NEW JERSEY RESOURCES CORP, 10-Q filed on 5/7/2024
Quarterly Report
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Cover Page - shares
 6 Months Ended
Mar. 31, 2024
May 03, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2024  
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 - $2.50 Par Value  
Trading Symbol NJR  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Business false  
Entity Common Stock, Shares Outstanding   98,822,278
Entity Central Index Key 0000356309  
Current Fiscal Year End Date --09-30  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.24.1.u1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
OPERATING REVENUES        
Utility $ 462,863 $ 400,500 $ 755,956 $ 757,909
Nonutility 195,050 243,527 369,167 609,685
Total operating revenues 657,913 644,027 1,125,123 1,367,594
Natural gas purchases:        
Related parties 1,799 1,770 3,678 3,597
Operation and maintenance 107,223 99,095 201,662 178,596
Regulatory rider expenses 29,229 23,154 48,418 41,405
Depreciation and amortization 40,075 38,090 80,362 74,773
Total operating expenses 487,691 478,843 819,082 1,029,621
OPERATING INCOME 170,222 165,184 306,041 337,973
Other income, net 15,420 4,779 21,761 9,434
Interest expense, net of capitalized interest 31,621 30,261 63,094 59,752
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES 154,021 139,702 264,708 287,655
Income tax provision 33,947 30,586 56,883 63,564
Equity in earnings of affiliates 738 1,131 2,398 2,077
NET INCOME $ 120,812 $ 110,247 $ 210,223 $ 226,168
EARNINGS PER COMMON SHARE        
Basic (usd per share) $ 1.23 $ 1.14 $ 2.14 $ 2.34
Diluted (usd per share) $ 1.22 $ 1.13 $ 2.13 $ 2.32
WEIGHTED AVERAGE SHARES OUTSTANDING        
Basic (in shares) 98,377 96,893 98,123 96,689
Diluted (in shares) 99,102 97,556 98,839 97,346
Utility        
Natural gas purchases:        
Gas purchases - Utility and Nonutility $ 204,347 $ 156,370 $ 320,467 $ 338,816
Nonutility        
Natural gas purchases:        
Gas purchases - Utility and Nonutility $ 105,018 $ 160,364 $ 164,495 $ 392,434
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Statement of Comprehensive Income [Abstract]        
Net income $ 120,812 $ 110,247 $ 210,223 $ 226,168
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 262 264 526 527
Adjustment to postemployment benefit obligation, net of tax of $(2,908), $(13), $(2,948) and $(25), respectively 9,624 41 9,755 82
Other comprehensive income, net of tax 9,886 305 10,281 609
Comprehensive income $ 130,698 $ 110,552 $ 220,504 $ 226,777
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
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 $ (2,908) $ (13) $ (2,948) $ (25)
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 210,223 $ 226,168
Adjustments to reconcile net income to cash flows from operating activities    
Unrealized loss (gain) on derivative instruments 20,057 (17,532)
Depreciation and amortization 80,362 74,773
Amortization of acquired wholesale energy contracts 260 1,283
Allowance for equity used during construction (3,572) (2,801)
Allowance for doubtful accounts (24) (395)
Non cash lease expense 2,130 1,848
Deferred income taxes 49,301 36,072
Equivalent value of ITCs recognized on equipment financing (10,605) (899)
Manufactured gas plant remediation costs (12,577) (4,362)
Cost of removal - asset retirement obligations (763) (644)
Contributions to postemployment benefit plans (2,191) (634)
Taxes related to stock-based compensation 1,186 554
Changes in:    
Components of working capital (3,021) (42,519)
Other noncurrent assets and liabilities 7,836 72,209
Cash flows from operating activities 338,602 343,121
Expenditures for:    
Cost of removal (17,436) (16,757)
Distribution from equity investees in excess of equity in earnings 2,284 1,374
Cash flows used in investing activities (235,018) (261,737)
CASH FLOWS USED IN FINANCING ACTIVITIES    
Proceeds from long-term debt 50,000 175,000
Payments of long-term debt (82,790) (10,534)
Payments of term loan 0 (150,000)
Payments of short-term debt, net (55,950) (86,300)
Proceeds from sale leaseback transactions - solar 24,394 61,808
Proceeds from sale leaseback transactions - natural gas meters 8,814 8,441
Payments of common stock dividends (82,156) (75,200)
Proceeds from waiver discount issuance of common stock 35,838 17,919
Proceeds from issuance of common stock - DRP 7,522 7,610
Tax withholding payments related to net settled stock compensation (5,027) (4,024)
Cash flows used in financing activities (99,355) (55,280)
Change in cash, cash equivalents and restricted cash 4,229 26,104
Cash, cash equivalents and restricted cash at beginning of period 1,517 1,452
Cash, cash equivalents and restricted cash at end of period 5,746 27,556
CHANGES IN COMPONENTS OF WORKING CAPITAL    
Receivables (144,321) (8,877)
Inventories 115,166 185,444
Recovery of natural gas costs (3,853) (28,825)
Natural gas purchases payable 13,178 (159,016)
Natural gas purchases payable - related parties 0 5
Deferred revenue, current 48,294 1,587
Accounts payable and other (15,888) (24,095)
Prepaid expenses (6,350) (6,493)
Prepaid and accrued taxes 30,705 51,591
Restricted broker margin accounts (15,015) (43,414)
Customers' credit balances and deposits (20,032) (7,725)
Other current assets and liabilities (4,905) (2,701)
Total (3,021) (42,519)
Cash paid for:    
Interest (net of amounts capitalized) 60,256 57,622
Income taxes 6,699 1,967
Accrued capital expenditures 17,513 24,318
Utility plant    
Expenditures for:    
Payments to acquire PP&E (160,937) (157,914)
Solar equipment    
Expenditures for:    
Payments to acquire PP&E (37,083) (57,699)
Storage and Transportation and other    
Expenditures for:    
Payments to acquire PP&E $ (21,846) $ (30,741)
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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2024
Sep. 30, 2023
PROPERTY, PLANT AND EQUIPMENT    
Utility plant, at cost $ 4,012,235 $ 3,843,037
Construction work in progress 223,421 237,428
Nonutility plant and equipment, at cost 1,791,100 1,767,306
Construction work in progress 171,396 142,768
Total property, plant and equipment 6,198,152 5,990,539
Accumulated depreciation and amortization, utility plant (753,750) (714,087)
Accumulated depreciation and amortization, nonutility plant and equipment (278,854) (254,397)
Property, plant and equipment, net 5,165,548 5,022,055
CURRENT ASSETS    
Cash and cash equivalents 5,036 954
Customer accounts receivable    
Billed 185,069 97,540
Unbilled revenues 74,456 19,100
Allowance for doubtful accounts (9,576) (11,036)
Regulatory assets 93,887 73,587
Natural gas in storage, at average cost 80,996 199,501
Materials and supplies, at average cost 30,361 27,022
Prepaid expenses 16,091 9,741
Prepaid taxes 18,299 43,046
Derivatives, at fair value 14,056 30,755
Restricted broker margin accounts 19,310 20,796
Other current assets 25,726 21,071
Total current assets 553,711 532,077
NONCURRENT ASSETS    
Investments in equity method investees 101,778 104,134
Regulatory assets 535,104 584,830
Operating lease assets 177,176 175,740
Derivatives, at fair value 910 1,564
Software costs 9,734 8,375
Deferred income taxes 22,848 28,383
Postemployment employee benefit assets 18,618 18,684
Other noncurrent assets 61,950 61,654
Total noncurrent assets 928,118 983,364
Total assets 6,647,377 6,537,496
CAPITALIZATION    
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding shares March 31, 2024 — 98,744,915; September 30, 2023 — 97,584,455 246,367 243,458
Premium on common stock 604,009 558,654
Accumulated other comprehensive income (loss), net of tax 322 (9,959)
Treasury stock at cost and other; shares March 31, 2024 — 16,302; September 30, 2023 — 13,041 22,936 20,748
Retained earnings 1,305,591 1,177,834
Common stock equity 2,179,225 1,990,735
Long-term debt 2,726,221 2,768,017
Total capitalization 4,905,446 4,758,752
CURRENT LIABILITIES    
Current maturities of long-term debt 148,375 116,155
Short-term debt 196,150 252,100
Natural gas purchases payable 64,455 51,277
Natural gas purchases payable to related parties 859 859
Deferred revenue 109,698 61,404
Accounts payable and other 127,159 151,790
Dividends payable 41,290 40,981
Accrued taxes 16,048 10,090
Regulatory liabilities 33,163 32,287
New Jersey Clean Energy Program 6,827 15,804
Derivatives, at fair value 10,725 16,145
Operating lease liabilities 4,780 4,772
Restricted broker margin accounts 4,689 8,029
Customers' credit balances and deposits 24,878 44,910
Total current liabilities 789,096 806,603
NONCURRENT LIABILITIES    
Deferred income taxes 330,805 285,427
Deferred investment tax credits 2,295 2,434
Deferred revenue 612 659
Derivatives, at fair value 13,791 7,967
Manufactured gas plant remediation 157,813 169,390
Postemployment employee benefit liability 42,333 102,528
Regulatory liabilities 178,276 180,458
Operating lease liabilities 150,971 148,023
Asset retirement obligations 62,817 61,993
Other noncurrent liabilities 13,122 13,262
Total noncurrent liabilities 952,835 972,141
Commitments and contingent liabilities (Note 13)
Total capitalization and liabilities 6,647,377 6,537,496
Related Party    
CURRENT LIABILITIES    
Natural gas purchases payable to related parties $ 859 $ 859
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Mar. 31, 2024
Sep. 30, 2023
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) 98,744,915 97,584,455
Treasury stock at cost and other, shares (in shares) 16,302 13,041
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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, 2022   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) [1]   93,000        
Dividend reinvestment plan [1] 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   96,250,000        
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          
Other comprehensive income 609          
Balance as of end of period (in shares) at Mar. 31, 2023   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)   77,000        
Dividend reinvestment plan 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   96,901,000        
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 Sep. 30, 2023 97,584,455 97,584,000        
Balance as of beginning of period at Sep. 30, 2023 $ 1,990,735 $ 243,458 558,654 (9,959) 20,748 1,177,834
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 89,411         89,411
Other comprehensive income 395     395    
Common stock issued:            
Incentive compensation plan (in shares)   116,000        
Incentive compensation plan 3,741 $ 290 3,451      
Dividend reinvestment plan (in shares)   94,000        
Dividend reinvestment plan 3,788 $ 236 3,552      
Waiver discount (in shares)   410,000        
Waiver discount 17,919 $ 1,025 16,894      
Cash dividend declared (41,176)         (41,176)
Treasury stock and other (in shares)   (2,000)        
Treasury stock and other 1,388       1,388  
Balance as of end of period (in shares) at Dec. 31, 2023   98,202,000        
Balance as of end of period at Dec. 31, 2023 $ 2,066,201 $ 245,009 582,551 (9,564) 22,136 1,226,069
Balance as of beginning of period (in shares) at Sep. 30, 2023 97,584,455 97,584,000        
Balance as of beginning of period at Sep. 30, 2023 $ 1,990,735 $ 243,458 558,654 (9,959) 20,748 1,177,834
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 210,223          
Other comprehensive income $ 10,281          
Balance as of end of period (in shares) at Mar. 31, 2024 98,744,915 98,745,000        
Balance as of end of period at Mar. 31, 2024 $ 2,179,225 $ 246,367 604,009 322 22,936 1,305,591
Balance as of beginning of period (in shares) at Dec. 31, 2023   98,202,000        
Balance as of beginning of period at Dec. 31, 2023 2,066,201 $ 245,009 582,551 (9,564) 22,136 1,226,069
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 120,812         120,812
Other comprehensive income 9,886     9,886    
Common stock issued:            
Incentive compensation plan (in shares)   25,000        
Incentive compensation plan 1,242 $ 64 1,178      
Dividend reinvestment plan (in shares)   84,000        
Dividend reinvestment plan 3,655 $ 209 3,446   0  
Waiver discount (in shares)   435,000        
Waiver discount 17,919 $ 1,085 16,834      
Cash dividend declared (41,290)         (41,290)
Treasury stock and other (in shares)   (1,000)        
Treasury stock and other $ 800       800  
Balance as of end of period (in shares) at Mar. 31, 2024 98,744,915 98,745,000        
Balance as of end of period at Mar. 31, 2024 $ 2,179,225 $ 246,367 $ 604,009 $ 322 $ 22,936 $ 1,305,591
[1] Certain shares sold through the DRP issued from treasury stock are at average cost, which may differ from the actual market price paid.
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CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Unaudited) (Parenthetical) - $ / shares
 3 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]        
Cash dividend declared per share (usd per share) $ 0.42 $ 0.42 $ 0.39 $ 0.39
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NATURE OF THE BUSINESS
 6 Months Ended
Mar. 31, 2024
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 581,600 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.

Clean Energy Ventures, the Company's clean energy subsidiary, comprises the CEV segment and invests in, owns and operates clean energy projects, including commercial and residential solar installations located in New Jersey, Rhode Island, New York, Connecticut, Michigan and Indiana.

Energy Services comprises the ES segment. ES 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 S&T 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, and is subject to rate regulation by FERC. The Company holds a 50% combined ownership interest in Steckman Ridge, located in Pennsylvania which is accounted for under the equity method of accounting.

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 HSO.
v3.24.1.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 6 Months Ended
Mar. 31, 2024
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, 2023 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 2023 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, 2024. 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, lease liabilities, 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.

CEV 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. The Administratively Determined Incentive Program provides administratively set incentives for net metered residential projects and net metered non-residential projects of 5 MW or less. RECs generated through the production of electricity under this program are known as SREC IIs.

TRECs and SREC IIs generated are required to be purchased monthly by a REC program administrator as appointed by the BPU. Revenue for TRECs and SREC IIs are recognized upon generation and are transferred monthly based upon metered solar electricity activity.

Revenues for ES 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. ES also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues.

During December 2020, ES 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 in November 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. ES recognized operating revenue of $9.5M during both the three months ended March 31, 2024 and 2023, and $19.0M and $29.5M during the six months ended March 31, 2024 and 2023, respectively, on the Unaudited Condensed Consolidated Statements of Operations. Amounts received in excess of revenue totaling $107.2M and $58.7M are included in deferred revenue on the Unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023, respectively.

S&T 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,
2024		September 30,
2023		March 31,
2023
Balance Sheet
Cash and cash equivalents$5,036 $954 $27,095 
Restricted cash in other noncurrent assets$710 $563 $461 
Statements of Cash Flow
Cash, cash equivalents and restricted cash$5,746 $1,517 $27,556 

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.

Loans Receivable

NJNG currently provides loans, with terms ranging from two to 10 years, to customers that elect to purchase and install certain energy-efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at fair value on the Unaudited Condensed Consolidated Balance Sheets. The Company has $15.8M and $15.1M recorded in other current assets and $43.6M and $39.0M in other noncurrent assets as of March 31, 2024 and September 30, 2023, respectively, on the Unaudited Condensed Consolidated Balance Sheets, related to the loans. The Company regularly evaluates the credit quality and collection profile of its customers. If NJNG determines a loan is impaired, the basis of the loan would be subject to regulatory review for recovery. As of March 31, 2024 and September 30, 2023, the Company has not recorded any impairments for SAVEGREEN loans.

Natural Gas in Storage

The following table summarizes natural gas in storage, at average cost by segment as of:
March 31, 2024September 30, 2023
($ in thousands)Natural Gas in StorageBcfNatural Gas in StorageBcf
NJNG$60,539 9.2 $175,025 29.1 
ES20,457 11.3 24,476 14.6 
Total$80,996 20.5 $199,501 43.7 

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,
2024		September 30,
2023
Balance Sheets
Utility plant, at cost$88,234 $51,282 
Construction work in progress$45,573 $55,012 
Nonutility plant and equipment, at cost$344 $344 
Accumulated depreciation and amortization, utility plant$(9,728)$(7,480)
Accumulated depreciation and amortization, nonutility plant and equipment$(42)$(36)
Software costs$9,734 $8,375 

Three Months EndedSix Months Ended
March 31,March 31,
Statements of Operations2024202320242023
Operation and maintenance$2,674 $3,886 $5,927 $7,638 
Depreciation and amortization$1,265 $957 $2,254 $1,828 

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. As NJNG retains control of the natural gas meters, these arrangements do not qualify as a sale. NJNG uses the financing method to account for the transactions. 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 CEV is compensated for the transfer of the related tax attributes. Accordingly, CEV 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 Income (Loss)

The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the three months ended March 31, 2024 and 2023:
(Thousands)Cash Flow HedgesPostemployment Benefit ObligationTotal
Balance as of December 31, 2023$(7,005)$(2,559)$(9,564)
Other comprehensive income (loss), net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $(3,020), $(3,020), respectively
— 9,992 9,992 
Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(80), $112, $32, respectively
262 (368)(1)(106)
Net current-period other comprehensive income, net of tax of $(80), $(2,908), $(2,988), respectively
262 9,624 9,886 
Balance as of March 31, 2024$(6,743)$7,065 $322 
Balance as of December 31, 2022$(8,059)$3,537 $(4,522)
Other comprehensive income, net of tax
Amounts reclassified from accumulated other comprehensive income, net of tax of $(80), $(13), $(93)
264 41 (1)305 
Balance as of March 31, 2023$(7,795)$3,578 $(4,217)
(1)Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations.
The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the six months ended March 31, 2024 and 2023:
(Thousands)Cash Flow HedgesPostemployment Benefit ObligationTotal
Balance as of September 30, 2023$(7,269)$(2,690)$(9,959)
Other comprehensive income (loss), net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $(3,020) and $(3,020), respectively
— 9,992 9,992 
Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(159), $72 and $(87), respectively
526 (237)(1)289 
Net current-period other comprehensive income, net of tax of $(159), $(2,948), $(3,107), respectively
526 9,755 10,281 
Balance as of March 31, 2024$(6,743)$7,065 $322 
Balance as of September 30, 2022$(8,322)$3,496 $(4,826)
Other comprehensive income, net of tax
Amounts reclassified from accumulated other comprehensive income, net of tax of $(159), $(25) and $(184), respectively
527 82 (1)609 
Balance as of March 31, 2023$(7,795)$3,578 $(4,217)
(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.
Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation. Deferred income taxes and postemployment employee benefit assets previously classified within other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets have been reclassified to their own categories. Intangible assets, net previously classified in its own category on the Unaudited Condensed Consolidated Balance Sheets has been reclassified into other noncurrent assets. Other noncurrent assets and other noncurrent liabilities previously classified in their own categories on the Unaudited Condensed Consolidated Statements of Cash Flow have been combined into one category.
Recently Adopted 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 was effective for the Company beginning October 1, 2023, and was applied on a prospective basis to new acquisitions following the date of adoption. As the Company has not executed a transaction that would qualify as a business combination, there was no 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 was effective for the Company beginning October 1, 2023. As the Company does not currently apply hedge accounting to any of its risk management activities, there was no 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 was effective for the Company beginning October 1, 2023. Since the Company has not experienced a troubled debt restructuring, 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

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 will elect to apply it on a prospective basis. At this time, the Company does not have leases that are subject to this amendment, and therefore it would only impact the Company upon adoption if, in the future, it entered into such transactions.

Business Combinations

In August 2023, the FASB issued ASU No. 2023-05, an amendment to ASC 805, Business Combinations, which addresses how a joint venture should recognize contributions received upon its formation. Joint ventures must account for initial assets and liabilities received at fair value on the date the joint venture is formed. The guidance is effective for the Company for joint ventures formed beginning January 1, 2025, and the Company can elect to apply it either prospectively or retrospectively back to a joint venture’s formation date provided adequate information is available. Early adoption is permitted. This amendment would only impact the Company upon adoption if, in the future, it entered into an applicable transaction.
Segment Reporting

In November 2023, the FASB issued ASU No. 2023-07, an amendment to ASC 280, Segment Reporting, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The update requires entities to disclosure significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss, and it enhances interim disclosure requirements to conform with annual requirements. This update becomes effective for the Company on October 1, 2024 for the first annual period and on October 1, 2025 for the interim periods. It will be applied retrospectively for the enhanced segment disclosure requirements to all periods presented, with early adoption permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption.

