRCEV NJNG NJRCEV Balance at October 1 $ 25,640 $ 3,048 $ 24,825 $ 6,595 Accretion 1,427 150 1,366 198 Additions 135 904 1,880 517 Revisions in estimated cash flows — — (2,133 ) — Retirements (258 ) — (298 ) — Reclassification to held for sale or sold — — — (4,262 ) Balance at period end $ 26,944 $ 4,102 $ 25,640 $ 3,048 |
Schedule of Future Accretion | Accretion for the next five years, for the fiscal years ended September 30 , is estimated to be as follows: Estimated (Thousands) Accretion 2020 $ 1,669 2021 1,745 2022 1,823 2023 1,908 2024 1,994 Total $ 9,139 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision (Benefit) | The income tax (benefit) provision from operations for the fiscal years ended September 30, consists of the following: (Thousands) 2019 2018 2017 Current: Federal $ 10,933 $ (2,848 ) $ (16,023 ) State 3,530 4,563 2,470 Deferred: Federal 7,988 (40,785 ) 54,965 State 5,833 6,731 11,457 Investment/production tax credits, net (66,035 ) (21,446 ) (34,526 ) Income tax (benefit) provision $ (37,751 ) $ (53,785 ) $ 18,343 |
Schedule of Deferred Tax Assets and Liabilities | As of September 30, the temporary differences, which give rise to deferred tax assets (liabilities), consist of the following: (Thousands) 2019 2018 Deferred tax assets Investment tax credits (1) $ 156,153 $ 123,258 Federal net operating losses (2) 24,173 24,500 State net operating losses 25,302 34,754 Fair value of derivatives 9,673 8,411 Postemployment benefits 9,192 — Incentive compensation 7,231 4,646 Amortization of intangibles 4,991 3,737 Conservation incentive plan — 1,955 Other 3,105 8,213 Total deferred tax assets $ 239,820 $ 209,474 Deferred tax liabilities Property related items $ (379,673 ) $ (392,886 ) Remediation costs (10,720 ) (9,229 ) Equity investments (21,730 ) (31,956 ) Underrecovered gas costs (2,657 ) (1,156 ) Conservation incentive plan (942 ) — Postemployment benefits — (353 ) Other (4,776 ) (7,826 ) Total deferred tax liabilities $ (420,498 ) $ (443,406 ) Total net deferred tax liabilities $ (180,678 ) $ (233,932 ) (1) Includes $2 million and $2.2 million for NJNG for fiscal 2019 and 2018 , respectively , which is being amortized over the life of the related assets, and $154.2 million and $121.1 million for Clean Energy Ventures for fiscal 2019 and 2018 , respectively , which is ITC carryforward. (2) See discussion of federal net operating loss utilization in the Other Tax Items section of this note. |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory rate to the effective rate from operations for the fiscal years ended September 30, is as follows: (Thousands) 2019 2018 2017 Statutory income tax expense $ 27,668 $ 44,014 $ 52,643 Change resulting from: Investment/production tax credits (66,035 ) (21,446 ) (34,526 ) Cost of removal of assets placed in service prior to 1981 (6,349 ) (5,829 ) (6,886 ) AFUDC equity (2,313 ) (2,117 ) (2,624 ) State income taxes, net of federal benefit 7,707 7,092 8,222 Basis adjustment of solar assets due to ITC 6,500 1,080 4,256 Tax Act - utility excess deferred income taxes amortized (1) (3,573 ) (1,786 ) — Tax Act - nonutility excess deferred income taxes (1) — (59,627 ) — Tax Act - utility excess deferred income taxes refunded to customers (1) — (14,323 ) — Other (1,356 ) (843 ) (2,742 ) Income tax (benefit) provision $ (37,751 ) $ (53,785 ) $ 18,343 Effective income tax rate (2) (3) (28.7 )% (29.9 )% 12.2 % (1) For a more detailed description, see The Tax Act section of this note. (2) The U.S. federal statutory rate was 21 percent , 24.5 percent and 35 percent for fiscal 2019, 2018 and 2017, respectively. (3) |
Schedule of the Reserve for Uncertain Tax Benefits | The reserve for uncertain tax benefits for the fiscal year ended September 30, is as follows: (Thousands) 2019 Balance at October 1, $ — Additions based on tax positions related to the current fiscal period 4,930 Balance at period end $ 4,930 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments for Natural Gas Purchases and Future Demands Fees for the Next Five Years | Commitments as of September 30, 2019 , for natural gas purchases and future demand fees for the next five fiscal year periods, are as follows: (Thousands) 2020 2021 2022 2023 2024 Thereafter Energy Services: Natural gas purchases $ 266,931 $ 18,809 $ — $ — $ — $ — Storage demand fees 26,043 15,247 11,378 6,804 1,650 935 Pipeline demand fees 78,194 65,875 52,492 28,933 12,963 8,853 Sub-total Energy Services $ 371,168 $ 99,931 $ 63,870 $ 35,737 $ 14,613 $ 9,788 NJNG: Natural gas purchases $ 20,616 $ 30,884 $ 31,775 $ 33,060 $ 34,652 $ 35,748 Storage demand fees 33,938 24,443 16,101 9,442 2,876 5,559 Pipeline demand fees 95,318 107,811 93,925 88,145 64,561 552,407 Sub-total NJNG $ 149,872 $ 163,138 $ 141,801 $ 130,647 $ 102,089 $ 593,714 Total $ 521,040 $ 263,069 $ 205,671 $ 166,384 $ 116,702 $ 603,502 |
REPORTING SEGMENT AND OTHER O_2
REPORTING SEGMENT AND OTHER OPERATIONS DATA (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Business Segments and Other Operations | Information related to the Company’s various reporting segments and other operations is detailed below: (Thousands) Fiscal Years Ended September 30, 2019 2018 2017 Operating revenues Natural Gas Distribution External customers $ 710,793 $ 731,865 $ 695,637 Clean Energy Ventures External customers 98,099 71,375 64,394 Energy Services External customers (1) 1,734,553 2,064,477 1,462,365 Intercompany 8,238 48,327 316 Subtotal 2,551,683 2,916,044 2,222,712 Home Services and Other External customers 48,600 47,392 46,221 Intercompany 2,302 2,665 3,370 Eliminations (10,540 ) (50,992 ) (3,686 ) Total $ 2,592,045 $ 2,915,109 $ 2,268,617 Depreciation and amortization Natural Gas Distribution $ 57,980 $ 53,208 $ 49,347 Clean Energy Ventures 32,997 31,877 31,834 Energy Services (2) 118 76 63 Midstream 6 6 6 Subtotal 91,101 85,167 81,250 Home Services and Other 914 780 798 Eliminations (285 ) (246 ) (207 ) Total $ 91,730 $ 85,701 $ 81,841 Interest income (3) Natural Gas Distribution $ 994 $ 614 $ 555 Energy Services 78 240 6 Midstream 4,000 3,374 2,195 Subtotal 5,072 4,228 2,756 Home Services and Other 1,942 1,476 590 Eliminations (5,391 ) (5,090 ) (1,312 ) Total $ 1,623 $ 614 $ 2,034 (1) Includes sales to Canada for the Energy Services segment, which are immaterial. (2) The amortization of acquired wholesale energy contracts is excluded above and is included in gas purchases - nonutility on the Consolidated Statements of Operations. (3) Included in other income, net on the Consolidated Statements of Operations. (Thousands) Fiscal Years Ended September 30, 2019 2018 2017 Interest expense, net of capitalized interest Natural Gas Distribution $ 26,134 $ 25,299 $ 25,818 Clean Energy Ventures 14,846 18,320 16,263 Energy Services 5,205 3,945 2,747 Midstream 2,185 1,667 960 Subtotal 48,370 49,231 45,788 Home Services and Other 1,535 7 410 Eliminations (2,823 ) (2,952 ) (1,312 ) Total $ 47,082 $ 46,286 $ 44,886 Income tax provision (benefit) Natural Gas Distribution $ 9,434 $ (1,910 ) $ 43,485 Clean Energy Ventures (48,921 ) (79,932 ) (31,161 ) Energy Services (1,573 ) 24,996 (4,015 ) Midstream 2,254 (8,548 ) 5,820 Subtotal (38,806 ) (65,394 ) 14,129 Home Services and Other 1,428 11,944 3,857 Eliminations (373 ) (335 ) 357 Total $ (37,751 ) $ (53,785 ) $ 18,343 Equity in earnings of affiliates Midstream $ 15,832 $ 16,165 $ 17,797 Eliminations (2,204 ) (3,157 ) (3,984 ) Total $ 13,628 $ 13,008 $ 13,813 Net financial earnings (loss) Natural Gas Distribution $ 78,062 $ 84,048 $ 86,930 Clean Energy Ventures 77,473 75,849 24,873 Energy Services 2,918 60,378 18,554 Midstream 14,689 24,367 12,857 Subtotal 173,142 244,642 143,214 Home Services and Other 1,911 (3,829 ) 6,811 Eliminations (93 ) (327 ) (633 ) Total $ 174,960 $ 240,486 $ 149,392 Capital expenditures Natural Gas Distribution $ 340,226 $ 254,523 $ 176,249 Clean Energy Ventures 157,828 123,421 149,400 Midstream 20,616 5,431 — Subtotal 518,670 383,375 325,649 Home Services and Other 2,484 1,213 2,434 Total $ 521,154 $ 384,588 $ 328,083 Investments in equity investees Midstream $ 4,102 $ 16,151 $ 27,070 Total $ 4,102 $ 16,151 $ 27,070 |
Reconciliation of Consolidated NFE to Consolidated Net Income | A reconciliation of consolidated NFE to consolidated net income is as follows: (Thousands) 2019 2018 2017 Consolidated net financial earnings $ 174,960 $ 240,486 $ 149,392 Less: Unrealized loss (gain) on derivative instruments and related transactions 2,881 26,770 (11,241 ) Tax effect (711 ) (4,512 ) 4,062 Effects of economic hedging related to natural gas inventory 4,309 (22,570 ) 38,470 Tax effect (1,024 ) 7,362 (13,964 ) Consolidated net income $ 169,505 $ 233,436 $ 132,065 |
Schedule of Assets for Business Segments and Business Operations | The Company’s assets for the various reporting segments and business operations are detailed below: (Thousands) 2019 2018 2017 Assets at end of period: Natural Gas Distribution $ 3,064,309 $ 2,663,054 $ 2,519,578 Clean Energy Ventures (1) 864,323 865,018 771,340 Energy Services 290,847 396,852 398,277 Midstream 240,955 242,069 232,806 Subtotal 4,460,434 4,166,993 3,922,001 Home Services and Other 104,411 114,732 114,801 Intercompany assets (2) (191,860 ) (138,061 ) (108,295 ) Total $ 4,372,985 $ 4,143,664 $ 3,928,507 (1) Includes assets held for sale of $206.9 million for September 30, 2018. (2) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Demand fees, net of eliminations, associated with Steckman Ridge during the fiscal years ended September 30 , are as follows: (Thousands) 2019 2018 2017 Natural Gas Distribution $ 5,814 $ 5,730 $ 5,590 Energy Services 2,134 2,775 2,750 Total $ 7,948 $ 8,505 $ 8,340 The following table summarizes demand fees payable to Steckman Ridge as of September 30 : (Thousands) 2019 2018 Natural Gas Distribution $ 775 $ 775 Energy Services 15 375 Total $ 790 $ 1,150 |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | A summary of financial data for each quarter of fiscal 2019 and 2018 follows. Due to the seasonal nature of the Company’s businesses, quarterly amounts vary significantly during the fiscal year. In the opinion of management, the information furnished reflects all adjustments necessary for a fair presentation of the results of the interim periods. First Second Third Fourth (Thousands, except per share data) Quarter Quarter Quarter Quarter 2019 Operating revenues $ 811,767 $ 866,255 $ 434,942 $ 479,081 Operating income (loss) $ 88,743 $ 77,001 $ (4,019 ) $ (7,790 ) Net income (loss) $ 86,248 $ 73,573 $ (8,402 ) $ 18,086 Earnings (loss) per share (1) Basic $0.97 $0.83 $(0.09) $0.20 Diluted $0.97 $0.82 $(0.09) $0.20 2018 Operating revenues $ 705,305 $ 1,019,043 $ 543,435 $ 647,326 Operating income (loss) (2) $ 76,196 $ 178,744 $ (36,715 ) $ (18,343 ) Net income (loss) $ 123,699 $ 140,266 $ (14,274 ) $ (16,255 ) Earnings (loss) per share (1) Basic $1.42 $1.60 $(0.16) $(0.18) Diluted $1.42 $1.59 $(0.16) $(0.18) (1) The sum of quarterly amounts may not equal the annual amounts due to rounding. (2) Quarterly amounts have been reclassified to conform to the current period presentation due to the adoption of ASU No. 2017-07, an amendment to ASC 715, Compensation - Retirement Benefits. See Note 2. Summary of Significant Accounting Policies . |
NATURE OF THE BUSINESS (Details
NATURE OF THE BUSINESS (Details) | 12 Months Ended |
Sep. 30, 2019subsidiarycustomer | |
NJNG | |
Investment [Line Items] | |
Total retail customers (in customers) | customer | 547,600 |
NJR Retail Holdings Corporation | |
Investment [Line Items] | |
Number of principal subsidiaries (in subsidiaries) | subsidiary | 2 |
Steckman Ridge | |
Investment [Line Items] | |
Ownership interest, percent | 50.00% |
PennEast | |
Investment [Line Items] | |
Ownership interest, percent | 20.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details) shares in Thousands | Mar. 06, 2019USD ($) | Jan. 28, 2019shares | Jun. 01, 2018MW | Sep. 30, 2019USD ($)plan | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Composite rate of depreciation | 2.25% | 2.29% | 2.25% | |||
Depreciation and amortization | $ 91,730,000 | $ 85,701,000 | $ 81,841,000 | |||
SBC interest rate | 3.30% | 3.41% | 2.55% | |||
Deferred interest | $ 760,000 | $ 411,000 | $ 78,000 | |||
Restricted cash | 1,400,000 | 252,000 | ||||
Loans receivable in other current assets | 12,400,000 | 10,400,000 | ||||
Loans receivable in other noncurrent assets | 38,800,000 | 39,500,000 | ||||
Debt conversion ratio | 0.2492 | |||||
Available for sale equity securities | 0 | 32,917,000 | ||||
Proceeds from sale of available for sale securities, net | $ 34,500,000 | 34,484,000 | 6,616,000 | 6,639,000 | ||
Gain on sale of available-for-sale securities, pre-tax | $ 1,600,000 | |||||
Intangible assets | 14,611,000 | 23,375,000 | ||||
Proceeds from sale-leaseback transaction | 9,895,000 | 7,820,000 | 9,587,000 | |||
Proceeds from sale-leaseback transaction - solar | $ 0 | 71,538,000 | 32,901,000 | |||
Number of noncontributory defined benefit retirement plans (in plans) | plan | 2 | |||||
Number of noncontributory medical and life insurance plans (in plans) | plan | 2 | |||||
Pension | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Employer discretionary contributions | $ 0 | 0 | 0 | |||
Employer contributions | 231,000 | 137,000 | ||||
OPEB | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Employer contributions | 7,926,000 | 6,222,000 | 6,000,000 | |||
Clean Energy Ventures | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Proceeds from sale-leaseback transaction - solar | 71,500,000 | 32,900,000 | ||||
NJNG | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Proceeds from sale-leaseback transaction | 9,900,000 | $ 7,800,000 | $ 9,600,000 | |||
Common Units | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other ownership interests, units issued (in shares) | shares | 1,840 | |||||
Dominion Shares | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other ownership interests, units issued (in shares) | shares | 458 | |||||
Operation and maintenance | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Capitalized software costs | 9,100,000 | |||||
Other noncurrent assets | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Capitalized software costs | $ 6,500,000 | |||||
Clean Energy Ventures | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Wind farm total capacity (in MW) | MW | 9.7 | |||||
Seven-Year Treasury Rate | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Debt instrument, term | 7 years | |||||
Basis spread on variable rate | 60.00% | |||||
September 2016 Base Rate Case | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Composite rate of depreciation | 2.40% | |||||
Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Storage and pipeline capacity, contract term | 1 year | |||||
Loans receivable term | 2 years | |||||
Minimum | Clean Energy Ventures | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Term of lease | 6 years | |||||
Minimum | NJNG | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Term of lease | 7 years | |||||
Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Storage and pipeline capacity, contract term | 10 years | |||||
Loans receivable term | 10 years | |||||
Maximum | Clean Energy Ventures | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Term of lease | 15 years | |||||
Maximum | NJNG | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Term of lease | 11 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - DEMAND FEES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Demand fees | $ 239.5 | $ 245.5 | $ 206.6 |
Energy Services | |||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Demand fees | 120.4 | 153 | 126.4 |
NJNG | |||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Demand fees | $ 119.1 | $ 92.5 | $ 80.2 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - PROPERTY PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Property Classifications | ||
