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DERIVATIVE INSTRUMENTS (Tables)
 12 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value of Derivative Assets and Liabilities
The following table reflects the fair value of NJR’s derivative assets and liabilities recognized on the Consolidated Balance Sheets as of September 30:
 
 
 
Fair Value
 
 
 
2016
 
2015
(Thousands)
Balance Sheet Location
Asset
Derivatives
Liability
Derivatives
Asset
Derivatives
Liability
Derivatives
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
NJNG:
 
 
 
 
 
 
 
 
 
Physical commodity contracts
Derivatives - current
 
$
235

 
$
1,154

 
$
—

 
$
—

Financial commodity contracts
Derivatives - current
 
805

 
2,979

 
207

 
10,163

 
Derivatives - noncurrent
 
75

 
386

 
—

 
925

Interest rate contracts
Derivatives - noncurrent
 
—

 
23,073

 
—

 
4,228

NJRES:
 
 
 
 
 
 
 
 
 
Physical commodity contracts
Derivatives - current
 
5,994

 
11,660

 
4,854

 
9,281

 
Derivatives - noncurrent
 
3,987

 
1,212

 
1,718

 
—

Financial commodity contracts
Derivatives - current
 
22,929

 
45,255

 
35,682

 
13,347

 
Derivatives - noncurrent
 
1,165

 
581

 
2,626

 
386

Foreign currency contracts
Derivatives - current
 
1

 
32

 
—

 
—

Total fair value of derivatives
 
 
$
35,191

 
$
86,332

 
$
45,087

 
$
38,330
Offsetting Assets
The following table summarizes the reported gross amounts, the amounts that NJR has the right to offset but elects not to, financial collateral, as well as the net amounts NJR could present on the Consolidated Balance Sheets but elects not to.
(Thousands)
Amounts Presented in Balance Sheets (1)
Offsetting Derivative Instruments (2)
Financial Collateral Received/Pledged (3)
Net Amounts (4)
As of September 30, 2016:
 
 
 
 
 
 
 
 
Derivative assets:
 
 
 
 
 
 
 
 
NJRES
 
 
 
 
 
 
 
 
Physical commodity contracts
 
$
9,981

 
$
(2,837
)
 
$
(755
)
 
$
6,389

Financial commodity contracts
 
24,094

 
(17,945
)
 
(6,149
)
 
—

Foreign currency contracts
 
1

 
(1
)
 
—

 
—

Total NJRES
 
$
34,076

 
$
(20,783
)
 
$
(6,904
)
 
$
6,389

NJNG
 
 
 
 
 
 
 
 
Physical commodity contracts
 
$
235

 
$
(31
)
 
$
—

 
$
204

Financial commodity contracts
 
880

 
(880
)
 
—

 
—

Interest rate contracts
 
—

 
—

 
—

 
—

Total NJNG
 
$
1,115

 
$
(911
)
 
$
—

 
$
204

Derivative liabilities:
 
 
 
 
 
 
 
 
NJRES
 
 
 
 
 
 
 
 
Physical commodity contracts
 
$
12,872

 
$
(2,837
)
 
$
1,200

 
$
11,235

Financial commodity contracts
 
45,836

 
(17,945
)
 
(27,891
)
 
—

Foreign currency contracts
 
32

 
(1
)
 
—

 
31

Total NJRES
 
$
58,740

 
$
(20,783
)
 
$
(26,691
)
 
$
11,266

NJNG
 
 
 
 
 
 
 
 
Physical commodity contracts
 
$
1,154

 
$
(31
)
 
$
—

 
$
1,123

Financial commodity contracts
 
3,365

 
(880
)
 
(2,485
)
 
—

Interest rate contracts
 
23,073

 
—

 
—

 
23,073

Total NJNG
 
$
27,592

 
$
(911
)
 
$
(2,485
)
 
$
24,196

As of September 30, 2015:
 
 
 
 
 
 
 
 
Derivative assets:
 
 
 
 
 
 
 
 
NJRES
 
 
 
 
 
 
 
 
Physical commodity contracts
 
$
6,562

 
$
(1,326
)
 
$
—

 
$
5,236

Financial commodity contracts
 
38,308

 
(13,734
)
 