Income Taxes
In December 2023, the FASB issued ASU No. 2023-09, an amendment to ASC 740, Income Taxes, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation and income taxes paid. It will provide investors more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance is effective for the Company on October 1, 2025, and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption.
v3.24.1.u1
REVENUE
 6 Months Ended
Mar. 31, 2024
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/
Operations		Performance ObligationDescription
NJNGNatural 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.
CEVCommercial solar electricity
CEV 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.
Revenue Recognized Over Time (continued):
Segment/
Operations		Performance ObligationDescription
CEVResidential solar electricity
CEV 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.
CEVRenewable energy certificates
Certain CEV 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 CEV 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.
ESNatural gas services
The performance obligation of ES is to provide the customer transportation, storage and asset management services on an as-needed basis. ES 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. ES 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.
S&T
Natural gas services
The performance obligation of S&T is to provide the customer with storage and transportation services. S&T 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.
HSOService 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:
ESNatural gas services
For a permanent release of pipeline capacity, the performance obligation of ES 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.
S&T
Natural gas services
The performance obligation of S&T is to provide the customer with storage and transportation services. S&T 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.
HSOInstallationsHome 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, 2024 and 2023, are as follows:

(Thousands)NJNGCEVESS&THSOTotal
2024
Natural gas utility sales (1)
$371,019 — — — — $371,019 
Natural gas services— — 16,145 23,042 — 39,187 
Service contracts— — — — 9,071 9,071 
Installations and maintenance— — — — 5,834 5,834 
Renewable energy certificates— 2,672 — — — 2,672 
Electricity sales— 6,553 — — — 6,553 
Eliminations (2)
(338)— — (673)(153)(1,164)
Revenues from contracts with customers370,681 9,225 16,145 22,369 14,752 433,172 
Alternative revenue programs (3)
7,382 — — — — 7,382 
Derivative instruments84,800 100 (4)128,717 — — 213,617 
Eliminations (2)
— — 3,742 — — 3,742 
Revenues out of scope92,182 100 132,459 — — 224,741 
Total operating revenues$462,863 9,325 148,604 22,369 14,752 $657,913 
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 customers326,860 8,169 16,836 19,303 13,265 384,433 
Alternative revenue programs (3)
27,270 — — — — 27,270 
Derivative instruments46,370 6,237 (4)179,894 — — 232,501 
Eliminations (2)
— — (177)— — (177)
Revenues out of scope73,640 6,237 179,717 — — 259,594 
Total operating revenues$400,500 14,406 196,553 19,303 13,265 $644,027 
(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, 2024 and 2023, are as follows:

(Thousands)NJNGCEVESS&THSOTotal
2024
Natural gas utility sales (1)
$628,894 — — — — $628,894 
Natural gas services— — 32,413 46,904 — 79,317 
Service contracts— — — — 18,011 18,011 
Installations and maintenance— — — — 11,728 11,728 
Renewable energy certificates— 5,322 — — — 5,322 
Electricity sales— 13,267 — — — 13,267 
Eliminations (2)
(675)— — (1,348)(153)(2,176)
Revenues from contracts with customers628,219 18,589 32,413 45,556 29,586 754,363 
Alternative revenue programs (3)
4,845 — — — — 4,845 
Derivative instruments122,892 26,031 (4)212,117 — — 361,040 
Eliminations (2)
— — 4,875 — — 4,875 
Revenues out of scope127,737 26,031 216,992 — — 370,760 
Total operating revenues$755,956 44,620 249,405 45,556 29,586 $1,125,123 
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 customers614,690 17,075 44,684 45,017 27,518 748,984 
Alternative revenue programs (3)
23,805 — — — — 23,805 
Derivative instruments119,414 10,123 (4)473,828 — — 603,365 
Eliminations (2)
— — (8,560)— — (8,560)
Revenues out of scope143,219 10,123 465,268 — — 618,610 
Total operating revenues$757,909 27,198 509,952 45,017 27,518 $1,367,594 
(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, 2024 and 2023, are as follows:
(Thousands)NJNGCEVESS&THSOTotal
2024
Residential$287,824 3,229 — — 14,684 $305,737 
Commercial and industrial50,362 5,996 16,145 22,369 68 94,940 
Firm transportation30,680 — — — — 30,680 
Interruptible, off-tariff and other1,815 — — — — 1,815 
Revenues out of scope92,182 100 132,459 — — 224,741 
Total operating revenues$462,863 9,325 148,604 22,369 14,752 $657,913 
2023
Residential$247,623 3,204 — — 13,089 $263,916 
Commercial and industrial49,105 4,965 16,836 19,303 176 90,385 
Firm transportation29,368 — — — — 29,368 
Interruptible, off-tariff and other764 — — — — 764 
Revenues out of scope73,640 6,237 179,717 — — 259,594 
Total operating revenues$400,500 14,406 196,553 19,303 13,265 $644,027 

Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the six months ended March 31, 2024 and 2023, are as follows:
(Thousands)NJNGCEVESS&THSOTotal
2024
Residential$483,447 6,615 — — 29,487 $519,549 
Commercial and industrial86,121 11,974 32,413 45,556 99 176,163 
Firm transportation55,115 — — — — 55,115 
Interruptible, off-tariff and other3,536 — — — — 3,536 
Revenues out of scope127,737 26,031 216,992 — — 370,760 
Total operating revenues$755,956 44,620 249,405 45,556 29,586 $1,125,123 
2023
Residential$464,561 6,497 — — 27,269 $498,327 
Commercial and industrial92,900 10,578 44,684 45,017 249 193,428 
Firm transportation55,567 — — — — 55,567 
Interruptible, off-tariff and other1,662 — — — — 1,662 
Revenues out of scope143,219 10,123 465,268 — — 618,610 
Total operating revenues$757,909 27,198 509,952 45,017 27,518 $1,367,594 
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, 2024 and 2023, are as follows:
Customer Accounts ReceivableCustomers' Credit
(Thousands)BilledUnbilledBalances and Deposits
Balance as of September 30, 2023$97,540 $19,100 $44,910 
Increase (decrease)87,529 55,356 (20,032)
Balance as of March 31, 2024$185,069 $74,456 $24,878 
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 

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, 2024 and September 30, 2023:
(Thousands)NJNGCEVESS&THSOTotal
March 31, 2024
Customer accounts receivable
Billed$142,088 7,273 25,241 7,749 2,718 $185,069 
Unbilled69,904 4,552 — — — 74,456 
Customers' credit balances and deposits(24,860)— — (18)— (24,878)
Total$187,132 11,825 25,241 7,731 2,718 $234,647 
September 30, 2023
Customer accounts receivable
Billed$55,234 9,962 23,716 6,577 2,051 $97,540 
Unbilled10,784 8,316 — — — 19,100 
Customers' credit balances and deposits(44,898)— — (12)— (44,910)
Total$21,120 18,278 23,716 6,565 2,051 $71,730 
v3.24.1.u1
REGULATION
 6 Months Ended
Mar. 31, 2024
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% and a return on common equity of 9.6%. 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,
2024		September 30,
2023
Regulatory assets-current
New Jersey Clean Energy Program$6,827 $15,804 
Conservation Incentive Program55,200 50,356 
Derivatives at fair value, net30,444 6,017 
Other current regulatory assets1,416 1,410 
Total current regulatory assets$93,887 $73,587 
Regulatory assets-noncurrent
Environmental remediation costs:
Expended, net of recoveries$69,229 $66,298 
Liability for future expenditures157,813 169,390 
Deferred income taxes42,626 41,667 
SAVEGREEN88,496 83,589 
Postemployment and other benefit costs7,936 55,274 
Cost of removal118,900 112,362 
Other noncurrent regulatory assets44,943 51,019 
Total noncurrent regulatory assets$529,943 $579,599 
Regulatory liability-current
Overrecovered natural gas costs$31,628 $30,637 
Total current regulatory liabilities$31,628 $30,637 
Regulatory liabilities-noncurrent
Tax Act impact (1)
$177,838 $180,347 
Other noncurrent regulatory liabilities438 111 
Total noncurrent regulatory liabilities$178,276 $180,458 
(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 are comprised of the following:
(Thousands)March 31,
2024		September 30,
2023
Total noncurrent regulatory assets$5,161 $5,231 
Total current regulatory liabilities$1,535 $1,650 

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 November 9, 2023, NJNG filed a letter petition seeking BPU approval to extend NJNG’s current SAVEGREEN program through December 31, 2024, with an additional $76.9M in order to meet customer demand for this program, which was approved by the BPU on April 30, 2024.

•On December 1, 2023, NJNG filed a petition seeking BPU approval of its 2024 SAVEGREEN program, which would support new energy efficiency, demand response and building decarbonization start-up programs from January 1, 2025 through June 30, 2027. The 2024 SAVEGREEN program includes $245.1M of direct investment, $217.2M in financing options and $20.1M in O&M.
•On January 31, 2024, NJNG filed a base rate case with the BPU requesting a natural gas revenue increase of $222.6M including a recovery of infrastructure investments, a change in the Company’s overall rate of return on rate base to 7.57% and a change in the return on common equity to 10.42%.

•On March 20, 2024, the BPU approved NJNG's annual SBC filing of RAC expenditures through June 30, 2023, which included an increase to the RAC annual recoveries of approximately $2.4M and an increase to the NJCEP annual recoveries of approximately $5.5M, effective April 1, 2024.

•On March 28, 2024, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $43.5M through June 30, 2024, which will result in a $5.6M revenue increase, with a proposed effective date of October 1, 2024.
v3.24.1.u1
DERIVATIVE INSTRUMENTS
 6 Months Ended
Mar. 31, 2024
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

ES 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 ES, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For ES 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.

ES 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. ES 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 ES 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. ES 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. 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 CEV 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, 2024September 30, 2023
(Thousands)Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
Derivatives not designated as hedging instruments:
NJNG:
Physical commodity contractsDerivatives - current$49 $6 $43 $488 
Financial commodity contractsDerivatives - current1,229 35 6,110 20 
ES:
Physical commodity contractsDerivatives - current1,384 6,656 6,209 12,757 
Derivatives - noncurrent678 13,014 802 7,870 
Financial commodity contractsDerivatives - current11,394 4,028 18,393 2,880 
Derivatives - noncurrent232 777 762 97 
Total fair value of derivatives$14,966 $24,516 $32,319 $24,112 

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.
Asset DerivativesLiability Derivatives
(Thousands)
Fair Value (1)
Amounts Offset (2)
Collateral Received/Pledged (3)
Net Value (4)
Fair Value (1)
Amounts Offset (2)
Collateral Received/Pledged (3)
Net Value (4)
As of March 31, 2024
ES Contracts
Physical commodity$2,062 (539)— $1,523 $19,670 (539)(9,865)$9,266 
Financial commodity11,626 (4,805)(6,206)615 4,805 (4,805)— — 
Total ES$13,688 (5,344)(6,206)$2,138 $24,475 (5,344)(9,865)$9,266 
NJNG Contracts
Physical commodity$49 (4)— $45 $6 (4)— $2 
Financial commodity1,229 (35)— 1,194 35 (35)— — 
Total NJNG$1,278 (39)— $1,239 $41 (39)— $2 
As of September 30, 2023
ES Contracts
Physical commodity$7,011 (1,236)— $5,775 $20,627 (1,236)(9,728)$9,663 
Financial commodity19,155 (2,977)(16,178)— 2,977 (2,977)— — 
Total ES$26,166 (4,213)(16,178)$5,775 $23,604 (4,213)(9,728)$9,663 
NJNG Contracts
Physical commodity$43 (3)— $40 $488 (3)— $485 
Financial commodity6,110 (20)— 6,090 20 (20)— — 
Total NJNG$6,153 (23)— $6,130 $508 (23)— $485 
(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.

ES 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 ES, 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 derivativesAmount of gain (loss) recognized
in income on derivatives
Three Months EndedSix Months Ended
March 31,March 31,
Derivatives not designated as hedging instruments:2024202320242023
ES:
Physical commodity contractsOperating revenues$(3,651)$7,208 $10,379 $17,246 
Physical commodity contractsNatural gas purchases(1,424)(124)(2,010)(794)
Financial commodity contractsNatural gas purchases(2,459)29,863 15,623 71,474 
Total unrealized and realized (loss) gain$(7,534)$36,947 $23,992 $87,926 
NJNG’s derivative contracts are part of the Company's risk management activities that relate to its natural gas purchases and BGSS incentive programs. At settlement, the resulting gains and/or losses are payable to or recoverable from utility customers and are deferred in regulatory assets or liabilities resulting in no impact to earnings. The following table reflects the gains (losses) associated with NJNG's derivative instruments for the periods set forth below:
Three Months EndedSix Months Ended
March 31,March 31,
(Thousands)2024202320242023
NJNG:
Physical commodity contracts$(3,920)$(203)$(4,990)$(28,234)
Financial commodity contracts(3,142)(38,294)1,190 (69,957)
Total unrealized and realized loss$(7,062)$(38,497)$(3,800)$(98,191)

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 $0.3M were reclassified during both the three months ended March 31, 2024 and 2023, and pre-tax losses of $0.7M were reclassified during both the six months ended March 31, 2024 and 2023.

NJNG and ES had the following outstanding long (short) derivatives as of:
Natural Gas DistributionEnergy Services
Volumes (Bcf)FuturesPhysical CommodityFuturesPhysical Commodity
March 31, 202423.85.0(3.8)(3.2)
September 30, 202332.112.1(6.9)0.2

Not included in the above table are 1.4M and 1.3M SRECs that were open as of March 31, 2024 and September 30, 2023, 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 NJNG and ES. The balances by reporting segment are as follows:
(Thousands)Balance Sheet LocationMarch 31,
2024		September 30,
2023
NJNGRestricted broker margin accounts-current assets$4,969 $5,915 
ESRestricted broker margin accounts-current assets$14,341 $14,881 
Restricted broker margin accounts-current liabilities$4,689 $8,029 

Wholesale Credit Risk

NJNG, ES, CEV and S&T 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, 2024. 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 CEV residential solar installations.
(Thousands)Gross Credit Exposure
Investment grade$113,150 
Noninvestment grade9,134 
Internally rated investment grade19,988 
Internally rated noninvestment grade22,477 
Total$164,749 

Conversely, certain of NJNG's and ES' derivative instruments are linked to agreements containing provisions that would require cash collateral payments from the Company if certain events occur. These provisions vary based upon the terms in individual counterparty agreements and can result in cash payments if NJNG's credit rating were to fall below its current level. Specifically, most, but not all, of these additional payments will be triggered if NJNG's debt is downgraded by the major credit agencies, regardless of investment grade status. In addition, some of these agreements include threshold amounts that would result in additional collateral payments if the values of derivative liabilities were to exceed the maximum values provided for in relevant counterparty agreements. Other provisions include payment features that are not specifically linked to ratings but are based on certain financial metrics.

Collateral amounts associated with any of these conditions are determined based on a sliding scale and are contingent upon the degree to which the Company's credit rating and/or financial metrics deteriorate, and the extent to which liability amounts exceed applicable threshold limits. There was approximately $1.4M and $0.1M of derivative instruments with credit-risk-related contingent features that were in a liability position for which collateral is required as of March 31, 2024 and September 30, 2023, respectively. These amounts differ from the respective net derivative liabilities reflected on the Unaudited Condensed Consolidated Balance Sheets because the agreements also include clauses, commonly known as “Rights of Offset,” that would permit the Company to offset its derivative assets against its derivative liabilities for determining additional collateral to be posted, as previously discussed.
v3.24.1.u1
FAIR VALUE
 6 Months Ended
Mar. 31, 2024
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,
2024		September 30,
2023
Carrying value (1) (2)
$2,567,845 $2,587,845 
Fair market value$2,218,977 $2,106,536 
(1)Excludes NJNG's debt issuance costs of $10.0M and $9.8M as of March 31, 2024 and September 30, 2023, respectively.
(2)Excludes NJR's debt issuance costs of $3.3M and $3.7M as of March 31, 2024 and September 30, 2023, respectively.

The Company enters into sale leaseback transactions for certain commercial solar assets and natural gas meters. These transactions are recorded within long-term debt on the Unaudited Condensed Consolidated Balance Sheets. The carrying value of solar sale leasebacks was $284.2M and $278.4M and the estimated fair value was $282.1M and $268.1M as of March 31, 2024 and September 30, 2023, respectively. The carrying value of the natural gas meter sale leasebacks was $36.0M and $31.4M and the estimated fair value of certain natural gas meter sale leasebacks amounted to $28.3M and $20.9M as of March 31, 2024 and September 30, 2023, 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, 2024, 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:
Fair Value HierarchyDescription of Fair Value LevelFair Value Technique
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 2Other 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 3Inputs derived from a significant amount of unobservable market dataThese 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 AssetsSignificant Other Observable InputsSignificant Unobservable Inputs
(Thousands)(Level 1)(Level 2)(Level 3)Total
As of March 31, 2024
Assets:
Physical commodity contracts$— $2,111 $— $2,111 
Financial commodity contracts12,855 — — 12,855 
Money market funds56 — — 56 
Other2,954 — — 2,954 
Total assets at fair value$15,865 $2,111 $— $17,976 
Liabilities:
Physical commodity contracts$— $19,676 $— $19,676 
Financial commodity contracts4,840 — — 4,840 
Total liabilities at fair value$4,840 $19,676 $— $24,516 

Quoted Prices in Active Markets for Identical AssetsSignificant Other Observable InputsSignificant Unobservable Inputs
(Thousands)(Level 1)(Level 2)(Level 3)Total
As of September 30, 2023
Assets:
Physical commodity contracts$— $7,054 $— $7,054 
Financial commodity contracts25,265 — — 25,265 
Money market funds145 — — 145 
Other2,641 — — 2,641 
Total assets at fair value$28,051 $7,054 $— $35,105 
Liabilities:
Physical commodity contracts$— $21,115 $— $21,115 
Financial commodity contracts2,997 — — 2,997 
Total liabilities at fair value$2,997 $21,115 $— $24,112 
v3.24.1.u1
INVESTMENTS IN EQUITY INVESTEES
 6 Months Ended
Mar. 31, 2024
Investments, All Other Investments [Abstract]  
INVESTMENTS IN EQUITY INVESTEES
7. INVESTMENTS IN EQUITY INVESTEES

The Company holds a 50% 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 $101.8M and $104.1M as of March 31, 2024 and September 30, 2023, respectively, which include loans with a total outstanding principal balance of $70.4M for both periods. On October 1, 2023, the Company entered into an Amended and Restated Loan Agreement with Steckman Ridge, which extends the existing loan agreement and moved from London Interbank Offered Rate to Secured Overnight Financing Rate. The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2027.

