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RELATED PARTY TRANSACTIONS
 12 Months Ended
Sep. 30, 2014
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS

NJRES may periodically enter into storage or park and loan agreements with its affiliated FERC-regulated natural gas storage facility, Steckman Ridge, or transportation agreements with its affiliated FERC-regulated interstate pipeline, Iroquois. As of September 30, 2014, NJRES has entered into storage and park and loan transactions with Steckman Ridge for varying terms, all of which expire by October 31, 2020. Additionally, NJRES has transportation capacity with Iroquois that expires by March 31, 2019. Demand fees, net of eliminations, associated with both Steckman Ridge and Iroquois were $6.2 million, $6.1 million and $6.6 million during the fiscal years ended September 30, 2014, 2013 and 2012, respectively. As of September 30, 2014, NJRES had demand fees payable of $187,000 and $389,000 to Steckman Ridge and Iroquois, respectively, which are included in gas purchases payable. As of September 30, 2013, fees payable to Steckman Ridge and Iroquois were $159,000 and $390,000 respectively.

In January 2010, NJNG entered into a 10-year agreement effective April 1, 2010, for 3 Bcf of firm storage capacity with Steckman Ridge. Under the terms of the agreement, NJNG incurs demand fees, at market rates, of approximately $9.3 million annually, a portion of which is eliminated in consolidation. These fees are recoverable through NJNG's BGSS mechanism and are included in regulatory assets. Additionally, NJNG has transportation capacity with Iroquois that expires by January 31, 2019. Demand fees, net of eliminations, associated with both Steckman Ridge and Iroquois were $6.4 million, $5.9 million and $5.6 million during the fiscal years ended September 30, 2014, 2013and 2012, respectively. NJNG had demand fees payable to Steckman Ridge in the amount of $775,000 as of September 30, 2014 and $775,000 as of September 30, 2013. NJNG had fees payable to Iroquois of $48,000 and $61,000 as of September 30, 2014 and September 30, 2013, respectively.

NJNG and NJRES have entered into various asset management agreements. Under the terms of these agreements, NJNG releases certain transportation and storage contracts to NJRES for the entire term of the agreements. NJNG also sold natural gas in storage at cost to NJRES. In return, NJNG has the option to purchase index priced gas and storage inventory gas from NJRES at NJNG's citygate and other delivery locations to maintain operational reliability. As of September 30, 2014, NJNG and NJRES had four asset management agreements with expiration dates ranging from October 2014 through March 2016.

In the fourth quarter of fiscal 2014, NJNG entered into a precedent agreement for transportation capacity of 180,000 dths per day with PennEast with an estimated service date of November 1, 2017.