INVESTMENTS IN EQUITY INVESTEES

9 Months Ended

Jun. 30, 2019

Investments, All Other Investments [Abstract]

7. INVESTMENTS IN EQUITY INVESTEES

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



(Thousands)	June 30, 2019		September 30, 2018
Steckman Ridge ⁽¹⁾	$	115,419	$	117,001
PennEast	82,241		73,865
Total	$	197,660	$	190,866


(1)	Includes loans with a total outstanding principal balance of $70.4 million for both June 30, 2019 and September 30, 2018. The loans accrue interest at a variable rate that resets quarterly and are due October 1, 2023.

NJNG and Energy Services have entered into storage and park and loan agreements with Steckman Ridge. In addition, NJNG and Energy Services are each parties to precedent capacity agreements with PennEast. See Note 14. Related Party Transactions for more information on these intercompany transactions.

The Company, through its subsidiary NJR Pipeline Company, is an investor in PennEast, a partnership whose purpose is to construct and operate a 120-mile natural gas pipeline that will extend from northeast Pennsylvania to western New Jersey. PennEast received a Certificate of Public Convenience and Necessity for the project from FERC on January 19, 2018. As of June 30, 2019, PennEast completed all the necessary land surveys and expects to resubmit the NJDEP application in August 2019. Construction of PennEast is expected to begin following receipt of all necessary governmental and regulatory permits and any remaining land use rights. Construction could be delayed due to factors that are beyond the ability of PennEast to control, including unforeseen construction delays, the receipt of governmental and regulatory approvals, and intervention, challenges, and litigation by others to governmental and regulatory proceedings. The timing and outcome of such actions and proceedings cannot be predicted with any certainty at this time. Delays in receipt of regulatory approvals and other unforeseen delays could result in increased costs that could negatively impact PennEast operations if not resolved in a timely manner.