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INCOME TAXES (Tables) | 12 Months Ended
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Sep. 30, 2014
Income Tax Disclosure [Abstract] |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory rate of 35 percent to the effective rate from operations for the fiscal years ended September 30, 2014, 2013 and 2012 is as follows:
(Thousands) | 2014 | 2013 | 2012
Statutory income tax expense | $ | 67,834 |  | $ | 52,661 |  | $ | 35,213 |
Change resulting from |  |  |
State income taxes | 7,785 |  | 5,168 |  | 5,434 |
Depreciation and cost of removal | (4,437 | ) | (5,769 | ) | (3,999 | )
Investment tax credits | (23,083 | ) | (18,749 | ) | (34,397 | )
Basis adjustment of solar assets due to ITC | 3,959 |  | 3,225 |  | 5,974 |
Other | (218 | ) | (961 | ) | (496 | )
Income tax provision | $ | 51,840 |  | $ | 35,575 |  | $ | 7,729 |
Effective income tax rate | 26.8 | % | 23.6 | % | 7.7 | %
Schedule of Components of Income Tax Expense (Benefit) | The income tax provision (benefit) from operations consists of the following:
(Thousands) | 2014 | 2013 | 2012
Current |  |  |
Federal | $ | 37,904 |  | $ | 12,248 |  | $ | 14,983 |
State | 11,096 |  | 1,763 |  | 4,025 |
Deferred |  |  |
Federal | 24,963 |  | 34,127 |  | 18,757 |
State | 960 |  | 6,186 |  | 4,361 |
Investment tax credits | (23,083 | ) | (18,749 | ) | (34,397 | )
Income tax provision | $ | 51,840 |  | $ | 35,575 |  | $ | 7,729 |
Schedule of Deferred Tax Assets and Liabilities | The temporary differences, which give rise to deferred tax assets and (liabilities), consist of the following:
(Thousands) | 2014 |  | 2013
Deferred tax assets |  |  |
Investment tax credits | $ | 10,341 |  | (1) | $ | 43,033 |
Deferred service contract revenue | 3,299 |  |  | 3,231 |
Incentive compensation | 14,632 |  |  | 6,798 |
Fair value of derivatives | 14,350 |  |  | — |
State net operating losses | 8,962 |  |  | 6,118 |
Conservation incentive plan | 2,312 |  |  | — |
Other | 10,078 |  |  | 5,718 |
Total deferred tax assets | $ | 63,974 |  |  | $ | 64,898 |
Deferred tax liabilities |  |  |
Property related items | $ | (371,017 | ) |  | $ | (329,921 | )
Remediation costs | (12,429 | ) |  | (18,881 | )
Equity investments | (35,474 | ) |  | (33,368 | )
Post employment benefits | (10,268 | ) |  | (17,455 | )
Fair value of derivatives | — |  |  | (6,258 | )
Conservation incentive plan | — |  |  | (7,611 | )
Under-recovered gas costs | (5,056 | ) |  | (383 | )
Other | (11,751 | ) |  | (13,699 | )
Total deferred tax liabilities | $ | (445,995 | ) |  | $ | (427,576 | )
Total net deferred tax liabilities | $ | (382,021 | ) |  | $ | (362,678 | )
(1) Includes $2.8 million for NJNG, which is being amortized over the life of the related assets and $7.5 million for NJRCEV, which is ITC carryforward.
Summary of Operating Loss Carryforwards | The deferred tax assets will expire as follows:
(Thousands) |
Fiscal years 2015 - 2018 | $ | 78 |
Fiscal years 2019 - 2023 | — |
Fiscal Years 2024 - 2028 | — |
Fiscal Years 2029 - 2034 | 8,946 |
Total | $ | 9,024 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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