INVESTMENTS IN EQUITY INVESTEES

3 Months Ended

Dec. 31, 2012

Equity Method Investments and Joint Ventures [Abstract]

Investment in equity investees includes NJR's equity method and cost method investments.

Equity Method Investments



(Thousands)	December 31, 2012		September 30, 2012
Steckman Ridge	$	132,709	$	132,931
Iroquois	21,828		22,864
Total	$	154,537	$	155,795

As of December 31, 2012, the investment in Steckman Ridge includes loans with a total outstanding principal balance of $70.4 million. The loans accrue interest at a variable rate that resets quarterly and are due December 31, 2017.

NJRES and NJNG have entered into transportation, storage and park and loan agreements with Iroquois and Steckman Ridge. See Note 13. Related Party Transactions for more information on these intercompany transactions.

Cost Method Investments

During the fourth quarter of fiscal 2012, NJR invested $8.8 million in OwnEnergy, a developer of on-shore wind projects. At that time, the investment represented a 19.9 percent equity interest. Under the terms of the investment agreements, other OwnEnergy investors had the opportunity to invest in the same round of equity financing that NJR participated in. As of December 31, 2012, NJR's ownership interest is 18.7 percent and is accounted for in accordance with the cost method of accounting.