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DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended
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Jun. 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 Unaudited Condensed Consolidated Balance Sheets as of:
|  |  | Fair Value
|  |  | June 30, 2014 |  | September 30, 2013
(Thousands) | Balance Sheet Location | Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |
NJRES: |  |  |  |  |  |  |  |  |
Foreign currency contracts | Derivatives - current |  | $ | 1 |  |  | $ | 29 |  |  | $ | 16 |  |  | $ | 3 |
| Derivatives - noncurrent |  | — |  |  | — |  |  | — |  |  | 2 |
Fair value of derivatives designated as hedging instruments |  | $ | 1 |  |  | $ | 29 |  |  | $ | 16 |  |  | $ | 5 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
NJNG: |  |  |  |  |  |  |  |  |
Financial derivative contracts | Derivatives - current |  | $ | 7,952 |  |  | $ | 2,201 |  |  | $ | 3,502 |  |  | $ | 2,045 |
| Derivatives - noncurrent |  | 3 |  |  | — |  |  | 121 |  |  | 140 |
NJRES: |  |  |  |  |  |  |  |  |
Physical forward commodity contracts | Derivatives - current |  | 12,214 |  |  | 37,177 |  |  | 11,282 |  |  | 14,573 |
| Derivatives - noncurrent |  | 90 |  |  | 167 |  |  | 541 |  |  | 22 |
Financial derivative contracts | Derivatives - current |  | 32,452 |  |  | 39,142 |  |  | 38,527 |  |  | 23,769 |
| Derivatives - noncurrent |  | 2,737 |  |  | 5,350 |  |  | 2,099 |  |  | 2,294 |
Fair value of derivatives not designated as hedging instruments |  | $ | 55,448 |  |  | $ | 84,037 |  |  | $ | 56,072 |  |  | $ | 42,843 |
Total fair value of derivatives |  |  | $ | 55,449 |  |  | $ | 84,066 |  |  | $ | 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 June 30, 2014: |  |  |  |  |  |  |  |
Derivative assets: |  |  |  |  |  |  |  |
NJRES |  |  |  |  |  |  |  |
Physical forward commodity contracts |  | $ | 12,304 |  |  | $ | (7,261 | ) |  | $ | — |  |  | $ | 5,043 |
Financial commodity contracts |  | 35,189 |  |  | (35,189 | ) |  | — |  |  | — |
Foreign currency contracts |  | 1 |  |  | (1 | ) |  | — |  |  | — |
Total NJRES |  | $ | 47,494 |  |  | $ | (42,451 | ) |  | $ | — |  |  | $ | 5,043 |
NJNG |  |  |  |  |  |  |  |
Financial commodity contracts |  | $ | 7,955 |  |  | $ | (2,201 | ) |  | $ | 1,256 |  |  | $ | 7,010 |
Derivative liabilities: |  |  |  |  |  |  |  |
NJRES |  |  |  |  |  |  |  |
Physical forward commodity contracts |  | $ | 37,344 |  |  | $ | (7,958 | ) |  | $ | (500 | ) |  | $ | 28,886 |
Financial commodity contracts |  | 44,492 |  |  | (35,189 | ) |  | (9,301 | ) |  | 2 |
Foreign currency contracts |  | 29 |  |  | (1 | ) |  | — |  |  | 28 |
Total NJRES |  | $ | 81,865 |  |  | $ | (43,148 | ) |  | $ | (9,801 | ) |  | $ | 28,916 |
NJNG |  |  |  |  |  |  |  |
Financial commodity contracts |  | $ | 2,201 |  |  | $ | (2,201 | ) |  | $ | — |  |  | $ | — |
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 FCM's 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 Unaudited Condensed Consolidated Statements of Operations as of:
(Thousands) | Location of gain (loss) recognized in income on derivatives | Amount of gain (loss) recognized in income on derivatives
|  | Three Months Ended | Nine Months Ended
|  | June 30, | June 30,
Derivatives not designated as hedging instruments: | 2014 |  | 2013 | 2014 |  | 2013
NJRES: |  |  |  |  |  |  |
Physical commodity contracts | Operating revenues | $ | 5,496 |  |  | $ | 3,595 |  | $ | (52,502 | ) |  | $ | (4,264 | )
Physical commodity contracts | Gas purchases | (7,728 | ) |  | (8,809 | ) | (87,202 | ) |  | (6,253 | )
Financial derivative contracts | Gas purchases | 2,293 |  |  | 39,601 |  | (139,406 | ) |  | 38,134 |
Total unrealized and realized (losses) | $ | 61 |  |  | $ | 34,387 |  | $ | (279,110 | ) |  | $ | 27,617 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables reflect the effect of derivative instruments designated as cash flow hedges on OCI as of June 30:
(Thousands) | Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 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)
| Three Months Ended | Three Months Ended | Three Months Ended
| June 30, | June 30, | June 30,
Derivatives in cash flow hedging relationships: | 2014 | 2013 | 2014 | 2013 | 2014 | 2013
Foreign currency contracts | $ | 213 |  | $ | (14 | ) | $ | 44 |  | $ | (21 | ) | $ | — |  | $ | — |
(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)
| Nine Months Ended | Nine Months Ended | Nine Months Ended
| June 30, | June 30, | June 30,
Derivatives in cash flow hedging relationships: | 2014 | 2013 | 2014 | 2013 | 2014 | 2013
Foreign currency contracts | $ | (247 | ) | $ | (85 | ) | $ | 209 |  | $ | 23 |  | $ | — |  | $ | — |
(1) | The settlement of foreign currency transactions over the next twelve months is expected to result in the reclassification of $(28,000) 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:
|  |  | Volume (Bcf)
|  |  | June 30, 2014 | September 30, 2013
NJNG | Futures |  | 15.3 |  | 22.6 |
NJRES | Futures |  | (59.3 | ) | (64.2 | )
| Options |  | 0.6 |  | 1.5 |
| Physical |  | 33.0 |  | 7.3 |
Schedule of Due to (from) Broker-Dealers and Clearing Organizations | The balances by company, are as follows:
(Thousands) | Balance Sheet Location | June 30, 2014 | September 30, 2013
NJNG | Broker margin - Current assets | $ | — |  | $ | 213 |
NJNG | Broker margin - Current (liabilities) | $ | (2,278 | ) | $ | — |
NJRES | Broker margin - Current assets | $ | 27,904 |  | $ | 6,368 |
Schedules of Concentration of Risk, by Risk Factor | The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of June 30, 2014. Internally-rated exposure applies to counterparties that are not rated by S&P or Moody's. In these cases, the Company's or guarantor's financial statements are reviewed, and similar methodologies and ratios used by S&P 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 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 |  | $ | 172,089 |  |
Noninvestment grade |  | 8,977 |  |
Internally rated investment grade |  | 16,072 |  |
Internally rated noninvestment grade |  | 13,262 |  |
Total |  | $ | 210,400 |  |

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