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REGULATION
 3 Months Ended
Dec. 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% and a return on common equity of 9.6%. 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)December 31,
2023		September 30,
2023
Regulatory assets-current
New Jersey Clean Energy Program$14,382 $15,804 
Conservation Incentive Program47,819 50,356 
Derivatives at fair value, net13,215 6,017 
Other current regulatory assets1,312 1,410 
Total current regulatory assets$76,728 $73,587 
Regulatory assets-noncurrent
Environmental remediation costs:
Expended, net of recoveries$67,065 $66,298 
Liability for future expenditures165,315 169,390 
Deferred income taxes42,028 41,667 
SAVEGREEN83,486 83,589 
Postemployment and other benefit costs54,904 55,274 
Cost of removal115,202 112,362 
Other noncurrent regulatory assets48,710 51,019 
Total noncurrent regulatory assets$576,710 $579,599 
Regulatory liability-current
Overrecovered natural gas costs$28,579 $30,637 
Total current regulatory liabilities$28,579 $30,637 
Regulatory liabilities-noncurrent
Tax Act impact (1)
$179,093 $180,347 
Other noncurrent regulatory liabilities545 111 
Total noncurrent regulatory liabilities$179,638 $180,458 
(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.
Regulatory assets and liabilities included on the Unaudited Condensed Consolidated Balance Sheets for Adelphia are comprised of the following:
(Thousands)December 31,
2023		September 30,
2023
Total noncurrent regulatory assets$5,197 $5,231 
Total current regulatory liabilities$1,765 $1,650 

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 November 9, 2023, NJNG filed a letter petition seeking BPU approval to extend NJNG’s current SAVEGREEN program through December 31, 2024, with an additional $76.9M in order to meet customer demand for this program.

•On December 1, 2023, NJNG filed a petition seeking BPU approval of its 2024 SAVEGREEN program, which would support new energy efficiency, demand response and building decarbonization start-up programs for two and a half-years starting January 1, 2025 through June 30, 2027. The 2024 SAVEGREEN program includes $245.1M of direct investment, $217.2M in financing options and $20.1M in O&M.

•On January 31, 2024, NJNG filed a base rate case with the BPU requesting a natural gas revenue increase of $222.6M including a rate recovery of infrastructure investments and a change in the Company’s overall rate of return on rate base to 7.57%.