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DEBT | 12 Months Ended
--- | ---
Sep. 30, 2022
Debt Disclosure [Abstract] |
DEBT | 9. DEBT NJNG and NJR finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program and committed unsecured credit facilities. Long-term Debt The following table presents the long-term debt of the Company as of September 30:
(Thousands) | 2022 | 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NJNG |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First mortgage bonds: | Maturity date: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.00% | Series OO | August 1, 2041 | 46,500 |  | 46,500 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.15% | Series PP | April 15, 2028 | 50,000 |  | 50,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.58% | Series QQ | March 13, 2024 | 70,000 |  | 70,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
4.61% | Series RR | March 13, 2044 | 55,000 |  | 55,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2.82% | Series SS | April 15, 2025 | 50,000 |  | 50,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.66% | Series TT | April 15, 2045 | 100,000 |  | 100,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.63% | Series UU | June 21, 2046 | 125,000 |  | 125,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
4.01% | Series VV | May 11, 2048 | 125,000 |  | 125,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.50% | Series WW | April 1, 2042 | 10,300 |  | 10,300 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.38% | Series XX | April 1, 2038 | 10,500 |  | 10,500 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2.45% | Series YY | April 1, 2059 | 15,000 |  | 15,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.76% | Series ZZ | July 17, 2049 | 100,000 |  | 100,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.86% | Series AAA | July 17, 2059 | 85,000 |  | 85,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2.75% | Series BBB | August 1, 2039 | 9,545 |  | 9,545 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.00% | Series CCC | August 1, 2043 | 41,000 |  | 41,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.13% | Series DDD | June 30, 2050 | 50,000 |  | 50,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.13% | Series EEE | July 23, 2050 | 50,000 |  | 50,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.33% | Series FFF | July 23, 2060 | 25,000 |  | 25,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2.87% | Series GGG | September 1, 2050 | 25,000 |  | 25,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2.97% | Series HHH | September 1, 2060 | 50,000 |  | 50,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2.97% | Series III | October 28, 2051 | 50,000 |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.07% | Series JJJ | October 28, 2061 | 50,000 |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
4.37% | Series LLL | May 27, 2037 | 50,000 |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
4.71% | Series MMM | May 27, 2052 | 50,000 |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Finance lease obligation-meters | Various dates | 30,290 |  | 20,135 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Less: Debt issuance costs |  | (9,528) |  | (9,093) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Less: Current maturities of long-term debt |  | (6,538) |  | (5,393) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total NJNG long-term debt | 1,307,069 |  | 1,098,494 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NJR |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.25% | Unsecured senior notes | September 17, 2022 | — |  | 50,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.20% | Unsecured senior notes | August 18, 2023 | 50,000 |  | 50,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.48% | Unsecured senior notes | November 7, 2024 | 100,000 |  | 100,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.54% | Unsecured senior notes | August 18, 2026 | 100,000 |  | 100,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.96% | Unsecured senior notes | June 8, 2028 | 100,000 |  | 100,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.29% | Unsecured senior notes | July 17, 2029 | 150,000 |  | 150,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.60% | Unsecured senior notes | July 23, 2032 | 130,000 |  | 130,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.50% | Unsecured senior notes | July 23, 2030 | 130,000 |  | 130,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.25% | Unsecured senior notes | September 1, 2033 | 80,000 |  | 80,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.13% | Unsecured senior notes | September 1, 2031 | 120,000 |  | 120,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
4.38% | Unsecured senior notes | June 23, 2027 | 110,000 |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
3.64% | Unsecured senior notes | September 19, 2034 | 50,000 |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Less: Debt issuance costs |  | (3,753) |  | (3,269) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Less: Current maturities of long-term debt |  | (50,000) |  | (50,000) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total NJR long-term debt | 1,066,247 |  | 956,731 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Clean Energy Ventures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Solar asset financing obligation | Various dates | 130,618 |  | 124,387 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Less: Current maturities of long-term debt | (18,532) |  | (17,448) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Clean Energy Ventures long-term debt | 112,086 |  | 106,939 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total long-term debt | $ | 2,485,402 |  | $ | 2,162,164 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Annual long-term debt redemption requirements, excluding finance leases, debt issuance costs and solar asset financing obligations, as of September 30, are as follows:
(Thousands) | NJR | NJNG
2023 | $ | 50,000 |  | $ | — |
2024 | $ | — |  | $ | 70,000 |
2025 | $ | 100,000 |  | $ | 50,000 |
2026 | $ | 100,000 |  | $ | — |
2027 | $ | 110,000 |  | $ | — |
Thereafter | $ | 760,000 |  | $ | 1,172,845 |
NJR On June 23, 2022, NJR entered into a Note Purchase Agreement under which NJR issued $110 million, Series 2022A senior notes at a fixed rate of 4.38 percent, maturing in 2027. On September 16, 2022, NJR entered into another Note Purchase Agreement under which NJR issued $50 million, Series C senior notes at a fixed rate of 3.64 percent, maturing in 2034. The senior notes are unsecured and guaranteed by certain unregulated subsidiaries of NJR. NJNG First Mortgage Bonds NJNG and Trustee entered into the Mortgage Indenture, dated September 1, 2014, which secures all of the outstanding FMBs issued by NJNG. The Mortgage Indenture provides a direct first mortgage lien upon substantially all of the operating properties and franchises of NJNG (other than excepted property, such as cash on hand, choses-in-action, securities, rent, natural gas meters and certain materials, supplies, appliances and vehicles), subject only to certain permitted encumbrances. The Mortgage Indenture contains provisions subjecting after-acquired property (other than excepted property and subject to pre-existing liens, if any, at the time of acquisition) to the lien thereof. NJNG’s Mortgage Indenture does not restrict NJNG’s ability to pay dividends. New Jersey Administrative Code 14:4-4.7 states that a public utility cannot issue dividends, without regulatory approval, if its equity-to-total-capitalization ratio falls below 30 percent. As of September 30, 2022, NJNG’s equity-to-total-capitalization ratio is 53.7 percent and NJNG has the capacity to issue up to $1.3 billion of FMB under the terms of the Mortgage Indenture. On October 28, 2021, NJNG entered into a Note Purchase Agreement for $100 million of its senior notes, of which $50 million were issued at an interest rate of 2.97 percent, maturing in 2051, and $50 million were issued at an interest rate of 3.07 percent, maturing in 2061. On May 27, 2022, NJNG entered into a Note Purchase Agreement for $100 million of its senior notes, of which $50 million were issued at an interest rate of 4.37 percent, maturing in 2037, and $50 million were issued at an interest rate of 4.71 percent, maturing in 2052. On October 24, 2022, NJNG entered into a Note Purchase Agreement for $125 million of its senior notes at an interest rate of 5.47 percent, maturing in 2052. The senior notes are secured by an equal principal amount of NJNG’s FMBs issued under NJNG’s Mortgage Indenture. Sale Leasebacks NJNG received $17.3 million during fiscal 2022 in connection with the sale leaseback of its natural gas meters, with terms ranging from seven to 11 years. NJNG records a finance lease liability that is paid over the term of the lease and has the option to purchase the meters back at fair value upon expiration of the lease. NJNG exercised early purchase options with respect to certain outstanding meter leases by making final principal payments of $1.1 million and $1.2 million for fiscal 2022 and 2021, respectively. There were no natural gas meter sale leasebacks recorded during fiscal 2021. Contractual commitments for finance lease payments, as of the fiscal years ended September 30, are as follows:
(Thousands) | Lease Payments
2023 |  | $ | 7,252 |
2024 |  | 7,909 |
2025 |  | 6,026 |
2026 |  | 4,955 |
2027 |  | 2,630 |
Thereafter |  | 3,262 |
Subtotal |  | 32,034 |
Less: Interest component |  | (1,744) |
Total |  | $ | 30,290 |
Clean Energy Ventures Clean Energy Ventures enters into transactions to sell the commercial solar assets concurrent with agreements to lease the assets back over a period of five to 15 years. These transactions are treated as financing obligations for accounting purposes, and are typically secured by the renewable energy facility asset and its future cash flows from SREC, TRECs and energy sales. ITCs and other tax benefits associated with these solar projects are transferred to the buyer, if applicable; however, the lease payments are structured so that Clean Energy Ventures is compensated for the transfer of the related tax incentives. Clean Energy Ventures continues to operate the solar assets, including related expenses, and retain the revenue generated from SRECs, TRECs and energy sales, and has the option to renew the lease or repurchase the assets sold at the end of the lease term. Clean Energy Ventures received proceeds of $24.1 million and $17.7 million during fiscal 2022 and 2021, respectively, in connection with the sale leaseback of commercial solar assets. The proceeds received were recognized as a financing obligation on the Consolidated Balance Sheets. Contractual commitments for the solar financing obligation payments, as of the fiscal years ended September 30, are as follows:
(Thousands) | Lease Payments
2023 |  | $ | 15,755 |
2024 |  | 43,000 |
2025 |  | 39,629 |
2026 |  | 2,841 |
2027 |  | 5,352 |
Thereafter |  | 16,442 |
Subtotal |  | 123,019 |
Less: Interest component |  | (11,443) |
Total |  | $ | 111,576 |
Credit Facilities and Short-term Debt On February 8, 2022, NJR entered into a 364-day $150 million term loan credit agreement with an interest rate based on SOFR plus 0.85 percent, which expires on February 7, 2023. The Company borrowed $50 million on February 9, 2022 and $100 million on February 14, 2022. A summary of NJR’s credit facility and NJNG’s commercial paper program and credit facility as of September 30, are as follows:
(Thousands) | 2022 |  | 2021 |  | Expiration Dates
NJR |  |  |  |  |
Bank revolving credit facilities (1) | $ | 650,000 |  |  | $ | 500,000 |  |  | September 2027
Notes outstanding at end of period | $ | 200,150 |  |  | $ | 219,100 |  |  |
Weighted average interest rate at end of period | 3.97 | % |  | 1.05 | % |  |
Amount available at end of period (2) | $ | 440,177 |  |  | $ | 270,312 |  |  |
Bank term loan credit agreement | $ | 150,000 |  |  | $ | — |  |  | February 2023
Loans outstanding at end of period | $ | 150,000 |  |  | $ | — |  |  |
Weighted average interest rate at end of period | 3.81 | % |  | — | % |  |
Amount available at end of period | $ | — |  |  | $ | — |  |  |
NJNG |  |  |  |  |
Bank revolving credit facilities (3) | $ | 250,000 |  |  | $ | 250,000 |  |  | September 2027
Commercial paper outstanding at end of period | $ | 73,800 |  |  | $ | 158,200 |  |  |
Weighted average interest rate at end of period | 3.34 | % |  | .17 | % |  |
Amount available at end of period (4) | $ | 175,469 |  |  | $ | 91,069 |  |  |
(1)Committed credit facilities, which require commitment fees of 0.10 percent on the unused amounts. (2)Letters of credit outstanding total $9.7 million and $10.6 million as of September 30, 2022 and September 30, 2021, respectively, which reduces amount available by the same amount. (3)Committed credit facilities, which require commitment fees of 0.075 percent on the unused amounts. (4)Letters of credit outstanding total $731,000 as of both September 30, 2022 and 2021, which reduces amount available by the same amount. Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities. NJR During fiscal 2021, NJR entered into a Second Amended and Restated Credit Agreement governing a $500 million NJR Credit Facility, which was to expire on September 2, 2026. The NJR Credit Facility is subject to two mutual options for a one-year extension beyond that date and includes an accordion feature, which allows NJR, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJR Credit Facility in increments of $50 million up to a maximum of $250 million. The NJR Credit Facility also permits the borrowing of revolving loans and swingline loans, as well as a $75 million sublimit for the issuance of letters of credit. On August 30, 2022, NJR amended the Second Amended and Restated Credit Agreement to $650 million and extended the maturity date of the facility to September 2, 2027. The amendment also increased the swingline to $70 million from $60 million and moved to SOFR as the benchmark rate, replacing the existing LIBOR. Certain of NJR’s unregulated subsidiaries have guaranteed all of NJR’s obligations under the NJR Credit Facility. The credit facility is used primarily to finance its share repurchases, to satisfy Energy Services’ short-term liquidity needs and to finance, on an initial basis, unregulated investments. As of September 30, 2022, NJR had seven letters of credit outstanding totaling $9.7 million on behalf of Energy Services and Clean Energy Ventures. These letters of credit reduce the amount available under NJR’s committed credit facility by the same amount. NJR does not anticipate that these letters of credit will be drawn upon by the counterparties, and they will be renewed as necessary. Energy Services’ letters of credit are used for margin requirements for natural gas transactions, collateral and security deposit for retail natural gas sales, and they expire on dates ranging from September 2023 to December 2023. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities. NJNG During fiscal 2021, NJNG entered into a Second Amended and Restated Credit Agreement governing a $250 million, NJNG Credit Facility, which was to expire on September 2, 2026. The NJNG Credit Facility is subject to two mutual options for a one-year extension beyond that date and permits the borrowing of revolving loans and swingline loans, as well as a $30 million sublimit for the issuance of letters of credit. The NJNG Credit Facility also includes an accordion feature, which would allow NJNG, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJNG Credit Facility in minimum increments of $50 million up to a maximum of $100 million. On August 30, 2022, NJNG amended the Second Amended and Restated Credit Agreement to extend the maturity date of the facility to September 2, 2027, and moved to SOFR as the benchmark rate, replacing the existing LIBOR. As of September 30, 2022, NJNG has two letters of credit outstanding for 731,000, which reduced the amount available under the NJNG Credit Facility by the same amount. NJNG does not anticipate that these letters of credit will be drawn upon by the counterparties.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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