Cover Page
Cover Page - shares | 6 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 | 938‑1480 | |
Title of 12(b) Security | Common Stock - $2.50 Par Value | |
Trading Symbol | NJR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Business | false | |
Entity Common Stock, Shares Outstanding | 96,964,456 | |
Entity Central Index Key | 0000356309 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
OPERATING REVENUES | ||||
Utility | $ 400,500 | $ 463,474 | $ 757,909 | $ 737,909 |
Nonutility | 243,527 | 448,842 | 609,685 | 850,249 |
Total operating revenues | 644,027 | 912,316 | 1,367,594 | 1,588,158 |
Natural gas purchases: | ||||
Related parties | 1,770 | 1,883 | 3,597 | 3,729 |
Operation and maintenance | 99,095 | 85,786 | 178,596 | 154,770 |
Regulatory rider expenses | 23,154 | 30,910 | 41,405 | 47,581 |
Depreciation and amortization | 38,090 | 31,435 | 74,773 | 61,828 |
Total operating expenses | 478,843 | 773,441 | 1,029,621 | 1,292,398 |
OPERATING INCOME | 165,184 | 138,875 | 337,973 | 295,760 |
Other income, net | 4,779 | 4,127 | 9,434 | 8,263 |
Interest expense, net of capitalized interest | 30,261 | 18,926 | 59,752 | 38,403 |
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES | 139,702 | 124,076 | 287,655 | 265,620 |
Income tax provision | 30,586 | 28,810 | 63,564 | 59,617 |
Equity in earnings of affiliates | 1,131 | 769 | 2,077 | 1,344 |
NET INCOME | $ 110,247 | $ 96,035 | $ 226,168 | $ 207,347 |
EARNINGS PER COMMON SHARE | ||||
Basic (usd per share) | $ 1.14 | $ 1 | $ 2.34 | $ 2.16 |
Diluted (usd per share) | $ 1.13 | $ 1 | $ 2.32 | $ 2.15 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||
Basic (in shares) | 96,893 | 96,068 | 96,689 | 96,006 |
Diluted (in shares) | 97,556 | 96,516 | 97,346 | 96,480 |
Utility | ||||
Natural gas purchases: | ||||
Gas purchases - Utility and Nonutility | $ 156,370 | $ 212,892 | $ 338,816 | $ 335,161 |
Nonutility | ||||
Natural gas purchases: | ||||
Gas purchases - Utility and Nonutility | $ 160,364 | $ 410,535 | $ 392,434 | $ 689,329 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 110,247 | $ 96,035 | $ 226,168 | $ 207,347 |
Other comprehensive income, net of tax | ||||
Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax of $(80), $(80), $(159) and $(159), respectively | 264 | 263 | 527 | 527 |
Adjustment to postemployment benefit obligation, net of tax of $(13), $(232), $(25) and $(465), respectively | 41 | 768 | 82 | 1,534 |
Other comprehensive income, net of tax | 305 | 1,031 | 609 | 2,061 |
Comprehensive income | $ 110,552 | $ 97,066 | $ 226,777 | $ 209,408 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax on reclassifications of losses to net income on derivatives | $ (80) | $ (80) | $ (159) | $ (159) |
Tax on adjustment to postemployment benefit obligation | $ (13) | $ (232) | $ (25) | $ (465) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 226,168 | $ 207,347 |
Adjustments to reconcile net income to cash flows from operating activities | ||
Unrealized (gain) on derivative instruments | (17,532) | (40,169) |
Depreciation and amortization | 74,773 | 61,828 |
Amortization of acquired wholesale energy contracts | 1,283 | 1,464 |
Allowance for equity used during construction | (2,801) | (6,133) |
Allowance for doubtful accounts | (395) | 1,139 |
Non cash lease expense | 1,848 | 2,559 |
Deferred income taxes | 36,072 | 16,912 |
Equivalent value of ITCs recognized on equipment financing | (899) | (727) |
Manufactured gas plant remediation costs | (4,362) | (14,677) |
Equity in earnings, net of distributions received from equity investees | 0 | 968 |
Cost of removal - asset retirement obligations | (644) | (565) |
Contributions to postemployment benefit plans | (634) | (2,324) |
Taxes related to stock-based compensation | 554 | (166) |
Changes in: | ||
Components of working capital | (42,519) | 74,290 |
Other noncurrent assets | 752 | 4,870 |
Other noncurrent liabilities | 71,457 | 23,836 |
Cash flows from operating activities | 343,121 | 330,452 |
Expenditures for: | ||
Cost of removal | (16,757) | (17,030) |
Distribution from equity investees in excess of equity in earnings | 1,374 | 478 |
Investments in equity investees, net of return of capital | 0 | 4,000 |
Cash flows used in investing activities | (261,737) | (296,832) |
CASH FLOWS USED IN FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 175,000 | 100,000 |
Payments of long-term debt | (10,534) | (10,032) |
Proceeds from term loan | 0 | 150,000 |
Payments of term loan | (150,000) | 0 |
Payments of short-term debt, net | (86,300) | (225,090) |
Proceeds from sale leaseback transactions - solar | 61,808 | 3,300 |
Proceeds from sale leaseback transactions - natural gas meters | 8,441 | 17,300 |
Payments of common stock dividends | (75,200) | (63,725) |
Proceeds from waiver discount issuance of common stock | 17,919 | 0 |
Proceeds from issuance of common stock - DRP | 7,610 | 7,521 |
Tax withholding payments related to net settled stock compensation | (4,024) | (3,737) |
Cash flows used in financing activities | (55,280) | (24,463) |
Change in cash, cash equivalents and restricted cash | 26,104 | 9,157 |
Cash, cash equivalents and restricted cash at beginning of period | 1,452 | 6,043 |
Cash, cash equivalents and restricted cash at end of period | 27,556 | 15,200 |
CHANGES IN COMPONENTS OF WORKING CAPITAL | ||
Receivables | (8,877) | (107,479) |
Inventories | 185,444 | 125,012 |
Recovery of natural gas costs | (28,825) | 8,465 |
Natural gas purchases payable | (159,016) | (25,964) |
Natural gas purchases payable - related parties | 5 | (6) |
Deferred revenue, current | 1,587 | 52,368 |
Accounts payable and other | (24,095) | (88,866) |
Prepaid expenses | (6,493) | (5,548) |
Prepaid and accrued taxes | 51,591 | 75,921 |
Restricted broker margin accounts | (43,414) | 53,708 |
Customers' credit balances and deposits | (7,725) | (12,302) |
Other current assets (liabilities) | (2,701) | (1,019) |
Total | (42,519) | 74,290 |
Cash paid for: | ||
Interest (net of amounts capitalized) | 57,622 | 42,754 |
Income taxes | 1,967 | 1,263 |
Accrued capital expenditures | 24,318 | 53,245 |
Utility plant | ||
Expenditures for: | ||
Payments to acquire PP&E | (157,914) | (108,434) |
Solar equipment | ||
Expenditures for: | ||
Payments to acquire PP&E | (57,699) | (66,556) |
Storage and Transportation and other | ||
Expenditures for: | ||
Payments to acquire PP&E | $ (30,741) | $ (109,290) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
PROPERTY, PLANT AND EQUIPMENT | ||
Utility plant, at cost | $ 3,682,509 | $ 3,576,691 |
Construction work in progress | 206,260 | 162,087 |
Nonutility plant and equipment, at cost | 1,739,074 | 1,577,259 |
Construction work in progress | 121,733 | 199,679 |
Total property, plant and equipment | 5,749,576 | 5,515,716 |
Accumulated depreciation and amortization, utility plant | (694,871) | (659,737) |
Accumulated depreciation and amortization, nonutility plant and equipment | (229,720) | (206,053) |
Property, plant and equipment, net | 4,824,985 | 4,649,926 |
CURRENT ASSETS | ||
Cash and cash equivalents | 27,095 | 1,107 |
Customer accounts receivable | ||
Billed | 194,453 | 222,297 |
Unbilled revenues | 46,040 | 13,769 |
Allowance for doubtful accounts | (11,419) | (19,379) |
Regulatory assets | 122,589 | 40,086 |
Natural gas in storage, at average cost | 84,916 | 273,644 |
Materials and supplies, at average cost | 23,608 | 20,324 |
Prepaid expenses | 15,065 | 8,572 |
Prepaid and accrued taxes | 13,575 | 54,501 |
Derivatives, at fair value | 25,658 | 24,635 |
Restricted broker margin accounts | 51,569 | 94,261 |
Other current assets | 22,823 | 22,270 |
Total current assets | 615,972 | 756,087 |
NONCURRENT ASSETS | ||
Investments in equity method investees | 105,125 | 106,571 |
Regulatory assets | 501,829 | 500,666 |
Operating lease assets | 165,783 | 168,520 |
Derivatives, at fair value | 1,640 | 6,385 |
Intangible assets, net | 1,065 | 2,348 |
Software costs | 6,980 | 6,120 |
Other noncurrent assets | 72,754 | 64,793 |
Total noncurrent assets | 855,176 | 855,403 |
Total assets | 6,296,133 | 6,261,416 |
CAPITALIZATION | ||
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding shares March 31, 2023 — 96,901,373; September 30, 2022 — 96,249,859 | 241,919 | 241,616 |
Premium on common stock | 529,819 | 519,697 |
Accumulated other comprehensive loss, net of tax | (4,217) | (4,826) |
Treasury stock at cost and other; shares March 31, 2023 — 80,541; September 30, 2022 — 611,045 | 15,075 | (6,805) |
Retained earnings | 1,218,240 | 1,067,528 |
Common stock equity | 2,000,836 | 1,817,210 |
Long-term debt | 2,642,199 | 2,485,402 |
Total capitalization | 4,643,035 | 4,302,612 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 152,173 | 75,069 |
Short-term debt | 187,650 | 423,950 |
Natural gas purchases payable | 76,033 | 235,049 |
Natural gas purchases payable to related parties | 856 | 851 |
Deferred revenue | 41,253 | 35,547 |
Accounts payable and other | 121,796 | 156,580 |
Dividends payable | 37,792 | 37,534 |
Accrued taxes | 15,795 | 5,130 |
Regulatory liabilities | 15,681 | 31,090 |
New Jersey Clean Energy Program | 6,191 | 15,697 |
Derivatives, at fair value | 24,183 | 49,848 |
Operating lease liabilities | 5,308 | 4,562 |
Restricted broker margin accounts | 1,245 | 0 |
Customers' credit balances and deposits | 25,521 | 33,246 |
Total current liabilities | 711,477 | 1,104,153 |
NONCURRENT LIABILITIES | ||
Deferred income taxes | 280,675 | 238,928 |
Deferred investment tax credits | 2,573 | 2,710 |
Deferred revenue | 40,406 | 753 |
Derivatives, at fair value | 17,368 | 14,191 |
Manufactured gas plant remediation | 124,493 | 127,060 |
Postemployment employee benefit liability | 87,571 | 82,867 |
Regulatory liabilities | 183,941 | 185,634 |
Operating lease liabilities | 136,789 | 138,382 |
Asset retirement obligation | 56,635 | 55,035 |
Other noncurrent liabilities | 11,170 | 9,091 |
Total noncurrent liabilities | 941,621 | 854,651 |
Commitments and contingent liabilities (Note 13) | ||
Total capitalization and liabilities | $ 6,296,133 | $ 6,261,416 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares outstanding (in shares) | 96,901,373 | 96,249,859 |
Treasury stock at cost and other, shares (in shares) | 80,541 | 611,045 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Premium on Common Stock | Accumulated Other Comprehensive (Loss) Income | Treasury Stock and Other | Retained Earnings | |
Balance as of beginning of period (in shares) at Sep. 30, 2021 | 95,710,000 | ||||||
Balance as of beginning of period at Sep. 30, 2021 | $ 1,630,862 | $ 240,644 | $ 502,584 | $ (34,528) | $ (12,448) | $ 934,610 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 111,312 | 111,312 | |||||
Other comprehensive income | 1,030 | 1,030 | |||||
Common stock issued: | |||||||
Incentive compensation plan (in shares) | 147,000 | ||||||
Incentive compensation plan | 7,502 | $ 367 | 7,135 | ||||
Dividend reinvestment plan (in shares) | 105,000 | ||||||
Dividend reinvestment plan | 3,678 | $ 263 | 3,415 | ||||
Cash dividend declared | (34,787) | (34,787) | |||||
Treasury stock and other | (2,619) | (2,619) | |||||
Balance as of end of period (in shares) at Dec. 31, 2021 | 95,962,000 | ||||||
Balance as of end of period at Dec. 31, 2021 | 1,716,978 | $ 241,274 | 513,134 | (33,498) | (15,067) | 1,011,135 | |
Balance as of beginning of period (in shares) at Sep. 30, 2021 | 95,710,000 | ||||||
Balance as of beginning of period at Sep. 30, 2021 | 1,630,862 | $ 240,644 | 502,584 | (34,528) | (12,448) | 934,610 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 207,347 | ||||||
Balance as of end of period (in shares) at Mar. 31, 2022 | 96,082,000 | ||||||
Balance as of end of period at Mar. 31, 2022 | 1,784,287 | $ 241,593 | 517,843 | (32,467) | (15,025) | 1,072,343 | |
Balance as of beginning of period (in shares) at Dec. 31, 2021 | 95,962,000 | ||||||
Balance as of beginning of period at Dec. 31, 2021 | 1,716,978 | $ 241,274 | 513,134 | (33,498) | (15,067) | 1,011,135 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 96,035 | 96,035 | |||||
Other comprehensive income | 1,031 | 1,031 | |||||
Common stock issued: | |||||||
Incentive compensation plan (in shares) | 36,000 | ||||||
Incentive compensation plan | 1,307 | $ 91 | 1,216 | ||||
Dividend reinvestment plan (in shares) | 91,000 | ||||||
Dividend reinvestment plan | 3,721 | $ 228 | 3,493 | ||||
Cash dividend declared | (34,827) | (34,827) | |||||
Treasury stock and other (in shares) | (7,000) | ||||||
Treasury stock and other | 42 | 42 | |||||
Balance as of end of period (in shares) at Mar. 31, 2022 | 96,082,000 | ||||||
Balance as of end of period at Mar. 31, 2022 | $ 1,784,287 | $ 241,593 | 517,843 | (32,467) | (15,025) | 1,072,343 | |
Balance as of beginning of period (in shares) at Sep. 30, 2022 | 96,249,859 | 96,250,000 | |||||
Balance as of beginning of period at Sep. 30, 2022 | $ 1,817,210 | $ 241,616 | 519,697 | (4,826) | (6,805) | 1,067,528 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 115,921 | 115,921 | |||||
Other comprehensive income | 304 | 304 | |||||
Common stock issued: | |||||||
Incentive compensation plan (in shares) | 92,000 | ||||||
Incentive compensation plan | 3,472 | $ 229 | 3,243 | ||||
Dividend reinvestment plan (in shares) | 93,000 | ||||||
Dividend reinvestment plan | 3,866 | 437 | 3,429 | ||||
Waiver discount (in shares) | 368,000 | ||||||
Waiver discount | 17,919 | 4,469 | 13,450 | ||||
Cash dividend declared | (37,665) | (37,665) | |||||
Treasury stock and other | 1,768 | 1,768 | |||||
Balance as of end of period (in shares) at Dec. 31, 2022 | 96,803,000 | ||||||
Balance as of end of period at Dec. 31, 2022 | $ 1,922,795 | $ 241,845 | 527,846 | (4,522) | 11,842 | 1,145,784 | |
Balance as of beginning of period (in shares) at Sep. 30, 2022 | 96,249,859 | 96,250,000 | |||||
Balance as of beginning of period at Sep. 30, 2022 | $ 1,817,210 | $ 241,616 | 519,697 | (4,826) | (6,805) | 1,067,528 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 226,168 | ||||||
Balance as of end of period (in shares) at Mar. 31, 2023 | 96,901,373 | 96,901,000 | |||||
Balance as of end of period at Mar. 31, 2023 | $ 2,000,836 | $ 241,919 | 529,819 | (4,217) | 15,075 | 1,218,240 | |
Balance as of beginning of period (in shares) at Dec. 31, 2022 | 96,803,000 | ||||||
Balance as of beginning of period at Dec. 31, 2022 | 1,922,795 | $ 241,845 | 527,846 | (4,522) | 11,842 | 1,145,784 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 110,247 | 110,247 | |||||
Other comprehensive income | 305 | 305 | |||||
Common stock issued: | |||||||
Incentive compensation plan (in shares) | 29,000 | ||||||
Incentive compensation plan | 1,170 | $ 74 | 1,096 | ||||
Dividend reinvestment plan (in shares) | [1] | 77,000 | |||||
Dividend reinvestment plan | [1] | 3,671 | 877 | 2,794 | |||
Cash dividend declared | (37,791) | (37,791) | |||||
Treasury stock and other (in shares) | (8,000) | ||||||
Treasury stock and other | $ 439 | 439 | |||||
Balance as of end of period (in shares) at Mar. 31, 2023 | 96,901,373 | 96,901,000 | |||||
Balance as of end of period at Mar. 31, 2023 | $ 2,000,836 | $ 241,919 | $ 529,819 | $ (4,217) | $ 15,075 | $ 1,218,240 | |
[1]Shares sold through the DRP issued from treasury stock are at average cost, which may differ from the actual market price paid. |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividend declared per share (usd per share) | $ 0.39 | $ 0.39 | $ 0.3325 | $ 0.3625 |
NATURE OF THE BUSINESS
NATURE OF THE BUSINESS | 6 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF THE BUSINESS | 1. NATURE OF THE BUSINESS The Company provides regulated natural gas distribution services, transmission and storage services and operates certain unregulated businesses primarily through the following: NJNG provides natural gas utility service to approximately 574,500 customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties in New Jersey and is subject to rate regulation by the BPU. NJNG comprises the Natural Gas Distribution segment. NJRCEV, the Company's clean energy subsidiary, comprises the Clean Energy Ventures segment and invests in, owns and operates clean energy projects, including commercial and residential solar installations located in New Jersey, Connecticut, Rhode Island and New York. NJRES comprises the Energy Services segment. Energy Services maintains and transacts around a portfolio of natural gas transportation and storage capacity contracts and provides physical wholesale energy, retail energy and energy management services in the U.S. and Canada. NJR Midstream Holdings Corporation, which comprises the Storage and Transportation segment, invests in energy-related ventures through its subsidiaries. The Company operates natural gas storage and transmission assets through the wholly-owned subsidiaries of Leaf River and Adelphia Gateway, and is subject to rate regulation by FERC. The Company holds a 50 percent combined ownership interest in Steckman Ridge, located in Pennsylvania which are accounted for under the equity method of accounting and 20 percent ownership interest in PennEast, which ceased operations in fiscal 2022. NJR Retail Holdings Corporation has one principal subsidiary, NJRHS, which provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey. NJRHS is included in Home Services and Other Operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared by the Company in accordance with the rules and regulations of the U.S. Securities and Exchange Commission and GAAP. The September 30, 2022 Balance Sheet data is derived from the audited financial statements of the Company. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's 2022 Annual Report on Form 10-K. The Unaudited Condensed Consolidated Financial Statements include the accounts of NJR and its subsidiaries. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary for a fair presentation of the results of the interim periods presented. These adjustments are of a normal and recurring nature. Because of the seasonal nature of the Company's utility and wholesale energy services operations, in addition to other factors, the financial results for the interim periods presented are not indicative of the results that are to be expected for the fiscal year ending September 30, 2023. Intercompany transactions and accounts have been eliminated. 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. Asset retirement obligations are evaluated periodically as required. 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. Revenues Revenues from the sale of natural gas to NJNG customers are recognized in the period that natural 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 natural 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. The Clean Energy Act of 2018 established guidelines for the closure of the SREC registration program to new applicants in New Jersey. The SREC program officially closed to new qualified solar projects on April 30, 2020. In December 2019, the BPU established the TREC as the successor to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined. In July 2021, the BPU established a new successor solar incentive program. This Administratively Determined Incentive Program, which we refer to as SREC IIs, provides administratively set incentives for net metered residential projects and net metered non-residential projects of 5 MW or less. TREC & SREC IIs generated are required to be purchased monthly by a REC program administrator as appointed by the BPU. Revenue is recognized when RECs are generated and are transferred monthly based upon metered solar electricity activity. 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. Energy Services also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues. During December 2020, Energy Services entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts, which commenced on November 1, 2021. The AMAs include a series of temporary and permanent releases and revenue under these agreements is recognized as the performance obligations are satisfied. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term. For permanent releases of pipeline capacity, which represent a transfer of contractual rights for such capacity, revenue is recognized upon the transfer of the underlying contractual rights. Energy Services recognized operating revenue of $9.5 million and $29.5 million during the three and six months ended March 31, 2023, respectively, and $10.3 million and $32.4 million during the three and six months ended March 31, 2022, respectively, on the Unaudited Condensed Consolidated Statements of Operations. Amounts received in excess of revenue totaling $77.7 million and $33.8 million are included in deferred revenue on the Unaudited Condensed Consolidated Balance Sheets as of March 31, 2023 and September 30, 2022, respectively. Storage and Transportation generates revenues from firm storage contracts and transportation contracts, related usage fees and hub services for the use of storage space, injections and withdrawals from their natural gas storage facility and the delivery of natural gas to customers. Demand fees are recognized as revenue over the term of the related agreement while usage fees and hub services revenues are recognized as services are performed. 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. 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 related to escrow balances for utility plant projects at NJNG, which are recorded in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Unaudited Condensed Consolidated Balance Sheets to the total amounts in the Unaudited Condensed Consolidated Statements of Cash Flows as follows: (Thousands) March 31, September 30, March 31, Balance Sheet Cash and cash equivalents $ 27,095 $ 1,107 $ 13,906 Restricted cash in other noncurrent assets $ 461 $ 345 $ 1,294 Statements of Cash Flow Cash, cash equivalents and restricted cash $ 27,556 $ 1,452 $ 15,200 Allowance for Doubtful Accounts The Company segregates financial assets, primarily trade receivables and unbilled revenues due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations, and macroeconomic factors, such as unemployment rates among others, including the estimated impact of the ongoing pandemic on the outstanding balances. Loans Receivable NJNG currently provides loans, with terms ranging from two Natural Gas in Storage The following table summarizes natural gas in storage, at average cost by segment as of: March 31, 2023 September 30, 2022 ($ in thousands) Natural Gas in Storage Bcf Natural Gas in Storage Bcf Natural Gas Distribution $ 44,308 6.3 $ 191,175 29.0 Energy Services 40,608 12.0 82,469 10.8 Total $ 84,916 18.3 $ 273,644 39.8 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 following tables present the software costs included in the Unaudited Condensed Consolidated Financial Statements: (Thousands) March 31, September 30, Balance Sheets Utility plant, at cost $ 48,950 $ 40,437 Construction work in progress $ 29,404 $ 14,381 Nonutility plant and equipment, at cost $ 344 $ 344 Accumulated depreciation and amortization, utility plant $ (5,184) $ (3,361) Accumulated depreciation and amortization, nonutility plant and equipment $ (30) $ (25) Software costs $ 6,980 $ 6,120 Three Months Ended Six Months Ended March 31, March 31, Statements of Operations 2023 2022 2023 2022 Operation and maintenance (1) $ 3,886 $ 2,828 $ 7,638 $ 5,351 Depreciation and amortization $ 957 $ 303 $ 1,828 $ 602 (1) During the three and six months ended March 31, 2023, approximately $148,000 and $261,000, respectively, was amortized from software costs into O&M. During the three and six months ended March 31, 2022, approximately $113,000 and $225,000, respectively, was amortized from software costs into O&M. 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 or repurchase the asset at the end of the term. Proceeds from sale leaseback transactions are accounted for as financing arrangements and are included in long-term debt on the Unaudited Condensed Consolidated Balance Sheets. 