Total property, plant and equipment | $ 3,782,359 | $ 3,304,491 |
Accumulated depreciation and amortization | (741,193) | (653,442) |
Property, plant and equipment, net | 3,041,166 | 2,651,049 |
Utility | Distribution facilities | ||
Property Classifications | ||
Total property, plant and equipment | $ 2,414,603 | 2,151,249 |
Utility | Distribution facilities | Minimum | ||
Property Classifications | ||
Estimated Useful Lives | 38 years | |
Utility | Distribution facilities | Maximum | ||
Property Classifications | ||
Estimated Useful Lives | 74 years | |
Utility | Transmission facilities | ||
Property Classifications | ||
Total property, plant and equipment | $ 330,912 | 295,692 |
Utility | Transmission facilities | Minimum | ||
Property Classifications | ||
Estimated Useful Lives | 35 years | |
Utility | Transmission facilities | Maximum | ||
Property Classifications | ||
Estimated Useful Lives | 56 years | |
Utility | Storage facilities | ||
Property Classifications | ||
Total property, plant and equipment | $ 79,916 | 79,470 |
Utility | Storage facilities | Minimum | ||
Property Classifications | ||
Estimated Useful Lives | 34 years | |
Utility | Storage facilities | Maximum | ||
Property Classifications | ||
Estimated Useful Lives | 47 years | |
Nonutility | Solar property | ||
Property Classifications | ||
Total property, plant and equipment | $ 879,597 | 720,562 |
Nonutility | Solar property | Minimum | ||
Property Classifications | ||
Estimated Useful Lives | 15 years | |
Nonutility | Solar property | Maximum | ||
Property Classifications | ||
Estimated Useful Lives | 25 years | |
Nonutility | Midstream property | ||
Property Classifications | ||
Estimated Useful Lives | 30 years | |
Total property, plant and equipment | $ 28,445 | 6,747 |
Nonutility | All other property | ||
Property Classifications | ||
Total property, plant and equipment | $ 48,886 | $ 50,771 |
Nonutility | All other property | Minimum | ||
Property Classifications | ||
Estimated Useful Lives | 5 years | |
Nonutility | All other property | Maximum | ||
Property Classifications | ||
Estimated Useful Lives | 35 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CAPITALIZED AND DEFERRED INTEREST (Details) - NJNG - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
AFUDC: | |||
Debt | $ 3,710 | $ 1,979 | $ 1,311 |
Equity | 6,492 | 5,531 | 3,867 |
Total | $ 10,202 | $ 7,510 | $ 5,178 |
Weighted average interest rate | 6.35% | 5.94% | 6.90% |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - GAS IN STORAGE (Details) $ in Thousands | Sep. 30, 2019USD ($)Bcf | Sep. 30, 2018USD ($)Bcf |
Public Utilities, Inventory [Line Items] | ||
Gas in Storage | $ | $ 169,803 | $ 184,633 |
Bcf | Bcf | 52.6 | 59 |
Energy Services | ||
Public Utilities, Inventory [Line Items] | ||
Gas in Storage | $ | $ 52,390 | $ 90,166 |
Bcf | Bcf | 25.6 | 34.1 |
Natural Gas Distribution | ||
Public Utilities, Inventory [Line Items] | ||
Gas in Storage | $ | $ 117,413 | $ 94,467 |
Bcf | Bcf | 27 | 24.9 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Assets and Liabilities Held for Sale [Roll Forward] | ||
Liabilities held for sale | $ 0 | $ 4,182 |
Clean Energy Ventures | ||
Assets and Liabilities Held for Sale [Roll Forward] | ||
Property, plant and equipment - wind equipment, at cost | 0 | 224,356 |
Property, plant and equipment - accumulated depreciation, wind equipment | 0 | (18,501) |
Prepaid and accrued taxes | 0 | 789 |
Other noncurrent assets | 0 | 261 |
Asset held for sale | 0 | 206,905 |
Accounts payable and other | 0 | 186 |
Asset retirement obligation | 0 | 3,996 |
Liabilities held for sale | 0 | $ 4,182 |
Assets reclassified as held for sale | Clean Energy Ventures | ||
Assets and Liabilities Held for Sale [Roll Forward] | ||
Property, plant and equipment - wind equipment, at cost | 0 | |
Property, plant and equipment - accumulated depreciation, wind equipment | 0 | |
Prepaid and accrued taxes | 1,747 | |
Other noncurrent assets | 0 | |
Asset held for sale | 1,747 | |
Accounts payable and other | 0 | |
Asset retirement obligation | 0 | |
Liabilities held for sale | 0 | |
Assets Sold | Clean Energy Ventures | ||
Assets and Liabilities Held for Sale [Roll Forward] | ||
Property, plant and equipment - wind equipment, at cost | (224,356) | |
Property, plant and equipment - accumulated depreciation, wind equipment | 18,501 | |
Prepaid and accrued taxes | (1,541) | |
Other noncurrent assets | (261) | |
Asset held for sale | (207,657) | |
Accounts payable and other | (186) | |
Asset retirement obligation | (3,996) | |
Liabilities held for sale | (4,182) | |
Other adjustments | Clean Energy Ventures | ||
Assets and Liabilities Held for Sale [Roll Forward] | ||
Prepaid and accrued taxes | (995) | |
Asset held for sale | $ (995) |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INTANGIBLE ASSETS (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Accounting Policies [Abstract] | |
2020 | $ 5,011 |
2021 | 4,691 |
2022 | 2,561 |
2023 | 2,271 |
2024 and thereafter | $ 77 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Oct. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | $ 1,418,978 | $ 1,236,643 | |
Ending Balance | 1,551,717 | 1,418,978 | |
Investments in Equity Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | 3,446 | 11,044 | |
Other comprehensive (loss), before reclassifications, net of tax | 0 | (19,245) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 11,647 | |
Net current-period other comprehensive (loss), net of tax | 0 | (7,598) | |
Reclassifications of certain income tax effects to retained earnings | 0 | ||
Adoption of ASU | $ (3,446) | ||
Ending Balance | 0 | 3,446 | |
Tax on other comprehensive income before reclassifications | 0 | (6,973) | |
Tax on amounts reclassified from accumulated other comprehensive income | 0 | 858 | |
Tax on net current-period other comprehensive income (loss) | 0 | (6,115) | |
Adjustment to postemployment benefit obligation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (16,056) | (14,300) | |
Other comprehensive (loss), before reclassifications, net of tax | (16,978) | 464 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 1,247 | 1,056 | |
Net current-period other comprehensive (loss), net of tax | (15,731) | 1,520 | |
Reclassifications of certain income tax effects to retained earnings | (3,276) | ||
Adoption of ASU | 0 | ||
Ending Balance | (31,787) | (16,056) | |
Tax on other comprehensive income before reclassifications | (6,557) | 125 | |
Tax on amounts reclassified from accumulated other comprehensive income | 451 | 448 | |
Tax on net current-period other comprehensive income (loss) | (6,106) | 573 | |
Total | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (12,610) | (3,256) | |
Other comprehensive (loss), before reclassifications, net of tax | (16,978) | (18,781) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 1,247 | 12,703 | |
Net current-period other comprehensive (loss), net of tax | (15,731) | (6,078) | |
Reclassifications of certain income tax effects to retained earnings | (3,276) | ||
Adoption of ASU | $ (3,446) | ||
Ending Balance | (31,787) | (12,610) | |
Tax on other comprehensive income before reclassifications | (6,557) | (6,848) | |
Tax on amounts reclassified from accumulated other comprehensive income | 451 | 1,306 | |
Tax on net current-period other comprehensive income (loss) | $ (6,106) | $ (5,542) |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - RECENTLY ADOPTED ACCOUNTING STANDARDS NARRATIVE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2019 | Oct. 01, 2019 | Oct. 01, 2018 | Sep. 30, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Sales tax | $ 45,300 | ||||
Accumulated other comprehensive loss, net of tax | $ 31,787 | $ 12,610 | |||
Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification to retained earnings | [1] | $ 2,736 | |||
Accounting Standards Update 2017-05 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification to retained earnings | [1] | (4,970) | |||
Deferred gain, unamortized balance | (6,800) | ||||
Accounting Standards Update 2016-02 | Minimum | Forecast | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating lease right-of-use asset | $ 60,000 | ||||
Operating lease liability | 60,000 | ||||
Accounting Standards Update 2016-02 | Maximum | Forecast | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating lease right-of-use asset | 70,000 | ||||
Operating lease liability | $ 70,000 | ||||
Retained Earnings | Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification to retained earnings | [1] | 2,736 | |||
Retained Earnings | Accounting Standards Update 2017-05 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification to retained earnings | [1] | (4,970) | |||
Investments in Equity Securities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification to retained earnings | 3,400 | ||||
Accumulated other comprehensive loss, net of tax | 4,700 | ||||
Home Services and Other | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification to retained earnings | 3,800 | ||||
Home Services and Other | Retained Earnings | Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification to retained earnings | $ 2,700 | ||||
[1] | See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - STATEMENT OF CASH FLOWS (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 2,676 | $ 1,458 | $ 2,226 | $ 37,546 |
Restricted cash in other noncurrent assets | 1,387 | 252 | 243 | 1,565 |
Cash, cash equivalents and restricted cash in the statement of cash flows | $ 4,063 | $ 1,710 | $ 2,469 | $ 39,111 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Operation and maintenance | $ 256,951 | $ 263,113 | $ 222,176 | ||||||||
Total operating expenses | 2,438,110 | 2,715,227 | 2,097,393 | ||||||||
Operating income (loss) | $ (7,790) | $ (4,019) | $ 77,001 | $ 88,743 | $ (18,343) | $ (36,715) | $ 178,744 | $ 76,196 | 153,935 | 199,882 | 171,224 |
Other income (expense), net | $ 11,273 | 13,047 | 10,257 | ||||||||
Accounting Standards Update 2017-07 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Operation and maintenance | 263,113 | 222,176 | |||||||||
Total operating expenses | 2,715,227 | 2,097,393 | |||||||||
Operating income (loss) | 199,882 | 171,224 | |||||||||
Other income (expense), net | 13,047 | 10,257 | |||||||||
Accounting Standards Update 2017-07 | As Previously Reported | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Operation and maintenance | 266,919 | 226,356 | |||||||||
Total operating expenses | 2,719,033 | 2,101,573 | |||||||||
Operating income (loss) | 196,076 | 167,044 | |||||||||
Other income (expense), net | 16,853 | 14,437 | |||||||||
Accounting Standards Update 2017-07 | Effect of Change | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Operation and maintenance | (3,806) | (4,180) | |||||||||
Total operating expenses | (3,806) | (4,180) | |||||||||
Operating income (loss) | 3,806 | 4,180 | |||||||||
Other income (expense), net | $ (3,806) | $ (4,180) |
REVENUE - DISAGGREGATED REVENUE
REVENUE - DISAGGREGATED REVENUE - PRODUCT (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | $ 782,331 | |||||||||||
Alternative revenue programs | 10,364 | |||||||||||
Derivative Instruments | 1,807,588 | |||||||||||
Revenues out of scope | 1,809,714 | |||||||||||
Total operating revenues | $ 479,081 | $ 434,942 | $ 866,255 | $ 811,767 | $ 647,326 | $ 543,435 | $ 1,019,043 | $ 705,305 | 2,592,045 | $ 2,915,109 | $ 2,268,617 | |
Natural gas utility sales | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 680,151 | |||||||||||
Wholesale natural gas services | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 31,459 | |||||||||||
Service contracts | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 31,499 | |||||||||||
Installations and maintenance | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 19,403 | |||||||||||
Electricity sales | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 22,121 | |||||||||||
Operating Segments | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total operating revenues | 2,551,683 | $ 2,916,044 | $ 2,222,712 | |||||||||
Eliminations | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | [1] | (2,302) | ||||||||||
Revenues out of scope | [1] | (8,238) | ||||||||||
Regulated | Operating Segments | Natural Gas Distribution | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 680,151 | |||||||||||
Alternative revenue programs | 10,364 | |||||||||||
Derivative Instruments | 20,278 | |||||||||||
Revenues out of scope | 30,642 | |||||||||||
Total operating revenues | 710,793 | |||||||||||
Regulated | Operating Segments | Natural gas utility sales | Natural Gas Distribution | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 680,151 | |||||||||||
Regulated | Operating Segments | Wholesale natural gas services | Natural Gas Distribution | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Regulated | Operating Segments | Service contracts | Natural Gas Distribution | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Regulated | Operating Segments | Installations and maintenance | Natural Gas Distribution | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Regulated | Operating Segments | Electricity sales | Natural Gas Distribution | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Regulated | Eliminations | Natural Gas Distribution | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues out of scope | [1] | 0 | ||||||||||
Unregulated | Operating Segments | Clean Energy Ventures | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 22,121 | |||||||||||
Alternative revenue programs | 0 | |||||||||||
Derivative Instruments | 75,978 | |||||||||||
Revenues out of scope | 75,978 | |||||||||||
Total operating revenues | 98,099 | |||||||||||
Unregulated | Operating Segments | Energy Services | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 31,459 | |||||||||||
Alternative revenue programs | 0 | |||||||||||
Derivative Instruments | 1,711,332 | |||||||||||
Revenues out of scope | 1,703,094 | |||||||||||
Total operating revenues | 1,734,553 | |||||||||||
Unregulated | Operating Segments | Natural gas utility sales | Clean Energy Ventures | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Unregulated | Operating Segments | Natural gas utility sales | Energy Services | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Unregulated | Operating Segments | Wholesale natural gas services | Clean Energy Ventures | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Unregulated | Operating Segments | Wholesale natural gas services | Energy Services | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 31,459 | |||||||||||
Unregulated | Operating Segments | Service contracts | Clean Energy Ventures | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Unregulated | Operating Segments | Service contracts | Energy Services | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Unregulated | Operating Segments | Installations and maintenance | Clean Energy Ventures | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Unregulated | Operating Segments | Installations and maintenance | Energy Services | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Unregulated | Operating Segments | Electricity sales | Clean Energy Ventures | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 22,121 | |||||||||||
Unregulated | Operating Segments | Electricity sales | Energy Services | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Unregulated | Home Services and Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 48,600 | |||||||||||
Alternative revenue programs | 0 | |||||||||||
Derivative Instruments | 0 | |||||||||||
Revenues out of scope | 0 | |||||||||||
Total operating revenues | 48,600 | |||||||||||
