XML 26 R13.htm IDEA: XBRL DOCUMENT
v3.23.1

REGULATION | 6 Months Ended
--- | ---
Mar. 31, 2023
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 filings to the BPU for review of its BGSS, CIP and other programs and related rates. Annual rate changes are typically requested to be effective at the beginning of the following fiscal year. The current base rates include a weighted average cost of capital of 6.84 percent and a return on common equity of 9.6 percent. 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) | March 31, 2023 | September 30, 2022
Regulatory assets-current |  |
New Jersey Clean Energy Program | $ | 6,191 |  | $ | 15,697 |
Conservation Incentive Program | 46,903 |  | 23,099 |
Derivatives at fair value, net | 68,241 |  | — |
Other current regulatory assets | 1,254 |  | 1,290 |
Total current regulatory assets | $ | 122,589 |  | $ | 40,086 |
Regulatory assets-noncurrent |  |
Environmental remediation costs: |  |
Expended, net of recoveries | $ | 63,256 |  | $ | 66,149 |
Liability for future expenditures | 124,493 |  | 127,070 |
Deferred income taxes | 41,213 |  | 40,520 |
SAVEGREEN | 57,203 |  | 52,690 |
Postemployment and other benefit costs | 55,925 |  | 56,021 |
Deferred storm damage costs | 1,086 |  | 2,172 |
Cost of removal | 111,601 |  | 104,850 |
Other noncurrent regulatory assets | 41,769 |  | 45,828 |
Total noncurrent regulatory assets | $ | 496,546 |  | $ | 495,300 |
Regulatory liability-current |  |
Overrecovered natural gas costs | $ | 12,785 |  | $ | 17,807 |
Derivatives at fair value, net | 77 |  | 7,972 |
Total current regulatory liabilities | $ | 12,862 |  | $ | 25,779 |
Regulatory liabilities-noncurrent |  |
Tax Act impact (1) | $ | 182,857 |  | $ | 185,367 |
Derivatives at fair value, net | 602 |  | 116 |
Other noncurrent regulatory liabilities | 482 |  | 151 |
Total noncurrent regulatory liabilities | $ | 183,941 |  | $ | 185,634 |
(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. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017. Other noncurrent regulatory assets include deferred pandemic costs of approximately $3.9 million and $6.9 million as of March 31, 2023 and September 30, 2022, respectively, primarily related to a portion of bad debt associated with customer accounts receivable resulting from the impacts of the ongoing COVID-19 pandemic. These costs are eligible for future regulatory recovery. On January 5, 2023, NJNG advised the BPU that it will cease deferring COVID-19 costs as of December 31, 2022, and will seek recovery of its regulatory asset balance in its next base rate proceeding. Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for Adelphia Gateway are comprised of the following:
(Thousands) | March 31, 2023 | September 30, 2022
Total noncurrent regulatory assets | $ | 5,283 |  | $ | 5,366 |
Total current regulatory liabilities | $ | 2,819 |  | $ | 5,311 |
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 February 22, 2023, NJNG advised the BPU that it would implement a bill credit of approximately $32.5 million, net of tax, and lower the BGSS rate for residential and small commercial customers, which will reduce revenues by approximately $29.9 million, effective March 1, 2023, which was approved on a final basis on April 12, 2023. •On March 30, 2023, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $31.4 million through June 30, 2023, which will result in a $3.5 million revenue increase, with a proposed effective date of October 1, 2023. •On April 12, 2023, the BPU approved on a final basis, NJNG's annual BGSS, balancing charge and CIP rates for residential and small business customers, which includes an $81.9 million increase to the annual revenues credited to BGSS, a $9.0 million annual increase related to its balancing charge and a $10.2 million increase to CIP rates, effective October 1, 2022. •On April 12, 2023, the BPU approved on a final basis, NJNG's annual SBC filing of RAC expenditures through June 30, 2022, as well as an increase to the RAC annual recoveries of $3.7 million and a decrease to the NJCEP annual recoveries of $900,000, effective May 1, 2023.

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 https://asc.fasb.org/topic&trid=2156578 + Details
Name: | us-gaap_PublicUtilitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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