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 arrangement does not qualify as a sale as the Company retains control of the underlying assets, the Company uses the financing method to account for the transaction. Under the financing method, the Company recognizes the proceeds received from the buyer-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 Unaudited Condensed Consolidated Balance Sheets. The Company continues to operate the solar assets and is responsible for related expenses and entitled to retain the revenue generated from SRECs, TRECs, SREC IIs and energy sales. The ITCs and other tax benefits associated with these solar projects transfer to the buyer; however, the payments are structured so that Clean Energy Ventures is compensated for the transfer of the related tax attributes. Accordingly, Clean Energy Ventures recognizes the equivalent value of the tax attributes in other income on the Unaudited Condensed Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease. See Note 9. Debt for more details regarding sale leaseback transactions recorded as financing arrangements. Accumulated Other Comprehensive Loss The following table presents the changes in the components of accumulated other comprehensive loss, net of related tax effects during the three months ended March 31, 2023 and 2022: (Thousands) Cash Flow Hedges Postemployment Benefit Obligation Total Balance at December 31, 2022 $ (8,059) $ 3,537 $ (4,522) Other comprehensive income, net of tax Amounts reclassified from accumulated other comprehensive loss, net of tax of $(80), $(13), $(93), respectively 264 41 (1) 305 Balance at March 31, 2023 $ (7,795) $ 3,578 $ (4,217) Balance at December 31, 2021 $ (9,112) $ (24,386) $ (33,498) Other comprehensive income, net of tax Amounts reclassified from accumulated other comprehensive loss, net of tax of $(80), $(232), $(312) 263 768 (1) 1,031 Balance at March 31, 2022 $ (8,849) $ (23,618) $ (32,467) (1) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations. The following table presents the changes in the components of accumulated other comprehensive loss, net of related tax effects during the six months ended March 31, 2023 and 2022: (Thousands) Cash Flow Hedges Postemployment Benefit Obligation Total Balance at September 30, 2022 $ (8,322) $ 3,496 $ (4,826) Other comprehensive income, net of tax Amounts reclassified from accumulated other comprehensive loss, net of tax of $(159), $(25) and $(184), respectively 527 82 (1) 609 Balance at March 31, 2023 $ (7,795) $ 3,578 $ (4,217) Balance at September 30, 2021 $ (9,376) $ (25,152) $ (34,528) Other comprehensive income, net of tax Amounts reclassified from accumulated other comprehensive loss, net of tax of $(159), $(465) and $(624), respectively 527 1,534 (1) 2,061 Balance at March 31, 2022 $ (8,849) $ (23,618) $ (32,467) (1) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations. Recently Adopted Updates to the Accounting Standards Codification Debt and Other In August 2020, the FASB issued ASU No. 2020-06, an amendment to ASC 470, Debt , and ASC 815, Derivatives and Hedging , which changes the accounting for convertible instruments by reducing the number of acceptable accounting models to three models including, the embedded derivative, substantial premium, and traditional no proceeds allocated models. The Company adopted this guidance on October 1, 2022. The Company does not currently have convertible debt instruments, and as a resultthere was no impact on its financial position, results of operations, cash flows and disclosures upon adoption. In May 2021, the FASB issued ASU No. 2021-04, an amendment to ASC 470, Debt , ASC 260, Earnings per Share , ASC 718, Stock Compensation , and ASC 815, Derivatives and Hedging. The update impacts equity-classified written call options that remain equity-classified after a modification or exchange. The Company adopted this guidance on October 1, 2022, on a prospective basis. As the Company does not currently have equity-classified written call options, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption. Leases In July 2021, the FASB issued ASU No. 2021-05, an amendment to ASC 842, Leases , which requires a lessor to classify a lease with entirely or partially variable payments that do not depend on an index or rate as an operating lease if another classification, including sales-type or direct financing would trigger a loss at the lease commencement date. The Company adopted this guidance on October 1, 2022, on a prospective basis. The Company currently does not have any leases that meet this criteria, as such there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption. Other Recent Updates to the Accounting Standards Codification Business Combinations In October 2021, the FASB issued ASU No. 2021-08, an amendment to ASC 805, Business Combinations , which requires that an acquirer recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers . The guidance is effective for the Company beginning October 1, 2023, and will be applied on a prospective basis to new acquisitions following the date of adoption. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations, cash flows and disclosures upon adoption. Derivatives and Hedging In March 2022, the FASB issued ASU No. 2022-01, an amendment to ASC 815, Derivatives and Hedging , which addresses fair value hedge accounting of interest rate risk for portfolios of financial assets. This update further clarifies guidance previously released in ASU 2017-12 which established the "last-of-layer" method and this update renames that method as the “portfolio layer” method. The guidance is effective for the Company beginning October 1, 2023, and the transition method can be on a prospective basis for a multiple-layer hedging strategy or a modified retrospective basis for a portfolio layer method. As the Company does not currently apply hedge accounting to any of its risk management activities, it does not expect the amendment to have an impact on its financial position, results of operations, cash flows and disclosures upon adoption. Financial Instruments In March 2022, the FASB issued ASU No. 2022-02, an amendment to ASC 326, Financial Instruments-Credit Losses , which eliminates the accounting guidance for creditors in troubled debt restructuring. It also aligns conflicting disclosure requirement guidance in ASC 326 by requiring disclosure of current-period gross write-offs by year of origination. The amendment also adds new disclosures for creditors with loan refinancing and restructuring for borrowers experiencing financial difficulty. The guidance is effective for the Company beginning October 1, 2023, and the Company can elect to apply it either on a modified retrospective or prospective basis. At this time, the Company has not experienced a troubled debt restructuring and does not expect the amendments to have an impact on its financial position, results of operations and cash flows upon adoption. The Company is currently evaluating the amendment to understand the impact on its disclosures upon adoption. Fair Value Measurement In June 2022, the FASB issued ASU No. 2022-03, an amendment to ASC 820, Fair Value Measurement. The amendment clarifies the fair value principles when measuring the fair value of an equity security subject to a contractual sale restriction. The guidance is effective for the Company on October 1, 2024, and will be applied on a prospective basis. At this time, the Company does not have equity securities subject to contractual sale restrictions, and therefore this amendment would only impact the Company upon adoption if, in the future, it entered into such transactions. Leases In March 2023, the FASB issued ASU No. 2023-01, an amendment to ASC 842, Leases, which applies to arrangements between related parties under common control. This update requires that all entities with common control arrangements classify and account for these leases on the same basis as an arrangement with an unrelated party. If the lessee in these types of arrangements continues to control the use of the underlying asset through a lease, the leasehold improvements are to be amortized over the improvements’ useful life to the common control group, regardless of the lease term. The guidance is effective for the Company on October 1, 2024, and the Company can elect to apply it either on a prospective basis or retrospectively beginning October 1, 2019, representing the date which the Company adopted ASC 842. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations, cash flows and disclosures upon adoption. |
REVENUE
REVENUE | 6 Months Ended |
Mar. 31, 2023 | |
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, the Company does 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 Unaudited Condensed 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 natural 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 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. 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. Clean Energy Ventures Renewable energy certificates Certain Clean Energy Ventures projects generate TRECs and SREC IIs under the established administratively determined incentive program. A TREC or SREC II is created for every MWh of electricity produced by a solar generator. The performance obligation of Clean Energy Ventures is to generate electricity. TRECs and SREC IIs under the administratively determined incentive program are purchased monthly by a REC Administrator. Revenue is recognized upon generation. Energy Services 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 in line with the terms of the contract and based on the services provided. Payment is due upon receipt of the invoice. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term. Revenue Recognized Over Time (continued): Segment/ Performance Obligation Description Storage and Transportation Natural gas services The performance obligation of Storage and Transportation is to provide the customer with storage and transportation services. Storage and Transportation generates revenues from firm storage contracts and transportation contracts, injection and withdrawal at the storage facility and the delivery of natural gas to customers. Revenue is recognized over time as customers receive the benefits of its service as it is performed on their behalf using an output method based on actual deliveries. Demand fees are recognized as revenue over the term of the related agreement. 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. NJR Retail enters into warranty contracts with homeowners for various appliances. 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: Energy Services Natural gas services For a permanent release of pipeline capacity, the performance obligation of Energy Services is the release of the pipeline capacity associated with certain natural gas transportation contracts and the transfer of the underlying contractual rights to the counterparty. Revenue is recognized upon the transfer of the underlying contractual rights. Storage and Transportation Natural gas services The performance obligation of Storage and Transportation is to provide the customer with storage and transportation services. Storage and Transportation generates revenues from usage fees and hub services for the use of storage space, injection and withdrawal from the storage facility. Hub services include park and loan transactions and wheeling. Usage fees and hub services revenues are recognized as services are performed. 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 recognized 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 three months ended March 31, 2023 and 2022, are as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total 2023 Natural gas utility sales (1) $ 327,198 — — — — $ 327,198 Natural gas services — — 16,836 20,887 — 37,723 Service contracts — — — — 8,739 8,739 Installations and maintenance — — — — 4,709 4,709 Renewable energy certificates — 2,085 — — — 2,085 Electricity sales — 6,084 — — — 6,084 Eliminations (2) (338) — — (1,584) (183) (2,105) Revenues from contracts with customers 326,860 8,169 16,836 19,303 13,265 384,433 Alternative revenue programs (3) 27,270 — — — — 27,270 Derivative instruments 46,370 6,237 (4) 179,894 — — 232,501 Eliminations (2) — — (177) — — (177) Revenues out of scope 73,640 6,237 179,717 — — 259,594 Total operating revenues $ 400,500 14,406 196,553 19,303 13,265 $ 644,027 2022 Natural gas utility sales (1) $ 381,861 — — — — $ 381,861 Natural gas services — — 17,309 13,342 — 30,651 Service contracts — — — — 8,492 8,492 Installations and maintenance — — — — 4,730 4,730 Renewable energy certificates — 1,019 — — — 1,019 Electricity sales — 6,846 — — — 6,846 Eliminations (2) (338) — — (537) (81) (956) Revenues from contracts with customers 381,523 7,865 17,309 12,805 13,141 432,643 Alternative revenue programs (3) 2,504 — — — — 2,504 Derivative instruments 79,447 3,962 (4) 395,336 — — 478,745 Eliminations (2) — — (1,576) — — (1,576) Revenues out of scope 81,951 3,962 393,760 — — 479,673 Total operating revenues $ 463,474 11,827 411,069 12,805 13,141 $ 912,316 (1) Includes building rent related to the Wall headquarters, which is eliminated in consolidation. (2) Consists of transactions between subsidiaries that are eliminated in consolidation. (3) Includes CIP revenue. (4) Includes SREC revenue. Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the six months ended March 31, 2023 and 2022, are as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total 2023 Natural gas utility sales (1) $ 615,365 — — — — $ 615,365 Natural gas services — — 44,684 47,725 — 92,409 Service contracts — — — — 17,400 17,400 Installations and maintenance — — — — 10,314 10,314 Renewable energy certificates — 3,287 — — — 3,287 Electricity sales — 13,788 — — — 13,788 Eliminations (2) (675) — — (2,708) (196) (3,579) Revenues from contracts with customers 614,690 17,075 44,684 45,017 27,518 748,984 Alternative revenue programs (3) 23,805 — — — — 23,805 Derivative instruments 119,414 10,123 (4) 473,828 — — 603,365 Eliminations (2) — — (8,560) — — (8,560) Revenues out of scope 143,219 10,123 465,268 — — 618,610 Total operating revenues $ 757,909 27,198 509,952 45,017 27,518 $ 1,367,594 2022 Natural gas utility sales (1) $ 605,657 — — — — $ 605,657 Natural gas services — — 45,188 25,485 — 70,673 Service contracts — — — — 16,959 16,959 Installations and maintenance — — — — 10,214 10,214 Renewable energy certificates — 1,865 — — — 1,865 Electricity sales — 13,316 — — — 13,316 Eliminations (2) (675) — — (1,096) (180) (1,951) Revenues from contracts with customers 604,982 15,181 45,188 24,389 26,993 716,733 Alternative revenue programs (3) 13,158 — — — — 13,158 Derivative instruments 119,769 6,829 (4) 736,701 — — 863,299 Eliminations (2) — — (5,032) — — (5,032) Revenues out of scope 132,927 6,829 731,669 — — 871,425 Total operating revenues $ 737,909 22,010 776,857 24,389 26,993 $ 1,588,158 (1) Includes building rent related to the Wall headquarters, which is eliminated in consolidation. (2) Consists of transactions between subsidiaries that are eliminated in consolidation. (3) Includes CIP revenue. (4) Includes SREC revenue. Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended March 31, 2023 and 2022, are as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total 2023 Residential $ 247,623 3,204 — — 13,089 $ 263,916 Commercial and industrial 49,105 4,965 16,836 19,303 176 90,385 Firm transportation 29,368 — — — — 29,368 Interruptible and off-tariff 764 — — — — 764 Revenues out of scope 73,640 6,237 179,717 — — 259,594 Total operating revenues $ 400,500 14,406 196,553 19,303 13,265 $ 644,027 2022 Residential $ 286,205 2,991 — — 13,105 $ 302,301 Commercial and industrial 60,106 4,874 17,309 12,805 36 95,130 Firm transportation 34,636 — — — — 34,636 Interruptible and off-tariff 576 — — — — 576 Revenues out of scope 81,951 3,962 393,760 — — 479,673 Total operating revenues $ 463,474 11,827 411,069 12,805 13,141 $ 912,316 Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the six months ended March 31, 2023 and 2022, are as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total 2023 Residential $ 464,561 6,497 — — 27,269 $ 498,327 Commercial and industrial 92,900 10,578 44,684 45,017 249 193,428 Firm transportation 55,567 — — — — 55,567 Interruptible and off-tariff 1,662 — — — — 1,662 Revenues out of scope 143,219 10,123 465,268 — — 618,610 Total operating revenues $ 757,909 27,198 509,952 45,017 27,518 $ 1,367,594 2022 Residential $ 437,513 5,963 — — 26,880 $ 470,356 Commercial and industrial 107,290 9,218 45,188 24,389 113 186,198 Firm transportation 57,311 — — — — 57,311 Interruptible and off-tariff 2,868 — — — — 2,868 Revenues out of scope 132,927 6,829 731,669 — — 871,425 Total operating revenues $ 737,909 22,010 776,857 24,389 26,993 $ 1,588,158 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 Unaudited Condensed Consolidated Balance Sheets during the six months ended March 31, 2023 and 2022, are as follows: Customer Accounts Receivable Customers' Credit (Thousands) Billed Unbilled Balances and Deposits Balance as of September 30, 2022 $ 222,297 $ 13,769 $ 33,246 (Decrease) increase (27,844) 32,271 (7,725) Balance as of March 31, 2023 $ 194,453 $ 46,040 $ 25,521 Balance as of September 30, 2021 $ 212,838 $ 10,351 $ 32,586 Increase (decrease) 60,475 45,919 (12,302) Balance as of March 31, 2022 $ 273,313 $ 56,270 $ 20,284 The following table provides information about receivables, which are included within accounts receivable, billed and unbilled, and customers’ credit balances and deposits, respectively, on the Unaudited Condensed Consolidated Balance Sheets as of March 31, 2023 and September 30, 2022: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total March 31, 2023 Customer accounts receivable Billed $ 142,275 5,917 37,280 7,090 1,891 $ 194,453 Unbilled 43,020 3,020 — — — 46,040 Customers' credit balances and deposits (25,516) — — (5) — (25,521) Total $ 159,779 8,937 37,280 7,085 1,891 $ 214,972 September 30, 2022 Customer accounts receivable Billed $ 78,508 5,566 129,199 7,012 2,012 $ 222,297 Unbilled 10,814 2,955 — — — 13,769 Customers' credit balances and deposits (33,246) — — — — (33,246) Total $ 56,076 8,521 129,199 7,012 2,012 $ 202,820 |
REGULATION
REGULATION | 6 Months Ended |
Mar. 31, 2023 | |
Regulated Operations [Abstract] | |
REGULATION | 4. REGULATION NJNG is subject to cost-based regulation, therefore, it is permitted to recover authorized operating expenses and earn a reasonable return on its utility capital investments based on the BPU's approval. The impact of the ratemaking process and decisions authorized by the BPU allows NJNG to capitalize or defer certain costs that are expected to be recovered from its customers as regulatory assets and to recognize certain obligations representing amounts that are probable future expenditures as regulatory liabilities in accordance with accounting guidance applicable to regulated operations. NJNG's recovery of costs is facilitated through its base rates, BGSS and other regulatory tariff riders. NJNG is required to make filings to the BPU for review of its BGSS, CIP and other programs and related rates. Annual rate changes are typically requested to be effective at the beginning of the following fiscal year. The current base rates include a weighted average cost of capital of 6.84 percent and a return on common equity of 9.6 percent. All rate and program changes are subject to proper notification and BPU review and approval. In addition, NJNG is permitted to implement certain BGSS rate changes on a provisional basis with proper notification to the BPU. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for NJNG are comprised of the following: (Thousands) March 31, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 6,191 $ 15,697 Conservation Incentive Program 46,903 23,099 Derivatives at fair value, net 68,241 — Other current regulatory assets 1,254 1,290 Total current regulatory assets $ 122,589 $ 40,086 Regulatory assets-noncurrent Environmental remediation costs: Expended, net of recoveries $ 63,256 $ 66,149 Liability for future expenditures 124,493 127,070 Deferred income taxes 41,213 40,520 SAVEGREEN 57,203 52,690 Postemployment and other benefit costs 55,925 56,021 Deferred storm damage costs 1,086 2,172 Cost of removal 111,601 104,850 Other noncurrent regulatory assets 41,769 45,828 Total noncurrent regulatory assets $ 496,546 $ 495,300 Regulatory liability-current Overrecovered natural gas costs $ 12,785 $ 17,807 Derivatives at fair value, net 77 7,972 Total current regulatory liabilities $ 12,862 $ 25,779 Regulatory liabilities-noncurrent Tax Act impact (1) $ 182,857 $ 185,367 Derivatives at fair value, net 602 116 Other noncurrent regulatory liabilities 482 151 Total noncurrent regulatory liabilities $ 183,941 $ 185,634 (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. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017. Other noncurrent regulatory assets include deferred pandemic costs of approximately $3.9 million and $6.9 million as of March 31, 2023 and September 30, 2022, respectively, primarily related to a portion of bad debt associated with customer accounts receivable resulting from the impacts of the ongoing COVID-19 pandemic. These costs are eligible for future regulatory recovery. On January 5, 2023, NJNG advised the BPU that it will cease deferring COVID-19 costs as of December 31, 2022, and will seek recovery of its regulatory asset balance in its next base rate proceeding. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for Adelphia Gateway are comprised of the following: (Thousands) March 31, September 30, Total noncurrent regulatory assets $ 5,283 $ 5,366 Total current regulatory liabilities $ 2,819 $ 5,311 The assets are comprised primarily of the tax benefit associated with the equity component of AFUDC and the liability consists primarily of scheduling penalties. Recovery of regulatory assets is subject to FERC approval. Regulatory filings and/or actions that occurred during the current fiscal year include the following: • On February 22, 2023, NJNG advised the BPU that it would implement a bill credit of approximately $32.5 million, net of tax, and lower the BGSS rate for residential and small commercial customers, which will reduce revenues by approximately $29.9 million, effective March 1, 2023, which was approved on a final basis on April 12, 2023. • On March 30, 2023, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $31.4 million through June 30, 2023, which will result in a $3.5 million revenue increase, with a proposed effective date of October 1, 2023. • On April 12, 2023, the BPU approved on a final basis, NJNG's annual BGSS, balancing charge and CIP rates for residential and small business customers, which includes an $81.9 million increase to the annual revenues credited to BGSS, a $9.0 million annual increase related to its balancing charge and a $10.2 million increase to CIP rates, effective October 1, 2022. • On April 12, 2023, the BPU approved on a final basis, NJNG's annual SBC filing of RAC expenditures through June 30, 2022, as well as an increase to the RAC annual recoveries of $3.7 million and a decrease to the NJCEP annual recoveries of $900,000, effective May 1, 2023. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Mar. 31, 2023 | |
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 natural 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, unless the Company elects NPNS, which is done on a contract-by-contract election. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets. For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the 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 natural gas purchases or operating revenues, as appropriate for Energy Services, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For Energy Services at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of natural 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 natural 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 natural 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 natural gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets, with changes in value recognized in current period earnings. Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. 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 Unaudited Condensed Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. Effective for contracts executed on or after January 1, 2016, NJNG no longer elects NPNS accounting treatment on a portfolio basis. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect to treat certain contracts as 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 natural gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. Clean Energy Ventures The Company elects NPNS accounting treatment on PPA contracts executed by Clean Energy Ventures 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 to treat certain contracts as normal. Fair Value of Derivatives The following table presents the fair value of the Company's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of: Derivatives at Fair Value March 31, 2023 September 30, 2022 (Thousands) Balance Sheet Location Assets Liabilities Assets Liabilities Derivatives not designated as hedging instruments: Natural Gas Distribution: Physical commodity contracts Derivatives - current $ 100 $ 24 $ 252 $ 11 Financial commodity contracts Derivatives - current — — 85 6,281 Energy Services: Physical commodity contracts Derivatives - current 4,262 10,140 9,857 17,051 Derivatives - noncurrent 4 17,368 376 13,561 Financial commodity contracts Derivatives - current 21,296 14,019 14,423 26,488 Derivatives - noncurrent 1,636 — 6,009 630 Foreign currency contracts Derivatives - current — — 18 17 Total fair value of derivatives $ 27,298 $ 41,551 $ 31,020 $ 64,039 Offsetting of Derivatives The Company transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty. However, the Company’s policy is to present its derivative assets and liabilities on a gross basis at the contract level unit of account on the Unaudited Condensed Consolidated Balance Sheets. The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral and the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented on Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of March 31, 2023: Derivative assets: Energy Services Physical commodity contracts $ 4,266 $ (1,060) $ (460) $ 2,746 Financial commodity contracts 22,932 (14,019) — 8,913 Total Energy Services $ 27,198 $ (15,079) $ (460) $ 11,659 Natural Gas Distribution Physical commodity contracts $ 100 $ (1) $ — $ 99 Total Natural Gas Distribution $ 100 $ (1) $ — $ 99 Derivative liabilities: Energy Services Physical commodity contracts $ 27,508 $ (1,060) $ — $ 26,448 Financial commodity contracts 14,019 (14,019) — — Total Energy Services $ 41,527 $ (15,079) $ — $ 26,448 Natural Gas Distribution Physical commodity contracts $ 24 $ (1) $ — $ 23 Total Natural Gas Distribution $ 24 $ (1) $ — $ 23 As of September 30, 2022: Derivative assets: Energy Services Physical commodity contracts $ 10,233 $ (404) $ (200) $ 9,629 Financial commodity contracts 20,432 (12,198) — 8,234 Foreign currency contracts 18 (17) — 1 Total Energy Services $ 30,683 $ (12,619) $ (200) $ 17,864 Natural Gas Distribution Physical commodity contracts $ 252 $ — $ — $ 252 Financial commodity contracts 85 (85) — — Total Natural Gas Distribution $ 337 $ (85) $ — $ 252 Derivative liabilities: Energy Services Physical commodity contracts $ 30,612 $ (404) $ — $ 30,208 Financial commodity contracts 27,118 (12,198) — 14,920 Foreign currency contracts 17 (17) — — Total Energy Services $ 57,747 $ (12,619) $ — $ 45,128 Natural Gas Distribution Physical commodity contracts $ 11 $ — $ — $ 11 Financial commodity contracts 6,281 (85) — 6,196 Total Natural Gas Distribution $ 6,292 $ (85) $ — $ 6,207 (1) Derivative assets and liabilities are presented on a gross basis on the condensed consolidated balance sheets 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 natural gas to be used for storage injection and its subsequent sale at a later date. The gains or (losses) on the financial transactions that are economic hedges of the cost of the purchased natural gas are recognized prior to the gains or (losses) on the physical transaction, which are recognized in earnings when the natural gas is delivered. Therefore, mismatches between the timing of the recognition of realized gains or (losses) on the financial derivative instruments and gains or (losses) associated with the actual sale of the natural gas that is being economically hedged along with fair value changes in derivative instruments, creates volatility in the results of Energy Services, although the Company's intended economic results relating to the entire transaction are unaffected. The following table presents the effect of derivative instruments recognized on the Unaudited Condensed Consolidated Statements of Operations for the periods set forth below: (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized Three Months Ended Six Months Ended March 31, March 31, Derivatives not designated as hedging instruments: 2023 2022 2023 2022 Energy Services: Physical commodity contracts Operating revenues $ 7,208 $ (11,582) $ 17,246 $ (11,432) Physical commodity contracts Natural gas purchases (124) (875) (794) 630 Financial commodity contracts Natural gas purchases 29,863 (31,223) 71,474 29,966 Foreign currency contracts Natural gas purchases — (14) — (14) Total unrealized and realized loss (gain) $ 36,947 $ (43,694) $ 87,926 $ 19,150 NJNG’s derivative contracts are part of the Company's risk management activities that relate to its natural gas purchases and BGSS incentive programs. 