Unregulated | Home Services and Other | Natural gas utility sales | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Unregulated | Home Services and Other | Wholesale natural gas services | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Unregulated | Home Services and Other | Service contracts | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 31,499 | |||||||||||
Unregulated | Home Services and Other | Installations and maintenance | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 19,403 | |||||||||||
Unregulated | Home Services and Other | Electricity sales | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 0 | |||||||||||
Unregulated | Eliminations | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | [1] | (2,302) | ||||||||||
Revenues out of scope | [1] | 0 | ||||||||||
Unregulated | Eliminations | Clean Energy Ventures | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues out of scope | [1] | 0 | ||||||||||
Unregulated | Eliminations | Energy Services | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues out of scope | [1] | $ (8,238) | ||||||||||
[1] | Consists of transactions between subsidiaries that are eliminated in consolidation. |
REVENUE - DISAGGREGATED REVEN_2
REVENUE - DISAGGREGATED REVENUE - TYPE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | $ 782,331 | ||||||||||
Revenues out of scope | 1,809,714 | ||||||||||
Total operating revenues | $ 479,081 | $ 434,942 | $ 866,255 | $ 811,767 | $ 647,326 | $ 543,435 | $ 1,019,043 | $ 705,305 | 2,592,045 | $ 2,915,109 | $ 2,268,617 |
Residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 497,445 | ||||||||||
Commercial and industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 216,879 | ||||||||||
Firm transportation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 61,370 | ||||||||||
Interruptible and off-tariff | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 6,637 | ||||||||||
Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 2,551,683 | $ 2,916,044 | $ 2,222,712 | ||||||||
Unregulated | Home Services and Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 48,600 | ||||||||||
Revenues out of scope | 0 | ||||||||||
Total operating revenues | 48,600 | ||||||||||
Unregulated | Home Services and Other | Residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 47,655 | ||||||||||
Unregulated | Home Services and Other | Commercial and industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 945 | ||||||||||
Unregulated | Home Services and Other | Firm transportation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | ||||||||||
Unregulated | Home Services and Other | Interruptible and off-tariff | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | ||||||||||
Natural Gas Distribution | Regulated | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 680,151 | ||||||||||
Revenues out of scope | 30,642 | ||||||||||
Total operating revenues | 710,793 | ||||||||||
Natural Gas Distribution | Regulated | Operating Segments | Residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 440,787 | ||||||||||
Natural Gas Distribution | Regulated | Operating Segments | Commercial and industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 171,357 | ||||||||||
Natural Gas Distribution | Regulated | Operating Segments | Firm transportation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 61,370 | ||||||||||
Natural Gas Distribution | Regulated | Operating Segments | Interruptible and off-tariff | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 6,637 | ||||||||||
Clean Energy Ventures | Unregulated | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 22,121 | ||||||||||
Revenues out of scope | 75,978 | ||||||||||
Total operating revenues | 98,099 | ||||||||||
Clean Energy Ventures | Unregulated | Operating Segments | Residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 9,003 | ||||||||||
Clean Energy Ventures | Unregulated | Operating Segments | Commercial and industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 13,118 | ||||||||||
Clean Energy Ventures | Unregulated | Operating Segments | Firm transportation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | ||||||||||
Clean Energy Ventures | Unregulated | Operating Segments | Interruptible and off-tariff | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | ||||||||||
Energy Services | Unregulated | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 31,459 | ||||||||||
Revenues out of scope | 1,703,094 | ||||||||||
Total operating revenues | 1,734,553 | ||||||||||
Energy Services | Unregulated | Operating Segments | Residential | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | ||||||||||
Energy Services | Unregulated | Operating Segments | Commercial and industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 31,459 | ||||||||||
Energy Services | Unregulated | Operating Segments | Firm transportation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 0 | ||||||||||
Energy Services | Unregulated | Operating Segments | Interruptible and off-tariff | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | $ 0 |
REVENUE - TIMING OF REVENUE REC
REVENUE - TIMING OF REVENUE RECOGNITION (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Timing of Revenue Recognition [Roll Forward] | |
Billed, beginning | $ 205,490 |
Unbilled, beginning | 7,199 |
Customers' credit, beginning | 27,325 |
Increase (decrease) for accounts receivable, billed | (66,227) |
Increase (decrease) for unbilled revenue | (689) |
Increase (decrease) for customers' credits | (209) |
Billed, end | 139,263 |
Unbilled, end | 6,510 |
Customers' credit, end | $ 27,116 |
REVENUE - TIMING OF REVENUE R_2
REVENUE - TIMING OF REVENUE RECOGNITION - BALANCE SHEET (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Customer accounts receivable: | ||
Billed | $ 139,263 | $ 205,490 |
Unbilled revenues | 6,510 | 7,199 |
Customers' credit balances and deposits | (27,116) | $ (27,325) |
Customers accounts receivables & Customers' credit balances and deposits | 118,657 | |
Operating Segments | Natural Gas Distribution | ||
Customer accounts receivable: | ||
Billed | 36,302 | |
Unbilled revenues | 6,510 | |
Customers' credit balances and deposits | (27,114) | |
Customers accounts receivables & Customers' credit balances and deposits | 15,698 | |
Operating Segments | Clean Energy Ventures | ||
Customer accounts receivable: | ||
Billed | 3,233 | |
Unbilled revenues | 0 | |
Customers' credit balances and deposits | 0 | |
Customers accounts receivables & Customers' credit balances and deposits | 3,233 | |
Operating Segments | Energy Services | ||
Customer accounts receivable: | ||
Billed | 97,301 | |
Unbilled revenues | 0 | |
Customers' credit balances and deposits | 0 | |
Customers accounts receivables & Customers' credit balances and deposits | 97,301 | |
Home Services and Other | ||
Customer accounts receivable: | ||
Billed | 2,427 | |
Unbilled revenues | 0 | |
Customers' credit balances and deposits | (2) | |
Customers accounts receivables & Customers' credit balances and deposits | $ 2,425 |
REGULATION - REGULATORY ASSETS
REGULATION - REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Regulatory Assets [Line Items] | ||
Regulatory assets-current | $ 32,871 | $ 18,297 |
Regulatory assets-noncurrent | 496,637 | 368,592 |
Regulatory Liabilities [Line Items] | ||
Regulatory liability-current | 0 | 8,185 |
Regulatory liabilities-noncurrent | 202,435 | 209,139 |
Conservation Incentive Program | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liability-current | 0 | 6,994 |
Derivatives at fair value, net | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liability-current | 0 | 1,191 |
Regulatory liabilities-noncurrent | 0 | 123 |
Tax Act impact | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 200,417 | 205,410 |
New Jersey Clean Energy Program | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 197 | 1,902 |
Other noncurrent regulatory liabilities | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 1,821 | 1,704 |
New Jersey Clean Energy Program | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-current | 15,468 | 14,052 |
Underrecovered gas costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-current | 9,506 | 4,137 |
Derivatives at fair value, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-current | 4,526 | 108 |
Regulatory assets-noncurrent | 486 | 0 |
Conservation Incentive Program | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-current | 3,371 | 0 |
Environmental remediation costs, Expended, net of recoveries | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | 38,351 | 33,017 |
Environmental remediation costs, Liability for future expenditures | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | 131,080 | 130,800 |
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 131,100 | |
Deferred income taxes | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | 19,631 | 17,225 |
SAVEGREEN | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | 10,201 | 8,636 |
Postemployment and other benefit costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | 212,461 | 136,716 |
Deferred storm damage costs | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | 8,687 | 10,858 |
Cost of removal | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | 65,660 | 22,339 |
Other noncurrent regulatory assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets-noncurrent | $ 10,080 | $ 9,001 |
REGULATION - REGULATORY FILINGS
REGULATION - REGULATORY FILINGS (Details) $ in Thousands | Nov. 13, 2019USD ($) | Oct. 25, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 27, 2019USD ($) | Sep. 11, 2019USD ($) | Jul. 02, 2019USD ($) | Jun. 24, 2019USD ($) | Apr. 30, 2019USD ($) | Mar. 29, 2019USD ($) | Feb. 28, 2019USD ($)project_component | Sep. 30, 2018USD ($) | Sep. 17, 2018USD ($) | Mar. 01, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($)filingsproject | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) |
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Number of interim filings during each fiscal year | filings | 2 | |||||||||||||||||
Number of days notice for refund | 5 days | |||||||||||||||||
Public utilities, approved equity capital structure, percentage | 6.90% | |||||||||||||||||
Return on equity | 9.75% | |||||||||||||||||
Regulatory assets-noncurrent | $ 496,637 | $ 368,592 | $ 368,592 | $ 496,637 | $ 496,637 | $ 368,592 | $ 496,637 | |||||||||||
Change in tax rate, deferred tax liability, provisional income tax (expense) benefit | 228,400 | |||||||||||||||||
Change in tax rate, deferred income taxes | 164,300 | |||||||||||||||||
Change in tax rate, provisional income tax expense (benefit) | $ 64,100 | |||||||||||||||||
Regulatory liability, excess deferred income taxes | 200,400 | 200,400 | $ 200,400 | 200,400 | ||||||||||||||
Environmental Remediation Costs | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Regulatory assets, amortization period | 7 years | |||||||||||||||||
Postemployment and Other Benefit Costs | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Regulatory assets, amortization period | 7 years | |||||||||||||||||
Deferred Storm Damage Costs | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Regulatory assets, amortization period | 7 years | |||||||||||||||||
Other Regulatory Asset Noncurrent, PIM | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Regulatory assets, amortization period | 7 years | |||||||||||||||||
Regulatory assets-noncurrent | 2,500 | 2,500 | $ 2,500 | 2,500 | ||||||||||||||
SAVEGREEN | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Capital investments approved by the BPU | $ 354,300 | $ 135,000 | ||||||||||||||||
Grants, rebates and loans provided to customers | 169,100 | |||||||||||||||||
Increase in regulatory funding obligations | $ 8,800 | |||||||||||||||||
SAVEGREEN | Minimum | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Regulatory assets, amortization period | 2 years | |||||||||||||||||
Program recovery term | 3 years | |||||||||||||||||
SAVEGREEN | Maximum | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Regulatory assets, amortization period | 10 years | |||||||||||||||||
Program recovery term | 10 years | |||||||||||||||||
USF | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Approved rate increase (decrease), amount | 1,000 | |||||||||||||||||
RAC | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Approved rate increase (decrease), amount | 1,400 | |||||||||||||||||
NJCEP | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Approved rate increase (decrease), amount | $ 1,900 | |||||||||||||||||
SAFE Program | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Capital investments approved by the BPU | $ 130,000 | |||||||||||||||||
Capital investments approved by the BPU, period | 4 years | |||||||||||||||||
Capital investments to be recovered approved by the Board of Public Utilities | $ 200,000 | |||||||||||||||||
Recovery amount | $ 157,500 | |||||||||||||||||
NJ RISE Program | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Return on equity | 9.75% | |||||||||||||||||
Program recovery term | 5 years | |||||||||||||||||
Number of capital investment projects | project | 6 | |||||||||||||||||
Originally filed petition for capital investments to Board of Public Utilities | $ 102,500 | |||||||||||||||||
NJ RISE Program | Minimum | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Public utilities, approved equity capital structure, percentage | 6.74% | |||||||||||||||||
NJ RISE Program | Maximum | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Public utilities, approved equity capital structure, percentage | 6.90% | |||||||||||||||||
SAFE II and NJ RISE | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Approved rate increase (decrease), amount | $ 7,800 | $ 6,800 | ||||||||||||||||
March 2018 BGSS/CIP Filing | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Approved rate increase (decrease), amount | $ 19,700 | |||||||||||||||||
Requested customer refunds | $ 31,000 | |||||||||||||||||
Natural Gas Distribution | BPU | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Requested base rate increase, amount | $ 134,300 | $ 129,800 | $ 128,200 | |||||||||||||||
Requested return on equity, percentage | 7.87% | |||||||||||||||||
Natural Gas Distribution | BGSS | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Requested base rate increase, amount | $ (17,600) | $ 10,300 | ||||||||||||||||
Natural Gas Distribution | Conservation Incentive Program | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Requested base rate increase, amount | 10,600 | $ (30,900) | ||||||||||||||||
Natural Gas Distribution | BGSS/CIP Filing | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Interim rate increase (decrease), amount | $ 10,900 | |||||||||||||||||
Natural Gas Distribution | BGSS Balancing | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Requested base rate increase, amount | $ 15,600 | |||||||||||||||||
Natural Gas Distribution | RAC | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Requested base rate increase, amount | 1,400 | |||||||||||||||||
Natural Gas Distribution | NJCEP | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Requested base rate increase, amount | $ 3,300 | |||||||||||||||||
Natural Gas Distribution | June 2019 Annual USF Compliance Filing | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Requested base rate increase, amount | $ 1,200 | |||||||||||||||||
Natural Gas Distribution | Infrastructure Investment Program (IIP) [Member] | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Program recovery term | 5 years | |||||||||||||||||
Number of project components | project_component | 2 | |||||||||||||||||
Public utilities, investments | $ 507,000 | |||||||||||||||||
Subsequent Event | Natural Gas Distribution | BPU | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Requested base rate increase, amount | $ 62,200 | |||||||||||||||||
Requested return on equity, percentage | 6.95% | |||||||||||||||||
Subsequent Event | Natural Gas Distribution | Energy Efficiency EE | ||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||||
