REVENUE (Tables)

6 Months Ended

Mar. 31, 2020

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 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. All wind assets were sold as of February 2019. 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	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.
Midstream	Natural gas services	The performance obligation of Midstream is to provide the customer with storage and transportation services. Midstream generates revenues from firm storage contracts and transportation contracts, related usage fees for the use of storage space, injection and withdrawal at the storage facility and the delivery of natural gas to customers. Revenue is recognized over time as our customers receive the benefits of our service as it is performed on their behalf using an output method based on actual deliveries. Demand fees are recognized as revenue over the term of the related agreement.
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:
Midstream	Natural gas services	The performance obligation of Midstream is to provide the customer with storage and transportation services. Midstream generates revenues from hub services for the use of storage space, injection and withdrawal from the storage facility. Hub services include park and loan transactions and wheeling. Hub services revenues are recognized as services are performed.
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 March 31, 2020, is as follows:



(Thousands)	Natural Gas Distribution		Clean Energy Ventures	Energy Services		Midstream		Home Services and Other		Total
2020
Natural gas utility sales	$	266,868	—	—		—		—		$	266,868
Wholesale natural gas services	—		—	9,634		11,076		—		20,710
Service contracts	—		—	—		—		8,073		8,073
Installations and maintenance	—		—	—		—		4,292		4,292
Electricity sales	—		4,458	—		—		—		4,458
Eliminations ⁽¹⁾	—		—	—		(675	)	(326	)	(1,001		)
Revenues from contracts with customers	266,868		4,458	9,634		10,401		12,039		303,400
Alternative revenue programs	22,073		—	—		—		—		22,073
Derivative Instruments	8,279		1,537	304,067		—		—		313,883
Eliminations ⁽¹⁾	—		—	258		—		—		258
Revenues out of scope	30,352		1,537	304,325		—		—		336,214
Total operating revenues	$	297,220	5,995	313,959		10,401		12,039		$	639,614
2019
Natural gas utility sales	$	288,168	—	—		—		—		$	288,168
Wholesale natural gas services	—		—	12,248		—		—		12,248
Service contracts	—		—	—		—		7,847		7,847
Installations and maintenance	—		—	—		—		4,486		4,486
Electricity sales	—		5,058	—		—		—		5,058
Eliminations ⁽¹⁾	—		—	—		—		(652	)	(652		)
Revenues from contracts with customers	288,168		5,058	12,248		—		11,681		317,155
Alternative revenue programs	7,901		—	—		—		—		7,901
Derivative Instruments	5,351		6,302	535,577		—		—		547,230
Eliminations ⁽¹⁾	—		—	(6,031	)	—		—		(6,031		)
Revenues out of scope	13,252		6,302	529,546		—		—		549,100
Total operating revenues	$	301,420	11,360	541,794		—		11,681		$	866,255


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

Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the six months ended March 31, 2020, is as follows:



(Thousands)	Natural Gas Distribution		Clean Energy Ventures	Energy Services		Midstream		Home Services and Other		Total
2020
Natural gas utility sales	$	486,762	—	—		—		—		$	486,762
Natural gas services	—		—	16,955		20,148		—		37,103
Service contracts	—		—	—		—		16,111		16,111
Installations and maintenance	—		—	—		—		9,161		9,161
Electricity sales	—		8,476	—		—		—		8,476
Eliminations ⁽¹⁾	—		—	—		(1,342	)	(741	)	(2,083		)
Revenues from contracts with customers	486,762		8,476	16,955		18,806		24,531		555,530
Alternative revenue programs	20,130		—	—		—		—		20,130
Derivative Instruments	9,951		3,731	667,161		—		—		680,843
Eliminations ⁽¹⁾	—		—	(1,853	)	—		—		(1,853		)
Revenues out of scope	30,081		3,731	665,308		—		—		699,120
Total operating revenues	$	516,843	12,207	682,263		18,806		24,531		$	1,254,650