NJNG and ES 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.
v3.24.1.u1
EARNINGS PER SHARE
 6 Months Ended
Mar. 31, 2024
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 EndedSix Months Ended
March 31,March 31,
(Thousands, except per share amounts)2024202320242023
Net income, as reported$120,812 $110,247 $210,223 $226,168 
Basic earnings per share
Weighted average shares of common stock outstanding-basic98,377 96,893 98,123 96,689 
Basic earnings per common share$1.23$1.14$2.14$2.34
Diluted earnings per share
Weighted average shares of common stock outstanding-basic98,377 96,893 98,123 96,689 
Incremental shares (1)
725 663 716 657 
Weighted average shares of common stock outstanding-diluted99,102 97,556 98,839 97,346 
Diluted earnings per common share$1.22$1.13$2.13$2.32
(1)Incremental shares consist primarily of unvested stock awards and performance units, which are calculated using the treasury stock method.
v3.24.1.u1
DEBT
 6 Months Ended
Mar. 31, 2024
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 NJNG's commercial paper program and credit facility are as follows:
At end of period
(Thousands)As of dateTotal
borrowing capacity		Loans outstandingWeighted average interest rateRemaining borrowing capacityExpiration dates
NJR bank revolving credit facilities (1)
March 31, 2024$650,000 $146,150 6.52 %$494,519 (2)September 2027
September 30, 2023$650,000 $217,300 6.53 %$426,967 (2)September 2027
NJNG bank revolving credit facilities (3)
March 31, 2024$250,000 $50,000 5.48 %$199,269 (4)September 2027
September 30, 2023$250,000 $34,800 5.48 %$214,469 (4)September 2027
(1)Committed credit facilities, which require commitment fees of 0.10% on the unused amounts.
(2)Letters of credit outstanding total $9.3M at March 31, 2024 and $5.7M at September 30, 2023, which reduces the amount available by the same amount.
(3)Committed credit facilities, which require commitment fees of 0.075% on the unused amounts.
(4)Letters of credit outstanding total $0.7M at both March 31, 2024 and September 30, 2023, 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.
Long-term Debt

NJNG

In September 2023, NJNG entered into a Note Purchase Agreement for $100M aggregate principal amount of its senior notes consisting of $50M of 5.56% senior notes due September 28, 2033, which closed on September 28, 2023, and $50M of 5.85% senior notes due October 30, 2053, which closed on October 30, 2023.
NJNG received $8.8M and $8.4M during the six months ended March 31, 2024 and 2023, respectively, in connection with the sale leaseback of its natural gas meters. NJNG records the sale leaseback as a financing obligation for accounting purposes and has the option to purchase the meters back at fair value upon expiration of the lease.

Clean Energy Ventures

CEV received proceeds of $24.4M and $61.8M during the six months ended March 31, 2024 and 2023, respectively, in connection with the sale leaseback of commercial solar assets. CEV records the sale leaseback as a financing obligation for accounting purposes and continues to operate the solar assets, including related expenses, retains the revenue generated from SRECs, TRECs and energy sales, and has the option to renew the lease or repurchase the assets sold at the end of the lease term.
v3.24.1.u1
EMPLOYEE BENEFIT PLANS
 6 Months Ended
Mar. 31, 2024
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS
10. EMPLOYEE BENEFIT PLANS

Pension and Other Postemployment Benefit Plans

In January 2024, the Company announced changes to its postretirement medical benefits plan. Beginning on January 1, 2025, the Company will replace the existing retiree medical coverage for certain eligible employees age 65 and older and their Medicare-eligible dependents with an employer funded Health Reimbursement Arrangement. Medicare-eligible participants may use the Health Reimbursement Arrangement towards the purchase of supplemental insurance coverage and for other qualified medical expenses. The liability associated with postretirement medical benefits was remeasured as of January 1, 2024, and the expense for the remainder of fiscal 2024 will be recorded using updated assumptions and actuarial calculations. The plan amendment will be amortized over approximately 8 years, which is the average remaining service to retirement for all plan participants.
The following summarizes the changes in the funded status of the plan and the related liabilities recognized on the Consolidated Balance Sheets:
OPEB
(Thousands)January 1, 2024September 30, 2023
Change in Benefit Obligation
Benefit obligation at beginning of period$203,406 $173,217 
Service cost642 2,471 
Interest cost2,902 9,146 
Plan amendments(81,283)— 
Plan participants’ contributions (1)
— 552 
Actuarial loss26,871 25,363 
Benefits paid, net of retiree subsidies received(1,614)(7,343)
Benefit obligation at end of period$150,924 $203,406 
Change in plan assets
Fair value of plan assets at beginning of period$106,783 $99,736 
Actual return on plan assets8,995 9,826 
Employer contributions3,181 4,192 
Benefits paid, net of plan participants’ contributions (1)
(1,612)(6,971)
Fair value of plan assets at end of period$117,347 $106,783 
Funded status$(33,577)$(96,623)
Amounts recognized on Consolidated Balance Sheets
Postemployment employee (liability)
Current$(1,613)$(4,201)
Noncurrent(31,964)(92,422)
Total$(33,577)$(96,623)
(1)Employees hired prior to July 1, 1998, were eligible to elect an additional participant contribution to enhance their benefits. Contributions made during the periods were immaterial.
The following table summarizes the amounts recognized in regulatory assets and accumulated other comprehensive income (loss):
Regulatory AssetsAccumulated Other Comprehensive Income (Loss)
(Thousands)OPEB
Balance at September 30, 2023$30,046 $5,498 
Amounts arising during the period:
Net actuarial loss12,706 7,027 
Prior service cost(61,244)(20,039)
Amounts amortized to net periodic costs:
Net actuarial loss(355)(141)
Balance at January 1, 2024$(18,847)$(7,655)

The amounts in regulatory assets and accumulated other comprehensive income (loss) not yet recognized as components of net periodic benefit cost were as follows:
Regulatory AssetsAccumulated Other Comprehensive Income (Loss)
OPEB
(Thousands)January 1, 2024September 30, 2023January 1, 2024September 30, 2023
Net actuarial loss$42,397 $30,046 $12,384 $5,498 
Prior service cost(61,244)— (20,039)— 
Total$(18,847)$30,046 $(7,655)$5,498 

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:
PensionOPEB
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
March 31,March 31,March 31,March 31,
(Thousands)20242023202420232024202320242023
Service cost$1,244 $1,351 $2,488 $2,701 $255 $618 $897 $1,236 
Interest cost4,060 3,793 8,120 7,587 1,808 2,287 4,710 4,573 
Expected return on plan assets(5,086)(4,993)(10,173)(9,986)(2,020)(1,681)(3,878)(3,361)
Recognized actuarial loss30 75 59 150 1,255 — 1,751 — 
Prior service cost (credit) amortization15 26 31 51 (3,337)— (3,337)— 
Net periodic benefit cost$263 $252 $525 $503 $(2,039)$1,224 $143 $2,448 

The Company does not expect to make additional contributions to fund the pension plans during fiscal 2024 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, 2024 and 2023.
Assumptions

The weighted average assumptions used to determine the Company’s obligations are as follows:
OPEB
January 1, 2024September 30, 2023
Obligations:
Discount rate
5.02%/5.01%
(1)
5.97%/5.94%
(1)
Compensation increase
3.00%/3.50%
(1)
3.00%/3.50%
(1)
(1)Percentages for represented and non-represented plans, respectively.

When measuring its projected benefit obligations, the Company uses an aggregate discount rate at which its obligation could be effectively settled. The Company determines a single weighted average discount rate based on a yield curve comprised of rates of return on a population of high quality debt issuances (AA- or better) whose cash flows (via coupons or maturities) match the timing and amount of its expected future benefit payments. The Company measures its service and interest costs using a disaggregated, or spot rate, approach. The Company applies the duration-specific spot rates from the full yield curve, as of the measurement date, to each year’s future benefit payments, which aligns the timing of the plans’ separate future cash flows to the corresponding spot rates on the yield curve.
v3.24.1.u1
INCOME TAXES
 6 Months Ended
Mar. 31, 2024
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 21.7% and 22.1%, for the six months ended March 31, 2024 and 2023, 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, 2024 and 2023, discrete items totaled approximately $(1.2)M and $(0.6)M, respectively, related primarily to excess tax benefits associated with the vesting of share-based awards. NJR’s actual reported effective tax rates were 21.3% and 21.9% during the six months ended March 31, 2024 and 2023, respectively.

Other Tax Items

As of March 31, 2024 and September 30, 2023, the Company has tax credit carryforwards of approximately $179.5M and $191.2M, 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 2037.
As of March 31, 2024 and September 30, 2023, the Company has state income tax net operating losses of approximately $609.1M and $631.2M, respectively. These state net operating losses have carry-forward periods dictated by the state in which they were incurred and range from seven to 20 years, with the majority expiring after 2036. The Company expects to utilize this entire carryforward prior to expiration, except for state income tax attributes for which the Company had a valuation allowance of approximately $0.7M as of both March 31, 2024 and September 30, 2023, for which the Company could not conclude were realizable on a more-likely-than-not basis.

In March 2024, the State of New Jersey commenced an examination of the Company's Corporate Business Tax return for NJR and certain subsidiaries for the fiscal periods ending September 30, 2019 through September 30, 2022.
v3.24.1.u1
LEASES
 6 Months Ended
Mar. 31, 2024
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 are 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 to 20 years. The Company’s office leases vary in duration, ranging from two to 11 years and may or may not include extension or early purchase options. The Company’s meter lease terms are between six and 10 years with purchase options available prior to the end of the term. Equipment leases include general office equipment that also vary in duration, with an average term of nine years. The Company's storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated. The Company's lease terms may include options to extend, purchase the leased asset or terminate a lease and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised. The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, 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 EndedSix Months Ended
March 31,March 31,
(Thousands)Income Statement Location2024202320242023
Operating lease cost (1)
Operation and maintenance$2,524 $2,307 $5,064 $4,724 
Finance lease cost
Amortization of right-of-use assetsDepreciation and amortization552 540 1,080 1,025 
Interest on lease liabilitiesInterest expense, net of capitalized interest236 298 488 533 
Total finance lease cost788 838 1,568 1,558 
Variable lease costOperation and maintenance246 272 446 495 
Total lease cost$3,558 $3,417 $7,078 $6,777 
(1)Net of capitalized costs.

The following table presents supplemental cash flow information related to leases:
Six Months Ended
March 31,
(Thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases$4,199 $3,652 
Operating cash flows for finance leases$488 $533 
Financing cash flows for finance leases$3,875 $3,577 

Assets obtained or modified through operating lease liabilities totaled approximately $2.6M and $0.3M during the three months ended March 31, 2024 and 2023, respectively, and totaled approximately $4.1M and $0.4M during the six months ended March 31, 2024 and 2023, respectively.

Assets obtained or modified through other leases, including those which are finance leases and financing transactions for accounting purposes, totaled $8.4M during the six months ended March 31, 2023. There were no assets obtained or modified through finance leases during the three and six months ended March 31, 2024, and the three months ended March 31, 2023.

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 LocationMarch 31,
2024		September 30,
2023
Assets
Noncurrent
Operating lease assetsOperating lease assets$177,176 $175,740 
Finance lease assetsUtility plant27,168 28,248 
Total lease assets$204,344 $203,988 
Liabilities
Current
Operating lease liabilitiesOperating lease liabilities$4,780 $4,772 
Finance lease liabilitiesCurrent maturities of long-term debt8,816 8,477 
Noncurrent
Operating lease liabilitiesOperating lease liabilities150,971 148,023 
Finance lease liabilitiesLong-term debt18,661 22,875 
Total lease liabilities$183,228 $184,147 
For operating lease assets and liabilities, the weighted average remaining lease term was 28.6 years and 29.2 years for and the weighted average discount rate used in the valuation over the remaining lease term was 3.6% and 3.5% for March 31, 2024 and September 30, 2023, respectively. For finance lease assets and liabilities, the weighted average remaining lease term was 3.4 years and 3.3 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.3% and 2.7% as of March 31, 2024 and September 30, 2023, respectively.
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 are 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 to 20 years. The Company’s office leases vary in duration, ranging from two to 11 years and may or may not include extension or early purchase options. The Company’s meter lease terms are between six and 10 years with purchase options available prior to the end of the term. Equipment leases include general office equipment that also vary in duration, with an average term of nine years. The Company's storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated. The Company's lease terms may include options to extend, purchase the leased asset or terminate a lease and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised. The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, 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 EndedSix Months Ended
March 31,March 31,
(Thousands)Income Statement Location2024202320242023
Operating lease cost (1)
Operation and maintenance$2,524 $2,307 $5,064 $4,724 
Finance lease cost
Amortization of right-of-use assetsDepreciation and amortization552 540 1,080 1,025 
Interest on lease liabilitiesInterest expense, net of capitalized interest236 298 488 533 
Total finance lease cost788 838 1,568 1,558 
Variable lease costOperation and maintenance246 272 446 495 
Total lease cost$3,558 $3,417 $7,078 $6,777 
(1)Net of capitalized costs.

The following table presents supplemental cash flow information related to leases:
Six Months Ended
March 31,
(Thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases$4,199 $3,652 
Operating cash flows for finance leases$488 $533 
Financing cash flows for finance leases$3,875 $3,577 

Assets obtained or modified through operating lease liabilities totaled approximately $2.6M and $0.3M during the three months ended March 31, 2024 and 2023, respectively, and totaled approximately $4.1M and $0.4M during the six months ended March 31, 2024 and 2023, respectively.

Assets obtained or modified through other leases, including those which are finance leases and financing transactions for accounting purposes, totaled $8.4M during the six months ended March 31, 2023. There were no assets obtained or modified through finance leases during the three and six months ended March 31, 2024, and the three months ended March 31, 2023.

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 LocationMarch 31,
2024		September 30,
2023
Assets
Noncurrent
Operating lease assetsOperating lease assets$177,176 $175,740 
Finance lease assetsUtility plant27,168 28,248 
Total lease assets$204,344 $203,988 
Liabilities
Current
Operating lease liabilitiesOperating lease liabilities$4,780 $4,772 
Finance lease liabilitiesCurrent maturities of long-term debt8,816 8,477 
Noncurrent
Operating lease liabilitiesOperating lease liabilities150,971 148,023 
Finance lease liabilitiesLong-term debt18,661 22,875 
Total lease liabilities$183,228 $184,147 
For operating lease assets and liabilities, the weighted average remaining lease term was 28.6 years and 29.2 years for and the weighted average discount rate used in the valuation over the remaining lease term was 3.6% and 3.5% for March 31, 2024 and September 30, 2023, respectively. For finance lease assets and liabilities, the weighted average remaining lease term was 3.4 years and 3.3 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.3% and 2.7% as of March 31, 2024 and September 30, 2023, respectively.
v3.24.1.u1
COMMITMENTS AND CONTINGENT LIABILITIES
 6 Months Ended
Mar. 31, 2024
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 $227.1M 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, ES enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by ES to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one to 10 years. Demand charges are established by interstate storage and pipeline operators and are regulated by FERC. These demand charges represent commitments to pay storage providers or pipeline companies for the right to store and/or transport natural gas utilizing their respective assets.

Commitments as of March 31, 2024, for natural gas purchases and future demand fees for the next five fiscal year periods are as follows:
(Thousands)20242025202620272028Thereafter
ES:
Natural gas purchases$11,801 $1,964 $— $— $— $— 
Storage demand fees8,685 15,743 11,413 5,440 3,491 6,780 
Pipeline demand fees31,418 55,870 42,117 25,837 15,301 17,011 
Sub-total ES$51,904 $73,577 $53,530 $31,277 $18,792 $23,791 
NJNG:
Natural gas purchases$6,546 $— $— $— $— $— 
Storage demand fees22,541 33,105 15,963 11,155 4,874 — 
Pipeline demand fees77,558 202,212 143,787 129,216 113,962 966,909 
Sub-total NJNG$106,645 $235,317 $159,750 $140,371 $118,836 $966,909 
Total$158,549 $308,894 $213,280 $171,648 $137,628 $990,700 

Certain pipeline demand fees totaling approximately $4.0M per year, for which ES is the responsible party, are being paid for by the counterparty to a capacity release transaction beginning in November 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 is 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 estimated at the time of the most recent review that total future expenditures at the former MGP sites for which it is responsible, including potential liabilities for natural resource damages that might be brought by the NJDEP for alleged injury to groundwater or other natural resources concerning these sites, will range from approximately $137.3M to $201.5M. 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, 2024, NJNG recorded a MGP remediation liability and a corresponding regulatory asset of approximately $157.8M 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.

NJNG recovers its remediation expenditures, including carrying costs, over rolling seven-year periods pursuant to a RAC approved by the BPU. As of March 31, 2024, $69.2M 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.
v3.24.1.u1
REPORTING SEGMENT AND OTHER OPERATIONS DATA
 6 Months Ended
Mar. 31, 2024
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: NJNG consists of regulated energy and off-system, capacity and storage management operations; CEV consists of capital investments in clean energy projects; ES consists of unregulated wholesale and retail energy operations; S&T consists of the Company’s investments in natural gas transportation and storage facilities; the HSO 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 during the three months ended March 31, 2024 and 2023, are as follows:
Segments
(Thousands)NJNGCEVESS&TSubtotalHSOElimsTotal
2024
Operating revenues
External customers$462,863 9,325 148,604 (1)22,369 $643,161 14,752 — $657,913 
Intercompany$338 — (3,742)673 $(2,731)153 2,578 $— 
Depreciation and amortization$27,464 6,931 56 (2)6,218 $40,669 271 (865)$40,075 
Interest income (3)
$517 — 143 2,518 $3,178 332 (1,474)$2,036 
Interest expense, net of capitalized interest$14,850 7,182 3,513 5,868 $31,413 208 — $31,621 
Income tax provision (benefit)$24,476 (1,594)5,289 619 $28,790 520 4,637 $33,947 
Equity in earnings of affiliates$— — — 85 $85 — 653 $738 
Net financial earnings (loss)$107,095 (5,616)37,644 1,981 $141,104 384 (2,912)$138,576 
Capital expenditures$97,710 11,317 — 13,523 $122,550 130 — $122,680 
2023
Operating revenues
External customers$400,500 14,406 196,553 (1)19,303 $630,762 13,265 — $644,027 
Intercompany$338 — 177 1,584 $2,099 183 (2,282)$— 
Depreciation and amortization$25,319 6,465 62 (2)6,020 $37,866 224 — $38,090 
Interest income (3)
$376 — 380 1,684 $2,440 734 (938)$2,236 
Interest expense, net of capitalized interest$13,879 7,316 2,749 6,128 $30,072 189 — $30,261 
Income tax provision (benefit)$23,924 (3,005)5,916 596 $27,431 488 2,667 $30,586 
Equity in earnings of affiliates$— — — 977 $977 — 154 $1,131 
Net financial earnings (loss)$100,697 (9,379)21,125 2,450 $114,893 813 (3,396)$112,310 
Capital expenditures$92,600 13,706 — 10,122 $116,428 760 — $117,188 
(1)Includes sales to Canada for the ES 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.
Information related to the Company's various reporting segments and other operations during the six months ended March 31, 2024 and 2023, are as follows:
Segments
(Thousands)NJNGCEVESS&TSubtotalHSOElimsTotal
2024
Operating revenues
External customers$755,956 44,620 249,405 (1)45,556 $1,095,537 29,586 — $1,125,123 
Intercompany$675 — (4,875)1,348 $(2,852)153 2,699 $— 
Depreciation and amortization$54,381 13,853 113 (2)12,380 $80,727 500 (865)$80,362 
Interest income (3)
$1,095 — 271 4,888 $6,254 688 (2,880)$4,062 
Interest expense, net of capitalized interest$29,601 14,629 6,639 11,801 $62,670 424 — $63,094 
Income tax provision$35,132 1,537 12,800 1,651 $51,120 468 5,295 $56,883 
Equity in earnings of affiliates$— — — 1,078 $1,078 — 1,320 $2,398 
Net financial earnings (loss)$158,539 4,906 45,475 5,621 $214,541 (216)(3,305)$211,020 
Capital expenditures$177,425 37,083 — 21,308 $235,816 1,486 — $237,302 
2023
Operating revenues
External customers$757,909 27,198 509,952 (1)45,017 $1,340,076 27,518 — $1,367,594 
Intercompany$675 — 8,560 2,708 $11,943 196 (12,139)$— 
Depreciation and amortization$50,209 12,041 119 (2)11,962 $74,331 442 — $74,773 
Interest income (3)
$789 — 649 3,085 $4,523 1,388 (1,716)$4,195 
Interest expense, net of capitalized interest$27,588 13,211 5,807 12,835 $59,441 311 — $59,752 
Income tax provision (benefit)$38,307 (4,842)25,980 2,539 $61,984 705 875 $63,564 
Equity in earnings of affiliates$— — — 1,886 $1,886 — 191 $2,077 
Net financial earnings (loss)$155,361 (12,961)73,658 8,693 $224,751 784 (2,941)$222,594 
Capital expenditures$174,671 57,699 — 29,841 $262,211 900 — $263,111 
(1)Includes sales to Canada for the ES 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.

The Company's assets for the various reporting segments and business operations are detailed below:
SegmentsIntercompany
(Thousands)NJNGCEVESS&TSubtotalHSO
Assets (1)
Total
March 31, 2024$4,527,458 1,124,392 104,094 1,012,899 $6,768,843 171,594 (293,060)$6,647,377 
September 30, 2023$4,414,829 1,128,577 123,775 1,011,959 $6,679,140 171,275 (312,919)$6,537,496 
(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 other business operations, is the chief operating decision maker of the Company. A reconciliation of consolidated NFE to consolidated net income is as follows:
Three Months EndedSix Months Ended
March 31,March 31,
(Thousands)2024202320242023
Net financial earnings$138,576 $112,310 $211,020 $222,594 
Less:
Unrealized loss (gain) on derivative instruments and related transactions25,457 13,971 20,057 (17,532)
Tax effect(6,049)(3,320)(4,767)4,167 
Effects of economic hedging related to natural gas inventory(2,845)(11,203)(19,073)12,769 
Tax effect676 2,662 4,533 (3,035)
Gain on equity method investment— (200)— (200)
Tax effect— 50 — 50 
NFE tax adjustment525 103 47 207 
Net income$120,812 $110,247 $210,223 $226,168 

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. 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.
v3.24.1.u1
RELATED PARTY TRANSACTIONS
 6 Months Ended
Mar. 31, 2024
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
15. RELATED PARTY TRANSACTIONS

Effective April 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 $9.3M 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.
ES 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, 2024, ES entered into transactions with Steckman Ridge for varying terms, all of which expire by March 31, 2027.

Demand fees, net of eliminations, associated with Steckman Ridge were as follows:
Three Months EndedSix Months Ended
March 31,March 31,
(Thousands)2024202320242023
NJNG$1,585 $1,615 $3,240 $3,270 
ES214 155 438 327 
Total$1,799 $1,770 $3,678 $3,597 

The following table summarizes demand fees payable to Steckman Ridge as of:
(Thousands)March 31,
2024		September 30,
2023
NJNG$778 $775 
ES81 84 
Total$859 $859 

NJNG and ES enter 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 ES. NJNG and ES had one AMA, which expired on March 31, 2024, and was not renewed.

NJNG entered into two transportation agreements with Adelphia, each for committed capacity of 130,000 Dekatherms per day. The first is for 5 years in Zone South with an expiration date of August 8, 2027, and the second is for 15 years in Zone North, which began on November 1, 2023, with an expiration date of October 31, 2038.

ES had a 5-year agreement for 3 Bcf of firm storage capacity with Leaf River, that expired on March 31, 2024, the effects of which are eliminated in consolidation, and was not renewed.

NJNG and CEV entered into a 15-year sublease and PPA related to an onsite solar array and the related energy output at the Company’s headquarters in Wall, New Jersey, with an expiration date of March 1, 2036, the effects of which are immaterial to the consolidated financial statements.

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, with an expiration date of July 1, 2037, the effects of which are eliminated in consolidation.

NJNG and CEV entered into a 20-year sublease and PPA related to an onsite solar array and the related energy output at the Company’s liquefied natural gas plant in Howell, New Jersey, with an expiration date of June 1, 2042, the effects of which are immaterial to the consolidated financial statements.

The intercompany profits for certain transactions between NJNG and ES and NJNG and Adelphia are not eliminated in accordance with ASC 980, Regulated Operations.
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure            
Net income $ 120,812 $ 89,411 $ 110,247 $ 115,921 $ 210,223 $ 226,168
v3.24.1.u1
Insider Trading Arrangements
 3 Months Ended 6 Months Ended
Mar. 31, 2024
shares
Mar. 31, 2024
shares
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On February 23, 2024, Stephen D. Westhoven, our President and Chief Executive Officer and a director, adopted a Rule 10b5-1 trading arrangement, which is intended to satisfy the affirmative defense of Rule 10b5-1(c). The Rule 10b5-1 trading arrangement provides for sales of up to 50,000 shares of our common stock beginning on May 23, 2024 until December 31, 2024, or once all of the shares have been sold. Actual sale transactions will be disclosed publicly in filings with the SEC in accordance with applicable securities laws, rules and regulations.
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Stephen D. Westhoven [Member]    
Trading Arrangements, by Individual    
Name Stephen D. Westhoven  
Title President and Chief Executive Officer and a director  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date February 23, 2024  
Arrangement Duration 222 days  
Aggregate Available 50,000 50,000
v3.24.1.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 6 Months Ended
Mar. 31, 2024
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, 2023 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 2023 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, 2024. 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, lease liabilities, 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.

CEV 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. The Administratively Determined Incentive Program provides administratively set incentives for net metered residential projects and net metered non-residential projects of 5 MW or less. RECs generated through the production of electricity under this program are known as SREC IIs.

TRECs and SREC IIs generated are required to be purchased monthly by a REC program administrator as appointed by the BPU. Revenue for TRECs and SREC IIs are recognized upon generation and are transferred monthly based upon metered solar electricity activity.

Revenues for ES 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. ES also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues.

During December 2020, ES 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 in November 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. ES recognized operating revenue of $9.5M during both the three months ended March 31, 2024 and 2023, and $19.0M and $29.5M during the six months ended March 31, 2024 and 2023, respectively, on the Unaudited Condensed Consolidated Statements of Operations. Amounts received in excess of revenue totaling $107.2M and $58.7M are included in deferred revenue on the Unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023, respectively.

S&T 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

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.
Loans Receivable
Loans Receivable
NJNG currently provides loans, with terms ranging from two to 10 years, to customers that elect to purchase and install certain energy-efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at fair value on the Unaudited Condensed Consolidated Balance Sheets.
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. As NJNG retains control of the natural gas meters, these arrangements do not qualify as a sale. NJNG uses the financing method to account for the transactions. 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 CEV is compensated for the transfer of the related tax attributes. Accordingly, CEV 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.
Reclassification
Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation. Deferred income taxes and postemployment employee benefit assets previously classified within other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets have been reclassified to their own categories. Intangible assets, net previously classified in its own category on the Unaudited Condensed Consolidated Balance Sheets has been reclassified into other noncurrent assets. Other noncurrent assets and other noncurrent liabilities previously classified in their own categories on the Unaudited Condensed Consolidated Statements of Cash Flow have been combined into one category.
Recently Adopted Updates to the Accounting Standards Codification
Recently Adopted 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 was effective for the Company beginning October 1, 2023, and was applied on a prospective basis to new acquisitions following the date of adoption. As the Company has not executed a transaction that would qualify as a business combination, there was no 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 was effective for the Company beginning October 1, 2023. As the Company does not currently apply hedge accounting to any of its risk management activities, there was no 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 was effective for the Company beginning October 1, 2023. Since the Company has not experienced a troubled debt restructuring, 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

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 will elect to apply it on a prospective basis. At this time, the Company does not have leases that are subject to this amendment, and therefore it would only impact the Company upon adoption if, in the future, it entered into such transactions.

Business Combinations

In August 2023, the FASB issued ASU No. 2023-05, an amendment to ASC 805, Business Combinations, which addresses how a joint venture should recognize contributions received upon its formation. Joint ventures must account for initial assets and liabilities received at fair value on the date the joint venture is formed. The guidance is effective for the Company for joint ventures formed beginning January 1, 2025, and the Company can elect to apply it either prospectively or retrospectively back to a joint venture’s formation date provided adequate information is available. Early adoption is permitted. This amendment would only impact the Company upon adoption if, in the future, it entered into an applicable transaction.
Segment Reporting

In November 2023, the FASB issued ASU No. 2023-07, an amendment to ASC 280, Segment Reporting, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The update requires entities to disclosure significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss, and it enhances interim disclosure requirements to conform with annual requirements. This update becomes effective for the Company on October 1, 2024 for the first annual period and on October 1, 2025 for the interim periods. It will be applied retrospectively for the enhanced segment disclosure requirements to all periods presented, with early adoption permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption.

Income Taxes
In December 2023, the FASB issued ASU No. 2023-09, an amendment to ASC 740, Income Taxes, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation and income taxes paid. It will provide investors more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance is effective for the Company on October 1, 2025, and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the amendment to understand the impacts 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

ES 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 ES, on the Unaudited Condensed Consolidated Statements of Operations as unrealized gains or losses. For ES 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.

ES 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. ES 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 ES 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. ES 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. 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 CEV 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:
Fair Value HierarchyDescription of Fair Value LevelFair Value Technique
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 2Other 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 3Inputs derived from a significant amount of unobservable market dataThese 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 are 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 to 20 years. The Company’s office leases vary in duration, ranging from two to 11 years and may or may not include extension or early purchase options. The Company’s meter lease terms are between six and 10 years with purchase options available prior to the end of the term. Equipment leases include general office equipment that also vary in duration, with an average term of nine years. The Company's storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated. The Company's lease terms may include options to extend, purchase the leased asset or terminate a lease and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised. The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, 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.
v3.24.1.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 6 Months Ended
Mar. 31, 2024
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,
2024		September 30,
2023		March 31,
2023
Balance Sheet
Cash and cash equivalents$5,036 $954 $27,095 
Restricted cash in other noncurrent assets$710 $563 $461 
Statements of Cash Flow
Cash, cash equivalents and restricted cash$5,746 $1,517 $27,556 
Schedule of Natural Gas in Storage
The following table summarizes natural gas in storage, at average cost by segment as of:
March 31, 2024September 30, 2023
($ in thousands)Natural Gas in StorageBcfNatural Gas in StorageBcf
NJNG$60,539 9.2 $175,025 29.1 
ES20,457 11.3 24,476 14.6 
Total$80,996 20.5 $199,501 43.7 
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,
2024		September 30,
2023
Balance Sheets
Utility plant, at cost$88,234 $51,282 
Construction work in progress$45,573 $55,012 
Nonutility plant and equipment, at cost$344 $344 
Accumulated depreciation and amortization, utility plant$(9,728)$(7,480)
Accumulated depreciation and amortization, nonutility plant and equipment$(42)$(36)
Software costs$9,734 $8,375 

Three Months EndedSix Months Ended
March 31,March 31,
Statements of Operations2024202320242023
Operation and maintenance$2,674 $3,886 $5,927 $7,638 
Depreciation and amortization$1,265 $957 $2,254 $1,828 
Schedule of Accumulated Other Comprehensive Income (Loss)
The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the three months ended March 31, 2024 and 2023:
(Thousands)Cash Flow HedgesPostemployment Benefit ObligationTotal
Balance as of December 31, 2023$(7,005)$(2,559)$(9,564)
Other comprehensive income (loss), net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $(3,020), $(3,020), respectively
— 9,992 9,992 
Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(80), $112, $32, respectively
262 (368)(1)(106)
Net current-period other comprehensive income, net of tax of $(80), $(2,908), $(2,988), respectively
262 9,624 9,886 
Balance as of March 31, 2024$(6,743)$7,065 $322 
Balance as of December 31, 2022$(8,059)$3,537 $(4,522)
Other comprehensive income, net of tax
Amounts reclassified from accumulated other comprehensive income, net of tax of $(80), $(13), $(93)
264 41 (1)305 
Balance as of March 31, 2023$(7,795)$3,578 $(4,217)
(1)Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations.
The following table presents the changes in the components of accumulated other comprehensive income (loss), net of related tax effects during the six months ended March 31, 2024 and 2023:
(Thousands)Cash Flow HedgesPostemployment Benefit ObligationTotal
Balance as of September 30, 2023$(7,269)$(2,690)$(9,959)
Other comprehensive income (loss), net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $(3,020) and $(3,020), respectively
— 9,992 9,992 
Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(159), $72 and $(87), respectively
526 (237)(1)289 
Net current-period other comprehensive income, net of tax of $(159), $(2,948), $(3,107), respectively
526 9,755 10,281 
Balance as of March 31, 2024$(6,743)$7,065 $322 
Balance as of September 30, 2022$(8,322)$3,496 $(4,826)
Other comprehensive income, net of tax
Amounts reclassified from accumulated other comprehensive income, net of tax of $(159), $(25) and $(184), respectively
527 82 (1)609 
Balance as of March 31, 2023$(7,795)$3,578 $(4,217)
(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.
v3.24.1.u1
REVENUE (Tables)
 6 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of 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/
Operations		Performance ObligationDescription
NJNGNatural 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.
CEVCommercial solar electricity
CEV 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.
Revenue Recognized Over Time (continued):
Segment/
Operations		Performance ObligationDescription
CEVResidential solar electricity
CEV 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.
CEVRenewable energy certificates
Certain CEV 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 CEV 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.
ESNatural gas services
The performance obligation of ES is to provide the customer transportation, storage and asset management services on an as-needed basis. ES 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. ES 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.
S&T
Natural gas services
The performance obligation of S&T is to provide the customer with storage and transportation services. S&T 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.
HSOService 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:
ESNatural gas services
For a permanent release of pipeline capacity, the performance obligation of ES 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.
S&T
Natural gas services
The performance obligation of S&T is to provide the customer with storage and transportation services. S&T 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.
HSOInstallationsHome 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.
Schedule of 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, 2024 and 2023, are as follows:

(Thousands)NJNGCEVESS&THSOTotal
2024
Natural gas utility sales (1)
$371,019 — — — — $371,019 
Natural gas services— — 16,145 23,042 — 39,187 
Service contracts— — — — 9,071 9,071 
Installations and maintenance— — — — 5,834 5,834 
Renewable energy certificates— 2,672 — — — 2,672 
Electricity sales— 6,553 — — — 6,553 
Eliminations (2)
(338)— — (673)(153)(1,164)
Revenues from contracts with customers370,681 9,225 16,145 22,369 14,752 433,172 
Alternative revenue programs (3)
7,382 — — — — 7,382 
Derivative instruments84,800 100 (4)128,717 — — 213,617 
Eliminations (2)
— — 3,742 — — 3,742 
Revenues out of scope92,182 100 132,459 — — 224,741 
Total operating revenues$462,863 9,325 148,604 22,369 14,752 $657,913 
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 customers326,860 8,169 16,836 19,303 13,265 384,433 
Alternative revenue programs (3)
27,270 — — — — 27,270 
Derivative instruments46,370 6,237 (4)179,894 — — 232,501 
Eliminations (2)
— — (177)— — (177)
Revenues out of scope73,640 6,237 179,717 — — 259,594 
Total operating revenues$400,500 14,406 196,553 19,303 13,265 $644,027 
(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, 2024 and 2023, are as follows:

(Thousands)NJNGCEVESS&THSOTotal
2024
Natural gas utility sales (1)
$628,894 — — — — $628,894 
Natural gas services— — 32,413 46,904 — 79,317 
Service contracts— — — — 18,011 18,011 
Installations and maintenance— — — — 11,728 11,728 
Renewable energy certificates— 5,322 — — — 5,322 
Electricity sales— 13,267 — — — 13,267 
Eliminations (2)
(675)— — (1,348)(153)(2,176)
Revenues from contracts with customers628,219 18,589 32,413 45,556 29,586 754,363 
Alternative revenue programs (3)
4,845 — — — — 4,845 
Derivative instruments122,892 26,031 (4)212,117 — — 361,040 
Eliminations (2)
— — 4,875 — — 4,875 
Revenues out of scope127,737 26,031 216,992 — — 370,760 
Total operating revenues$755,956 44,620 249,405 45,556 29,586 $1,125,123 
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 customers614,690 17,075 44,684 45,017 27,518 748,984 
Alternative revenue programs (3)
23,805 — — — — 23,805 
Derivative instruments119,414 10,123 (4)473,828 — — 603,365 
Eliminations (2)
— — (8,560)— — (8,560)
Revenues out of scope143,219 10,123 465,268 — — 618,610 
Total operating revenues$757,909 27,198 509,952 45,017 27,518 $1,367,594 
(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, 2024 and 2023, are as follows:
(Thousands)NJNGCEVESS&THSOTotal
2024
Residential$287,824 3,229 — — 14,684 $305,737 
Commercial and industrial50,362 5,996 16,145 22,369 68 94,940 
Firm transportation30,680 — — — — 30,680 
Interruptible, off-tariff and other1,815 — — — — 1,815 
Revenues out of scope92,182 100 132,459 — — 224,741 
Total operating revenues$462,863 9,325 148,604 22,369 14,752 $657,913 
2023
Residential$247,623 3,204 — — 13,089 $263,916 
Commercial and industrial49,105 4,965 16,836 19,303 176 90,385 
Firm transportation29,368 — — — — 29,368 
Interruptible, off-tariff and other764 — — — — 764 
Revenues out of scope73,640 6,237 179,717 — — 259,594 
Total operating revenues$400,500 14,406 196,553 19,303 13,265 $644,027 

Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the six months ended March 31, 2024 and 2023, are as follows:
(Thousands)NJNGCEVESS&THSOTotal
2024
Residential$483,447 6,615 — — 29,487 $519,549 
Commercial and industrial86,121 11,974 32,413 45,556 99 176,163 
Firm transportation55,115 — — — — 55,115 
Interruptible, off-tariff and other3,536 — — — — 3,536 
Revenues out of scope127,737 26,031 216,992 — — 370,760 
Total operating revenues$755,956 44,620 249,405 45,556 29,586 $1,125,123 
2023
Residential$464,561 6,497 — — 27,269 $498,327 
Commercial and industrial92,900 10,578 44,684 45,017 249 193,428 
Firm transportation55,567 — — — — 55,567 
Interruptible, off-tariff and other1,662 — — — — 1,662 
Revenues out of scope143,219 10,123 465,268 — — 618,610 
Total operating revenues$757,909 27,198 509,952 45,017 27,518 $1,367,594 
Schedule of 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, 2024 and 2023, are as follows:
Customer Accounts ReceivableCustomers' Credit
(Thousands)BilledUnbilledBalances and Deposits
Balance as of September 30, 2023$97,540 $19,100 $44,910 
Increase (decrease)87,529 55,356 (20,032)
Balance as of March 31, 2024$185,069 $74,456 $24,878 
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 
Schedule of 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, 2024 and September 30, 2023:
(Thousands)NJNGCEVESS&THSOTotal
March 31, 2024
Customer accounts receivable
Billed$142,088 7,273 25,241 7,749 2,718 $185,069 
Unbilled69,904 4,552 — — — 74,456 
Customers' credit balances and deposits(24,860)— — (18)— (24,878)
Total$187,132 11,825 25,241 7,731 2,718 $234,647 
September 30, 2023
Customer accounts receivable
Billed$55,234 9,962 23,716 6,577 2,051 $97,540 
Unbilled10,784 8,316 — — — 19,100 
Customers' credit balances and deposits(44,898)— — (12)— (44,910)
Total$21,120 18,278 23,716 6,565 2,051 $71,730 
v3.24.1.u1
REGULATION (Tables)
 6 Months Ended
Mar. 31, 2024
Regulated Operations [Abstract]  
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,
2024		September 30,
2023
Regulatory assets-current
New Jersey Clean Energy Program$6,827 $15,804 
Conservation Incentive Program55,200 50,356 
Derivatives at fair value, net30,444 6,017 
Other current regulatory assets1,416 1,410 
Total current regulatory assets$93,887 $73,587 
Regulatory assets-noncurrent
Environmental remediation costs:
Expended, net of recoveries$69,229 $66,298 
Liability for future expenditures157,813 169,390 
Deferred income taxes42,626 41,667 
SAVEGREEN88,496 83,589 
Postemployment and other benefit costs7,936 55,274 
Cost of removal118,900 112,362 
Other noncurrent regulatory assets44,943 51,019 
Total noncurrent regulatory assets$529,943 $579,599 
Regulatory liability-current
Overrecovered natural gas costs$31,628 $30,637 
Total current regulatory liabilities$31,628 $30,637 
Regulatory liabilities-noncurrent
Tax Act impact (1)
$177,838 $180,347 
Other noncurrent regulatory liabilities438 111 
Total noncurrent regulatory liabilities$178,276 $180,458 
(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 are comprised of the following:
(Thousands)March 31,
2024		September 30,
2023
Total noncurrent regulatory assets$5,161 $5,231 
Total current regulatory liabilities$1,535 $1,650 
Schedule of Regulatory Liabilities
Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for NJNG are comprised of the following:
(Thousands)March 31,
2024		September 30,
2023
Regulatory assets-current
New Jersey Clean Energy Program$6,827 $15,804 
Conservation Incentive Program55,200 50,356 
Derivatives at fair value, net30,444 6,017 
Other current regulatory assets1,416 1,410 
Total current regulatory assets$93,887 $73,587 
Regulatory assets-noncurrent
Environmental remediation costs:
Expended, net of recoveries$69,229 $66,298 
Liability for future expenditures157,813 169,390 
Deferred income taxes42,626 41,667 
SAVEGREEN88,496 83,589 
Postemployment and other benefit costs7,936 55,274 
Cost of removal118,900 112,362 
Other noncurrent regulatory assets44,943 51,019 
Total noncurrent regulatory assets$529,943 $579,599 
Regulatory liability-current
Overrecovered natural gas costs$31,628 $30,637 
Total current regulatory liabilities$31,628 $30,637 
Regulatory liabilities-noncurrent
Tax Act impact (1)
$177,838 $180,347 
Other noncurrent regulatory liabilities438 111 
Total noncurrent regulatory liabilities$178,276 $180,458 
(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 are comprised of the following:
(Thousands)March 31,
2024		September 30,
2023
Total noncurrent regulatory assets$5,161 $5,231 
Total current regulatory liabilities$1,535 $1,650 
v3.24.1.u1
DERIVATIVE INSTRUMENTS (Tables)
 6 Months Ended
Mar. 31, 2024
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, 2024September 30, 2023
(Thousands)Balance Sheet LocationAssetsLiabilitiesAssetsLiabilities
Derivatives not designated as hedging instruments:
NJNG:
Physical commodity contractsDerivatives - current$49 $6 $43 $488 
Financial commodity contractsDerivatives - current1,229 35 6,110 20 
ES:
Physical commodity contractsDerivatives - current1,384 6,656 6,209 12,757 
Derivatives - noncurrent678 13,014 802 7,870 
Financial commodity contractsDerivatives - current11,394 4,028 18,393 2,880 
Derivatives - noncurrent232 777 762 97 
Total fair value of derivatives$14,966 $24,516 $32,319 $24,112 
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.
Asset DerivativesLiability Derivatives
(Thousands)
Fair Value (1)
Amounts Offset (2)
Collateral Received/Pledged (3)
Net Value (4)
Fair Value (1)
Amounts Offset (2)
Collateral Received/Pledged (3)
Net Value (4)
As of March 31, 2024
ES Contracts
Physical commodity$2,062 (539)— $1,523 $19,670 (539)(9,865)$9,266 
Financial commodity11,626 (4,805)(6,206)615 4,805 (4,805)— — 
Total ES$13,688 (5,344)(6,206)$2,138 $24,475 (5,344)(9,865)$9,266 
NJNG Contracts
Physical commodity$49 (4)— $45 $6 (4)— $2 
Financial commodity1,229 (35)— 1,194 35 (35)— — 
Total NJNG$1,278 (39)— $1,239 $41 (39)— $2 
As of September 30, 2023
ES Contracts
Physical commodity$7,011 (1,236)— $5,775 $20,627 (1,236)(9,728)$9,663 
Financial commodity19,155 (2,977)(16,178)— 2,977 (2,977)— — 
Total ES$26,166 (4,213)(16,178)$5,775 $23,604 (4,213)(9,728)$9,663 
NJNG Contracts
Physical commodity$43 (3)— $40 $488 (3)— $485 
Financial commodity6,110 (20)— 6,090 20 (20)— — 
Total NJNG$6,153 (23)— $6,130 $508 (23)— $485 
(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.
Asset DerivativesLiability Derivatives
(Thousands)
Fair Value (1)
Amounts Offset (2)
Collateral Received/Pledged (3)
Net Value (4)
Fair Value (1)
Amounts Offset (2)
Collateral Received/Pledged (3)
Net Value (4)
As of March 31, 2024
ES Contracts
Physical commodity$2,062 (539)— $1,523 $19,670 (539)(9,865)$9,266 
Financial commodity11,626 (4,805)(6,206)615 4,805 (4,805)— — 
Total ES$13,688 (5,344)(6,206)$2,138 $24,475 (5,344)(9,865)$9,266 
NJNG Contracts
Physical commodity$49 (4)— $45 $6 (4)— $2 
Financial commodity1,229 (35)— 1,194 35 (35)— — 
Total NJNG$1,278 (39)— $1,239 $41 (39)— $2 
As of September 30, 2023
ES Contracts
Physical commodity$7,011 (1,236)— $5,775 $20,627 (1,236)(9,728)$9,663 
Financial commodity19,155 (2,977)(16,178)— 2,977 (2,977)— — 
Total ES$26,166 (4,213)(16,178)$5,775 $23,604 (4,213)(9,728)$9,663 
NJNG Contracts
Physical commodity$43 (3)— $40 $488 (3)— $485 
Financial commodity6,110 (20)— 6,090 20 (20)— — 
Total NJNG$6,153 (23)— $6,130 $508 (23)— $485 
(1)Derivative assets and liabilities are presented on a gross basis on the condensed consolidated balance sheets as the Company does not elect balance sheet offsetting under ASC 210-20.
(2)Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting.
(3)Financial collateral includes cash balances at FCMs as well as cash received from or pledged to other counterparties.
(4)Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.
Effect of Derivative Instruments on Consolidated Statements of Operations
The following table presents the effect of derivative instruments recognized on the Unaudited Condensed Consolidated Statements of Operations for the periods set forth below:
(Thousands)Location of gain (loss) recognized in income on derivativesAmount of gain (loss) recognized
in income on derivatives
Three Months EndedSix Months Ended
March 31,March 31,
Derivatives not designated as hedging instruments:2024202320242023
ES:
Physical commodity contractsOperating revenues$(3,651)$7,208 $10,379 $17,246 
Physical commodity contractsNatural gas purchases(1,424)(124)(2,010)(794)
Financial commodity contractsNatural gas purchases(2,459)29,863 15,623 71,474 
Total unrealized and realized (loss) gain$(7,534)$36,947 $23,992 $87,926 
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI The following table reflects the gains (losses) associated with NJNG's derivative instruments for the periods set forth below:
Three Months EndedSix Months Ended
March 31,March 31,
(Thousands)2024202320242023
NJNG:
Physical commodity contracts$(3,920)$(203)$(4,990)$(28,234)
Financial commodity contracts(3,142)(38,294)1,190 (69,957)
Total unrealized and realized loss$(7,062)$(38,497)$(3,800)$(98,191)
Schedule of Outstanding Long (Short) Derivatives
NJNG and ES had the following outstanding long (short) derivatives as of:
Natural Gas DistributionEnergy Services
Volumes (Bcf)FuturesPhysical CommodityFuturesPhysical Commodity
March 31, 202423.85.0(3.8)(3.2)
September 30, 202332.112.1(6.9)0.2
Schedule of Broker Margin Accounts by Company The balances by reporting segment are as follows:
(Thousands)Balance Sheet LocationMarch 31,
2024		September 30,
2023
NJNGRestricted broker margin accounts-current assets$4,969 $5,915 
ESRestricted broker margin accounts-current assets$14,341 $14,881 
Restricted broker margin accounts-current liabilities$4,689 $8,029 
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, 2024. 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 CEV residential solar installations.
(Thousands)Gross Credit Exposure
Investment grade$113,150 
Noninvestment grade9,134 
Internally rated investment grade19,988 
Internally rated noninvestment grade22,477 
Total$164,749 
v3.24.1.u1
FAIR VALUE (Tables)
 6 Months Ended
Mar. 31, 2024
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,
2024		September 30,
2023
Carrying value (1) (2)
$2,567,845 $2,587,845 
Fair market value$2,218,977 $2,106,536 
(1)Excludes NJNG's debt issuance costs of $10.0M and $9.8M as of March 31, 2024 and September 30, 2023, respectively.
(2)Excludes NJR's debt issuance costs of $3.3M and $3.7M as of March 31, 2024 and September 30, 2023, respectively.
Schedule of Fair Value Hierarchy 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:
Fair Value HierarchyDescription of Fair Value LevelFair Value Technique
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 2Other 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 3Inputs derived from a significant amount of unobservable market dataThese include the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies.
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 AssetsSignificant Other Observable InputsSignificant Unobservable Inputs
(Thousands)(Level 1)(Level 2)(Level 3)Total
As of March 31, 2024
Assets:
Physical commodity contracts$— $2,111 $— $2,111 
Financial commodity contracts12,855 — — 12,855 
Money market funds56 — — 56 
Other2,954 — — 2,954 
Total assets at fair value$15,865 $2,111 $— $17,976 
Liabilities:
Physical commodity contracts$— $19,676 $— $19,676 
Financial commodity contracts4,840 — — 4,840 
Total liabilities at fair value$4,840 $19,676 $— $24,516 

Quoted Prices in Active Markets for Identical AssetsSignificant Other Observable InputsSignificant Unobservable Inputs
(Thousands)(Level 1)(Level 2)(Level 3)Total
As of September 30, 2023
Assets:
Physical commodity contracts$— $7,054 $— $7,054 
Financial commodity contracts25,265 — — 25,265 
Money market funds145 — — 145 
Other2,641 — — 2,641 
Total assets at fair value$28,051 $7,054 $— $35,105 
Liabilities:
Physical commodity contracts$— $21,115 $— $21,115 
Financial commodity contracts2,997 — — 2,997 
Total liabilities at fair value$2,997 $21,115 $— $24,112 
v3.24.1.u1
EARNINGS PER SHARE (Tables)
 6 Months Ended
Mar. 31, 2024
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 EndedSix Months Ended
March 31,March 31,
(Thousands, except per share amounts)2024202320242023
Net income, as reported$120,812 $110,247 $210,223 $226,168 
Basic earnings per share
Weighted average shares of common stock outstanding-basic98,377 96,893 98,123 96,689 
Basic earnings per common share$1.23$1.14$2.14$2.34
Diluted earnings per share
Weighted average shares of common stock outstanding-basic98,377 96,893 98,123 96,689 
Incremental shares (1)
725 663 716 657 
Weighted average shares of common stock outstanding-diluted99,102 97,556 98,839 97,346 
Diluted earnings per common share$1.22$1.13$2.13$2.32
(1)Incremental shares consist primarily of unvested stock awards and performance units, which are calculated using the treasury stock method.
v3.24.1.u1
DEBT (Tables)
 6 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Line of Credit Facilities
A summary of NJR's credit facility and NJNG's commercial paper program and credit facility are as follows:
At end of period
(Thousands)As of dateTotal
borrowing capacity		Loans outstandingWeighted average interest rateRemaining borrowing capacityExpiration dates
NJR bank revolving credit facilities (1)
March 31, 2024$650,000 $146,150 6.52 %$494,519 (2)September 2027
September 30, 2023$650,000 $217,300 6.53 %$426,967 (2)September 2027
NJNG bank revolving credit facilities (3)
March 31, 2024$250,000 $50,000 5.48 %$199,269 (4)September 2027
September 30, 2023$250,000 $34,800 5.48 %$214,469 (4)September 2027
(1)Committed credit facilities, which require commitment fees of 0.10% on the unused amounts.
(2)Letters of credit outstanding total $9.3M at March 31, 2024 and $5.7M at September 30, 2023, which reduces the amount available by the same amount.
(3)Committed credit facilities, which require commitment fees of 0.075% on the unused amounts.
(4)Letters of credit outstanding total $0.7M at both March 31, 2024 and September 30, 2023, which reduces the amount available by the same amount.
v3.24.1.u1
EMPLOYEE BENEFIT PLANS (Tables)
 6 Months Ended
Mar. 31, 2024
Retirement Benefits [Abstract]  
Summary of Changes in Funded Status of Plans and Liabilities Recognized
The following summarizes the changes in the funded status of the plan and the related liabilities recognized on the Consolidated Balance Sheets:
OPEB
(Thousands)January 1, 2024September 30, 2023
Change in Benefit Obligation
Benefit obligation at beginning of period$203,406 $173,217 
Service cost642 2,471 
Interest cost2,902 9,146 
Plan amendments(81,283)— 
Plan participants’ contributions (1)
— 552 
Actuarial loss26,871 25,363 
Benefits paid, net of retiree subsidies received(1,614)(7,343)
Benefit obligation at end of period$150,924 $203,406 
Change in plan assets
Fair value of plan assets at beginning of period$106,783 $99,736 
Actual return on plan assets8,995 9,826 
Employer contributions3,181 4,192 
Benefits paid, net of plan participants’ contributions (1)
(1,612)(6,971)
Fair value of plan assets at end of period$117,347 $106,783 
Funded status$(33,577)$(96,623)
Amounts recognized on Consolidated Balance Sheets
Postemployment employee (liability)
Current$(1,613)$(4,201)
Noncurrent(31,964)(92,422)
Total$(33,577)$(96,623)
(1)Employees hired prior to July 1, 1998, were eligible to elect an additional participant contribution to enhance their benefits. Contributions made during the periods were immaterial.
Summary of Regulatory Assets and Accumulated Other Comprehensive Income (Loss)
The following table summarizes the amounts recognized in regulatory assets and accumulated other comprehensive income (loss):
Regulatory AssetsAccumulated Other Comprehensive Income (Loss)
(Thousands)OPEB
Balance at September 30, 2023$30,046 $5,498 
Amounts arising during the period:
Net actuarial loss12,706 7,027 
Prior service cost(61,244)(20,039)
Amounts amortized to net periodic costs:
Net actuarial loss(355)(141)
Balance at January 1, 2024$(18,847)$(7,655)

The amounts in regulatory assets and accumulated other comprehensive income (loss) not yet recognized as components of net periodic benefit cost were as follows:
Regulatory AssetsAccumulated Other Comprehensive Income (Loss)
OPEB
(Thousands)January 1, 2024September 30, 2023January 1, 2024September 30, 2023
Net actuarial loss$42,397 $30,046 $12,384 $5,498 
Prior service cost(61,244)— (20,039)— 
Total$(18,847)$30,046 $(7,655)$5,498 
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:
PensionOPEB
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
March 31,March 31,March 31,March 31,
(Thousands)20242023202420232024202320242023
Service cost$1,244 $1,351 $2,488 $2,701 $255 $618 $897 $1,236 
Interest cost4,060 3,793 8,120 7,587 1,808 2,287 4,710 4,573 
Expected return on plan assets(5,086)(4,993)(10,173)(9,986)(2,020)(1,681)(3,878)(3,361)
Recognized actuarial loss30 75 59 150 1,255 — 1,751 — 
Prior service cost (credit) amortization15 26 31 51 (3,337)— (3,337)— 
Net periodic benefit cost$263 $252 $525 $503 $(2,039)$1,224 $143 $2,448 
Schedule of Weighted Average Assumptions Used
The weighted average assumptions used to determine the Company’s obligations are as follows:
OPEB
January 1, 2024September 30, 2023
Obligations:
Discount rate
5.02%/5.01%
(1)
5.97%/5.94%
(1)
Compensation increase
3.00%/3.50%
(1)
3.00%/3.50%
(1)
(1)Percentages for represented and non-represented plans, respectively.
v3.24.1.u1
LEASES (Tables)
 6 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Schedule of Lease, Cost
The following table presents the Company's lease costs included in the Unaudited Condensed Consolidated Statements of Operations:
Three Months EndedSix Months Ended
March 31,March 31,
(Thousands)Income Statement Location2024202320242023
Operating lease cost (1)
Operation and maintenance$2,524 $2,307 $5,064 $4,724 
Finance lease cost
Amortization of right-of-use assetsDepreciation and amortization552 540 1,080 1,025 
Interest on lease liabilitiesInterest expense, net of capitalized interest236 298 488 533 
Total finance lease cost788 838 1,568 1,558 
Variable lease costOperation and maintenance246 272 446 495 
Total lease cost$3,558 $3,417 $7,078 $6,777 
(1)Net of capitalized costs.