Approved rate increase (decrease), amount | $ 11,300 |
DERIVATIVE INSTRUMENTS - BALANC
DERIVATIVE INSTRUMENTS - BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($) $ in Thousands | Mar. 13, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | May 30, 2018 | May 15, 2018 | May 11, 2018 | Jan. 26, 2018 | Jun. 30, 2015 |
Derivatives, Fair Value [Line Items] | |||||||||
Asset Derivatives, current | $ 25,103 | $ 27,396 | |||||||
Asset Derivatives, noncurrent | 7,426 | 10,560 | |||||||
Liability Derivatives, current | 57,623 | 46,652 | |||||||
Liability Derivatives, noncurrent | 18,821 | 22,982 | |||||||
Derivatives not designated as hedging instruments: | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Amount of gain (loss) recognized in income on derivatives | (7,412) | (34,175) | $ 8,055 | ||||||
Asset Derivatives | 32,529 | 37,956 | |||||||
Liability Derivatives | 76,444 | 69,634 | |||||||
Treasury lock | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Benchmark interest rate | 3.26% | ||||||||
Interest rate, stated percentage | 4.01% | ||||||||
Amount of gain (loss) recognized in income on derivatives | $ (2,600) | ||||||||
Term loan | Credit Agreement Due August 16, 2019 | Interest rate swap | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Benchmark interest rate | 2.84% | ||||||||
Debt issued | $ 100,000 | ||||||||
Home Services and Other | Interest rate contract | Derivatives not designated as hedging instruments: | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Asset Derivatives, current | 0 | 381 | |||||||
Liability Derivatives, current | 0 | 0 | |||||||
Natural Gas Distribution | Derivatives not designated as hedging instruments: | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Amount of gain (loss) recognized in income on derivatives | (1,774) | 11,543 | 7,898 | ||||||
Natural Gas Distribution | Physical commodity contracts | Derivatives not designated as hedging instruments: | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Amount of gain (loss) recognized in income on derivatives | 5,926 | 1,232 | (12,303) | ||||||
Asset Derivatives, current | 67 | 85 | |||||||
Liability Derivatives, current | 245 | 192 | |||||||
Natural Gas Distribution | Financial commodity contracts | Derivatives not designated as hedging instruments: | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Amount of gain (loss) recognized in income on derivatives | (7,700) | 1,844 | 5,595 | ||||||
Asset Derivatives, current | 382 | 94 | |||||||
Liability Derivatives, current | 570 | 0 | |||||||
Natural Gas Distribution | Interest rate contract | Derivatives not designated as hedging instruments: | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Amount of gain (loss) recognized in income on derivatives | 0 | 8,467 | $ 14,606 | ||||||
Natural Gas Distribution | Series LL | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Debt issued | $ 125,000 | ||||||||
Interest rate, stated percentage | 5.60% | ||||||||
Natural Gas Distribution | First Mortgage | Series VV | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Debt issued | $ 125,000 | $ 125,000 | |||||||
Energy Services | Physical commodity contracts | Derivatives not designated as hedging instruments: | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Asset Derivatives, current | 6,847 | 7,667 | |||||||
Asset Derivatives, noncurrent | 1,710 | 3,930 | |||||||
Liability Derivatives, current | 27,540 | 18,158 | |||||||
Liability Derivatives, noncurrent | 12,641 | 11,316 | |||||||
Energy Services | Financial commodity contracts | Derivatives not designated as hedging instruments: | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Asset Derivatives, current | 17,806 | 19,169 | |||||||
Asset Derivatives, noncurrent | 5,716 | 6,630 | |||||||
Liability Derivatives, current | 29,057 | 28,176 | |||||||
Liability Derivatives, noncurrent | 6,105 | 11,548 | |||||||
Energy Services | Foreign currency contracts | Derivatives not designated as hedging instruments: | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Asset Derivatives, current | 1 | 0 | |||||||
Asset Derivatives, noncurrent | 0 | 0 | |||||||
Liability Derivatives, current | 211 | 126 | |||||||
Liability Derivatives, noncurrent | $ 75 | $ 118 |
- OFFSETTING OF ASSETS AND LIAB
- OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Energy Services | ||
Derivative assets: | ||
Amounts Presented on the Balance Sheets | $ 32,080 | $ 37,396 |
Offsetting Derivative Instruments | (22,553) | (22,719) |
Financial Collateral Received/Pledged | (200) | (200) |
Net Amounts | 9,327 | 14,477 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 75,629 | 69,442 |
Offsetting Derivative Instruments | (22,553) | (22,719) |
Financial Collateral Received/Pledged | (15,516) | (20,949) |
Net Amounts | 37,560 | 25,774 |
Energy Services | Physical commodity contracts | ||
Derivative assets: | ||
Amounts Presented on the Balance Sheets | 8,557 | 11,597 |
Offsetting Derivative Instruments | (2,906) | (3,944) |
Financial Collateral Received/Pledged | (200) | (200) |
Net Amounts | 5,451 | 7,453 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 40,181 | 29,474 |
Offsetting Derivative Instruments | (2,906) | (3,944) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 37,275 | 25,530 |
Energy Services | Financial commodity contracts | ||
Derivative assets: | ||
Amounts Presented on the Balance Sheets | 23,522 | 25,799 |
Offsetting Derivative Instruments | (19,646) | (18,775) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 3,876 | 7,024 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 35,162 | 39,724 |
Offsetting Derivative Instruments | (19,646) | (18,775) |
Financial Collateral Received/Pledged | (15,516) | (20,949) |
Net Amounts | 0 | 0 |
Energy Services | Foreign currency contracts | ||
Derivative assets: | ||
Amounts Presented on the Balance Sheets | 1 | |
Offsetting Derivative Instruments | (1) | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | 0 | |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 286 | 244 |
Offsetting Derivative Instruments | (1) | 0 |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 285 | 244 |
Natural Gas Distribution | ||
Derivative assets: | ||
Amounts Presented on the Balance Sheets | 449 | 179 |
Offsetting Derivative Instruments | (391) | (3) |
Financial Collateral Received/Pledged | 0 | (94) |
Net Amounts | 58 | 82 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 815 | 192 |
Offsetting Derivative Instruments | (391) | (3) |
Financial Collateral Received/Pledged | (188) | 0 |
Net Amounts | 236 | 189 |
Natural Gas Distribution | Physical commodity contracts | ||
Derivative assets: | ||
Amounts Presented on the Balance Sheets | 67 | 85 |
Offsetting Derivative Instruments | (9) | (3) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 58 | 82 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 245 | 192 |
Offsetting Derivative Instruments | (9) | (3) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 236 | 189 |
Natural Gas Distribution | Financial commodity contracts | ||
Derivative assets: | ||
Amounts Presented on the Balance Sheets | 382 | 94 |
Offsetting Derivative Instruments | (382) | 0 |
Financial Collateral Received/Pledged | 0 | (94) |
Net Amounts | 0 | 0 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 570 | |
Offsetting Derivative Instruments | (382) | |
Financial Collateral Received/Pledged | (188) | |
Net Amounts | $ 0 | |
Home Services and Other | ||
Derivative assets: | ||
Amounts Presented on the Balance Sheets | 381 | |
Offsetting Derivative Instruments | 0 | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | 381 | |
Home Services and Other | Interest rate contract | ||
Derivative assets: | ||
Amounts Presented on the Balance Sheets | 381 | |
Offsetting Derivative Instruments | 0 | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | $ 381 |
DERIVATIVE INSTRUMENTS - INCOME
DERIVATIVE INSTRUMENTS - INCOME STATEMENT RELATED DISCLOSURES (Details) - Derivatives not designated as hedging instruments: - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | $ (7,412) | $ (34,175) | $ 8,055 |
Energy Services | Physical commodity contracts | Operating revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | (5,732) | (9,311) | 8,912 |
Energy Services | Physical commodity contracts | Gas purchases | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | (521) | (197) | (27,461) |
Energy Services | Financial commodity contracts | Gas purchases | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | (643) | (24,622) | 26,563 |
Energy Services | Foreign currency contracts | Gas purchases | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | (283) | (379) | 41 |
Natural Gas Distribution | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | (1,774) | 11,543 | 7,898 |
Natural Gas Distribution | Physical commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | 5,926 | 1,232 | (12,303) |
Natural Gas Distribution | Financial commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | (7,700) | 1,844 | 5,595 |
Natural Gas Distribution | Interest rate contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | 0 | 8,467 | 14,606 |
Home Services and Other | Interest rate contract | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in income on derivatives | $ (233) | $ 334 | $ 0 |
DERIVATIVE INSTRUMENTS - VOLUME
DERIVATIVE INSTRUMENTS - VOLUME (Details) certificate in Thousands, $ in Millions | Sep. 30, 2019USD ($)Bcfcertificate | Sep. 30, 2018Bcf |
Foreign currency contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ | $ 6.2 | |
Natural Gas Distribution | Long | Futures | ||
Derivative [Line Items] | ||
Outstanding long (short) derivatives (in Bcf) | 27.6 | 27.9 |
Natural Gas Distribution | Long | Physical | ||
Derivative [Line Items] | ||
Outstanding long (short) derivatives (in Bcf) | 11.6 | 23.1 |
Energy Services | Physical commodity contracts | ||
Derivative [Line Items] | ||
Number of SRECs (in certificates) | certificate | (796) | |
Energy Services | Long | Physical | ||
Derivative [Line Items] | ||
Outstanding long (short) derivatives (in Bcf) | 44.5 | 51.2 |
Energy Services | Short | Futures | ||
Derivative [Line Items] | ||
Outstanding long (short) derivatives (in Bcf) | (29.6) | (7) |
DERIVATIVE INSTRUMENTS - BROKER
DERIVATIVE INSTRUMENTS - BROKER MARGIN DEPOSITS (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Natural Gas Distribution | ||
Derivative [Line Items] | ||
Broker margin - Current assets | $ 1,982 | $ 2,038 |
Energy Services | ||
Derivative [Line Items] | ||
Broker margin - Current assets | $ 71,741 | $ 51,681 |
DERIVATIVE INSTRUMENTS - CREDIT
DERIVATIVE INSTRUMENTS - CREDIT RISK EXPOSURE (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | $ 217,199,000 | |
Derivative, net liability position, aggregate fair value | 186,000 | $ 124,000 |
Additional collateral, aggregate fair value | 0 | $ 33,000 |
Investment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 141,930,000 | |
Noninvestment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 17,997,000 | |
Internally-rated investment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | 27,948,000 | |
Internally-rated noninvestment grade | ||
Credit Risk Exposure [Line Items] | ||
Gross Credit Exposure | $ 29,324,000 |
FAIR VALUE - DEBT (Details)
FAIR VALUE - DEBT (Details) - Significant Other Observable Inputs (Level 2) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
NJNG | Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 892,845 | $ 672,045 |
NJNG | Fair market value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 984,129 | 669,162 |
NJR | Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 550,000 | 500,000 |
NJR | Fair market value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 584,735 | $ 488,889 |
FAIR VALUE - HIERARCHY (Details
FAIR VALUE - HIERARCHY (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Assets | ||
Available for sale equity securities | $ 0 | $ 32,917 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Available for sale equity securities | 32,917 | |
Other | 1,706 | 1,217 |
Total assets at fair value | 34,235 | 72,090 |
Liabilities | ||
Total liabilities at fair value | 76,444 | 69,634 |
Fair Value, Measurements, Recurring | Physical commodity contracts | ||
Assets | ||
Derivative assets | 8,624 | 11,682 |
Liabilities | ||
Derivative liabilities | 40,426 | 29,666 |
Fair Value, Measurements, Recurring | Financial commodity contracts | ||
Assets | ||
Derivative assets | 23,904 | 25,893 |
Liabilities | ||
Derivative liabilities | 35,732 | 39,724 |
Fair Value, Measurements, Recurring | Foreign currency contracts | ||
Assets | ||
Derivative assets | 1 | |
Liabilities | ||
Derivative liabilities | 286 | 244 |
Fair Value, Measurements, Recurring | Interest rate contract | ||
Assets | ||
Derivative assets | 381 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Available for sale equity securities | 32,917 | |
Other | 1,706 | 1,217 |
Total assets at fair value | 21,734 | 53,002 |
Liabilities | ||
Total liabilities at fair value | 35,732 | 39,724 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Physical commodity contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Financial commodity contracts | ||
Assets | ||
Derivative assets | 20,028 | 18,868 |
Liabilities | ||
Derivative liabilities | 35,732 | 39,724 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency contracts | ||
Assets | ||
Derivative assets | 0 | |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate contract | ||
Assets | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Available for sale equity securities | 0 | |
Other | 0 | 0 |
Total assets at fair value | 12,501 | 19,088 |
Liabilities | ||
Total liabilities at fair value | 40,712 | 29,910 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Physical commodity contracts | ||
Assets | ||
Derivative assets | 8,624 | 11,682 |
Liabilities | ||
Derivative liabilities | 40,426 | 29,666 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Financial commodity contracts | ||
Assets | ||
Derivative assets | 3,876 | 7,025 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign currency contracts | ||
Assets | ||
Derivative assets | 1 | |
Liabilities | ||
Derivative liabilities | 286 | 244 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate contract | ||
Assets | ||
Derivative assets | 381 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Available for sale equity securities | 0 | |
Other | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities | ||
Total liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Physical commodity contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Financial commodity contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign currency contracts | ||
Assets | ||
Derivative assets | 0 | |
Liabilities | ||
Derivative liabilities | $ 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate contract | ||
Assets | ||
Derivative assets | $ 0 |
INVESTMENTS IN EQUITY INVESTE_3
INVESTMENTS IN EQUITY INVESTEES (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019USD ($)mi | Sep. 30, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Investments in equity investees | $ 200,268 | $ 190,866 |
Steckman Ridge | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in equity investees | 114,428 | 117,001 |
Outstanding principal balance | $ 70,400 | 70,400 |
Ownership interest, percent | 50.00% | |
PennEast | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in equity investees | $ 85,840 | $ 73,865 |
Ownership interest, percent | 20.00% | |
Construction plan, pipeline distance (in miles) | mi | 120 | |
NJR Pipeline | PennEast | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership interest, percent | 20.00% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income, as reported | $ 18,086 | $ (8,402) | $ 73,573 | $ 86,248 | $ (16,255) | $ (14,274) | $ 140,266 | $ 123,699 | $ 169,505 | $ 233,436 | $ 132,065 |