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 for the periods set forth below: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2023 2022 2023 2022 Natural Gas Distribution: Physical commodity contracts $ (203) $ 4,538 $ (28,234) $ 6,234 Financial commodity contracts (38,294) 61,485 (69,957) 46,838 Total unrealized and realized (gain) loss $ (38,497) $ 66,023 $ (98,191) $ 53,072 During fiscal 2020, NJR entered into treasury lock transactions to fix the benchmark treasury rate associated with debt issuances that were finalized in 2020. NJR designates its treasury lock contracts as cash flow hedges; therefore, changes in fair value of the effective portion of the hedges are recorded in OCI and upon settlement of the contracts, realized gains and (losses) are reclassified from OCI to interest expense on the Consolidated Statements of Operations ratable over the term of the associated debt. Pre-tax losses of $343,000 were reclassified from OCI into income during both the three months ended March 31, 2023 and 2022, respectively, and pre-tax losses of $686,000 were reclassified during both the six months ended March 31, 2023 and 2022, respectively. NJNG and Energy Services had the following outstanding long (short) derivatives as of: Volume (Bcf) Transaction Type March 31, September 30, Natural Gas Distribution Futures 32.2 30.5 Physical Commodity 8.8 6.8 Energy Services Futures (5.6) (0.7) Physical Commodity (0.2) 2.7 Not included in the above table are 1.5 million and 1.2 million SRECs that were open as of March 31, 2023 and September 30, 2022, respectively, and the notional amount of foreign currency transactions for the periods were immaterial. 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 Natural Gas Distribution and Energy Services. The balances by reporting segment are as follows: (Thousands) Balance Sheet Location March 31, September 30, Natural Gas Distribution Restricted broker margin accounts-current assets $ 12,866 $ 26,138 Energy Services Restricted broker margin accounts-current assets $ 38,703 $ 68,123 Restricted broker margin accounts-current liabilities $ 1,245 $ — Wholesale Credit Risk NJNG, Energy Services, Clean Energy Ventures and Storage and Transportation 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 and SRECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty fails to perform the obligations under its contract 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 March 31, 2023. 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 $ 126,575 Noninvestment grade 13,009 Internally rated investment grade 15,514 Internally rated noninvestment grade 26,407 Total $ 181,505 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. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Mar. 31, 2023 | |
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 loans receivable are recorded based on what the Company expects to receive, which approximates fair value, in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. The Company regularly evaluates the credit quality and collection profile of its customers to approximate fair value. The estimated fair value of long-term debt, including current maturities, excluding natural gas meter finance arrangements, debt issuance costs and solar asset financing obligations, is as follows: (Thousands) March 31, September 30, Carrying value (1) (2) (3) $ 2,537,845 $ 2,362,845 Fair market value $ 2,227,816 $ 1,946,356 (1) Excludes the sale leasebacks of natural gas meters of $35.2 million and $30.3 million as of March 31, 2023 and September 30, 2022, respectively. The fair value of certain sale leasebacks of natural gas meters amounted to $23.4 million and $15.7 million as of March 31, 2023 and September 30, 2022, respectively. (2) Excludes NJNG's debt issuance costs of $9.8 million and $9.5 million as of March 31, 2023 and September 30, 2022, respectively. (3) Excludes NJR's debt issuance costs of $4.0 million and $3.8 million as of March 31, 2023 and September 30, 2022, respectively. Clean Energy Ventures enters into transactions to sell certain commercial solar assets and lease the assets back for a term specified in the lease. These transactions are considered financing obligations for accounting purposes and are recorded within long-term debt on the Unaudited Condensed Consolidated Balance Sheets. The estimated fair value of solar asset financing obligations as of March 31, 2023 and September 30, 2022 was $182.6 million and $124.1 million, respectively. 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 March 31, 2023, the Company discloses 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, investments in equity 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 an 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. Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Thousands) (Level 1) (Level 2) (Level 3) Total As of March 31, 2023: Assets: Physical commodity contracts $ — $ 4,366 $ — $ 4,366 Financial commodity contracts 22,932 — — 22,932 Money market funds 25,099 — — 25,099 Other 2,677 — — 2,677 Total assets at fair value $ 50,708 $ 4,366 $ — $ 55,074 Liabilities: Physical commodity contracts $ — $ 27,532 $ — $ 27,532 Financial commodity contracts 14,019 — — 14,019 Total liabilities at fair value $ 14,019 $ 27,532 $ — $ 41,551 As of September 30, 2022: Assets: Physical commodity contracts $ — $ 10,485 $ — $ 10,485 Financial commodity contracts 20,517 — — 20,517 Financial commodity contracts - foreign exchange — 18 — 18 Money market funds 59 — — 59 Other 1,884 — — 1,884 Total assets at fair value $ 22,460 $ 10,503 $ — $ 32,963 Liabilities: Physical commodity contracts $ — $ 30,623 $ — $ 30,623 Financial commodity contracts 33,231 168 — 33,399 Financial commodity contracts - foreign exchange — 17 — 17 Total liabilities at fair value $ 33,231 $ 30,808 $ — $ 64,039 |
INVESTMENTS IN EQUITY INVESTEES
INVESTMENTS IN EQUITY INVESTEES | 6 Months Ended |
Mar. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS IN EQUITY INVESTEES | 7. INVESTMENTS IN EQUITY INVESTEES Steckman Ridge The Company holds a 50 percent equity method investment in Steckman Ridge, a jointly owned and controlled natural gas storage facility located in Bedford County, Pennsylvania. The Company's investment in Steckman Ridge was $105.1 million and $106.6 million as of March 31, 2023 and September 30, 2022, respectively, which include loans with a total outstanding principal balance of $70.4 million for both March 31, 2023 and September 30, 2022. These loans 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. See Note 15. Related Party Transactions for more information on these intercompany transactions. PennEast The Company, through its subsidiary NJR Midstream Company, is a 20 percent investor in PennEast, a partnership whose purpose was to construct and operate a 120-mile natural gas pipeline that would have extended from northeast Pennsylvania to western New Jersey. During the third quarter of fiscal 2021, the Company recognized an other-than-temporary impairment charge of $92.0 million, or approximately $74.5 million, net of income taxes, which represented the best estimate of the salvage value of the remaining assets of the project and was recorded in equity in earnings of affiliates in the Unaudited Condensed Consolidated Statements of Operations. In September 2021, the PennEast partnership determined that this project was no longer supported, and all further development ceased. In March 2022, the PennEast board of managers approved cash distributions to members of the partnership following the sale of certain project-related assets and refunds of interconnection fees received from interstate pipelines. The return of capital received by the Company from March 2022 through September 2022, totaled $11.0 million and reduced the remaining carrying value of its equity method investment in PennEast to zero in the Unaudited Condensed Consolidated Balance Sheet, with the excess recorded in equity in earnings of affiliates in the Unaudited Condensed Consolidated Statements of Operations. The Company received an additional return of capital of $200,000 on February 15, 2023, which is recognized in equity in earnings of affiliates, in the Unaudited Condensed Consolidated Statements of Operations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Mar. 31, 2023 | |
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: Three Months Ended Six Months Ended March 31, March 31, (Thousands, except per share amounts) 2023 2022 2023 2022 Net income, as reported $ 110,247 $ 96,035 $ 226,168 $ 207,347 Basic earnings per share Weighted average shares of common stock outstanding-basic 96,893 96,068 96,689 96,006 Basic earnings per common share $1.14 $1.00 $2.34 $2.16 Diluted earnings per share Weighted average shares of common stock outstanding-basic 96,893 96,068 96,689 96,006 Incremental shares (1) 663 448 657 474 Weighted average shares of common stock outstanding-diluted 97,556 96,516 97,346 96,480 Diluted earnings per common share $1.13 $1.00 $2.32 $2.15 (1) Incremental shares consist primarily of unvested stock awards and performance shares. |
DEBT
DEBT | 6 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | 9. DEBT NJR and NJNG finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program and committed unsecured credit facilities. Credit Facilities and Short-term Debt A summary of NJR's credit facility and term loan credit agreement and NJNG's commercial paper program and credit facility are as follows: (Thousands) March 31, September 30, Expiration Dates NJR Bank revolving credit facility (1) $ 650,000 $ 650,000 September 2027 Notes outstanding at end of period $ 187,650 $ 200,150 Weighted average interest rate at end of period 5.96 % 3.97 % Amount available at end of period (2) $ 457,177 $ 440,177 Bank term loan credit agreement $ — $ 150,000 February 2023 Loans outstanding at end of period $ — $ 150,000 Weighted average interest rate at end of period — % 3.81 % Amount available at end of period $ — $ — NJNG Bank revolving credit facility (3) $ 250,000 $ 250,000 September 2027 Commercial paper and notes outstanding at end of period $ — $ 73,800 Weighted average interest rate at end of period — % 3.34 % Amount available at end of period (4) $ 249,269 $ 175,469 (1) Committed credit facilities, which require commitment fees of 0.10 percent on the unused amounts. (2) Letters of credit outstanding total $5.2 million at March 31, 2023 and $9.7 million at September 30, 2022, which reduces the amount available by the same amount. (3) Committed credit facilities, which require commitment fees of 0.075 percent on the unused amounts. (4) Letters of credit outstanding total $731,000 at both March 31, 2023 and September 30, 2022, which reduces the amount available by the same amount. Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit facility or term loan. On February 7, 2023, NJR's 364-day $150 million term loan credit agreement, that was entered into in February 2022, expired. The Company had $50 million that was borrowed on February 9, 2022 and $100 million that was borrowed on February 14, 2022, which was paid in full at expiration of the term loan agreement. Long-term Debt NJR On October 24, 2022, NJR entered into a Note Purchase Agreement, which closed on December 15, 2022, under which NJR issued $50 million, Series 2022B senior notes at a fixed rate of 6.14 percent, maturing in 2032. The senior notes are unsecured and guaranteed by certain unregulated subsidiaries of NJR. NJNG On October 24, 2022, NJNG entered into a Note Purchase Agreement under which it sold $125 million of its senior notes at an interest rate of 5.47 percent, maturing in 2052. NJNG received $8.4 million and $17.3 million during the six months ended March 31, 2023 and 2022, respectively, in connection with the sale leaseback of its natural gas meters. NJNG records a financing obligation and has the option to purchase the meters back at fair value upon expiration of the lease. NJNG exercised an early purchase option with respect to meter leases by making a final principal payment of $1.1 million during the six months ended March 31, 2022. There was no early purchase option exercised during the six months ended March 31, 2023. Clean Energy Ventures Clean Energy Ventures enters into transactions to sell the commercial solar assets concurrent with agreements to lease the assets back over a period of five In April 2023, Clean Energy Ventures received additional proceeds of $89.9 million in connection with the sale leaseback of two commercial solar assets. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | 10. EMPLOYEE BENEFIT PLANS Pension and Other Postemployment Benefit Plans The components of the net periodic cost for pension benefits, including the Company's Pension Equalization Plan, and OPEB costs (principally health care and life insurance) for employees and covered dependents were as follows: Pension OPEB Three Months Ended Six Months Ended Three Months Ended Six Months Ended March 31, March 31, March 31, March 31, (Thousands) 2023 2022 2023 2022 2023 2022 2023 2022 Service cost $ 1,351 $ 2,073 $ 2,701 $ 4,146 $ 618 $ 1,076 $ 1,236 $ 2,152 Interest cost 3,793 2,408 7,587 4,816 2,287 1,589 4,573 3,178 Expected return on plan assets (4,993) (5,318) (9,986) (10,637) (1,681) (1,894) (3,361) (3,788) Recognized actuarial loss 75 2,186 150 4,372 — 1,421 — 2,842 Prior service cost (credit) amortization 26 26 51 51 — (36) — (72) Net periodic benefit cost $ 252 $ 1,375 $ 503 $ 2,748 $ 1,224 $ 2,156 $ 2,448 $ 4,312 The Company does not expect to be required to make additional contributions to fund the pension plans during fiscal 2023 based on current actuarial assumptions; however, funding requirements are uncertain and can depend significantly on changes in actuarial assumptions, returns on plan assets and changes in the demographics of eligible employees and covered dependents. In addition, as in the past, the Company may elect to make contributions in excess of the minimum required amount to the plans. There were no discretionary contributions made during the six months ended March 31, 2023 and 2022. 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 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. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 11. INCOME TAXES ASC Topic 740, Income Taxes requires the use of an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating its estimated annual effective tax rate, the Company considers forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and management's estimates will occur as information and assumptions change. Changes in tax laws or tax rates are recognized in the financial reporting period that includes the enactment date, the date in which the act is signed into law. NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with uncertain tax positions. A tax benefit claimed, or expected to be claimed, on a tax return may be recognized only 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 Unaudited Condensed Consolidated Balance Sheets. Effective Tax Rate The estimated annual effective tax rates were 22.1 percent and 22.3 percent, for the six months ended March 31, 2023 and 2022, respectively. To the extent there are discrete tax items that are not included in the estimated annual effective tax rate, the actual reported effective tax rate may differ from the estimated annual effective tax rate. During the six months ended March 31, 2023 and 2022, discrete items totaled approximately $554,000 and $166,000, respectively, related to excess tax benefits associated with the vesting of share-based awards. NJR’s actual reported effective tax rate was 21.9 percent and 22.3 percent during the six months ended March 31, 2023 and 2022, respectively. Inflation Reduction Act On August 16, 2022, the President of the U.S. signed the Inflation Reduction Act, which contains provisions addressing inflation, clean energy, healthcare and taxes beginning in 2023. The Inflation Reduction Act imposes a 15 percent minimum tax rate on corporations with higher than $1 billion of annual income, along with a 1 percent excise tax on corporate stock repurchases. The Inflation Reduction Act raised the ITC from 26 percent to 30 percent through the end of 2032, dropping to 26 percent for property under construction before the end of 2033 and to 22 percent for property under construction before the end of 2034. The ITC expires starting in 2035 unless it is renewed. There are additional opportunities to increase the credit amount for certain facilities that are placed in service after December 31, 2022. The credit amount can be increased by 10 percent if certain domestic content requirements are satisfied or if the facility is located in an energy community, such as a brownfield site. ITCs are also expanded to include stand-alone energy storage projects without being integrated into a solar facility, allowing solar to claim PTCs that are a production-based credit extending for 10 years following the placed-in-service date of the facility and introduced the concept of transferability of tax credits, providing an additional option to monetize such credits. The Company evaluated the impacts of the Inflation Reduction Act on its financial position, results of operations and cash flows, noting the corporate alternative minimum tax does not impact the Company as the applicable income thresholds have not been met. Upon the repurchase of common stock through the Company’s share repurchase program, the Company would be subject to the 1 percent excise tax. It is expected the ITC revisions of the Inflation Reduction Act could result in potential opportunities, however the Company cannot reasonably estimate the future impacts at this time. Other Tax Items As of March 31, 2023 and September 30, 2022, the Company has tax credit carryforwards of approximately $171.6 million and $211.8 million, respectively, which each have a life of 20 years. The Company expects to utilize this entire carryforward prior to expiration, which would begin in fiscal 2035. The impairment of the equity method investment in PennEast created net capital loss attributes, which can only be utilized to offset capital gains income and can be carried back three years and forward five years prior to expiration. These attributes totaled approximately $56.4 million and $56.6 million as of March 31, 2023 and September 30, 2022. As of March 31, 2023 and September 30, 2022, the Company had a valuation allowance of approximately $5.0 million and $5.1 million, respectively, related to capital loss carryforwards resulting from the impairment of the equity method investment in PennEast, which the Company believes are not more likely than not to be fully utilized prior to expiration. As of March 31, 2023 and September 30, 2022, the Company has state income tax net operating losses of approximately $516.1 million and $544.4 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 As of March 31, 2023 and September 30, 2022, the Company had a valuation allowance of approximately $16.8 million and $17.2 million, respectively, related to the recognition of state net operating loss carryforwards, which primarily relate to New Jersey. The Company will maintain this valuation allowance until there is sufficient positive evidence to support its reversal. The Company believes within the next 12 months there is a reasonable possibility that sufficient positive evidence may become available to allow us to reach a conclusion that a significant portion, if not all, of the valuation allowance will no longer be needed. Reversal of the valuation allowance would result in the recognition of certain deferred tax assets with a corresponding decrease to income tax expense in the period that the reversal is recorded. However, the exact timing and amount of the valuation allowance reversal are subject to change. 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 Internal Revenue Service guidance around ITC safe harbor determination. The credit declined to 26 percent for property under construction before the end of 2020. The Consolidated Appropriations Act of 2021 extended the 26 percent tax credit for property under construction during 2021 and 2022. The Inflation Reduction Act raised the ITC from 26 percent to 30 percent through the end of 2032, as previously stated. |
LEASES
LEASES | 6 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
LEASES | 12. LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria is satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases . Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases. The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale leaseback of certain natural gas meters. Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. The variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of natural gas stored in the storage caverns. Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five two seven Leases . The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation. The following table presents the Company's lease costs included in the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended Six Months Ended March 31, March 31, (Thousands) Income Statement Location 2023 2022 2023 2022 Operating lease cost (1) Operation and maintenance $ 2,307 $ 2,915 $ 4,724 $ 5,034 Finance lease cost (2) Amortization of right-of-use assets Depreciation and amortization 540 457 1,025 $ 853 Interest on lease liabilities Interest expense, net of capitalized interest 298 104 533 $ 184 Total finance lease cost 838 561 1,558 $ 1,037 Short-term lease cost Operation and maintenance — 12 — $ 23 Variable lease cost Operation and maintenance 272 172 495 $ 363 Total lease cost $ 3,417 $ 3,660 $ 6,777 $ 6,457 (1) Net of capitalized costs. (2) Includes immaterial costs associated with the sale leaseback of natural gas meters, certain of which are considered financing transactions for accounting purposes. The following table presents supplemental cash flow information related to leases: Six Months Ended March 31, (Thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 3,652 $ 3,557 Operating cash flows for finance leases (1) $ 533 $ 404 Financing cash flows for finance leases (1) $ 3,577 $ 3,947 (1) Includes immaterial activity associated with the sale leaseback of natural gas meters, certain of which are considered financing transactions for accounting purposes. Assets obtained or modified through operating leases totaled approximately $287,000 and $407,000 during the three and six months ended March 31, 2023 and $17,000 and $825,000 during the three and six months ended March 31, 2022, respectively. Assets obtained or modified through other leases, including those which are finance leases and financing transactions for accounting purposes, totaled $8.4 million and $17.3 million during the six months ended March 31, 2023 and 2022, respectively. There were no assets obtained or modified through finance lease liabilities during the three months ended March 31, 2023 and 2022. The following table presents the balance and classifications of the Company's right of use assets and lease liabilities included in the Unaudited Condensed Consolidated Balance Sheets: (Thousands) Balance Sheet Location March 31, September 30, Assets Noncurrent Operating lease assets Operating lease assets $ 165,783 $ 168,520 Finance lease assets (1) Utility plant 29,328 21,913 Total lease assets (1) $ 195,111 $ 190,433 Liabilities Current Operating lease liabilities Operating lease liabilities $ 5,308 $ 4,562 Finance lease liabilities (1) Current maturities of long-term debt 8,773 6,538 Noncurrent Operating lease liabilities Operating lease liabilities 136,789 138,382 Finance lease liabilities (1) Long-term debt 26,380 23,752 Total lease liabilities (1) $ 177,250 $ 173,234 (1) Includes immaterial amounts associated with the sale leaseback of natural gas meters, certain of which are considered financing transactions for accounting purposes. For operating lease assets and liabilities, the weighted average remaining lease term was 29.1 years and 29.2 years as of March 31, 2023 and September 30, 2022, respectively, and the weighted average discount rate used in the valuation over the remaining lease term was 3.2 percent for both March 31, 2023 and September 30, 2022. |
