SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Sep. 30, 2017

The following table summarizes gas in storage, at average cost by company, as of September 30:



	2017				2016
($ in thousands)	Gas in Storage			Bcf	Gas in Storage			Bcf
Energy Services		$	122,884	53.9		$	130,493	62.0
Natural Gas Distribution		79,179		21.8		75,758		21.3
Total		$	202,063	75.7		$	206,251	83.3

Schedule of Demand Charges

The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30:



(Millions)	2017		2016		2015
Energy Services	$	126.4	$	141.0	$	130.6
Natural Gas Distribution	80.2		77.8		80.5
Total	$	206.6	$	218.8	$	211.1

Schedule of Capitalized Amounts Associated with Debt and Equity Component of AFUDC

Corresponding amounts for the debt component is recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations and include the following for the fiscal years ended September 30:



($ in thousands)	2017			2016			2015
AFUDC:
Debt	$	1,311		$	5,009		$	2,472
Equity	3,867			4,375			3,825
Total	$	5,178		$	9,384		$	6,297
Weighted average interest rate	6.90		%	5.06		%	4.63		%

Schedule of Property, Plant and Equipment

Property, plant and equipment was comprised of the following as of September 30:



(Thousands)
Property Classifications	Estimated Useful Lives	2017			2016
Distribution facilities	38 to 74 years	$	1,952,697		$	1,823,672
Transmission facilities	35 to 56 years	294,586			292,433
Storage facilities	34 to 47 years	78,245			78,238
Solar property	20 to 25 years	587,345			479,948
Wind property	25 years	244,764			228,644
All other property	5 to 35 years	53,433			52,195
Total property, plant and equipment		3,211,070			2,955,130
Accumulated depreciation and amortization		(601,329		)	(547,478		)
Property, plant and equipment, net		$	2,609,741		$	2,407,652

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated future amortization expense for the next five years as of September 30, is as follows:



(Thousands)
2018	$	18,222
2019	$	8,424
2020	$	4,925
2021	$	4,604
2022	$	2,561
Thereafter	$	2,348

Summary of Customer Accounts Receivable by Company

The following table summarizes customer accounts receivable by company as of September 30:



(Thousands)	2017				2016
Energy Services	$	150,322	77	%	$	102,884	72	%
NJNG ⁽¹⁾	37,432		19		30,951		22
Clean Energy Ventures	2,655		1		1,807		1
NJRHS and other	6,058		3		7,016		5
Total	$	196,467	100	%	$	142,658	100	%


(1)	Does not include unbilled revenues of $7.2 million and $5.7 million as of September 30, 2017 and 2016, respectively.

Changes in Components of Accumulated Other Comprehensive Income, Net

The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects, as of September 30:



(Thousands)	Unrealized gain (loss) on available for sale securities			Net unrealized gain (loss) on derivatives				Adjustment to postemployment benefit obligation				Total
Balance as of September 30, 2015	$	6,385		$	—			$	(15,779	)		$	(9,394	)
Other comprehensive income, net of tax
Other comprehensive (loss), before reclassifications, net of tax of $1,499, $10, $3,164, $4,673	(2,187		)	(17		)		(4,600		)		(6,804		)
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(10), $(698), $(708)	—			17			⁽¹⁾	1,026			⁽²⁾	1,043
Net current-period other comprehensive (loss), net of tax of $1,499, $0, $2,466, $3,965	(2,187		)	—				(3,574		)		(5,761		)
Balance at September 30, 2016	$	4,198		$	—			$	(19,353	)		$	(15,155	)
Other comprehensive income, net of tax
Other comprehensive income, before reclassifications, net of tax of $(6,593), $0, $(2,619), $(9,212)	10,019			—				3,783				13,802
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax of $2,192, $0, $(868), $1,324	(3,173		)	—			⁽¹⁾	1,270			⁽²⁾	(1,903		)
Net current-period other comprehensive income, net of tax of $(4,401), $0, $(3,487), $(7,888)	6,846			—				5,053				11,899
Balance at September 30, 2017	$	11,044		$	—			$	(14,300	)		$	(3,256	)


(1)	Consists of realized losses related to foreign currency derivatives, which are reclassified to gas purchases on the Consolidated Statements of Operations.


(2)	Included in the computation of net periodic pension cost, a component of O&M expense on the Consolidated Statements of Operations. For more details, see Note 11. Employee Benefit Plans.

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

In addition, the following amounts on the Consolidated Balance Sheets have been adjusted, retrospectively, as of September 30, 2016.



(Thousands)	As Previously Reported		Effect of Change			As Adjusted
Assets
Other noncurrent assets	$	68,708	$	(8,512	)	$	60,196
Total noncurrent assets	$	712,166	$	(8,512	)	$	703,654
Total assets	$	3,727,082	$	(8,512	)	$	3,718,570
Capitalization and Liabilities
Long-term debt	$	1,063,550	$	(8,512	)	$	1,055,038
Total capitalization	$	2,230,141	$	(8,512	)	$	2,221,629
Total capitalization and liabilities	$	3,727,082	$	(8,512	)	$	3,718,570