Basic earnings per share | |||||||||||
Weighted average shares of common stock outstanding-basic (in shares) | 89,242,000 | 87,689,000 | 86,321,000 | ||||||||
Basic earnings per common share (in dollars per share) | $ 0.20 | $ (0.09) | $ 0.83 | $ 0.97 | $ (0.18) | $ (0.16) | $ 1.60 | $ 1.42 | $ 1.90 | $ 2.66 | $ 1.53 |
Diluted earnings per share | |||||||||||
Weighted average shares of common stock outstanding-basic (in shares) | 89,242,000 | 87,689,000 | 86,321,000 | ||||||||
Incremental shares (in shares) | 374,000 | 626,000 | 823,000 | ||||||||
Weighted average shares of common stock outstanding-diluted (in shares) | 89,616,000 | 88,315,000 | 87,144,000 | ||||||||
Diluted earnings per common share (in dollars per share) | $ 0.20 | $ (0.09) | $ 0.82 | $ 0.97 | $ (0.18) | $ (0.16) | $ 1.59 | $ 1.42 | $ 1.89 | $ 2.64 | $ 1.52 |
Anti-dilutive securities excluded from the calculation of diluted earnings per share (in shares) | 0 | 0 | 0 |
DEBT - SCHEDULE OF LONG-TERM DE
DEBT - SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) | Sep. 30, 2019 | Aug. 15, 2019 | Jul. 17, 2019 | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 1,537,177,000 | $ 1,180,619,000 | ||
NJNG | ||||
Debt Instrument [Line Items] | ||||
Less: Debt issuance costs | (9,027,000) | (6,515,000) | ||
Less: Current maturities of long-term debt | (10,420,000) | (9,502,000) | ||
Total long-term debt | 908,779,000 | 691,965,000 | ||
NJNG | First mortgage bonds: | Series OO | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 46,500,000 | 46,500,000 | ||
Stated interest rate | 3.00% | |||
NJNG | First mortgage bonds: | Series PP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 50,000,000 | 50,000,000 | ||
Stated interest rate | 3.15% | |||
NJNG | First mortgage bonds: | Series QQ | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 70,000,000 | 70,000,000 | ||
Stated interest rate | 3.58% | |||
NJNG | First mortgage bonds: | Series RR | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 55,000,000 | 55,000,000 | ||
Stated interest rate | 4.61% | |||
NJNG | First mortgage bonds: | Series SS | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 50,000,000 | 50,000,000 | ||
Stated interest rate | 2.82% | |||
NJNG | First mortgage bonds: | Series TT | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 100,000,000 | 100,000,000 | ||
Stated interest rate | 3.66% | |||
NJNG | First mortgage bonds: | Series UU | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 125,000,000 | 125,000,000 | ||
Stated interest rate | 3.63% | |||
NJNG | First mortgage bonds: | Series VV | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 125,000,000 | 125,000,000 | ||
Stated interest rate | 4.01% | |||
NJNG | First mortgage bonds: | Series WW | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 10,300,000 | 0 | ||
Stated interest rate | 3.50% | |||
NJNG | First mortgage bonds: | Series XX | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 10,500,000 | 0 | ||
Stated interest rate | 3.38% | |||
NJNG | First mortgage bonds: | Series YY | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 15,000,000 | 0 | ||
Stated interest rate | 2.45% | |||
NJNG | First mortgage bonds: | Series ZZ | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 100,000,000 | 0 | ||
Stated interest rate | 3.76% | |||
NJNG | First mortgage bonds: | Series AAA | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 85,000,000 | 0 | ||
Stated interest rate | 3.86% | |||
NJNG | First mortgage bonds: | Series BBB (formally MM) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 9,545,000 | 9,545,000 | ||
Stated interest rate | 2.75% | |||
NJNG | First mortgage bonds: | Series CCC (formally NN) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 41,000,000 | 41,000,000 | ||
Stated interest rate | 3.00% | |||
NJNG | Capital lease obligations | Capital lease obligation-buildings | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 5,637,000 | 8,749,000 | ||
NJNG | Capital lease obligations | Capital lease obligation-meters | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 29,744,000 | 27,188,000 | ||
NJR | ||||
Debt Instrument [Line Items] | ||||
Less: Debt issuance costs | (2,004,000) | (1,136,000) | ||
Less: Current maturities of long-term debt | 0 | (100,000,000) | ||
Total long-term debt | 547,996,000 | 398,864,000 | ||
NJR | Unsecured senior notes 3.25% | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 50,000,000 | 50,000,000 | ||
Stated interest rate | 3.25% | |||
NJR | Unsecured senior notes 3.48% | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 100,000,000 | 100,000,000 | ||
Stated interest rate | 3.48% | |||
NJR | Unsecured senior notes 3.20% | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 50,000,000 | 50,000,000 | ||
Stated interest rate | 3.20% | |||
NJR | Unsecured senior notes 3.54% | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 100,000,000 | 100,000,000 | ||
Stated interest rate | 3.54% | |||
NJR | Unsecured senior notes 3.96% | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 100,000,000 | 100,000,000 | ||
Stated interest rate | 3.96% | |||
NJR | Unsecured senior notes 3.29% | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 150,000,000 | $ 100,000,000 | $ 50,000,000 | 0 |
Stated interest rate | 3.29% | 3.29% | ||
NJR | Term loan | Credit Agreement Due August 16, 2019 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 100,000,000 | ||
Clean Energy Ventures | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 91,401,000 | 103,923,000 | ||
Less: Current maturities of long-term debt | (10,999,000) | (14,133,000) | ||
Total Clean Energy Ventures long-term debt | $ 80,402,000 | $ 89,790,000 |
DEBT - REDEMPTION REQUIREMENTS
DEBT - REDEMPTION REQUIREMENTS (Details) $ in Thousands | Sep. 30, 2019USD ($) |
NJR | |
Debt Instrument [Line Items] | |
2020 | $ 0 |
2021 | 0 |
2022 | 50,000 |
2023 | 50,000 |
2024 | 100,000 |
Thereafter | 350,000 |
NJNG | |
Debt Instrument [Line Items] | |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 70,000 |
Thereafter | $ 822,845 |
DEBT - FIRST MORTGAGE BONDS (De
DEBT - FIRST MORTGAGE BONDS (Details) | Aug. 01, 2019USD ($)First_mortgage_bond | Apr. 18, 2019USD ($)First_mortgage_bond | Sep. 30, 2019USD ($) | Jul. 17, 2019USD ($) | Sep. 30, 2018USD ($) |
Debt Instrument [Line Items] | |||||
NJBPU dividend restriction, equity to capitalization ratio | 0.30 | ||||
Debt to equity ratio | 0.563 | ||||
First mortgage bonds: | |||||
Debt Instrument [Line Items] | |||||
Maximum amount that can be issued | $ 1,000,000,000 | ||||
NJNG | |||||
Debt Instrument [Line Items] | |||||
Number of first mortgage bonds completed | First_mortgage_bond | 3 | 3 | |||
Proceeds from reissuance of first mortgage bond | $ 97,000,000 | $ 35,800,000 | |||
NJNG | First mortgage bonds: | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 3.02% | ||||
NJNG | First mortgage bonds: | Series OO | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 46,500,000 | $ 46,500,000 | |||
Stated interest rate | 3.00% | ||||
NJNG | First mortgage bonds: | Series CCC (formally NN) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 41,000,000 | 41,000,000 | |||
Stated interest rate | 3.00% | ||||
NJNG | First mortgage bonds: | Series BBB (formally MM) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 9,545,000 | $ 9,545,000 | |||
Stated interest rate | 2.75% | ||||
NJNG | Unsecured Senior Note 3.76% | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 100,000,000 | ||||
Stated interest rate | 3.76% | ||||
NJNG | Unsecured Senior Note 3.86% | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 85,000,000 | ||||
Stated interest rate | 3.86% |
DEBT - SALE-LEASEBACKS (Details
DEBT - SALE-LEASEBACKS (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Sale Leaseback Transaction, Net Proceeds, Financing Activities, Solar | $ 0 | $ 71,538 | $ 32,901 |
Proceeds from sale-leaseback transaction | $ 9,895 | 7,820 | 9,587 |
NJNG | |||
Debt Instrument [Line Items] | |||
Sale leaseback transaction, lease term | 25 years 6 months | ||
Sale leaseback transaction, lease renewal term | 5 years | ||
Sale leaseback transaction, maximum lease renewal term (as a percent) | 4 | ||
Proceeds from sale-leaseback transaction | $ 9,900 | 7,800 | 9,600 |
Sale leaseback transaction, other payments required | $ 1,100 | 2,200 | 2,400 |
Clean Energy Ventures | |||
Debt Instrument [Line Items] | |||
Sale Leaseback Transaction, Net Proceeds, Financing Activities, Solar | $ 71,500 | $ 32,900 |
DEBT - CONTRACTUAL COMMITMENTS
DEBT - CONTRACTUAL COMMITMENTS (Details) $ in Thousands | Sep. 30, 2019USD ($) |
NJR | |
Debt Instrument [Line Items] | |
2020 | $ 11,707 |
2021 | 6,603 |
2022 | 7,494 |
2023 | 3,995 |
2024 | 4,652 |
Thereafter | 4,173 |
Subtotal | 38,624 |
Less: Interest component | (3,243) |
Total | 35,381 |
Clean Energy Ventures | |
Debt Instrument [Line Items] | |
2020 | 7,830 |
2021 | 7,803 |
2022 | 7,802 |
2023 | 7,878 |
2024 | 7,359 |
Thereafter | 30,945 |
Subtotal | 69,617 |
Less: Interest component | (22,971) |
Total | $ 46,646 |
DEBT - NJR LONG-TERM DEBT (Deta
DEBT - NJR LONG-TERM DEBT (Details) - USD ($) | 12 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Aug. 15, 2019 | Jul. 17, 2019 | Jan. 26, 2018 | |
Debt Instrument [Line Items] | ||||||
Proceeds from sale-leaseback transaction - solar | $ 0 | $ 71,538,000 | $ 32,901,000 | |||
Clean Energy Ventures | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from sale-leaseback transaction - solar | 71,500,000 | $ 32,900,000 | ||||
Interest rate swap | Credit Agreement Due August 16, 2019 | Term loan | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 100,000,000 | |||||
Fixed treasury rate | 2.84% | |||||
NJR | Unsecured senior notes 3.29% | ||||||
Debt Instrument [Line Items] | ||||||
Note purchase agreement amount | $ 150,000,000 | |||||
Long-term debt | $ 150,000,000 | 0 | $ 100,000,000 | $ 50,000,000 | ||
Stated interest rate | 3.29% | 3.29% | ||||
NJR | Credit Agreement Due August 16, 2019 | Term loan | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 0 | $ 100,000,000 | ||||
Minimum | Clean Energy Ventures | ||||||
Debt Instrument [Line Items] | ||||||
Term of lease | 6 years | |||||
Maximum | Clean Energy Ventures | ||||||
Debt Instrument [Line Items] | ||||||
Term of lease | 15 years |
DEBT - SHORT-TERM BANK FACILITI
DEBT - SHORT-TERM BANK FACILITIES (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 05, 2018 | Sep. 30, 2018 | |
NJR | Letters of credit | |||
Short-term Debt [Line Items] | |||
Letters of credit outstanding, amount | $ 14,900,000 | ||
NJR | Notes payable to banks | |||
Short-term Debt [Line Items] | |||
Outstanding at end of period | $ 25,450,000 | $ 87,950,000 | |
Weighted average interest rate at end of period | 3.04% | 3.07% | |
NJR | Bank revolving credit facilities | |||
Short-term Debt [Line Items] | |||
Commitment fee percentage | 0.075% | ||
NJNG | Commercial paper | |||
Short-term Debt [Line Items] | |||
Outstanding at end of period | $ 0 | $ 64,000,000 | |
Weighted average interest rate at end of period | 0.00% | 2.18% | |
Amount available at end of period | $ 249,269,000 | $ 185,269,000 | |
NJNG | Letters of credit | |||
Short-term Debt [Line Items] | |||
Letters of credit outstanding, amount | $ 731,000 | 731,000 | |
NJNG | Bank revolving credit facilities | |||
Short-term Debt [Line Items] | |||
Commitment fee percentage | 0.075% | ||
Bank revolving credit facilities | NJR | |||
Short-term Debt [Line Items] | |||
Amount available at end of period | $ 394,800,000 | 322,144,000 | |
Bank revolving credit facilities | NJR | Committed Credit Facilities Due September 2020 | |||
Short-term Debt [Line Items] | |||
Bank revolving credit facilities | 425,000,000 | ||
Bank revolving credit facilities | NJNG | Committed Credit Facilities Due May 2019 | |||
Short-term Debt [Line Items] | |||
Bank revolving credit facilities | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 |
DEBT - NJR SHORT-TERM DEBT (Det
DEBT - NJR SHORT-TERM DEBT (Details) - NJR | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($)Mutual_optiondebt_instrument | Apr. 18, 2019USD ($) | Dec. 05, 2018USD ($) | |
Revolving line of credit, 4 months | ||||
Short-term Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | |||
Debt instrument, term | 4 months | |||
Line of credit facility, fair value of amount outstanding | $ 0 | |||
Letters of Credit on Behalf of NJRES | ||||
Short-term Debt [Line Items] | ||||
Number of debt instruments (in debt instruments) | debt_instrument | 2 | |||
Letters of credit outstanding, amount | $ 4,800,000 | |||
Bank revolving credit facilities | ||||
Short-term Debt [Line Items] | ||||
Number of mutual options | Mutual_option | 2 | |||
Number of mutual options, extension period | 1 year | |||
Line of credit facility, maximum borrowing capacity, incremental increase | $ 50,000,000 | |||
Line of credit facility, maximum borrowing capacity, maximum increase | 250,000,000 | |||
Committed Credit Facilities Due December 2023 | Bank revolving credit facilities | ||||
Short-term Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 425,000,000 | $ 425,000,000 |
DEBT - NJNG SHORT-TERM DEBT (De
DEBT - NJNG SHORT-TERM DEBT (Details) - NJNG | 12 Months Ended | ||
Sep. 30, 2019USD ($)Mutual_optiondebt_instrument | Dec. 05, 2018USD ($) | Sep. 30, 2018USD ($) | |
Letters of credit | |||
Line of Credit Facility [Line Items] | |||
Number of debt instruments (in debt instruments) | debt_instrument | 2 | ||
Letters of credit outstanding, amount | $ 731,000 | $ 731,000 | |
Bank revolving credit facilities | |||
Line of Credit Facility [Line Items] | |||
Number of mutual options | Mutual_option | 2 | ||
Number of mutual options, extension period | 1 year | ||
Line of credit facility, maximum borrowing capacity, incremental increase | $ 50,000,000 | ||
Line of credit facility, maximum borrowing capacity, maximum increase | 100,000,000 | ||
Committed Credit Facilities Due May 2019 | Bank revolving credit facilities | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 |
STOCK-BASED COMPENSATION - NARR
STOCK-BASED COMPENSATION - NARRATIVE (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future issuance (in shares) | 3,291,481 | |||
Performance Shares, Market Condition Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 36,392 | 31,836 | 44,576 | |
Performance Shares, Subject to Performance Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 63,870 | 59,341 | 51,931 | |
Deferred compensation related to unvested performance shares, period | 1 year 8 months 12 days | |||
Performance share awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 130,509 | 145,176 | 156,587 | 179,916 |
Deferred compensation related to unvested restricted and performance shares | $ 2,400 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 58,156 | 44,168 | 51,154 | 73,071 |
Deferred compensation related to unvested restricted and performance shares | $ 943 | |||
Deferred compensation related to unvested performance shares, period | 1 year 10 months 24 days | |||
Vesting September 30, 2021 | Performance Shares, Subject to Performance Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 33,844 | |||
Vesting Annually Over Three Year Period Beginning September 30, 2019 | Performance Shares, Subject to Performance Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 30,026 | |||
Award vesting period | 3 years | |||
Vesting September 30, 2020 | Performance Shares, Subject to Performance Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 29,608 | |||
Vesting Annually Over Three Year Period Beginning September 30, 2018 | Performance Shares, Subject to Performance Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 29,733 | |||
Award vesting period | 3 years | |||
Vesting September 30, 2019 | Performance Shares, Subject to Performance Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 25,806 | |||