3,841

 
28,415

Total NJRES
 
$
44,870

 
$
(15,060
)
 
$
3,841

 
$
33,651

NJNG
 
 
 
 
 
 
 
 
Financial commodity contracts
 
$
207

 
$
(207
)
 
$
—

 
$
—

Derivative liabilities:
 
 
 
 
 
 
 
 
NJRES
 
 
 
 
 
 
 
 
Physical commodity contracts
 
$
9,271

 
$
(1,326
)
 
$
(1,200
)
 
$
6,745

Financial commodity contracts
 
13,733

 
(13,733
)
 
—

 
—

Total NJRES
 
$
23,004

 
$
(15,059
)
 
$
(1,200
)
 
$
6,745

NJNG
 
 
 
 
 
 
 
 
Financial commodity contracts
 
$
11,088

 
$
(207
)
 
$
(10,881
)
 
$
—

Interest rate contracts
 
4,228

 
—

 
—

 
4,228

Total NJNG
 
$
15,316

 
$
(207
)
 
$
(10,881
)
 
$
4,228

(1)
Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20.
(2)
Offsetting derivative instruments include transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting.
(3)
Financial collateral includes cash balances at FCMs, as well as cash received from or pledged to other counterparties.
(4)
Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.
Offsetting Liabilities
The following table summarizes the reported gross amounts, the amounts that NJR has the right to offset but elects not to, financial collateral, as well as the net amounts NJR could present on the Consolidated Balance Sheets but elects not to.
(Thousands)
Amounts Presented in Balance Sheets (1)
Offsetting Derivative Instruments (2)
Financial Collateral Received/Pledged (3)
Net Amounts (4)
As of September 30, 2016:
 
 
 
 
 
 
 
 
Derivative assets:
 
 
 
 
 
 
 
 
NJRES
 
 
 
 
 
 
 
 
Physical commodity contracts
 
$
9,981

 
$
(2,837
)
 
$
(755
)
 
$
6,389

Financial commodity contracts
 
24,094

 
(17,945
)
 
(6,149
)
 
—

Foreign currency contracts
 
1

 
(1
)
 
—

 
—

Total NJRES
 
$
34,076

 
$
(20,783
)
 
$
(6,904
)
 
$
6,389

NJNG
 
 
 
 
 
 
 
 
Physical commodity contracts
 
$
235

 
$
(31
)
 
$
—

 
$
204

Financial commodity contracts
 
880

 
(880
)
 
—

 
—

Interest rate contracts
 
—

 
—

 
—

 
—

Total NJNG
 
$
1,115

 
$
(911
)
 
$
—

 
$
204

Derivative liabilities:
 
 
 
 
 
 
 
 
NJRES
 
 
 
 
 
 
 
 
Physical commodity contracts
 
$
12,872

 
$
(2,837
)
 
$
1,200

 
$
11,235

Financial commodity contracts
 
45,836

 
(17,945
)
 
(27,891
)
 
—

Foreign currency contracts
 
32

 
(1
)
 
—

 
31

Total NJRES
 
$
58,740

 
$
(20,783
)
 
$
(26,691
)
 
$
11,266

NJNG
 
 
 
 
 
 
 
 
Physical commodity contracts
 
$
1,154

 
$
(31
)
 
$
—

 
$
1,123

Financial commodity contracts
 
3,365

 
(880
)
 
(2,485
)
 
—

Interest rate contracts
 
23,073

 
—

 
—

 
23,073

Total NJNG
 
$
27,592

 
$
(911
)
 
$
(2,485
)
 
$
24,196

As of September 30, 2015:
 
 
 
 
 
 
 
 
Derivative assets:
 
 
 
 
 
 
 
 
NJRES
 
 
 
 
 
 
 
 
Physical commodity contracts
 
$
6,562

 
$
(1,326
)
 
$
—

 
$
5,236

Financial commodity contracts
 
38,308

 
(13,734
)
 
3,841

 
28,415

Total NJRES
 
$
44,870

 
$
(15,060
)
 
$
3,841

 
$
33,651

NJNG
 
 
 
 
 
 
 
 
Financial commodity contracts
 
$
207

 
$
(207
)
 