2019
Natural gas utility sales	$	483,151	—	—		—		—		$	483,151
Natural gas services	—		—	22,328		—		—		22,328
Service contracts	—		—	—		—		15,643		15,643
Installations and maintenance	—		—	—		—		9,180		9,180
Electricity sales	—		12,199	—		—		—		12,199
Eliminations ⁽¹⁾	—		—	—		—		(1,197	)	(1,197		)
Revenues from contracts with customers	483,151		12,199	22,328		—		23,626		541,304
Alternative revenue programs	7,034		—	—		—		—		7,034
Derivative Instruments	11,200		14,058	1,112,764		—		—		1,138,022
Eliminations ⁽¹⁾	—		—	(8,338	)	—		—		(8,338		)
Revenues out of scope	18,234		14,058	1,104,426		—		—		1,136,718
Total operating revenues	$	501,385	26,257	1,126,754		—		23,626		$	1,678,022


(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 March 31, 2020, is as follows:



(Thousands)	Natural Gas Distribution		Clean Energy Ventures	Energy Services	Midstream	Home Services and Other	Total
2020
Residential	$	199,776	2,469	—	—	11,831	$	214,076
Commercial and industrial	41,635		1,989	9,634	10,401	208	63,867
Firm transportation	24,123		—	—	—	—	24,123
Interruptible and off-tariff	1,334		—	—	—	—	1,334
Revenues out of scope	30,352		1,537	304,325	—	—	336,214
Total operating revenues	$	297,220	5,995	313,959	10,401	12,039	$	639,614

2019
Residential	$	204,518	2,191	—	—	11,417	$	218,126
Commercial and industrial	61,452		2,867	12,248	—	264	76,831
Firm transportation	20,776		—	—	—	—	20,776
Interruptible and off-tariff	1,422		—	—	—	—	1,422
Revenues out of scope	13,252		6,302	529,546	—	—	549,100
Total operating revenues	$	301,420	11,360	541,794	—	11,681	$	866,255

Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the six months ended March 31, 2020, is as follows:



(Thousands)	Natural Gas Distribution		Clean Energy Ventures	Energy Services	Midstream	Home Services and Other	Total
2020
Residential	$	352,998	4,929	—	—	24,110	$	382,037
Commercial and industrial	87,057		3,547	16,955	18,806	421	126,786
Firm transportation	43,712		—	—	—	—	43,712
Interruptible and off-tariff	2,995		—	—	—	—	2,995
Revenues out of scope	30,081		3,731	665,308	—	—	699,120
Total operating revenues	$	516,843	12,207	682,263	18,806	24,531	$	1,254,650

2019
Residential	$	338,208	4,323	—	—	23,134	$	365,665
Commercial and industrial	102,180		7,876	22,328	—	492	132,876
Firm transportation	39,710		—	—	—	—	39,710
Interruptible and off-tariff	3,053		—	—	—	—	3,053
Revenues out of scope	18,234		14,058	1,104,426	—	—	1,136,718
Total operating revenues	$	501,385	26,257	1,126,754	—	23,626	$	1,678,022

Expected Timing of Performance

The timing of revenue recognition, customer billings and cash collections resulting in accounts receivables, billed and unbilled, and customers’ credit balances and deposits on the Unaudited Condensed Consolidated Balance Sheets during the six months ended March 31, 2020, are as follows:



	Customer Accounts Receivable				Customers' Credit
(Thousands)	Billed		Unbilled		Balances and Deposits
Balance as of October 1, 2019	$	139,263	$	6,510	$	27,116
Increase (decrease)	56,420		34,651		(7,788		)
Balance as of March 31, 2020	$	195,683	$	41,161	$	19,328

Performance obligation, in excess of billings

The following table provides information about receivables, 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 March 31, 2020:



(Thousands)	Natural Gas Distribution			Clean Energy Ventures	Energy Services	Midstream	Home Services and Other	Eliminations	Total
Customer accounts receivable
Billed	$	104,853		3,057	81,064	4,574	2,135	—	$	195,683
Unbilled	41,161			—	—	—	—	—	41,161
Customers' credit balances and deposits	(19,328		)	—	—	—	—	—	(19,328		)
Total	$	126,686		3,057	81,064	4,574	2,135	—	$	217,516