The following table presents supplemental cash flow information related to leases:
Six Months Ended
March 31,
(Thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases$4,199 $3,652 
Operating cash flows for finance leases$488 $533 
Financing cash flows for finance leases$3,875 $3,577 
Schedule of 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 LocationMarch 31,
2024		September 30,
2023
Assets
Noncurrent
Operating lease assetsOperating lease assets$177,176 $175,740 
Finance lease assetsUtility plant27,168 28,248 
Total lease assets$204,344 $203,988 
Liabilities
Current
Operating lease liabilitiesOperating lease liabilities$4,780 $4,772 
Finance lease liabilitiesCurrent maturities of long-term debt8,816 8,477 
Noncurrent
Operating lease liabilitiesOperating lease liabilities150,971 148,023 
Finance lease liabilitiesLong-term debt18,661 22,875 
Total lease liabilities$183,228 $184,147 
v3.24.1.u1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables)
 6 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Long-term Purchase Commitment
Commitments as of March 31, 2024, for natural gas purchases and future demand fees for the next five fiscal year periods are as follows:
(Thousands)20242025202620272028Thereafter
ES:
Natural gas purchases$11,801 $1,964 $— $— $— $— 
Storage demand fees8,685 15,743 11,413 5,440 3,491 6,780 
Pipeline demand fees31,418 55,870 42,117 25,837 15,301 17,011 
Sub-total ES$51,904 $73,577 $53,530 $31,277 $18,792 $23,791 
NJNG:
Natural gas purchases$6,546 $— $— $— $— $— 
Storage demand fees22,541 33,105 15,963 11,155 4,874 — 
Pipeline demand fees77,558 202,212 143,787 129,216 113,962 966,909 
Sub-total NJNG$106,645 $235,317 $159,750 $140,371 $118,836 $966,909 
Total$158,549 $308,894 $213,280 $171,648 $137,628 $990,700 
v3.24.1.u1
REPORTING SEGMENT AND OTHER OPERATIONS DATA (Tables)
 6 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Information related to the Company's various reporting segments and other operations during the three months ended March 31, 2024 and 2023, are as follows:
Segments
(Thousands)NJNGCEVESS&TSubtotalHSOElimsTotal
2024
Operating revenues
External customers$462,863 9,325 148,604 (1)22,369 $643,161 14,752 — $657,913 
Intercompany$338 — (3,742)673 $(2,731)153 2,578 $— 
Depreciation and amortization$27,464 6,931 56 (2)6,218 $40,669 271 (865)$40,075 
Interest income (3)
$517 — 143 2,518 $3,178 332 (1,474)$2,036 
Interest expense, net of capitalized interest$14,850 7,182 3,513 5,868 $31,413 208 — $31,621 
Income tax provision (benefit)$24,476 (1,594)5,289 619 $28,790 520 4,637 $33,947 
Equity in earnings of affiliates$— — — 85 $85 — 653 $738 
Net financial earnings (loss)$107,095 (5,616)37,644 1,981 $141,104 384 (2,912)$138,576 
Capital expenditures$97,710 11,317 — 13,523 $122,550 130 — $122,680 
2023
Operating revenues
External customers$400,500 14,406 196,553 (1)19,303 $630,762 13,265 — $644,027 
Intercompany$338 — 177 1,584 $2,099 183 (2,282)$— 
Depreciation and amortization$25,319 6,465 62 (2)6,020 $37,866 224 — $38,090 
Interest income (3)
$376 — 380 1,684 $2,440 734 (938)$2,236 
Interest expense, net of capitalized interest$13,879 7,316 2,749 6,128 $30,072 189 — $30,261 
Income tax provision (benefit)$23,924 (3,005)5,916 596 $27,431 488 2,667 $30,586 
Equity in earnings of affiliates$— — — 977 $977 — 154 $1,131 
Net financial earnings (loss)$100,697 (9,379)21,125 2,450 $114,893 813 (3,396)$112,310 
Capital expenditures$92,600 13,706 — 10,122 $116,428 760 — $117,188 
(1)Includes sales to Canada for the ES 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.
Information related to the Company's various reporting segments and other operations during the six months ended March 31, 2024 and 2023, are as follows:
Segments
(Thousands)NJNGCEVESS&TSubtotalHSOElimsTotal
2024
Operating revenues
External customers$755,956 44,620 249,405 (1)45,556 $1,095,537 29,586 — $1,125,123 
Intercompany$675 — (4,875)1,348 $(2,852)153 2,699 $— 
Depreciation and amortization$54,381 13,853 113 (2)12,380 $80,727 500 (865)$80,362 
Interest income (3)
$1,095 — 271 4,888 $6,254 688 (2,880)$4,062 
Interest expense, net of capitalized interest$29,601 14,629 6,639 11,801 $62,670 424 — $63,094 
Income tax provision$35,132 1,537 12,800 1,651 $51,120 468 5,295 $56,883 
Equity in earnings of affiliates$— — — 1,078 $1,078 — 1,320 $2,398 
Net financial earnings (loss)$158,539 4,906 45,475 5,621 $214,541 (216)(3,305)$211,020 
Capital expenditures$177,425 37,083 — 21,308 $235,816 1,486 — $237,302 
2023
Operating revenues
External customers$757,909 27,198 509,952 (1)45,017 $1,340,076 27,518 — $1,367,594 
Intercompany$675 — 8,560 2,708 $11,943 196 (12,139)$— 
Depreciation and amortization$50,209 12,041 119 (2)11,962 $74,331 442 — $74,773 
Interest income (3)
$789 — 649 3,085 $4,523 1,388 (1,716)$4,195 
Interest expense, net of capitalized interest$27,588 13,211 5,807 12,835 $59,441 311 — $59,752 
Income tax provision (benefit)$38,307 (4,842)25,980 2,539 $61,984 705 875 $63,564 
Equity in earnings of affiliates$— — — 1,886 $1,886 — 191 $2,077 
Net financial earnings (loss)$155,361 (12,961)73,658 8,693 $224,751 784 (2,941)$222,594 
Capital expenditures$174,671 57,699 — 29,841 $262,211 900 — $263,111 
(1)Includes sales to Canada for the ES 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.
Schedule of Assets for Business Segments and Business Operations
The Company's assets for the various reporting segments and business operations are detailed below:
SegmentsIntercompany
(Thousands)NJNGCEVESS&TSubtotalHSO
Assets (1)
Total
March 31, 2024$4,527,458 1,124,392 104,094 1,012,899 $6,768,843 171,594 (293,060)$6,647,377 
September 30, 2023$4,414,829 1,128,577 123,775 1,011,959 $6,679,140 171,275 (312,919)$6,537,496 
(1)Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation.
Schedule of Reconciliation of Consolidated NFE to Consolidated Net Income A reconciliation of consolidated NFE to consolidated net income is as follows:
Three Months EndedSix Months Ended
March 31,March 31,
(Thousands)2024202320242023
Net financial earnings$138,576 $112,310 $211,020 $222,594 
Less:
Unrealized loss (gain) on derivative instruments and related transactions25,457 13,971 20,057 (17,532)
Tax effect(6,049)(3,320)(4,767)4,167 
Effects of economic hedging related to natural gas inventory(2,845)(11,203)(19,073)12,769 
Tax effect676 2,662 4,533 (3,035)
Gain on equity method investment— (200)— (200)
Tax effect— 50 — 50 
NFE tax adjustment525 103 47 207 
Net income$120,812 $110,247 $210,223 $226,168 
v3.24.1.u1
RELATED PARTY TRANSACTIONS (Tables)
 6 Months Ended
Mar. 31, 2024
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 EndedSix Months Ended
March 31,March 31,
(Thousands)2024202320242023
NJNG$1,585 $1,615 $3,240 $3,270 
ES214 155 438 327 
Total$1,799 $1,770 $3,678 $3,597 

