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DEBT | 12 Months Ended
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Sep. 30, 2024
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) | 2024 | 2023
NJNG |  |  |
First mortgage bonds: | Maturity date: |  |
Series OO | 3.00% | August 1, 2041 | 46,500 |  | 46,500 |
Series PP | 3.15% | April 15, 2028 | 50,000 |  | 50,000 |
Series QQ | 3.58% | March 13, 2024 | — |  | 70,000 |
Series RR | 4.61% | March 13, 2044 | 55,000 |  | 55,000 |
Series SS | 2.82% | April 15, 2025 | 50,000 |  | 50,000 |
Series TT | 3.66% | April 15, 2045 | 100,000 |  | 100,000 |
Series UU | 3.63% | June 21, 2046 | 125,000 |  | 125,000 |
Series VV | 4.01% | May 11, 2048 | 125,000 |  | 125,000 |
Series WW | 3.50% | April 1, 2042 | 10,300 |  | 10,300 |
Series XX | 3.38% | April 1, 2038 | 10,500 |  | 10,500 |
Series YY | 2.45% | April 1, 2059 | 15,000 |  | 15,000 |
Series ZZ | 3.76% | July 17, 2049 | 100,000 |  | 100,000 |
Series AAA | 3.86% | July 17, 2059 | 85,000 |  | 85,000 |
Series BBB | 2.75% | August 1, 2039 | 9,545 |  | 9,545 |
Series CCC | 3.00% | August 1, 2043 | 41,000 |  | 41,000 |
Series DDD | 3.13% | June 30, 2050 | 50,000 |  | 50,000 |
Series EEE | 3.13% | July 23, 2050 | 50,000 |  | 50,000 |
Series FFF | 3.33% | July 23, 2060 | 25,000 |  | 25,000 |
Series GGG | 2.87% | September 1, 2050 | 25,000 |  | 25,000 |
Series HHH | 2.97% | September 1, 2060 | 50,000 |  | 50,000 |
Series III | 2.97% | October 30, 2051 | 50,000 |  | 50,000 |
Series JJJ | 3.07% | October 28, 2061 | 50,000 |  | 50,000 |
Series LLL | 4.37% | May 27, 2037 | 50,000 |  | 50,000 |
Series MMM | 4.71% | May 27, 2052 | 50,000 |  | 50,000 |
Series NNN | 5.47% | October 24, 2052 | 125,000 |  | 125,000 |
Series OOO | 5.56% | September 28, 2033 | 50,000 |  | 50,000 |
Series PPP | 5.85% | October 30, 2053 | 50,000 |  | — |
Series QQQ | 5.82% | June 26, 2054 | 125,000 |  | — |
Series RRR | 5.49% | September 30, 2034 | 75,000 |  | — |
Meter financing obligation | Various dates | 31,574 |  | 31,352 |
Less: Debt issuance costs |  | (10,899) |  | (9,770) |
Less: Current maturities of long-term debt | (58,649) |  | (78,477) |
Total NJNG long-term debt | 1,609,871 |  | 1,410,950 |
NJR |  | 2024 | 2023
First mortgage bonds: | Maturity date: |  |
Unsecured senior notes | 3.48% | November 7, 2024 | 100,000 |  | 100,000 |
Unsecured senior notes | 3.54% | August 18, 2026 | 100,000 |  | 100,000 |
Unsecured senior notes | 3.96% | June 8, 2028 | 100,000 |  | 100,000 |
Unsecured senior notes | 3.29% | July 17, 2029 | 150,000 |  | 150,000 |
Unsecured senior notes | 3.50% | July 23, 2030 | 130,000 |  | 130,000 |
Unsecured senior notes | 3.60% | July 23, 2032 | 130,000 |  | 130,000 |
Unsecured senior notes | 3.13% | September 1, 2031 | 120,000 |  | 120,000 |
Unsecured senior notes | 3.25% | September 1, 2033 | 80,000 |  | 80,000 |
Unsecured senior notes | 4.38% | June 23, 2027 | 110,000 |  | 110,000 |
Unsecured senior notes | 3.64% | September 19, 2034 | 50,000 |  | 50,000 |
Unsecured senior notes | 6.14% | December 15, 2032 | 50,000 |  | 50,000 |
Less: Debt issuance costs |  | (3,011) |  | (3,656) |
Less: Current maturities of long-term debt | (100,000) |  | — |
Total NJR long-term debt | 1,016,989 |  | 1,116,344 |
CEV |  |
Solar asset financing obligation | Various dates | 282,962 |  | 278,401 |
Less: Current maturities of long-term debt | (30,358) |  | (37,678) |
Total CEV long-term debt | 252,604 |  | 240,723 |
Total long-term debt | $ | 2,879,464 |  | $ | 2,768,017 |
Annual long-term debt redemption requirements, excluding meter financing obligations, debt issuance costs and solar asset financing obligations, as of September 30, are as follows:
(Thousands) | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter
NJR | $ | 100,000 |  | $ | 100,000 |  | $ | 110,000 |  | $ | 100,000 |  | $ | 150,000 |  | $ | 560,000 |
NJNG | $ | 50,000 |  | $ | — |  | $ | — |  | $ | 50,000 |  | $ | — |  | $ | 1,547,845 |
NJR On November 7, 2024, NJR entered into a Note Purchase Agreement under which NJR issued $100M senior notes at a fixed interest rate of 5.55%, maturing in 2034. NJNG First Mortgage Bonds NJNG and Trustee entered into the Mortgage Indenture, dated September 1, 2014, which secures all the outstanding FMBs issued by NJNG. The Mortgage Indenture provides a direct first mortgage lien upon substantially all 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%. As of September 30, 2024, NJNG’s equity-to-total-capitalization ratio is 53.4% and NJNG has the capacity to issue up to $1.4B of FMB under the terms of the Mortgage Indenture. In September 2023, NJNG entered into a Note Purchase Agreement for $100M aggregate principal amount of its senior notes consisting of $50M of 5.56% senior notes due September 28, 2033, which closed on September 28, 2023, and $50M of 5.85% senior notes due October 30, 2053, which closed on October 30, 2023. On June 26, 2024, NJNG entered into a Note Purchase Agreement for $200M aggregate principal amount of its senior notes consisting of $125M of 5.82% senior notes due June 26, 2054, which closed on June 26, 2024, and $75M of 5.49% senior notes due September 30, 2034, which closed on September 30, 2024. The senior notes are secured by an equal principal amount of NJNG’s FMBs issued under NJNG’s Mortgage Indenture. Sale Leasebacks NJNG received approximately $8.8M and $8.4M during fiscal 2024 and 2023, respectively, in connection with the sale leaseback of its natural gas meters, with terms ranging from six to 10 years. NJNG records the sale leaseback as a financing obligation for accounting purposes that is paid over the term of the arrangement and has the option to purchase the meters back at fair value upon expiration of the lease. Contractual commitments for meter sale leaseback arrangements, which represent the most likely outcome of cash payments, as of the fiscal years ended September 30, are as follows:
(Thousands) | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Subtotal
Future payments | $ | 9,665 |  | 7,906 |  | 5,579 |  | 6,211 |  | 3,171 |  | 1,852 |  | $ | 34,384 |
Less: Interest component |  |  |  |  |  |  | (2,810) |
Total |  |  |  |  |  |  | $ | 31,574 |
Clean Energy Ventures CEV enters into transactions to sell the commercial solar assets concurrent with agreements to lease the assets back over a period of five to seven 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 RECs 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 CEV is compensated for the transfer of the related tax incentives. CEV continues to operate the solar assets, including related expenses, and retain the revenue generated from RECs and energy sales, and has the option to repurchase the assets sold or renew the lease at the end of the lease term. CEV received proceeds of approximately $64.7M and $167.8M during fiscal 2024 and 2023, 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 sale leaseback arrangements, which represent the most likely outcome of cash payments, as of the fiscal years ended September 30, are as follows:
(Thousands) | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Subtotal
Future payments | $ | 57,184 |  | 20,396 |  | 22,907 |  | 34,293 |  | 81,586 |  | 32,610 |  | $ | 248,976 |
Less: Interest component |  |  |  |  |  |  | (43,234) |
Total |  |  |  |  |  |  | $ | 205,742 |
Credit Facilities and Short-term Debt The following table summarizes NJR’s credit facility and NJNG’s commercial paper program and credit facility as of September 30:
|  |  | At end of period |
(Thousands) | As of date | Total borrowing capacity | Loans outstanding | Weighted average interest rate | Remaining borrowing capacity | Expiration dates
NJR bank revolving credit facility (1) |  |  |  |  |  |  |  |
2024 | $ | 575,000 |  | $ | 236,700 |  |  | 6.23 | % |  |  | $ | 325,951 |  | (2) | August 2029
2023 | $ | 650,000 |  | $ | 217,300 |  |  | 6.53 | % |  |  | $ | 426,967 |  | (2) | September 2027
NJNG bank revolving credit facility (3) |  |  |  |  |  |  |
2024 | $ | 250,000 |  | $ | 55,100 |  |  | 4.98 | % |  |  | $ | 194,169 |  | (4) | August 2029
2023 | $ | 250,000 |  | $ | 34,800 |  |  | 5.48 | % |  |  | $ | 214,469 |  | (4) | September 2027
(1)Committed credit facility, which requires commitment fees of 0.10% on the unused amount. (2)Letters of credit outstanding total approximately $12.3M and $5.7M as of September 30, 2024 and 2023, respectively, which reduces the amount available by the same amount. (3)Committed credit facility, which requires commitment fees of 0.075% on the unused amount. (4)Letters of credit outstanding total approximately $0.7M at both September 30, 2024 and 2023, which reduces the 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 Facility. NJR On August 7, 2024, NJR entered into a second amendment to NJR’s Second Amended and Restated Credit Agreement, which reduced the NJR Credit Facility from $650M to $575M and extended the maturity date to August 7, 2029, pursuant to NJR’s option to extend the maturity date under the NJR Second Amended and Restated Credit Agreement, and permits NJR to request that the maturity date be extended up to two times for an additional period of one year each. The NJR Credit Facility 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 at least $50M, with the total revolving credit commitments not exceeding $750M. The NJR Credit Facility also permits the borrowing of revolving loans and swingline loans, as well as a $75M sublimit for the issuance of letters of credit. 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 ES’s short-term liquidity needs and to finance, on an initial basis, unregulated investments. As of September 30, 2024, NJR had eleven letters of credit outstanding totaling $12.3M, which reduced the amount available under the NJR 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. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities. NJNG On August 7, 2024, NJNG entered into a second amendment to NJNG’s Second Amended and Restated Credit Agreement governing a $250M NJNG Credit Facility, which extended the maturity date of the facility to August 7, 2029, pursuant to NJNG’s option to extend the maturity date under the NJNG Second Amended and Restated Credit Agreement, and permits NJNG to request that the maturity date be extended up to two times for an additional period of one year each. The NJNG Credit Facility includes an accordion feature, which allows 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 increments of at least $50M with the total revolving credit commitments not exceeding $350M. The NJNG Credit Facility also permits the borrowing of revolving loans and swingline loans, as well as a $30M sublimit for the issuance of letters of credit. As of September 30, 2024, NJNG has two letters of credit outstanding for $0.7M, 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://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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