LEASES | 12. LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria is satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases . Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases. The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale leaseback of certain natural gas meters. Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. The variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of natural gas stored in the storage caverns. Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five two seven Leases . The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation. The following table presents the Company's lease costs included in the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended Six Months Ended March 31, March 31, (Thousands) Income Statement Location 2023 2022 2023 2022 Operating lease cost (1) Operation and maintenance $ 2,307 $ 2,915 $ 4,724 $ 5,034 Finance lease cost (2) Amortization of right-of-use assets Depreciation and amortization 540 457 1,025 $ 853 Interest on lease liabilities Interest expense, net of capitalized interest 298 104 533 $ 184 Total finance lease cost 838 561 1,558 $ 1,037 Short-term lease cost Operation and maintenance — 12 — $ 23 Variable lease cost Operation and maintenance 272 172 495 $ 363 Total lease cost $ 3,417 $ 3,660 $ 6,777 $ 6,457 (1) Net of capitalized costs. (2) Includes immaterial costs associated with the sale leaseback of natural gas meters, certain of which are considered financing transactions for accounting purposes. The following table presents supplemental cash flow information related to leases: Six Months Ended March 31, (Thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 3,652 $ 3,557 Operating cash flows for finance leases (1) $ 533 $ 404 Financing cash flows for finance leases (1) $ 3,577 $ 3,947 (1) Includes immaterial activity associated with the sale leaseback of natural gas meters, certain of which are considered financing transactions for accounting purposes. Assets obtained or modified through operating leases totaled approximately $287,000 and $407,000 during the three and six months ended March 31, 2023 and $17,000 and $825,000 during the three and six months ended March 31, 2022, respectively. Assets obtained or modified through other leases, including those which are finance leases and financing transactions for accounting purposes, totaled $8.4 million and $17.3 million during the six months ended March 31, 2023 and 2022, respectively. There were no assets obtained or modified through finance lease liabilities during the three months ended March 31, 2023 and 2022. The following table presents the balance and classifications of the Company's right of use assets and lease liabilities included in the Unaudited Condensed Consolidated Balance Sheets: (Thousands) Balance Sheet Location March 31, September 30, Assets Noncurrent Operating lease assets Operating lease assets $ 165,783 $ 168,520 Finance lease assets (1) Utility plant 29,328 21,913 Total lease assets (1) $ 195,111 $ 190,433 Liabilities Current Operating lease liabilities Operating lease liabilities $ 5,308 $ 4,562 Finance lease liabilities (1) Current maturities of long-term debt 8,773 6,538 Noncurrent Operating lease liabilities Operating lease liabilities 136,789 138,382 Finance lease liabilities (1) Long-term debt 26,380 23,752 Total lease liabilities (1) $ 177,250 $ 173,234 (1) Includes immaterial amounts associated with the sale leaseback of natural gas meters, certain of which are considered financing transactions for accounting purposes. For operating lease assets and liabilities, the weighted average remaining lease term was 29.1 years and 29.2 years as of March 31, 2023 and September 30, 2022, respectively, and the weighted average discount rate used in the valuation over the remaining lease term was 3.2 percent for both March 31, 2023 and September 30, 2022. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | 13. COMMITMENTS AND CONTINGENT LIABILITIES Cash Commitments NJNG has entered into long-term contracts, expiring at various dates through September 2039, for the supply, transportation and storage of natural gas. These contracts include annual fixed charges of approximately $186.4 million at current contract rates and volumes for the remainder of the fiscal year, which are recoverable through BGSS. For the purpose of securing storage and pipeline capacity, Energy Services enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by Energy Services to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one Commitments as of March 31, 2023, for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2023 2024 2025 2026 2027 Thereafter Energy Services: Natural gas purchases $ 24,692 $ 13,502 $ 1,721 $ — $ — $ — Storage demand fees 10,825 16,688 7,838 4,654 2,166 794 Pipeline demand fees 30,339 50,638 44,948 33,952 26,353 34,710 Sub-total Energy Services $ 65,856 $ 80,828 $ 54,507 $ 38,606 $ 28,519 $ 35,504 NJNG: Natural gas purchases $ 14,833 $ 539 $ — $ — $ — $ — Storage demand fees 22,472 42,049 30,048 14,353 9,541 4,772 Pipeline demand fees 69,512 139,933 151,969 130,447 124,211 1,058,159 Sub-total NJNG $ 106,817 $ 182,521 $ 182,017 $ 144,800 $ 133,752 $ 1,062,931 Total $ 172,673 $ 263,349 $ 236,524 $ 183,406 $ 162,271 $ 1,098,435 Certain pipeline demand fees totaling approximately $4.0 million per year, for which Energy Services is the responsible party, are being paid for by the counterparty to a capacity release transaction beginning November 1, 2021 for a period of 10 years. 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, Freehold and Aberdeen, New Jersey, including a review of potential liability for investigation and remedial action. NJNG estimates the 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 will range from approximately $110.8 million to $167.1 million. NJNG’s estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG’s policy to accrue the lower end of the range. Accordingly, as of March 31, 2023, NJNG recorded a MGP remediation liability and a corresponding regulatory asset of approximately $124.5 million on the Unaudited Condensed Consolidated Balance Sheets based on the most likely amount. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and 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 former MGP operations were active at the location. The preliminary assessment and site investigation activities are ongoing at the Aberdeen, New Jersey site location. The estimated costs to complete the preliminary assessment and site investigation phase are included in the MGP remediation liability and corresponding regulatory asset on the Unaudited Condensed Consolidated Balance Sheets at March 31, 2023 and September 30, 2022. NJNG will continue to gather information to determine whether the obligation exists to undertake remedial action, if any, and refine its estimate of potential costs for this site as more information 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 23, 2022, the BPU approved an increase in the RAC, which increased the pre-tax annual recovery from $11.1 million to $11.7 million, effective April 1, 2022. On April 12, 2023, the BPU approved on a final basis, NJNG's annual SBC filing of RAC expenditures through June 30, 2022, as well as an increase to the RAC annual recoveries of $3.7 million, which increased the pre-tax annual recovery to $15.4 million, effective May 1, 2023. As of March 31, 2023, $63.3 million of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Unaudited Condensed Consolidated Balance Sheets. NJNG 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, the Company 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. The Company also discloses contingent matters for which there is a reasonable possibility of a loss. Based upon currently available information, the Company believes that the results of litigation that are 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 the Company’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. |
REPORTING SEGMENT AND OTHER OPE
REPORTING SEGMENT AND OTHER OPERATIONS DATA | 6 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
REPORTING SEGMENT AND OTHER OPERATIONS DATA | 14. 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: Natural Gas Distribution consists of regulated energy and off-system, capacity and storage management operations; Clean Energy Ventures consists of capital investments in clean energy projects; Energy Services consists of unregulated wholesale and retail energy operations; Storage and Transportation consists of the Company’s investments in natural gas transportation and storage facilities; the Home Services and Other business operations consist of heating, cooling and water appliance sales, installations and services, other investments and general corporate activities. Information related to the Company's various reporting segments and other operations is detailed below: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2023 2022 2023 2022 Operating revenues Natural Gas Distribution External customers $ 400,500 $ 463,474 $ 757,909 $ 737,909 Intercompany 338 338 675 675 Clean Energy Ventures External customers 14,406 11,827 27,198 22,010 Energy Services External customers (1) 196,553 411,069 509,952 776,857 Intercompany 177 1,576 8,560 5,032 Storage and Transportation External customers 19,303 12,805 45,017 24,389 Intercompany 1,584 537 2,708 1,096 Subtotal 632,861 901,626 1,352,019 1,567,968 Home Services and Other External customers 13,265 13,141 27,518 26,993 Intercompany 183 81 196 180 Eliminations (2,282) (2,532) (12,139) (6,983) Total $ 644,027 $ 912,316 $ 1,367,594 $ 1,588,158 Depreciation and amortization Natural Gas Distribution $ 25,319 $ 23,344 $ 50,209 $ 46,237 Clean Energy Ventures 6,465 5,311 12,041 10,544 Energy Services (2) 62 32 119 60 Storage and Transportation 6,020 2,571 11,962 4,704 Subtotal 37,866 31,258 74,331 61,545 Home Services and Other 224 203 442 407 Eliminations — (26) — (124) Total $ 38,090 $ 31,435 $ 74,773 $ 61,828 Interest income (3) Natural Gas Distribution $ 376 $ 191 $ 789 $ 384 Energy Services 380 — 649 — Storage and Transportation 1,684 381 3,085 758 Subtotal 2,440 572 4,523 1,142 Home Services and Other 734 147 1,388 302 Eliminations (938) (231) (1,716) (455) Total $ 2,236 $ 488 $ 4,195 $ 989 (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 natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations. (3) Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2023 2022 2023 2022 Interest expense, net of capitalized interest Natural Gas Distribution $ 13,879 $ 10,764 $ 27,588 $ 21,759 Clean Energy Ventures 7,316 5,395 13,211 10,822 Energy Services 2,749 795 5,807 1,470 Storage and Transportation 6,128 1,847 12,835 3,983 Subtotal 30,072 18,801 59,441 38,034 Home Services and Other 189 125 311 369 Total $ 30,261 $ 18,926 $ 59,752 $ 38,403 Income tax provision (benefit) Natural Gas Distribution $ 23,924 $ 29,689 $ 38,307 $ 42,893 Clean Energy Ventures (3,005) (1,952) (4,842) (3,998) Energy Services 5,916 (790) 25,980 19,715 Storage and Transportation 596 714 2,539 1,057 Subtotal 27,431 27,661 61,984 59,667 Home Services and Other 488 256 705 502 Eliminations 2,667 893 875 (552) Total $ 30,586 $ 28,810 $ 63,564 $ 59,617 Equity in earnings of affiliates Storage and Transportation $ 977 $ 1,256 $ 1,886 $ 2,312 Eliminations 154 (487) 191 (968) Total $ 1,131 $ 769 $ 2,077 $ 1,344 Net financial earnings (loss) Natural Gas Distribution $ 100,697 $ 102,783 $ 155,361 $ 153,863 Clean Energy Ventures (9,379) (6,491) (12,961) (13,312) Energy Services 21,125 29,940 73,658 47,507 Storage and Transportation 2,450 4,625 8,693 7,587 Subtotal 114,893 130,857 224,751 195,645 Home Services and Other 813 451 784 898 Eliminations (3,396) (1,102) (2,941) (567) Total $ 112,310 $ 130,206 $ 222,594 $ 195,976 Capital expenditures Natural Gas Distribution $ 92,600 $ 52,000 $ 174,671 $ 125,464 Clean Energy Ventures 13,706 41,176 57,699 66,556 Storage and Transportation 10,122 43,673 29,841 109,048 Subtotal 116,428 136,849 262,211 301,068 Home Services and Other 760 163 900 242 Total $ 117,188 $ 137,012 $ 263,111 $ 301,310 Return of capital from equity investees Storage and Transportation $ — $ (4,000) $ — $ (4,000) Total $ — $ (4,000) $ — $ (4,000) The Company's assets for the various reporting segments and business operations are detailed below: (Thousands) March 31, September 30, Assets at end of period: Natural Gas Distribution $ 4,194,970 $ 4,030,686 Clean Energy Ventures 1,056,744 1,015,065 Energy Services 167,876 333,064 Storage and Transportation 1,007,694 999,520 Subtotal 6,427,284 6,378,335 Home Services and Other 153,914 159,068 Intercompany assets (1) (285,065) (275,987) Total $ 6,296,133 $ 6,261,416 (1) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. 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: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2023 2022 2023 2022 Net financial earnings $ 112,310 $ 130,206 $ 222,594 $ 195,976 Less: Unrealized loss (gain) on derivative instruments and related transactions 13,971 42,022 (17,532) (40,169) Tax effect (3,320) (9,980) 4,167 9,556 Effects of economic hedging related to natural gas inventory (11,203) 1,155 12,769 24,732 Tax effect 2,662 (274) (3,035) (5,877) Gain on equity method investment (200) — (200) — Tax effect 50 — 50 — NFE tax adjustment 103 1,248 207 387 Net income $ 110,247 $ 96,035 $ 226,168 $ 207,347 The Company uses derivative instruments as economic hedges of purchases and sales of physical natural 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 natural gas related to physical natural gas flow are recognized when the natural gas is delivered to customers. Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical natural gas flows. Timing differences occur in two ways: • unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical natural 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 natural 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 natural 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. 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 natural gas flows. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are considered unusual in nature and occur infrequently such that they are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE. The Company also calculates a quarterly tax adjustment based on an estimated annual effective tax rate for NFE purposes. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 15. RELATED PARTY TRANSACTIONS Effective April 1, 2020, NJNG entered into a 5-year agreement for 3 Bcf of firm storage capacity with Steckman Ridge, which expires on March 31, 2025. Under the terms of the agreement, NJNG incurs demand fees, at market rates, of approximately $9.3 million annually, a portion of which is eliminated in consolidation. These fees are recoverable through NJNG’s BGSS mechanism and are included as a component of regulatory assets. Energy Services may periodically enter into storage or park and loan agreements with its affiliated FERC-jurisdictional natural gas storage facility, Steckman Ridge. As of March 31, 2023, Energy Services entered into transactions with Steckman Ridge for varying terms, all of which expire by March 31, 2024. Demand fees, net of eliminations, associated with Steckman Ridge were as follows: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2023 2022 2023 2022 Natural Gas Distribution $ 1,615 $ 1,546 $ 3,270 $ 3,104 Energy Services 155 337 327 625 Total $ 1,770 $ 1,883 $ 3,597 $ 3,729 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) March 31, September 30, Natural Gas Distribution $ 775 $ 775 Energy Services 81 76 Total $ 856 $ 851 NJNG and Energy Services have entered into various AMAs, the effects of which are eliminated in consolidation. Under the terms of these agreements, NJNG releases certain transportation and storage contracts to Energy Services. As of March 31, 2023, NJNG and Energy Services had one AMA with an expiration date of March 31, 2024. NJNG entered into a 5-year transportation agreement with Adelphia Gateway for committed capacity of 130,000 Dekatherms per day in Zone South, which began on August 9, 2022. Energy Services has a 5-year agreement for 3 Bcf of firm storage capacity with Leaf River, which is eliminated in consolidation and expires in March 2024. In March 2021, NJNG and Clean Energy Ventures entered into a 15-year sublease and PPA agreement related to an onsite solar array and the related energy output at the Company’s headquarters in Wall, New Jersey, the effects of which are immaterial to the consolidated financial statements. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation. In June 2022, NJNG and Clean Energy Ventures entered into a 20-year sublease and PPA agreement related to an onsite solar array and the related energy output at the Company’s liquefied natural gas plant in Howell, New Jersey, the effects of which are immaterial to the consolidated financial statements. NJNG entered into a 15-year transportation precedent agreement with Adelphia Gateway for committed capacity of 130,000 Dekatherms per day in Zone North, beginning November 1, 2023; however, the agreement term will automatically be reduced to 7 years if Transcontinental Gas Pipe Line Corporation has not placed its Regional Energy Access Expansion project into service by October 31, 2030. The intercompany profits for certain transactions between NJNG and Energy Services and NJNG and Adelphia Gateway are not eliminated in accordance with ASC 980, Regulated Operations. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Consolidation | The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared by the Company in accordance with the rules and regulations of the U.S. Securities and Exchange Commission and GAAP. The September 30, 2022 Balance Sheet data is derived from the audited financial statements of the Company. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's 2022 Annual Report on Form 10-K. The Unaudited Condensed Consolidated Financial Statements include the accounts of NJR and its subsidiaries. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary for a fair presentation of the results of the interim periods presented. These adjustments are of a normal and recurring nature. Because of the seasonal nature of the Company's utility and wholesale energy services operations, in addition to other factors, the financial results for the interim periods presented are not indicative of the results that are to be expected for the fiscal year ending September 30, 2023. Intercompany transactions and accounts have been eliminated. |
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. Asset retirement obligations are evaluated periodically as required. 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. |
Revenues | Revenues Revenues from the sale of natural gas to NJNG customers are recognized in the period that natural 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 natural 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. The Clean Energy Act of 2018 established guidelines for the closure of the SREC registration program to new applicants in New Jersey. The SREC program officially closed to new qualified solar projects on April 30, 2020. In December 2019, the BPU established the TREC as the successor to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined. In July 2021, the BPU established a new successor solar incentive program. This Administratively Determined Incentive Program, which we refer to as SREC IIs, provides administratively set incentives for net metered residential projects and net metered non-residential projects of 5 MW or less. TREC & SREC IIs generated are required to be purchased monthly by a REC program administrator as appointed by the BPU. Revenue is recognized when RECs are generated and are transferred monthly based upon metered solar electricity activity. 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. Energy Services also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues. During December 2020, Energy Services entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts, which commenced on November 1, 2021. The AMAs include a series of temporary and permanent releases and revenue under these agreements is recognized as the performance obligations are satisfied. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term. For permanent releases of pipeline capacity, which represent a transfer of contractual rights for such capacity, revenue is recognized upon the transfer of the underlying contractual rights. Energy Services recognized operating revenue of $9.5 million and $29.5 million during the three and six months ended March 31, 2023, respectively, and $10.3 million and $32.4 million during the three and six months ended March 31, 2022, respectively, on the Unaudited Condensed Consolidated Statements of Operations. Amounts received in excess of revenue totaling $77.7 million and $33.8 million are included in deferred revenue on the Unaudited Condensed Consolidated Balance Sheets as of March 31, 2023 and September 30, 2022, respectively. Storage and Transportation generates revenues from firm storage contracts and transportation contracts, related usage fees and hub services for the use of storage space, injections and withdrawals from their natural gas storage facility and the delivery of natural gas to customers. Demand fees are recognized as revenue over the term of the related agreement while usage fees and hub services revenues are recognized as services are performed. |
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 related to escrow balances for utility plant projects at NJNG, which are recorded in other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company segregates financial assets, primarily trade receivables and unbilled revenues due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations, and macroeconomic factors, such as unemployment rates among others, including the estimated impact of the ongoing pandemic on the outstanding balances. |
Loans Receivable | Loans ReceivableNJNG currently provides loans, with terms ranging from two |
Software Costs | 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. |
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 or repurchase the asset at the end of the term. Proceeds from sale leaseback transactions are accounted for as financing arrangements and are included in long-term debt on the Unaudited Condensed Consolidated Balance Sheets. 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 arrangement does not qualify as a sale as the Company retains control of the underlying assets, the Company uses the financing method to account for the transaction. Under the financing method, the Company recognizes the proceeds received from the buyer-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 Unaudited Condensed Consolidated Balance Sheets. The Company continues to operate the solar assets and is responsible for related expenses and entitled to retain the revenue generated from SRECs, TRECs, SREC IIs and energy sales. The ITCs and other tax benefits associated with these solar projects transfer to the buyer; however, the payments are structured so that Clean Energy Ventures is compensated for the transfer of the related tax attributes. Accordingly, Clean Energy Ventures recognizes the equivalent value of the tax attributes in other income on the Unaudited Condensed Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease. See Note 9. Debt for more details regarding sale leaseback transactions recorded as financing arrangements. |
