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REGULATION | 6 Months Ended
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Mar. 31, 2016
Regulated Operations [Abstract] |
REGULATION | 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 investment 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 tariff rates, BGSS and other regulatory tariff riders. As recovery of regulatory assets is subject to BPU approval, if there are any changes in regulatory positions that indicate recovery is not probable, the related cost would be charged to income in the period of such determination. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets are comprised of the following:
(Thousands) | March 31, 2016 | September 30, 2015
Regulatory assets-current |  |
Conservation Incentive Program | $ | 3,190 |  | $ | — |
New Jersey Clean Energy Program | 5,586 |  | 14,293 |
Underrecovered gas costs | 5,052 |  | — |
Derivatives at fair value, net | 18,810 |  | 9,965 |
Total current regulatory assets | $ | 32,638 |  | $ | 24,258 |
Regulatory assets-noncurrent |  |
Environmental remediation costs |  |
Expended, net of recoveries | $ | 16,122 |  | $ | 18,886 |
Liability for future expenditures | 178,512 |  | 180,400 |
Deferred income taxes | 18,956 |  | 17,460 |
Derivatives at fair value, net | 12,932 |  | 5,153 |
SAVEGREEN | 23,009 |  | 26,882 |
Postemployment and other benefit costs | 136,346 |  | 140,636 |
Deferred Superstorm Sandy costs | 15,201 |  | 15,201 |
Conservation Incentive Program | 28,686 |  | — |
Other noncurrent regulatory assets | 6,414 |  | 5,537 |
Total noncurrent regulatory assets | $ | 436,178 |  | $ | 410,155 |
Regulatory liability-current |  |
Conservation Incentive Program | $ | — |  | $ | 5,167 |
Overrecovered gas costs | — |  | 6,987 |
Total current regulatory liabilities | $ | — |  | $ | 12,154 |
Regulatory liabilities-noncurrent |  |
Cost of removal obligation | $ | 46,348 |  | $ | 54,880 |
New Jersey Clean Energy Program | 14,087 |  | 11,956 |
Other noncurrent regulatory liabilities | 898 |  | 697 |
Total noncurrent regulatory liabilities | $ | 61,333 |  | $ | 67,533 |
Regulatory filings and/or actions that occurred during the current fiscal year include the following:
• | On October 15, 2015, the BPU approved a base rate increase related to NJ RISE allowing NJNG to recover costs through July 31, 2015, resulting in a .07 percent increase to the average residential heat customer's bill, effective November 1, 2015.
• | On October 15, 2015, the BPU issued an order approving the continuation of the BGSS Incentive Programs with modification to the storage incentive program, beginning with the 2015 storage injection period, and termination of the FRM Program, effective November 1, 2015.
• | On October 27, 2015, NJNG notified the BPU that bill credits to residential and small commercial customers would be issued from November 2015 through February 2016. A total of $61.6 million in bill credits were issued during that period.
• | On November 13, 2015, NJNG filed a base rate petition with the BPU to increase its base tariff rates in the amount of $147.6 million. On May 4, 2016, NJNG supplemented its base rate case testimony supporting its November 2015 petition, which amended the accounting treatment and noted that the SRL project would not be completed by December 31, 2016. In addition, the Company seeks to modify the rate treatment to include the September 30, 2016 balance of project spending and rate adjustments on a quarterly basis until the project is complete.
• | On December 24, 2015, NJNG filed an SBC petition with the BPU to increase the RA factor, to decrease the NJCEP factor and to request approval of its remediation expenses incurred through June 30, 2015, resulting in an overall decrease of .8 percent to the average residential heat customer's bill.
• | On January 27, 2016, the BPU approved NJNG’s July 2015 petition to maintain its existing SAVEGREEN recovery rate. On April 15, 2016, NJNG filed a petition with the BPU to extend its current program, which was set to expire on July 31, 2017, to December 31, 2018.
• | On January 27, 2016, the BPU approved NJNG's proposed SRL pipeline installation, operation and route selection, as modified by NJNG, including specific requirements regarding permitting, safety and integrity assessment. On March 18, 2016, the BPU approved the application for the SRL to be exempt from municipal land use ordinances.
• | On February 24, 2016, the BPU approved on a final basis NJNG's June 2015 BGSS/CIP filing which continues its existing BGSS rate and adjusted its CIP rates resulting in a .08 percent increase to the average residential heat customer's bill effective October 1, 2015.

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