ASSET RETIREMENT OBLIGATIONS (ARO)

12 Months Ended

Sep. 30, 2013

Asset Retirement Obligation Disclosure [Abstract]

NJR recognizes AROs related to the costs associated with cutting and capping its main and service gas distribution pipelines of NJNG, which are required by New Jersey law when taking such gas distribution pipeline out of service.

The following is an analysis of the change in the ARO liability for the fiscal year ended September 30:



(Thousands)	2013			2012
Balance at October 1	$	27,983		$	27,026
Accretion	1,892			1,774
Additions	533			380
Retirements	(1,697		)	(1,197		)
Balance at period end	$	28,711		$	27,983

Accretion amounts are not reflected as an expense on NJR's Consolidated Statements of Operations, but rather are deferred as a regulatory asset and netted against NJNG's regulatory liabilities, for presentation purposes, on the Consolidated Balance Sheets.

Accretion for the next five years is estimated to be as follows:



(Thousands)
Fiscal Year Ended September 30,	Estimated Accretion
2014		$	1,975
2015		2,037
2016		2,099
2017		2,152
2018		2,204
Total		$	10,467