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ASSET RETIREMENT OBLIGATIONS | 12 Months Ended
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Sep. 30, 2017
Asset Retirement Obligation Disclosure [Abstract] |
ASSET RETIREMENT OBLIGATIONS | 12. ASSET RETIREMENT OBLIGATIONS The Company recognizes AROs when the legal obligation to retire an asset has been incurred and a reasonable estimate of fair value can be made. Accordingly, the Company recognizes AROs related to the costs associated with cutting and capping its main and service gas distribution pipelines of NJNG, which is required by New Jersey law when taking such gas distribution pipeline out of service. The Company also recognizes AROs related to Clean Energy Ventures’ solar and wind assets when there are decommissioning provisions in Clean Energy Ventures’ lease agreements that require removal of the asset. Accretion amounts associated with NJNG’s ARO is recognized as part of its depreciation expense and the corresponding regulatory asset and liability will be shown gross on the Consolidated Balance Sheets. During fiscal 2016, accretion amounts were not reflected as an expense, but rather were deferred as a regulatory asset and netted against NJNG’s regulatory liabilities, for presentation purposes, on the Consolidated Balance Sheets. Accretion amounts associated with Clean Energy Ventures’ ARO are recognized as a component of operations and maintenance expense on the Consolidated Statements of Operations. The following is an analysis of the change in the Company’s AROs for the fiscal year ended September 30:
(Thousands) | 2017 |  | 2016
| NJNG | NJRCEV |  | NJNG | NJRCEV
Balance at October 1 | $ | 23,521 |  | $ | 4,858 |  |  | $ | 16,773 |  | $ | 2,372 |
Accretion | 1,304 |  | 245 |  |  | 1,048 |  | 158 |
Additions | 729 |  | 1,492 |  |  | 783 |  | 2,328 |
Revisions in estimated cash flows | (245 | ) | — |  |  | 5,320 |  | — |
Retirements | (484 | ) | — |  |  | (403 | ) | — |
Balance at period end | $ | 24,825 |  | $ | 6,595 |  |  | $ | 23,521 |  | $ | 4,858 |
During fiscal 2016, NJNG revised its retirement assumptions to reflect an increase in inflation rates and construction costs. These increases, were discounted using the current credit adjusted risk free rate, resulting in an increase of approximately $5.3 million to the ARO liability. Accretion for the next five years is estimated to be as follows:
(Thousands) |  |  |
Fiscal Year Ended September 30, | Estimated Accretion
2018 |  | $ | 1,644 |  |
2019 |  | 1,718 |  |
2020 |  | 1,795 |  |
2021 |  | 1,877 |  |
2022 |  | 1,960 |  |
Total |  | $ | 8,994 |  |

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- References No definition available. + Details
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- Definition The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2175671 + Details
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