INVESTMENTS IN EQUITY METHOD INVESTEES

3 Months Ended

Dec. 31, 2016

Investments, All Other Investments [Abstract]

INVESTMENTS IN EQUITY METHOD INVESTEES

INVESTMENTS IN EQUITY METHOD INVESTEES

NJR's investments in equity method investees includes the following as of:

(Thousands)	December 31, 2016		September 30, 2016
Steckman Ridge (1)	$	122,431	$	123,155
PennEast	22,738		17,993
Total	$	145,169	$	141,148

(1) Includes loans with a total outstanding principal balance of $70.4 million for both December 31, 2016 and September 30, 2016. The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2023.

NJR, through a subsidiary, NJR Pipeline Company, formed PennEast with five other investors, and plans to construct and operate a 120-mile pipeline that will extend from northeast Pennsylvania to western New Jersey, which is estimated to be in service by the first quarter of fiscal 2019.

NJRES and NJNG have entered into storage and park and loan agreements with Steckman Ridge. In addition, NJNG has entered into a precedent capacity agreement with PennEast. See Note 14. Related Party Transactions for more information on these intercompany transactions.