REVENUE (Tables)

3 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Performance obligation, recognition period

Below is a listing of performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms and the nature of the goods and services being transferred, by reporting segment and other business operations:



Revenue Recognized Over Time:
Segment	Performance Obligation	Description
Natural Gas Distribution	Natural gas utility sales	NJNG's performance obligation is to provide natural gas to residential, commercial and industrial customers as demanded, based on regulated tariff rates, which are established by the BPU. Revenues from the sale of natural gas are recognized in the period that gas is delivered and consumed by customers, including an estimate for quantities consumed but not billed during the period. Payment is due each month for the previous month's deliveries. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the billing period. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects and the most current tariff rates. NJNG is entitled to be compensated for performance completed until service is terminated. Customers may elect to purchase the natural gas commodity from NJNG or may contract separately to purchase natural gas directly from third-party suppliers. As NJNG is acting as an agent on behalf of the third party supplier, revenue is recorded for the delivery of natural gas to the customer.
Clean Energy Ventures	Commercial solar and wind electricity	Clean Energy Ventures operates wholly-owned solar and wind projects that recognize revenue as electricity is generated and transferred to the customer. The performance obligation is to provide electricity to the customer in accordance with contract terms or the interconnection agreement and is satisfied upon transfer of electricity generated. Revenue is recognized as invoiced and the payment is due each month for the previous month's services.
Clean Energy Ventures	Residential solar electricity	Clean Energy Ventures provides access to residential rooftop and ground-mount solar equipment to customers who then pay the Company a monthly fee. The performance obligation is to provide electricity to the customer based on generation from the underlying residential solar asset and is satisfied upon transfer of electricity generated. Revenue is derived from the contract terms and is recognized as invoiced, with the payment due each month for the previous month's services.
Energy Services	Wholesale natural gas services	The performance obligation of Energy Services is to provide the customer transportation, storage and asset management services on an as needed basis. Energy Services generates revenue through management fees, demand charges, reservation fees and transportation charges centered around the buying and selling of the natural gas commodity, representing one series of distinct performance obligations. Revenue is recognized based upon the underlying natural gas quantities physically delivered and the customer obtaining control. Energy Services invoices customers on a monthly basis in line with the terms of the contract and based on the services provided. Payment is due each month for the previous month's invoiced services.
Home Services and Other	Service contracts	Home Services enters into service contracts with homeowners to provide maintenance and replacement services of applicable heating, cooling or ventilation equipment. All services provided relate to a distinct performance obligation which is to provide services for the specific equipment over the term of the contract. Revenue is recognized on a straight line basis over the term of the contract and payment is due upon receipt of the invoice.
Revenue Recognized at a Point in Time:
Home Services and Other	Installations	Home Services installs appliances, including but not limited to, furnaces, air conditioning units, boilers and generators to customers. The distinct performance obligation is the installation of the contracted appliance, which is satisfied at the point in time the item is installed. The transaction price for each installation differs accordingly. Revenue is recognition at a point in time upon completion of the installation, which is when the customer is billed.

Disaggregation of Revenue

Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the three months ended December 31, 2018 is as follows:



	Regulated			Unregulated
(Thousands)	Natural Gas Distribution			Clean Energy Ventures	Energy Services		Home Services and Other		Total
Natural gas utility sales	$	194,983		—	—		—		$	194,983
Wholesale natural gas services	—			—	10,080		—		10,080
Service contracts	—			—	—		7,796		7,796
Installations and maintenance	—			—	—		4,694		4,694
Electricity sales	—			7,141	—		—		7,141
Eliminations⁽¹⁾	—			—	—		(545	)	(545		)
Revenues from contracts with customers	194,983			7,141	10,080		11,945		224,149
Alternative revenue programs	(867		)	—	—		—		(867		)
Derivative Instruments	5,849			7,756	577,187		—		590,792
Eliminations⁽¹⁾	—			—	(2,307	)	—		(2,307		)
Revenues out of scope	4,982			7,756	574,880		—		587,618
Total operating revenues	$	199,965		14,897	584,960		11,945		$	811,767


(1)	Consists of transactions between subsidiaries that are eliminated in consolidation.

Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended December 31, 2018 is as follows:



	Regulated		Unregulated
(Thousands)	Natural Gas Distribution		Clean Energy Ventures	Energy Services	Home Services and Other	Total
Residential	$	133,690	2,132	—	11,717	$	147,539
Commercial and industrial	40,728		5,009	10,080	228	56,045
Firm transportation	18,934		—	—	—	18,934
Interruptible and off-tariff	1,631		—	—	—	1,631
Revenues out of scope	4,982		7,756	574,880	—	587,618
Total operating revenues	$	199,965	14,897	584,960	11,945	$	811,767

Expected Timing of Performance

The timing of revenue recognition, customer billings and cash collections result in accounts receivables, billed and unbilled, and customers’ credit balances and deposits on the Unaudited Condensed Consolidated Balance Sheets during the three months ended December 31, 2018 are as follows:



	Customer Accounts Receivable				Customers' Credit
(Thousands)	Billed		Unbilled		Balances and Deposits
Balance as of October 1, 2018	$	205,490	$	7,199	$	27,325
Increase	112,618		47,956		2,304
Balance as of December 31, 2018	$	318,108	$	55,155	$	29,629

Performance obligation, in excess of billings

The following table provides information about receivables and revenue earned on contracts in progress in excess of billings, which are included within accounts receivable, billed and unbilled, and customers’ credit balances and deposits, respectively, on the Unaudited Condensed Consolidated Balance Sheets as of December 31, 2018:



(Thousands)	Natural Gas Distribution			Clean Energy Ventures	Energy Services	Home Services and Other		Eliminations		Total
Customer accounts receivable
Billed	$	73,748		3,574	239,542	2,996		(1,752	)	$	318,108
Unbilled	55,155			—	—	—		—		55,155
Customers' credit balances and deposits	(29,627		)	—	—	(2	)	—		(29,629		)
Total	$	99,276		3,574	239,542	2,994		(1,752	)	$	343,634