Recently Adopted Updates to the Accounting Standards Codification | Recently Adopted Updates to the Accounting Standards Codification Debt and Other In August 2020, the FASB issued ASU No. 2020-06, an amendment to ASC 470, Debt , and ASC 815, Derivatives and Hedging , which changes the accounting for convertible instruments by reducing the number of acceptable accounting models to three models including, the embedded derivative, substantial premium, and traditional no proceeds allocated models. The Company adopted this guidance on October 1, 2022. The Company does not currently have convertible debt instruments, and as a resultthere was no impact on its financial position, results of operations, cash flows and disclosures upon adoption. In May 2021, the FASB issued ASU No. 2021-04, an amendment to ASC 470, Debt , ASC 260, Earnings per Share , ASC 718, Stock Compensation , and ASC 815, Derivatives and Hedging. The update impacts equity-classified written call options that remain equity-classified after a modification or exchange. The Company adopted this guidance on October 1, 2022, on a prospective basis. As the Company does not currently have equity-classified written call options, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption. Leases In July 2021, the FASB issued ASU No. 2021-05, an amendment to ASC 842, Leases , which requires a lessor to classify a lease with entirely or partially variable payments that do not depend on an index or rate as an operating lease if another classification, including sales-type or direct financing would trigger a loss at the lease commencement date. The Company adopted this guidance on October 1, 2022, on a prospective basis. The Company currently does not have any leases that meet this criteria, as such there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption. Other Recent Updates to the Accounting Standards Codification Business Combinations In October 2021, the FASB issued ASU No. 2021-08, an amendment to ASC 805, Business Combinations , which requires that an acquirer recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers . The guidance is effective for the Company beginning October 1, 2023, and will be applied on a prospective basis to new acquisitions following the date of adoption. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations, cash flows and disclosures upon adoption. Derivatives and Hedging In March 2022, the FASB issued ASU No. 2022-01, an amendment to ASC 815, Derivatives and Hedging , which addresses fair value hedge accounting of interest rate risk for portfolios of financial assets. This update further clarifies guidance previously released in ASU 2017-12 which established the "last-of-layer" method and this update renames that method as the “portfolio layer” method. The guidance is effective for the Company beginning October 1, 2023, and the transition method can be on a prospective basis for a multiple-layer hedging strategy or a modified retrospective basis for a portfolio layer method. As the Company does not currently apply hedge accounting to any of its risk management activities, it does not expect the amendment to have an impact on its financial position, results of operations, cash flows and disclosures upon adoption. Financial Instruments In March 2022, the FASB issued ASU No. 2022-02, an amendment to ASC 326, Financial Instruments-Credit Losses , which eliminates the accounting guidance for creditors in troubled debt restructuring. It also aligns conflicting disclosure requirement guidance in ASC 326 by requiring disclosure of current-period gross write-offs by year of origination. The amendment also adds new disclosures for creditors with loan refinancing and restructuring for borrowers experiencing financial difficulty. The guidance is effective for the Company beginning October 1, 2023, and the Company can elect to apply it either on a modified retrospective or prospective basis. At this time, the Company has not experienced a troubled debt restructuring and does not expect the amendments to have an impact on its financial position, results of operations and cash flows upon adoption. The Company is currently evaluating the amendment to understand the impact on its disclosures upon adoption. Fair Value Measurement In June 2022, the FASB issued ASU No. 2022-03, an amendment to ASC 820, Fair Value Measurement. The amendment clarifies the fair value principles when measuring the fair value of an equity security subject to a contractual sale restriction. The guidance is effective for the Company on October 1, 2024, and will be applied on a prospective basis. At this time, the Company does not have equity securities subject to contractual sale restrictions, and therefore this amendment would only impact the Company upon adoption if, in the future, it entered into such transactions. Leases In March 2023, the FASB issued ASU No. 2023-01, an amendment to ASC 842, Leases, which applies to arrangements between related parties under common control. This update requires that all entities with common control arrangements classify and account for these leases on the same basis as an arrangement with an unrelated party. If the lessee in these types of arrangements continues to control the use of the underlying asset through a lease, the leasehold improvements are to be amortized over the improvements’ useful life to the common control group, regardless of the lease term. The guidance is effective for the Company on October 1, 2024, and the Company can elect to apply it either on a prospective basis or retrospectively beginning October 1, 2019, representing the date which the Company adopted ASC 842. The Company is currently evaluating the amendment to understand the impact on its financial position, results of operations, cash flows and disclosures upon adoption. |
Derivative Instruments | The Company is subject primarily to commodity price risk due to fluctuations in the market price of natural gas, SRECs and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs and electricity. In addition, the Company is exposed to foreign currency and interest rate risk and may utilize foreign currency derivatives to hedge Canadian dollar denominated natural 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, unless the Company elects NPNS, which is done on a contract-by-contract election. Accordingly, all of the financial and certain of the Company's physical derivative instruments are recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets. For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the 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 natural gas purchases or operating revenues, as appropriate for Energy Services, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For Energy Services at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of natural 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 natural 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 natural 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 natural gas is expected to occur, and is considered a derivative transaction that is recorded at fair value on the Unaudited Condensed Consolidated Balance Sheets, with changes in value recognized in current period earnings. Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. 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 Unaudited Condensed Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. Effective for contracts executed on or after January 1, 2016, NJNG no longer elects NPNS accounting treatment on a portfolio basis. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect to treat certain contracts as 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 natural gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Unaudited Condensed Consolidated Balance Sheets. Clean Energy Ventures The Company elects NPNS accounting treatment on PPA contracts executed by Clean Energy Ventures 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 to treat certain contracts as normal. Offsetting of Derivatives The Company transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty. However, the Company’s policy is to present its derivative assets and liabilities on a gross basis at the contract level unit of account on the Unaudited Condensed Consolidated Balance Sheets. |
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, investments in equity 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 an 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. |
Lessee Accounting | Lessee Accounting The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria is satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases . Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases. The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale leaseback of certain natural gas meters. Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. The variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of natural gas stored in the storage caverns. Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five two seven Leases . |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Restricted Cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Unaudited Condensed Consolidated Balance Sheets to the total amounts in the Unaudited Condensed Consolidated Statements of Cash Flows as follows: (Thousands) March 31, September 30, March 31, Balance Sheet Cash and cash equivalents $ 27,095 $ 1,107 $ 13,906 Restricted cash in other noncurrent assets $ 461 $ 345 $ 1,294 Statements of Cash Flow Cash, cash equivalents and restricted cash $ 27,556 $ 1,452 $ 15,200 |
Summary of Natural Gas in Storage | The following table summarizes natural gas in storage, at average cost by segment as of: March 31, 2023 September 30, 2022 ($ in thousands) Natural Gas in Storage Bcf Natural Gas in Storage Bcf Natural Gas Distribution $ 44,308 6.3 $ 191,175 29.0 Energy Services 40,608 12.0 82,469 10.8 Total $ 84,916 18.3 $ 273,644 39.8 |
Schedule of Software Costs Included in the Consolidated Financial Statements | The following tables present the software costs included in the Unaudited Condensed Consolidated Financial Statements: (Thousands) March 31, September 30, Balance Sheets Utility plant, at cost $ 48,950 $ 40,437 Construction work in progress $ 29,404 $ 14,381 Nonutility plant and equipment, at cost $ 344 $ 344 Accumulated depreciation and amortization, utility plant $ (5,184) $ (3,361) Accumulated depreciation and amortization, nonutility plant and equipment $ (30) $ (25) Software costs $ 6,980 $ 6,120 Three Months Ended Six Months Ended March 31, March 31, Statements of Operations 2023 2022 2023 2022 Operation and maintenance (1) $ 3,886 $ 2,828 $ 7,638 $ 5,351 Depreciation and amortization $ 957 $ 303 $ 1,828 $ 602 (1) During the three and six months ended March 31, 2023, approximately $148,000 and $261,000, respectively, was amortized from software costs into O&M. During the three and six months ended March 31, 2022, approximately $113,000 and $225,000, respectively, was amortized from software costs into O&M. |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the changes in the components of accumulated other comprehensive loss, net of related tax effects during the three months ended March 31, 2023 and 2022: (Thousands) Cash Flow Hedges Postemployment Benefit Obligation Total Balance at December 31, 2022 $ (8,059) $ 3,537 $ (4,522) Other comprehensive income, net of tax Amounts reclassified from accumulated other comprehensive loss, net of tax of $(80), $(13), $(93), respectively 264 41 (1) 305 Balance at March 31, 2023 $ (7,795) $ 3,578 $ (4,217) Balance at December 31, 2021 $ (9,112) $ (24,386) $ (33,498) Other comprehensive income, net of tax Amounts reclassified from accumulated other comprehensive loss, net of tax of $(80), $(232), $(312) 263 768 (1) 1,031 Balance at March 31, 2022 $ (8,849) $ (23,618) $ (32,467) (1) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations. The following table presents the changes in the components of accumulated other comprehensive loss, net of related tax effects during the six months ended March 31, 2023 and 2022: (Thousands) Cash Flow Hedges Postemployment Benefit Obligation Total Balance at September 30, 2022 $ (8,322) $ 3,496 $ (4,826) Other comprehensive income, net of tax Amounts reclassified from accumulated other comprehensive loss, net of tax of $(159), $(25) and $(184), respectively 527 82 (1) 609 Balance at March 31, 2023 $ (7,795) $ 3,578 $ (4,217) Balance at September 30, 2021 $ (9,376) $ (25,152) $ (34,528) Other comprehensive income, net of tax Amounts reclassified from accumulated other comprehensive loss, net of tax of $(159), $(465) and $(624), respectively 527 1,534 (1) 2,061 Balance at March 31, 2022 $ (8,849) $ (23,618) $ (32,467) (1) Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations. |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
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 natural 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 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. 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. Clean Energy Ventures Renewable energy certificates Certain Clean Energy Ventures projects generate TRECs and SREC IIs under the established administratively determined incentive program. A TREC or SREC II is created for every MWh of electricity produced by a solar generator. The performance obligation of Clean Energy Ventures is to generate electricity. TRECs and SREC IIs under the administratively determined incentive program are purchased monthly by a REC Administrator. Revenue is recognized upon generation. Energy Services 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 in line with the terms of the contract and based on the services provided. Payment is due upon receipt of the invoice. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term. Revenue Recognized Over Time (continued): Segment/ Performance Obligation Description Storage and Transportation Natural gas services The performance obligation of Storage and Transportation is to provide the customer with storage and transportation services. Storage and Transportation generates revenues from firm storage contracts and transportation contracts, injection and withdrawal at the storage facility and the delivery of natural gas to customers. Revenue is recognized over time as customers receive the benefits of its service as it is performed on their behalf using an output method based on actual deliveries. Demand fees are recognized as revenue over the term of the related agreement. 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. NJR Retail enters into warranty contracts with homeowners for various appliances. 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: Energy Services Natural gas services For a permanent release of pipeline capacity, the performance obligation of Energy Services is the release of the pipeline capacity associated with certain natural gas transportation contracts and the transfer of the underlying contractual rights to the counterparty. Revenue is recognized upon the transfer of the underlying contractual rights. Storage and Transportation Natural gas services The performance obligation of Storage and Transportation is to provide the customer with storage and transportation services. Storage and Transportation generates revenues from usage fees and hub services for the use of storage space, injection and withdrawal from the storage facility. Hub services include park and loan transactions and wheeling. Usage fees and hub services revenues are recognized as services are performed. 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 recognized 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 three months ended March 31, 2023 and 2022, are as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total 2023 Natural gas utility sales (1) $ 327,198 — — — — $ 327,198 Natural gas services — — 16,836 20,887 — 37,723 Service contracts — — — — 8,739 8,739 Installations and maintenance — — — — 4,709 4,709 Renewable energy certificates — 2,085 — — — 2,085 Electricity sales — 6,084 — — — 6,084 Eliminations (2) (338) — — (1,584) (183) (2,105) Revenues from contracts with customers 326,860 8,169 16,836 19,303 13,265 384,433 Alternative revenue programs (3) 27,270 — — — — 27,270 Derivative instruments 46,370 6,237 (4) 179,894 — — 232,501 Eliminations (2) — — (177) — — (177) Revenues out of scope 73,640 6,237 179,717 — — 259,594 Total operating revenues $ 400,500 14,406 196,553 19,303 13,265 $ 644,027 2022 Natural gas utility sales (1) $ 381,861 — — — — $ 381,861 Natural gas services — — 17,309 13,342 — 30,651 Service contracts — — — — 8,492 8,492 Installations and maintenance — — — — 4,730 4,730 Renewable energy certificates — 1,019 — — — 1,019 Electricity sales — 6,846 — — — 6,846 Eliminations (2) (338) — — (537) (81) (956) Revenues from contracts with customers 381,523 7,865 17,309 12,805 13,141 432,643 Alternative revenue programs (3) 2,504 — — — — 2,504 Derivative instruments 79,447 3,962 (4) 395,336 — — 478,745 Eliminations (2) — — (1,576) — — (1,576) Revenues out of scope 81,951 3,962 393,760 — — 479,673 Total operating revenues $ 463,474 11,827 411,069 12,805 13,141 $ 912,316 (1) Includes building rent related to the Wall headquarters, which is eliminated in consolidation. (2) Consists of transactions between subsidiaries that are eliminated in consolidation. (3) Includes CIP revenue. (4) Includes SREC revenue. Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the six months ended March 31, 2023 and 2022, are as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total 2023 Natural gas utility sales (1) $ 615,365 — — — — $ 615,365 Natural gas services — — 44,684 47,725 — 92,409 Service contracts — — — — 17,400 17,400 Installations and maintenance — — — — 10,314 10,314 Renewable energy certificates — 3,287 — — — 3,287 Electricity sales — 13,788 — — — 13,788 Eliminations (2) (675) — — (2,708) (196) (3,579) Revenues from contracts with customers 614,690 17,075 44,684 45,017 27,518 748,984 Alternative revenue programs (3) 23,805 — — — — 23,805 Derivative instruments 119,414 10,123 (4) 473,828 — — 603,365 Eliminations (2) — — (8,560) — — (8,560) Revenues out of scope 143,219 10,123 465,268 — — 618,610 Total operating revenues $ 757,909 27,198 509,952 45,017 27,518 $ 1,367,594 2022 Natural gas utility sales (1) $ 605,657 — — — — $ 605,657 Natural gas services — — 45,188 25,485 — 70,673 Service contracts — — — — 16,959 16,959 Installations and maintenance — — — — 10,214 10,214 Renewable energy certificates — 1,865 — — — 1,865 Electricity sales — 13,316 — — — 13,316 Eliminations (2) (675) — — (1,096) (180) (1,951) Revenues from contracts with customers 604,982 15,181 45,188 24,389 26,993 716,733 Alternative revenue programs (3) 13,158 — — — — 13,158 Derivative instruments 119,769 6,829 (4) 736,701 — — 863,299 Eliminations (2) — — (5,032) — — (5,032) Revenues out of scope 132,927 6,829 731,669 — — 871,425 Total operating revenues $ 737,909 22,010 776,857 24,389 26,993 $ 1,588,158 (1) Includes building rent related to the Wall headquarters, which is eliminated in consolidation. (2) Consists of transactions between subsidiaries that are eliminated in consolidation. (3) Includes CIP revenue. (4) Includes SREC revenue. Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended March 31, 2023 and 2022, are as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total 2023 Residential $ 247,623 3,204 — — 13,089 $ 263,916 Commercial and industrial 49,105 4,965 16,836 19,303 176 90,385 Firm transportation 29,368 — — — — 29,368 Interruptible and off-tariff 764 — — — — 764 Revenues out of scope 73,640 6,237 179,717 — — 259,594 Total operating revenues $ 400,500 14,406 196,553 19,303 13,265 $ 644,027 2022 Residential $ 286,205 2,991 — — 13,105 $ 302,301 Commercial and industrial 60,106 4,874 17,309 12,805 36 95,130 Firm transportation 34,636 — — — — 34,636 Interruptible and off-tariff 576 — — — — 576 Revenues out of scope 81,951 3,962 393,760 — — 479,673 Total operating revenues $ 463,474 11,827 411,069 12,805 13,141 $ 912,316 Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the six months ended March 31, 2023 and 2022, are as follows: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total 2023 Residential $ 464,561 6,497 — — 27,269 $ 498,327 Commercial and industrial 92,900 10,578 44,684 45,017 249 193,428 Firm transportation 55,567 — — — — 55,567 Interruptible and off-tariff 1,662 — — — — 1,662 Revenues out of scope 143,219 10,123 465,268 — — 618,610 Total operating revenues $ 757,909 27,198 509,952 45,017 27,518 $ 1,367,594 2022 Residential $ 437,513 5,963 — — 26,880 $ 470,356 Commercial and industrial 107,290 9,218 45,188 24,389 113 186,198 Firm transportation 57,311 — — — — 57,311 Interruptible and off-tariff 2,868 — — — — 2,868 Revenues out of scope 132,927 6,829 731,669 — — 871,425 Total operating revenues $ 737,909 22,010 776,857 24,389 26,993 $ 1,588,158 |
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 Unaudited Condensed Consolidated Balance Sheets during the six months ended March 31, 2023 and 2022, are as follows: Customer Accounts Receivable Customers' Credit (Thousands) Billed Unbilled Balances and Deposits Balance as of September 30, 2022 $ 222,297 $ 13,769 $ 33,246 (Decrease) increase (27,844) 32,271 (7,725) Balance as of March 31, 2023 $ 194,453 $ 46,040 $ 25,521 Balance as of September 30, 2021 $ 212,838 $ 10,351 $ 32,586 Increase (decrease) 60,475 45,919 (12,302) Balance as of March 31, 2022 $ 273,313 $ 56,270 $ 20,284 |
Performance Obligation, in Excess of Billings | The following table provides information about receivables, which are included within accounts receivable, billed and unbilled, and customers’ credit balances and deposits, respectively, on the Unaudited Condensed Consolidated Balance Sheets as of March 31, 2023 and September 30, 2022: (Thousands) Natural Gas Distribution Clean Energy Ventures Energy Services Storage and Transportation Home Services Total March 31, 2023 Customer accounts receivable Billed $ 142,275 5,917 37,280 7,090 1,891 $ 194,453 Unbilled 43,020 3,020 — — — 46,040 Customers' credit balances and deposits (25,516) — — (5) — (25,521) Total $ 159,779 8,937 37,280 7,085 1,891 $ 214,972 September 30, 2022 Customer accounts receivable Billed $ 78,508 5,566 129,199 7,012 2,012 $ 222,297 Unbilled 10,814 2,955 — — — 13,769 Customers' credit balances and deposits (33,246) — — — — (33,246) Total $ 56,076 8,521 129,199 7,012 2,012 $ 202,820 |
REGULATION (Tables)
REGULATION (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Regulated Operations [Abstract] | |
Schedule of Regulator Liabilities | Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for NJNG are comprised of the following: (Thousands) March 31, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 6,191 $ 15,697 Conservation Incentive Program 46,903 23,099 Derivatives at fair value, net 68,241 — Other current regulatory assets 1,254 1,290 Total current regulatory assets $ 122,589 $ 40,086 Regulatory assets-noncurrent Environmental remediation costs: Expended, net of recoveries $ 63,256 $ 66,149 Liability for future expenditures 124,493 127,070 Deferred income taxes 41,213 40,520 SAVEGREEN 57,203 52,690 Postemployment and other benefit costs 55,925 56,021 Deferred storm damage costs 1,086 2,172 Cost of removal 111,601 104,850 Other noncurrent regulatory assets 41,769 45,828 Total noncurrent regulatory assets $ 496,546 $ 495,300 Regulatory liability-current Overrecovered natural gas costs $ 12,785 $ 17,807 Derivatives at fair value, net 77 7,972 Total current regulatory liabilities $ 12,862 $ 25,779 Regulatory liabilities-noncurrent Tax Act impact (1) $ 182,857 $ 185,367 Derivatives at fair value, net 602 116 Other noncurrent regulatory liabilities 482 151 Total noncurrent regulatory liabilities $ 183,941 $ 185,634 (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. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for Adelphia Gateway are comprised of the following: (Thousands) March 31, September 30, Total noncurrent regulatory assets $ 5,283 $ 5,366 Total current regulatory liabilities $ 2,819 $ 5,311 |
Schedule of Regulatory Assets | Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for NJNG are comprised of the following: (Thousands) March 31, September 30, Regulatory assets-current New Jersey Clean Energy Program $ 6,191 $ 15,697 Conservation Incentive Program 46,903 23,099 Derivatives at fair value, net 68,241 — Other current regulatory assets 1,254 1,290 Total current regulatory assets $ 122,589 $ 40,086 Regulatory assets-noncurrent Environmental remediation costs: Expended, net of recoveries $ 63,256 $ 66,149 Liability for future expenditures 124,493 127,070 Deferred income taxes 41,213 40,520 SAVEGREEN 57,203 52,690 Postemployment and other benefit costs 55,925 56,021 Deferred storm damage costs 1,086 2,172 Cost of removal 111,601 104,850 Other noncurrent regulatory assets 41,769 45,828 Total noncurrent regulatory assets $ 496,546 $ 495,300 Regulatory liability-current Overrecovered natural gas costs $ 12,785 $ 17,807 Derivatives at fair value, net 77 7,972 Total current regulatory liabilities $ 12,862 $ 25,779 Regulatory liabilities-noncurrent Tax Act impact (1) $ 182,857 $ 185,367 Derivatives at fair value, net 602 116 Other noncurrent regulatory liabilities 482 151 Total noncurrent regulatory liabilities $ 183,941 $ 185,634 (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. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for Adelphia Gateway are comprised of the following: (Thousands) March 31, September 30, Total noncurrent regulatory assets $ 5,283 $ 5,366 Total current regulatory liabilities $ 2,819 $ 5,311 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Assets and Liabilities | The following table presents the fair value of the Company's derivative assets and liabilities recognized on the Unaudited Condensed Consolidated Balance Sheets as of: Derivatives at Fair Value March 31, 2023 September 30, 2022 (Thousands) Balance Sheet Location Assets Liabilities Assets Liabilities Derivatives not designated as hedging instruments: Natural Gas Distribution: Physical commodity contracts Derivatives - current $ 100 $ 24 $ 252 $ 11 Financial commodity contracts Derivatives - current — — 85 6,281 Energy Services: Physical commodity contracts Derivatives - current 4,262 10,140 9,857 17,051 Derivatives - noncurrent 4 17,368 376 13,561 Financial commodity contracts Derivatives - current 21,296 14,019 14,423 26,488 Derivatives - noncurrent 1,636 — 6,009 630 Foreign currency contracts Derivatives - current — — 18 17 Total fair value of derivatives $ 27,298 $ 41,551 $ 31,020 $ 64,039 |
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 and the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented on Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of March 31, 2023: Derivative assets: Energy Services Physical commodity contracts $ 4,266 $ (1,060) $ (460) $ 2,746 Financial commodity contracts 22,932 (14,019) — 8,913 Total Energy Services $ 27,198 $ (15,079) $ (460) $ 11,659 Natural Gas Distribution Physical commodity contracts $ 100 $ (1) $ — $ 99 Total Natural Gas Distribution $ 100 $ (1) $ — $ 99 Derivative liabilities: Energy Services Physical commodity contracts $ 27,508 $ (1,060) $ — $ 26,448 Financial commodity contracts 14,019 (14,019) — — Total Energy Services $ 41,527 $ (15,079) $ — $ 26,448 Natural Gas Distribution Physical commodity contracts $ 24 $ (1) $ — $ 23 Total Natural Gas Distribution $ 24 $ (1) $ — $ 23 As of September 30, 2022: Derivative assets: Energy Services Physical commodity contracts $ 10,233 $ (404) $ (200) $ 9,629 Financial commodity contracts 20,432 (12,198) — 8,234 Foreign currency contracts 18 (17) — 1 Total Energy Services $ 30,683 $ (12,619) $ (200) $ 17,864 Natural Gas Distribution Physical commodity contracts $ 252 $ — $ — $ 252 Financial commodity contracts 85 (85) — — Total Natural Gas Distribution $ 337 $ (85) $ — $ 252 Derivative liabilities: Energy Services Physical commodity contracts $ 30,612 $ (404) $ — $ 30,208 Financial commodity contracts 27,118 (12,198) — 14,920 Foreign currency contracts 17 (17) — — Total Energy Services $ 57,747 $ (12,619) $ — $ 45,128 Natural Gas Distribution Physical commodity contracts $ 11 $ — $ — $ 11 Financial commodity contracts 6,281 (85) — 6,196 Total Natural Gas Distribution $ 6,292 $ (85) $ — $ 6,207 (1) Derivative assets and liabilities are presented on a gross basis on the condensed consolidated balance sheets 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 and the net amounts the Company could present on the Unaudited Condensed Consolidated Balance Sheets but elects not to. (Thousands) Amounts Presented on Balance Sheets (1) Offsetting Derivative Instruments (2) Financial Collateral Received/Pledged (3) Net Amounts (4) As of March 31, 2023: Derivative assets: Energy Services Physical commodity contracts $ 4,266 $ (1,060) $ (460) $ 2,746 Financial commodity contracts 22,932 (14,019) — 8,913 Total Energy Services $ 27,198 $ (15,079) $ (460) $ 11,659 Natural Gas Distribution Physical commodity contracts $ 100 $ (1) $ — $ 99 Total Natural Gas Distribution $ 100 $ (1) $ — $ 99 Derivative liabilities: Energy Services Physical commodity contracts $ 27,508 $ (1,060) $ — $ 26,448 Financial commodity contracts 14,019 (14,019) — — Total Energy Services $ 41,527 $ (15,079) $ — $ 26,448 Natural Gas Distribution Physical commodity contracts $ 24 $ (1) $ — $ 23 Total Natural Gas Distribution $ 24 $ (1) $ — $ 23 As of September 30, 2022: Derivative assets: Energy Services Physical commodity contracts $ 10,233 $ (404) $ (200) $ 9,629 Financial commodity contracts 20,432 (12,198) — 8,234 Foreign currency contracts 18 (17) — 1 Total Energy Services $ 30,683 $ (12,619) $ (200) $ 17,864 Natural Gas Distribution Physical commodity contracts $ 252 $ — $ — $ 252 Financial commodity contracts 85 (85) — — Total Natural Gas Distribution $ 337 $ (85) $ — $ 252 Derivative liabilities: Energy Services Physical commodity contracts $ 30,612 $ (404) $ — $ 30,208 Financial commodity contracts 27,118 (12,198) — 14,920 Foreign currency contracts 17 (17) — — Total Energy Services $ 57,747 $ (12,619) $ — $ 45,128 Natural Gas Distribution Physical commodity contracts $ 11 $ — $ — $ 11 Financial commodity contracts 6,281 (85) — 6,196 Total Natural Gas Distribution $ 6,292 $ (85) $ — $ 6,207 (1) Derivative assets and liabilities are presented on a gross basis on the condensed consolidated balance sheets as the Company does not elect balance sheet offsetting under ASC 210-20. (2) Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting. (3) Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties. (4) Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20. |
