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INCOME TAXES (Tables) | 12 Months Ended
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Sep. 30, 2024
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Provision | The income tax provision from operations for the fiscal years ended September 30, consists of the following:
(Thousands) | 2024 | 2023 | 2022
Current: |  |  |
Federal | $ | 691 |  | $ | 13,393 |  | $ | 4,238 |
State | (682) |  | 7,716 |  | 2,104 |
Deferred: |  |  |
Federal | 66,623 |  | 36,825 |  | 55,968 |
State | 18,531 |  | (8,381) |  | 14,185 |
Investment/production tax credits | (257) |  | (278) |  | (300) |
Income tax provision | $ | 84,906 |  | $ | 49,275 |  | $ | 76,195 |
Schedule of Deferred Tax Assets and Liabilities | As of September 30, the temporary differences, which give rise to deferred tax assets (liabilities), consist of the following:
(Thousands) | 2024 | 2023
Deferred tax assets |  |
Investment tax credits (1) | $ | 192,238 |  | $ | 191,948 |
State net operating losses | 38,762 |  | 39,612 |
Deferred revenue | 14,107 |  | 8,205 |
Fair value of derivatives | 5,397 |  | 5,386 |
Impairment of equity method investment | 14,004 |  | 14,004 |
Postemployment benefits | 855 |  | 6,502 |
Incentive compensation | 10,142 |  | 8,949 |
Amortization of intangibles | 6,248 |  | 6,308 |
Overrecovered natural gas costs | 9,072 |  | 8,564 |
Allowance for doubtful accounts | 3,744 |  | 4,485 |
Other | 7,226 |  | 7,636 |
Total deferred tax assets | 301,795 |  | 301,599 |
Less: Valuation allowance | (5,621) |  | (5,747) |
Total deferred tax assets net of valuation allowance | $ | 296,174 |  | $ | 295,852 |
Deferred tax liabilities |  |
Property-related items | $ | (563,403) |  | $ | (487,294) |
Remediation costs | (21,656) |  | (18,532) |
Investments in equity investees | (28,704) |  | (28,325) |
Conservation incentive program | (14,379) |  | (14,075) |
Other | (6,065) |  | (4,670) |
Total deferred tax liabilities | $ | (634,207) |  | $ | (552,896) |
Total net deferred tax liabilities | $ | (338,033) |  | $ | (257,044) |
(1)Includes approximately $0.7M for NJNG for both fiscal 2024 and 2023, which is being amortized over the life of the related assets.
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory rate to the effective rate from operations for the fiscal years ended September 30, is as follows:
(Thousands) | 2024 | 2023 | 2022
Statutory income tax expense | $ | 78,683 |  | $ | 65,940 |  | $ | 73,735 |
Change resulting from: |  |  |
Investment/production tax credits | (257) |  | (278) |  | (300) |
Cost of removal of assets placed in service prior to 1981 | (5,644) |  | (4,758) |  | (3,533) |
AFUDC equity | (1,444) |  | (1,499) |  | (2,361) |
State income taxes, net of federal benefit | 14,517 |  | 13,293 |  | 13,072 |
Valuation allowance | (126) |  | (16,494) |  | (1,372) |
Tax Act - utility excess deferred income taxes amortized | (3,573) |  | (3,573) |  | (3,573) |
Other | 2,750 |  | (3,356) |  | 527 |
Income tax provision | $ | 84,906 |  | $ | 49,275 |  | $ | 76,195 |
Effective income tax rate | 22.7 | % | 15.7 | % | 21.7 | %
Schedule of Uncertain Tax Benefits | The reserve for uncertain tax benefits is as follows:
(Thousands) | 2024 | 2023
Balance at October 1, | $ | 4,978 |  | $ | — |
Additions based on tax positions related to the current fiscal period | 15 |  | 4,978 |
Balance at September 30, | $ | 4,993 |  | $ | 4,978 |

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