XML 40 R27.htm IDEA: XBRL DOCUMENT v3.22.4
REVENUE (Tables)
 3 Months Ended
Dec. 31, 2022
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/
Operations		Performance ObligationDescription
Natural Gas DistributionNatural gas utility salesNJNG'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 natural 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 VenturesCommercial solar 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.

Revenue is recognized as invoiced and the payment is due each month for the previous month's services.
Clean Energy VenturesResidential 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.
Clean Energy VenturesRenewable energy certificates
Certain Clean Energy Ventures projects generate TRECs and SREC IIs under the established administratively determined incentive program. A TREC or SREC II is created for every MWh of electricity produced by a solar generator. The performance obligation of Clean Energy Ventures is to generate electricity. TRECs and SREC IIs under the administratively determined incentive program are purchased monthly by a REC Administrator.

Revenue is recognized upon generation.
Energy ServicesNatural 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 in line with the terms of the contract and based on the services provided. Payment is due upon receipt of the invoice. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed upon term.
Storage and Transportation
Natural gas services
The performance obligation of Storage and Transportation is to provide the customer with storage and transportation services. Storage and Transportation generates revenues from firm storage contracts and transportation contracts, injection and withdrawal at the storage facility and the delivery of natural gas to customers. Revenue is recognized over time as customers receive the benefits of its 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 OtherService contracts
Home Services enters into service contracts with homeowners to provide maintenance and replacement services of applicable heating, cooling or ventilation equipment. NJR Retail enters into warranty contracts with homeowners for various appliances. 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:
Segment/
Operations		Performance ObligationDescription
Energy ServicesNatural gas services
For a permanent release of pipeline capacity, the performance obligation of Energy Services is the release of the pipeline capacity associated with certain natural gas transportation contracts and the transfer of the underlying contractual rights to the counterparty.

Revenue is recognized upon the transfer of the underlying contractual rights.
Storage and Transportation
Natural gas services
The performance obligation of Storage and Transportation is to provide the customer with storage and transportation services. Storage and Transportation generates revenues from usage fees and hub services for the use of storage space, injection and withdrawal from the storage facility. Hub services include park and loan transactions and wheeling.

Usage fees and hub services revenues are recognized as services are performed.
Home Services and OtherInstallations
Home Services installs appliances, including but not limited to, furnaces, air conditioning units, boilers and generators for 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 recognized 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 December 31, 2022 and 2021, are as follows:
(Thousands)Natural Gas DistributionClean Energy Ventures Energy ServicesStorage and TransportationHome Services
and Other		Total
2022
Natural gas utility sales (1)
$288,167 — — — — $288,167 
Natural gas services— — 27,848 26,838 — 54,686 
Service contracts— — — — 8,661 8,661 
Installations and maintenance— — — — 5,605 5,605 
Renewable energy certificates— 1,202 — — — 1,202 
Electricity sales— 7,704 — — — 7,704 
Eliminations (2)
(337)— — (1,124)(13)(1,474)
Revenues from contracts with customers287,830 8,906 27,848 25,714 14,253 364,551 
Alternative revenue programs (3)
(3,465)— — — — (3,465)
Derivative instruments73,044 3,886 (4)293,934 — — 370,864 
Eliminations (2)
— — (8,383)— — (8,383)
Revenues out of scope69,579 3,886 285,551 — — 359,016 
Total operating revenues$357,409 12,792 313,399 25,714 14,253 $723,567 
2021
Natural gas utility sales$223,796 — — — — $223,796 
Natural gas services— — 27,879 12,143 — 40,022 
Service contracts— — — — 8,467 8,467 
Installations and maintenance— — — — 5,484 5,484 
Renewable energy certificates— 846 — — — 846 
Electricity sales— 6,470 — — — 6,470 
Eliminations (1)
(337)— — (559)(99)(995)
Revenues from contracts with customers223,459 7,316 27,879 11,584 13,852 284,090 
Alternative revenue programs (3)
10,654 — — — — 10,654 
Derivative instruments40,322 2,867 (4)341,365 — — 384,554 
Eliminations (2)
— — (3,456)— — (3,456)
Revenues out of scope50,976 2,867 337,909 — — 391,752 
Total operating revenues$274,435 10,183 365,788 11,584 13,852 $675,842 
(1)Includes building rent related to the Wall headquarters, which is eliminated in consolidation.
(2)Consists of transactions between subsidiaries that are eliminated in consolidation.
(3)Includes CIP revenue.
(4)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 December 31, 2022 and 2021, are as follows:
(Thousands)Natural Gas DistributionClean Energy VenturesEnergy ServicesStorage and TransportationHome Services
and Other		Total
2022
Residential$216,938 3,293 — — 14,180 $234,411 
Commercial and industrial43,795 5,613 27,848 25,714 73 103,043 
Firm transportation26,199 — — — — 26,199 
Interruptible and off-tariff898 — — — — 898 
Revenues out of scope69,579 3,886 285,551 — — 359,016 
Total operating revenues$357,409 12,792 313,399 25,714 14,253 $723,567 
2021
Residential$151,308 2,972 — — 13,775 $168,055 
Commercial and industrial47,184 4,344 27,879 11,584 77 91,068 
Firm transportation22,675 — — — — 22,675 
Interruptible and off-tariff2,292 — — — — 2,292 
Revenues out of scope50,976 2,867 337,909 — — 391,752 
Total operating revenues$274,435 10,183 365,788 11,584 13,852 $675,842 
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 three months ended December 31, 2022 and 2021, are as follows:
Customer Accounts ReceivableCustomers' Credit
(Thousands)BilledUnbilledBalances and Deposits
Balance as of September 30, 2022$222,297 $13,769 $33,246 
Increase148,668 95,378 7,724 
Balance as of December 31, 2022$370,965 $109,147 $40,970 
Balance as of September 30, 2021$212,838 $10,351 $32,586 
Increase53,977 62,598 6,080 
Balance as of December 31, 2021$266,815 $72,949 $38,666 
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 December 31, 2022 and September 30, 2022:
(Thousands)Natural Gas DistributionClean Energy Ventures Energy ServicesStorage and TransportationHome Services
and Other		Total
December 31, 2022
Customer accounts receivable
Billed$147,629 5,508 206,374 9,350 2,104 $370,965 
Unbilled106,580 2,567 — — — 109,147 
Customers' credit balances and deposits(40,967)— — (3)— (40,970)
Total$213,242 8,075 206,374 9,347 2,104 $439,142 
September 30, 2022
Customer accounts receivable
Billed$78,508 5,566 129,199 7,012 2,012 $222,297 
Unbilled10,814 2,955 — — — 13,769 
Customers' credit balances and deposits(33,246)— — — — (33,246)
Total$56,076 8,521 129,199 7,012 2,012 $202,820