The following table summarizes demand fees payable to Steckman Ridge as of:
(Thousands)March 31,
2024		September 30,
2023
NJNG$778 $775 
ES81 84 
Total$859 $859 
v3.24.1.u1
NATURE OF THE BUSINESS (Details)
 6 Months Ended
Mar. 31, 2024
subsidiary
customer
Steckman Ridge  
Nature of Business [Line Items]  
Ownership percentage 50.00%
NJNG  
Nature of Business [Line Items]  
Total retail customers | customer 581,600
NJR Retail Holdings Corporation  
Nature of Business [Line Items]  
Number of principal subsidiaries | subsidiary 1
v3.24.1.u1
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, 2024
USD ($)
Mar. 31, 2023
USD ($)
Mar. 31, 2024
USD ($)
Mar. 31, 2023
USD ($)
Sep. 30, 2023
USD ($)
Finite-Lived Intangible Assets [Line Items]            
Number of megawatts | Megawatt 5          
Operating revenues   $ 657,913 $ 644,027 $ 1,125,123 $ 1,367,594  
Loans receivable in other noncurrent assets   43,600   43,600   $ 39,000
Financial Asset, Not Past Due            
Finite-Lived Intangible Assets [Line Items]            
Loans receivable in other current assets   15,800   $ 15,800   15,100
Minimum            
Finite-Lived Intangible Assets [Line Items]            
Loans receivable, term       2 years    
Maximum            
Finite-Lived Intangible Assets [Line Items]            
Loans receivable, term       10 years    
ES            
Finite-Lived Intangible Assets [Line Items]            
Operating revenues   9,500 $ 9,500 $ 19,000 $ 29,500  
Deferred revenue   $ 107,200   $ 107,200   $ 58,700
v3.24.1.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Sep. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Accounting Policies [Abstract]        
Cash and cash equivalents $ 5,036 $ 954 $ 27,095  
Restricted cash in other noncurrent assets 710 563 461  
Cash, cash equivalents and restricted cash $ 5,746 $ 1,517 $ 27,556 $ 1,452
v3.24.1.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NATURAL GAS IN STORAGE (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Bcf
Sep. 30, 2023
USD ($)
Bcf
Inventory [Line Items]    
Natural Gas in Storage, value | $ $ 80,996 $ 199,501
Natural Gas in Storage, Bcf | Bcf 20,500,000 43,700,000
NJNG    
Inventory [Line Items]    
Natural Gas in Storage, value | $ $ 60,539 $ 175,025
Natural Gas in Storage, Bcf | Bcf 9,200,000 29,100,000
ES    
Inventory [Line Items]    
Natural Gas in Storage, value | $ $ 20,457 $ 24,476
Natural Gas in Storage, Bcf | Bcf 11,300,000 14,600,000
v3.24.1.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SOFTWARE COSTS (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Sep. 30, 2023
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]          
Capitalized software costs $ 9,734   $ 9,734   $ 8,375
Operation and maintenance          
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]          
Software costs 2,674 $ 3,886 5,927 $ 7,638  
Depreciation and amortization          
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]          
Software costs 1,265 $ 957 2,254 $ 1,828  
Utility plant, at cost          
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]          
Software costs 88,234   88,234   51,282
Construction work in progress | Regulated          
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]          
Software costs 45,573   45,573   55,012
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 (9,728)   (9,728)   (7,480)
Accumulated depreciation and amortization, nonutility plant and equipment          
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]          
Accumulated depreciation and amortization $ (42)   $ (42)   $ (36)
v3.24.1.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2024
Mar. 31, 2023
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]            
Balance as of beginning of period $ 2,066,201 $ 1,990,735 $ 1,922,795 $ 1,817,210 $ 1,990,735 $ 1,817,210
Other comprehensive (loss) income, before reclassifications, net of tax 9,992       9,992  
Amounts reclassified from accumulated other comprehensive income (loss), net of tax (106)   305   289 609
Other comprehensive income, net of tax 9,886 395 305 304 10,281 609
Balance as of end of period 2,179,225 2,066,201 2,000,836 1,922,795 2,179,225 2,000,836
Tax on other comprehensive income before reclassifications (3,020)       (3,020)  
Tax on amounts reclassified from accumulated other comprehensive income (loss) 32   (93)   (87) (184)
Tax on net current-period other comprehensive income (2,988)       (3,107)  
Total            
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]            
Balance as of beginning of period (9,564) (9,959) (4,522) (4,826) (9,959) (4,826)
Other comprehensive income, net of tax 9,886 395 305 304    
Balance as of end of period 322 (9,564) (4,217) (4,522) 322 (4,217)
Cash Flow Hedges            
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]            
Balance as of beginning of period (7,005) (7,269) (8,059) (8,322) (7,269) (8,322)
Other comprehensive (loss) income, before reclassifications, net of tax 0       0  
Amounts reclassified from accumulated other comprehensive income (loss), net of tax 262   264   526 527
Other comprehensive income, net of tax 262       526  
Balance as of end of period (6,743) (7,005) (7,795) (8,059) (6,743) (7,795)
Tax on other comprehensive income before reclassifications 0       0  
Tax on amounts reclassified from accumulated other comprehensive income (loss) (80)   (80)   (159) (159)
Tax on net current-period other comprehensive income (80)       (159)  
Postemployment Benefit Obligation            
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]            
Balance as of beginning of period (2,559) (2,690) 3,537 3,496 (2,690) 3,496
Other comprehensive (loss) income, before reclassifications, net of tax 9,992       9,992  
Amounts reclassified from accumulated other comprehensive income (loss), net of tax (368)   41   (237) 82
Other comprehensive income, net of tax 9,624       9,755  
Balance as of end of period 7,065 $ (2,559) 3,578 $ 3,537 7,065 3,578
Tax on other comprehensive income before reclassifications (3,020)       (3,020)  
Tax on amounts reclassified from accumulated other comprehensive income (loss) 112   $ (13)   72 $ (25)
Tax on net current-period other comprehensive income $ (2,908)       $ (2,948)  
v3.24.1.u1
REVENUE - DISAGGREGATED REVENUE - PRODUCT (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers $ 433,172 $ 384,433 $ 754,363 $ 748,984
Alternative revenue programs 7,382 27,270 4,845 23,805
Derivative instruments 213,617 232,501 361,040 603,365
Revenues out of scope 224,741 259,594 370,760 618,610
Total operating revenues 657,913 644,027 1,125,123 1,367,594
Natural gas utility sales        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 371,019 327,198 628,894 615,365
Natural gas services        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 39,187 37,723 79,317 92,409
Service contracts        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 9,071 8,739 18,011 17,400
Installations and maintenance        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 5,834 4,709 11,728 10,314
Renewable energy certificates        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 2,672 2,085 5,322 3,287
Electricity sales        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 6,553 6,084 13,267 13,788
ES        
Disaggregation of Revenue [Line Items]        
Total operating revenues 9,500 9,500 19,000 29,500
Operating Segments        
Disaggregation of Revenue [Line Items]        
Total operating revenues 643,161 630,762 1,095,537 1,340,076
Operating Segments | NJNG        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 370,681 326,860 628,219 614,690
Alternative revenue programs 7,382 27,270 4,845 23,805
Derivative instruments 84,800 46,370 122,892 119,414
Revenues out of scope 92,182 73,640 127,737 143,219
Total operating revenues 462,863 400,500 755,956 757,909
Operating Segments | NJNG | Natural gas utility sales        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 371,019 327,198 628,894 615,365
Operating Segments | NJNG | Natural gas services        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | NJNG | Service contracts        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | NJNG | Installations and maintenance        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | NJNG | Renewable energy certificates        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | NJNG | Electricity sales        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | CEV        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 9,225 8,169 18,589 17,075
Alternative revenue programs 0 0 0 0
Derivative instruments 100 6,237 26,031 10,123
Revenues out of scope 100 6,237 26,031 10,123
Total operating revenues 9,325 14,406 44,620 27,198
Operating Segments | CEV | Natural gas utility sales        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | CEV | Natural gas services        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | CEV | Service contracts        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | CEV | Installations and maintenance        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | CEV | Renewable energy certificates        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 2,672 2,085 5,322 3,287
Operating Segments | CEV | Electricity sales        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 6,553 6,084 13,267 13,788
Operating Segments | ES        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 16,145 16,836 32,413 44,684
Alternative revenue programs 0 0 0 0
Derivative instruments 128,717 179,894 212,117 473,828
Revenues out of scope 132,459 179,717 216,992 465,268
Total operating revenues 148,604 196,553 249,405 509,952
Operating Segments | ES | Natural gas utility sales        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | ES | Natural gas services        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 16,145 16,836 32,413 44,684
Operating Segments | ES | Service contracts        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | ES | Installations and maintenance        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | ES | Renewable energy certificates        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | ES | Electricity sales        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | S&T        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 22,369 19,303 45,556 45,017
Alternative revenue programs 0 0 0 0
Derivative instruments 0 0 0 0
Revenues out of scope 0 0 0 0
Total operating revenues 22,369 19,303 45,556 45,017
Operating Segments | S&T | Natural gas utility sales        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | S&T | Natural gas services        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 23,042 20,887 46,904 47,725
Operating Segments | S&T | Service contracts        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | S&T | Installations and maintenance        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | S&T | Renewable energy certificates        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Operating Segments | S&T | Electricity sales        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Corporate, Non-Segment        
Disaggregation of Revenue [Line Items]        
Revenues out of scope 0 0 0 0
Total operating revenues 14,752 13,265 29,586 27,518
Corporate, Non-Segment | HSO        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 14,752 13,265 29,586 27,518
Alternative revenue programs 0 0 0 0
Derivative instruments 0 0 0 0
Revenues out of scope 0 0 0 0
Total operating revenues 14,752 13,265 29,586 27,518
Corporate, Non-Segment | HSO | Natural gas utility sales        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Corporate, Non-Segment | HSO | Natural gas services        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Corporate, Non-Segment | HSO | Service contracts        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 9,071 8,739 18,011 17,400
Corporate, Non-Segment | HSO | Installations and maintenance        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 5,834 4,709 11,728 10,314
Corporate, Non-Segment | HSO | Renewable energy certificates        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Corporate, Non-Segment | HSO | 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 (1,164) (2,105) (2,176) (3,579)
Revenues out of scope 3,742 (177) 4,875 (8,560)
Total operating revenues   (2,282)   (12,139)
Eliminations | NJNG        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers (338) (338) (675) (675)
Revenues out of scope 0 0 0 0
Eliminations | CEV        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Revenues out of scope 0 0 0 0
Eliminations | ES        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Revenues out of scope 3,742 (177) 4,875 (8,560)
Eliminations | S&T        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers (673) (1,584) (1,348) (2,708)
Revenues out of scope 0 0 0 0
Eliminations | HSO        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers (153) (183) (153) (196)
Revenues out of scope $ 0 $ 0 $ 0 $ 0
v3.24.1.u1
REVENUE - DISAGGREGATED REVENUE - TYPE (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers $ 433,172 $ 384,433 $ 754,363 $ 748,984
Revenues out of scope 224,741 259,594 370,760 618,610
Total operating revenues 657,913 644,027 1,125,123 1,367,594
Residential        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 305,737 263,916 519,549 498,327
Commercial and industrial        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 94,940 90,385 176,163 193,428
Firm transportation        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 30,680 29,368 55,115 55,567
Interruptible, off-tariff and other        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 1,815 764 3,536 1,662
Operating Segments        
Disaggregation of Revenue [Line Items]        
Total operating revenues 643,161 630,762 1,095,537 1,340,076
Corporate, Non-Segment        
Disaggregation of Revenue [Line Items]        
Revenues out of scope 0 0 0 0
Total operating revenues 14,752 13,265 29,586 27,518
Corporate, Non-Segment | Residential        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 14,684 13,089 29,487 27,269
Corporate, Non-Segment | Commercial and industrial        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 68 176 99 249
Corporate, Non-Segment | Firm transportation        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
Corporate, Non-Segment | Interruptible, off-tariff and other        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
NJNG | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 370,681 326,860 628,219 614,690
Revenues out of scope 92,182 73,640 127,737 143,219
Total operating revenues 462,863 400,500 755,956 757,909
NJNG | Operating Segments | Residential        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 287,824 247,623 483,447 464,561
NJNG | Operating Segments | Commercial and industrial        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 50,362 49,105 86,121 92,900
NJNG | Operating Segments | Firm transportation        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 30,680 29,368 55,115 55,567
NJNG | Operating Segments | Interruptible, off-tariff and other        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 1,815 764 3,536 1,662
CEV | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 9,225 8,169 18,589 17,075
Revenues out of scope 100 6,237 26,031 10,123
Total operating revenues 9,325 14,406 44,620 27,198
CEV | Operating Segments | Residential        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 3,229 3,204 6,615 6,497
CEV | Operating Segments | Commercial and industrial        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 5,996 4,965 11,974 10,578
CEV | Operating Segments | Firm transportation        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
CEV | Operating Segments | Interruptible, off-tariff and other        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
ES        
Disaggregation of Revenue [Line Items]        
Total operating revenues 9,500 9,500 19,000 29,500
ES | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 16,145 16,836 32,413 44,684
Revenues out of scope 132,459 179,717 216,992 465,268
Total operating revenues 148,604 196,553 249,405 509,952
ES | Operating Segments | Residential        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
ES | Operating Segments | Commercial and industrial        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 16,145 16,836 32,413 44,684
ES | Operating Segments | Firm transportation        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
ES | Operating Segments | Interruptible, off-tariff and other        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
S&T | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 22,369 19,303 45,556 45,017
Revenues out of scope 0 0 0 0
Total operating revenues 22,369 19,303 45,556 45,017
S&T | Operating Segments | Residential        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
S&T | Operating Segments | Commercial and industrial        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 22,369 19,303 45,556 45,017
S&T | Operating Segments | Firm transportation        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 0 0 0 0
S&T | Operating Segments | Interruptible, off-tariff and other        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers $ 0 $ 0 $ 0 $ 0
v3.24.1.u1
REVENUE - TIMING OF REVENUE RECOGNITION (Details) - USD ($)
$ in Thousands
 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Timing of Revenue Recognition [Roll Forward]    
Customers' credit, beginning $ 44,910 $ 33,246
Increase (decrease) for customers' credits (20,032) (7,725)
Customers' credit, end 24,878 25,521
Billed    
Timing of Revenue Recognition [Roll Forward]    
Billed, beginning 97,540 222,297
Increase (decrease) for customer accounts receivable 87,529 (27,844)
Billed, end 185,069 194,453
Unbilled    
Timing of Revenue Recognition [Roll Forward]    
Billed, beginning 19,100 13,769
Increase (decrease) for customer accounts receivable 55,356 32,271
Billed, end $ 74,456 $ 46,040
v3.24.1.u1
REVENUE - TIMING OF REVENUE RECOGNITION - BALANCE SHEET (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Sep. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Disaggregation of Revenue [Line Items]        
Billed $ 185,069 $ 97,540    
Unbilled 74,456 19,100    
Customers' credit balances and deposits (24,878) (44,910) $ (25,521) $ (33,246)
Customers accounts receivables & Customers' credit balances and deposits 234,647 71,730    
Operating Segments | NJNG        
Disaggregation of Revenue [Line Items]        
Billed 142,088 55,234    
Unbilled 69,904 10,784    
Customers' credit balances and deposits (24,860) (44,898)    
Customers accounts receivables & Customers' credit balances and deposits 187,132 21,120    
Operating Segments | CEV        
Disaggregation of Revenue [Line Items]        
Billed 7,273 9,962    
Unbilled 4,552 8,316    
Customers' credit balances and deposits 0 0    
Customers accounts receivables & Customers' credit balances and deposits 11,825 18,278    
Operating Segments | ES        
Disaggregation of Revenue [Line Items]        
Billed 25,241 23,716    
Unbilled 0 0    
Customers' credit balances and deposits 0 0    
Customers accounts receivables & Customers' credit balances and deposits 25,241 23,716    
Operating Segments | S&T        
Disaggregation of Revenue [Line Items]        
Billed 7,749 6,577    
Unbilled 0 0    
Customers' credit balances and deposits (18) (12)    
Customers accounts receivables & Customers' credit balances and deposits 7,731 6,565    
Corporate, Non-Segment        
Disaggregation of Revenue [Line Items]        
Billed 2,718 2,051    
Unbilled 0 0    
Customers' credit balances and deposits 0 0    
Customers accounts receivables & Customers' credit balances and deposits $ 2,718 $ 2,051    
v3.24.1.u1
REGULATION - ADDITIONAL INFORMATION (Details) - USD ($)
$ in Millions
 6 Months Ended
Mar. 28, 2024
Mar. 20, 2024
Jan. 31, 2024
Dec. 01, 2023
Nov. 09, 2023
Mar. 31, 2024
Schedule of Regulatory Filings [Line Items]            
Approved rate increase (decrease), amount         $ 76.9  
NJNG            
Schedule of Regulatory Filings [Line Items]            
Approved rate increase (decrease), amount $ 43.5          
Base Rate Stipulation            
Schedule of Regulatory Filings [Line Items]            
Weighted average cost of capital           6.84%
Approved return on equity           9.60%
SAVEGREEN            
Schedule of Regulatory Filings [Line Items]            
Capital investments approved by the BPU       $ 245.1    
Financing options       217.2    
Operations and maintenance expense       $ 20.1    
BPU | NJNG            
Schedule of Regulatory Filings [Line Items]            
Weighted average cost of capital     7.57%      
Approved return on equity     10.42%      
Approved rate increase (decrease), amount $ 5.6   $ 222.6      
RAC            
Schedule of Regulatory Filings [Line Items]            
Approved rate increase (decrease), amount   $ 2.4        
NJCEP            
Schedule of Regulatory Filings [Line Items]            
Approved rate increase (decrease), amount   $ 5.5        
v3.24.1.u1
REGULATION - REGULATORY ASSETS AND LIABILITIES (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Sep. 30, 2023
Regulatory Assets And Liabilities [Line Items]    
Regulatory assets-current $ 93,887 $ 73,587
Regulatory assets-noncurrent 535,104 584,830
Regulatory liability-current 33,163 32,287
Regulatory liabilities-noncurrent 178,276 180,458
Expended, net of recoveries    
Regulatory Assets And Liabilities [Line Items]    
Regulatory assets-noncurrent 69,200  
NJNG    
Regulatory Assets And Liabilities [Line Items]    
Regulatory assets-current 93,887 73,587
Regulatory assets-noncurrent 529,943 579,599
Regulatory liability-current 31,628 30,637
Regulatory liabilities-noncurrent 178,276 180,458
NJNG | Overrecovered natural gas costs    
Regulatory Assets And Liabilities [Line Items]    
Regulatory liability-current 31,628 30,637
NJNG | Tax Act impact    
Regulatory Assets And Liabilities [Line Items]    
Regulatory liabilities-noncurrent 177,838 180,347
NJNG | Other noncurrent regulatory liabilities    
Regulatory Assets And Liabilities [Line Items]    
Regulatory liabilities-noncurrent 438 111
NJNG | New Jersey Clean Energy Program    
Regulatory Assets And Liabilities [Line Items]    
Regulatory assets-current 6,827 15,804
NJNG | Conservation Incentive Program    
Regulatory Assets And Liabilities [Line Items]    
Regulatory assets-current 55,200 50,356
NJNG | Derivatives at fair value, net    
Regulatory Assets And Liabilities [Line Items]    
Regulatory assets-current 30,444 6,017
NJNG | Other current regulatory assets    
Regulatory Assets And Liabilities [Line Items]    
Regulatory assets-current 1,416 1,410
Regulatory assets-noncurrent 44,943 51,019
NJNG | Expended, net of recoveries    
Regulatory Assets And Liabilities [Line Items]    
Regulatory assets-noncurrent 69,229 66,298
NJNG | Liability for future expenditures    
Regulatory Assets And Liabilities [Line Items]    
Regulatory assets-noncurrent 157,813 169,390
NJNG | Deferred income taxes    
Regulatory Assets And Liabilities [Line Items]    
Regulatory assets-noncurrent 42,626 41,667
NJNG | SAVEGREEN    
Regulatory Assets And Liabilities [Line Items]    
Regulatory assets-noncurrent 88,496 83,589
NJNG | Postemployment and other benefit costs    
Regulatory Assets And Liabilities [Line Items]    
Regulatory assets-noncurrent 7,936 55,274
NJNG | Cost of removal    
Regulatory Assets And Liabilities [Line Items]    
Regulatory assets-noncurrent 118,900 112,362
Adelphia    
Regulatory Assets And Liabilities [Line Items]    
Regulatory assets-noncurrent 5,161 5,231
Regulatory liability-current $ 1,535 $ 1,650
v3.24.1.u1
DERIVATIVE INSTRUMENTS - BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Sep. 30, 2023
Fair Value    
Derivative assets, current $ 14,056 $ 30,755
Derivative liability, current 10,725 16,145
Derivative assets, noncurrent 910 1,564
Derivative liabilities, noncurrent 13,791 7,967
Not Designated as Hedging Instrument    
Fair Value    
Derivative assets 14,966 32,319
Derivative liabilities 24,516 24,112
NJNG | Not Designated as Hedging Instrument | Physical commodity contracts    
Fair Value    
Derivative assets, current 49 43
Derivative liability, current 6 488
NJNG | Not Designated as Hedging Instrument | Financial commodity contracts    
Fair Value    
Derivative assets, current 1,229 6,110
Derivative liability, current 35 20
ES | Not Designated as Hedging Instrument | Physical commodity contracts    
Fair Value    
Derivative assets, current 1,384 6,209
Derivative liability, current 6,656 12,757
Derivative assets, noncurrent 678 802
Derivative liabilities, noncurrent 13,014 7,870
ES | Not Designated as Hedging Instrument | Financial commodity contracts    
Fair Value    
Derivative assets, current 11,394 18,393
Derivative liability, current 4,028 2,880
Derivative assets, noncurrent 232 762
Derivative liabilities, noncurrent $ 777 $ 97
v3.24.1.u1
DERIVATIVE INSTRUMENTS - OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Sep. 30, 2023
ES    
Asset Derivatives    
Fair Value $ 13,688 $ 26,166
Amounts Offset (5,344) (4,213)
Collateral Received/Pledged (6,206) (16,178)
Net Value 2,138 5,775
Liability Derivatives    
Fair Value 24,475 23,604
Amounts Offset (5,344) (4,213)
Collateral Received/Pledged (9,865) (9,728)
Net Value 9,266 9,663
ES | Physical commodity contracts    
Asset Derivatives    
Fair Value 2,062 7,011
Amounts Offset (539) (1,236)
Collateral Received/Pledged 0 0
Net Value 1,523 5,775
Liability Derivatives    
Fair Value 19,670 20,627
Amounts Offset (539) (1,236)
Collateral Received/Pledged (9,865) (9,728)
Net Value 9,266 9,663
ES | Financial commodity contracts    
Asset Derivatives    
Fair Value 11,626 19,155
Amounts Offset (4,805) (2,977)
Collateral Received/Pledged (6,206) (16,178)
Net Value 615 0
Liability Derivatives    
Fair Value 4,805 2,977
Amounts Offset (4,805) (2,977)
Collateral Received/Pledged 0 0
Net Value 0 0
NJNG    
Asset Derivatives    
Fair Value 1,278 6,153
Amounts Offset (39) (23)
Collateral Received/Pledged 0 0
Net Value 1,239 6,130
Liability Derivatives    
Fair Value 41 508
Amounts Offset (39) (23)
Collateral Received/Pledged 0 0
Net Value 2 485
NJNG | Physical commodity contracts    
Asset Derivatives    
Fair Value 49 43
Amounts Offset (4) (3)
Collateral Received/Pledged 0 0
Net Value 45 40
Liability Derivatives    
Fair Value 6 488
Amounts Offset (4) (3)
Collateral Received/Pledged 0 0
Net Value 2 485
NJNG | Financial commodity contracts    
Asset Derivatives    
Fair Value 1,229 6,110
Amounts Offset (35) (20)
Collateral Received/Pledged 0 0
Net Value 1,194 6,090
Liability Derivatives    
Fair Value 35 20
Amounts Offset (35) (20)
Collateral Received/Pledged 0 0
Net Value $ 0 $ 0
v3.24.1.u1
DERIVATIVE INSTRUMENTS - INCOME STATEMENT RELATED DISCLOSURES (Details) - Not Designated as Hedging Instrument - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of gain (loss) recognized in income on derivatives $ (7,534) $ 36,947 $ 23,992 $ 87,926
ES | Physical commodity contracts | Operating revenues        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Nonutility Nonutility Nonutility Nonutility
Amount of gain (loss) recognized in income on derivatives $ (3,651) $ 7,208 $ 10,379 $ 17,246
ES | Physical commodity contracts | Natural gas purchases        
Derivative Instruments, Gain (Loss) [Line Items]        
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
Amount of gain (loss) recognized in income on derivatives $ (1,424) $ (124) $ (2,010) $ (794)
ES | Financial commodity contracts        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of gain (loss) recognized in income on derivatives (2,459) 29,863 15,623 71,474
NJNG        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of gain (loss) recognized in income on derivatives (7,062) (38,497) (3,800) (98,191)
NJNG | Physical commodity contracts        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of gain (loss) recognized in income on derivatives (3,920) (203) (4,990) (28,234)