Effect of Derivative Instruments on Consolidated Statements of Operations | The following table presents the effect of derivative instruments recognized on the Unaudited Condensed Consolidated Statements of Operations for the periods set forth below: (Thousands) Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized Three Months Ended Six Months Ended March 31, March 31, Derivatives not designated as hedging instruments: 2023 2022 2023 2022 Energy Services: Physical commodity contracts Operating revenues $ 7,208 $ (11,582) $ 17,246 $ (11,432) Physical commodity contracts Natural gas purchases (124) (875) (794) 630 Financial commodity contracts Natural gas purchases 29,863 (31,223) 71,474 29,966 Foreign currency contracts Natural gas purchases — (14) — (14) Total unrealized and realized loss (gain) $ 36,947 $ (43,694) $ 87,926 $ 19,150 |
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI | The following table reflects the gains (losses) associated with NJNG's derivative instruments for the periods set forth below: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2023 2022 2023 2022 Natural Gas Distribution: Physical commodity contracts $ (203) $ 4,538 $ (28,234) $ 6,234 Financial commodity contracts (38,294) 61,485 (69,957) 46,838 Total unrealized and realized (gain) loss $ (38,497) $ 66,023 $ (98,191) $ 53,072 |
Schedule of Outstanding Long (Short) Derivatives | NJNG and Energy Services had the following outstanding long (short) derivatives as of: Volume (Bcf) Transaction Type March 31, September 30, Natural Gas Distribution Futures 32.2 30.5 Physical Commodity 8.8 6.8 Energy Services Futures (5.6) (0.7) Physical Commodity (0.2) 2.7 |
Schedule of Broker Margin Accounts by Company | The balances by reporting segment are as follows: (Thousands) Balance Sheet Location March 31, September 30, Natural Gas Distribution Restricted broker margin accounts-current assets $ 12,866 $ 26,138 Energy Services Restricted broker margin accounts-current assets $ 38,703 $ 68,123 Restricted broker margin accounts-current liabilities $ 1,245 $ — |
Summary of Gross Credit Exposures | The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of March 31, 2023. 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 $ 126,575 Noninvestment grade 13,009 Internally rated investment grade 15,514 Internally rated noninvestment grade 26,407 Total $ 181,505 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The estimated fair value of long-term debt, including current maturities, excluding natural gas meter finance arrangements, debt issuance costs and solar asset financing obligations, is as follows: (Thousands) March 31, September 30, Carrying value (1) (2) (3) $ 2,537,845 $ 2,362,845 Fair market value $ 2,227,816 $ 1,946,356 (1) Excludes the sale leasebacks of natural gas meters of $35.2 million and $30.3 million as of March 31, 2023 and September 30, 2022, respectively. The fair value of certain sale leasebacks of natural gas meters amounted to $23.4 million and $15.7 million as of March 31, 2023 and September 30, 2022, respectively. (2) Excludes NJNG's debt issuance costs of $9.8 million and $9.5 million as of March 31, 2023 and September 30, 2022, respectively. (3) Excludes NJR's debt issuance costs of $4.0 million and $3.8 million as of March 31, 2023 and September 30, 2022, respectively. |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Thousands) (Level 1) (Level 2) (Level 3) Total As of March 31, 2023: Assets: Physical commodity contracts $ — $ 4,366 $ — $ 4,366 Financial commodity contracts 22,932 — — 22,932 Money market funds 25,099 — — 25,099 Other 2,677 — — 2,677 Total assets at fair value $ 50,708 $ 4,366 $ — $ 55,074 Liabilities: Physical commodity contracts $ — $ 27,532 $ — $ 27,532 Financial commodity contracts 14,019 — — 14,019 Total liabilities at fair value $ 14,019 $ 27,532 $ — $ 41,551 As of September 30, 2022: Assets: Physical commodity contracts $ — $ 10,485 $ — $ 10,485 Financial commodity contracts 20,517 — — 20,517 Financial commodity contracts - foreign exchange — 18 — 18 Money market funds 59 — — 59 Other 1,884 — — 1,884 Total assets at fair value $ 22,460 $ 10,503 $ — $ 32,963 Liabilities: Physical commodity contracts $ — $ 30,623 $ — $ 30,623 Financial commodity contracts 33,231 168 — 33,399 Financial commodity contracts - foreign exchange — 17 — 17 Total liabilities at fair value $ 33,231 $ 30,808 $ — $ 64,039 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | The following table presents the calculation of the Company's basic and diluted earnings per share for: Three Months Ended Six Months Ended March 31, March 31, (Thousands, except per share amounts) 2023 2022 2023 2022 Net income, as reported $ 110,247 $ 96,035 $ 226,168 $ 207,347 Basic earnings per share Weighted average shares of common stock outstanding-basic 96,893 96,068 96,689 96,006 Basic earnings per common share $1.14 $1.00 $2.34 $2.16 Diluted earnings per share Weighted average shares of common stock outstanding-basic 96,893 96,068 96,689 96,006 Incremental shares (1) 663 448 657 474 Weighted average shares of common stock outstanding-diluted 97,556 96,516 97,346 96,480 Diluted earnings per common share $1.13 $1.00 $2.32 $2.15 (1) Incremental shares consist primarily of unvested stock awards and performance shares. |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | A summary of NJR's credit facility and term loan credit agreement and NJNG's commercial paper program and credit facility are as follows: (Thousands) March 31, September 30, Expiration Dates NJR Bank revolving credit facility (1) $ 650,000 $ 650,000 September 2027 Notes outstanding at end of period $ 187,650 $ 200,150 Weighted average interest rate at end of period 5.96 % 3.97 % Amount available at end of period (2) $ 457,177 $ 440,177 Bank term loan credit agreement $ — $ 150,000 February 2023 Loans outstanding at end of period $ — $ 150,000 Weighted average interest rate at end of period — % 3.81 % Amount available at end of period $ — $ — NJNG Bank revolving credit facility (3) $ 250,000 $ 250,000 September 2027 Commercial paper and notes outstanding at end of period $ — $ 73,800 Weighted average interest rate at end of period — % 3.34 % Amount available at end of period (4) $ 249,269 $ 175,469 (1) Committed credit facilities, which require commitment fees of 0.10 percent on the unused amounts. (2) Letters of credit outstanding total $5.2 million at March 31, 2023 and $9.7 million at September 30, 2022, which reduces the amount available by the same amount. (3) Committed credit facilities, which require commitment fees of 0.075 percent on the unused amounts. (4) Letters of credit outstanding total $731,000 at both March 31, 2023 and September 30, 2022, which reduces the amount available by the same amount. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Cost | The components of the net periodic cost for pension benefits, including the Company's Pension Equalization Plan, and OPEB costs (principally health care and life insurance) for employees and covered dependents were as follows: Pension OPEB Three Months Ended Six Months Ended Three Months Ended Six Months Ended March 31, March 31, March 31, March 31, (Thousands) 2023 2022 2023 2022 2023 2022 2023 2022 Service cost $ 1,351 $ 2,073 $ 2,701 $ 4,146 $ 618 $ 1,076 $ 1,236 $ 2,152 Interest cost 3,793 2,408 7,587 4,816 2,287 1,589 4,573 3,178 Expected return on plan assets (4,993) (5,318) (9,986) (10,637) (1,681) (1,894) (3,361) (3,788) Recognized actuarial loss 75 2,186 150 4,372 — 1,421 — 2,842 Prior service cost (credit) amortization 26 26 51 51 — (36) — (72) Net periodic benefit cost $ 252 $ 1,375 $ 503 $ 2,748 $ 1,224 $ 2,156 $ 2,448 $ 4,312 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Lease, Cost | The following table presents the Company's lease costs included in the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended Six Months Ended March 31, March 31, (Thousands) Income Statement Location 2023 2022 2023 2022 Operating lease cost (1) Operation and maintenance $ 2,307 $ 2,915 $ 4,724 $ 5,034 Finance lease cost (2) Amortization of right-of-use assets Depreciation and amortization 540 457 1,025 $ 853 Interest on lease liabilities Interest expense, net of capitalized interest 298 104 533 $ 184 Total finance lease cost 838 561 1,558 $ 1,037 Short-term lease cost Operation and maintenance — 12 — $ 23 Variable lease cost Operation and maintenance 272 172 495 $ 363 Total lease cost $ 3,417 $ 3,660 $ 6,777 $ 6,457 (1) Net of capitalized costs. (2) Includes immaterial costs associated with the sale leaseback of natural gas meters, certain of which are considered financing transactions for accounting purposes. The following table presents supplemental cash flow information related to leases: Six Months Ended March 31, (Thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 3,652 $ 3,557 Operating cash flows for finance leases (1) $ 533 $ 404 Financing cash flows for finance leases (1) $ 3,577 $ 3,947 (1) Includes immaterial activity associated with the sale leaseback of natural gas meters, certain of which are considered financing transactions for accounting purposes. |
Assets and Liabilities, Lessee | The following table presents the balance and classifications of the Company's right of use assets and lease liabilities included in the Unaudited Condensed Consolidated Balance Sheets: (Thousands) Balance Sheet Location March 31, September 30, Assets Noncurrent Operating lease assets Operating lease assets $ 165,783 $ 168,520 Finance lease assets (1) Utility plant 29,328 21,913 Total lease assets (1) $ 195,111 $ 190,433 Liabilities Current Operating lease liabilities Operating lease liabilities $ 5,308 $ 4,562 Finance lease liabilities (1) Current maturities of long-term debt 8,773 6,538 Noncurrent Operating lease liabilities Operating lease liabilities 136,789 138,382 Finance lease liabilities (1) Long-term debt 26,380 23,752 Total lease liabilities (1) $ 177,250 $ 173,234 (1) Includes immaterial amounts associated with the sale leaseback of natural gas meters, certain of which are considered financing transactions for accounting purposes. |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | Commitments as of March 31, 2023, for natural gas purchases and future demand fees for the next five fiscal year periods are as follows: (Thousands) 2023 2024 2025 2026 2027 Thereafter Energy Services: Natural gas purchases $ 24,692 $ 13,502 $ 1,721 $ — $ — $ — Storage demand fees 10,825 16,688 7,838 4,654 2,166 794 Pipeline demand fees 30,339 50,638 44,948 33,952 26,353 34,710 Sub-total Energy Services $ 65,856 $ 80,828 $ 54,507 $ 38,606 $ 28,519 $ 35,504 NJNG: Natural gas purchases $ 14,833 $ 539 $ — $ — $ — $ — Storage demand fees 22,472 42,049 30,048 14,353 9,541 4,772 Pipeline demand fees 69,512 139,933 151,969 130,447 124,211 1,058,159 Sub-total NJNG $ 106,817 $ 182,521 $ 182,017 $ 144,800 $ 133,752 $ 1,062,931 Total $ 172,673 $ 263,349 $ 236,524 $ 183,406 $ 162,271 $ 1,098,435 |
REPORTING SEGMENT AND OTHER O_2
REPORTING SEGMENT AND OTHER OPERATIONS DATA (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information related to the Company's various reporting segments and other operations is detailed below: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2023 2022 2023 2022 Operating revenues Natural Gas Distribution External customers $ 400,500 $ 463,474 $ 757,909 $ 737,909 Intercompany 338 338 675 675 Clean Energy Ventures External customers 14,406 11,827 27,198 22,010 Energy Services External customers (1) 196,553 411,069 509,952 776,857 Intercompany 177 1,576 8,560 5,032 Storage and Transportation External customers 19,303 12,805 45,017 24,389 Intercompany 1,584 537 2,708 1,096 Subtotal 632,861 901,626 1,352,019 1,567,968 Home Services and Other External customers 13,265 13,141 27,518 26,993 Intercompany 183 81 196 180 Eliminations (2,282) (2,532) (12,139) (6,983) Total $ 644,027 $ 912,316 $ 1,367,594 $ 1,588,158 Depreciation and amortization Natural Gas Distribution $ 25,319 $ 23,344 $ 50,209 $ 46,237 Clean Energy Ventures 6,465 5,311 12,041 10,544 Energy Services (2) 62 32 119 60 Storage and Transportation 6,020 2,571 11,962 4,704 Subtotal 37,866 31,258 74,331 61,545 Home Services and Other 224 203 442 407 Eliminations — (26) — (124) Total $ 38,090 $ 31,435 $ 74,773 $ 61,828 Interest income (3) Natural Gas Distribution $ 376 $ 191 $ 789 $ 384 Energy Services 380 — 649 — Storage and Transportation 1,684 381 3,085 758 Subtotal 2,440 572 4,523 1,142 Home Services and Other 734 147 1,388 302 Eliminations (938) (231) (1,716) (455) Total $ 2,236 $ 488 $ 4,195 $ 989 (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 natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations. (3) Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations. Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2023 2022 2023 2022 Interest expense, net of capitalized interest Natural Gas Distribution $ 13,879 $ 10,764 $ 27,588 $ 21,759 Clean Energy Ventures 7,316 5,395 13,211 10,822 Energy Services 2,749 795 5,807 1,470 Storage and Transportation 6,128 1,847 12,835 3,983 Subtotal 30,072 18,801 59,441 38,034 Home Services and Other 189 125 311 369 Total $ 30,261 $ 18,926 $ 59,752 $ 38,403 Income tax provision (benefit) Natural Gas Distribution $ 23,924 $ 29,689 $ 38,307 $ 42,893 Clean Energy Ventures (3,005) (1,952) (4,842) (3,998) Energy Services 5,916 (790) 25,980 19,715 Storage and Transportation 596 714 2,539 1,057 Subtotal 27,431 27,661 61,984 59,667 Home Services and Other 488 256 705 502 Eliminations 2,667 893 875 (552) Total $ 30,586 $ 28,810 $ 63,564 $ 59,617 Equity in earnings of affiliates Storage and Transportation $ 977 $ 1,256 $ 1,886 $ 2,312 Eliminations 154 (487) 191 (968) Total $ 1,131 $ 769 $ 2,077 $ 1,344 Net financial earnings (loss) Natural Gas Distribution $ 100,697 $ 102,783 $ 155,361 $ 153,863 Clean Energy Ventures (9,379) (6,491) (12,961) (13,312) Energy Services 21,125 29,940 73,658 47,507 Storage and Transportation 2,450 4,625 8,693 7,587 Subtotal 114,893 130,857 224,751 195,645 Home Services and Other 813 451 784 898 Eliminations (3,396) (1,102) (2,941) (567) Total $ 112,310 $ 130,206 $ 222,594 $ 195,976 Capital expenditures Natural Gas Distribution $ 92,600 $ 52,000 $ 174,671 $ 125,464 Clean Energy Ventures 13,706 41,176 57,699 66,556 Storage and Transportation 10,122 43,673 29,841 109,048 Subtotal 116,428 136,849 262,211 301,068 Home Services and Other 760 163 900 242 Total $ 117,188 $ 137,012 $ 263,111 $ 301,310 Return of capital from equity investees Storage and Transportation $ — $ (4,000) $ — $ (4,000) Total $ — $ (4,000) $ — $ (4,000) |
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) March 31, September 30, Assets at end of period: Natural Gas Distribution $ 4,194,970 $ 4,030,686 Clean Energy Ventures 1,056,744 1,015,065 Energy Services 167,876 333,064 Storage and Transportation 1,007,694 999,520 Subtotal 6,427,284 6,378,335 Home Services and Other 153,914 159,068 Intercompany assets (1) (285,065) (275,987) Total $ 6,296,133 $ 6,261,416 (1) Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation. |
Reconciliation of Consolidated NFE to Consolidated Net Income | A reconciliation of consolidated NFE to consolidated net income is as follows: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2023 2022 2023 2022 Net financial earnings $ 112,310 $ 130,206 $ 222,594 $ 195,976 Less: Unrealized loss (gain) on derivative instruments and related transactions 13,971 42,022 (17,532) (40,169) Tax effect (3,320) (9,980) 4,167 9,556 Effects of economic hedging related to natural gas inventory (11,203) 1,155 12,769 24,732 Tax effect 2,662 (274) (3,035) (5,877) Gain on equity method investment (200) — (200) — Tax effect 50 — 50 — NFE tax adjustment 103 1,248 207 387 Net income $ 110,247 $ 96,035 $ 226,168 $ 207,347 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Demand Fees and Demand Fees Payable | Demand fees, net of eliminations, associated with Steckman Ridge were as follows: Three Months Ended Six Months Ended March 31, March 31, (Thousands) 2023 2022 2023 2022 Natural Gas Distribution $ 1,615 $ 1,546 $ 3,270 $ 3,104 Energy Services 155 337 327 625 Total $ 1,770 $ 1,883 $ 3,597 $ 3,729 The following table summarizes demand fees payable to Steckman Ridge as of: (Thousands) March 31, September 30, Natural Gas Distribution $ 775 $ 775 Energy Services 81 76 Total $ 856 $ 851 |
NATURE OF THE BUSINESS (Details
NATURE OF THE BUSINESS (Details) | 6 Months Ended |
Mar. 31, 2023 customer subsidiary | |
Steckman Ridge | |
Nature of Business [Line Items] | |
Ownership percentage | 50% |
PennEast | |
Nature of Business [Line Items] | |
Ownership percentage | 20% |
NJNG | |
Nature of Business [Line Items] | |
Total retail customers | customer | 574,500 |
NJR Retail Holdings Corporation | |
Nature of Business [Line Items] | |
Number of principal subsidiaries | subsidiary | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2021 Megawatt | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of megawatts | Megawatt | 5 | |||||
Operating revenues | $ 644,027 | $ 912,316 | $ 1,367,594 | $ 1,588,158 | ||
Loans receivable in other noncurrent assets | 35,700 | 35,700 | $ 34,700 | |||
Financial Asset, Not Past Due | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Loans receivable in other current assets | 14,900 | $ 14,900 | 14,500 | |||
Minimum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Loans receivable, term | 2 years | |||||
Maximum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Loans receivable, term | 10 years | |||||
Energy Services | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Operating revenues | 9,500 | $ 10,300 | $ 29,500 | $ 32,400 | ||
Deferred revenue | $ 77,700 | $ 77,700 | $ 33,800 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 27,095 | $ 1,107 | $ 13,906 | |
Restricted cash in other noncurrent assets | 461 | 345 | 1,294 | |
Cash, cash equivalents and restricted cash | $ 27,556 | $ 1,452 | $ 15,200 | $ 6,043 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NATURAL GAS IN STORAGE (Details) $ in Thousands | Mar. 31, 2023 USD ($) Bcf | Sep. 30, 2022 USD ($) Bcf |
Inventory [Line Items] | ||
Natural Gas in Storage, value | $ | $ 84,916 | $ 273,644 |
Natural Gas in Storage, Bcf | Bcf | 18,300,000 | 39,800,000 |
Natural Gas Distribution | ||
Inventory [Line Items] | ||
Natural Gas in Storage, value | $ | $ 44,308 | $ 191,175 |
Natural Gas in Storage, Bcf | Bcf | 6,300,000 | 29,000,000 |
Energy Services | ||
Inventory [Line Items] | ||
Natural Gas in Storage, value | $ | $ 40,608 | $ 82,469 |
Natural Gas in Storage, Bcf | Bcf | 12,000,000 | 10,800,000 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SOFTWARE COSTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Capitalized software costs | $ 6,980 | $ 6,980 | $ 6,120 | ||
Software amortization | 148 | $ 113 | 261 | $ 225 | |
Operation and maintenance | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Software costs | 3,886 | 2,828 | 7,638 | 5,351 | |
Depreciation and amortization | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Software costs | 957 | $ 303 | 1,828 | $ 602 | |
Utility plant, at cost | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Software costs | 48,950 | 48,950 | 40,437 | ||
Construction work in progress | Regulated | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Software costs | 29,404 | 29,404 | 14,381 | ||
Nonutility plant and equipment, at cost | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Software costs | 344 | 344 | 344 | ||
Accumulated depreciation and amortization, utility plant | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Accumulated depreciation and amortization | (5,184) | (5,184) | (3,361) | ||
Accumulated depreciation and amortization, nonutility plant and equipment | |||||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | |||||
Accumulated depreciation and amortization | $ (30) | $ (30) | $ (25) |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance as of beginning of period | $ 1,922,795 | $ 1,716,978 | $ 1,817,210 | $ 1,630,862 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 305 | 1,031 | 609 | 2,061 |
Balance as of end of period | 2,000,836 | 1,784,287 | 2,000,836 | 1,784,287 |
Tax on amounts reclassified from accumulated other comprehensive income | (93) | (312) | (184) | (624) |
Cash Flow Hedges | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance as of beginning of period | (8,059) | (9,112) | (8,322) | (9,376) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 264 | 263 | 527 | 527 |
Balance as of end of period | (7,795) | (8,849) | (7,795) | (8,849) |
Tax on amounts reclassified from accumulated other comprehensive income | (80) | (80) | (159) | (159) |
Postemployment Benefit Obligation | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance as of beginning of period | 3,537 | (24,386) | 3,496 | (25,152) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 41 | 768 | 82 | 1,534 |
Balance as of end of period | 3,578 | (23,618) | 3,578 | (23,618) |
Tax on amounts reclassified from accumulated other comprehensive income | (13) | (232) | (25) | (465) |
Total | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance as of beginning of period | (4,522) | (33,498) | (4,826) | (34,528) |
Balance as of end of period | $ (4,217) | $ (32,467) | $ (4,217) | $ (32,467) |
REVENUE - DISAGGREGATED REVENUE
REVENUE - DISAGGREGATED REVENUE - PRODUCT (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 384,433 | $ 432,643 | $ 748,984 | $ 716,733 |
Alternative revenue programs | 27,270 | 2,504 | 23,805 | 13,158 |
Derivative instruments | 232,501 | 478,745 | 603,365 | 863,299 |
Revenues out of scope | 259,594 | 479,673 | 618,610 | 871,425 |
Total operating revenues | 644,027 | 912,316 | 1,367,594 | 1,588,158 |
Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 327,198 | 381,861 | 615,365 | 605,657 |
Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 37,723 | 30,651 | 92,409 | 70,673 |
Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8,739 | 8,492 | 17,400 | 16,959 |
Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,709 | 4,730 | 10,314 | 10,214 |
Renewable energy certificates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,085 | 1,019 | 3,287 | 1,865 |
Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 6,084 | 6,846 | 13,788 | 13,316 |
Energy Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 9,500 | 10,300 | 29,500 | 32,400 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 632,861 | 901,626 | 1,352,019 | 1,567,968 |
Operating Segments | Natural Gas Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 326,860 | 381,523 | 614,690 | 604,982 |
Alternative revenue programs | 27,270 | 2,504 | 23,805 | 13,158 |
Derivative instruments | 46,370 | 79,447 | 119,414 | 119,769 |
Revenues out of scope | 73,640 | 81,951 | 143,219 | 132,927 |
Total operating revenues | 400,500 | 463,474 | 757,909 | 737,909 |
Operating Segments | Natural Gas Distribution | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 327,198 | 381,861 | 615,365 | 605,657 |
Operating Segments | Natural Gas Distribution | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Natural Gas Distribution | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Natural Gas Distribution | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Natural Gas Distribution | Renewable energy certificates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Natural Gas Distribution | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8,169 | 7,865 | 17,075 | 15,181 |
Alternative revenue programs | 0 | 0 | 0 | 0 |
Derivative instruments | 6,237 | 3,962 | 10,123 | 6,829 |
Revenues out of scope | 6,237 | 3,962 | 10,123 | 6,829 |
Total operating revenues | 14,406 | 11,827 | 27,198 | 22,010 |
Operating Segments | Clean Energy Ventures | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Clean Energy Ventures | Renewable energy certificates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,085 | 1,019 | 3,287 | 1,865 |
Operating Segments | Clean Energy Ventures | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 6,084 | 6,846 | 13,788 | 13,316 |
