INVESTMENTS IN EQUITY INVESTEES

12 Months Ended

Sep. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

As of September 30, NJR’s investments in equity method investees includes the following:



(Thousands)	2016		2015
Steckman Ridge ⁽¹⁾	$	123,155	$	125,649
PennEast	17,993		6,353
Total	$	141,148	$	132,002

(1)Includes loans with a total outstanding principal balance of $70.4 million for both fiscal 2016 and 2015, which accrue interest at a variable rate that resets quarterly and are due October 1, 2023.

NJRES and NJNG have entered into storage and park and loan agreements with Steckman Ridge. In addition, NJNG has entered into a precedent capacity agreement with PennEast, which is estimated to be in service by the first quarter of fiscal 2019 See Note 15. Related Party Transactions for more information on these intercompany transactions. During the fourth quarter of fiscal 2014, NJR, through a subsidiary, NJR Pipeline Company, formed PennEast with four other investors, with another investor joining in October 2014, plans to construct and operate an 118-mile pipeline that will extend from northeast Pennsylvania to western New Jersey.