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ASSET RETIREMENT OBLIGATIONS | 12 Months Ended
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Sep. 30, 2022
Asset Retirement Obligation Disclosure [Abstract] |
ASSET RETIREMENT OBLIGATIONS | 12. ASSET RETIREMENT OBLIGATIONS The Company recognizes ARO 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 ARO related to the costs associated with cutting and capping its main and service natural gas distribution pipelines of NJNG, which is required by New Jersey law when taking such natural gas distribution pipeline out of service. The Company also recognizes ARO related to Clean Energy Ventures’ solar 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 are recognized as part of its depreciation expense, and the corresponding regulatory asset and liability will be shown gross 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 ARO for the fiscal years ended September 30:
| 2022 |  | 2021
(Thousands) | NJNG | NJRCEV |  | NJNG | NJRCEV
Balance at October 1 | $ | 41,611 |  | $ | 4,694 |  |  | $ | 29,280 |  | $ | 4,444 |
Accretion | 2,052 |  | 186 |  |  | 1,612 |  | 182 |
Additions | 161 |  | 281 |  |  | 5,697 |  | 68 |
Change in assumptions | 7,339 |  | — |  |  | 6,151 |  | — |
Retirements | (1,289) |  | — |  |  | (1,129) |  | — |
Balance at period end | $ | 49,874 |  | $ | 5,161 |  |  | $ | 41,611 |  | $ | 4,694 |
Accretion for the next five years, for the fiscal years ended September 30, is estimated to be as follows:
| Estimated
(Thousands) | Accretion
2023 | $ | 2,767 |
2024 | 2,900 |
2025 | 3,038 |
2026 | 3,180 |
2027 | 3,328 |
Total | $ | 15,213 |

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 20 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=6392692&loc=d3e7569-110849 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2175671 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6392692&loc=d3e7535-110849 + Details
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