Vesting Annually Over Three Year Period Beginning September 30, 2017 | Performance Shares, Subject to Performance Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 26,125 | |||
Award vesting period | 3 years | |||
Vesting Annually Over Three Year Period Beginning October 15, 2019 | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 29,222 | |||
Award vesting period | 3 years | |||
Vesting Annually Over Three Year Period Beginning April 2020 | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 6,062 | |||
Award vesting period | 3 years | |||
Vesting Annually Over Three Year Period Beginning October 15, 2018 | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 27,949 | |||
Award vesting period | 3 years | |||
Vesting Annually Over Three Year Period Beginning October 2017 | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 22,591 | |||
Vesting Annually Over Three Year Period Beginning May 8, 2018 | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted but not issued (in shares) | 6,143 |
STOCK-BASED COMPENSATION - STOC
STOCK-BASED COMPENSATION - STOCK-BASED COMPENSATION EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense included in operation and maintenance expense | $ 9,796 | $ 12,845 | $ 5,807 |
Income tax benefit | (2,848) | (3,734) | (2,372) |
Total, net of tax | 6,948 | 9,111 | 3,435 |
Tax benefit of delivered shares from stock based compensation | 1,290 | 2,950 | 1,285 |
Performance share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense included in operation and maintenance expense | 5,804 | 3,526 | 2,614 |
Restricted and non-restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense included in operation and maintenance expense | 2,492 | 2,191 | 1,732 |
Deferred retention stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense included in operation and maintenance expense | $ 1,500 | $ 7,128 | $ 1,461 |
STOCK-BASED COMPENSATION - PERF
STOCK-BASED COMPENSATION - PERFORMANCE SHARES AND RESTRICTED STOCK ACTIVITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Nov. 12, 2019 | Nov. 13, 2018 | Nov. 14, 2017 | |
Performance share awards | ||||||
Shares | ||||||
Outstanding at beginning of period (in shares) | 145,176 | 156,587 | 179,916 | |||
Granted (in shares) | 100,262 | 91,177 | 96,507 | |||
Vested (in shares) | (103,009) | (100,146) | (95,407) | |||
Cancelled/forfeited (in shares) | (11,920) | (2,442) | (24,429) | |||
Outstanding at end of period (in shares) | 130,509 | 145,176 | 156,587 | |||
Weighted Average Grant Date Fair Value | ||||||
Outstanding at beginning of period (in dollars per share) | $ 39.67 | $ 30.12 | $ 27.47 | |||
Granted (in dollars per share) | 47.98 | 44.67 | 33.57 | |||
Vested (in dollars per share) | 38.52 | 29.49 | 28.88 | |||
Cancelled/forfeited (in dollars per share) | 44.34 | 31.45 | 29.14 | |||
Outstanding at end of period (in dollars per share) | $ 46.53 | $ 39.67 | $ 30.12 | |||
Total Fair Value of Vested Shares | $ 4,622 | $ 4,714 | $ 4,179 | |||
Percent of awards to common stock | 121.00% | 119.00% | ||||
Number of common shared issued (in shares) | 39,694 | 36,498 | ||||
Percent of awards to common stock, target | 100.00% | 100.00% | ||||
Performance share awards | Minimum | ||||||
Weighted Average Grant Date Fair Value | ||||||
Percent of awards to common stock | 0.00% | |||||
Performance share awards | Maximum | ||||||
Weighted Average Grant Date Fair Value | ||||||
Percent of awards to common stock | 150.00% | |||||
Performance Shares, Subject to Performance Conditions | ||||||
Shares | ||||||
Outstanding at beginning of period (in shares) | 59,341 | 51,931 | ||||
Outstanding at end of period (in shares) | 63,870 | 59,341 | 51,931 | |||
Weighted Average Grant Date Fair Value | ||||||
Percent of awards to common stock | 108.44% | |||||
Number of common shared issued (in shares) | 39,595 | |||||
Performance-based Restricted Stock | ||||||
Weighted Average Grant Date Fair Value | ||||||
Percent of awards to common stock | 100.00% | 100.00% | ||||
Number of common shared issued (in shares) | 36,998 | 28,223 | ||||
Performance Shares, TSR | ||||||
Weighted Average Grant Date Fair Value | ||||||
Percent of awards to common stock | 99.00% | |||||
Number of common shared issued (in shares) | 38,660 | |||||
Restricted Stock | ||||||
Shares | ||||||
Outstanding at beginning of period (in shares) | 44,168 | 51,154 | 73,071 | |||
Granted (in shares) | 35,284 | 27,949 | 28,734 | |||
Vested (in shares) | (20,748) | (33,815) | (38,752) | |||
Cancelled/forfeited (in shares) | (548) | (1,120) | (11,899) | |||
Outstanding at end of period (in shares) | 58,156 | 44,168 | 51,154 | |||
Weighted Average Grant Date Fair Value | ||||||
Outstanding at beginning of period (in dollars per share) | $ 41.24 | $ 32.40 | $ 29.09 | |||
Granted (in dollars per share) | 48.24 | 45 | 35.79 | |||
Vested (in dollars per share) | 39.26 | 31.23 | 28.92 | |||
Cancelled/forfeited (in dollars per share) | 42.96 | 33.54 | 31.56 | |||
Outstanding at end of period (in dollars per share) | $ 46.18 | $ 41.24 | $ 32.40 | |||
Total Fair Value of Vested Shares | $ 935 | $ 1,438 | $ 1,344 | |||
Subsequent Event | Performance share awards | ||||||
Weighted Average Grant Date Fair Value | ||||||
Percent of awards to common stock | 117.00% | |||||
Number of common shared issued (in shares) | 26,413 | |||||
Percent of awards to common stock, target | 100.00% | |||||
Subsequent Event | Performance-based Restricted Stock | ||||||
Weighted Average Grant Date Fair Value | ||||||
Percent of awards to common stock | 100.00% | |||||
Number of common shared issued (in shares) | 24,468 | |||||
Subsequent Event | Performance Shares, TSR | ||||||
Weighted Average Grant Date Fair Value | ||||||
Percent of awards to common stock | 119.00% | |||||
Number of common shared issued (in shares) | 43,641 |
STOCK-BASED COMPENSATION - DEFE
STOCK-BASED COMPENSATION - DEFERRED RETENTION STOCK/NON-EMPLOYEE DIRECTOR STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Deferred retention stock | |||
Shares | |||
Outstanding at beginning of period (in shares) | 242,082 | 672,578 | 662,479 |
Number of shares granted (in shares) | 167,407 | 24,167 | 63,977 |
Delivered (in shares) | (158,733) | (452,694) | (53,878) |
Forfeited (in shares) | (7,195) | (1,969) | |
Outstanding at end of period (in shares) | 243,561 | 242,082 | 672,578 |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of period (in dollars per share) | $ 32.99 | $ 29.54 | $ 29.06 |
Granted/Vested (in dollars per share) | 47.95 | 45 | 35.64 |
Delivered (in dollars per share) | 30.32 | 29.42 | 23.11 |
Forfeited (in dollars per share) | 44.41 | 35.56 | |
Outstanding at end of period (in dollars per share) | $ 44.67 | $ 32.99 | $ 29.54 |
Total Fair Value of Vested Shares | |||
Delivered | $ 7,145 | $ 19,581 | $ 1,774 |
Scheduled to Vest Immediately | Director | |||
Shares | |||
Number of shares granted (in shares) | 26,165 | 26,524 | 27,972 |
Weighted Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 44.80 | $ 39.85 | $ 35.59 |
Total Fair Value of Vested Shares | |||
Compensation costs not yet recognized | $ 311 |
EMPLOYEE BENEFIT PLANS - PENSIO
EMPLOYEE BENEFIT PLANS - PENSION AND OTHER POSTEMPLOYMENT BENEFIT PLANS, NARRATIVE (Details) | 12 Months Ended | ||
Sep. 30, 2019USD ($)plan | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of noncontributory defined benefit retirement plans (in plans) | plan | 2 | ||
Required number of years of service (more than) | 1 year | ||
Years of service and average compensation, basis period for plan benefits | 60 months | ||
Long-term real rate of return on assets (as a percent) | 5.00% | ||
Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer discretionary contributions | $ 0 | $ 0 | $ 0 |
Employer contributions | 231,000 | 137,000 | |
OPEB | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer contributions | 7,926,000 | 6,222,000 | $ 6,000,000 |
OPEB | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Estimated future employer contributions over the next five years | 5,000,000 | ||
OPEB | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Estimated future employer contributions over the next five years | $ 10,000,000 | ||
Special Termination Benefits | Voluntary Early Retirement Program | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension and other postretirement benefits cost | 4,200,000 | ||
Other Severance Benefits | Voluntary Early Retirement Program | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension and other postretirement benefits cost | 2,200,000 | ||
NJNG | Voluntary Early Retirement Program | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension and other postretirement benefits cost | 5,100,000 | ||
Home Services and Other | Voluntary Early Retirement Program | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension and other postretirement benefits cost | $ 1,300,000 |
EMPLOYEE BENEFIT PLANS - SUMMAR
EMPLOYEE BENEFIT PLANS - SUMMARY OF CHANGE IN FUNDED STATUS AND LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Postemployment employee (liability) | |||
Noncurrent | $ (246,517) | $ (137,007) | |
Pension | |||
Change in Benefit Obligation | |||
Benefit obligation at beginning of year | 298,575 | 297,835 | |
Service cost | 7,381 | 8,139 | $ 8,347 |
Interest cost | 12,173 | 10,493 | 9,771 |
Plan participants’ contributions | 43 | 45 | |
Special termination benefit | 0 | 3,730 | 0 |
Actuarial loss (gain) | 52,549 | (12,846) | |
Benefits paid, net of retiree subsidies received | (10,244) | (8,821) | |
Benefit obligation at end of year | 360,477 | 298,575 | 297,835 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 279,410 | 271,743 | |
Actual return on plan assets | 19,194 | 16,306 | |
Employer contributions | 231 | 137 | |
Benefits paid, net of plan participants’ contributions | (10,201) | (8,776) | |
Fair value of plan assets at end of year | 288,634 | 279,410 | 271,743 |
Funded status | (71,843) | (19,165) | |
Postemployment employee (liability) | |||
Current | (603) | (294) | |
Noncurrent | (71,240) | (18,871) | |
Total | (71,843) | (19,165) | |
OPEB | |||
Change in Benefit Obligation | |||
Benefit obligation at beginning of year | 196,785 | 175,090 | |
Service cost | 4,404 | 4,607 | 4,380 |
Interest cost | 8,324 | 6,365 | 5,545 |
Plan participants’ contributions | 210 | 161 | |
Special termination benefit | 0 | 490 | 0 |
Actuarial loss (gain) | 54,700 | 15,145 | |
Benefits paid, net of retiree subsidies received | (4,420) | (5,073) | |
Benefit obligation at end of year | 260,003 | 196,785 | 175,090 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 77,980 | 71,534 | |
Actual return on plan assets | 2,499 | 5,284 | |
Employer contributions | 7,926 | 6,222 | 6,000 |
Benefits paid, net of plan participants’ contributions | (4,479) | (5,060) | |
Fair value of plan assets at end of year | 83,926 | 77,980 | $ 71,534 |
Funded status | (176,077) | (118,805) | |
Postemployment employee (liability) | |||
Current | (800) | (669) | |
Noncurrent | (175,277) | (118,136) | |
Total | $ (176,077) | $ (118,805) |
EMPLOYEE BENEFIT PLANS - REGULA
EMPLOYEE BENEFIT PLANS - REGULATORY ASSETS AND AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pension | |||
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) | $ (5,765) | $ (7,537) | $ (8,827) |
Prior service (cost) credit | (102) | (106) | (111) |
OPEB | |||
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) | (6,466) | (4,660) | (4,370) |
Prior service (cost) credit | 365 | 365 | 365 |
Regulatory Assets | Pension | |||
Regulatory Assets and Accumulated Other Comprehensive Income (Loss) | |||
Regulatory Assets, Balance at beginning of period | 66,233 | 78,605 | |
Amounts arising during the period, Net actuarial loss (gain) | 38,137 | (6,090) | |
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) | (4,662) | (6,177) | |
Prior service (cost) credit | (102) | (105) | |
Regulatory Assets, Balance at end of period | 99,606 | 66,233 | 78,605 |
Regulatory Assets | OPEB | |||
Regulatory Assets and Accumulated Other Comprehensive Income (Loss) | |||
Regulatory Assets, Balance at beginning of period | 68,685 | 60,460 | |
Amounts arising during the period, Net actuarial loss (gain) | 48,452 | 12,378 | |
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) | (5,820) | (4,464) | |
Prior service (cost) credit | 312 | 311 | |
Regulatory Assets, Balance at end of period | 111,629 | 68,685 | 60,460 |
Accumulated Other Comprehensive Income (Loss) | Pension | |||
Regulatory Assets and Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Balance at beginning of period | 14,633 | 19,415 | |
Amounts arising during the period, Net actuarial loss (gain) | 14,271 | (3,422) | |
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) | (1,103) | (1,359) | |
Prior service (cost) credit | 0 | (1) | |
Accumulated Other Comprehensive Income (Loss), Balance at end of period | 27,801 | 14,633 | 19,415 |
Accumulated Other Comprehensive Income (Loss) | OPEB | |||
Regulatory Assets and Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Balance at beginning of period | 7,659 | 4,967 | |
Amounts arising during the period, Net actuarial loss (gain) | 9,264 | 2,834 | |
Amounts amortized to net periodic costs: | |||
Net actuarial (loss) | (648) | (196) | |
Prior service (cost) credit | 53 | 54 | |
Accumulated Other Comprehensive Income (Loss), Balance at end of period | $ 16,328 | $ 7,659 | $ 4,967 |
EMPLOYEE BENEFIT PLANS - AMOUNT
EMPLOYEE BENEFIT PLANS - AMOUNTS NOT YET RECOGNIZED AS NET PERIODIC COST (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Regulatory Assets | Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial loss | $ 99,139 | $ 65,664 | |
Prior service cost (credit) | 467 | 569 | |
Regulatory Assets, Total | 99,606 | 66,233 | $ 78,605 |
Regulatory Assets | OPEB | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial loss | 112,109 | 69,477 | |
Prior service cost (credit) | (480) | (792) | |
Regulatory Assets, Total | 111,629 | 68,685 | 60,460 |
Accumulated Other Comprehensive Income (Loss) | Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial loss | 27,801 | 14,633 | |
Prior service cost (credit) | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss), Total | 27,801 | 14,633 | 19,415 |
Accumulated Other Comprehensive Income (Loss) | OPEB | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial loss | 16,367 | 7,750 | |
Prior service cost (credit) | (39) | (91) | |
Accumulated Other Comprehensive Income (Loss), Total | $ 16,328 | $ 7,659 | $ 4,967 |
EMPLOYEE BENEFIT PLANS - AMOU_2
EMPLOYEE BENEFIT PLANS - AMOUNTS EXPECTED TO BE RECOGNIZED IN NET PERIODIC BENEFIT COST (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Pension | |
Regulatory Assets | |
Net actuarial loss | $ 8,470 |
Prior service cost (credit) | 102 |
Total | 8,572 |
Accumulated Other Comprehensive Income (Loss) | |
Net actuarial loss | 2,514 |
Prior service cost (credit) | 0 |
Total | 2,514 |
OPEB | |
Regulatory Assets | |
Net actuarial loss | 10,055 |
Prior service cost (credit) | (182) |
Total | 9,873 |
Accumulated Other Comprehensive Income (Loss) | |
Net actuarial loss | 1,407 |
Prior service cost (credit) | (15) |
Total | $ 1,392 |
EMPLOYEE BENEFIT PLANS - ACCUMU
EMPLOYEE BENEFIT PLANS - ACCUMULATED BENEFIT OBLIGATION (Details) - Pension - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 360,477 | $ 298,575 |
Accumulated benefit obligation | 319,527 | 263,279 |
Fair value of plan assets | $ 288,634 | $ 279,410 |
EMPLOYEE BENEFIT PLANS - COMPON
EMPLOYEE BENEFIT PLANS - COMPONENTS OF NET PERIODIC COST (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 7,381 | $ 8,139 | $ 8,347 |
Interest cost | 12,173 | 10,493 | 9,771 |
Expected return on plan assets | (19,054) | (19,639) | (19,313) |
Recognized actuarial loss | 5,765 | 7,537 | 8,827 |
Prior service cost (credit) amortization | 102 | 106 | 111 |
Net periodic benefit cost | 6,367 | 6,636 | 7,743 |
Special termination benefit | 0 | 3,730 | 0 |
Net periodic benefit cost recognized as expense | 6,367 | 10,366 | 7,743 |
OPEB | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 4,404 | 4,607 | 4,380 |
Interest cost | 8,324 | 6,365 | 5,545 |
Expected return on plan assets | (5,515) | (5,352) | (4,767) |
Recognized actuarial loss | 6,466 | 4,660 | 4,370 |
Prior service cost (credit) amortization | (365) | (365) | (365) |
Net periodic benefit cost | 13,314 | 9,915 | 9,163 |
Special termination benefit | 0 | 490 | 0 |
Net periodic benefit cost recognized as expense | $ 13,314 | $ 10,405 | $ 9,163 |
EMPLOYEE BENEFIT PLANS - WEIGHT
EMPLOYEE BENEFIT PLANS - WEIGHTED AVERAGE ASSUMPTIONS (Details) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Represented | |||
Obligations: | |||
Compensation increase | 3.25% | 3.25% | |
Nonrepresented | |||
Obligations: | |||
Compensation increase | 3.50% | 3.50% | |
Pension | |||
Benefit costs: | |||
Expected asset return | 7.00% | 7.50% | 7.75% |
Pension | Represented | |||
Benefit costs: | |||
Discount rate | 4.36% | 4.04% | 3.96% |
Compensation increase | 3.25% | 3.25% | 3.25% |
Obligations: | |||
Discount rate | 3.37% | 4.36% | |
Compensation increase | 3.00% | 3.25% | 3.25% |
Pension | Nonrepresented | |||
Benefit costs: | |||
Discount rate | 4.35% | 4.03% | 3.94% |
Compensation increase | 3.50% | 3.50% | 3.50% |
Obligations: | |||
Discount rate | 3.35% | 4.35% | 4.03% |
Compensation increase | 3.50% | 3.50% | 3.50% |
OPEB | |||
Benefit costs: | |||
Expected asset return | 7.00% | 7.50% | 7.75% |
OPEB | Represented | |||
Benefit costs: | |||
Discount rate | 4.38% | 4.12% | 4.08% |
Compensation increase | 3.25% | 3.25% | 3.25% |
Obligations: | |||
Discount rate | 3.48% | 4.38% | 4.12% |
Compensation increase | 3.00% | ||
OPEB | Nonrepresented | |||
Benefit costs: | |||
Discount rate | 4.37% | 4.08% | 4.01% |
Compensation increase | 3.50% | 3.50% | 3.50% |
Obligations: | |||
Discount rate | 3.44% | 4.37% | 4.08% |
Compensation increase | 3.50% |
EMPLOYEE BENEFIT PLANS - ASSUME
EMPLOYEE BENEFIT PLANS - ASSUMED HCCTR (Details) - OPEB - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
HCCTR | 7.60% | 7.90% | 8.30% |
Ultimate HCCTR | 4.50% | 4.50% | 4.50% |
Effect of a 1 percentage point increase in the HCCTR on: | |||
Year-end benefit obligation | $ 49,061 | $ 36,260 | $ 32,019 |
Total service and interest cost | 2,923 | 2,482 | 2,468 |
Effect of a 1 percentage point decrease in the HCCTR on: | |||
Year-end benefit obligation | (38,747) | (28,743) | (25,466) |
Total service and interest costs | $ (2,250) | $ (1,937) | $ (1,909) |
EMPLOYEE BENEFIT PLANS - MIX AN
EMPLOYEE BENEFIT PLANS - MIX AND TARGETED ALLOCATION (Details) | Sep. 30, 2019 | Sep. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Assets | 100.00% | 100.00% |
U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 34.00% | |
Assets | 37.00% | 41.00% |
International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 17.00% | |
Assets | 17.00% | 19.00% |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 38.00% | |
Assets | 42.00% | 37.00% |
Other assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 11.00% | |
Assets | 4.00% | 3.00% |
EMPLOYEE BENEFIT PLANS - EXPECT
EMPLOYEE BENEFIT PLANS - EXPECTED BENEFIT PAYMENTS (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2020 | $ 12,234 |
2021 | 12,758 |
2022 | 13,585 |
2023 | 14,405 |
2024 | 15,210 |
2025 - 2029 | 90,726 |
OPEB | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2020 | 6,267 |
2021 | 6,804 |
2022 | 7,589 |
2023 | 8,249 |
2024 | 8,910 |
2025 - 2029 | $ 55,025 |
EMPLOYEE BENEFIT PLANS - ESTIMA
EMPLOYEE BENEFIT PLANS - ESTIMATED SUBSIDY PAYMENTS (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Defined Benefit Plan, Expected Future Prescription Drug Subsidy Receipt [Abstract] | |
2020 | $ 261 |
2021 | 286 |
2022 | 314 |
2023 | 350 |
2024 | 387 |
2025 - 2029 | $ 2,605 |
EMPLOYEE BENEFIT PLANS - FAIR V
EMPLOYEE BENEFIT PLANS - FAIR VALUE (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 288,634 | $ 279,410 | $ 271,743 |
OPEB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 83,926 | 77,980 | $ 71,534 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 276,014 | 277,993 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 8,207 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Large Cap Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 89,374 | 97,016 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Extended Market Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 16,548 | 17,741 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | International Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 49,929 | 53,516 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 15,794 | 11,754 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Core Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Opportunistic Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Ultra Short Duration | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | High Yield Bond Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 24,328 | 25,720 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Long Duration Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 80,041 | 64,039 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 80,484 | 77,599 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 21 | 2,273 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Large Cap Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 25,474 | 27,340 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Extended Market Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 5,036 | 5,014 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | International Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 14,564 | 14,874 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 4,764 | 3,264 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Core Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 10,570 | 7,970 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Opportunistic Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 6,365 | 4,798 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Ultra Short Duration | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 6,340 | 4,830 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | High Yield Bond Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 7,350 | 7,236 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Long Duration Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | ||
Fair Value, Inputs, Level 1, 2 and 3 | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 276,014 | 277,993 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 8,207 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Large Cap Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 89,374 | 97,016 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Extended Market Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 16,548 | 17,741 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | International Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 49,929 | 53,516 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 15,794 | 11,754 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Core Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Opportunistic Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Ultra Short Duration | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | High Yield Bond Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 24,328 | 25,720 | |
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Long Duration Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 80,041 | 64,039 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 80,484 | 77,599 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 21 | 2,273 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Large Cap Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 25,474 | 27,340 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Extended Market Index | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 5,036 | 5,014 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | International Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 14,564 | 14,874 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 4,764 | 3,264 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Core Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 10,570 | 7,970 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Opportunistic Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 6,365 | 4,798 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Ultra Short Duration | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 6,340 | 4,830 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | High Yield Bond Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 7,350 | 7,236 | |
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Long Duration Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Investments measured at net asset value | Pension | Common collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 12,620 | 1,417 | |
Investments measured at net asset value | OPEB | Common collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 3,442 | $ 381 |
EMPLOYEE BENEFIT PLANS - DEFINE
EMPLOYEE BENEFIT PLANS - DEFINED CONTRIBUTION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution, company match of employee contribution | 75.00% | ||
Defined contribution plan, maximum employer contribution by percentage of employee salary | 6.00% | ||
Defined contribution plan, cost recognized | $ 3,900 | $ 3,900 | $ 2,900 |
Deferred compensation arrangement with individual, employer contribution | $ 1,300 | $ 959 | $ 781 |
NJRHS | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution for employees not qualifying for the defined benefit plan | 4.00% | ||
NJRHS | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution for employees not qualifying for the defined benefit plan | 5.00% |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Estimated Accretion | ||
2018 | $ 1,669 | |
2019 | 1,745 | |
2020 | 1,823 | |
2021 | 1,908 | |
2022 | 1,994 | |
Total | 9,139 | |
NJNG | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at period beginning | 25,640 | $ 24,825 |
Accretion | 1,427 | 1,366 |
Additions | 135 | 1,880 |
Revisions in estimated cash flows | 0 | (2,133) |
Retirements | (258) | (298) |
Reclassification to held for sale or sold | 0 | 0 |
Balance at period end | 26,944 | 25,640 |
Clean Energy Ventures | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at period beginning | 3,048 | 6,595 |
Accretion | 150 | 198 |
Additions | 904 | 517 |
Revisions in estimated cash flows | 0 | 0 |
Retirements | 0 | 0 |
Reclassification to held for sale or sold | 0 | (4,262) |
Balance at period end | $ 4,102 | $ 3,048 |
INCOME TAXES - COMPONENTS OF IN
INCOME TAXES - COMPONENTS OF INCOME TAX PROVISION (BENEFIT) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Current: | |||
Federal | $ 10,933 | $ (2,848) | $ (16,023) |
State | 3,530 | 4,563 | 2,470 |
Deferred: | |||
Federal | 7,988 | (40,785) | 54,965 |
State | 5,833 | 6,731 | 11,457 |
Investment/production tax credits | (66,035) | (21,446) | (34,526) |
Income tax (benefit) provision | $ (37,751) | $ (53,785) | $ 18,343 |
INCOME TAXES - DEFERRED TAX ASS
INCOME TAXES - DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Deferred tax assets | ||
Investment tax credits | $ 156,153 | $ 123,258 |
Federal net operating losses | 24,173 | 24,500 |
State net operating losses | 25,302 | 34,754 |
Fair value of derivatives | 9,673 | 8,411 |
Postemployment benefits | 9,192 | 0 |
Incentive compensation | 7,231 | 4,646 |
Amortization of intangibles | 4,991 | 3,737 |
Conservation incentive plan | 0 | 1,955 |
Other | 3,105 | 8,213 |
Total deferred tax assets | 239,820 | 209,474 |
Deferred tax liabilities | ||
Property related items | (379,673) | (392,886) |
Remediation costs | (10,720) | (9,229) |
Equity investments | (21,730) | (31,956) |
Underrecovered gas costs | (2,657) | (1,156) |
Conservation incentive plan | (942) | 0 |
Postemployment benefits | 0 | (353) |
Other | (4,776) | (7,826) |
Total deferred tax liabilities | (420,498) | (443,406) |
Total net deferred tax liabilities | (180,678) | (233,932) |
NJNG | ||
Deferred tax liabilities | ||
Tax credit carryforward | 2,000 | 2,200 |
Clean Energy Ventures | ||
Deferred tax assets | ||
Federal net operating losses | 24,100 | |
Deferred tax liabilities | ||
Tax credit carryforward | $ 154,200 | $ 121,100 |
INCOME TAXES - INCOME TAX RECON
INCOME TAXES - INCOME TAX RECONCILIATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory income tax expense | $ 27,668 | $ 44,014 | $ 52,643 |
Change resulting from: | |||
Investment/production tax credits | (66,035) | (21,446) | (34,526) |
Cost of removal of assets placed in service prior to 1981 | (6,349) | (5,829) | (6,886) |
AFUDC equity | (2,313) | (2,117) | (2,624) |
State income taxes, net of federal benefit | 7,707 | 7,092 | 8,222 |
Basis adjustment of solar assets due to ITC | 6,500 | 1,080 | 4,256 |
Tax Act - utility excess deferred income taxes amortized | (3,573) | (1,786) | 0 |
Tax Act - nonutility excess deferred income taxes | 0 | (59,627) | 0 |
Tax Act - utility excess deferred income taxes refunded to customers | 0 | (14,323) | 0 |
Other | (1,356) | (843) | (2,742) |
Income tax (benefit) provision | $ (37,751) | $ (53,785) | $ 18,343 |
Effective income tax rate | (28.70%) | (29.90%) | 12.20% |
Federal statutory rate | 21.00% | 24.50% | 35.00% |
INCOME TAXES - ADDITIONAL INFOR
INCOME TAXES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Thousands | May 22, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2024 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2019 |
Income Tax Contingency [Line Items] | |||||||||
Investment tax credit, solar property, percentage | 30.00% | ||||||||
Income tax expense (benefit), solar investment tax credit, net of deferred taxes | $ (10,000) | ||||||||
Deferred tax assets, operating loss carryforwards, domestic, refundable and receivables | $ 22,800 | $ 23,000 | |||||||
Federal net operating losses | 24,173 | $ 24,500 | |||||||
Valuation allowance | $ 4,000 | ||||||||
Federal statutory rate | 21.00% | 24.50% | 35.00% | ||||||
Tax Cuts and Jobs Act, Income Tax Expense (Benefit) | $ 59,600 | ||||||||
Change in tax rate, deferred tax liability, provisional income tax (expense) benefit | 228,400 | ||||||||
Change in tax rate, deferred income taxes | 164,300 | ||||||||
Change in tax rate, provisional income tax expense (benefit) | 64,100 | ||||||||
Initial revaluation of excess deferred income taxes | $ 20,100 | ||||||||
Overcollection of taxes | 9,000 | ||||||||
Deferred income tax expense (benefit), remeasurement | 14,300 | ||||||||
Amortization of excess deferred income taxes | 1,800 | ||||||||
Revaluation of deferred income taxes not included in base rates | 880 | ||||||||
Regulatory liability, excess deferred income taxes | $ 200,400 | ||||||||
March 2018 BGSS/CIP Filing | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Approved customer refunds | $ 31,000 | ||||||||
Forecast | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Investment tax credit, solar property, percentage | 10.00% | 22.00% | 26.00% | 30.00% | |||||
Clean Energy Ventures | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Federal net operating losses | 24,100 | ||||||||
Tax credit carryforward | $ 154,200 | 121,100 | |||||||
Net operating losses, life | 20 years | ||||||||
Natural Gas Distribution | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Tax credit carryforward | $ 2,000 | 2,200 | |||||||
Income tax expense (benefit) provision | 17,000 | ||||||||
Domestic Tax Authority | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Net operating losses | 134,000 | 136,800 | |||||||
State and Local Jurisdiction | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Net operating losses | $ 340,200 | $ 578,800 | |||||||
State and Local Jurisdiction | Minimum | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Net operating losses, life | 7 years | ||||||||
