XML 30 R14.htm IDEA: XBRL DOCUMENT
v3.21.2

REGULATION | 9 Months Ended
--- | ---
Jun. 30, 2021
Regulated Operations [Abstract] |
REGULATION | 4. 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 capital investments 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 rates, BGSS and other regulatory tariff riders. NJNG is required to make annual filings to the BPU for review of its BGSS, CIP and various other programs and related rates. Annual rate changes are typically requested to be effective at the beginning of the following fiscal year. All rate and program changes are subject to proper notification and BPU review and approval. In addition, NJNG is permitted to implement certain BGSS rate changes on a provisional basis with proper notification to the BPU. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for NJNG are comprised of the following:
(Thousands) | June 30, 2021 | September 30, 2020
Regulatory assets-current |  |
New Jersey Clean Energy Program | $ | 18,329 |  | $ | 15,570 |
Conservation Incentive Program | 14,602 |  | 19,120 |
Other current regulatory assets | 1,830 |  | 1,682 |
Total current regulatory assets | $ | 34,761 |  | $ | 36,372 |
Regulatory assets-noncurrent |  |
Environmental remediation costs: |  |
Expended, net of recoveries | $ | 44,333 |  | $ | 36,516 |
Liability for future expenditures | 136,882 |  | 150,590 |
Deferred income taxes | 33,506 |  | 28,241 |
Derivatives at fair value, net | — |  | 1 |
SAVEGREEN | 24,929 |  | 21,281 |
Postemployment and other benefit costs | 176,454 |  | 188,170 |
Deferred storm damage costs | 4,886 |  | 6,515 |
Cost of removal | 94,124 |  | 75,080 |
Other noncurrent regulatory assets | 20,160 |  | 20,068 |
Total noncurrent regulatory assets | $ | 535,274 |  | $ | 526,462 |
Regulatory liability-current |  |
Overrecovered natural gas costs | $ | 2,189 |  | $ | 25,914 |
Derivatives at fair value, net | 11,848 |  | 274 |
Total current regulatory liabilities | $ | 14,037 |  | $ | 26,188 |
Regulatory liabilities-noncurrent |  |
Tax Act impact (1) | $ | 191,641 |  | $ | 195,425 |
Derivatives at fair value, net | 959 |  | 352 |
Other noncurrent regulatory liabilities | 399 |  | 509 |
Total noncurrent regulatory liabilities | $ | 192,999 |  | $ | 196,286 |
(1)Reflects the re-measurement and subsequent amortization of NJNG's net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for Adelphia Gateway are comprised of the following:
(Thousands) | June 30, 2021 | September 30, 2020
Total current regulatory assets | $ | 269 |  | $ | 158 |
Total noncurrent regulatory assets | $ | 1,911 |  | $ | 997 |
Total-noncurrent regulatory liabilities | $ | 223 |  | $ | — |
The assets are comprised primarily of the tax benefit associated with the equity component of AFUDC and the liability consists primarily of scheduling penalties. Recovery of regulatory assets is subject to FERC approval. Regulatory filings and/or actions that occurred during the current fiscal year include the following: •On October 28, 2020, the BPU approved the Company’s transmission and distribution component of the IIP for $150.0 million over five years, effective November 1, 2020. The recovery of information technology replacement and enhancements, that was included in the original IIP filing, will be included as part of base rate filings as projects are placed in service. •On November 20, 2020, NJNG notified the BPU of its intent to provide BGSS bill credits to residential and small commercial sales customers effective December 1, 2020 to December 31, 2020. On December 22, 2020, NJNG notified the BPU of the extension of the BGSS bill credits through January 31, 2021. The actual bill credits given to customers totaled $20.6 million, $19.3 million net of tax. •On March 3, 2021, the BPU approved the three-year SAVEGREEN program consisting of approximately $126.1 million of direct investment, $109.4 million in financing options, and $23.4 million in operation and maintenance expenses, which resulted in a $15.6 million annual recovery increase, effective July 1, 2021. •On March 3, 2021, the BPU approved, on a final basis, NJNG’s annual petition to modify its BGSS, balancing charge and CIP rates for residential and small commercial customers. The rate changes resulted in a $20.4 million decrease to the annual revenues credited to BGSS, a $3.8 million annual decrease related to its balancing charge, as well as changes to CIP rates, which resulted in a $16.5 million annual recovery increase, effective October 1, 2020. •On March 30, 2021, NJNG filed a base rate case with the BPU requesting a natural gas revenue increase of $165.7 million including a rate recovery for SRL and other infrastructure investments. On July 9, 2021, the Company updated its base rate request to $163.9 million, based on nine months of actual information through June 30, 2021. •On March 31, 2021, NJNG filed a petition with the BPU requesting the final base rate increase of approximately $311,000 for the recovery associated with NJ RISE and SAFE II capital investments cost of approximately $3.4 million made through June 30, 2021. On June 22, 2021, this filing was consolidated with the 2021 base rate case and on July 30, 2021, was updated for actual information through June 30, 2021. Changes to base rates are anticipated to be effective concurrent with the base rate case request. •On April 7, 2021, the BPU approved a stipulation resolving NJNG’s annual SBC application requesting to recover remediation expenses, including an increase in the RAC, of approximately $1.3 million annually and an increase to the NJCEP factor, resulting in an annual increase of approximately $6.0 million, effective May 1, 2021. •On May 28, 2021, NJNG submitted its annual petition to modify its BGSS, balancing charge and CIP rates. The proposed rate changes result in a $2.9 million increase to the annual revenues credited to BGSS, a $13.0 million annual increase related to its balancing charge, as well as changes to CIP rates, which result in a $1.6 million annual recovery decrease, effective October 1, 2021. •On June 11, 2021, NJNG submitted its annual cost recovery filing for the SAVEGREEN programs established from 2010 through 2018. If approved, the proposed rate increase will increase annual recoveries by $2.2 million, effective October 1, 2021. •On June 25, 2021, NJNG filed its annual USF compliance filing proposing an increase to the statewide USF rate, which will result in an annual increase of approximately $4.9 million, effective October 1, 2021.

X
- Definition The entire disclosure for public utilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 980 -URI http://asc.fasb.org/topic&trid=2156578 + Details
Name: | us-gaap_PublicUtilitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_RegulatedOperationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration