INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Provision

The income tax provision from operations for the fiscal years ended September 30, consists of the following:

(Thousands)	2023		2022		2021
Current:
Federal	$	13,393	$	4,238	$	651
State	7,716		2,104		1,703
Deferred:
Federal	36,825		55,968		25,030
State	(8,381)		14,185		6,224
Investment/production tax credits	(278)		(300)		(322)
Income tax provision	$	49,275	$	76,195	$	33,286

Schedule of Deferred Tax Assets and Liabilities

As of September 30, the temporary differences, which give rise to deferred tax assets (liabilities), consist of the following:

(Thousands)	2023		2022
Deferred tax assets
Investment tax credits (1)	$	191,948	$	212,506
State net operating losses	39,612		36,950
Deferred revenue	8,205		—
Fair value of derivatives	5,386		6,506
Impairment of equity method investment	14,004		14,124
Postemployment benefits	6,502		2,751
Incentive compensation	8,949		7,297
Amortization of intangibles	6,308		6,474
Overrecovered natural gas costs	8,564		4,977
Allowance for doubtful accounts	4,485		5,761
Other	7,636		5,748
Total deferred tax assets	301,599		303,094
Less: Valuation allowance	(5,747)		(22,241)
Total deferred tax assets net of valuation allowance	$	295,852	$	280,853
Deferred tax liabilities
Property-related items	$	(487,294)	$	(468,115)
Remediation costs	(18,532)		(18,490)
Investments in equity investees	(28,325)		(19,176)
Conservation incentive program	(14,075)		(6,457)
Other	(4,670)		(4,615)
Total deferred tax liabilities	$	(552,896)	$	(516,853)
Total net deferred tax liabilities	$	(257,044)	$	(236,000)

(1)Includes approximately $0.7M for NJNG for both fiscal 2023 and 2022, which is being amortized over the life of the related assets.

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. federal statutory rate to the effective rate from operations for the fiscal years ended September 30, is as follows:

(Thousands)	2023			2022			2021
Statutory income tax expense	$	65,940		$	73,735		$	31,747
Change resulting from:
Investment/production tax credits	(278)			(300)			(322)
Cost of removal of assets placed in service prior to 1981	(4,758)			(3,533)			(5,366)
AFUDC equity	(1,499)			(2,361)			(786)
State income taxes, net of federal benefit	13,293			13,072			6,124
Valuation allowance	(16,494)			(1,372)			5,974
Tax Act - utility excess deferred income taxes amortized	(3,573)			(3,573)			(3,573)
Other	(3,356)			527			(512)
Income tax provision	$	49,275		$	76,195		$	33,286
Effective income tax rate	15.7		%	21.7		%	22.0		%

Schedule of Uncertain Tax Benefits

The reserve for uncertain tax benefits is as follows:

(Thousands)	2023		2022
Balance at October 1,	$	—	$	—
Additions based on tax positions related to the current fiscal period	4,978		—
Balance at September 30,	$	4,978	$	—