REVENUE (Tables)

9 Months Ended

Jun. 30, 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 June 30, 2020, is as follows:



(Thousands)	Natural Gas Distribution			Clean Energy Ventures		Energy Services	Midstream		Home Services and Other		Total
2020
Natural gas utility sales	$	124,888		—		—	—		—		$	124,888
Wholesale natural gas services	—			—		3,536	11,863		—		15,399
Service contracts	—			—		—	—		8,126		8,126
Installations and maintenance	—			—		—	—		4,243		4,243
Electricity sales	—			5,294		—	—		—		5,294
Eliminations ⁽¹⁾	—			—		—	(720	)	(206	)	(926		)
Revenues from contracts with customers	124,888			5,294		3,536	11,143		12,163		157,024
Alternative revenue programs	(2,665		)	—		—	—		—		(2,665		)
Derivative Instruments	6,309			8,102	⁽²⁾	130,007	—		—		144,418
Eliminations ⁽¹⁾	—			—		197	—		—		197
Revenues out of scope	3,644			8,102		130,204	—		—		141,950
Total operating revenues	$	128,532		13,396		133,740	11,143		12,163		$	298,974
2019
Natural gas utility sales	$	115,525		—		—	—		—		$	115,525
Wholesale natural gas services	—			—		3,876	—		—		3,876
Service contracts	—			—		—	—		7,890		7,890
Installations and maintenance	—			—		—	—		5,193		5,193
Electricity sales	—			4,745		—	—		—		4,745
Eliminations ⁽¹⁾	—			—		—	—		(456	)	(456		)
Revenues from contracts with customers	115,525			4,745		3,876	—		12,627		136,773
Alternative revenue programs	2,025			—		—	—		—		2,025
Derivative Instruments	3,232			6,705	⁽²⁾	286,145	—		—		296,082
Eliminations ⁽¹⁾	—			—		62	—		—		62
Revenues out of scope	5,257			6,705		286,207	—		—		298,169
Total operating revenues	$	120,782		11,450		290,083	—		12,627		$	434,942


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


(2)	Includes SREC revenue.

Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during the nine months ended June 30, 2020 and 2019, is as follows:



(Thousands)	Natural Gas Distribution		Clean Energy Ventures		Energy Services		Midstream		Home Services and Other		Total
2020
Natural gas utility sales	$	611,650	—		—		—		—		$	611,650
Natural gas services	—		—		20,491		32,011		—		52,502
Service contracts	—		—		—		—		24,237		24,237
Installations and maintenance	—		—		—		—		13,404		13,404
Electricity sales	—		13,770		—		—		—		13,770
Eliminations ⁽¹⁾	—		—		—		(2,062	)	(947	)	(3,009		)
Revenues from contracts with customers	611,650		13,770		20,491		29,949		36,694		712,554
Alternative revenue programs	17,465		—		—		—		—		17,465
Derivative Instruments	16,260		11,833	(2)	797,168		—		—		825,261
Eliminations ⁽¹⁾	—		—		(1,656	)	—		—		(1,656		)
Revenues out of scope	33,725		11,833		795,512		—		—		841,070
Total operating revenues	$	645,375	25,603		816,003		29,949		36,694		$	1,553,624
2019
Natural gas utility sales	$	598,676	—		—		—		—		$	598,676
Natural gas services	—		—		26,204		—		—		26,204
Service contracts	—		—		—		—		23,533		23,533
Installations and maintenance	—		—		—		—		14,373		14,373
Electricity sales	—		16,944		—		—		—		16,944
Eliminations ⁽¹⁾	—		—		—		—		(1,653	)	(1,653		)
Revenues from contracts with customers	598,676		16,944		26,204		—		36,253		678,077
Alternative revenue programs	9,059		—		—		—		—		9,059
Derivative Instruments	14,432		20,763	(2)	1,398,909		—		—		1,434,104
Eliminations ⁽¹⁾	—		—		(8,276	)	—		—		(8,276		)
Revenues out of scope	23,491		20,763		1,390,633		—		—		1,434,887
Total operating revenues	$	622,167	37,707		1,416,837		—		36,253		$	2,112,964


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


(2)	Includes SREC revenue.

Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the three months ended June 30, 2020 and 2019, is as follows:



(Thousands)	Natural Gas Distribution		Clean Energy Ventures	Energy Services	Midstream	Home Services and Other	Total
2020
Residential	$	89,095	2,587	—	—	11,845	$	103,527
Commercial and industrial	20,050		2,707	3,536	11,143	318	37,754
Firm transportation	14,331		—	—	—	—	14,331
Interruptible and off-tariff	1,412		—	—	—	—	1,412
Revenues out of scope	3,644		8,102	130,204	—	—	141,950
Total operating revenues	$	128,532	13,396	133,740	11,143	12,163	$	298,974

2019
Residential	$	63,984	2,304	—	—	12,388	$	78,676
Commercial and industrial	37,511		2,441	3,876	—	239	44,067
Firm transportation	12,296		—	—	—	—	12,296
Interruptible and off-tariff	1,734		—	—	—	—	1,734
Revenues out of scope	5,257		6,705	286,207	—	—	298,169
Total operating revenues	$	120,782	11,450	290,083	—	12,627	$	434,942

Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the nine months ended June 30, 2020 and 2019, is as follows:



(Thousands)	Natural Gas Distribution		Clean Energy Ventures	Energy Services	Midstream	Home Services and Other	Total
2020
Residential	$	442,093	7,516	—	—	35,955	$	485,564
Commercial and industrial	107,107		6,254	20,491	29,949	739	164,540
Firm transportation	58,043		—	—	—	—	58,043
Interruptible and off-tariff	4,407		—	—	—	—	4,407
Revenues out of scope	33,725		11,833	795,512	—	—	841,070
Total operating revenues	$	645,375	25,603	816,003	29,949	36,694	$	1,553,624

2019
Residential	$	402,192	6,627	—	—	35,522	$	444,341
Commercial and industrial	139,691		10,317	26,204	—	731	176,943
Firm transportation	52,006		—	—	—	—	52,006
Interruptible and off-tariff	4,787		—	—	—	—	4,787
Revenues out of scope	23,491		20,763	1,390,633	—	—	1,434,887
Total operating revenues	$	622,167	37,707	1,416,837	—	36,253	$	2,112,964

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 nine months ended June 30, 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)	3,796		2,228		(7,060		)
Balance as of June 30, 2020	$	143,059	$	8,738	$	20,056

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 June 30, 2020:



(Thousands)	Natural Gas Distribution			Clean Energy Ventures	Energy Services	Midstream	Home Services and Other	Total
Customer accounts receivable
Billed	$	78,370		3,469	55,364	3,828	2,028	$	143,059
Unbilled	8,738			—	—	—	—	8,738
Customers' credit balances and deposits	(20,056		)	—	—	—	—	(20,056		)
Total	$	67,052		3,469	55,364	3,828	2,028	$	131,741