Operating Segments | Energy Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 16,836 | 17,309 | 44,684 | 45,188 |
Alternative revenue programs | 0 | 0 | 0 | 0 |
Derivative instruments | 179,894 | 395,336 | 473,828 | 736,701 |
Revenues out of scope | 179,717 | 393,760 | 465,268 | 731,669 |
Total operating revenues | 196,553 | 411,069 | 509,952 | 776,857 |
Operating Segments | Energy Services | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Energy Services | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 16,836 | 17,309 | 44,684 | 45,188 |
Operating Segments | Energy Services | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Energy Services | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Energy Services | Renewable energy certificates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Energy Services | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Storage and Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 19,303 | 12,805 | 45,017 | 24,389 |
Alternative revenue programs | 0 | 0 | 0 | 0 |
Derivative instruments | 0 | 0 | 0 | 0 |
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 19,303 | 12,805 | 45,017 | 24,389 |
Operating Segments | Storage and Transportation | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Storage and Transportation | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 20,887 | 13,342 | 47,725 | 25,485 |
Operating Segments | Storage and Transportation | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Storage and Transportation | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Storage and Transportation | Renewable energy certificates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Storage and Transportation | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Home Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 13,265 | 13,141 | 27,518 | 26,993 |
Home Services and Other | Home Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 13,265 | 13,141 | 27,518 | 26,993 |
Alternative revenue programs | 0 | 0 | 0 | 0 |
Derivative instruments | 0 | 0 | 0 | 0 |
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 13,265 | 13,141 | 27,518 | 26,993 |
Home Services and Other | Home Services and Other | Natural gas utility sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Home Services and Other | Home Services and Other | Natural gas services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Home Services and Other | Home Services and Other | Service contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8,739 | 8,492 | 17,400 | 16,959 |
Home Services and Other | Home Services and Other | Installations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,709 | 4,730 | 10,314 | 10,214 |
Home Services and Other | Home Services and Other | Renewable energy certificates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Home Services and Other | Home Services and Other | Electricity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (2,105) | (956) | (3,579) | (1,951) |
Revenues out of scope | (177) | (1,576) | (8,560) | (5,032) |
Eliminations | Natural Gas Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (338) | (338) | (675) | (675) |
Revenues out of scope | 0 | 0 | 0 | 0 |
Eliminations | Clean Energy Ventures | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Revenues out of scope | 0 | 0 | 0 | 0 |
Eliminations | Energy Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Revenues out of scope | (177) | (1,576) | (8,560) | (5,032) |
Eliminations | Storage and Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (1,584) | (537) | (2,708) | (1,096) |
Revenues out of scope | 0 | 0 | 0 | 0 |
Eliminations | Home Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (183) | (81) | (196) | (180) |
Revenues out of scope | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE - DISAGGREGATED REVEN_2
REVENUE - DISAGGREGATED REVENUE - TYPE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 384,433 | $ 432,643 | $ 748,984 | $ 716,733 |
Revenues out of scope | 259,594 | 479,673 | 618,610 | 871,425 |
Total operating revenues | 644,027 | 912,316 | 1,367,594 | 1,588,158 |
Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 263,916 | 302,301 | 498,327 | 470,356 |
Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 90,385 | 95,130 | 193,428 | 186,198 |
Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 29,368 | 34,636 | 55,567 | 57,311 |
Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 764 | 576 | 1,662 | 2,868 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 632,861 | 901,626 | 1,352,019 | 1,567,968 |
Home Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 13,265 | 13,141 | 27,518 | 26,993 |
Home Services and Other | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 13,089 | 13,105 | 27,269 | 26,880 |
Home Services and Other | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 176 | 36 | 249 | 113 |
Home Services and Other | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Home Services and Other | Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Natural Gas Distribution | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 326,860 | 381,523 | 614,690 | 604,982 |
Revenues out of scope | 73,640 | 81,951 | 143,219 | 132,927 |
Total operating revenues | 400,500 | 463,474 | 757,909 | 737,909 |
Natural Gas Distribution | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 247,623 | 286,205 | 464,561 | 437,513 |
Natural Gas Distribution | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 49,105 | 60,106 | 92,900 | 107,290 |
Natural Gas Distribution | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 29,368 | 34,636 | 55,567 | 57,311 |
Natural Gas Distribution | Operating Segments | Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 764 | 576 | 1,662 | 2,868 |
Clean Energy Ventures | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8,169 | 7,865 | 17,075 | 15,181 |
Revenues out of scope | 6,237 | 3,962 | 10,123 | 6,829 |
Total operating revenues | 14,406 | 11,827 | 27,198 | 22,010 |
Clean Energy Ventures | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,204 | 2,991 | 6,497 | 5,963 |
Clean Energy Ventures | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,965 | 4,874 | 10,578 | 9,218 |
Clean Energy Ventures | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Clean Energy Ventures | Operating Segments | Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Energy Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 9,500 | 10,300 | 29,500 | 32,400 |
Energy Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 16,836 | 17,309 | 44,684 | 45,188 |
Revenues out of scope | 179,717 | 393,760 | 465,268 | 731,669 |
Total operating revenues | 196,553 | 411,069 | 509,952 | 776,857 |
Energy Services | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Energy Services | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 16,836 | 17,309 | 44,684 | 45,188 |
Energy Services | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Energy Services | Operating Segments | Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Storage and Transportation | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 19,303 | 12,805 | 45,017 | 24,389 |
Revenues out of scope | 0 | 0 | 0 | 0 |
Total operating revenues | 19,303 | 12,805 | 45,017 | 24,389 |
Storage and Transportation | Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Storage and Transportation | Operating Segments | Commercial and industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 19,303 | 12,805 | 45,017 | 24,389 |
Storage and Transportation | Operating Segments | Firm transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Storage and Transportation | Operating Segments | Interruptible and off-tariff | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE - TIMING OF REVENUE REC
REVENUE - TIMING OF REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Timing of Revenue Recognition [Roll Forward] | ||
Billed, beginning | $ 222,297 | |
Customers' credit, beginning | 33,246 | $ 32,586 |
Increase (decrease) for customers' credits | (7,725) | (12,302) |
Billed, end | 194,453 | |
Customers' credit, end | 25,521 | 20,284 |
Billed | ||
Timing of Revenue Recognition [Roll Forward] | ||
Billed, beginning | 222,297 | 212,838 |
Increase (decrease) for customer accounts receivable | (27,844) | 60,475 |
Billed, end | 194,453 | 273,313 |
Unbilled | ||
Timing of Revenue Recognition [Roll Forward] | ||
Billed, beginning | 13,769 | 10,351 |
Increase (decrease) for customer accounts receivable | 32,271 | 45,919 |
Billed, end | $ 46,040 | $ 56,270 |
REVENUE - TIMING OF REVENUE R_2
REVENUE - TIMING OF REVENUE RECOGNITION - BALANCE SHEET (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 |
Disaggregation of Revenue [Line Items] | ||||
Billed | $ 194,453 | $ 222,297 | ||
Customers' credit balances and deposits | (25,521) | (33,246) | $ (20,284) | $ (32,586) |
Customers accounts receivables & Customers' credit balances and deposits | 214,972 | 202,820 | ||
Billed | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 194,453 | 222,297 | 273,313 | 212,838 |
Unbilled | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 46,040 | 13,769 | $ 56,270 | $ 10,351 |
Operating Segments | Natural Gas Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Customers' credit balances and deposits | (25,516) | (33,246) | ||
Customers accounts receivables & Customers' credit balances and deposits | 159,779 | 56,076 | ||
Operating Segments | Natural Gas Distribution | Billed | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 142,275 | 78,508 | ||
Operating Segments | Natural Gas Distribution | Unbilled | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 43,020 | 10,814 | ||
Operating Segments | Clean Energy Ventures | ||||
Disaggregation of Revenue [Line Items] | ||||
Customers' credit balances and deposits | 0 | 0 | ||
Customers accounts receivables & Customers' credit balances and deposits | 8,937 | 8,521 | ||
Operating Segments | Clean Energy Ventures | Billed | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 5,917 | 5,566 | ||
Operating Segments | Clean Energy Ventures | Unbilled | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 3,020 | 2,955 | ||
Operating Segments | Energy Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Customers' credit balances and deposits | 0 | 0 | ||
Customers accounts receivables & Customers' credit balances and deposits | 37,280 | 129,199 | ||
Operating Segments | Energy Services | Billed | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 37,280 | 129,199 | ||
Operating Segments | Energy Services | Unbilled | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 0 | 0 | ||
Operating Segments | Storage and Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Customers' credit balances and deposits | (5) | 0 | ||
Customers accounts receivables & Customers' credit balances and deposits | 7,085 | 7,012 | ||
Operating Segments | Storage and Transportation | Billed | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 7,090 | 7,012 | ||
Operating Segments | Storage and Transportation | Unbilled | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 0 | 0 | ||
Home Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Customers' credit balances and deposits | 0 | 0 | ||
Customers accounts receivables & Customers' credit balances and deposits | 1,891 | 2,012 | ||
Home Services and Other | Billed | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | 1,891 | 2,012 | ||
Home Services and Other | Unbilled | ||||
Disaggregation of Revenue [Line Items] | ||||
Billed | $ 0 | $ 0 |
REGULATION - ADDITIONAL INFORMA
REGULATION - ADDITIONAL INFORMATION (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Apr. 12, 2023 | Mar. 30, 2023 | Feb. 22, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | |
Schedule of Regulatory Filings [Line Items] | |||||
Regulatory assets | $ 501,829 | $ 500,666 | |||
NJNG | |||||
Schedule of Regulatory Filings [Line Items] | |||||
Regulatory assets | $ 3,900 | $ 6,900 | |||
Interim rate increase (decrease), amount | $ (32,500) | ||||
Approved rate increase (decrease), amount | $ 31,400 | ||||
Base Rate Stipulation | |||||
Schedule of Regulatory Filings [Line Items] | |||||
Weighted average cost of capital | 6.84% | ||||
Approved return on equity | 9.60% | ||||
BGSS | NJNG | Subsequent Event | |||||
Schedule of Regulatory Filings [Line Items] | |||||
Requested rate increase (decrease), amount | $ 81,900 | ||||
BGSS | NJNG | |||||
Schedule of Regulatory Filings [Line Items] | |||||
Interim rate increase (decrease), amount | $ (29,900) | ||||
BPU | NJNG | |||||
Schedule of Regulatory Filings [Line Items] | |||||
Approved rate increase (decrease), amount | $ 3,500 | ||||
BGSS Balancing | NJNG | Subsequent Event | |||||
Schedule of Regulatory Filings [Line Items] | |||||
Requested rate increase (decrease), amount | 9,000 | ||||
Conservation Incentive Program | NJNG | Subsequent Event | |||||
Schedule of Regulatory Filings [Line Items] | |||||
Requested rate increase (decrease), amount | 10,200 | ||||
RAC | Subsequent Event | |||||
Schedule of Regulatory Filings [Line Items] | |||||
Interim rate increase (decrease), amount | 3,700 | ||||
NJCEP | Subsequent Event | |||||
Schedule of Regulatory Filings [Line Items] | |||||
Interim rate increase (decrease), amount | $ (900) |
REGULATION - REGULATORY ASSETS
REGULATION - REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | $ 122,589 | $ 40,086 |
Total current regulatory liabilities | 15,681 | 31,090 |
Regulatory liabilities-noncurrent | 183,941 | 185,634 |
NJNG | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 122,589 | 40,086 |
Regulatory assets-noncurrent | 496,546 | 495,300 |
Total current regulatory liabilities | 12,862 | 25,779 |
Regulatory liabilities-noncurrent | 183,941 | 185,634 |
NJNG | Overrecovered natural gas costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Total current regulatory liabilities | 12,785 | 17,807 |
NJNG | Derivatives at fair value, net | ||
Regulatory Assets And Liabilities [Line Items] | ||
Total current regulatory liabilities | 77 | 7,972 |
Regulatory liabilities-noncurrent | 602 | 116 |
NJNG | Tax Act impact | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 182,857 | 185,367 |
NJNG | Other noncurrent regulatory liabilities | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities-noncurrent | 482 | 151 |
NJNG | New Jersey Clean Energy Program | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 6,191 | 15,697 |
NJNG | Conservation Incentive Program | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 46,903 | 23,099 |
NJNG | Derivatives at fair value, net | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 68,241 | 0 |
NJNG | Other current regulatory assets | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-current | 1,254 | 1,290 |
Regulatory assets-noncurrent | 41,769 | 45,828 |
NJNG | Expended, net of recoveries | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 63,256 | 66,149 |
NJNG | Liability for future expenditures | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 124,493 | 127,070 |
NJNG | Deferred income taxes | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 41,213 | 40,520 |
NJNG | SAVEGREEN | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 57,203 | 52,690 |
NJNG | Postemployment and other benefit costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 55,925 | 56,021 |
NJNG | Deferred storm damage costs | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 1,086 | 2,172 |
NJNG | Cost of removal | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 111,601 | 104,850 |
Adelphia | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets-noncurrent | 5,283 | 5,366 |
Total current regulatory liabilities | $ 2,819 | $ 5,311 |
DERIVATIVE INSTRUMENTS - BALANC
DERIVATIVE INSTRUMENTS - BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Fair Value | ||
Derivative assets, current | $ 25,658 | $ 24,635 |
Derivative liability, current | 24,183 | 49,848 |
Derivative assets, noncurrent | 1,640 | 6,385 |
Derivative liabilities, noncurrent | 17,368 | 14,191 |
Not Designated as Hedging Instrument | ||
Fair Value | ||
Derivative assets | 27,298 | 31,020 |
Derivative liabilities | 41,551 | 64,039 |
Natural Gas Distribution | Not Designated as Hedging Instrument | Physical commodity contracts | ||
Fair Value | ||
Derivative assets, current | 100 | 252 |
Derivative liability, current | 24 | 11 |
Natural Gas Distribution | Not Designated as Hedging Instrument | Financial commodity contracts | ||
Fair Value | ||
Derivative assets, current | 0 | 85 |
Derivative liability, current | 0 | 6,281 |
Energy Services | Not Designated as Hedging Instrument | Physical commodity contracts | ||
Fair Value | ||
Derivative assets, current | 4,262 | 9,857 |
Derivative liability, current | 10,140 | 17,051 |
Derivative assets, noncurrent | 4 | 376 |
Derivative liabilities, noncurrent | 17,368 | 13,561 |
Energy Services | Not Designated as Hedging Instrument | Financial commodity contracts | ||
Fair Value | ||
Derivative assets, current | 21,296 | 14,423 |
Derivative liability, current | 14,019 | 26,488 |
Derivative assets, noncurrent | 1,636 | 6,009 |
Derivative liabilities, noncurrent | 0 | 630 |
Energy Services | Not Designated as Hedging Instrument | Foreign currency contracts | ||
Fair Value | ||
Derivative assets, current | 0 | 18 |
Derivative liability, current | $ 0 | $ 17 |
DERIVATIVE INSTRUMENTS - OFFSET
DERIVATIVE INSTRUMENTS - OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Energy Services | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | $ 27,198 | $ 30,683 |
Offsetting Derivative Instruments | (15,079) | (12,619) |
Financial Collateral Received/Pledged | (460) | (200) |
Net Amounts | 11,659 | 17,864 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 41,527 | 57,747 |
Offsetting Derivative Instruments | (15,079) | (12,619) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 26,448 | 45,128 |
Energy Services | Physical commodity contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 4,266 | 10,233 |
Offsetting Derivative Instruments | (1,060) | (404) |
Financial Collateral Received/Pledged | (460) | (200) |
Net Amounts | 2,746 | 9,629 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 27,508 | 30,612 |
Offsetting Derivative Instruments | (1,060) | (404) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 26,448 | 30,208 |
Energy Services | Financial commodity contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 22,932 | 20,432 |
Offsetting Derivative Instruments | (14,019) | (12,198) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 8,913 | 8,234 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 14,019 | 27,118 |
Offsetting Derivative Instruments | (14,019) | (12,198) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 0 | 14,920 |
Energy Services | Foreign currency contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 18 | |
Offsetting Derivative Instruments | (17) | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | 1 | |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 17 | |
Offsetting Derivative Instruments | (17) | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | 0 | |
Natural Gas Distribution | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 100 | 337 |
Offsetting Derivative Instruments | (1) | (85) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 99 | 252 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 24 | 6,292 |
Offsetting Derivative Instruments | (1) | (85) |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 23 | 6,207 |
Natural Gas Distribution | Physical commodity contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 100 | 252 |
Offsetting Derivative Instruments | (1) | 0 |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | 99 | 252 |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 24 | 11 |
Offsetting Derivative Instruments | (1) | 0 |
Financial Collateral Received/Pledged | 0 | 0 |
Net Amounts | $ 23 | 11 |
Natural Gas Distribution | Financial commodity contracts | ||
Derivative assets: | ||
Amounts Presented in Balance Sheets | 85 | |
Offsetting Derivative Instruments | (85) | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | 0 | |
Derivative liabilities: | ||
Amounts Presented in Balance Sheets | 6,281 | |
Offsetting Derivative Instruments | (85) | |
Financial Collateral Received/Pledged | 0 | |
Net Amounts | $ 6,196 |
DERIVATIVE INSTRUMENTS - INCOME
DERIVATIVE INSTRUMENTS - INCOME STATEMENT RELATED DISCLOSURES (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | $ 36,947 | $ (43,694) | $ 87,926 | $ 19,150 |
Energy Services | Physical commodity contracts | Operating revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | $ 7,208 | $ (11,582) | $ 17,246 | $ (11,432) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonutility | Nonutility | Nonutility | Nonutility |
Energy Services | Physical commodity contracts | Natural gas purchases | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | $ (124) | $ (875) | $ (794) | $ 630 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gas purchases - Utility and Nonutility | Gas purchases - Utility and Nonutility | Gas purchases - Utility and Nonutility | Gas purchases - Utility and Nonutility |
Energy Services | Financial commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | $ 29,863 | $ (31,223) | $ 71,474 | $ 29,966 |
Energy Services | Foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | 0 | (14) | 0 | (14) |
Natural Gas Distribution | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | (38,497) | 66,023 | (98,191) | 53,072 |
Natural Gas Distribution | Physical commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | (203) | 4,538 | (28,234) | 6,234 |
Natural Gas Distribution | Financial commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (losses) gains recognized in income on derivatives | $ (38,294) | $ 61,485 | $ (69,957) | $ 46,838 |
DERIVATIVE INSTRUMENTS - ADDITI
DERIVATIVE INSTRUMENTS - ADDITIONAL INFORMATION (Details) $ in Thousands, certificate in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 USD ($) certificate | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) certificate | Mar. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) certificate | |
Derivative [Line Items] | |||||
Derivative, net liability position, aggregate fair value | $ 955 | $ 955 | $ 161 | ||
Treasury Lock | Interest expense | |||||
Derivative [Line Items] | |||||
Amount of pre-tax gain (loss) reclassified from OCI into income | $ (343) | $ (343) | $ (686) | $ (686) | |
Physical commodity contracts | Energy Services | |||||
Derivative [Line Items] | |||||
Number of SRECs (in certificates) | certificate | 1.5 | 1.5 | 1.2 |
DERIVATIVE INSTRUMENTS - VOLUME
DERIVATIVE INSTRUMENTS - VOLUME (Details) - Bcf | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Natural Gas Distribution | Long | Futures | ||
Derivative [Line Items] | ||
Notional amount | 32.2 | 30.5 |
Natural Gas Distribution | Long | Physical Commodity | ||
Derivative [Line Items] | ||
Notional amount | 8.8 | 6.8 |
Energy Services | Long | Physical Commodity | ||
Derivative [Line Items] | ||
Notional amount | (0.2) | 2.7 |
Energy Services | Short | Futures | ||
Derivative [Line Items] | ||
Notional amount | (5.6) | (0.7) |
DERIVATIVE INSTRUMENTS - BROKER
DERIVATIVE INSTRUMENTS - BROKER MARGIN DEPOSITS (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Natural Gas Distribution | Assets, Current | ||
Derivative [Line Items] | ||
Broker margin - current assets | $ 12,866 | $ 26,138 |
Energy Services | Assets, Current | ||
Derivative [Line Items] | ||
Broker margin - current assets | 38,703 | 68,123 |
Energy Services | Liabilities, Current | ||
Derivative [Line Items] | ||
Broker margin - Current liabilities | $ 1,245 | $ 0 |
DERIVATIVE INSTRUMENTS - CREDIT
DERIVATIVE INSTRUMENTS - CREDIT RISK EXPOSURE (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2023 USD ($) | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | $ 181,505 |
Investment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | 126,575 |
Noninvestment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | 13,009 |
Internally rated investment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | 15,514 |
Internally rated noninvestment grade | |
Credit Risk Exposure [Line Items] | |
Gross Credit Exposure | $ 26,407 |
FAIR VALUE - DEBT (Details)
FAIR VALUE - DEBT (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance leases | $ 35,200 | $ 30,300 |
NJR | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt issuance costs | 4,000 | 3,800 |
NJNG | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt issuance costs | 9,800 | 9,500 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Finance leases | 23,400 | 15,700 |
Level 2 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 2,537,845 | 2,362,845 |
Level 2 | Fair market value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 2,227,816 | $ 1,946,356 |
FAIR VALUE - ADDITIONAL INFORMA
FAIR VALUE - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Sep. 30, 2022 |
Solar Asset Financing | Fair market value | Clean Energy Ventures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 182.6 | $ 124.1 |
FAIR VALUE - HIERARCHY (Details
FAIR VALUE - HIERARCHY (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Liabilities: | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Assets | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities and Equity | |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Other | $ 2,677 | $ 1,884 |
Total assets at fair value | 55,074 | 32,963 |
Liabilities: | ||
Total liabilities at fair value | 41,551 | 64,039 |
Fair Value, Measurements, Recurring | Money market funds | ||
Assets: | ||
Assets | 25,099 | 59 |
Fair Value, Measurements, Recurring | Physical commodity contracts | ||
Assets: | ||
Assets | 4,366 | 10,485 |
Liabilities: | ||
Liabilities | 27,532 | 30,623 |
Fair Value, Measurements, Recurring | Financial commodity contracts | ||
Assets: | ||
Assets | 22,932 | 20,517 |
Liabilities: | ||
Liabilities | 14,019 | 33,399 |
Fair Value, Measurements, Recurring | Foreign currency contracts | ||
Assets: | ||
Assets | 18 | |
Liabilities: | ||
Liabilities | 17 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | ||