$
—

 
$
—

Derivative liabilities:
 
 
 
 
 
 
 
 
NJRES
 
 
 
 
 
 
 
 
Physical commodity contracts
 
$
9,271

 
$
(1,326
)
 
$
(1,200
)
 
$
6,745

Financial commodity contracts
 
13,733

 
(13,733
)
 
—

 
—

Total NJRES
 
$
23,004

 
$
(15,059
)
 
$
(1,200
)
 
$
6,745

NJNG
 
 
 
 
 
 
 
 
Financial commodity contracts
 
$
11,088

 
$
(207
)
 
$
(10,881
)
 
$
—

Interest rate contracts
 
4,228

 
—

 
—

 
4,228

Total NJNG
 
$
15,316

 
$
(207
)
 
$
(10,881
)
 
$
4,228

(1)
Derivative assets and liabilities are presented on a gross basis in the balance sheet as the Company does not elect balance sheet offsetting under ASC 210-20.
(2)
Offsetting derivative instruments include transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting.
(3)
Financial collateral includes cash balances at FCMs, as well as cash received from or pledged to other counterparties.
(4)
Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.
Effect of Derivative Instruments on the Consolidated Statements of Operations
The following table reflects the (losses) gains associated with NJNG’s derivative instruments as of September 30:
(Thousands)
2016
 
2015
 
2014
NJNG:
 
 
 
 
 
Physical commodity contracts
$
(15,756
)
 
$
—

 
$
—

Financial commodity contracts
(7,984
)
 
(33,428
)
 
10,149

Interest rate contracts
(18,845
)
 
(4,228
)
 
—

Total unrealized and realized (losses) gains
$
(42,585
)
 
$
(37,656
)
 
$
10,149

The following table reflects the effect of derivative instruments on the Consolidated Statements of Operations as of September 30:
(Thousands)
Location of gain (loss) recognized in income on derivatives
Amount of gain (loss) recognized
in income on derivatives
Derivatives not designated as hedging instruments:
2016
 
2015
 
2014
NJRES:
 
 
 
 
 
 
Physical commodity contracts
Operating revenues
$
33,034

 
$
32,568

 
$
(48,977
)
Physical commodity contracts
Gas purchases
(45,637
)
 
(34,438
)
 
(83,847
)
Financial commodity contracts
Gas purchases
45,579

 
109,082

 
(118,872
)
Foreign currency contracts
Gas purchases
(34
)
 
—

 
—

Total unrealized and realized gains (losses)
$
32,942

 
$
107,212

 
$
(251,696
)
Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI
The following table reflects the effect of derivative instruments designated as cash flow hedges on OCI as of September 30:
(Thousands)
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)
Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion)
Amount of Gain or (Loss) Recognized on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivatives in cash flow hedging relationships:
2016
2015
2016
2015
2016
2015
Foreign currency contracts
$
(27
)
$
(402
)
$
27

$
557

$
—

$
—
Schedule of Outstanding Long (Short) Derivatives
NJNG and NJRES had the following outstanding long (short) derivatives as of September 30:
 
 
 
Volume (Bcf)
 
 
 
2016
 
2015
NJNG
Futures
 
23.6

 
25.8

 
Physical
 
9.2

 
—

NJRES
Futures
 
(79.1
)
 
(91.1
)
 
Financial Options
 
1.2

 
1.2

 
Physical
 
94.6

 
48.2
Schedule of Broker Margin Accounts by Company
The Company maintains separate broker margin accounts for NJNG and NJRES. The balances as of September 30, by company, are as follows:
(Thousands)
Balance Sheet Location
2016
2015
NJNG
Broker margin - Current assets
$
4,822

$
12,990

NJRES
Broker margin - Current assets
$
42,822

$
—

NJRES
Broker margin - Current (liabilities)
$
—

$
(4,103
)
Summary of Gross Credit Exposures
The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of September 30, 2016.The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and NJRCEV residential solar installations.
(Thousands)
Gross Credit
Exposure
Investment grade
 
$
121,809

 
Noninvestment grade
 
17,633

 
Internally-rated investment grade
 
9,842

 
Internally-rated noninvestment grade
 
12,299

 
Total
 
$
161,583