NJNG | Financial commodity contracts        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of gain (loss) recognized in income on derivatives $ (3,142) $ (38,294) $ 1,190 $ (69,957)
v3.24.1.u1
DERIVATIVE INSTRUMENTS - ADDITIONAL INFORMATION (Details)
certificate in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2024
USD ($)
certificate
Mar. 31, 2023
USD ($)
Mar. 31, 2024
USD ($)
certificate
Mar. 31, 2023
USD ($)
Sep. 30, 2023
USD ($)
certificate
Derivative [Line Items]          
Derivative, net liability position, aggregate fair value $ 1.4   $ 1.4   $ 0.1
Treasury Lock | Interest expense          
Derivative [Line Items]          
Amount of pre-tax gain (loss) reclassified from OCI into income $ (0.3) $ (0.3) $ (0.7) $ (0.7)  
Physical commodity contracts | ES          
Derivative [Line Items]          
Number of SRECs (in certificates) | certificate 1.4   1.4   1.3
v3.24.1.u1
DERIVATIVE INSTRUMENTS - VOLUME (Details) - Bcf
 6 Months Ended 12 Months Ended
Mar. 31, 2024
Sep. 30, 2023
NJNG | Long | Futures    
Derivative [Line Items]    
Notional amount 23.8 32.1
NJNG | Long | Physical Commodity    
Derivative [Line Items]    
Notional amount 5.0 12.1
ES | Long | Physical Commodity    
Derivative [Line Items]    
Notional amount   0.2
ES | Short | Futures    
Derivative [Line Items]    
Notional amount (3.8) (6.9)
ES | Short | Physical Commodity    
Derivative [Line Items]    
Notional amount (3.2)  
v3.24.1.u1
DERIVATIVE INSTRUMENTS - BROKER MARGIN DEPOSITS (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Sep. 30, 2023
NJNG | Assets, Current    
Derivative [Line Items]    
Broker margin - current assets $ 4,969 $ 5,915
ES | Assets, Current    
Derivative [Line Items]    
Broker margin - current assets 14,341 14,881
ES | Liabilities, Current    
Derivative [Line Items]    
Broker margin - Current liabilities $ 4,689 $ 8,029
v3.24.1.u1
DERIVATIVE INSTRUMENTS - CREDIT RISK EXPOSURE (Details)
$ in Thousands
 6 Months Ended
Mar. 31, 2024
USD ($)
Credit Risk Exposure [Line Items]  
Gross Credit Exposure $ 164,749
Investment grade  
Credit Risk Exposure [Line Items]  
Gross Credit Exposure 113,150
Noninvestment grade  
Credit Risk Exposure [Line Items]  
Gross Credit Exposure 9,134
Internally rated investment grade  
Credit Risk Exposure [Line Items]  
Gross Credit Exposure 19,988
Internally rated noninvestment grade  
Credit Risk Exposure [Line Items]  
Gross Credit Exposure $ 22,477
v3.24.1.u1
FAIR VALUE - DEBT (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Sep. 30, 2023
NJR    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt issuance costs $ 3,300 $ 3,700
NJNG    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt issuance costs 10,000 9,800
Level 2 | Carrying Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value 2,567,845 2,587,845
Level 2 | Fair market value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value $ 2,218,977 $ 2,106,536
v3.24.1.u1
FAIR VALUE - ADDITIONAL INFORMATION (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Sep. 30, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Finance leases $ 36,000 $ 31,400
Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Finance leases 28,300 20,900
Fair market value | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value 2,218,977 2,106,536
Solar Asset Financing    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value 284,200 278,400
Solar Asset Financing | Fair market value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value $ 282,100 $ 268,100
v3.24.1.u1
FAIR VALUE - HIERARCHY (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Sep. 30, 2023
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 $ 2,954 $ 2,641
Total assets at fair value 17,976 35,105
Liabilities:    
Total liabilities at fair value 24,516 24,112
Fair Value, Measurements, Recurring | Money market funds    
Assets:    
Assets 56 145
Fair Value, Measurements, Recurring | Physical commodity contracts    
Assets:    
Assets 2,111 7,054
Liabilities:    
Liabilities 19,676 21,115
Fair Value, Measurements, Recurring | Financial commodity contracts    
Assets:    
Assets 12,855 25,265
Liabilities:    
Liabilities 4,840 2,997
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1)    
Assets:    
Other 2,954 2,641
Total assets at fair value 15,865 28,051
Liabilities:    
Total liabilities at fair value 4,840 2,997
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets, (Level 1) | Money market funds    
Assets:    
Assets 56 145
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 12,855 25,265
Liabilities:    
Liabilities 4,840 2,997
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)    
Assets:    
Other 0 0
Total assets at fair value 2,111 7,054
Liabilities:    
Total liabilities at fair value 19,676 21,115
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 2,111 7,054
Liabilities:    
Liabilities 19,676 21,115
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Financial commodity contracts    
Assets:    
Assets 0 0
Liabilities:    
Liabilities 0 0
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
v3.24.1.u1
INVESTMENTS IN EQUITY INVESTEES (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Sep. 30, 2023
Schedule of Equity Method Investments [Line Items]    
Investments in equity method investees $ 101,778 $ 104,134
Steckman Ridge    
Schedule of Equity Method Investments [Line Items]    
Ownership percentage 50.00%  
Investments in equity method investees $ 101,800 104,100
Steckman Ridge | Related Party    
Schedule of Equity Method Investments [Line Items]    
Total outstanding principal balance of loans $ 70,400 $ 70,400
v3.24.1.u1
EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2024
Mar. 31, 2023
Earnings Per Share [Abstract]            
Net income $ 120,812 $ 89,411 $ 110,247 $ 115,921 $ 210,223 $ 226,168
Basic earnings per share            
Weighted average shares of common stock outstanding-basic (in shares) 98,377   96,893   98,123 96,689
Basic earnings per common share (usd per share) $ 1.23   $ 1.14   $ 2.14 $ 2.34
Diluted earnings per share            
Weighted average shares of common stock outstanding-basic (in shares) 98,377   96,893   98,123 96,689
Incremental shares (in shares) 725   663   716 657
Weighted average shares of common stock outstanding-diluted (in shares) 99,102   97,556   98,839 97,346
Diluted earnings per common share (usd per share) $ 1.22   $ 1.13   $ 2.13 $ 2.32
v3.24.1.u1
DEBT - CREDIT FACILITIES AND SHORT-TERM DEBT (Details) - USD ($)
 6 Months Ended
Mar. 31, 2024
Sep. 30, 2023
NJR | Letter of Credit on Behalf of NJRES    
Line of Credit Facility [Line Items]    
Letters of credit outstanding, amount $ 9,300,000 $ 5,700,000
NJNG | Letter of Credit    
Line of Credit Facility [Line Items]    
Letters of credit outstanding, amount $ 700,000 700,000
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]    
Total borrowing capacity $ 650,000,000 650,000,000
Loans outstanding $ 146,150,000 $ 217,300,000
Weighted average interest rate 6.52% 6.53%
Remaining borrowing capacity $ 494,519,000 $ 426,967,000
Revolving Credit Facility | Committed Credit Facilities Due September 2027 | NJNG    
Line of Credit Facility [Line Items]    
Total borrowing capacity 250,000,000 250,000,000
Loans outstanding $ 50,000,000 $ 34,800,000
Weighted average interest rate 5.48% 5.48%
Remaining borrowing capacity $ 199,269,000 $ 214,469,000
v3.24.1.u1
DEBT - LONG TERM DEBT (Details) - USD ($)
 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Sep. 30, 2023
Debt Instrument [Line Items]      
Proceeds from sale leaseback transactions - natural gas meters $ 8,814,000 $ 8,441,000  
Proceeds from sale leaseback transactions - solar 24,394,000 61,808,000  
CEV      
Debt Instrument [Line Items]      
Proceeds from sale leaseback transactions - solar 24,400,000 61,800,000  
NJNG      
Debt Instrument [Line Items]      
Proceeds from sale leaseback transactions - natural gas meters $ 8,800,000 $ 8,400,000  
NJNG | Senior Notes      
Debt Instrument [Line Items]      
Face amount     $ 100,000,000
NJNG | Senior Notes | Unsecured Senior Notes 5.56%      
Debt Instrument [Line Items]      
Face amount     $ 50,000,000
Stated interest rate     5.56%
NJNG | Senior Notes | Unsecured Senior Notes 5.85%      
Debt Instrument [Line Items]      
Face amount     $ 50,000,000
Stated interest rate     5.85%
v3.24.1.u1
EMPLOYEE BENEFIT PLANS - ADDITIONAL INFORMATION (Details) - USD ($)
 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Defined Benefit Plan Disclosure [Line Items]    
Amortization period for plan amendment 8 years  
Pension    
Defined Benefit Plan Disclosure [Line Items]    
Employer contributions $ 0 $ 0
v3.24.1.u1
EMPLOYEE BENEFIT PLANS - SUMMARY OF CHANGE IN FUNDED STATUS AND LIABILITIES (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Mar. 31, 2024
Jan. 02, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Sep. 30, 2023
Postemployment employee (liability)            
Noncurrent $ (42,333)     $ (42,333)   $ (102,528)
OPEB            
Change in Benefit Obligation            
Benefit obligation at beginning of period   $ 203,406   203,406 $ 173,217 173,217
Service cost 255 642 $ 618 897 1,236 2,471
Interest cost $ 1,808 2,902 $ 2,287 4,710 4,573 9,146
Plan amendments   (81,283)       0
Plan participants’ contributions   0       552
Actuarial loss   26,871       25,363
Benefits paid, net of retiree subsidies received   (1,614)       (7,343)
Benefit obligation at end of period   150,924       203,406
Change in plan assets            
Fair value of plan assets at beginning of period   106,783   $ 106,783 $ 99,736 99,736
Actual return on plan assets   8,995       9,826
Employer contributions   3,181       4,192
Benefits paid, net of plan participants’ contributions   (1,612)       (6,971)
Fair value of plan assets at end of period   117,347       106,783
Funded status   (33,577)       (96,623)
Postemployment employee (liability)            
Current   (1,613)       (4,201)
Noncurrent   (31,964)       (92,422)
Total   $ (33,577)       $ (96,623)
v3.24.1.u1
EMPLOYEE BENEFIT PLANS - REGULATORY ASSETS AND AOCI (Details) - OPEB - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Jan. 02, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Jan. 01, 2024
Sep. 30, 2023
Amounts amortized to net periodic costs:              
Net actuarial loss $ (1,255)   $ 0 $ (1,751) $ 0    
Regulatory Assets              
Regulatory Assets and Accumulated Other Comprehensive Income (Loss)              
Regulatory Assets, Balance at beginning of period   $ 30,046   30,046      
Net actuarial loss   12,706          
Prior service cost   (61,244)       $ (61,244) $ 0
Amounts amortized to net periodic costs:              
Net actuarial loss   (355)          
Regulatory Assets, Balance at end of period   (18,847)          
Accumulated Other Comprehensive Income (Loss)              
Regulatory Assets and Accumulated Other Comprehensive Income (Loss)              
Accumulated Other Comprehensive Income (Loss), Balance at beginning of period   5,498   $ 5,498      
Net actuarial loss   7,027          
Prior service cost   (20,039)       $ (20,039) $ 0
Amounts amortized to net periodic costs:              
Net actuarial loss   (141)          
Accumulated Other Comprehensive Income (Loss), Balance at end of period   $ (7,655)          
v3.24.1.u1
EMPLOYEE BENEFIT PLANS - AMOUNTS NOT YET RECOGNIZED AS NET PERIODIC COST (Details) - OPEB - USD ($)
$ in Thousands
Jan. 02, 2024
Jan. 01, 2024
Sep. 30, 2023
Regulatory Assets      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Net actuarial loss   $ 42,397 $ 30,046
Prior service cost $ (61,244) (61,244) 0
Regulatory Assets, Total (18,847) (18,847) 30,046
Accumulated Other Comprehensive Income (Loss)      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Net actuarial loss   12,384 5,498
Prior service cost (20,039) (20,039) 0
Accumulated Other Comprehensive Income (Loss), Total $ (7,655) $ (7,655) $ 5,498
v3.24.1.u1
EMPLOYEE BENEFIT PLANS - COMPONENTS OF NET PERIODIC COST (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Mar. 31, 2024
Jan. 02, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Sep. 30, 2023
Pension            
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]            
Service cost $ 1,244   $ 1,351 $ 2,488 $ 2,701  
Interest cost 4,060   3,793 8,120 7,587  
Expected return on plan assets (5,086)   (4,993) (10,173) (9,986)  
Recognized actuarial loss 30   75 59 150  
Prior service cost (credit) amortization 15   26 31 51  
Net periodic benefit cost 263   252 525 503  
OPEB            
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]            
Service cost 255 $ 642 618 897 1,236 $ 2,471
Interest cost 1,808 $ 2,902 2,287 4,710 4,573 $ 9,146
Expected return on plan assets (2,020)   (1,681) (3,878) (3,361)  
Recognized actuarial loss 1,255   0 1,751 0  
Prior service cost (credit) amortization (3,337)   0 (3,337) 0  
Net periodic benefit cost $ (2,039)   $ 1,224 $ 143 $ 2,448  
v3.24.1.u1
EMPLOYEE BENEFIT PLANS - WEIGHTED AVERAGE ASSUMPTIONS (Details) - OPEB
Jan. 01, 2024
Sep. 30, 2023
Represented    
Obligations:    
Discount rate 5.02% 5.97%
Compensation increase 3.00% 3.00%
Nonrepresented    
Obligations:    
Discount rate 5.01% 5.94%
Compensation increase 3.50% 3.50%
v3.24.1.u1
INCOME TAXES (Details) - USD ($)
$ in Millions
 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Sep. 30, 2023
Income Tax Contingency [Line Items]      
Forecasted effective tax rate 21.70% 22.10%  
Revaluation of deferred tax assets and liabilities $ (1.2) $ (0.6)  
Actual effective tax rate 21.30% 21.90%  
ITC carryforward $ 179.5   $ 191.2
Effective term 20 years    
Operating loss carryforward, valuation allowance $ 0.7   0.7
State      
Income Tax Contingency [Line Items]      
Net operating loss carryforwards $ 609.1   $ 631.2
State | Minimum      
Income Tax Contingency [Line Items]      
Effective term 7 years    
State | Maximum      
Income Tax Contingency [Line Items]      
Effective term 20 years    
v3.24.1.u1
LEASES - ADDITIONAL INFORMATION (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Sep. 30, 2023
Jul. 31, 2021
Lessee, Lease, Description [Line Items]            
ROU asset obtained in exchange for operating lease liability $ 2,600 $ 300 $ 4,100 $ 400    
Proceeds from sale leaseback transactions - natural gas meters     8,814 8,441    
ROU asset obtained in exchange for finance lease liability $ 0 $ 0 $ 0      
Weighted average remaining lease term, operating lease 28 years 7 months 6 days   28 years 7 months 6 days   29 years 2 months 12 days  
Operating lease, discount rate 3.60%   3.60%   3.50%  
Weighted average remaining lease term, finance lease 3 years 4 months 24 days   3 years 4 months 24 days   3 years 3 months 18 days  
Finance lease, discount rate 3.30%   3.30%   2.70%  
NJNG            
Lessee, Lease, Description [Line Items]            
Proceeds from sale leaseback transactions - natural gas meters     $ 8,800 $ 8,400    
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 11 years   11 years      
Meter License | Minimum            
Lessee, Lease, Description [Line Items]            
Term of contract 6 years   6 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 9 years   9 years      
Storage and Capacity            
Lessee, Lease, Description [Line Items]            
Term of contract 50 years   50 years      
v3.24.1.u1
LEASES - LEASE COST (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Leases [Abstract]        
Operating lease cost $ 2,524 $ 2,307 $ 5,064 $ 4,724
Amortization of right-of-use assets 552 540 1,080 1,025
Interest on lease liabilities 236 298 488 533
Total finance lease cost 788 838 1,568 1,558
Variable lease cost 246 272 446 495
Total lease cost $ 3,558 $ 3,417 $ 7,078 $ 6,777
v3.24.1.u1
LEASES - SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($)
$ in Thousands
 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Leases [Abstract]    
Operating cash flows for operating leases $ 4,199 $ 3,652
Operating cash flows for finance leases 488 533
Financing cash flows for finance leases $ 3,875 $ 3,577
v3.24.1.u1
LEASES - RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Sep. 30, 2023
Noncurrent    
Operating lease assets $ 177,176 $ 175,740
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Utility plant, at cost Utility plant, at cost
Finance lease assets $ 27,168 $ 28,248
Total lease assets 204,344 203,988
Current    
Operating lease liabilities $ 4,780 $ 4,772
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 $ 8,816 $ 8,477
Noncurrent    
Operating lease liabilities $ 150,971 $ 148,023
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Long-term debt Long-term debt
Finance lease liabilities $ 18,661 $ 22,875
Total lease liabilities $ 183,228 $ 184,147
v3.24.1.u1
COMMITMENTS AND CONTINGENT LIABILITIES - SCHEDULE OF FUTURE COMMITTED EXPENSES (Details)
$ in Thousands
 6 Months Ended
Mar. 31, 2024
USD ($)
Long-term Purchase Commitment [Line Items]  
Current charges recoverable through BGSS $ 227,100
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years  
2024 158,549
2025 308,894
2026 213,280
2027 171,648
2028 137,628
Thereafter 990,700
ES  
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years  
2024 51,904
2025 73,577
2026 53,530
2027 31,277
2028 18,792
Thereafter 23,791
ES | Natural gas purchases  
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years  
2024 11,801
2025 1,964
2026 0
2027 0
2028 0
Thereafter 0
ES | Storage demand fees  
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years  
2024 8,685
2025 15,743
2026 11,413
2027 5,440
2028 3,491
Thereafter 6,780
ES | Pipeline demand fees  
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years  
2024 31,418
2025 55,870
2026 42,117
2027 25,837
2028 15,301
Thereafter 17,011
Annual pipeline obligation to be paid over 10 year period 4,000
NJNG  
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years  
2024 106,645
2025 235,317
2026 159,750
2027 140,371
2028 118,836
Thereafter 966,909
NJNG | Natural gas purchases  
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years  
2024 6,546
2025 0
2026 0
2027 0
2028 0
Thereafter 0
NJNG | Storage demand fees  
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years  
2024 22,541
2025 33,105
2026 15,963
2027 11,155
2028 4,874
Thereafter 0
NJNG | Pipeline demand fees  
Natural Gas Purchases and Future Demand Fees, Next Five Fiscal Years  
2024 77,558
2025 202,212
2026 143,787
2027 129,216
2028 113,962
Thereafter $ 966,909
Minimum | ES  
Long-term Purchase Commitment [Line Items]  
Storage and pipeline capacity, contract term 1 year
Maximum | ES  
Long-term Purchase Commitment [Line Items]  
Storage and pipeline capacity, contract term 10 years
v3.24.1.u1
COMMITMENTS AND CONTINGENT LIABILITIES - LEGAL PROCEEDINGS (Details) - USD ($)
$ in Thousands
 6 Months Ended
Mar. 31, 2024
Sep. 30, 2023
Site Contingency [Line Items]    
Manufactured gas plant remediation $ 157,813 $ 169,390
Recovery from third party of environmental remediation cost, period 7 years  
Regulatory assets $ 535,104 $ 584,830
Expended, net of recoveries    
Site Contingency [Line Items]    
Regulatory assets 69,200  
Minimum    
Site Contingency [Line Items]    
Product liability contingency, loss exposure in excess of accrual, best estimate 137,300  
Maximum    
Site Contingency [Line Items]    
Product liability contingency, loss exposure in excess of accrual, best estimate $ 201,500  
v3.24.1.u1
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT INCOME TO CONSOLIDATED (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Segment Reporting Information [Line Items]        
Operating revenues $ 657,913 $ 644,027 $ 1,125,123 $ 1,367,594
Depreciation and amortization 40,075 38,090 80,362 74,773
Interest income 2,036 2,236 4,062 4,195
Interest expense, net of capitalized interest 31,621 30,261 63,094 59,752
Income tax provision (benefit) 33,947 30,586 56,883 63,564
Equity in earnings of affiliates 738 1,131 2,398 2,077
Net financial earnings (loss) 138,576 112,310 211,020 222,594
Capital expenditures 122,680 117,188 237,302 263,111
ES        
Segment Reporting Information [Line Items]        
Operating revenues 9,500 9,500 19,000 29,500
Operating Segments        
Segment Reporting Information [Line Items]        
Operating revenues 643,161 630,762 1,095,537 1,340,076
Depreciation and amortization 40,669 37,866 80,727 74,331
Interest income 3,178 2,440 6,254 4,523
Interest expense, net of capitalized interest 31,413 30,072 62,670 59,441
Income tax provision (benefit) 28,790 27,431 51,120 61,984
Equity in earnings of affiliates 85 977 1,078 1,886
Net financial earnings (loss) 141,104 114,893 214,541 224,751
Capital expenditures 122,550 116,428 235,816 262,211
Operating Segments | NJNG        
Segment Reporting Information [Line Items]        
Operating revenues 462,863 400,500 755,956 757,909
Depreciation and amortization 27,464 25,319 54,381 50,209
Interest income 517 376 1,095 789
Interest expense, net of capitalized interest 14,850 13,879 29,601 27,588
Income tax provision (benefit) 24,476 23,924 35,132 38,307
Equity in earnings of affiliates 0 0 0 0
Net financial earnings (loss) 107,095 100,697 158,539 155,361
Capital expenditures 97,710 92,600 177,425 174,671
Operating Segments | CEV        
Segment Reporting Information [Line Items]        
Operating revenues 9,325 14,406 44,620 27,198
Depreciation and amortization 6,931 6,465 13,853 12,041
Interest income 0 0 0 0
Interest expense, net of capitalized interest 7,182 7,316 14,629 13,211
Income tax provision (benefit) (1,594) (3,005) 1,537 (4,842)
Equity in earnings of affiliates 0 0 0 0
Net financial earnings (loss) (5,616) (9,379) 4,906 (12,961)
Capital expenditures 11,317 13,706 37,083 57,699
Operating Segments | ES        
Segment Reporting Information [Line Items]        
Operating revenues 148,604 196,553 249,405 509,952
Depreciation and amortization 56 62 113 119
Interest income 143 380 271 649
Interest expense, net of capitalized interest 3,513 2,749 6,639 5,807
Income tax provision (benefit) 5,289 5,916 12,800 25,980
Equity in earnings of affiliates 0 0 0 0
Net financial earnings (loss) 37,644 21,125 45,475 73,658
Capital expenditures 0 0 0 0
Operating Segments | S&T        
Segment Reporting Information [Line Items]        
Operating revenues 22,369 19,303 45,556 45,017
Depreciation and amortization 6,218 6,020 12,380 11,962
Interest income 2,518 1,684 4,888 3,085
Interest expense, net of capitalized interest 5,868 6,128 11,801 12,835
Income tax provision (benefit) 619 596 1,651 2,539
Equity in earnings of affiliates 85 977 1,078 1,886
Net financial earnings (loss) 1,981 2,450 5,621 8,693
Capital expenditures 13,523 10,122 21,308 29,841
Intersegment Eliminations        
Segment Reporting Information [Line Items]        
Operating revenues (2,731) 2,099 (2,852) 11,943
Intersegment Eliminations | NJNG        
Segment Reporting Information [Line Items]        
Operating revenues 338 338 675 675
Intersegment Eliminations | CEV        
Segment Reporting Information [Line Items]        
Operating revenues 0 0 0 0
Intersegment Eliminations | ES        
Segment Reporting Information [Line Items]        
Operating revenues (3,742) 177 (4,875) 8,560
Intersegment Eliminations | S&T        
Segment Reporting Information [Line Items]        
Operating revenues 673 1,584 1,348 2,708
Corporate, Non-Segment        
Segment Reporting Information [Line Items]        
Operating revenues 14,752 13,265 29,586 27,518
Depreciation and amortization 271 224 500 442
Interest income 332 734 688 1,388
Interest expense, net of capitalized interest 208 189 424 311
Income tax provision (benefit) 520 488 468 705
Equity in earnings of affiliates 0 0 0 0
Net financial earnings (loss) 384 813 (216) 784
Capital expenditures 130 760 1,486 900
Corporate Reconciling Items And Eliminations        
Segment Reporting Information [Line Items]        
Operating revenues 153 183 153 196
Eliminations        
Segment Reporting Information [Line Items]        
Operating revenues   (2,282)   (12,139)
Depreciation and amortization (865) 0 (865) 0
Interest income (1,474) (938) (2,880) (1,716)
Interest expense, net of capitalized interest 0 0 0 0
Income tax provision (benefit) 4,637 2,667 5,295 875
Equity in earnings of affiliates 653 154 1,320 191
Net financial earnings (loss) (2,912) (3,396) (3,305) (2,941)
Capital expenditures 0 $ 0 0 $ 0
Eliminations And Reconciling Items        
Segment Reporting Information [Line Items]        
Operating revenues $ 2,578   $ 2,699  
v3.24.1.u1
REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Sep. 30, 2023
Segment Reporting, Asset Reconciling Item [Line Items]    
Assets $ 6,647,377 $ 6,537,496
Operating Segments    
Segment Reporting, Asset Reconciling Item [Line Items]    
Assets 6,768,843 6,679,140
Operating Segments | NJNG    
Segment Reporting, Asset Reconciling Item [Line Items]    
Assets 4,527,458 4,414,829
Operating Segments | CEV    
Segment Reporting, Asset Reconciling Item [Line Items]    
Assets 1,124,392 1,128,577
Operating Segments | ES    
Segment Reporting, Asset Reconciling Item [Line Items]    
Assets 104,094 123,775
Operating Segments | S&T    
Segment Reporting, Asset Reconciling Item [Line Items]    
Assets 1,012,899 1,011,959
Corporate, Non-Segment    
Segment Reporting, Asset Reconciling Item [Line Items]    
Assets 171,594 171,275
Intercompany Assets    
Segment Reporting, Asset Reconciling Item [Line Items]    
Assets $ (293,060) $ (312,919)
v3.24.1.u1
REPORTING SEGMENT AND OTHER OPERATIONS DATA - NET FINANCIAL EARNINGS (LOSS) RECONCILIATION (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2024
Mar. 31, 2023
Segment Reporting [Abstract]            
Net financial earnings $ 138,576   $ 112,310   $ 211,020 $ 222,594
Less:            
Unrealized loss (gain) on derivative instruments and related transactions 25,457   13,971   20,057 (17,532)
Tax effect (6,049)   (3,320)   (4,767) 4,167
Effects of economic hedging related to natural gas inventory (2,845)   (11,203)   (19,073) 12,769
Tax effect 676   2,662   4,533 (3,035)
Gain on equity method investment 0   (200)   0 (200)
Tax effect 0   50   0 50
NFE tax adjustment 525   103   47 207
NET INCOME $ 120,812 $ 89,411 $ 110,247 $ 115,921 $ 210,223 $ 226,168
v3.24.1.u1
RELATED PARTY TRANSACTIONS - ADDITIONAL INFORMATION (Details)
$ in Millions
 6 Months Ended
Apr. 01, 2020
USD ($)
Bcf
Mar. 31, 2024
dth / d
numberOfAgreement
agreement
Bcf
Related Party Transaction [Line Items]    
Number of asset management agreements | agreement   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]    
Number of transportation agreements | numberOfAgreement   2
NJNG to Adelphia Affiliate | Transportation Precedent Agreement One    
Related Party Transaction [Line Items]    
Transportation capacity under precedent agreement (in bcf per day) | dth / d   130,000
Transportation precedent agreement term   5 years
NJNG to Adelphia Affiliate | Transportation Precedent Agreement Two    
Related Party Transaction [Line Items]    
Transportation capacity under precedent agreement (in bcf per day) | dth / d   130,000
Transportation precedent agreement term   15 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 | Sublease Agreement One    
Related Party Transaction [Line Items]    
Sublease agreement term   15 years
NJNG and Clean Energy Ventures to PPA | Sublease Agreement Two    
Related Party Transaction [Line Items]    
Sublease agreement term   20 years
NJNG To NJR Subsidiaries    
Related Party Transaction [Line Items]    
Term of contract   16 years
v3.24.1.u1
RELATED PARTY TRANSACTIONS - DEMAND FEES (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Sep. 30, 2023
Related Party Transaction [Line Items]          
Demand fees payable $ 859   $ 859   $ 859
Related Party          
Related Party Transaction [Line Items]          
Demand fees expense recognized pertaining to related party agreement 1,799 $ 1,770 3,678 $ 3,597  
Demand fees payable 859   859   859
Related Party | NJNG to Steckman RIdge Affiliate          
Related Party Transaction [Line Items]          
Demand fees expense recognized pertaining to related party agreement 1,585 1,615 3,240 3,270  
Demand fees payable 778   778   775
Related Party | NJRES to Steckman Ridge Affiliate          
Related Party Transaction [Line Items]          
Demand fees expense recognized pertaining to related party agreement 214 $ 155 438 $ 327  
Demand fees payable $ 81   $ 81   $ 84