Assets: | ||
Other | 2,677 | 1,884 |
Total assets at fair value | 50,708 | 22,460 |
Liabilities: | ||
Total liabilities at fair value | 14,019 | 33,231 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Money market funds | ||
Assets: | ||
Assets | 25,099 | 59 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Physical commodity contracts | ||
Assets: | ||
Assets | 0 | 0 |
Liabilities: | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Financial commodity contracts | ||
Assets: | ||
Assets | 22,932 | 20,517 |
Liabilities: | ||
Liabilities | 14,019 | 33,231 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Foreign currency contracts | ||
Assets: | ||
Assets | 0 | |
Liabilities: | ||
Liabilities | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Other | 0 | 0 |
Total assets at fair value | 4,366 | 10,503 |
Liabilities: | ||
Total liabilities at fair value | 27,532 | 30,808 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Assets: | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Physical commodity contracts | ||
Assets: | ||
Assets | 4,366 | 10,485 |
Liabilities: | ||
Liabilities | 27,532 | 30,623 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Financial commodity contracts | ||
Assets: | ||
Assets | 0 | 0 |
Liabilities: | ||
Liabilities | 0 | 168 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign currency contracts | ||
Assets: | ||
Assets | 18 | |
Liabilities: | ||
Liabilities | 17 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
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) | Money market funds | ||
Assets: | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Physical commodity contracts | ||
Assets: | ||
Assets | 0 | 0 |
Liabilities: | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Financial commodity contracts | ||
Assets: | ||
Assets | 0 | 0 |
Liabilities: | ||
Liabilities | $ 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign currency contracts | ||
Assets: | ||
Assets | 0 | |
Liabilities: | ||
Liabilities | $ 0 |
INVESTMENTS IN EQUITY INVESTE_2
INVESTMENTS IN EQUITY INVESTEES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 7 Months Ended | |
Feb. 15, 2023 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2023 USD ($) mi | Sep. 30, 2022 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Investments in equity method investees | $ 105,125 | $ 106,571 | ||
Impairment of equity method investment | $ 92,000 | |||
Other than temporary impairment, net of tax | $ 74,500 | |||
Steckman Ridge | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50% | |||
Investments in equity method investees | $ 105,100 | 106,600 | ||
Total outstanding principal balance of loans | $ 70,400 | 70,400 | ||
PennEast | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 20% | |||
Construction plan, project area (in miles) | mi | 120 | |||
PennEast | PennEast | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in equity method investees | $ 0 | |||
Distribution | $ 200 | $ 11,000 | ||
PennEast | PennEast | NJR Pipeline | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 20% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||||||
Net income, as reported | $ 110,247 | $ 115,921 | $ 96,035 | $ 111,312 | $ 226,168 | $ 207,347 |
Basic earnings per share | ||||||
Weighted average shares of common stock outstanding-basic (in shares) | 96,893 | 96,068 | 96,689 | 96,006 | ||
Basic earnings per common share (usd per share) | $ 1.14 | $ 1 | $ 2.34 | $ 2.16 | ||
Diluted earnings per share | ||||||
Weighted average shares of common stock outstanding-basic (in shares) | 96,893 | 96,068 | 96,689 | 96,006 | ||
Incremental shares (in shares) | 663 | 448 | 657 | 474 | ||
Weighted average shares of common stock outstanding-diluted (in shares) | 97,556 | 96,516 | 97,346 | 96,480 | ||
Diluted earnings per common share (usd per share) | $ 1.13 | $ 1 | $ 2.32 | $ 2.15 |
DEBT - CREDIT FACILITIES AND SH
DEBT - CREDIT FACILITIES AND SHORT-TERM DEBT (Details) - USD ($) | 6 Months Ended | ||
Mar. 31, 2023 | Feb. 07, 2023 | Sep. 30, 2022 | |
NJR | Letter of Credit on Behalf of NJRES | |||
Line of Credit Facility [Line Items] | |||
Letters of credit outstanding, amount | $ 5,200,000 | $ 9,700,000 | |
NJNG | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Letters of credit outstanding, amount | $ 731,000 | 731,000 | |
Revolving Credit Facility | NJR | |||
Line of Credit Facility [Line Items] | |||
Commitment fee percentage | 0.10% | ||
Revolving Credit Facility | NJNG | |||
Line of Credit Facility [Line Items] | |||
Commitment fee percentage | 0.075% | ||
Revolving Credit Facility | Committed Credit Facilities Due September 2027 | NJR | |||
Line of Credit Facility [Line Items] | |||
Bank revolving credit facilities | $ 650,000,000 | 650,000,000 | |
Amount outstanding at end of period | $ 187,650,000 | $ 200,150,000 | |
Weighted average interest rate at end of period | 5.96% | 3.97% | |
Amount available at end of period | $ 457,177,000 | $ 440,177,000 | |
Revolving Credit Facility | Committed Credit Facilities Due September 2027 | NJNG | |||
Line of Credit Facility [Line Items] | |||
Bank revolving credit facilities | 250,000,000 | 250,000,000 | |
Amount outstanding at end of period | $ 0 | $ 73,800,000 | |
Weighted average interest rate at end of period | 0% | 3.34% | |
Amount available at end of period | $ 249,269,000 | $ 175,469,000 | |
Term Loan | Committed Credit Facilities Due February 2023 | NJR | |||
Line of Credit Facility [Line Items] | |||
Bank revolving credit facilities | 0 | $ 150,000,000 | 150,000,000 |
Amount outstanding at end of period | $ 0 | $ 150,000,000 | |
Weighted average interest rate at end of period | 0% | 3.81% | |
Amount available at end of period | $ 0 | $ 0 |
DEBT - CREDIT FACILITIES AND _2
DEBT - CREDIT FACILITIES AND SHORT TERM DEBT ADDITIONAL INFORMATION (Details) - Term Loan - Committed Credit Facilities Due February 2023 - NJR - USD ($) | Mar. 31, 2023 | Feb. 07, 2023 | Sep. 30, 2022 | Feb. 14, 2022 | Feb. 09, 2022 |
Line of Credit Facility [Line Items] | |||||
Bank revolving credit facilities | $ 0 | $ 150,000,000 | $ 150,000,000 | ||
Amount borrowed | $ 100,000,000 | $ 50,000,000 |
DEBT - LONG TERM DEBT (Details)
DEBT - LONG TERM DEBT (Details) - USD ($) | 6 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Apr. 30, 2023 | Oct. 24, 2022 | |
Debt Instrument [Line Items] | ||||
Proceeds from sale leaseback transactions - natural gas meters | $ 8,441,000 | $ 17,300,000 | ||
Proceeds from sale leaseback transactions - solar | 61,808,000 | 3,300,000 | ||
Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Sale leaseback transaction, net | $ 89,900,000 | |||
Clean Energy Ventures | ||||
Debt Instrument [Line Items] | ||||
Proceeds from sale leaseback transactions - solar | $ 61,800,000 | 3,300,000 | ||
Clean Energy Ventures | Minimum | ||||
Debt Instrument [Line Items] | ||||
Sale leaseback transaction lease term | 5 years | |||
Clean Energy Ventures | Maximum | ||||
Debt Instrument [Line Items] | ||||
Sale leaseback transaction lease term | 15 years | |||
NJNG | ||||
Debt Instrument [Line Items] | ||||
Proceeds from sale leaseback transactions - natural gas meters | $ 8,400,000 | 17,300,000 | ||
Payments for sale leaseback transaction | $ 0 | $ 1,100,000 | ||
NJR | Senior Notes | Unsecured Senior Notes 6.14%, Maturing in 2032 | ||||
Debt Instrument [Line Items] | ||||
Debt issued | $ 50,000,000 | |||
Stated interest rate | 6.14% | |||
NJNG | Senior Notes | Unsecured Senior Notes 5.47%, Maturing in 2052 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.47% | |||
Face amount | $ 125,000,000 |
EMPLOYEE BENEFIT PLANS - COMPON
EMPLOYEE BENEFIT PLANS - COMPONENTS OF NET PERIODIC COST (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 1,351 | $ 2,073 | $ 2,701 | $ 4,146 |
Interest cost | 3,793 | 2,408 | 7,587 | 4,816 |
Expected return on plan assets | (4,993) | (5,318) | (9,986) | (10,637) |
Recognized actuarial loss | 75 | 2,186 | 150 | 4,372 |
Prior service cost (credit) amortization | 26 | 26 | 51 | 51 |
Net periodic benefit cost | 252 | 1,375 | 503 | 2,748 |
OPEB | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 618 | 1,076 | 1,236 | 2,152 |
Interest cost | 2,287 | 1,589 | 4,573 | 3,178 |
Expected return on plan assets | (1,681) | (1,894) | (3,361) | (3,788) |
Recognized actuarial loss | 0 | 1,421 | 0 | 2,842 |
Prior service cost (credit) amortization | 0 | (36) | 0 | (72) |
Net periodic benefit cost | $ 1,224 | $ 2,156 | $ 2,448 | $ 4,312 |
EMPLOYEE BENEFIT PLANS - ADDITI
EMPLOYEE BENEFIT PLANS - ADDITIONAL INFORMATION (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 0 | $ 0 |
OPEB | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated future employer contributions | 5,000,000 | |
OPEB | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated future employer contributions | $ 10,000,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||||||
Forecasted effective tax rate | 22.10% | 22.30% | ||||
Revaluation of deferred tax assets and liabilities | $ (554) | $ (166) | ||||
Actual effective tax rate | 21.90% | 22.30% | ||||
ITC carryforward | $ 171,600 | $ 211,800 | ||||
Effective term | 20 years | |||||
Potential net capital loss | $ 56,400 | 56,600 | ||||
Operating loss carryforward, valuation allowance | 16,800 | 17,200 | ||||
Investment tax credit, solar property, percentage | 26% | 26% | 26% | |||
State | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Net operating loss carryforwards | $ 516,100 | 544,400 | ||||
State | Minimum | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective term | 7 years | |||||
State | Maximum | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective term | 20 years | |||||
Capital Loss Carryforward | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax credit carryforward, valuation allowance | $ 5,000 | $ 5,100 |
LEASES - ADDITIONAL INFORMATION
LEASES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | Jul. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||||||
ROU asset obtained in exchange for operating lease liability | $ 287 | $ 17 | $ 407 | $ 825 | ||
Proceeds from sale leaseback transactions - natural gas meters | $ 8,441 | 17,300 | ||||
ROU asset obtained in exchange for finance lease liability | $ 0 | $ 0 | ||||
Weighted average remaining lease term, operating lease | 29 years 1 month 6 days | 29 years 1 month 6 days | 29 years 2 months 12 days | |||
Operating lease, discount rate | 3.20% | 3.20% | 3.20% | |||
Weighted average remaining lease term, finance lease | 3 years 8 months 12 days | 3 years 8 months 12 days | 4 years | |||
NJNG | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Proceeds from sale leaseback transactions - natural gas meters | $ 8,400 | $ 17,300 | ||||
Solar Property | Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 20 years | 20 years | ||||
Renewal term | 5 years | 5 years | ||||
Solar Property | Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 50 years | 50 years | ||||
Renewal term | 20 years | 20 years | ||||
Office Building | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 16 years | |||||
Office Building | Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 2 years | 2 years | ||||
Office Building | Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 17 years | 17 years | ||||
Meter License | Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 7 years | 7 years | ||||
Meter License | Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 10 years | 10 years | ||||
Equipment | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 8 years | 8 years | ||||
Storage and Capacity | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Term of contract | 50 years | 50 years |
LEASES - LEASE COST (Details)
LEASES - LEASE COST (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 2,307 | $ 2,915 | $ 4,724 | $ 5,034 |
Amortization of right-of-use assets | 540 | 457 | 1,025 | 853 |
Interest on lease liabilities | 298 | 104 | 533 | 184 |
Total finance lease cost | 838 | 561 | 1,558 | 1,037 |
Short-term lease cost | 0 | 12 | 0 | 23 |
Variable lease cost | 272 | 172 | 495 | 363 |
Total lease cost | $ 3,417 | $ 3,660 | $ 6,777 | $ 6,457 |
LEASES - SUPPLEMENTAL CASH FLOW
LEASES - SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 3,652 | $ 3,557 |
Operating cash flows for finance leases | 533 | 404 |
Financing cash flows for finance leases | $ 3,577 | $ 3,947 |
LEASES - RIGHT-OF-USE ASSETS AN
LEASES - RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Noncurrent | ||
Operating lease assets | $ 165,783 | $ 168,520 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Utility plant, at cost | Utility plant, at cost |
Finance lease assets | $ 29,328 | $ 21,913 |
Total lease assets | 195,111 | 190,433 |
Current | ||
Operating lease liabilities | $ 5,308 | $ 4,562 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of long-term debt | Current maturities of long-term debt |
Finance lease liabilities | $ 8,773 | $ 6,538 |
Noncurrent | ||
Operating lease liabilities | $ 136,789 | $ 138,382 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Finance lease liabilities | $ 26,380 | $ 23,752 |
Total lease liabilities | $ 177,250 | $ 173,234 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2023 USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Current charges recoverable through BGSS | $ 186,400 |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2023 | 172,673 |
2024 | 263,349 |
2025 | 236,524 |
2026 | 183,406 |
2027 | 162,271 |
Thereafter | 1,098,435 |
Energy Services | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2023 | 65,856 |
2024 | 80,828 |
2025 | 54,507 |
2026 | 38,606 |
2027 | 28,519 |
Thereafter | 35,504 |
Energy Services | Natural gas purchases | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2023 | 24,692 |
2024 | 13,502 |
2025 | 1,721 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Energy Services | Storage demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2023 | 10,825 |
2024 | 16,688 |
2025 | 7,838 |
2026 | 4,654 |
2027 | 2,166 |
Thereafter | 794 |
Energy Services | Pipeline demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2023 | 30,339 |
2024 | 50,638 |
2025 | 44,948 |
2026 | 33,952 |
2027 | 26,353 |
Thereafter | 34,710 |
Annual pipeline obligation to be paid over 10 year period | 4,000 |
Natural Gas Distribution | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2023 | 106,817 |
2024 | 182,521 |
2025 | 182,017 |
2026 | 144,800 |
2027 | 133,752 |
Thereafter | 1,062,931 |
Natural Gas Distribution | Natural gas purchases | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2023 | 14,833 |
2024 | 539 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Natural Gas Distribution | Storage demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2023 | 22,472 |
2024 | 42,049 |
2025 | 30,048 |
2026 | 14,353 |
2027 | 9,541 |
Thereafter | 4,772 |
Natural Gas Distribution | Pipeline demand fees | |
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years | |
2023 | 69,512 |
2024 | 139,933 |
2025 | 151,969 |
2026 | 130,447 |
2027 | 124,211 |
Thereafter | $ 1,058,159 |
Minimum | Energy Services | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, contract term | 1 year |
Maximum | Energy Services | |
Long-term Purchase Commitment [Line Items] | |
Storage and pipeline capacity, contract term | 10 years |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - LEGAL PROCEEDINGS (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Apr. 12, 2023 | Mar. 23, 2022 | Apr. 07, 2021 | Mar. 31, 2023 | Sep. 30, 2022 | |
Site Contingency [Line Items] | |||||
Manufactured gas plant remediation | $ 124,493 | $ 127,060 | |||
Recovery from third party of environmental remediation cost, period | 7 years | ||||
Regulatory assets | $ 501,829 | $ 500,666 | |||
Expended, net of recoveries | |||||
Site Contingency [Line Items] | |||||
Regulatory assets | 63,300 | ||||
RAC | |||||
Site Contingency [Line Items] | |||||
Approved rate, amount | $ 11,700 | $ 11,100 | |||
RAC | Subsequent Event | |||||
Site Contingency [Line Items] | |||||
Approved rate, amount | $ 15,400 | ||||
Interim rate increase (decrease), amount | $ 3,700 | ||||
Minimum | |||||
Site Contingency [Line Items] | |||||
Product liability contingency, loss exposure in excess of accrual, best estimate | 110,800 | ||||
Maximum | |||||
Site Contingency [Line Items] | |||||
Product liability contingency, loss exposure in excess of accrual, best estimate | $ 167,100 |
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 | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||
Utility | $ 400,500 | $ 463,474 | $ 757,909 | $ 737,909 |
Nonutility | 243,527 | 448,842 | 609,685 | 850,249 |
Operating revenues | 644,027 | 912,316 | 1,367,594 | 1,588,158 |
Depreciation and amortization | 38,090 | 31,435 | 74,773 | 61,828 |
Interest income | 2,236 | 488 | 4,195 | 989 |
Interest expense, net of capitalized interest | 30,261 | 18,926 | 59,752 | 38,403 |
Income tax provision (benefit) | 30,586 | 28,810 | 63,564 | 59,617 |
Equity in earnings of affiliates | 1,131 | 769 | 2,077 | 1,344 |
Net financial earnings (loss) | 112,310 | 130,206 | 222,594 | 195,976 |
Capital expenditures | 117,188 | 137,012 | 263,111 | 301,310 |
Return of capital from equity investees | 0 | (4,000) | 0 | (4,000) |
Energy Services | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 9,500 | 10,300 | 29,500 | 32,400 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 632,861 | 901,626 | 1,352,019 | 1,567,968 |
Depreciation and amortization | 37,866 | 31,258 | 74,331 | 61,545 |
Interest income | 2,440 | 572 | 4,523 | 1,142 |
Interest expense, net of capitalized interest | 30,072 | 18,801 | 59,441 | 38,034 |
Income tax provision (benefit) | 27,431 | 27,661 | 61,984 | 59,667 |
Net financial earnings (loss) | 114,893 | 130,857 | 224,751 | 195,645 |
Capital expenditures | 116,428 | 136,849 | 262,211 | 301,068 |
Operating Segments | Natural Gas Distribution, External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Utility | 400,500 | 463,474 | 757,909 | 737,909 |
Operating Segments | Clean Energy Ventures, External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 14,406 | 11,827 | 27,198 | 22,010 |
Operating Segments | Energy Services | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 196,553 | 411,069 | 509,952 | 776,857 |
Operating revenues | 196,553 | 411,069 | 509,952 | 776,857 |
Depreciation and amortization | 62 | 32 | 119 | 60 |
Interest income | 380 | 0 | 649 | 0 |
Interest expense, net of capitalized interest | 2,749 | 795 | 5,807 | 1,470 |
Income tax provision (benefit) | 5,916 | (790) | 25,980 | 19,715 |
Net financial earnings (loss) | 21,125 | 29,940 | 73,658 | 47,507 |
Operating Segments | Storage and Transportation | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 19,303 | 12,805 | 45,017 | 24,389 |
Operating revenues | 19,303 | 12,805 | 45,017 | 24,389 |
Depreciation and amortization | 6,020 | 2,571 | 11,962 | 4,704 |
Interest income | 1,684 | 381 | 3,085 | 758 |
Interest expense, net of capitalized interest | 6,128 | 1,847 | 12,835 | 3,983 |
Income tax provision (benefit) | 596 | 714 | 2,539 | 1,057 |
Equity in earnings of affiliates | 977 | 1,256 | 1,886 | 2,312 |
Net financial earnings (loss) | 2,450 | 4,625 | 8,693 | 7,587 |
Capital expenditures | 10,122 | 43,673 | 29,841 | 109,048 |
Return of capital from equity investees | 0 | (4,000) | 0 | (4,000) |
Operating Segments | Natural Gas Distribution | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 400,500 | 463,474 | 757,909 | 737,909 |
Depreciation and amortization | 25,319 | 23,344 | 50,209 | 46,237 |
Interest income | 376 | 191 | 789 | 384 |
Interest expense, net of capitalized interest | 13,879 | 10,764 | 27,588 | 21,759 |
Income tax provision (benefit) | 23,924 | 29,689 | 38,307 | 42,893 |
Net financial earnings (loss) | 100,697 | 102,783 | 155,361 | 153,863 |
Capital expenditures | 92,600 | 52,000 | 174,671 | 125,464 |
Operating Segments | Clean Energy Ventures | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 14,406 | 11,827 | 27,198 | 22,010 |
Depreciation and amortization | 6,465 | 5,311 | 12,041 | 10,544 |
Interest expense, net of capitalized interest | 7,316 | 5,395 | 13,211 | 10,822 |
Income tax provision (benefit) | (3,005) | (1,952) | (4,842) | (3,998) |
Net financial earnings (loss) | (9,379) | (6,491) | (12,961) | (13,312) |
Capital expenditures | 13,706 | 41,176 | 57,699 | 66,556 |
Intercompany | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 183 | 81 | 196 | 180 |
Intercompany | Natural Gas Distribution, External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Utility | 338 | 338 | 675 | 675 |
Intercompany | Energy Services | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 177 | 1,576 | 8,560 | 5,032 |
Intercompany | Storage and Transportation | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 1,584 | 537 | 2,708 | 1,096 |
Home Services and Other | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | 13,265 | 13,141 | 27,518 | 26,993 |
Operating revenues | 13,265 | 13,141 | 27,518 | 26,993 |
Depreciation and amortization | 224 | 203 | 442 | 407 |
Interest income | 734 | 147 | 1,388 | 302 |
Interest expense, net of capitalized interest | 189 | 125 | 311 | 369 |
Income tax provision (benefit) | 488 | 256 | 705 | 502 |
Net financial earnings (loss) | 813 | 451 | 784 | 898 |
Capital expenditures | 760 | 163 | 900 | 242 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Nonutility | (2,282) | (2,532) | (12,139) | (6,983) |
Depreciation and amortization | 0 | (26) | 0 | (124) |
Interest income | (938) | (231) | (1,716) | (455) |
Income tax provision (benefit) | 2,667 | 893 | 875 | (552) |
Equity in earnings of affiliates | 154 | (487) | 191 | (968) |
Net financial earnings (loss) | $ (3,396) | $ (1,102) | $ (2,941) | $ (567) |
REPORTING SEGMENT AND OTHER O_4
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 6,296,133 | $ 6,261,416 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 6,427,284 | 6,378,335 |
Operating Segments | Natural Gas Distribution | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 4,194,970 | 4,030,686 |
Operating Segments | Clean Energy Ventures | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,056,744 | 1,015,065 |
Operating Segments | Energy Services | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 167,876 | 333,064 |
Operating Segments | Storage and Transportation | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,007,694 | 999,520 |
Home Services and Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 153,914 | 159,068 |
Intercompany Assets | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ (285,065) | $ (275,987) |
REPORTING SEGMENT AND OTHER O_5
REPORTING SEGMENT AND OTHER OPERATIONS DATA - NET FINANCIAL EARNINGS (LOSS) RECONCILIATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting [Abstract] | ||||||
Net financial earnings (loss) | $ 112,310 | $ 130,206 | $ 222,594 | $ 195,976 | ||
Less: | ||||||
Unrealized loss (gain) on derivative instruments and related transactions | 13,971 | 42,022 | (17,532) | (40,169) | ||
Tax effect | (3,320) | (9,980) | 4,167 | 9,556 | ||
Effects of economic hedging related to natural gas inventory | (11,203) | 1,155 | 12,769 | 24,732 | ||
Tax effect | 2,662 | (274) | (3,035) | (5,877) | ||
Gain on equity method investment | (200) | 0 | (200) | 0 | ||
Tax effect | 50 | 0 | 50 | 0 | ||
NFE tax adjustment | 103 | 1,248 | 207 | 387 | ||
NET INCOME | $ 110,247 | $ 115,921 | $ 96,035 | $ 111,312 | $ 226,168 | $ 207,347 |
RELATED PARTY TRANSACTIONS - AD
RELATED PARTY TRANSACTIONS - ADDITIONAL INFORMATION (Details) $ in Millions | 1 Months Ended | 6 Months Ended | |||
Apr. 01, 2020 USD ($) Bcf | Jun. 30, 2022 | Mar. 31, 2021 | Mar. 31, 2023 dth / d lease Bcf | Jul. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Number of asset management agreements | lease | 1 | ||||
NJNG to NJRES Affiliate | |||||
Related Party Transaction [Line Items] | |||||
Asset management agreement, period | 5 years | ||||
NJNG to Steckman RIdge Affiliate | |||||
Related Party Transaction [Line Items] | |||||
Natural gas sold at cost under asset management agreement (in Bcf) | Bcf | 3 | ||||
Approximate annual demand fees under agreement | $ | $ 9.3 | ||||
NJNG to Adelphia Affiliate | |||||
Related Party Transaction [Line Items] | |||||
Transportation capacity under precedent agreement with PennEast (in bcf per day) | dth / d | 130,000 | ||||
NJNG to Adelphia Affiliate | Transportation Precedent Agreement One | |||||
Related Party Transaction [Line Items] | |||||
Transportation precedent agreement term | 5 years | ||||
NJNG to Adelphia Affiliate | Transportation Precedent Agreement Two | |||||
Related Party Transaction [Line Items] | |||||
Transportation precedent agreement term | 15 years | ||||
Transportation capacity under precedent agreement with PennEast (in bcf per day) | dth / d | 130,000 | ||||
Right to reduction term | 7 years | ||||
Leaf River Energy Center LLC | |||||
Related Party Transaction [Line Items] | |||||
Natural gas sold at cost under asset management agreement (in Bcf) | Bcf | 3 | ||||
Storage capacity agreement term | 5 years | ||||
NJNG and Clean Energy Ventures to PPA | |||||
Related Party Transaction [Line Items] | |||||
Sublease agreement term | 20 years | 15 years | |||
NJNG To NJR Subsidiaries | |||||
Related Party Transaction [Line Items] | |||||
Term of contract | 16 years |
RELATED PARTY TRANSACTIONS - DE
RELATED PARTY TRANSACTIONS - DEMAND FEES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | |
Related Party Transaction [Line Items] | |||||
Demand fees expense recognized pertaining to related party agreement | $ 1,770 | $ 1,883 | $ 3,597 | $ 3,729 | |
Demand fees payable | 856 | 856 | $ 851 | ||
NJNG to Steckman RIdge Affiliate | |||||
Related Party Transaction [Line Items] | |||||
Demand fees expense recognized pertaining to related party agreement | 1,615 | 1,546 | 3,270 | 3,104 | |
Demand fees payable | 775 | 775 | 775 | ||
NJRES to Steckman Ridge Affiliate | |||||
Related Party Transaction [Line Items] | |||||
Demand fees expense recognized pertaining to related party agreement | 155 | $ 337 | 327 | $ 625 | |
Demand fees payable | $ 81 | $ 81 | $ 76 |