INVESTMENTS IN EQUITY INVESTEES

12 Months Ended

Sep. 30, 2011

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS IN EQUITY INVESTEES [Table Text Block]

INVESTMENTS IN EQUITY INVESTEES

NJR uses the equity method of accounting for its investments in Steckman Ridge and Iroquois. Earnings or losses from equity method investments are included in Equity in earnings of affiliates in the Consolidated Statements of Operations.

NJR's investments in equity investees include the following investments as of September 30:



(Thousands)	2011		2010
Steckman Ridge	$	135,130	$	134,359
Iroquois	23,933		24,585
Total	$	159,063	$	158,944

As of September 30, 2011, the investment of Steckman Ridge includes loans with a total outstanding principal balance of $70.4 million. The loans accrue interest at a variable rate that resets quarterly and are due December 31, 2017.

The following is the summarized financial information for Steckman Ridge and Iroquois for fiscal years ended September 30:



(Thousands)	2011		2010		2009
Steckman Ridge
Operating revenues	$	29,172	$	25,910	$	8,725
Operating income	$	21,767	$	18,568	$	5,480
Net income	$	20,053	$	16,772	$	4,262
Current assets	$	10,236	$	6,553	$	10,937
Noncurrent assets	$	247,943	$	250,720	$	250,186
Current liabilities	$	1,046	$	1,993	$	11,715
Noncurrent liabilities	$	140,811	$	140,811	$	135,011
Iroquois
Operating revenues	$	202,581	$	204,059	$	195,185
Operating income	$	111,540	$	116,760	$	111,703
Net income	$	88,208	$	83,359	$	84,376
Current assets	$	101,575	$	102,585	$	92,000
Noncurrent assets	$	716,686	$	746,286	$	769,327
Current liabilities	$	31,158	$	33,664	$	240,512
Noncurrent liabilities	$	378,099	$	394,627	$	264,578

NJRES and NJNG have entered into transportation, storage and park and loan agreements with Iroquois and Steckman Ridge. See Note 15. Related Party Transactions for more information on these intercompany transactions.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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