State and Local Jurisdiction | Maximum | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Net operating losses, life | 20 years |
INCOME TAXES - RESERVE FOR UNCE
INCOME TAXES - RESERVE FOR UNCERTAIN TAX BENEFITS (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance at October 1, | $ 0 |
Additions based on tax positions related to the current fiscal period | 4,930 |
Balance at period end | $ 4,930 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Current charges recoverable through BGSS | $ 129,300 |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2020 | 521,040 |
2021 | 263,069 |
2022 | 205,671 |
2023 | 166,384 |
2024 | 116,702 |
Thereafter | $ 603,502 |
Minimum | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, fixed period | 1 year |
Maximum | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, fixed period | 10 years |
Energy Services | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2020 | $ 371,168 |
2021 | 99,931 |
2022 | 63,870 |
2023 | 35,737 |
2024 | 14,613 |
Thereafter | 9,788 |
Energy Services | Natural gas purchases | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2020 | 266,931 |
2021 | 18,809 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Energy Services | Storage demand fees | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2020 | 26,043 |
2021 | 15,247 |
2022 | 11,378 |
2023 | 6,804 |
2024 | 1,650 |
Thereafter | 935 |
Energy Services | Pipeline demand fees | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2020 | 78,194 |
2021 | 65,875 |
2022 | 52,492 |
2023 | 28,933 |
2024 | 12,963 |
Thereafter | 8,853 |
Natural Gas Distribution | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2020 | 149,872 |
2021 | 163,138 |
2022 | 141,801 |
2023 | 130,647 |
2024 | 102,089 |
Thereafter | 593,714 |
Natural Gas Distribution | Natural gas purchases | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2020 | 20,616 |
2021 | 30,884 |
2022 | 31,775 |
2023 | 33,060 |
2024 | 34,652 |
Thereafter | 35,748 |
Natural Gas Distribution | Storage demand fees | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2020 | 33,938 |
2021 | 24,443 |
2022 | 16,101 |
2023 | 9,442 |
2024 | 2,876 |
Thereafter | 5,559 |
Natural Gas Distribution | Pipeline demand fees | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2020 | 95,318 |
2021 | 107,811 |
2022 | 93,925 |
2023 | 88,145 |
2024 | 64,561 |
Thereafter | $ 552,407 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - CAPITAL EXPENDITURES (Details) $ in Millions | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating leases, future minimum payments due, next five years (not more than) | $ 4.7 |
Operating leases, future minimum payments, due thereafter | $ 54.4 |
COMMITMENTS AND CONTINGENT LI_5
COMMITMENTS AND CONTINGENT LIABILITIES - GUARANTEES (Details) $ in Millions | Sep. 30, 2019USD ($) |
Guarantee Obligations | |
Guarantor Obligations [Line Items] | |
Loss contingency, estimate of possible loss | $ 339 |
COMMITMENTS AND CONTINGENT LI_6
COMMITMENTS AND CONTINGENT LIABILITIES - LEGAL PROCEEDINGS (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 |
Loss Contingencies [Line Items] | |||||
Regulatory assets | $ 496,637 | $ 496,637 | $ 368,592 | ||
Regulatory liabilities-noncurrent | 202,435 | $ 202,435 | 209,139 | ||
Recovery period | 7 years | ||||
Minimum | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement, gross | $ 115,900 | ||||
Maximum | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement, gross | 186,200 | ||||
Environmental remediation costs, Liability for future expenditures | |||||
Loss Contingencies [Line Items] | |||||
Regulatory assets | 131,080 | 131,080 | 130,800 | ||
Regulatory liabilities-noncurrent | 131,100 | 131,100 | |||
Environmental remediation costs, Expended, net of recoveries | |||||
Loss Contingencies [Line Items] | |||||
Regulatory assets | 38,351 | $ 38,351 | $ 33,017 | ||
RAC | |||||
Loss Contingencies [Line Items] | |||||
Approved rate, amount | $ 8,500 | $ 7,100 | |||
NJNG | RAC | |||||
Loss Contingencies [Line Items] | |||||
Requested base rate increase, amount | $ 1,400 |
REPORTING SEGMENT AND OTHER O_3
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT INCOME TO CONSOLIDATED (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Utility | $ 710,793 | $ 731,865 | $ 695,637 | ||||||||
Nonutility | 1,881,252 | 2,183,244 | 1,572,980 | ||||||||
Total operating revenues | $ 479,081 | $ 434,942 | $ 866,255 | $ 811,767 | $ 647,326 | $ 543,435 | $ 1,019,043 | $ 705,305 | 2,592,045 | 2,915,109 | 2,268,617 |
Depreciation and amortization | 91,730 | 85,701 | 81,841 | ||||||||
Interest income | 1,623 | 614 | 2,034 | ||||||||
Interest expense, net of capitalized interest | 47,082 | 46,286 | 44,886 | ||||||||
Income tax provision (benefit) | (37,751) | (53,785) | 18,343 | ||||||||
Equity in earnings of affiliates | 13,628 | 13,008 | 13,813 | ||||||||
Net financial earnings (loss) | 174,960 | 240,486 | 149,392 | ||||||||
Capital expenditures | 521,154 | 384,588 | 328,083 | ||||||||
Investments in equity investees | 4,102 | 16,151 | 27,070 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 2,551,683 | 2,916,044 | 2,222,712 | ||||||||
Depreciation and amortization | 91,101 | 85,167 | 81,250 | ||||||||
Interest income | 5,072 | 4,228 | 2,756 | ||||||||
Interest expense, net of capitalized interest | 48,370 | 49,231 | 45,788 | ||||||||
Income tax provision (benefit) | (38,806) | (65,394) | 14,129 | ||||||||
Net financial earnings (loss) | 173,142 | 244,642 | 143,214 | ||||||||
Capital expenditures | 518,670 | 383,375 | 325,649 | ||||||||
Operating Segments | Natural Gas Distribution | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Utility | 710,793 | 731,865 | 695,637 | ||||||||
Depreciation and amortization | 57,980 | 53,208 | 49,347 | ||||||||
Interest income | 994 | 614 | 555 | ||||||||
Interest expense, net of capitalized interest | 26,134 | 25,299 | 25,818 | ||||||||
Income tax provision (benefit) | 9,434 | (1,910) | 43,485 | ||||||||
Net financial earnings (loss) | 78,062 | 84,048 | 86,930 | ||||||||
Capital expenditures | 340,226 | 254,523 | 176,249 | ||||||||
Operating Segments | Clean Energy Ventures | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Nonutility | 98,099 | 71,375 | 64,394 | ||||||||
Depreciation and amortization | 32,997 | 31,877 | 31,834 | ||||||||
Interest expense, net of capitalized interest | 14,846 | 18,320 | 16,263 | ||||||||
Income tax provision (benefit) | (48,921) | (79,932) | (31,161) | ||||||||
Net financial earnings (loss) | 77,473 | 75,849 | 24,873 | ||||||||
Capital expenditures | 157,828 | 123,421 | 149,400 | ||||||||
Operating Segments | Energy Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Nonutility | 1,734,553 | 2,064,477 | 1,462,365 | ||||||||
Depreciation and amortization | 118 | 76 | 63 | ||||||||
Interest income | 78 | 240 | 6 | ||||||||
Interest expense, net of capitalized interest | 5,205 | 3,945 | 2,747 | ||||||||
Income tax provision (benefit) | (1,573) | 24,996 | (4,015) | ||||||||
Net financial earnings (loss) | 2,918 | 60,378 | 18,554 | ||||||||
Operating Segments | Midstream | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 6 | 6 | 6 | ||||||||
Interest income | 4,000 | 3,374 | 2,195 | ||||||||
Interest expense, net of capitalized interest | 2,185 | 1,667 | 960 | ||||||||
Income tax provision (benefit) | 2,254 | (8,548) | 5,820 | ||||||||
Equity in earnings of affiliates | 15,832 | 16,165 | 17,797 | ||||||||
Net financial earnings (loss) | 14,689 | 24,367 | 12,857 | ||||||||
Capital expenditures | 20,616 | 5,431 | 0 | ||||||||
Investments in equity investees | 4,102 | 16,151 | 27,070 | ||||||||
Home Services and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Nonutility | 48,600 | 47,392 | 46,221 | ||||||||
Depreciation and amortization | 914 | 780 | 798 | ||||||||
Interest income | 1,942 | 1,476 | 590 | ||||||||
Interest expense, net of capitalized interest | 1,535 | 7 | 410 | ||||||||
Income tax provision (benefit) | 1,428 | 11,944 | 3,857 | ||||||||
Net financial earnings (loss) | 1,911 | (3,829) | 6,811 | ||||||||
Capital expenditures | 2,484 | 1,213 | 2,434 | ||||||||
Intercompany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Nonutility | 2,302 | 2,665 | 3,370 | ||||||||
Intercompany | Energy Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Nonutility | 8,238 | 48,327 | 316 | ||||||||
Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Nonutility | (10,540) | (50,992) | (3,686) | ||||||||
Depreciation and amortization | (285) | (246) | (207) | ||||||||
Interest income | (5,391) | (5,090) | (1,312) | ||||||||
Interest expense, net of capitalized interest | (2,823) | (2,952) | (1,312) | ||||||||
Income tax provision (benefit) | (373) | (335) | 357 | ||||||||
Equity in earnings of affiliates | (2,204) | (3,157) | (3,984) | ||||||||
Net financial earnings (loss) | $ (93) | $ (327) | $ (633) |
REPORTING SEGMENT AND OTHER O_4
REPORTING SEGMENT AND OTHER OPERATIONS DATA - NET FINANCIAL EARNINGS LOSS RECONCILIATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting [Abstract] | |||||||||||
Consolidated net financial earnings | $ 174,960 | $ 240,486 | $ 149,392 | ||||||||
Less: | |||||||||||
Unrealized loss (gain) on derivative instruments and related transactions | 2,881 | 26,770 | (11,241) | ||||||||
Unrealized loss (gain) on derivative instruments and related transactions, tax effect | (711) | (4,512) | 4,062 | ||||||||
Effects of economic hedging related to natural gas inventory | 4,309 | (22,570) | 38,470 | ||||||||
Effects of economic hedging related to natural gas inventory, tax effect | (1,024) | 7,362 | (13,964) | ||||||||
NET INCOME | $ 18,086 | $ (8,402) | $ 73,573 | $ 86,248 | $ (16,255) | $ (14,274) | $ 140,266 | $ 123,699 | $ 169,505 | $ 233,436 | $ 132,065 |
REPORTING SEGMENT AND OTHER O_5
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 4,372,985 | $ 4,143,664 | $ 3,928,507 |
Asset held for sale | 0 | 206,905 | |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 4,460,434 | 4,166,993 | 3,922,001 |
Operating Segments | Natural Gas Distribution | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 3,064,309 | 2,663,054 | 2,519,578 |
Operating Segments | Clean Energy Ventures | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 864,323 | 865,018 | 771,340 |
Asset held for sale | 206,900 | ||
Operating Segments | Energy Services | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 290,847 | 396,852 | 398,277 |
Operating Segments | Midstream | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 240,955 | 242,069 | 232,806 |
Home Services and Other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 104,411 | 114,732 | 114,801 |
Eliminations | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ (191,860) | $ (138,061) | $ (108,295) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) DTH in Thousands, $ in Thousands | Apr. 01, 2010USD ($)Bcf | Sep. 30, 2019USD ($)DTHcontract | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Related Party Transaction [Line Items] | ||||
Demand fees recognized pertaining to related party agreement | $ 7,948 | $ 8,505 | $ 8,340 | |
Due to related parties | $ 790 | 1,150 | ||
Number of asset management agreements | contract | 4 | |||
NJNG to NJRES Affiliate | ||||
Related Party Transaction [Line Items] | ||||
Asset management agreement, period | 10 years | |||
NJNG to Steckman RIdge Affiliate - National Gas Distribution | ||||
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 recognized pertaining to related party agreement | $ 5,814 | 5,730 | 5,590 | |
Due to related parties | $ 775 | 775 | ||
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 Dths per day) | DTH | 180 | |||
NJRES to PennEast Affiliate | ||||
Related Party Transaction [Line Items] | ||||
Transportation precedent agreement, period | 5 years | |||
Transportation capacity under precedent agreement from NJNG with PennEast (in Dths per day) | DTH | 50 | |||
NJRES to Steckman Ridge Affiliate - Energy Services | ||||
Related Party Transaction [Line Items] | ||||
Demand fees recognized pertaining to related party agreement | $ 2,134 | 2,775 | $ 2,750 | |
Due to related parties | $ 15 | $ 375 |
ACQUISITIONS AND DISPOSITIONS -
ACQUISITIONS AND DISPOSITIONS - ACQUISITIONS (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2017USD ($) | Oct. 31, 2017USD ($) | Sep. 30, 2019USD ($)mi | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Business Acquisition [Line Items] | |||||
Initial payment | $ 0 | $ 10,000 | $ 0 | ||
Adelphia | Talen's Membership Interests In IEC | |||||
Business Acquisition [Line Items] | |||||
Base purchase price | $ 166,000 | ||||
Additional contingent consideration (up to $23 million) | $ 23,000 | ||||
Initial payment | $ 10,000 | ||||
Pipeline length owned | mi | 84 | ||||
Transportation precedent agreement, period | 10 years |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS - DISPOSITIONS (Details) $ in Thousands | Feb. 07, 2019USD ($) | Jun. 01, 2018USD ($)MW | Feb. 28, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of businesses, net | $ 645 | $ 4,663 | $ 0 | |||
Proceeds from sale of businesses, net of closing costs | $ 205,745 | $ 27,916 | $ 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 | $ 3,700 | |||||
Proceeds from sale of businesses, net of closing costs | 9,500 | |||||
Clean Energy Ventures | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Wind farm total capacity (in MW) | MW | 9.7 | |||||
Disposal group consideration | $ 208,600 | $ 18,500 | ||||
Proceeds from sale of business | $ 951 | |||||
Gain on sale of businesses, net | $ 645 | |||||
Natural Gas | Clean Energy Ventures | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Derivative gain | $ 14,600 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event DTH in Millions | Oct. 11, 2019USD ($)DTH | Oct. 09, 2019USD ($) |
Bridge Loan | ||
Subsequent Event [Line Items] | ||
Face amount | $ 350,000,000 | |
Bridge Loan | Debt Instrument, Interest Rate, First 180 Days | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 0.875% | |
Bridge Loan | Debt Instrument, Interest Rate, After 180 Days | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 1.075% | |
Leaf River Energy Center LLC | NJR Pipeline | ||
Subsequent Event [Line Items] | ||
Percentage of voting interests acquired | 100.00% | |
Consideration transferred | $ 367,500,000 | |
Natural gas capacity of acquiree | DTH | 32.2 |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating revenues | $ 479,081 | $ 434,942 | $ 866,255 | $ 811,767 | $ 647,326 | $ 543,435 | $ 1,019,043 | $ 705,305 | $ 2,592,045 | $ 2,915,109 | $ 2,268,617 |
Operating income (loss) | (7,790) | (4,019) | 77,001 | 88,743 | (18,343) | (36,715) | 178,744 | 76,196 | 153,935 | 199,882 | 171,224 |
Net income (loss) | $ 18,086 | $ (8,402) | $ 73,573 | $ 86,248 | $ (16,255) | $ (14,274) | $ 140,266 | $ 123,699 | $ 169,505 | $ 233,436 | $ 132,065 |
Earnings (loss) per share | |||||||||||
Basic (in dollars per share) | $ 0.20 | $ (0.09) | $ 0.83 | $ 0.97 | $ (0.18) | $ (0.16) | $ 1.60 | $ 1.42 | $ 1.90 | $ 2.66 | $ 1.53 |
Diluted (in dollars per share) | $ 0.20 | $ (0.09) | $ 0.82 | $ 0.97 | $ (0.18) | $ (0.16) | $ 1.59 | $ 1.42 | $ 1.89 | $ 2.64 | $ 1.52 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
BEGINNING BALANCE | $ 5,704 | $ 5,181 | $ 4,865 | |
ADDITIONS CHARGED TO EXPENSE | 2,387 | 2,579 | 2,023 | |
OTHER | [1] | (1,943) | (2,056) | (1,707) |
ENDING BALANCE | $ 6,148 | $ 5,704 | $ 5,181 | |
[1] | Uncollectible accounts written off, less recoveries and adjustments. |
Uncategorized Items - njr10k201
Label | Element | Value | [1] |
Accounting Standards Update 2016-01 [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 | |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,446,000) | |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 3,446,000 | |
[1] | See Note 2. Summary of Significant Accounting Policies - Recently Adopted Updates to the Accounting Standards Codification section for more details. |