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DERIVATIVE INSTRUMENTS (Tables)
 12 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table reflects the fair value of NJR's derivative assets and liabilities recognized on the Consolidated Balance Sheets as of September 30:
 
 
 
Fair Value
 
 
 
2014
 
2013
(Thousands)
Balance Sheet Location
Asset
Derivatives
Liability
Derivatives
Asset
Derivatives
Liability
Derivatives
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
NJRES:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
Derivatives - current
 
$
—

 
$
155

 
$
16

 
$
3

 
Derivatives - noncurrent
 
—

 
—

 
—

 
2

Fair value of derivatives designated as hedging instruments
 
$
—

 
$
155

 
$
16

 
$
5

 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
NJNG:
 
 
 
 
 
 
 
 
 
Financial commodity contracts
Derivatives - current
 
$
2,525

 
$
2,205

 
$
3,502

 
$
2,045

 
Derivatives - noncurrent
 
82

 
25

 
121

 
140

NJRES:
 
 
 
 
 
 
 
 
 
Physical forward commodity contracts
Derivatives - current
 
15,391

 
30,778

 
11,282

 
14,573

 
Derivatives - noncurrent
 
35

 
132

 
541

 
22

Financial commodity contracts
Derivatives - current
 
46,307

 
46,725

 
38,527

 
23,769

 
Derivatives - noncurrent
 
5,537

 
6,533

 
2,099

 
2,294

Fair value of derivatives not designated as hedging instruments
 
$
69,877

 
$
86,398

 
$
56,072

 
$
42,843

Total fair value of derivatives
 
 
$
69,877

 
$
86,553

 
$
56,088

 
$
42,848
Offsetting Assets and Liabilities
The tables below summarize the reported gross amounts, the amounts that NJR has the right to offset but elects not to, financial collateral, as well as the net amounts NJR could present in the Unaudited Condensed Consolidated Balance Sheets but elects not to.
(Thousands)
Amounts Presented in Balance Sheets (1)
Offsetting Derivative Instruments (2)
Financial Collateral Received/Pledged (3)
Net Amounts (4)
As of September 30, 2014:
 
 
 
 
 
 
 
 
Derivative assets:
 
 
 
 
 
 
 
 
NJRES
 
 
 
 
 
 
 
 
Physical forward commodity contracts
 
$
15,426

 
$
(11,531
)
 
$
—

 
$
3,895

Financial commodity contracts
 
51,844

 
(51,844
)
 
—

 
—

Total NJRES
 
$
67,270

 
$
(63,375
)
 
$
—

 
$
3,895

NJNG
 
 
 
 
 
 
 
 
Financial commodity contracts
 
$
2,607

 
$
(2,230
)
 
$
(377
)
 
$
—

Derivative liabilities:
 
 
 
 
 
 
 
 
NJRES
 
 
 
 
 
 
 
 
Physical forward commodity contracts
 
$
30,910

 
$
(12,058
)
 
$
(1,200
)
 
$
17,652

Financial commodity contracts
 
53,258

 
(51,844
)
 
(1,414
)
 
—

Foreign currency contracts
 
155

 
—

 
—

 
155

Total NJRES
 
$
84,323

 
$
(63,902
)
 
$
(2,614
)
 
$
17,807

NJNG
 
 
 
 
 
 
 
 
Financial commodity contracts
 
$
2,230

 
$
(2,230
)
 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
As of September 30, 2013:
 
 
 
 
 
 
 
 
Derivative assets:
 
 
 
 
 
 
 
 
NJRES
 
 
 
 
 
 
 
 
Physical forward commodity contracts
 
$
11,823

 
$
(3,549
)
 
$
(100
)
 
$
8,174

Financial commodity contracts
 
40,626

 
(26,063
)
 
6,870

 
21,433

Foreign currency contracts
 
16

 
(5
)
 
—

 
11

Total NJRES
 
$
52,465

 
$
(29,617
)
 
$
6,770

 
$
29,618

NJNG
 
 
 
 
 
 
 
 
Financial commodity contracts
 
$
3,623

 
$
(2,185
)
 
$
214

 
$
1,652

Derivative liabilities:
 
 
 
 
 
 
 
 
NJRES
 
 
 
 
 
 
 
 
Physical forward commodity contracts
 
$
14,595

 
$
(3,549
)
 
$
(500
)
 
$
10,546

Financial commodity contracts
 
26,063

 
(26,063
)
 
—

 
—

Foreign currency contracts
 
5

 
(5
)
 
—

 
—

Total NJRES
 
$
40,663

 
$
(29,617
)
 
$
(500
)
 
$
10,546

NJNG
 
 
 
 
 
 
 
 
Financial commodity contracts
 
$
2,185

 
$
(2,185
)
 
$
—

 
$
—

(1)
Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20.
(2)
Offsetting derivative instruments include: transactions with NAESB netting election, transactions held by FCM's 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.
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following table reflects the effect of derivative instruments on the Consolidated Statements of Operations as of September 30:
(Thousands)
Location of gain (loss) recognized in income on derivatives
Amount of gain (loss) recognized
in income on derivatives
Derivatives not designated as hedging instruments:
2014
 
2013
 
2012
NJRES:
 
 
 
 
 
 
Physical commodity contracts
Operating revenues
$
(48,977
)
 
$
1,117

 
$
(7,187
)
Physical commodity contracts
Gas purchases
(83,847
)
 
(17,194
)
 
12,967

Financial commodity contracts
Gas purchases
(118,872
)
 
41,183

 
81,872

Total unrealized and realized (losses) gains
$
(251,696
)
 
$
25,106

 
$
87,652
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
The following table reflects the effect of derivative instruments designated as cash flow hedges on OCI as of September 30:
(Thousands)
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) (1)
Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion)
Amount of Gain or (Loss) Recognized on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivatives in cash flow hedging relationships:
2014
2013
2014
2013
2014
2013
Foreign currency contracts
$
(432
)
$
(44
)
$
266

$
(18
)
$
—

$
—

(1)
The settlement of foreign currency transactions over the next 12 months is expected to result in the reclassification of $(155,000) from OCI into earnings. The maximum tenor is April 2015.
Schedule of Derivative Instruments
NJNG and NJRES had the following outstanding long (short) derivatives as of September 30:
 
 
 
Volume (Bcf)
 
 
 
2014
2013
NJNG
Futures
 
17.3

22.6

NJRES
Futures
 
(62.1
)
(64.2
)
 
Financial Options
 
1.2

1.5

 
Physical
 
28.6

7.3
Schedule of Due to (from) Broker-Dealers and Clearing Organizations
The Company maintains separate broker margin accounts for NJNG and NJRES. The balances as of September 30, by company, are as follows:
(Thousands)
Balance Sheet Location
2014
2013
NJNG
Broker margin - Current assets
$
1,057

$
213

NJRES
Broker margin - Current assets
$
26,282

$
6,368
Schedules of Concentration of Risk, by Risk Factor
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.
(Thousands)
Gross Credit
Exposure
Investment grade
 
$
143,070

 
Noninvestment grade
 
6,462

 
Internally-rated investment grade
 
9,334

 
Internally-rated noninvestment grade
 
9,366

 
Total
 
$
168,232